Instructure Holdings, Inc. (NYSE:INST) Q1 2022 Earnings Conference Call May 2, 2022 5:00 PM ET

Company Participants

Denise Garcia – Investor Relations

Steve Daly – Chief Executive Officer

Dale Bowen – Chief Financial Officer

Conference Call Participants

Josh Baer – Morgan Stanley

Fred Havemeyer – Macquarie

Joe Vruwink – Baird

Alex Sklar – Raymond James

Matt VanVliet – BTIG

Steven Sheldon – William Blair

Operator

Ladies and gentlemen, thank you for standing by, and welcome to Instructure's First Quarter 2022 Earnings Call. At this time all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. Please be advised that this conference is being recorded.

I would now like to turn the conference over to your first speaker, Denise Garcia, Investor Relations. Denise, please go ahead.

Denise Garcia

Thank you. Good afternoon and welcome to Instructure's first quarter 2022 earnings call. We will be discussing the results announced in our press release issued after the market closed today. With me are Instructure's Chief Executive Officer, Steve Daly; and Chief Financial Officer, Dale Bowen.

Before we begin, I'd like to remind you that today's conference call will include forward-looking statements based on the company's current expectations. These forward-looking statements are subject to a number of significant risks and uncertainties, and our actual results may differ materially. For a discussion of factors that could affect our future financial results and business, please refer to the disclosure in today's earnings release and other reports and filings we file from time to time with the Securities and Exchange Commission. All of our statements are made as of today based on information available to us today, and except as required by law, we assume no obligation to update such statements. During the call, we will also refer to both GAAP and non-GAAP financial measures. You could find the reconciliation of our GAAP to non-GAAP measures included in our press release, which is posted to the Investor Relations section of our website.

With that, let me turn the call over to Steve.

Steve Daly

Thank you, Denise, and good afternoon, everyone. Thank you all for joining us for our first quarter 2022 earnings call. During today's call, Dale and I will provide details on our first quarter results and provide second quarter and updated full year 2022 guidance. Instructure delivered another strong quarter in Q1, exceeding our previously communicated guidance ranges across all of our guidance metrics. First quarter GAAP revenue was $113.5 million, up 21% year-over-year, while allocated combined receipts, or ACR, was $114 million, up 15% year-over-year. Normalizing for the Bridge divestiture, GAAP revenue and ACR were up 26% and 20% year-over-year, respectively. We think ACR, which adds back the impact of fair value adjustments to acquired unearned revenue, gives investors better visibility into the underlying growth of our business.