Infrastructure

Investment Analysis Clubs Saul’s Investing Discussions
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https://www.pcmag.com/article2/0,2817,2490586,00.asp

a recent favorable review of Instructure

this company fits a couple of my primary investing criteria, a rising stock price and a product addressing a “broken process” . In this case mostly K-12 education. But unfortunately most K-12 participants get paid no matter how bad the outcome, so many will not be in any rush to improve their product.

http://mfeldstein.com/tag/instructure/
a source of articles on LMS

The potential market is not limited to the US

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Instructure Infrastructure sorry for the typo
Since Saul’s board seems to operate in dog’s years here are some of the previous discussions

http://discussion.fool.com/why-i-bought-instructure-inst-3283437…

I see no moat here, at the most just best of breed.

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Hey Mauser:

Very interesting!

Their web site is here:

https://www.instructure.com

A nice review article here:

https://seekingalpha.com/article/4107517-instructure-premium…

I believe Instructure to be temporarily undervalued - a few more quarters of outperforming earnings should close the valuation gap. A revenue multiple of 6x would be an appropriate near-term valuation for Instructure, implying a price target of $38. In addition, any further buzz from the pending Cornerstone OnDemand sale overtures may give lift to Instructure’s stock.

That is pretty close to its present stock price.

At first blush, would be a little concerned about their low capital war chest…especially based on their cash burn particularly with launch of new products they have announced.

I understand what Canvas and Bridge are but what is the “Gauge” (? K-12 product) and “HCM” and “Arc” as well as each categories TAM? They said gauge is $200-300 million TAM.

Regarding the K-12 initiative from their last earnings call:

And so yeah, we are definitely gaining some traction there, because of market awareness. But, at the same time, I want to caution that, there is still a lot of unknowns in the K12 market. It’s still a little squirly, but we continue to win our unfair share of that market, and win rates are increasing, and also of course, with the announcement of the Gauge product, we are really doubling down on our ability to offer compelling products to this market, with the Assessment Management Platform that dramatically increases the total addressable market in K12, and so we anticipate that will be even more attractive to the larger districts, which really honestly are the most interesting districts out there.

When was the last time the TAM was described as “squirly” :wink:

Sounds like they are less certain about K-12…but the concept of centralizing management in larger school districts does make sense.

Also, what about their main competitor in Blackoard:

http://www.blackboard.com

I know that Utra has been delayed but what impact would this launch have on its TAM? How are they differentiated from Blackboard?

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http://discussion.fool.com/why-i-bought-instructure-inst-3283437……

OK that was helpful to get caught up a bit…thought this was new to this board.

So given the higher cash burn and relatively little cash reserves, would seem to me that another secondary may be coming or do you anticipate LOC?

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Hello Duma,

On the last conference call they indicated that most of their cash is received in Q3 of the calendar year, as institutions like to have the contracts end with the school year. Customers pay annually in advance and INST expects that this quarter’s cash will be sufficient to avoid debt and having to raise capital.

I have a starter position and am waiting to see how much cash actually comes in.

Best regards,

Mike