Technology

Instructure Quietly Enters the Market in IPO

Chris Lange

Published: November 13, 2015 10:50 am

Last Updated: January 13, 2020 5:13 pm

Instructure Inc. (NYSE: INST) quietly entered the market on Friday in its initial public offering. The company priced its $4.4 million shares at $16, the bottom end of its expected price range of $16 to $18. At this price, the entire offering, including the 660,000 share overallotment option, is valued at $80.96 million.

The underwriters for the offering are Morgan Stanley, Goldman Sachs, Jefferies, Needham, Oppenheimer and Raymond James.

The company provides an innovative, cloud-based learning management platform for academic institutions and companies worldwide. Instructure built its learning management applications, Canvas, for the education market, and Bridge, for the corporate market, to enable customers to easily develop, deliver and manage engaging face-to-face and online learning experiences. The platform combines powerful, elegant and easy-to-use functionality with the reliability, security, scalability and support required by customers.

Instructure develops software that millions of students, teachers and employees use to help achieve their education and learning goals. The applications enhance academic and corporate learning by providing an engaging, easy-to-use platform for instructors and learners, enabling frequent and open interactions, streamlining workflow and allowing the creation and sharing of content with anytime, anywhere access to information. These open standards allow for integration with third-party publishers and software providers to deliver additional learning content and applications. Instructure’s platform also provides data analytics capabilities enabling real-time reaction to information and benchmarking in order to personalize curricula and increase the efficacy of the learning process.

In the filing, Instructure gave its finances as follows:

For 2012, 2013 and 2014, revenue was $8.8 million, $26.1 million and $44.4 million, respectively, representing year-over-year growth of 197% and 70%. We have experienced net revenue retention rates of over 100% at each of December 31, 2012, 2013 and 2014. For 2012, 2013 and 2014, our net losses were $18.5 million, $22.5 million and $41.4 million, respectively, as we focused on growing our business. For the nine months ended September 30, 2015, revenue was $51.4 million and we incurred a net loss of $40.9 million.

The company intends to use the proceeds from this offering for general corporate purposes, including working capital, sales and marketing activities, research and development activities, general and administrative matters and capital expenditures.

Shares of Instructure were last seen trading at $17.70, in a range of $15.75 to $17.25 on the day thus far.

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