We just haven’t modeled those yet into the businesses or the guidance.
Stephen Sheldon: Got it. Makes a ton of sense. And maybe with this deal, you’re also moving a little beyond the scope of what you’ve done historically in the higher end software stack by getting into admissions, enrollment. So curious if you see more opportunities on that front to move into new areas? And just generally, has your thinking changed at all about how broad of a software platform you want to be in higher ed?
Steve Daly: Yes. It’s a question that I think you’ve asked this before as well. What I would say is, as we look at where the adjacencies are to our current business around teaching and learning, we’re looking for those areas where there is an overlap in the Venn diagram, if you will. So where we see that parts of what we’re doing in the classroom are very applicable to the things that maybe in new parts of the institution may be using. And this was one of those areas where it made a lot of sense for us to kind of combine the two organizations. Learn Platform, the last acquisition we did was very similar on the K-12 side, where we address some new buyers, but there’s still a lot of overlap with our existing users and our buyers.
So you can expect us to continue to look for opportunities just like this, where their close adjacencies open us up to new budgets, open us up to new experiences, new relationships. And yes, I do think it provides nice fertile ground for us to continue both organically and inorganically, expanding that platform.
Stephen Sheldon: Great to hear. Thanks.
Operator: Thank you. We’ll go next now to Josh Baer at Morgan Stanley.
Josh Baer: Great. Thank you for the question. Dale, it was great working with you and good luck ahead. One for Steve, I was hoping you could talk a bit about the process for finding the next CFO. What were some of the things that you were looking for? And ultimately, what led you to Peter? And then one for Peter, what attracted you most to Instructure and to this opportunity?
Steve Daly: Yes. Great. Thank you for asking that question, Josh. So this was a process that we took — it was a very deliberate process. We were looking — I had some conversations with Dale about what he wanted to do, when, where he wanted to do those things. And so, we approached it as we wanted to look for somebody that had great experience in the public markets. We were looking for somebody that has worked in models of companies that have had PE ownership, that know how to drive growth, that are very good at articulating growth strategies to the Street and being able to help our investors understand the levers within growth. And we took a while to do this. It was a fairly long process. We’ve engaged recruiters. We met with a lot of different people.
What really kind of sealed the deal for me with Peter was a good cultural fit. We felt like he would work well with the team. He could get very passionate about the mission. A long tenure working with the public markets. I really like the way that he approached his investors and the way that he helped them understand the key drivers of the model long term and explaining how those would affect our results going forward and felt like he brought a lot of good experience and detailed understanding of how a business like ours would work. So again, it was a very rigorous and pretty long process to find the right person. Peter, you want to share?
Peter Walker: Yes. Happy to jump in. So I’d say I was first attracted by the mission of Instructure. Always been extremely passionate about education and what that can do for people on a global basis. And so, that’s what brought me in. And then once I got interested, I have a pretty diligent process of first starting with how large is the TAM that the company operates in. How fast is that TAM growing. So as I learned that information about Instructure, I was really excited about the large TAM and significant growth rate there. Next, I look for a company who is number one or number two in the market. Clearly, Instructure is number one in the markets they play. Then I look at ownership, who owns the company. Found it very interesting that a great firm like [indiscernible] with the company, but also the company is public.
And then once I get through that, it really goes to the people and the culture. And that’s what sealed the deal for me from the first time I met with Steve and the rest of the management team, it was just a great and very natural fit from day one. So really excited about this opportunity and excited about all the value we’re going to create going forward.
Josh Baer: Great. Thank you very much
Operator: Thank you. We go next now to George Kurosawa at Citi.
George Kurosawa: Thanks for taking the question and for Steve, and great working to you over the years, Dale. Maybe to start with on the Parchment deal. You disclosed 15,000 customers. Maybe if you could give a little color on what does that footprint look like. And how much overlap is there with the existing customer base?
Steve Daly: Yes. We will — so as I look at the overall customer base, obviously, with our footprint in higher ed and Parchment’s leading market share in higher ed as well, there is some overlap within the customer base. We — the exciting part is that the relationship — we expand our relationships within those even when we are — when we have those joint customers. And so, we will kind of — we’ll disclose that as we get further closer to close. As we close this deal, we’ll be able to show you a little bit better where that overlap is. But just know that we feel good about the relationships that Parchment has, the reputation that they have with those customers is similar to the one that we feel that we have with our customers. And there’s a significant opportunity for us to share customer list and be able to expand our customer base on the Instructure Learning Platform.
