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Instructure (INST) investor relations material
Instructure Q3 2024 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Revenue for Q3 2024 was $173.2 million, up 28% year-over-year, driven by expanded use and acquisitions.
Net loss for Q3 2024 was $24.7 million, compared to $5.5 million in Q3 2023, reflecting higher operating expenses and interest costs.
Adjusted EBITDA for Q3 2024 was $70.1 million, up from $58.2 million in Q3 2023.
Major acquisitions included Parchment (February 2024) and Scribbles (July 2024), expanding the credentialing and records management portfolio.
A merger agreement was signed with KKR affiliates to take the company private at $23.60 per share, pending customary closing conditions and expected to close in H2 2024.
Financial highlights
Q3 2024 revenue increased 28% year-over-year to $173.2 million; nine-month revenue rose 26% to $499.1 million.
Net loss for Q3 2024 was $24.7 million; nine-month net loss was $66.8 million, both higher than prior year periods.
Adjusted EBITDA reached $70.1 million for Q3 and $208.4 million for the nine months, both showing strong growth.
Operating cash flow for the nine months was $102.5 million; free cash flow was $96.3 million.
Gross margin for Q3 2024 was 66%, up from 65% in Q3 2023.
Outlook and guidance
The merger with KKR is expected to close in the second half of 2024, after which the company will become privately held.
Management expects continued growth in cloud-based education solutions, with a focus on expanding the customer base and cross-selling, and sees growth opportunities in non-traditional student segments.
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