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Analysts Have Made A Financial Statement On Instructure Holdings, Inc.'s (NYSE:INST) Annual Report

Instructure Holdings, Inc. (NYSE:INST) shareholders are probably feeling a little disappointed, since its shares fell 6.9% to US$22.71 in the week after its latest yearly results. Revenues came in at US$530m, in line with forecasts and the company reported a statutory loss of US$0.24 per share, roughly in line with expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Instructure Holdings

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earnings-and-revenue-growth

Following the latest results, Instructure Holdings' ten analysts are now forecasting revenues of US$661.4m in 2024. This would be a major 25% improvement in revenue compared to the last 12 months. Per-share losses are expected to explode, reaching US$0.29 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$580.2m and losses of US$0.11 per share in 2024. So there's been quite a change-up of views after the recent consensus updates, with the analysts significantly increasing their revenue forecasts while also expecting losses per share to increase. It looks like the top line growth will not be achieved without incremental costs.

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There was no major change to the consensus price target of US$30.40, with growing revenues seemingly enough to offset the concern of growing losses. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Instructure Holdings, with the most bullish analyst valuing it at US$35.00 and the most bearish at US$28.00 per share. This is a very narrow spread of estimates, implying either that Instructure Holdings is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Instructure Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 25% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 19% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Instructure Holdings is expected to grow much faster than its industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Instructure Holdings. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Instructure Holdings going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Instructure Holdings that we have uncovered.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.