Instructure Holdings Inc (INST) Reports 10.2% YoY Revenue Growth in Q3 2023
Instructure Holdings Inc (NYSE:INST) reports Q3 2023 GAAP revenue of $134.9 million, a 10.2% increase YoY.
The company's operating income stood at $4.6 million, compared to a loss of $2.4 million in Q3 2022.
GAAP net loss improved to $5.5 million, compared to a net loss of $10.1 million in the same period last year.
Cash flow from operations rose to $182.6 million, up from the previous year's figure.
On October 30, 2023, Instructure Holdings Inc (NYSE:INST) released its financial results for the third quarter ended September 30, 2023. The company reported a GAAP revenue of $134.9 million, marking a 10.2% increase year over year. The company's operating income was positive, standing at $4.6 million, or 3.4% of revenue, compared to a loss of $2.4 million in the third quarter of 2022.
Financial Highlights
INST's non-GAAP operating income was $57.0 million, or 42.3% of revenue, up 23.5% compared with the third quarter of 2022. The GAAP net loss of $5.5 million, or negative 4.1% of revenue, showed an improvement of $4.6 million compared with a net loss of $10.1 million in the third quarter of 2022.
The company's Adjusted EBITDA for the quarter was $58.2 million, or 43.2% of revenue, an increase of $10.6 million, or 22.3% compared with the third quarter of 2022. Cash flow from operations stood at $182.6 million and Adjusted Unlevered Free Cash Flow was $200.1 million, up $2.8 million and $12.4 million, respectively compared with the third quarter of 2022.
Business and Operating Highlights
Instructure announced the departure of CFO Dale Bowen, who will be succeeded by Peter Walker, currently CFO of Sterling Check Corp., effective November 13, 2023. The company also reported significant customer acquisitions, including the Montana University System and the Pasadena Independent School District.
Financial Outlook
For the fourth quarter of fiscal 2023, the company expects revenue to be in the range of $133.3 million to $135.3 million. Non-GAAP operating income is expected to be in the range of $51.5 million to $53.5 million, and Adjusted EBITDA is expected to be in the range of $53.0 million to $55.0 million.
For the full year 2023, the company expects revenue to be in the range of $528.0 million to $530.0 million. Non-GAAP operating income is expected to be in the range of $206.5 million to $208.5 million, and Adjusted EBITDA is expected to be in the range of $211.0 million to $213.0 million.
Balance Sheet and Income Statement Summary
As of September 30, 2023, Instructure Holdings Inc had total assets of $2.195 billion, up from $2.153 billion as of December 31, 2022. The company's total liabilities stood at $912.9 million, while total stockholders' equity was $1.282 billion.
For the three months ended September 30, 2023, the company reported total revenue of $134.9 million, with a gross profit of $87.5 million. Total operating expenses were $82.9 million, resulting in an income from operations of $4.6 million.
Explore the complete 8-K earnings release (here) from Instructure Holdings Inc for further details.
This article first appeared on GuruFocus.
