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A Preview Of Instructure's Q4 Earnings

Priya Nigam

Instructure Inc (NYSE: INST) is scheduled to report its fourth quarter results on or around Feb. 11.

Instructure’s projected revenue growth rates for 2018 and 2019 are higher than the Ed Tech peer group and the vertical‐focused SaaS peer group. Instructure is expected to become cash positive in 2019 and achieve profitability in 2021.

The Analyst

Barrington Research’s Alexander Paris maintains an Outperform rating on Instructure with a $50 price target.

The Thesis

For Q4, Paris said Instructure could announce revenue of $55.7 million, representing 27.2-percent growth from the $43.8 million figure posted in 2017. The estimate is below consensus revenue expectation of $55.8 million.

An adjusted EBITDA loss of $1.5 million is expected, while consensus calls for a loss of $3.1 million, as compared to the year-ago figure of $6.4 million.

The non‐GAAP net loss per share estimate is at 15 cents, in-line with the consensus expectation, as compared to a loss per share of 27 cents in the same period a year earlier.

Related Links: Needham: Instructure Inc Price Closer To Reflecting Full Value of Fundamentals

Management’s guidance for the quarter is for revenue to be in the range of $55.2 million‐56.2 million, a non‐GAAP net loss of $5.8 million‐4.8 million and a non‐GAAP net loss per share of 16 cents‐14 cents.

For the full year, the revenue estimate is $209.0 million, representing 31.2 percent year-on-year growth, non‐GAAP net loss of $25.7 million and non‐GAAP net loss per share of 75 cents, Paris added.

Price Action

Shares of Instructure traded around $40.79 ;on Wednesday.

Latest Ratings for INST

Date Firm Action From To
Oct 2018 Citigroup Maintains Buy Buy
Oct 2018 Morgan Stanley Maintains Overweight Overweight
Oct 2018 Raymond James Maintains Strong Buy Strong Buy

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