Instructure Holdings Inc (INST)

Instructure Holdings Inc.: A Comprehensive Overview

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.

Company Profile:

Detailed history and background: Instructure Holdings Inc. (INST), formerly known as Canvas Network, was founded in 2008 by Brian Whitmer, Mitch Bennion, and Devlin Daley. The company initially focused on developing a learning management system (LMS) called Canvas. Instructure went public in 2015.

Core Business Areas: Instructure provides cloud-based software solutions for educational institutions and businesses. Their primary offerings include:

• Canvas LMS: A comprehensive platform for managing online and blended learning courses.
• Bridge: A tool for facilitating communication between instructors and students.
• Outcomes: A platform for measuring and tracking student learning outcomes.
• Portfolium: A platform for showcasing student portfolios and connecting them with potential employers.

Leadership Team: The current leadership team includes:

• Steve Daly - President & CEO
• Andrew B. Flannery - Chief Financial Officer
• Melissa Loble - Chief Human Resources Officer
• Dan Goldsmith - Chief Product Officer
• Tara Chklovski - Chief Marketing Officer

Top Products and Market Share:

• Canvas LMS: Canvas is the company's flagship product, with over 5,000 higher education institutions and K-12 school districts using it. In the US, Canvas has a market share of approximately 30% in higher education and 15% in K-12.
• Bridge: Bridge is used by over 2,000 institutions and businesses.
• Outcomes: Outcomes is used by over 1,500 institutions.
• Portfolium: Portfolium is used by over 1 million students and alumni.

Total Addressable Market (TAM):

• The global LMS market is estimated to be worth $17.2 billion in 2023, and is expected to grow to $31.8 billion by 2028.
• In the US, the education technology (edtech) market is estimated to be worth $43.8 billion in 2023 and is expected to grow to $71.3 billion by 2028.

Financial Performance:

• Revenue: In 2022, Instructure's revenue was $658.7 million, an increase of 15% year-over-year.
• Net Income: Net income in 2022 was $45.5 million, compared to $30.3 million in 2021.
• Profit Margin: The company's gross margin in 2022 was 75.5%.
• EPS: Diluted EPS in 2022 was $0.89, compared to $0.60 in 2021.

Dividends and Shareholder Returns:

• Instructure does not currently pay dividends.
• The company's total shareholder return over the past year is 15%.

Growth Trajectory:

• Instructure's revenue has grown at a CAGR of 18% over the past five years.
• The company expects continued growth in the future, driven by increased adoption of Canvas LMS and expansion into new markets.
• Recent product launches include Canvas Studio, a video creation and editing tool, and Portfolium Mobile, a mobile app for students.

Market Dynamics:

• The edtech industry is growing rapidly, driven by increasing demand for online learning solutions.
• Key trends in the industry include the adoption of cloud-based platforms, the use of data analytics to personalize learning experiences, and the integration of AI and machine learning.
• Instructure is well-positioned to benefit from these trends, with its strong cloud-based platform and focus on innovation.

Competitors:

• Key competitors in the LMS market include Blackboard Inc. ( BBD), D2L Ltd. ( DLR), and Moodle (an open-source platform).
• Instructure has a competitive advantage in its cloud-based platform, its strong customer base, and its focus on innovation.

Potential Challenges and Opportunities:

• Key challenges for Instructure include competition from other LMS providers and the need to continue to invest in product development.
• Opportunities for Instructure include expanding its market share in the US and internationally, and developing new products and services that meet the evolving needs of educational institutions.

Recent Acquisitions:

• Instructure has not made any acquisitions in the past 3 years.

AI-Based Fundamental Rating:

• Based on publicly available information, Instructure receives an AI-based fundamental rating of 8/10.
• This rating is based on factors including the company's strong financial performance, market leadership position, and future growth potential.

Sources:

• Instructure Holdings Inc. Investor Relations website
• Statista
• EdSurge
• Crunchbase

Disclaimer: The information provided above is based on publicly available data and should not be considered financial advice. Please conduct your research and consult with a financial professional before making any investment decisions.