# EDGAR Filing Document

**Accession Number:** 0001841804
**File Stem:** 0000950170-23-002610
**Filing Date:** 2023-2
**Character Count:** 83353
**Document Hash:** 16cddd2905079e978cf1188afa70a407
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000950170-23-002610.hdr.sgml**: 20230213

**ACCESSION NUMBER**: 0000950170-23-002610

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20230210

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230213

**DATE AS OF CHANGE**: 20230213

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** INSTRUCTURE HOLDINGS, INC.
- **CENTRAL INDEX KEY:** 0001841804
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-PREPACKAGED SOFTWARE [7372]
- **IRS NUMBER:** 844325548
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-40647
- **FILM NUMBER:** 23618461

**BUSINESS ADDRESS:**
- **STREET 1:** 6330 SOUTH 3000 EAST, SUITE 700
- **CITY:** SALT LAKE CITY
- **STATE:** UT
- **ZIP:** 84121
- **BUSINESS PHONE:** (800) 203-6755

**MAIL ADDRESS:**
- **STREET 1:** 6330 SOUTH 3000 EAST, SUITE 700
- **CITY:** SALT LAKE CITY
- **STATE:** UT
- **ZIP:** 84121

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** INSTRUCTURE INTERMEDIATE HOLDINGS I, INC.
- **DATE OF NAME CHANGE:** 20210122

?xml version="1.0" encoding="ASCII"? 8-K

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549**

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**FORM** 8-K

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**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported):** February 10, 2023<br>

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INSTRUCTURE HOLDINGS, INC.

**(Exact name of Registrant as Specified in Its Charter)**

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| | | |
|:---|:---|:---|
| Delaware | 001-40647 | 84-4325548 |
| **(State or Other Jurisdiction<br>of Incorporation)** | **(Commission File Number)** | **(IRS Employer<br>Identification No.)** |
| 6330 SOUTH 3000 EAST<br>SUITE 700 |  |  |
| SALT LAKE CITY**,** Utah |  | 84121 |
| **(Address of Principal Executive Offices)** |  | **(Zip Code)** |

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**Registrant's Telephone Number, Including Area Code:** 800 203-6755<br>

Not Applicable

**(Former Name or Former Address, if Changed Since Last Report)**

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

**Securities registered pursuant to Section 12(b) of the Act:**

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| | | |
|:---|:---|:---|
| **<br>Title of each class** | **Trading<br>Symbol(s)** | **<br>Name of each exchange on which registered** |
| Common Stock, $0.01 par value | INST | The New York Stock Exchange |

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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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**Item 2.02 Results of Operations and Financial Condition.**

On February 13, 2023, Instructure Holdings, Inc. (the "Company") issued a press release announcing its financial results for the fourth quarter and year ended December 31, 2022. A copy of this press release is attached hereto as Exhibit 99.1.

In accordance with General Instruction B.2 of Form 8-K, the information in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof, except as expressly set forth by specific reference in such filing to this Current Report on Form 8-K.

**Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.**

On January 6, 2023, Frank Maylett ("Mr. Maylett"), the Company's Chief Revenue Officer, informed the Company that he intended to step down from the Company. Mr. Maylett's last day of employment with the Company will be February 15, 2023. In connection with Mr. Maylett's resignation, Mr. Maylett will receive accrued wages and benefits under his employment agreement. In addition, subject to his execution of a general release of claims (the "Release"), Mr. Maylett will receive (i) base salary continuation during the six-month period following the termination date, and (ii) COBRA continuation coverage for a period ending on the earlier of (x) the six month anniversary of the termination date or (y) the date Mr. Maylett becomes eligible to be covered by the health care plans of another employer, subject to Mr. Maylett's timely election and continued eligibility. Pursuant to the Release, Mr. Maylett is subject to a perpetual confidentiality covenant, a one year non-solicitation of employees covenant, and a perpetual non-disparagement covenant.

The Company and Mr. Maylett entered into a consulting agreement dated February 10, 2023 (the "Consulting Agreement"), pursuant to which Mr. Maylett will provide consulting services to the Company during the period commencing on his last day of employment and ending on July 15, 2023 (the "Consulting Term"). In consideration of Mr. Maylett's services during the Consulting Term, and notwithstanding any term in the applicable award agreement or the Company's 2021 Omnibus Incentive Plan to the contrary, the 31,996 restricted stock units held by Mr. Maylett as of February 1, 2023 will vest in accordance with their respective vesting schedules on March 1, 2023 and June 1, 2023 (the "Services Consideration"). The Services Consideration will be the only consideration paid for the services rendered during the Consulting Term. A copy of the Consulting Agreement is attached hereto as Exhibit 99.2.

**Item 9.01 Financial Statements and Exhibits.**

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| | |
|:---|:---|
| **Exhibit<br>No.**  | **<br>Description** |
| 99.1 | [<u>Press Release dated February 13, 2023</u>](inst-ex99_1.htm) |
| 99.2 | [<u>Consulting Agreement dated February 10, 2023</u>](inst-ex1_992.htm) |
| 104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded within the inline XBRL document) |

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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| | | | |
|:---|:---|:---|:---|
|  |  |  | **Instructure Holdings, Inc.** |
| Date: | February 13, 2023 | By:  | /s/ Matthew A. Kaminer |
|  |  |  | Matthew A. Kaminer<br>Chief Legal Officer |

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## Ex-1

**Exhibit 99.2**

**<u>CONSULTING AGREEMENT</u>** 

This CONSULTING AGREEMENT (this "<u>Agreement</u>") is made and entered into as of February 10, 2023, by and among Frank Maylett ("<u>Service Provider</u>") and Instructure, Inc. (the "<u>Company</u>"). Service Provider and the Company are referred to herein individually as a "<u>Party</u>" and collectively as the "<u>Parties</u>."

WHEREAS, Company desires to secure the services of Service Provider in the capacity of a consultant to Company as set forth herein, and Service Provider agrees to provide such services to Company as a consultant

.

NOW, THEREFORE, the Parties agree as follows:

1.**<u>Consulting Agreement</u>**. In further consideration of Service Provider's agreements set forth herein, Company shall engage Service Provider as a consultant on the following terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Term.</u> The consulting relationship will commence on February 15, 2023 and will continue for a period of 5 months following thereafter (the "<u>Consulting Term</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Services</u>. Company agrees to engage Service Provider, and Service Provider accepts engagement, as a consultant for the Company to provide the services as requested, from time to time, by the Company's President and Chief Operating Officer (the "<u>Services</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Services Consideration</u>. Notwithstanding anything set forth in the Release Agreement between the Company and Service Provider, date [DATE], in exchange for the provision of the Services during the Consulting Term, the equity grants of restricted stock units of Instructure Holdings, Inc. held by Service Provider as of February 1, 2023 shall vest in accordance with their vesting schedules on March 1, 2023 and June 1, 2023 (the "<u>Services Consideration</u>"). The Services Consideration shall be the only consideration paid for the Services rendered pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Independent Contractor Relationship</u>. Service Provider will provide the Services as an independent contractor (and nothing in this Agreement shall be construed to create any association, partnership, joint venture, employee, or agency relationship between Service Provider and the Company for any purpose). Service Provider shall control the means by which Service Provider performs the Services, including but not limited to the time and place Service Provider performs the Services. Except as explicitly otherwise provided in this Agreement, Service Provider shall be entitled to be employed or retained by other persons or entities (provided that such employment or retention is not in conflict with the provision of the Services or any existing restrictive covenant agreement between Service Provider and the Company Parties). Service Provider shall not be eligible to participate in any vacation, group medical or life insurance, disability, profit sharing or retirement benefits, or any other fringe benefits or benefit plans,

&nbsp;&nbsp;&nbsp;&nbsp;DOCPROPERTY "CUS_DocIDChunk0"

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including but not limited to bonus, offered by the Company to their employees, other than the equity plan pursuant to which the Services Fee shall vest. Service Provider will have no responsibilities or authority as a consultant to the Company other than as provided above. Service Provider will have no authority to bind the Company to any contractual obligations, whether written, oral or implied, except with the written authorization of the Company. Service Provider agrees not to represent or purport to represent the Company Parties in any manner whatsoever to any third party unless authorized by Company, in writing, to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)<u>Taxes</u>. The Company will report the Fees on an IRS Form 1099-MISC, and Service Provider shall be solely responsible for all federal, state, and local taxes arising therefrom, and the Company will not be responsible for withholding or paying any income, payroll, Social Security, or other federal, state, or local taxes, making any insurance contributions, including for unemployment or disability, or obtaining workers' compensation insurance on Service Provider's behalf. Service Provider shall be responsible for, and shall indemnify the Company against, all such taxes or contributions, including penalties and interest, associated with the Fees.

2.**<u>Service Provider's Continuing Obligations</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Service Provider will not (except as expressly authorized by the Company) use, disclose or divulge, furnish or make accessible to anyone, directly or indirectly, any Protected Information at any time. "<u>Protected Information</u>" means any and all non-public, trade secret, confidential and/or proprietary information regarding the Company Parties; <u>provided</u>, <u>however</u>, that Protected Information shall not include: (i) information that becomes generally known to the public without violation of this Agreement or any other confidentiality obligation, or (ii) information that is disclosed to Service Provider by another party who is under no obligation of secrecy and has a bona fide right to disclose the information. Service Provider represents and warrants that Service Provider has not previously (except in furtherance of Service Provider's work for the Company Parties) used, disclosed or divulged, furnished or made accessible to anyone, directly or indirectly, any Protected Information. Service Provider further agrees that this Agreement is confidential and agrees not to disclose any information regarding the terms of this Agreement, except to Service Provider's immediate family and any tax advisors or legal counsel Service Provider has consulted regarding the meaning or effect hereof or as required by law, and Service Provider will instruct each of the foregoing not to disclose the same to anyone.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Service Provider understands and acknowledges that the restrictive covenants in this <u>Section 2</u> are reasonable and necessary to protect the Company Parties' legitimate business interests in the Protected Information and their goodwill.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The obligations in this <u>Section 2</u> are in addition to any obligations Service Provider has under any written nondisclosure, confidentiality, intellectual property, or restrictive covenant agreement entered into by Service Provider with any of the Company Parties.

3.**<u>Consultation; Voluntary Agreement</u>**. Service Provider acknowledges that Service Provider is advised to consult with an attorney prior to executing this Agreement. Service Provider has carefully read and fully understands all of the provisions of this Agreement. Service Provider is

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entering into this Agreement, knowingly, freely and voluntarily in exchange for good and valuable consideration to which Service Provider would not be entitled.

4.**<u>Savings Clause</u>**. If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction. Upon such determination that any term or other provision of this Agreement is invalid, illegal or unenforceable, this Agreement shall be enforceable as closely as possible to its original intent.

5.**<u>Injunctive Relief</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Service Provider agrees that the Company would suffer irreparable harm and continuing damage for which money damages would be insufficient if Service Provider was to breach or threaten to breach <u>Section 2(a)</u>of this Agreement. Service Provider agrees that the Company would by reason of such breach, or threatened breach, be entitled to an injunction, a decree for specific performance, other equitable relief in a court of appropriate jurisdiction, and all other relief as may be proper (including money damages if appropriate), to the extent permitted by law, without the need to post any bond. This <u>Section 5(a)</u> shall not, however, diminish the right of the Company to claim and recover damages and other appropriate relief in addition to injunctive relief.

6.**<u>Governing Law; Dispute Resolution; Jury Trial Wavier</u>**. This Agreement will be governed, construed and interpreted under the laws of State of Utah, without regard to the application of any choice-of-law rules that would result in the application of another state's laws. The Parties hereby consent to exclusive jurisdiction and venue for any disputes under this Agreement in the state and local courts located in Utah, as well as any courts having appellate jurisdiction over such courts. **THE PARTIES IRREVOCABLY WAIVE ANY AND ALL RIGHTS TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR OTHERWISE RELATED TO SERVICE PROVIDER'S EMPLOYMENT OR ENGAGEMENT WITH THE COMPANY.** 

7.**<u>Each Party the Drafter</u>**. This Agreement, and the provisions contained in it, shall not be construed or interpreted for, or against, any party to this Agreement because that party drafted or caused that party's legal representatives to draft any of its provisions.

8.**<u>Assignment; Third-Party Beneficiaries</u>**. This Agreement is personal to Service Provider and may not be assigned by Service Provider. This Agreement is binding on, and will inure to the benefit of the Company Parties. Each of the Company Parties is expressly intended to be third-party beneficiaries of this Agreement, and the terms of this Agreement may be enforced by each of them.

9.**<u>Entire Agreement; No Oral Modifications; Counterparts</u>**. This Agreement sets forth the Parties' entire agreement with respect to the subject matter and shall supersede all prior and

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contemporaneous communications, agreements and understandings, written or oral, with respect hereto and thereto (for the avoidance of doubt, any nondisclosure, confidentiality, intellectual property, or restrictive covenant agreement entered into by Service Provider remain in effect in accordance with their terms). This Agreement may not be modified or amended unless mutually agreed to in writing by the parties. Any waiver of a breach of this Agreement shall be in writing and shall not be deemed to be a waiver of any successive breach. If any provision of this Agreement is determined to be invalid or unenforceable, in whole or in part, this determination will not affect any other provision of this Agreement and the provision in question will be modified by the court so as to be rendered enforceable to the fullest extent permitted by law, consistent with the intent of the Parties. This Agreement may be executed in two or more counterparts, each of which will be an original and all of which together will constitute one and the same instrument. A faxed, .pdf-ed or electronic signature shall operate the same as an original signature.

[SIGNATURE PAGE FOLLOWS]

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**IN WITNESS WHEREOF,** the Parties have executed this Agreement as of date first written above.

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| | |
|:---|:---|
| &nbsp;&nbsp;**COMPANY:** | &nbsp;&nbsp;**SERVICE PROVIDER:**  |
| &nbsp;&nbsp;By: Matt Kaminer | &nbsp;&nbsp;Frank Maylett |
| &nbsp;&nbsp;Its: Chief Legal Officer  |  |

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## Ex-99

**Exhibit 99.1**

![img70432607_0.jpg](img70432607_0.jpg)

**Instructure Announces Fourth Quarter and Fiscal Year 2022 Financial Results**

Fourth Quarter GAAP Revenue of $124.7 Million Grows 12.8% year over year

Fiscal Year 2022 GAAP Revenue of $475.2 Million Grows 17.2% year over year

Fiscal Year 2022 Net Loss of $34.2 Million and Adjusted EBITDA\* of $179.6 Million

**Salt Lake City, UT (February 13, 2023)**—Instructure Holdings, Inc. (Instructure) (NYSE: INST), the makers of the Canvas Learning Management System, today announced financial results for the fourth quarter and fiscal year ended December 31, 2022.<br>

"Our strong fourth quarter revenue reflects the increasingly central role we play in supporting educators, students, parents, and leaders as they navigate unprecedented challenges," said Steve Daly, Instructure CEO. " As we move into 2023, we are committed to further expanding our impact on the educational landscape, solving more of the unique challenges educators face while continuing to deliver balanced growth and profitability."

**Fourth Quarter Financial Highlights:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●GAAP Revenue of $124.7 million, an increase of 12.8% year over year

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●Allocated Combined Receipts\*, or ACR, of $124.7 million, an increase of 11.9% year over year

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●Operating loss of $3.8 million, or negative 3.0% of revenue, and Non-GAAP operating income\* of $46.5 million, or 37.3% of ACR\*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●GAAP net loss of $5.7 million, or negative 4.6% of revenue, and Adjusted EBITDA\* of $48.6 million, or 39.0% of ACR\*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●Cash flow from operations of $17.0 million and Adjusted Unlevered Free Cash Flow\* of $29.3 million

**Full Year 2022 Financial Highlights:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●GAAP Revenue of $475.2 million, an increase of 17.2% year over year

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●Allocated Combined Receipts\*, or ACR, of $476.1 million, an increase of 14.8% year over year

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●Operating loss of $16.5 million, or negative 3.5% of revenue, and Non-GAAP operating income\* of $173.9 million, or 36.5% of ACR\*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●GAAP net loss of $34.2 million, or negative 7.2% of revenue, and Adjusted EBITDA\* of $179.6 million, or 37.7% of ACR\*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●Cash flow from operations of $140.3 million and Adjusted Unlevered Free Cash Flow\* of $173.5 million

\*See "Non-GAAP Financial Measures" for information regarding the Company's use of non-GAAP financial measures as well as reconciliations to the most closely comparable GAAP measures in this press release.

**Business and Operating Highlights:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●In December, we acquired LearnPlatform, the leading provider of technology that enables educators and their institutions to research, select and evaluate digital learning solutions. <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●The University of Louisiana System selected Canvas and Impact due to improved functionality, consistency of user experience, alignment with the other state university systems, and 24/7 technical support for end users.<br>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●The Charles County Public School District selected Canvas due to the power of its instructional materials, integrations and other 3rd party tools, superior scale and reliability, and best-in-class service.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●The University of Santo Tomas in the Philippines selected Canvas LMS and Canvas Studio due to ease of use, role-specific mobile experiences, broad support for outcomes, and the breadth of integratable third party tools.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●The City and Guilds of London Institute chose Instructure as its institutional learning technology partner for the future growth of their organization with an initial plan to deploy Canvas and plans to evaluate Credentials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●Chris Ball was named Instructure's new President and Chief Operating Officer and will oversee the go-to-market strategy and customer lifecycle, including marketing, revenue operations, sales and customer experience.

**Business Outlook**

Based on information as of today, February 13, 2023, the Company is issuing the following financial guidance.

**First Quarter Fiscal 2023:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●Revenue is expected to be in the range of $126.5 million to $127.5 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●Non-GAAP operating income\* is expected to be in the range of $45.9 million to $46.9 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●Adjusted EBITDA\* is expected to be in the range of $47.0 million to $48.0 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●Non-GAAP net income\* is expected to be in the range of $25.7 million to $26.7 million

**Full Year 2023:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●Revenue is expected to be in the range of $519.4 million to $523.4 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●Non-GAAP operating income\* is expected to be in the range of $193.4 million to $197.4 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●Adjusted EBITDA\* is expected to be in the range of $198.0 million to $202.0 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●Non-GAAP net income\* is expected to be in the range of $109.2 million to $113.2 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●Adjusted Unlevered Free Cash Flow\* is expected to be in the range of $200.0 million to $204.0 million

\*Non-GAAP operating income, Adjusted EBITDA, non-GAAP net income and Adjusted Unlevered Free Cash Flow are non-GAAP measures. Instructure is unable to provide guidance, or a reconciliation, for operating loss and net loss, the most closely comparable GAAP measures with respect to non-GAAP operating income, Adjusted EBITDA and non-GAAP net income, and net cash provided by operating activities, the most closely comparable measure with respect to Adjusted Unlevered Free Cash Flow, because Instructure cannot provide a meaningful or accurate calculation or estimation of certain reconciling items without unreasonable effort. This is due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation, including stock-based compensation and amortization of acquisition-related intangibles. Thus, Instructure is unable to present a quantitative reconciliation of non-GAAP guidance to GAAP guidance because such information is not available.

Effective January 1, 2022, Instructure adopted ASU No. 2021-08, Business Combinations (Topic 805), which requires that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Revenue from Contracts with Customers (Topic 606). As a result, Instructure will no longer present guidance for ACR because GAAP revenue and ACR will now converge.

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**Conference Call Information**

Instructure's management team will hold a conference call to discuss our fourth quarter and fiscal year ended December 31, 2022 results today, February 13, 2023 at 5:00 p.m. ET. The conference call can be accessed by dialing (888) 330-2384 from the United States and Canada or (240) 789-2701 internationally with conference ID 1348899. A live webcast and replay of the conference call can be accessed from the investor relations page of Instructure's website at ir.instructure.com. An archived replay of the webcast will be available following the conclusion of the call.

**About Instructure**

Instructure (NYSE: INST) is an education technology company dedicated to elevating student success, amplifying the power of teaching, and inspiring everyone to learn together. Today the Instructure Learning Platform supports tens of millions of educators and learners around the world. Learn more at www.instructure.com.

**Non-GAAP Financial Measures**

Instructure has provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). In addition to Instructure's results determined in accordance with GAAP, Instructure believes the following non-GAAP measures are useful in evaluating its operating performance and liquidity. Instructure believes that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance and assists in comparisons with other companies, some of which use similar non-GAAP financial information to supplement their GAAP results. The non-GAAP financial information is presented for supplemental informational purposes only, and should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly-titled non-GAAP measures used by other companies.

A reconciliation of Instructure's historical non-GAAP financial measures to the most directly comparable GAAP measures has been provided in the financial statement tables included in this press release, and investors are encouraged to review the reconciliation.

ACR. We define ACR as the combined receipts of our Company and companies that we have acquired allocated to the period of service delivery. We calculate ACR as the sum of (i) revenue and (ii) the impact of fair value adjustments to acquired unearned revenue related to Thoma Bravo's acquisition of Instructure (the "Take-Private Transaction") and the Certica Holdings, LLC ("Certica"), Eesysoft Software International B.V. (which was rebranded to "Impact by Instructure" or "Impact" subsequent to acquisition), and Kimono LLC (which was rebranded to "Elevate Data Sync" subsequent to acquisition) acquisitions where we do not believe such adjustments are reflective of our ongoing operations. Management uses this measure to evaluate the organic growth of the business period over the period, as if the Company had operated as a single entity and excluding the impact of acquisitions or adjustments due to purchase accounting. <br>

Non-GAAP Operating Income. We define non-GAAP operating income as loss from operations excluding the impact of stock-based compensation, transaction costs, sponsor costs, impairment charges, other non-recurring costs, amortization of acquisition-related intangibles, and the impact of fair value adjustments to acquired unearned revenue relating to the Take-Private Transaction and the Certica, Impact, and Elevate Data Sync acquisitions that we do not believe are reflective of our ongoing operations. We believe non-GAAP operating income is useful in evaluating our operating performance compared to that of other companies in our industry, as this metric generally eliminates the effects of certain items that may vary for different companies for reasons unrelated to overall operating performance. Although we exclude the amortization of acquisition-related intangibles from the non-GAAP measure, management believes it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation.<br>

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Non-GAAP Net Income. We define non-GAAP net income as net loss excluding the impact of stock-based compensation, amortization of acquisition-related intangibles, the impact of fair value adjustments to acquired unearned revenue relating to the Take-Private Transaction and the Certica, Impact, and Elevate Data Sync acquisitions, transaction costs, sponsor costs, impairment charges, other non-recurring costs, and effects of foreign currency transaction (gains) and losses that we do not believe are reflective of our ongoing operations. The tax effects of the adjustments are calculated using the statutory tax rate, taking into consideration the nature of the item and the relevant taxing jurisdiction. We believe Non-GAAP net income is useful in evaluating our operating performance compared to that of other companies in our industry, as this metric generally eliminates the effects of certain items that may vary for different companies for reasons unrelated to overall operating performance. Although we exclude the amortization of acquisition-related intangibles from the non-GAAP measure, management believes it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation. Basic non-GAAP net income per common share attributable to common stockholders is computed by dividing non-GAAP net income attributable to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted non-GAAP net income per common share attributable to common stockholders is computed by giving effect to all potentially dilutive common stock equivalents outstanding for the period.

Adjusted EBITDA; Adjusted EBITDA Margin. EBITDA is defined as earnings before debt-related costs, including interest and loss on debt extinguishment, benefit for taxes, depreciation, and amortization. We further adjust EBITDA to exclude certain items of a significant or unusual nature, including stock-based compensation, transaction costs, sponsor costs, impairment charges , other non-recurring costs, effects of foreign currency transaction (gains) and losses, amortization of acquisition-related intangibles, and the impact of fair value adjustments to acquired unearned revenue relating to the Take-Private Transaction and the Certica, Impact, and Elevate Data Sync acquisitions. Although we exclude the amortization of acquisition-related intangibles from this non-GAAP measure, management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by ACR.

Free Cash Flow, Unlevered Free Cash Flow and Adjusted Unlevered Free Cash Flow. We define free cash flow as net cash provided by (used in) operating activities less purchases of property and equipment and intangible assets, net of proceeds from disposals of property and equipment. We define unlevered free cash flow as free cash flow adjusted for cash paid for interest on outstanding debt and cash settled stock-based compensation. We define adjusted unlevered free cash flow as unlevered free cash flow adjusted for transaction costs, sponsor costs, impaired leases, and other non-recurring costs paid in cash. We believe free cash flow, unlevered free cash flow and adjusted unlevered free cash flow facilitate period-to-period comparisons of liquidity. We consider free cash flow, unlevered free cash flow and adjusted unlevered free cash flow to be important measures because they measure the amount of cash we generate and reflect changes in working capital.

Non-GAAP Cost of Revenue and Non-GAAP Operating Expenses. We define non-GAAP cost of revenue and non-GAAP operating expenses as GAAP cost of revenue and GAAP operating expenses, respectively, excluding the impact of stock-based compensation, transaction costs, sponsor costs, impairment charges, other non-recurring costs, and amortization of acquisition-related intangibles that we do not believe are reflective of our ongoing operations. Although we exclude the amortization of acquisition-related intangibles from the non-GAAP measures, management believes it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation.

Non-GAAP Gross Profit; Non-GAAP Gross Profit Margin. We define non-GAAP gross profit as gross profit excluding the impact of stock-based compensation, transaction costs, impairment of leased properties, other non-recurring costs, amortization of acquisition-related intangibles, and fair value adjustments to deferred revenue in connection with purchase accounting that we do not believe are reflective of our ongoing operations. Although we exclude the amortization of acquisition-related intangibles from the non-GAAP measure, management believes it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation. Non-GAAP Gross Profit Margin is defined as Non-GAAP gross profit divided by ACR.

------

**Forward-Looking Statements**

This press release contains, and statements made during the above referenced conference call will contain, "forward-looking" statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's financial guidance for the first quarter of 2023 and for the full year ending December 31, 2023, the Company's growth, customer demand and application adoption, the Company's research and development efforts and future application releases, and the Company's expectations regarding future revenue, expenses, cash flows and net income or loss.

These statements are not guarantees of future performance, but are based on management's expectations as of the date of this press release and assumptions that are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements. Important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements include the following: risks associated with the continued economic uncertainty, including record-high inflation, supply chain challenges, labor shortages, high interest rates, foreign currency exchange volatility, concerns of economic slowdown or recession and reduced spending by customers; failure to continue our recent growth rates; risks associated with future stimulus packages approved by the U.S. federal government; our ability to acquire new customers and successfully retain existing customers; the effects of increased usage of, or interruptions or performance problems associated with, our learning platform; the impact on our business and prospects from pandemics and the ongoing effects of the COVID-19 pandemic; our history of losses and expectation that we will not be profitable for the foreseeable future; the impact of adverse general and industry-specific economic and market conditions; failure to manage our growth effectively; and changes in the spending policies or budget priorities for government funding of Higher Education and K-12 institutions.

These and other important risk factors are described more fully in the Company's most recent Annual Report on Form 10-K and subsequent Quarterly Report on Form 10-Q and other documents filed with the Securities and Exchange Commission and could cause actual results to vary from expectations. All information provided in this press release and in the conference call is as of the date hereof and Instructure undertakes no duty to update this information except as required by law.

------

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| | | |
|:---|:---|:---|
| **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** |
| **CONSOLIDATED BALANCE SHEETS** | **CONSOLIDATED BALANCE SHEETS** | **CONSOLIDATED BALANCE SHEETS** |
| **(in thousands, except per share data)** | **(in thousands, except per share data)** | **(in thousands, except per share data)** |
|  | **December 31, <br>2022** | **December 31, <br>2021** |
| **Assets** | **(unaudited)** |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $185954 | $164928 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable—net | 71428 | 51607 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | 11120 | 15475 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred commissions | 13390 | 11418 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current assets | 3144 | 3384 |
| Total current assets | 285036 | 246812 |
| Property and equipment, net | 12380 | 10792 |
| Right-of-use assets | 13575 | 18175 |
| Goodwill | 1266402 | 1194221 |
| Intangible assets, net | 542679 | 629746 |
| Noncurrent prepaid expenses | 871 | 1553 |
| Deferred commissions, net of current portion | 18781 | 20105 |
| Deferred tax assets | 8143 | 6477 |
| Other assets | 5622 | 5901 |
| **Total assets** | $2153489 | $2133782 |
| **Liabilities and stockholders' equity** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $18792 | $18324 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities | 28483 | 28408 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities | 7205 | 6666 |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term debt, current | 4013 | 2763 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 275564 | 240936 |
| Total current liabilities | 334057 | 297097 |
| Long-term debt, net of current portion | 486471 | 490500 |
| Deferred revenue, net of current portion | 13816 | 14740 |
| Lease liabilities, net of current portion | 16610 | 23678 |
| Deferred tax liabilities | 24702 | 29851 |
| Other long-term liabilities | 1706 | 3531 |
| **Total liabilities** | 877362 | 859397 |
| Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock | 1429 | 1407 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 1575600 | 1539638 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit | (300902) | (266660) |
| Total stockholders' equity | 1276127 | 1274385 |
| **Total liabilities and stockholders' equity** | $2153489 | $2133782 |

---

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** |
| **CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS** | **CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS** | **CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS** | **CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS** | **CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS** |
| **(in thousands, except per share data)** | **(in thousands, except per share data)** | **(in thousands, except per share data)** | **(in thousands, except per share data)** | **(in thousands, except per share data)** |
|  | **Three months <br>ended December 31,** | **Three months <br>ended December 31,** | **Year ended <br>December 31,** | **Year ended <br>December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
|  | **(unaudited)** | **(unaudited)** | **(unaudited)** |  |
| Revenue: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Subscription and support | $114537 | $101007 | $430661 | $367781 |
| &nbsp;&nbsp;&nbsp;&nbsp;Professional services and other | 10189 | 9586 | 44533 | 37580 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 124726 | 110593 | 475194 | 405361 |
| Cost of revenue: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Subscription and support | 38127 | 36348 | 146546 | 148923 |
| &nbsp;&nbsp;&nbsp;&nbsp;Professional services and other | 6685 | 5442 | 25748 | 20942 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cost of revenue | 44812 | 41790 | 172294 | 169865 |
| Gross profit | 79914 | 68803 | 302900 | 235496 |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | 46801 | 41686 | 181744 | 162544 |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development | 20723 | 16580 | 77189 | 63771 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 16170 | 15968 | 60447 | 54911 |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment on disposal group |  |  |  | 1218 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 83694 | 74234 | 319380 | 282444 |
| Loss from operations | (3780) | (5431) | (16480) | (46948) |
| Other income (expense): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | 1313 | 16 | 1679 | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (8258) | (6182) | (24595) | (50360) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other expense | 3989 | (330) | (2978) | (2695) |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on extinguishment of debt |  | (22424) |  | (22424) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense), net | (2956) | (28920) | (25894) | (75450) |
| Loss before income taxes | (6736) | (34351) | (42374) | (122398) |
| Income tax benefit | 1013 | 13697 | 8132 | 33719 |
| Net loss and comprehensive loss | $(5723) | $(20654) | $(34242) | $(88679) |
| Net loss per common share, basic and diluted | $(0.04) | $(0.15) | $(0.24) | $(0.67) |
| Weighted-average common shares used in computing basic and diluted net loss per common share | 142643 | 140531 | 141815 | 132387 |

---

------

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| | | | | |
|:---|:---|:---|:---|:---|
| **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** |
| **CONSOLIDATED STATEMENTS OF CASH FLOWS** | **CONSOLIDATED STATEMENTS OF CASH FLOWS** | **CONSOLIDATED STATEMENTS OF CASH FLOWS** | **CONSOLIDATED STATEMENTS OF CASH FLOWS** | **CONSOLIDATED STATEMENTS OF CASH FLOWS** |
| **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
|  | **Three months <br>ended December 31,** | **Three months <br>ended December 31,** | **Year ended <br>December 31,** | **Year ended <br>December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
|  | **(unaudited)** | **(unaudited)** | **(unaudited)** |  |
| **Operating Activities:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(5723) | $(20654) | $(34242) | $(88679) |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation of property and equipment | 1346 | 985 | 4491 | 3713 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of intangible assets | 34522 | 33684 | 136717 | 134003 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred financing costs | 297 | 477 | 1178 | 2435 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment on disposal group |  |  |  | 1218 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on extinguishment of debt |  | 22424 |  | 22424 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 8915 | 6540 | 33585 | 18072 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | (158) | (16231) | (10222) | (36485) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | (3042) | 120 | 3669 | 1685 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in assets and liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 1903 | 3386 | (18454) | (4314) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | 16881 | 2014 | 5940 | 2094 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred commissions | 685 | (2762) | (648) | (8358) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Right-of-use assets | 1250 | 1177 | 4888 | 8729 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | 168 | (596) | (2227) | 8038 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | (38383) | (31927) | 24238 | 48543 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities | (1474) | (1617) | (6817) | (6363) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | (184) | (693) | (1825) | (1612) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) operating activities | 17003 | (3673) | 140271 | 105143 |
| **Investing Activities:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of property and equipment | (1342) | (1459) | (6321) | (4259) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of property and equipment | 2 | 13 | 43 | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of Bridge |  |  |  | 46018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Business acquisitions, net of cash acquired | (89529) | (9698) | (109013) | (26584) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) investing activities | (90869) | (11144) | (115291) | 15228 |
| **Financing Activities:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;IPO proceeds, net of offering costs paid of $5,719 |  | (350) |  | 259254 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of common stock from employee equity plans |  |  | 7327 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shares repurchased for tax withholdings on vesting of restricted stock units | (1939) | (250) | (5272) | (1568) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of term debt, net of discount |  | 493090 |  | 493090 |
| &nbsp;&nbsp;&nbsp;&nbsp;Distributions to stockholders |  |  |  | (930) |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayments of long-term debt | (1250) | (531305) | (3750) | (839187) |
| &nbsp;&nbsp;&nbsp;&nbsp;Term Loan prepayment premium |  | (8066) |  | (11893) |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments of financing costs | (19) | (937) | (19) | (937) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities | (3208) | (47818) | (1714) | (102171) |
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 3897 |  | (2153) |  |
| Net increase in cash, cash equivalents and restricted cash | (73177) | (62635) | 21113 | 18200 |
| Cash, cash equivalents and restricted cash, beginning of period | 263443 | 231788 | 169153 | 150953 |
| Cash, cash equivalents and restricted cash, end of period | $190266 | $169153 | $190266 | $169153 |
| **Supplemental cash flow disclosure:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash paid for taxes | $68 | $90 | $3102 | $646 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest paid | $8123 | $5756 | $18073 | $48058 |
| **Non-cash investing and financing activities:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures incurred but not yet paid | $67 | $83 | $67 | $83 |

---

------

**RECONCILIATIONS OF NON-GAAP MEASURES TO GAAP MEASURES**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** |
| **RECONCILIATION OF NON-GAAP ALLOCATED COMBINED RECEIPTS** | **RECONCILIATION OF NON-GAAP ALLOCATED COMBINED RECEIPTS** | **RECONCILIATION OF NON-GAAP ALLOCATED COMBINED RECEIPTS** | **RECONCILIATION OF NON-GAAP ALLOCATED COMBINED RECEIPTS** | **RECONCILIATION OF NON-GAAP ALLOCATED COMBINED RECEIPTS** |
| **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** |
|  | **Three months <br>ended December 31,** | **Three months <br>ended December 31,** | **Year ended <br>December 31,** | **Year ended <br>December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| Revenue | $124726 | $110593 | $475194 | $405361 |
| Fair value adjustments to deferred revenue in connection with purchase accounting | 13 | 851 | 868 | 9322 |
| Allocated combined receipts | $124739 | $111444 | $476062 | $414683 |

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| | | | | |
|:---|:---|:---|:---|:---|
| **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** |
| **RECONCILIATION OF NON-GAAP SUBSCRIPTION AND SUPPORT ALLOCATED COMBINED RECEIPTS** | **RECONCILIATION OF NON-GAAP SUBSCRIPTION AND SUPPORT ALLOCATED COMBINED RECEIPTS** | **RECONCILIATION OF NON-GAAP SUBSCRIPTION AND SUPPORT ALLOCATED COMBINED RECEIPTS** | **RECONCILIATION OF NON-GAAP SUBSCRIPTION AND SUPPORT ALLOCATED COMBINED RECEIPTS** | **RECONCILIATION OF NON-GAAP SUBSCRIPTION AND SUPPORT ALLOCATED COMBINED RECEIPTS** |
| **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** |
|  | **Three months <br>ended December 31,** | **Three months <br>ended December 31,** | **Year ended <br>December 31,** | **Year ended <br>December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| Subscription and support revenue | $114537 | $101007 | $430661 | $367781 |
| Fair value adjustments to deferred revenue in connection with purchase accounting | 13 | 849 | 867 | 9095 |
| Subscription and support allocated combined receipts | $114550 | $101856 | $431528 | $376876 |

---

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| | | | | |
|:---|:---|:---|:---|:---|
| **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** |
| **RECONCILIATION OF NON-GAAP OPERATING INCOME** | **RECONCILIATION OF NON-GAAP OPERATING INCOME** | **RECONCILIATION OF NON-GAAP OPERATING INCOME** | **RECONCILIATION OF NON-GAAP OPERATING INCOME** | **RECONCILIATION OF NON-GAAP OPERATING INCOME** |
| **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** |
|  | **Three months <br>ended December 31,** | **Three months <br>ended December 31,** | **Year ended <br>December 31,** | **Year ended <br>December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| Loss from operations | $(3780) | $(5431) | $(16480) | $(46948) |
| Stock-based compensation | 10856 | 8063 | 39779 | 25785 |
| Transaction costs(1) | 4206 | 2701 | 9123 | 9090 |
| Sponsor costs(2) | 66 | 27 | 517 | 414 |
| Impairment charges(3) |  |  |  | 8116 |
| Other non-recurring costs(4) | 630 | 794 | 3365 | 3944 |
| Amortization of acquisition-related intangibles | 34520 | 33682 | 136710 | 133994 |
| Fair value adjustments to deferred revenue in connection with purchase accounting | 13 | 851 | 868 | 9322 |
| Non-GAAP operating income | $46511 | $40687 | $173882 | $143717 |

---

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** |
| **RECONCILIATION OF NON-GAAP ADJUSTED EBITDA** | **RECONCILIATION OF NON-GAAP ADJUSTED EBITDA** | **RECONCILIATION OF NON-GAAP ADJUSTED EBITDA** | **RECONCILIATION OF NON-GAAP ADJUSTED EBITDA** | **RECONCILIATION OF NON-GAAP ADJUSTED EBITDA** |
| **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** |
|  | **Three months <br>ended December 31,** | **Three months <br>ended December 31,** | **Year ended <br>December 31,** | **Year ended <br>December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| Net loss | $(5723) | $(20654) | $(34242) | $(88679) |
| Interest on outstanding debt and loss on debt extinguishment | 8257 | 28605 | 24591 | 72775 |
| Benefit for taxes | (1013) | (13697) | (8132) | (33719) |
| Depreciation | 1346 | 985 | 4491 | 3713 |
| Amortization | 2 | 2 | 7 | 7 |
| Stock-based compensation | 10856 | 8063 | 39779 | 25785 |
| Transaction costs(1) | 4206 | 2701 | 9123 | 9090 |
| Sponsor costs(2) | 66 | 27 | 517 | 414 |
| Impairment charges(3) |  |  |  | 8116 |
| Other non-recurring costs(4) | 630 | 794 | 3365 | 3944 |
| Effects of foreign currency transaction (gains) and losses | (4536) | 306 | 2514 | 1916 |
| Amortization of acquisition-related intangibles | 34520 | 33682 | 136710 | 133994 |
| Fair value adjustments to deferred revenue in connection with purchase accounting | 13 | 851 | 868 | 9322 |
| Adjusted EBITDA | $48624 | $41665 | $179591 | $146678 |
| Net loss margin | (4.6)% | (18.7)% | (7.2)% | (21.9)% |
| Adjusted EBITDA margin | 39.0% | 37.4% | 37.7% | 35.4% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** |
| **RECONCILIATION OF FREE CASH FLOW, UNLEVERED FREE CASH FLOW & ADJUSTED UNLEVERED FREE CASH FLOW** | **RECONCILIATION OF FREE CASH FLOW, UNLEVERED FREE CASH FLOW & ADJUSTED UNLEVERED FREE CASH FLOW** | **RECONCILIATION OF FREE CASH FLOW, UNLEVERED FREE CASH FLOW & ADJUSTED UNLEVERED FREE CASH FLOW** | **RECONCILIATION OF FREE CASH FLOW, UNLEVERED FREE CASH FLOW & ADJUSTED UNLEVERED FREE CASH FLOW** | **RECONCILIATION OF FREE CASH FLOW, UNLEVERED FREE CASH FLOW & ADJUSTED UNLEVERED FREE CASH FLOW** |
| **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** |
|  | **Three months <br>ended December 31,** | **Three months <br>ended December 31,** | **Year ended <br>December 31,** | **Year ended <br>December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| Net cash provided by (used in) operating activities | $17003 | $(3673) | $140271 | $105143 |
| Purchases of property and equipment | (1342) | (1459) | (6321) | (4259) |
| Proceeds from disposals of property and equipment | 2 | 13 | 43 | 53 |
| Free cash flow | $15663 | $(5119) | $133993 | $100937 |
| Cash paid for interest on outstanding debt | 8123 | 5756 | 18073 | 48058 |
| Cash settled stock-based compensation | 1941 | 1522 | 6194 | 7616 |
| Unlevered free cash flow | $25727 | $2159 | $158260 | $156611 |
| Transaction costs(1) | 2215 | 1003 | 9474 | 7444 |
| Sponsor costs(2) | 33 | 42 | 378 | 335 |
| Impaired leases | 609 |  | 2074 | 7 |
| Other non-recurring costs(5) | 761 | 839 | 3359 | 4299 |
| Adjusted unlevered free cash flow | $29345 | $4043 | $173545 | $168696 |

---

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** |
| **RECONCILIATION OF NON-GAAP NET INCOME** | **RECONCILIATION OF NON-GAAP NET INCOME** | **RECONCILIATION OF NON-GAAP NET INCOME** | **RECONCILIATION OF NON-GAAP NET INCOME** | **RECONCILIATION OF NON-GAAP NET INCOME** |
| **(in thousands, except per share data)** | **(in thousands, except per share data)** | **(in thousands, except per share data)** | **(in thousands, except per share data)** | **(in thousands, except per share data)** |
| **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** |
|  | **Three months <br>ended December 31,** | **Three months <br>ended December 31,** | **Year ended <br>December 31,** | **Year ended <br>December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| Net loss | $(5723) | $(20654) | $(34242) | $(88679) |
| Stock-based compensation | 10856 | 8063 | 39779 | 25785 |
| Amortization of acquisition-related intangibles | 34520 | 33682 | 136710 | 133994 |
| Fair value adjustments to deferred revenue in connection with purchase accounting | 13 | 851 | 868 | 9322 |
| Loss on extinguishment of debt |  | 22424 |  | 22424 |
| Transaction costs(1) | 4206 | 2701 | 9123 | 9090 |
| Sponsor costs(2) | 66 | 27 | 517 | 414 |
| Impairment charges(3) |  |  |  | 8116 |
| Other non-recurring costs(4) | 630 | 794 | 3365 | 3944 |
| Effects of foreign currency transaction (gains) and losses | (4536) | 306 | 2514 | 1916 |
| Tax effects of adjustments(6) | (11652) | (17184) | (47989) | (53665) |
| Non-GAAP net income | $28380 | $31010 | $110645 | $72661 |
| Non-GAAP net income per common share, basic | $0.20 | $0.22 | $0.78 | $0.55 |
| Non-GAAP net income per common share, diluted | $0.20 | $0.22 | $0.77 | $0.54 |
| Weighted average common shares used in computing basic Non-GAAP net income per common share | 142643 | 140531 | 141815 | 132387 |
| Weighted average common shares used in computing diluted Non-GAAP net income per common share | 144261 | 142870 | 143440 | 133487 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** |
| **RECONCILIATION OF NON-GAAP GROSS PROFIT** | **RECONCILIATION OF NON-GAAP GROSS PROFIT** | **RECONCILIATION OF NON-GAAP GROSS PROFIT** | **RECONCILIATION OF NON-GAAP GROSS PROFIT** | **RECONCILIATION OF NON-GAAP GROSS PROFIT** |
| **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** |
|  | **Three months <br>ended December 31,** | **Three months <br>ended December 31,** | **Year ended <br>December 31,** | **Year ended <br>December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| Gross profit | $79914 | $68803 | $302900 | $235496 |
| Stock-based compensation | 833 | 596 | 3090 | 1858 |
| Transaction costs(1) |  |  | 226 |  |
| Impairment of leased properties |  |  |  | 2768 |
| Other non-recurring costs | 5 | 54 | 69 | 277 |
| Amortization of acquisition-related intangibles | 15952 | 15648 | 63386 | 62060 |
| Fair value adjustments to deferred revenue in connection with purchase accounting | 13 | 851 | 868 | 9322 |
| Non-GAAP gross profit | $96717 | $85952 | $370539 | $311781 |
| GAAP gross margin | 64.1% | 62.2% | 63.7% | 58.1% |
| Non-GAAP gross margin | 77.5% | 77.1% | 77.8% | 75.2% |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** |
| **RECONCILIATION OF NON-GAAP COST OF REVENUE** | **RECONCILIATION OF NON-GAAP COST OF REVENUE** | **RECONCILIATION OF NON-GAAP COST OF REVENUE** | **RECONCILIATION OF NON-GAAP COST OF REVENUE** | **RECONCILIATION OF NON-GAAP COST OF REVENUE** | **RECONCILIATION OF NON-GAAP COST OF REVENUE** | **RECONCILIATION OF NON-GAAP COST OF REVENUE** | **RECONCILIATION OF NON-GAAP COST OF REVENUE** |
| **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** |
| **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** |
|  | **GAAP** | **Stock-based compensation expense** | **Transaction Costs** | **Impairment charges** | **Other non-recurring costs** | **Amortization of acquired intangibles** | **Non-GAAP** |
| Cost of Revenue: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Subscription and support | $38127 | $(383) | $— | $— | $(5) | $(15952) | $21787 |
| &nbsp;&nbsp;&nbsp;&nbsp;Professional services and other | 6685 | (450) |  |  |  |  | 6235 |
| Total cost of revenue | $44812 | $(833) | $— | $— | $(5) | $(15952) | $28022 |

---

------

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** |
| **RECONCILIATION OF NON-GAAP COST OF REVENUE** | **RECONCILIATION OF NON-GAAP COST OF REVENUE** | **RECONCILIATION OF NON-GAAP COST OF REVENUE** | **RECONCILIATION OF NON-GAAP COST OF REVENUE** | **RECONCILIATION OF NON-GAAP COST OF REVENUE** | **RECONCILIATION OF NON-GAAP COST OF REVENUE** | **RECONCILIATION OF NON-GAAP COST OF REVENUE** | **RECONCILIATION OF NON-GAAP COST OF REVENUE** |
| **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** |
| **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** |
|  | **GAAP** | **Stock-based compensation expense** | **Transaction Costs** | **Impairment charges** | **Other non-recurring costs** | **Amortization of acquired intangibles** | **Non-GAAP** |
| Cost of Revenue: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Subscription and support | $36348 | $(247) | $— | $— | $(24) | $(15648) | $20429 |
| &nbsp;&nbsp;&nbsp;&nbsp;Professional services and other | 5442 | (349) |  |  | (30) |  | 5063 |
| Total cost of revenue | $41790 | $(596) | $— | $— | $(54) | $(15648) | $25492 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** |
| **RECONCILIATION OF NON-GAAP COST OF REVENUE** | **RECONCILIATION OF NON-GAAP COST OF REVENUE** | **RECONCILIATION OF NON-GAAP COST OF REVENUE** | **RECONCILIATION OF NON-GAAP COST OF REVENUE** | **RECONCILIATION OF NON-GAAP COST OF REVENUE** | **RECONCILIATION OF NON-GAAP COST OF REVENUE** | **RECONCILIATION OF NON-GAAP COST OF REVENUE** | **RECONCILIATION OF NON-GAAP COST OF REVENUE** |
| **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** |
| **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** |
|  | **GAAP** | **Stock-based compensation expense** | **Transaction Costs** | **Impairment charges** | **Other non-recurring costs** | **Amortization of acquired intangibles** | **Non-GAAP** |
| Cost of Revenue: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Subscription and support | $146546 | $(1348) | $(135) | $— | $(33) | $(63386) | $81644 |
| &nbsp;&nbsp;&nbsp;&nbsp;Professional services and other | 25748 | (1742) | (91) |  | (36) |  | 23879 |
| Total cost of revenue | $172294 | $(3090) | $(226) | $— | $(69) | $(63386) | $105523 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** |
| **RECONCILIATION OF NON-GAAP COST OF REVENUE** | **RECONCILIATION OF NON-GAAP COST OF REVENUE** | **RECONCILIATION OF NON-GAAP COST OF REVENUE** | **RECONCILIATION OF NON-GAAP COST OF REVENUE** | **RECONCILIATION OF NON-GAAP COST OF REVENUE** | **RECONCILIATION OF NON-GAAP COST OF REVENUE** | **RECONCILIATION OF NON-GAAP COST OF REVENUE** | **RECONCILIATION OF NON-GAAP COST OF REVENUE** |
| **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** |
| **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** |
|  | **GAAP** | **Stock-based compensation expense** | **Transaction Costs** | **Impairment charges** | **Other non-recurring costs** | **Amortization of acquired intangibles** | **Non-GAAP** |
| Cost of Revenue: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Subscription and support | $148923 | $(899) | $— | $(1918) | $(214) | $(62060) | $83832 |
| &nbsp;&nbsp;&nbsp;&nbsp;Professional services and other | 20942 | (959) |  | (850) | (63) |  | 19070 |
| Total cost of revenue | $169865 | $(1858) | $— | $(2768) | $(277) | $(62060) | $102902 |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** |
| **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** | **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** | **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** | **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** | **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** | **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** | **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** | **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** | **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** | **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** | **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** |
| **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** |
| **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** |
|  | **GAAP** | **Stock-based compensation expense** | **Transaction costs** | **Sponsor costs** | **Impairment charges** | **Other non-recurring costs** | **Amortization of acquired intangibles** | **Non-GAAP** | **GAAP % of revenue** | **Non-GAAP % of ACR** |
| Operating expenses: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | $46801 | $(2888) | $(1129) | $— | $— | $(76) | $(18568) | $24140 | 37.5% | 19.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development | 20723 | (3206) | (1170) |  |  | (9) |  | 16338 | 16.6% | 13.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 16170 | (3929) | (1911) | (66) |  | (536) |  | 9728 | 13.0% | 7.8% |
| Total operating expenses | $83694 | $(10023) | $(4210) | $(66) | $— | $(621) | $(18568) | $50206 | 67.1% | 40.3% |

---

------

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** |
| **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** | **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** | **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** | **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** | **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** | **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** | **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** | **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** | **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** | **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** | **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** |
| **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** |
| **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** |
|  | **GAAP** | **Stock-based compensation expense** | **Transaction costs** | **Sponsor costs** | **Impairment charges** | **Other non-recurring costs** | **Amortization of acquired intangibles** | **Non-GAAP** | **GAAP % of revenue** | **Non-GAAP % of ACR** |
| Operating expenses: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | $41686 | $(2122) | $(38) | $— | $— | $(82) | $(18034) | $21410 | 37.7% | 19.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development | 16580 | (2047) | (702) | (18) |  | (417) |  | 13396 | 15.0% | 12.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 15968 | (3298) | (1961) | (9) |  | (241) |  | 10459 | 14.4% | 9.4% |
| Total operating expenses | $74234 | $(7467) | $(2701) | $(27) | $— | $(740) | $(18034) | $45265 | 67.1% | 40.6% |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** |
| **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** | **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** | **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** | **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** | **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** | **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** | **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** | **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** | **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** | **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** | **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** |
| **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** |
| **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** |
|  | **GAAP** | **Stock-based compensation expense** | **Transaction costs** | **Sponsor costs** | **Impairment charges** | **Other non-recurring costs** | **Amortization of acquired intangibles** | **Non-GAAP** | **GAAP % of revenue** | **Non-GAAP % of ACR** |
| Operating expenses: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | $181744 | $(11050) | $(1302) | $— | $— | $(705) | $(73324) | $95363 | 38.2% | 20.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development | 77189 | (11467) | (3025) |  |  | (929) |  | 61768 | 16.2% | 13.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 60447 | (14172) | (4568) | (518) |  | (1663) |  | 39526 | 12.7% | 8.3% |
| Total operating expenses | $319380 | $(36689) | $(8895) | $(518) | $— | $(3297) | $(73324) | $196657 | 67.1% | 41.3% |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** | **INSTRUCTURE HOLDINGS, INC.** |
| **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** | **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** | **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** | **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** | **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** | **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** | **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** | **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** | **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** | **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** | **RECONCILIATION OF NON-GAAP OPERATING EXPENSES** |
| **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** |
| **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** |
|  | **GAAP** | **Stock-based compensation expense** | **Transaction costs** | **Sponsor costs** | **Impairment charges** | **Other non-recurring costs** | **Amortization of acquired intangibles** | **Non-GAAP** | **GAAP % of revenue** | **Non-GAAP % of ACR** |
| Operating expenses: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | $162544 | $(6936) | $(237) | $— | $(2042) | $(392) | $(71934) | $81003 | 40.1% | 19.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development | 63771 | (6943) | (1675) | (66) | (1355) | (945) |  | 52787 | 15.7% | 12.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 54911 | (10048) | (7178) | (348) | (733) | (2330) |  | 34274 | 13.5% | 8.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment on disposal group | 1218 |  |  |  | (1218) |  |  |  | 0.3% |  |
| Total operating expenses | $282444 | $(23927) | $(9090) | $(414) | $(5348) | $(3667) | $(71934) | $168064 | 69.6% | 40.5% |

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**FOOTNOTES**

<sup>(1)</sup> Represents expenses incurred with third parties as part of the Company's merger and acquisition activity, including due diligence, closing and post-close integration activities.

<sup>(2)</sup> Represents expenses incurred for services provided by Thoma Bravo and their affiliates.

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| | | | | |
|:---|:---|:---|:---|:---|
| (3) Includes impairment charges as follows (in thousands): | **Three months <br>ended December 31,** | **Three months <br>ended December 31,** | **Year ended <br>December 31,** | **Year ended <br>December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| Impairment on Bridge disposal group | $— | $— | $— | $1218 |
| Impairment of leased properties |  |  |  | 6898 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total impairment charges | $— | $— | $— | $8116 |

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| | | | | |
|:---|:---|:---|:---|:---|
| (4) Includes other non-recurring costs as follows (in thousands): | **Three months <br>ended December 31,** | **Three months <br>ended December 31,** | **Year ended <br>December 31,** | **Year ended <br>December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| Professional services related to sale of Bridge | $— | $— | $— | $1185 |
| Loss on exit of leased properties |  |  |  | 66 |
| Contract modification fees |  |  | 230 | 9 |
| Employee severance | 195 | 574 | 744 | 1761 |
| Workforce realignment costs | 267 |  | 1388 |  |
| Other insignificant non-recurring costs | 168 | 220 | 1003 | 923 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other non-recurring costs | $630 | $794 | $3365 | $3944 |

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| | | | | |
|:---|:---|:---|:---|:---|
| (5) Includes other non-recurring costs paid in cash as follows (in thousands): | **Three months <br>ended December 31,** | **Three months <br>ended December 31,** | **Year ended <br>December 31,** | **Year ended <br>December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| Employee severance | $234 | $569 | $744 | $1941 |
| Workforce realignment costs | 344 |  | 980 | 153 |
| Contract modification fees |  |  | 186 |  |
| Professional services related to sale of Bridge |  |  |  | 1208 |
| Other insignificant non-recurring costs | 183 | 270 | 1449 | 997 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other non-recurring costs paid in cash | $761 | $839 | $3359 | $4299 |

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(6) During the fourth quarter of 2022, we revised the methodology for calculating Non-GAAP Net Income (see Non-GAAP Financial Measures above for details). The table above includes the tax effects of the adjustments calculated by using the statutory tax rate, taking into consideration the nature of the item and the relevant taxing jurisdiction.<br>

**For More Information:**

**<br>Media Relations:** <br> Brian Watkins<br>Corporate Communications<br>Instructure<br>(801) 610-9722<br>brian.watkins@instructure.com

**Investor Relations:** <br> April Scee<br>Managing Director<br>ICR, Inc.<br>(917) 497-8992<br>april.scee@icrinc.com

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