Ladies and gentlemen, thank you for standing by, and welcome to Instructure's Q4 and fiscal year 2021 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a Q&A. Please be advised that this conference is being recorded. I would now like to turn the conference over to our first speaker, Denise Garcia, Investor Relations. Denise, please go ahead. Thank you, Mel. Good afternoon, and welcome to Instructure's Q4 and full year 2021 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. Except as required by law, we assume no obligation to update any such statements. During the call, we will also refer to both GAAP and non-GAAP financial measures. You can 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. Thank you, Denise, and good afternoon, everyone. Thank you all for joining us for our Q4 and full year 2021 earnings call. During today's call, Dale and I will provide details on our Q4 results and provide Q1 and full year 2022 guidance. Instructure delivered another strong quarter in Q4, exceeding our previously communicated guidance ranges across all of our guidance metrics. Q4 GAAP revenue was $110.6 million, up 26% year-over-year, while allocated combined receipts or ACR was $111.4 million, up 23% year-over-year. We had our best Q4 bookings in the history of the company as we continued to execute on the go-to-market strategy we introduced last fall. Full year 2021 GAAP revenue was $405.4 million, up 34% year over year, while ACR was $414.7 million, up 28% year over year. 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. Thanks to our focused investment approach, Q4 adjusted EBITDA grew 57% year over year to $41.7 million, a 37% margin. Full year 2021 adjusted EBITDA more than doubled to $146.7 million, and we converted 115% of full-year adjusted EBITDA to adjusted unlevered free cash flow. Total customers grew 14% year over year to nearly 7,000 at the end of Q4 as Canvas gained share across each of our key markets. Net revenue retention was 109% in 2021, which highlights the continued growth opportunity in our customer base. Our strong Q4 financial performance capped off a truly outstanding year for Instructure. We look forward to building on our success in 2022 and beyond as we continue to enhance our Instructure Learning Platform while remaining focused on driving profitable growth and maintaining our industry-leading margins. I now wanna talk about five key highlights for the quarter. First, in Q4, we once again saw strength in each of our key markets. U.S. higher education, K-12, and international. In higher education, our cloud-native and extendable platform continued to displace legacy systems. During the quarter, Walden University selected Canvas for its 40,000-student population because of its superior user interface and flexibility at scale while providing data access and a robust API. The deal also included Impact to help accelerate Walden's transition from Blackboard to Canvas while providing continuity with previous functionality. We are seeing strong uptake of Impact in higher education as well as K-12 as educational institutions seek to better understand how edtech tools are being used in their environment. We have also been very pleased by how Impact has been received in the K-12 markets since we announced the availability of the solution last fall, and we expect Impact to further differentiate us from our K-12 competitors while expanding our total addressable market. In K-12 more broadly, we continued to take share from both unpaid and paid legacy LMS systems during the quarter. In Q4, Harford County Public Schools selected Canvas LMS and Canvas Studio after the incumbents, a paid LMS vendor, terminated its legacy system. Harford chose us because of our strong product features and our expertise in migrations and change management services. International remained our fastest-growing part of the business in Q4, and we continue to believe international can be as large as our U.S. business over time. In Australia, we signed a deal with Australian Catholic University, or ACU, to replace their Moodle system. After a comprehensive competitive tender process, ACU selected Canvas and Impact as the foundation for the next-generation digital ecosystem to underpin ACU Online, the university's recently launched fully online education portfolio. Second, our focused go-to-market and expanded set of offerings are resulting in higher penetration of products across our customer base through both cross-sell opportunities and new logo deals. In 2021, 43% of new wins involved more than one product, up from 33% in 2020. During the quarter, Newport News Public Schools took advantage of the statewide Virtual Virginia contract, which allows districts to use Canvas as a procurement vehicle to purchase MasteryConnect, our K-12 student assessment management system. Armed with better sales tools, our dedicated K-12 assessment sales team is having great success cross-selling our suite of assessment management solutions, including MasteryConnect and Certica, into our customer and Canvas installed base. Third, we are making disciplined investments to expand our platform and drive long-term growth. Our high growth margins, strong sales execution, productive R&D investment, and low capital requirements allow us to reinvest in the business, pursue strategic M&A, and deleverage while maintaining industry-leading margins. For example, the full year 2022 guidance we are providing today, which Dale will discuss in greater detail later in the call, takes into account meaningful increases in R&D and sales headcount, expanding our sales capacity while delivering expected 36% adjusted EBITDA margin, well ahead of consensus 2022 estimates for our edtech peers. Fourth, we have a strong track record of value creation through M&A. With Canvas at our core, we are uniquely capable of improving the performance, accessibility, and reach of acquired software solutions. Our technical integrations have gone smoothly and ahead of schedule, which has allowed our sales teams to rapidly incorporate newly acquired products into their conversations. As a result, we've been very successful in adding products we acquired over the last 12 months to our existing Canvas base. Fifth, as our international business continues to grow rapidly and gain market share, we are looking at ways to turbocharge growth. Last month, we announced the launch of a new channel partner program, which is expected to spur growth in APAC, EMEA, and LATAM markets. The new program offers potential partners additional ways to generate revenue beyond reselling products with opportunities such as implementation, training, and support services. Early feedback has been positive, and we are optimistic about the cost-effective expansion of our international footprint through channel partners. Turning to stimulus funding, last month, the Department of Education announced that every state education agency received approval of their American Rescue Plan Elementary and Secondary School Emergency Relief, or ESSER, plan before the end of 2021, resulting in the distribution of $41 billion of additional funding, which had been contingent on state plan approval. With only $26 billion of the $190 billion of ESSER funds used as of November 2021, we expect the funding environment to remain favorable for years to come. Looking to the remainder of 2022 and beyond, we believe the Instructure Learning Platform is uniquely positioned to help educational institutions and developers solve the complex challenges presented by the proliferation of edtech tools. For educational institutions, these challenges include a fragmented user experience, siloed data, unclear ROI, security risks, and difficulties in evaluating, implementing, and managing applications. For edtech tool developers, accessing education markets and navigating procurement processes are significant hurdles. Our 2022 product roadmap includes investments to expand the capabilities of our platform as we address an even larger share of our $30 billion total market opportunity. In our core North American higher education business, we expect the number of RFP opportunities to significantly increase in 2022 relative to 2021 as universities look to upgrade their infrastructures. Our growing pipeline includes large universities with legacy LMS systems, which simply cannot scale to meet the demands of millions of concurrent users. We are highly confident in our competitive position and look forward to continued momentum in the coming years. In summary, I couldn't be more excited to lead Instructure through our evolution into the most comprehensive teaching and learning platform worldwide. I would like to thank our customers, our partners, our employees, and shareholders for your ongoing support. With that, I will now turn the call over to Dale to talk about our financial results and the ongoing momentum we're seeing in the business. Thank you, Steve, and thanks again to everyone for joining us today. Before discussing our detailed financial results, I'd like to point out that in addition to our GAAP results, I will be discussing certain non-GAAP results. Our GAAP financial results, along with a reconciliation between GAAP and non-GAAP results, can be found in our earnings release, which is posted in the investor relations section of our website. In the Q4, we continued to show a combination of strong top-line growth and expanding adjusted EBITDA margins. For the full year, we expanded adjusted EBITDA margin by 1,350 basis points. We expect to maintain our industry-leading margins as we deliver durable, profitable growth in the years ahead. As Steve mentioned, we generated Q4 2021 total GAAP revenue of $110.6 million, up 26% year-over-year, and ACR of $111.4 million, up 23% year-over-year. Subscription and support ACR accounted for 91% of our Q4 revenue at $101 million, up 27% year-over-year, primarily as a result of the continued momentum within our core Canvas LMS product, both domestically and internationally, in addition to the strong up-sell and cross-sell of our other products, especially assessments. Professional services and other revenue accounted for 9% of our Q4 revenue at $9.6 million, up 22% year-over-year, driven by strong implementation and training services delivery in our K-12 business. Deferred revenue at the end of the Q4 was $255.7 million, up 25% year-over-year. Remaining performance obligations or RPO were $698 million at the end of the Q4, up 60% year-over-year. We expect to recognize revenue on approximately 76% of our RPO over the next 24 months. In discussing the remainder of the income statement, please note that unless otherwise stated, all references to our expenses, operating results and share count are on a non-GAAP basis. Please note that when I refer to margins in the upcoming comments, I'm referring to margins calculated as a percentage of ACR. Our strong gross margin profile is supported by our optimized cloud architecture and flexible support model that scales to meet seasonal customer demand. In the Q4, gross profit was $86 million, representing a 77.1% gross margin, up from 68.3% in the Q4 of 2020. We couldn't be more pleased with our enhanced operating model and continued operating leverage on the gross margin line. Turning now to operating expenses. Sales and marketing expenses for the Q4 were $21.4 million, or 19.2% of ACR, down from 22.1% in the Q4 of 2020. Research and development expenses for the Q4 were $13.4 million or 12% of ACR, compared to 11.5% in the Q4 of 2020, as we invested in engineering headcount to pursue our ambitious product roadmap. General and administrative expenses for the Q4 were $10.5 million or 9.4% of ACR, up from 6.7% in the Q4 of 2020, driven largely by the addition of public company costs in the second half of 2021. Non-GAAP operating income for the Q4 was $40.7 million, representing a 36.5% operating margin, up from 27.9% in the Q4 of 2020. Q4 adjusted EBITDA was $41.7 million, representing a 37.4% adjusted EBITDA margin, up from 29.3% in the Q4 of 2020. Non-GAAP net income for the Q4 was $48.2 million or $0.34 per share, compared to $17 million or $0.13 per share a year ago. Turning to the balance sheet and cash flow statement. We ended the Q4 with $169.2 million in cash equivalents and restricted cash, and $493.3 million of long-term debt net of discount, resulting in a 2.2x net debt to trailing twelve-month adjusted EBITDA ratio. Full year 2021 GAAP operating cash flow was $105.1 million, compared to negative $20.2 million in the prior year. Full year free cash flow was $100.9 million, compared to -$22.4 million in the prior year. Full year 2021 unlevered free cash flow was $156.6 million, a 124% year-over-year increase from $69.9 million in 2020. While adjusted unlevered free cash flow, which adjusts for the impact of restructuring, transaction and sponsor-related costs paid in cash, was $168.7 million, a 69% year-over-year increase from $99.7 million in 2020. As a reminder, our strong free cash flow generation conversion is driven by our favorable billing terms, low capital expenditures, and our accumulated tax assets, which we believe will act as a tax shield for the next several years. I will now conclude the call by providing guidance for Q1 and for the full year of 2022 for ACR, adjusted EBITDA, and adjusted unlevered free cash flow. We have provided additional guidance details in our earnings press release. For the Q1 of fiscal 2022, we expect ACR in the range of $109.1 million-$110.1 million. Normalizing for the Bridge divestiture, our Q1 ACR guidance growth rate is 16% at the midpoint. For the full year, we expect ACR in the range of $456.7 million-$460.7 million. Normalizing for the Bridge divestiture, our full year ACR guidance growth rate is 12% at the midpoint. As a reminder, in February of 2021, we sold Bridge, our corporate LMS business. Bridge contributed approximately $4 million of ACR during the Q1 of 2021. We expect Q1 adjusted EBITDA in the range of $37.9 million-$38.9 million, representing an adjusted EBITDA margin of 35% at the midpoint of the range. For the full year, we expect adjusted EBITDA in the range of $162.1 million-$166.1 million, representing an adjusted EBITDA margin of 35.8% at the midpoint of the range. We anticipate full year 2022 adjusted unlevered free cash flow to be between $183 million and $187 million. Please note that moving forward, we plan to use adjusted unlevered free cash flow as our primary free cash flow metric because it provides a better measure of our ongoing cash generation. A couple of quick points on seasonality. First, as a reminder, ACR is typically roughly flat between our first and Q2, and we expect this trend to repeat itself this year. Second, we expect our adjusted unlevered free cash flow seasonality to look a little different this year. By leveraging our scale and strong balance sheet, we've been able to secure favorable terms with our vendors, thereby reducing our cost structure and improving our gross margins a lot, gross margins over time. We're able to do this by making incremental prepayments to vendors in the order of $25 million-$30 million, which will impact adjusted unlevered free cash flow year-over-year comparisons for the Q1. In summary, 2021 was an incredible year for Instructure. We reentered the public market and executed at a very high level, exceeding our guidance in every quarter. From our position at the center of teaching and learning, we are leading the digital transformation of education. Financially, we offer a rare combination of double-digit growth and best-in-class margins. We couldn't be more pleased about our momentum in the marketplace and look forward to updating you on our progress throughout 2022. With that, Steve and I are happy to take any of your questions. Thank you. As a reminder, to ask a question, you will need to press star one on the telephone keypad. Again, that would be star one on the telephone keypad to ask a question. To withdraw your question, press the pound key. Please stand by while we compile the Q&A roster. We have the first question coming from the line of Josh Baer of Morgan Stanley. Your line is now open. You may ask your question. Great. Thanks for the question, and congrats on the finish to a strong year. I guess I wanna ask with, you know, adding 800 customers and 109% retention rate, really, like, what does the pipeline look heading into 2022? If you could kinda give any context on pipeline across higher ed, K-12 and international segments, please. Yeah. Thanks, Josh. Yeah, you know what? We are seeing a continued momentum in the marketplace. Pipeline is looking good. We mentioned in the prepared remarks that we're seeing increased RFP activity in the U.S. higher ed space. That is up significantly from 2021 to 2022. We continue to see good pipeline build in, frankly, 2022 and 2023 in the U.S. higher ed business. We feel really confident about where the pipeline is starting this year. Okay, great. On the new international channel partner program, how should we think about the contribution from that, you know, this year or in the coming years? Thank you. This is an important part of our overall long-term growth strategy, and we are continuing to drive international as the fastest-growing segment of our business. As you know, as we've talked about in previous calls, we really have put a focus on our direct sales teams. We've identified those countries that we believe are best suited for a direct sales engagement. We're still investing very heavily in those markets, as evidenced by, you know, the recent win with Australian Catholic University. We're seeing good momentum. The channel program allows us to address those markets that, you know, we looked at and said, "Okay, if we went in direct, they wouldn't necessarily break even in the first 12 months, but this is a much more efficient way to address those countries." It's going to expand our addressable market in the international space. The way to think about it, Josh, is that it really is a driver of growth for the next two-three years. We're getting really good feedback on the program, and we're just starting to sign up channel partners, and expect it to be, again, a something to drive that durable growth in our international markets over the next two-three years. Thank you. Next question. We have the line of Sterling Auty of JP Morgan. Your line is now open. You may ask your question. Hi, this is Drew. I'm for Sterling. Given that the K-12 district budget votes are happening over the coming months, do you have any preliminary sense of spending on Instructure solutions in the upcoming budget cycle? Yeah. Thanks for the question, Drew. We do. You know, we have a pipeline that we're managing. We feel very confident in the guidance that we've given you that the pipeline will support those numbers. As we mentioned, this is an area that's been going through digital transformation. COVID was really a catalyst and the starting point for that digital transformation. As particularly as we've amassed a portfolio more than just the LMS, but the assessment part of the business, and the impact products that we're adding, we have a lot of products that apply to this digital transformation. We feel very good about where we're sitting from a pipeline perspective for our K-12 business. Okay, great. Thank you. Thank you. Next question. We have the line of Fred Havemeyer of Macquarie. Your line is now open. You may ask your question. Hey, thank you, and congratulations on the quarter. I wanted to really dig into, you know, what Instructure is able to do at the moment to help address learning loss and specifically as it relates to the K-12 environment and MasteryConnect. You know, as you're looking out at, you know, the U.S. domestic K-12 marketplace, what appetite do you find schools have for more assessments capabilities, more insights, and essentially what MasteryConnect is able to deliver? You know, further, how are schools thinking about tackling the problems of learning loss that have accrued throughout and really continue to accrue throughout the stop-and-go learning cycles during the pandemic? Thank you. Okay. Thanks. Thanks, Fred. Good to hear from you. It's a great question. This is a big challenge for the K-12 system. It's, you know, there were funds specifically targeted within the ESSER stimulus funding to address learning loss. You've hit it on the head. The main tool that we have to help schools address learning loss is through all of our assessment solutions, both MasteryConnect as well as the Certica products that we acquired at the beginning of last year. Our approaches is a little bit different than traditionally has been done in assessment, which has been high stakes, end of year kind of testing. Whereas our solutions are really targeted at real-time feedback to the teachers on how students are doing against the standards, you know, where they should be in their educational journey. We announced the MasteryView products last year that really are, again, these lightweight, quick-hitting, psychometrically sound ways to test how students are doing along their journey rather than waiting to the end and seeing how they did. This is a big part of the overall learning assessment. Then, you know, with the LMS, we also have the ability, you know, again, teachers have a 360-degree view on how our students are doing, what they are teaching, and they're able to look at how they can adjust their teaching for students as they get that feedback from the assessment solutions. So a lot of good stuff that we provide in the classroom for the teachers to be able to get that real-time feedback on how students are doing. Okay. Thank you. You know, I wanted to ask- Okay, you just got disconnected. If you have a follow-up question, please, press star one on your telephone keypad. Okay, we have a question from Brent Thill of Jefferies. Your line is now open. You may ask your question. Good afternoon. I'm curious on higher ed, as colleges have come back into session, any change of behavior or any observations you have in some of these engagements? For K-12, I'm curious where you believe that over time the mix, you know, settles out as it relates to the overall mix of the business in terms of customers and revenue and any other observations on the K-12 side, just from a metric perspective, you could offer. Thanks. Yeah. From an engagement perspective, you specifically asked about U.S. higher ed. What we're seeing is utilization on our platform is at about the same level that it was during the pandemic. As we've gone back to more in person, the engagement still, right. What is being recognized is that this has become core infrastructure for delivering on teaching and learning, whether it's in person, fully remote or hybrid environment. It is the glue that they use to make sure that there's a seamless experience across each of those teaching methods. We see good engagement continued on the platform and higher than it was pre-pandemic, frankly. From K-12, you know, the reality is we have a really strong business in our U.S. higher ed. It's very sticky, very low churn. You know, we've never lost a fully deployed four-year higher education institution. That mix is gonna change very slowly. So we're just over 1/3 of our business right now is K-12. I don't expect that to change more than a few points over the next several years, again, because of the durability of that U.S. higher ed business that we're seeing. Great. Thanks. Thank you. We have now the line again of Mr. Fred Havemeyer of Macquarie. Your line is now open. You may ask your question. Hey, I'm back with my follow-up. I wanted to just ask about the competitive landscape. I know that, you know, you highlighted some competitive wins this quarter in the higher ed space, and there's certainly been, you know, quite a bit of activity there as well with, you know, some consolidation in the market. I wanted to ask, you know, as you're looking at the RFPs that are out there and as you're looking at the competitive landscape in higher ed, you know, how do you see things progressing? Do you see any sort of shift that is potentially favoring Canvas? Thank you. Yeah, it's a good question, Fred, and welcome back. We have you know the competitive situation is as it's been, although we're seeing. There was a dynamic during the pandemic where a lot of higher education institutions already had something in place. They kinda hunkered down and said, "We're just gonna get through this with what we have." We you know what they recognized was you know there's the open source or on-prem solutions just didn't scale and they didn't meet the demands. Now they're looking at you know it's time to re-platform and decide what we're gonna do for the next decade. As we're coming out of the kind of panic situation that we had in 2020, they're starting to open up and look for that next generation. That bodes very well for us from a competitive perspective as we have, you know, this we scaled up dramatically during the pandemic. We stayed up, whereas, you know, some of the open source, you know, like Moodle, fell down. Some of the legacy technologies out there just didn't scale. That's the primary driver that we see right now is looking for that digital transformation. What's gonna be the technology to take them into the next, you know, 10-20 years? Bodes really well for us. Our win rates, you know, are, you know, around 70%, so we continue to see high win rates in those opportunities. Thank you. I appreciate the context. Thank you. We have the next question comes from the line of Brian Peterson of Raymond James. Your line is now open. You may ask a question. Good evening, gentlemen. Thanks for taking the question. I want to follow up on K-12. I think there's been some debate on the rate of adoption there. I know you guys mentioned the funding backdrop, but I'm curious, where do you see the penetration of K-12 today? I'd also be curious, as you look at markets like assessments, where is that? Right? I know maybe that's hard to peg today, but like, I think we're trying to think about the incremental opportunity in K-12, so anything that you can share there would be really helpful. You know, in the K-12 space, we think we're still you know, the last time we did this study, it was about 40% penetrated with paid-for LMS. You know, I suspect when we get the latest data, it'll be more around 50% of the market that's penetrated with a paid-for LMS, and we still are the market share leader in paid-for. We're still seeing, you know, as districts put together their plans, as they figure out ways to use the stimulus funds, as they're looking at the digital transformation that's going on, there's still a lot of room for us, greenfield opportunity, in those districts that don't have a paid-for LMS yet. The penetration of the LMS is, you know, frankly, we don't know exactly on assessments, but I believe it's ahead of where the assessment penetration is, especially when it comes to these interim assessments that we're talking about and the automation of those processes. I think we're still early days from a use of an automated assessment management system in order to do these formative and interim assessments. We've still got a lot of runway there. Good to hear, Steve. Dale, maybe a follow-up for you. Just on the 800 customers or new customers, any rough sense on how those compare across the three buckets? I'd also be curious, you know, the 109% NRR. How do we think about that metric going forward? Thanks, guys. Sure. So we don't break down the customers, the growth customers in those different segments, but we're really pleased with the growth of customers and what we've been able to acquire during this past year. Let me transition over to your second question, Brian, on the 109 NRR. We're also really excited about that 109 number of our net revenue retention. It landed right where we expected it to be. It's really based upon that strong GRR that we have, that gross revenue retention that's been best in class at mid-90s. We add on top of that the annual growth rate with our price increases and then the cross-sell on top of that. It's just, we're really happy with it. What that number is not including, though, is the progress that we've made in our landing larger with our new logos. Steve mentioned this in his opening remarks that we are adding more products when we land with new logos than we did last year. That's something that's not captured within this NRR number, but it's also an expansion against all those customers that you opened your question with of adding 800 year-over-year. Thanks, Dale. Thank you. We have the next question comes from the line of Terry Tillman of Truist. Your line is now open. You may ask your question. Hey, good evening, Steve and Dale. Congrats from me as well. My first question is on the. You know, we've talked about assessments here, and y'all talked about momentum there, and I know there's a variety of SKUs that would fall under that whole kind of theme of assessment, but anything more you can share about just the size or the scale of that in relationship to the broader business? You know, we see your guidance for 2022, but is assessment something that, you know, is gonna grow at multiples? Or anything you can share about its relative growth rate? I had a follow-up. Yeah. So, you know, we don't break down between products where the, you know, where the revenue is broken down. You know, this is one of those areas where it is growing faster than the core business. We expect it to continue to grow faster than the core business. You know, we're really pleased with the sales motion. As you know, we've talked about in the past when Frank came in and he put into place some discipline around how we talk about the products, how we talk about the platform, we've seen some great uptake on those products. We feel good about that business and that will be a driver. It will continue to be a driver over and above the traditional or the core business growth rate. We've seen also an increase in deal size with those cross-sell in 2021 as well. A good driver for growth longer term for us, Terry. Yeah, that sounds good. Also, Steve, I'm excited to hear that you're excited about the uptick. I think you said significant RFP activity increase in U.S. higher ed. I mean, that's great to hear. What I'm curious about is any more color in terms of, you know, what the kinda composition is made of. Are there some really larger state schools, or is it kind of smaller private institutions? Or just what's the flavor of what some of the opportunities are looking like? You know, I know Dale gave the 12% ACR growth for the year. You know, depending on how this pipeline plays out and hopefully gets converted at a very high win rate, could that end up being one of the areas where there's conservatism because some of the business flows through in 2022? Should we think more of 2023? I think that was, like, five questions, so good luck with all of that. Thank you. Okay. Thanks, Terry. Just keeping me on my toes. Yes, I am excited about the RFP activity. As you know, as we've talked about with you before, 2020, 2021 was really kind of a little bit slow in the higher ed space from an RFP activity. We see good pipeline build for 2022 and 2023. You know, the breakdown is, it's across the board. You know, there are a number of large institutions that have been on, you know, the long-term contracts with some of our competitors that are coming up as well as, you know, just, I'd say, Terry, there's no real, you know, it's not trending towards one size of customer over the other, but we see it across the board. You know, as we look at that as a driver of growth, you know, we are, you know, we feel really good about the guidance. You know, we feel confident that we can hit that guidance that we've given you. You know, this is an area where a lot of these decisions are gonna be made over the next two years, and I think it's gonna be a driver of growth for the higher ed business for you know, the next two to three years. That's, I guess, that's how I characterize what we're seeing build in the pipeline, Terry. That's great. You actually answered all the questions. That's really nice. That's an A +. Thank you. Thank you. Again, if anyone would like to ask a question, you will need to press star one on your telephone keypad. Again, that will be star one on your telephone keypad. We have the next question comes from the line of Matt VanVliet of BTIG. Your line is now open. You may ask your question. Yeah, thanks for taking the question, guys. Nice job on the quarter. I guess I wanted to dig in a little bit more on the new channel strategy internationally. Can you help us maybe better understand who some of these channel partners are? You know, are they already selling in the ed tech space? Are they selling your competitors? Are they, you know, larger consulting organizations that just happen to be looking to break into the ed tech market? Any, I guess, additional details and sort of size and scope of some of the partners that you're looking at? Yeah. It's a good question. You know, the way that we've targeted the program is we want a presence in countries where we may not, you know, go all in on a direct sales team and the associated, you know, customer success and all that. We're looking for partners that have significant presence in country, have the investment, and they're big enough to be able to support our customers in the way that our customers are accustomed to, be able to provide the services surrounding those. In a lot of cases there, you know, we're targeting either, you know, some of the larger multinational kind of value-added distributors that have resellers in country. We're targeting consulting groups that already have presence within the edtech space. In fact, almost exclusively the partners that we are working with already have presence in edtech. So that's that really is the profile that we're looking for. Again, we're looking for scale. We're looking for a significant presence, local presence, and in many cases, partners that could span multiple countries for us. Okay. Then on the federal stimulus funding, you know, you mentioned a very low percentage has actually been kind of put to use to this point. Do you have much sort of line of sight into the timing of of when or some of those projects might come up that seem to be earmarked with the additional budget out there? Obviously, there's a timeline around when it needs to be spent per se, but I'm curious if those conversations have been very explicit in saying, you know, we're pulling forward project X because we now have a surplus in the budget. In most cases, you know, the dollars are allocated at the state level. So as we get down to the district level and, you know, the buyers of our technologies, they don't always know exactly was this from stimulus funds or from general, you know, state funds. All they know is they have this amount. So we don't have, you know, great visibility into, you know, whether they're using those funds specifically for our technology or not. But, you know, as we've talked about in the past, this is, you know, this money is earmarked to be committed by 2024. You know, that means you could sign a three-year deal in 2024, and the dollars are committed by the government to the state. We do expect that this is a, you know, this is a multiyear catalyst in this market for us. Okay, great. Thank you. Thank you. Next question we have from the line of Joe Vruwink of Baird. Your line is now open. You may ask your question. Great. Hi, everyone. This is actually Peter on for Joe tonight. I wanted to ask again about assessments. Clearly, the momentum has continued there. You guys keep talking positively about it. It also seems like there's other entities maybe moving into the assessment space. I wanted to ask, has the competitive environment changed or, you know, who are you seeing, if anyone in from a competitive perspective in these deals? Yeah. The competitive landscape hasn't necessarily changed. You know, there's always been players that have been in this space. It's the usual players that we've seen in there. Where we focus, Peter, in our sales engagement, our sales motion is around really the advantage that a teacher or a district can get in having a tightly integrated assessment and learning management system so that they can see, you know, they can have great visibility into what they're teaching, how they're teaching it, and get real-time feedback about how the students are then doing against those lesson plans that they're creating. Really our focus competitively is you know, better together. We can give you a lot more insights. We can give you a lot better insights by having these tight integrations between the assessment solutions and the learning management system. Again, not necessarily new players. We feel like our competitive positioning is much better than it's ever been as you know, Mitch and team have really created some tight integrations between the solutions that we have and that we acquired through Certica. Okay. Sounds good. I wanted to ask in the past couple quarters you've given directional growth rates for K-12, higher ed, international. Would you mind providing those? Also if you have anything to say on how that should look going into next year with the guidance? Thanks. You know, as we look at our guidance for next year, we feel really good about what we've guided to from a top-line growth. In general, we continue to expect our international business to grow the fastest of the three segments. We are super happy about our higher ed business and our K-12 business. We continue to see them growing. All of our segments growing kind of in the double digits plus space. The other piece I would add in the guidance is that we do expect, you know, our subscription and our services to grow slightly faster than the overall in the guidance that we've given you. Awesome. Thank you very much. Thank you. We have a question from the line of Stephen Sheldon of William Blair. Your line is now open. You may ask your question. Okay, thanks. Nice results and guidance here. I know a lot of K-12 school districts are dealing with issues related to teacher turnover and burnout. I guess, how do you think about Instructure's current ability to make teachers' lives easier with Canvas and some of the assessment capabilities you talked about? And is there even more that you could do to use your tech suite to reduce the burden teachers face as you think about your product development roadmap and the potential for M&A over the next few years? Yeah. It's a great question. It's a huge problem in K-12, as you know, rightfully pointed out there. There's a couple things that we do to help address that. The first off, you know, I met with one of our customers just about a month ago, and his feedback to me was, Canvas can make teaching cool again. You know, the fact that, you know, it's next generation, it eases a lot of the manual processes that a teacher has to go through, you know, so that they can focus on the exciting part of their job, which is inspiring and leading students and mentoring students. By having the systems in place, we take a lot of those manual processes away from the teachers. We also, by having that system of record in the classroom, we also help the district in that, you know, as we have turnover or we have absenteeism, for, you know, as we see, you know, Teachers that are out sick for a variety of reasons, that all the lesson plans, the content, it's all there, for the substitute or for whomever is taking over for that, for that teacher. Having that common infrastructure makes it much easier for them as they're trying to manage the workforce. We believe that areas, you know, from an M&A that you mentioned, you know, areas of engagement, around ways to help teachers assess the social emotional learning of the students. Anything we can do to help them better address the needs of their students and do it in an automated way is gonna make their lives easier, better, make it more fun to be a teacher. Anything we can do to help increase student engagement, you know, looking again both organically and inorganically is going to help in that realm as well. A good question. Got it. Yeah, thanks. That's really helpful. Just as a follow-up, sounds like you're planning to ramp R&D headcount again in 2022. Curious what you're seeing in terms of the hiring environment for tech talent and how much success, I guess, you've had on the hiring and retention side there. Yeah. You know, I wish I could say that we weren't facing the same labor challenges that everybody else is. It is a very competitive market out there. You know, we do have a couple of advantages in that, we have a really important mission. The fact that we, you know, we are doing, you know, we are addressing a lot of, really important, challenges that can help society or in helping educate the world's, students, helping teachers, become more effective in their ability to teach, helping bring together, you know, parents and teachers and students and administrators and allowing them to also learn together. That mission is a great, you know, is really helpful in us being able to attract and retain talent. In addition, you know, going public this year allowed us to now, you know, also have the additional ability to offer equity and other ways to attract and retain talent. We feel really good about our ability to hire. We were very successful in the second half of the year, in particular last year. We go into this year with more, a significant number more heads in R&D than we started last year. We'll continue to add to those. We feel good about our ability to hit the ramp that we've built into our investment plan. Good to hear. Thank you. Thank you, everyone. There are no more questions. Ladies and gentlemen, that concludes today's conference call. Thank you all for participating. You may now disconnect.