Kahoot! ASA

Investor Presentation • Feb 16, 2023

Kahoot! ASA

Q4 2022 Presentation 16 February 2023

Disclaimer

The following presentation is being made only to, and is only directed at, persons to whom such presentation may lawfully be communicated ('relevant persons'). Any person who is not a relevant person should not act or rely on this presentation or any of its contents. Information in the following presentation relating to the price at which relevant investments have been bought or sold in the past or the yield on such investments cannot be relied upon as a guide to the future performance of such investments.

This presentation does not constitute an offering of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire securities in Kahoot! ASA. The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law, and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about, and observe, such restrictions.

This presentation contains statements regarding the future in connection with the Kahoot! Group's growth initiatives, outlook, strategies and objectives. All statements regarding the future are subject to inherent risks and uncertainties, and many factors can lead to actual profits and developments deviating substantially from what has been expressed or implied in such statements. The comments in the presentation are related to Kahoot!'s development in 2022 compared to the same quarter of 2021, unless otherwise stated.

Driven by our values and our purpose, we are on a mission to improve lifelong learning by building the leading learning and engagement platform in the world

Kahoot! Group

Kahoot! is on a mission to make learning awesome!

Kahoot! is a global learning platform company that wants to empower everyone, including children, students, and employees, to unlock their full learning potential. Kahoot! Group consists of the Kahoot! learning and engagement platform, Clever, the leading US K-12 EdTech learning platform, together with the learning apps DragonBox, Poio, Drops, Actimo, Motimate, and Whiteboard.fi.

The Kahoot! Group has more than 500 K!rew members globally

AT A GLANCE KAHOOT! KEY NUMBERS

~268m

hosted learning sessions LTM

8m+ educators on the

~26m active accounts

in 2022

9b non-unique

participants since launch in 2013

100m+ user generated

kahoots!

kahoot! platform

200+

countries and regions with kahoot! users

Scalable software platform for learning and engagement

INVOICED REVENUE

Strategic growth levers

ENGAGING PRODUCTS

distinct and versatile software solutions with signature user experience, continuous product innovation value-add across all offerings

LEADING BRAND

leverage global love brand for learning and engagement across school, corporates and home

SCALABLE PLATFORM

commercial leverage across vast platform and ecosystem of users, partners and content, proven network effects

PROFITABLE GROWTH

capital light, cost effective and viral distribution model, fueling R&D and growth initiatives

THE K!REW

A purpose-led, value-driven, diverse and industry experienced team with passion to drive growth and best user-experience

Kahoot! ranked top 10 Coolest brands 2022 by Gen Z in North America and Western Europe

Source: ypulse.com/coolest-brands/

Highlights Q4 2022

PAID SUBSCRIPTIONS

1.3^M

60K new paid subscriptions across group QoQ, 40K core Kahoot!

LTM NET RETENTION (USD)

+120%

top 50 key Enterprise and School/District accounts

Solid growth and profitability

10% invoiced revenue growth in Q4 and 21% (pro forma) for the full year 2022 Q4 operating cash flow of \$17.3m, up 28% YoY. For the full year \$42.7m, up 37% YoY.

Clever solid growth in usage and topline

75% of all U.S. K-12 schools now on the Clever platform, continuing to grow Clever exceeded \$64m for the full year, up 29% YoY on a pro-forma basis

Continued subscription growth

Net new 60K paid subscriptions, totalling 1.3m paid subscriptions, up 18% YoY Professional users net new 40K from Kahoot Work and School, Actimo and Motimate

Highly scalable Kahoot! core platform

For the full year, Kahoot! core platform exceeded \$75m in invoiced revenues, up 20% YoY

New features to drive frequency of use and engagement

Launched integrations and features for all segments, student-led game experiences, to enable increased learning value, usage and engagement for ~26m active accounts

Powering engaging learning for all

Engaging corporate training and communication solutions for all employees

Kahoot! used in 97% of Fortune 500 Companies

40m+ participants on professional sessions LTM

Learning platform powered by engagement and learning tools for teachers and students

AT WORK AT SCHOOL AT HOME

8m+ teachers on the platform LTM

~75%+ of U.S. K12 schools use Clever

Commercial Education Consumer & Experience

Social learning and global community and marketplace for creators and learners

100m+ games played by families LTM

300m+ participants on content from Kahoot! Academy

New and existing customers in Q4

Kahoot! strategic focus areas

ENGAGING LEARNING

Continuous additions to be the most engaging platform

CORPORATE LEARNING

A premium offering to professional users

DIGITAL PLATFORM FOR SCHOOLS

One platform and app store for all teaching needs

PREMIUM CONTENT OFFERING

Premium, ready-made content for every learning need

Priorities 2023

LEVERAGE THE SCALABLE PLATFORM AND LEAN OPERATING MODEL, continue double-digit profitable growth

EVOLVE THE KAHOOT! PLATFORM FOR DEEPER AND BROADER LEARNING,

increasing share of wallet in engagement and learning

CONTINUE INTEGRATION OF ACQUIRED OFFERINGS,

and improve optimization of all commercial levers

DEVELOP AND COMMERCIALIZE CLEVER'S PREMIUM OFFERINGS,

improving profitability with continued growth

UNLOCK NEW REVENUE STREAMS FROM MARKETPLACE,

extracting more value from partnerships ecosystem and new commercial services

DEPLOYMENT OF GROUP RESOURCES TO INNOVATION,

continuous development of better solutions for all user groups and learning contexts

Q4 Financials Ken Østreng, CFO

Continued profitable growth

Continued scalable growth

Expanding profitability

Solid cash flow generation and disciplined capital allocation

Continued profitable growth

Proven scalable business model

development following the scalable business model with marginal Capex

¹ Adjusted for special operating items. Special operating items are material expenses and other material transactions of either a non-recurring nature or special in nature compared to ordinary operational

revenue growth and prudent cost development

income or expenses and include adjustments for share based compensation expenses and related payroll taxes, acquisition related expenses, and listing cost preparations.

² Cash flow from operations minus capex excluding payments for acquisitions (~\$0.2m in 2020, ~\$0.8m in 2021 and ~\$1.5m in 2022).

41

Kahoot! Group operating run-rate

Scalable operating model

Four quarter operating run rate visualizes the scalability in the Kahoot! operating model

• Operating model leverage with continued modest QoQ growth of the operational cost base
• Low customer acquisition cost through conversion of existing free users on the platform to paid subscribers
• Scalable platform supporting all customer categories globally, with infrastructure cost for both free and paid users included in the cost base
• Capital light business model with minimal capex required to support scale of the operations

Q4 2022 financial highlights

Continued YoY growth

• Billing seasonality though the year impacted by backto-school season and regular business seasonality

Q1'22 Q2'22 Q3'22 Q4'22 Q4'21

• QoQ revenue growth following recognition of billed prepaid annual subscriptions

• Continued QoQ adjusted EBITDA improvement and margin expansion

• Free cash flow from operations following billing seasonality

¹ Adjusted for special operating items. Special operating items are material expenses and other material transactions of either a non-recurring nature or special in nature compared to ordinary operational income or expenses and include adjustments for share based compensation expenses and related payroll taxes, acquisition related expenses, and listing cost preparations. ² Cash flow from operations minus capex excluding payments for acquisitions (~\$0.1m in Q4'21, ~\$0.4m in Q1'22, ~\$0.4m in Q2'22, ~\$0.4m in Q3'22 and ~\$0.4m in Q4'22).

Billing and revenue development

Growth driven by increased number of paid subscriptions

			39.7	43.9
Billings		17.5
(USDm)	5.3
	Q4'19	Q4'20	Q4'21	Q4'22
			33.0	39.0
Recognized revenue
(USDm)		11.3
	2.8
	Q4'19	Q4'20	Q4'21	Q4'22
Paid subscriptions1	171	675	1,110	1,310
Commercial	72	245	490	580
Education	75	230	365	435
Consumer & Experience	24	200	255	295
Revenue per geography2
USA & Canada	46%	47%	53%	65%
Europe	36%	38%	34%	25%

Billings

• Q4 growth in billings over the past 3 years driven by organic paid subscription growth, and the acquisition of Clever fully included from Q4 2021

Recognized revenue

• YoY revenue development following recognition of billed prepaid annual subscriptions

Paid subscriptions

• Conversion of free to paid users driving growth in number of paid subscriptions across all customer categories

Geographic distribution

• USA and Canada representing the major revenue region with 65% of total billings for 2022

Adjusted EBITDA and cash flow development

Scalable operating model with leverage

				9.6
Adjusted EBITDA1 (USDm)			5.5
		0.1
	-1.9 Q4'19	Q4'20	Q4'21	Q4'22 16.9
			13.3
Free cash flow1,2 (USDm)		6.9
	1.3
	Q4'19	Q4'20	Q4'21	Q4'22
Recognized revenue	2.8	11.3	33.0	39.0
Cost of sales	0.3	1.3	2.6	1.9
Employee benefit exp.	2.5	5.7	13.9	16.5
Other operating exp.	1.9	4.1	11.1	10.9
Total operating expenses	4.7	11.2	27.6	29.3
Adjusted EBITDA	-1.9	0.1	5.5	9.6
SBC expenses	0.1	2.0	8.8	6.3
SBC payroll tax	2.8	9.4	-3.1	0.4
Transaction cost	0.0	1.0	0.3	0.0
Reported EBITDA	-4.8	-12.2	-0.6	3.0

Adjusted EBITDA

• Continued YoY improvement and increased margin deriving from the scalable operating model
• Q4 2022 up 76% YoY, adjusted EBITDA margin of 25% vs. 17% in Q4 2021

Free cash flow

• Cash flow from operations almost translates into free cash flow due to business model with minimal capex required to support scale of the operations

Total operating expenses

• Modest Q4 2022 YoY growth of 6% in operating expenses from Q4 2021 (the first full quarter including Clever)

Share-based compensation (SBC) expenses

• Calculated share-based compensation expenses will decline through 2023 in particular in the second half of the year based on vesting schedule of current outstanding instruments
• Calculated payroll tax fluctuates with share price development

¹ Adjusted for special operating items. Special operating items are material expenses and other material transactions of either a non-recurring nature or special in nature compared to ordinary operational income or expenses and include adjustments for share based compensation expenses and related payroll taxes, acquisition related expenses, and listing cost preparations. ² Cash flow from operations minus capex excluding payments for acquisitions (~\$0.1m in Q4'19, ~\$0.1m in Q4'20, ~\$0.1m in Q4'21 and ~\$0.4m in Q4'22).

Cash position development

Strong cash flow from operations with marginal capex

Cash and cash equivalents bridge from Q3 2022 to Q4 2022 (USDm) 86.8 104.8 Net cash from financing activities Q3 2022 +0.4 Net cash from investing activities +17.3 -2.6 Net cash from operating activities +2.9 Exchange rate effect on cash Q4 2022

Cash and cash equivalents bridge from Q4 2021 to Q4 2022

Q4 2022 development

• All time high cash flow from operations in a single quarter of \$17.3m, up 28% YoY
• Net cash flow from investments of -\$2.6m mainly due to deferred payment for the Clever acquisition in-line with agreed payment schedule
• Marginal capital expenditures
• Cash from financing activities of \$0.4m deriving
• Positive exchange rate effect on cash position due to shift in USD exchange rates in the quarter

Full year 2022 development

• Adjusted cash flow from operations of \$42.7m (adjusted for \$0.8m in cash effects from sharebased payments), up 37% YoY
• Net cash flow from investments of -\$43.1m driven by payment for deferred and contingent consideration for prior years' acquisitions.
• Marginal capital expenditures

Outlook

Full-year 2023, Q1 2023 and long-term ambition

Going forward, the Kahoot! Group will provide guidance as outlined below

Full-year 2023	Full year continued double digit year-on-year growth in billings delivering recognized revenues exceeding \$170m with modest annual growth in operational cost base, and adjusted EBITDA exceeding 40% year-on-year growth with solid free cash flow.
Q1 2023	Continued year-on-year growth in billings delivering recognized revenues of \$39-40m with modest quarterly increase in operational cost base resulting in year-on-year improvement in adjusted EBITDA and free cash flow
Long-term ambition	Reiterating the long-term growth potential and scalability ambition, targeting ~40% cash conversion in 2025 (as percentage of billings). Further information will be provided on the Investor Day in the second quarter of 2023

Kahoot! Group investment highlights

Appendix

Free-to-paid conversion development

Professional accounts¹ on the Kahoot! platform excl. acquisitions

¹Work and School active accounts LTM and paid subscriptions on the Kahoot! platform excluding acquisitions.

Engagement and usage development

Figures only for Kahoot! accounts (excluding acquired entities)

LTM figures (in millions)	2019	2020	2021	2022	3-year CAGR
Active accounts	16	25	31	26	18%
o/w Work	0.4	0.5	0.7	0.9	35%
o/w School	5.7	7.6	9.3	8.7	15%
o/w Home & Study	9.8	16.7	20.9	16.2	19%
Hosted sessions	211	250	310	268	8%
Participants (non-unique)	1,188	1,492	1,976	1,678	12%
Avg. participants per hosted session	5.6	6.0	6.4	6.3	4%
o/w Work	6.9	7.1	7.4	7.5	3%
o/w School	10.6	10.7	10.7	11.1	1%
o/w Home & Study	2.6	3.0	3.0	2.5	-1%

• Active accounts on the Kahoot! platform (over the last twelve months) were 25.8 million, with approx. 268 million hosted sessions, and a total of approx. 1.7 billion participants (non-unique) globally. Active accounts growing annually at 18%, hosted sessions at 8% and participants at 12% last three years
• Increasing number of active K! Work accounts, while K! School and K! Home & Study are normalizing post the pandemic
• Solid engagement through the period with average number of participants stable to slightly up over the last three years

Key financial figures development overview

USDm	Q4'22	Q3'22	Q2'22	Q1'22	Q4'21	Q3'21	Q2'21	Q1'21	Q4'20	Q3'20	Q2'20	Q1'20
Billings	43.9	53.9	37.2	34.0	39.7	27.8	20.6	19.1	17.5	11.6	9.6	6.5
Absolute growth YoY	4.2	26.1	16.6	14.9	22.2	16.2	11.0	12.6	12.2	8.2	7.3	4.5
% Growth YoY	10%	94%	81%	78%	126%	139%	114%	195%	230%	241%	317%	222%
Absolute growth QoQ	-10.0	16.6	3.2	-5.7	11.9	7.2	1.5	1.6	5.9	2.0	3.1	1.1
% Growth QoQ	-18%	45%	9%	-14%	43%	35%	8%	9%	50%	21%	49%	21%
ARR	156	149	143	138	133	124	75	69	60	32	25	18
Revenue and operating income	39.0	36.6	36.1	34.4	33.0	23.7	18.4	16.2	11.3	9.0	5.2	3.8
Cost of sales1	1.9	1.7	1.7	1.8	2.6	1.3	1.7	1.3	1.3	1.4	0.7	0.4
Employee benefit expenses2	16.5	15.6	14.7	15.6	13.9	8.7	6.5	6.2	5.7	3.2	2.5	2.9
Other operating expenses3	10.9	11.2	12.8	11.3	11.1	7.6	6.1	5.0	4.1	2.3	2.3	1.9
Total operating cost	29.3	28.5	29.2	28.7	27.6	17.7	14.2	12.5	11.2	6.9	5.4	5.2
Adjusted EBITDA	9.6	8.0	6.9	5.7	5.5	6.0	4.2	3.7	0.1	2.2	-0.3	-1.3
As % of revenue	25%	22%	19%	17%	17%	25%	23%	23%	1%	24%	-5%	-35%
Net cash flow from operations4	17.3	16.1	5.2	4.2	13.4	7.4	5.0	5.4	7.0	5.2	3.9	1.1
As % of revenue	44%	44%	14%	12%	41%	31%	27%	34%	62%	58%	76%	28%
Cash and cash equivalents	105	87	77	77	108	206	440	254	256	73	73	34
Employee full time equivalents	462	459	443	430	422	415	244	204	182	127	128	120

• Continued quarterly YoY invoiced revenue (billings) growth and QoQ revenue growth

• Carefully managing the operational cost base development based on of the scalable business model with increased leverage; low customer acquisition cost and infrastructure cost for both free and paid users included in existing cost base
• QoQ adjusted EBITDA margin improvement through 2022, Q4 adjusted EBITDA up 76% YoY. Continued solid net cash flow from operations⁴.

¹ Cost of sales only include direct third-party sales and distribution cost. ² Not including calculated share-based payment expenses and related payroll taxes for the Group's share option program. ³ Not including acquisition-related expenses and listing cost preparations. ⁴ Adjusted for cash outflow for acquisition and listing cost, and cash effects related to share-based payment.

Alternative performance measures

In order to enhance the understanding of the Kahoot! Group's performance, the Group presents certain measures and ratios considered as alternative performance measures (APMs) as defined by the European Securities and Markets Authority, and these should not be viewed as substitutes for any IFRS financial measures. The APMs includes Invoiced Revenue, Monthly Recurring Revenue (MRR), Annual Recurring Revenue (ARR), Gross margin, EBITDA, adjusted EBITDA, adjusted cash flow from operations, and equity ratio. These APMs are presented as the Group considers them to be important supplemental measures to understand the overall picture of revenue and profit generation in the Group's operating activities.

Description of alternative performance measures:

• Invoiced Revenue is defined as the amount invoiced to customers in the relevant period.
• Monthly Recurring Revenue (MRR) is defined as the revenue the Group expects to receive on a monthly basis from customers.
• Annual Recurring Revenue or (ARR) is defined as MRR for the applicable month multiplied by twelve.
• Gross margin is defined as total revenue deducted for cost of sales divided by total revenue.
• EBITDA is defined as the profit/(loss) for the year before net financial income (expenses), income tax, depreciation, and amortization.
• Adjusted EBITDA is defined as EBITDA adjusted for special operating items. Special operating items are material expenses and other material transactions of either a non-recurring nature or special in nature compared to ordinary operational income or expenses and include adjustments for share-based compensation expenses and related payroll taxes, acquisition-related expenses, and listing cost preparations.
• Adjusted cash flow from operating activities is defined as cash flow from operating activities adjusted for cash outflow for acquisition and listing cost and cash effects related to share-based payment.
• Equity ratio is defined as total equity divided by total assets.

kahoot.com/investor