SALT LAKE CITY - Instructure, the company behind Canvas LMS, has introduced a new integration with Microsoft (NASDAQ:MSFT) Reflect to bolster mental wellness support for students and educators globally. This integration, which coincides with World Mental Health Day on October 10, aims to facilitate social-emotional learning (SEL) within the digital classroom environment, from K-12 to higher education.
Microsoft Reflect will be embedded into Canvas LMS to allow for SEL check-ins, enabling students to express their thoughts and feelings as part of their daily routines. Elad Graiver, Principal Product Manager at Microsoft Education, stated that this feature empowers educators to provide timely support, enhancing the learning and classroom experience.
In addition, Instructure has launched a Mental Wellness Hub within its Community, which is a collaborative space for 2.25 million users to exchange ideas and strategies for promoting mental health in educational settings. The Hub offers resources, professional development, and a forum for discussion.
Chief Academic Officer at Instructure, Melissa Loble, emphasized the company's commitment to supporting the "whole learner" by providing tools that foster emotional well-being, thus creating a positive environment for both students and educators.
The integration and the Mental Wellness Hub are part of Instructure's response to the growing recognition of emotional well-being as a critical component of academic success. Research from the Healthy Minds Network suggests a significant portion of students and faculty experience symptoms of depression and feeling overwhelmed, highlighting the need for accessible mental wellness tools.
Instructure plans to feature the integration and Hub on its social channels throughout October, offering tips, resources, and podcasts to help educators utilize these new tools effectively.
The information for this article is based on a press release statement. For more details, individuals can visit the Microsoft Reflect and Canvas LMS websites.
In other recent news, Instructure, Inc. is set to be acquired by private equity firm KKR in a deal valued at approximately $4.8 billion. The acquisition, unanimously approved by Instructure's board of directors, will see shareholders receive $23.60 per share in cash, a 16% premium over the pre-acquisition share price. The deal is expected to close in the second half of 2024, leading to Instructure becoming a privately held company and its common stock being delisted from the New York Stock Exchange.
On the heels of this announcement, several investment firms including Raymond James, Truist Securities, Citi, and Jefferies have revised their ratings on Instructure's stock. The common consensus has been a shift from 'Buy' to 'Hold' or 'Neutral', aligning with the offer price set by KKR.
Instructure's recent financial performance shows a 20.7% year-over-year increase in first-quarter revenues to $155.5 million, primarily driven by a 22.1% rise in subscription and support revenue. Following these results, the company raised its fiscal year 2024 revenue outlook to a range of $656.5 million to $666.5 million. These are the recent developments surrounding Instructure.
InvestingPro Insights
As Instructure (INST) rolls out its new mental wellness integration with Microsoft Reflect, investors may be interested in the company's financial health and market position. According to InvestingPro data, Instructure's market capitalization stands at $3.45 billion, reflecting its significant presence in the educational technology sector.
The company's revenue growth is noteworthy, with a 17.58% increase over the last twelve months as of Q2 2024, reaching $596.2 million. This growth aligns with Instructure's expansion of services, such as the new mental wellness features, which could potentially drive further adoption of its Canvas LMS platform.
InvestingPro Tips highlight that Instructure's net income is expected to grow this year, which could be partly attributed to initiatives like the Microsoft Reflect integration and the Mental Wellness Hub. These additions may enhance the company's value proposition to educational institutions, potentially leading to increased market share and revenue.
Despite not being profitable over the last twelve months, analysts predict that Instructure will turn a profit this year. This projection, combined with the company's efforts to address critical needs in education like mental wellness support, suggests a positive outlook for Instructure's financial performance.
It's worth noting that Instructure generally trades with low price volatility, which may appeal to investors looking for stability in the tech sector. However, the stock is currently trading at high valuation multiples for EBIT, EBITDA, and revenue, indicating that the market has high expectations for the company's future growth and profitability.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. In fact, there are 8 more InvestingPro Tips available for Instructure, providing a deeper understanding of the company's financial position and market potential.
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