Earnings Release • Nov 3, 2022
Earnings Release
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Kahoot! Group
"I'm pleased to see we delivered well in the third quarter against our targets and the changing macro environment. Our solid commercial performance continued with double digit growth across all our customer categories, all-time high adjusted EBITDA, and our scalable operating platform delivering a strong growing operational cash flow.
We managed the high-season back-to-school volumes on a consistent quarter-over-quarter operating cost, demonstrating the leverage in our scalable business model, and increasingly effective unit economics and profitable growth. Marking a year since inclusion into Kahoot!, we also celebrate Clever progressing well against both strategic and financial ambitions. Equally important, the quarter saw us develop a powerful lineup of new offerings and solutions, that will support continued growth into 2023 and beyond.
Amidst more volatility in global markets, our multiple growth levers, including our unique product suite, diverse customer segments and scalable platform, provides resilience, and lays a healthy foundation for continued expansion in the quarters to come.
As the transition to digital learning in school, work and home continues, Kahoot!'s commitment to constant product innovation will prove to be the ultimate differentiator for sustainable and durable commercial success. We remain focused on executing our platform strategy by disciplined investments in our products and technology, leveraging our broad user base, strength of our partner ecosystem and global love brand, to drive growth and monetization."
Eilert Hanoa, CEO
months 2022, total revenue and other operating income grew \$48.8 million YoY to \$107.0 million, up 84%. The strengthening of the USD in the third quarter impacted the nominal revenue amount in the quarter.
"The third quarter displays key attributes of the Kahoot! Group business model - and we are pleased to see good performance against a strong comparison with peak pandemic in the latter part of last year. The quarter represents our 12th successive quarter of positive operating cash flow, and due to effective unit economics and a highly scalable platform we delivered a record-high \$16 million in cash flow from operations, as well as continued strong gross margin of 95% and an all-time high adjusted EBITDA of \$8 million and 22% margin.
A core strength for Kahoot! is the stamina to maintain momentum and constant development through major shifts in market conditions over time, delivering sustainable and profitable growth. We are confident our operating framework and cost base has the potential to yield even stronger efficiency and remain committed to continue nimble operations in the quarters to come. As we prepare for 2023 a key priority is to leverage our flexible set-up and organizational resources to deliver even better commercial results."
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), 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.
| USD in millions | Q3 2022 | Q3 2021 | YoY YTD 2022 YTD 2021 | YOY | FY 2021 ° | ||
|---|---|---|---|---|---|---|---|
| Total revenue and other operating income | 36.6 | 23.7 | 55 % | 107.0 | 58.2 | 84 de | 91.3 |
| Cost of sales " | 1.7 | 1.3 | 5.1 | 4 4 | 7.0 | ||
| Employee benefit expenses 4 | 15.6 | 8.7 | 46.0 | 21.4 | 35.2 | ||
| Other operating expenses 3 | 11.2 | 7.6 | 35.3 | 18.7 | 29.7 | ||
| Total operating expenses | 28.5 | 17.7 | 61 96 | 86.4 | 44.5 | ਰੇਖੇ ਕੇਂਦੇ | 72.0 |
| Adjusted EBITDA | 8.0 | 6.0 | 35 % | 20.6 | 13.8 | 50 % | 19.3 |
| Share based compensation expenses * | 7.5 | 28 | 17.7 | 6.7 | 155 | ||
| Payroll tax share based compensation | 0.7 | 14 | (3.8) | (4.5) | (7.6) | ||
| Acquisition transaction and listing cost | 3.3 | 0.2 | 6.3 | 6.6 | |||
| EBITDA | (0.2) | (1.6) | 6.6 | 5.3 | 4.7 | ||
| Invoiced revenue | 53.9 | 27.8 | ਰੇਜੇ ਕੋर | 125.1 | 675 | 85 તેર |
107.2 |
| ARR end of period | 149.0 | 124.0 | 20 % | 149.0 | 124.0 | 20 % | 133.0 |
| Adjusted EBITDA margin | 22.0 % | 25.2 % | 19.3 % | 23.7 % | 21.1 % | ||
| Cash flow from operating activities | 16.1 | 7.4 | 11796 | 25.4 | 17.8 | 43 નેર | 31.3 |
| Cash and cash equivalents end of period | 86.8 | 206.4 | 86.8 | 206.4 | 107.8 |
1 Cost of sales are third-party sales and distribution cost.
2 Employee benefit expenses include regular operational payroll and employee related benefit expenses. Calculated share-based payment expenses and related payroll taxes for the Group's share option program are not included.
3 Other operating expenses not including acquisition-related expenses and listing cost preparations.
4 Share based compensation expenses increase based on framework authorized by the AGM 27 May 2022
5 Q3 2022 adjusted for \$0.1 million cash outflow for expenses to, social security cost on share-based payments
6 Includes Clever from 1 September 2021.
Demand across our customer categories, including Clever, remained solid in the third quarter, with the back to school season progressing broadly in line with our expectations. As noted in our second quarter report, we continued to see normalization in free social use of the Kahoot! platform, particularly in single-player usage vs live multiplayer sessions, compared to last year's pandemic-induced levels. More importantly, we continue to see commercial momentum driven by growth in engagement, conversion and sales to professional users, especially corporations.
During the third quarter, we continued our longer track record of adding quarterly net new subscriptions, with minimal customer acquisition cost due to our viral model. Professional subscriptions grew organically 26% year over year, which is a solid performance. In the third quarter, net revenue retention among our top 50 key corporate and school/district accounts remained at 125% in the last twelve months. Our sales pipeline for larger team and organization deals is also strong and growing steadily, providing us with a solid foundation for growth in the coming quarters and beyond, as we look to expand within organizations through our product led growth strategy.
In our third quarter only approx 2.5% of our active users were paid subscribers, hence the commercial potential in Kahoot!'s vast user-base remains very significant. With our large user ecosystem, we have a considerable opportunity to further convert from free to premium subscriptions.
After significant investments into our product suite, we are increasingly running a highly diversified business, with potential to grow across K12 and higher-ed in school, across the corporate and enterprise sector, for personal usage at home, as well as in the emerging area of content. Different user segments represent different commercial potential. Hence, we are focused on adjusting our business models for each area to better yield commercial return.
Looking ahead, we remain focused on executing our multi product roadmap and leveraging our scalable business model to drive profitable growth in the coming quarters. This includes Marketplace, which represents a large untapped monetization opportunity on our platform. While we recognize that there are near term macro related uncertainties, our scalable and lean business model provides us with the resilience, flexibility, and the ability to adjust to a changing environment, while maintaining solid performance that enable us to continue to invest in our long-term strategy.
Digital learning continues to grow and is only becoming more important. The replatforming of education and learning in both work, school and home is set to continue over the longhaul, and the market for learning and audience engagement will continue to develop as global application of digital learning tools increase at pace, across industries and geographies.
self-service capabilities for schools and new ways for teachers to share their personalized digital classrooms with each other. Clever was recognized as #6 on Learn Platform's EdTech Top 40 Fall 2022 Report, and #3 on the Lightspeed System's 2022 Edtech App Report of most used edtech products. Clever also launched its service in Canada, which is the first new market in Clever's internationalization expansion.
Used in 97% of Fortune 500 companies, Kahoot! at Work's offerings help customers engage employees and build company culture by delivering unique training and communication experiences, across entire organizations. Kahoot! 360 is a powerful audience engagement offering, including Kahoot!'s bespoke enterprise offering, Kahoot! 360 Spirit, while Motimate is a complete, modern training solution and Actimo is an employee engagement app with particular focus on non-desk workers. Kahoot! at Work occupies a bespoke space at the intersection of employee engagement, corporate learning, training and culture building. The Kahoot! at Work business area stands optimally positioned to respond to multiple workplace scenarios we have seen evolve thanks to a diverse portfolio of solutions and plans that deliver the elements to support thriving corporate cultures now, and in the future of work.
Educators across the world make learning awesome with Kahoot! by tapping into the vast, inherent potential for playful education experiences to unlock every student's learning potential. Kahoot! offerings are used by millions of teachers, hundreds of millions of students and thousands of schools, campuses, universities and districts. Kahoot!'s EDU offering is empowering teachers with a variation of interactive teaching and assessment tools, and features such as Team mode - designed to increase collaboration skills through in-class and virtual learning settings, with Courses bolstering the already considerable opportunities to maximize student engagement though diverse content formats. DragonBox offers school children, families and all learners engaging ways to learn math while Whiteboard empowers teachers to engage students in class and virtually with an interactive whiteboard tool for instant sharing and feedback.
Born of the desire to save valuable time in the classroom and afford more space for innovative teaching and learning, Clever is a single sign-on portal for teachers and students, and one of the most widely used digital learning platforms with 70% of all U.S. K-12 Schools, and approx. 24m monthly active students and 1.4m monthly active teachers using the platform. The ongoing focus for Clever is to continue building on and scaling its vast network by providing solutions for both schools and edtech app partners that create a digital classroom to love. Clever and Kahoot! continue to extract synergies across K-12 schools in the U.S. and to realize the vast potential for Clever to leverage Kahoot!'s global viral footprint to deliver its platform to educators globally.
Spearheaded by the Kahoot!+ offering, encompassing award-winning Kahoot! DragonBox and Poio apps, as well as language learning app, Drops, Kahoot!'s ad-free platform and apps enables families, students and children to connect and learn in an engaging way at home, either through self-study or family fun. Over 10m are using Kahoot! at Home with over 100 million games played by families. Kahoot! at Home also offers Kahoot!+ Study and Kahoot! Kids. The former seeks to make study more fun, impactful and effective, leveraging Kahoot!'s position as a trusted learning tool for hundreds of millions of participating students, while the latter expands Kahoot!'s demographic relevance with a bespoke, pedagogically robust product.
Kahoot! Academy is a global content platform, community and marketplace which enables anyone to access premium learning content and high-quality learning resources produced by verified publishers and content creators. With Kahoot! marketplace, creators from all over the world can offer their learning resources for sale directly on the Kahoot! platform, either through one-time purchases or through Kahoot!+ AccessPass, Kahoot!'s first content subscription service. By growing its global digital marketplace, Kahoot!'s platform opens itself up to be harnessed by the burgeoning global creator community to monetize their content and expertise, as well as provide a unique offering for those searching for high-quality, readyto-use learning resources. Made possible by the singular viral growth and scale of the Kahoot! brand and platform, these developments serve to strategically position Kahoot! to reach a captive and vast global market of educators and learners.
The revised guidance for the remainder of 2022 reflects the current macro conditions.
For the fourth quarter 2022, invoiced revenue is expected in the range between \$50-55m, representing 26-38% YoY growth, with solid cash flow from operations.
For the full year, the updated guidance includes invoiced revenues in the range of \$175-180m with recognized revenues of ~\$147m and adjusted cash flow from operations exceeding \$40m.
The Kahoot! Group's ambition is to exceed \$500m in invoiced revenues in 2025, representing approx. 40% annual invoiced revenue growth, whereof approx. 1/3 from Kahoot! at Work, 1/3 from Kahoot! at School including Clever, and 1/3 from Kahoot! at Home & Study including Kahoot! Academy Marketplace.
The operational cost base is over the period expected to be converged to approx. 60% of invoiced revenue which indicates approx. 40% cash conversion of invoiced revenue in 2025. The financial ambitions outlined do not depend on any material acquisitions in the period.
As previously communicated the Company is exploring the opportunity for a secondary listing. After concluding its initial assessment, the Company has decided that it will continue to explore preparations for a potential secondary listing in the U.S. The Company will update the market in line with applicable regulatory requirements.
The information contained in this report has not been audited and may be subject to change.
Please see Kahoot! News on kahoot.com/news to stay up to date on company news and updates.
Eilert Hanoa, CEO Phone: +47 928 32 905 Email: [email protected]
Ken Østreng, CFO Phone: +47 911 51 686 Email: [email protected]
Kahoot! is on a mission to make learning awesome! We want to empower everyone, including children, students, and employees to unlock their full learning potential. Our learning platform makes it easy for any individual or corporation to create, share, and host learning sessions that drive compelling engagement. Launched in 2013, Kahoot!'s vision is to build the leading learning platform in the world. Since launch, Kahoot! has hosted hundreds of millions of learning sessions with over 8 billion participants (non-unique) in more than 200 countries and regions. The Kahoot! Group includes 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 is headquartered in Oslo, Norway with offices in the US, the UK, France, Finland, Estonia, Denmark, Spain and Poland. Kahoot! is listed on the Oslo Stock Exchange under the ticker KAHOT. Let's play!
| (Numbers in thousands) | Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 | |||||
|---|---|---|---|---|---|---|
| Paid subscriptions * | 202 270 360 675 760 760 933 1,015 1,110 1,170 1,210 1,250 | |||||
| Work | 83 | |||||
| School | 91 | 425 | ||||
| Home & Study | 28 |
1 Including acquired units from time of acquisition. Actimo were included with 125K in Q4 2020, Drops with 100K in Q4 2020, Whiteboard with 7K in Q1 2021 and Motimate with 130K in Q2 2021.
Overview of active accounts, hosted sessions, and participants (non-unique) on the Kahoot! platform 2 last twelve months per end of quarter.
| (LTM numbers in millions) Q1'20 | 02'20 | 03'20 | 04'20 | Q1'21 | 02'21 | 03'21 | Q4'21 | Q1'22 | 02'22 | Q3'22 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Active accounts | 0.3 | 0.4 | 0.5 | 0.5 | 0.6 | 0.5 | 0.6 | 0.7 | 0.8 | 0.8 | 0.9 |
| Hosted sessions | 2.7 | 2.7 | 3.1 | 3.9 | 4.6 | 4.6 | 4.9 | 5.8 | 6.4 | 6.4 | 6.4 |
| Participants | 18.8 | 20.5 | 23.1 | 27.8 | 31.5 | 32.3 | 35.1 | 43.4 | 47.8 | 47.7 | 46.8 |
| YoY change in millions | |||||||||||
| Active accounts | 0.0 | 0.0 | 0.1 | 0.1 | 0.2 | 0.1 | 0.1 | 0.2 | 0.3 | 03 | 0.3 |
| Hosted sessions | -0.1 | -0.1 | 0.5 | 1.2 | 19 | 19 | 18 | 19 | 1.8 | 18 | 1.4 |
| Participants | -0.9 | 1.1 | 4.2 | 93 | 12.7 | 11.8 | 12.0 | 15.6 | 16.3 | 15.5 | 11.7 |
| (LTM numbers in millions) Q1'20 | Q2'20 | Q3'20 | Q4'20 | Q1'21 | 02'21 | 03'21 | Q4'21 | Q1'22 | 02'22 | Q3'22 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Active accounts | 6.0 | 6.4 | 6.9 | 7.6 | 8.3 | 8.7 | 9.1 | 9.3 | 9.3 | 8.8 | 8.7 |
| Hosted sessions | 79.0 | 68.7 | 76.9 | ਰੇਖੋ ਤੇ | 112 3 | 129.6 | 134.0 | 131.4 | 125.9 | 119.7 | 116.8 |
| Participants | 877.2 | 8119 | 879.9 1,005.5 1,134.9 1,341.2 1,381.5 | 1,406.6 1,372.3 | 1,321.3 1,300.4 | ||||||
| YoY change in millions | |||||||||||
| Active accounts | 1.1 | 1.3 | 15 | 19 | 2.3 | 23 | 22 | 1.7 | 0.9 | 0.1 | -0.4 |
| Hosted sessions | 7.9 | -5.8 | 0.7 | 16.8 | 33.3 | 60.9 | 57.2 | 37.1 | 13.6 | -10.0 | -17.3 |
| Participants | 129.3 | 36.6 | 93.8 | 180.6 | 257.7 | 529.3 | 501.6 | 401.1 | 237.4 | -198 | -81.1 |
| (LTM numbers in millions) Q1'20 | Q2'20 | 03'20 - - | Q4'20 | Q1'21 | 02'21 | Q3'21 | Q4'21 | Q1'22 | 02'22 | Q3"22 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Active accounts | 10.4 | 13.5 | 14.2 | 16.7 | 19.3 | 19.7 | 20.6 | 20.9 | 19.8 | 18.4 | 17.2 |
| Hosted sessions | 135.9 | 138.8 | 143.8 | 152.2 | 162.0 | 169.3 | 175.3 | 173.2 | 164.7 | 162.0 | 158.7 |
| Participants | 408.8 | 412.7 | 436.1 | 458.9 | 452.9 | 481.1 | 510.5 | 526.5 | 496.3 | 474.8 | 452.7 |
| YoY change in millions | |||||||||||
| Active accounts | 2.2 | 4.8 | 5.1 | 7.0 / | 89 | 6.3 | 6.5 | 4.2 | 0.6 | -1.4 | -3.4 |
| Hosted sessions | 27.3 | 193 | 194 | 21.5 | 26.1 | 30.4 | 31.5 | 21.0 | 27 | -7.3 | -16.6 |
| Participants | 119.0 | 98.5 | 115.1 | 114.3 | 44.1 | 68.4 | 74.4 | 67.5 | 43.4 / | -6.4 | -57.7 |
2 All user data from the Kahoot! platform not including other services in the Kahoot! Group.
3 Category is based on account registration data.
| (LTM numbers in millions) | 01'20 | Q2'20 | Q3.20 | Q4'20 | Q1'21 | Q2'21 | 03'21 | Q4'21 | 01 22 | Q2'22 | Q3'22 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Active accounts | 16.8 | 20.3 | 21.5 | 24.8 | 28.2 | 29.0 | 30.3 | 30.9 | 29.9 | 28.0 | 26.7 |
| USA and Canada | 8.6 | ਰੇ 5 | ale | 11.2 | 12.2 | 12.8 | 13.1 | 13.4 | 12.7 | 11.6 | 11.2 |
| Europe | 5.1 | 6.5 | 6.7 | 74 | 8.9 | 8.8 | ਰੇ ਤੇ | 9.8 | 9.6 | ਰੇ ਪੈ | 9.3 |
| Asia Pacific | 1.6 | 2.1 | 24 | 2.6 | 2.8 | 27 | 3.2 | 3.3 | 3.3 | 3.3 | 29 |
| Latin America | 0.9 | 14 | 1.8 | 24 | 2.9 | 3.2 | 3.2 | 3.1 | 2.9 | 2.5 | 2.2 |
| Africa, Middle East, India | 0.5 | 0.8 | 0.9 | 1.2 | 1.4 | 1.4 | 14 | 1.4 | 1.3 | 1.2 | 1.1 |
| Hosted sessions | 217.6 | 210.2 | 223.8 | 250.5 | 278.9 | 303.5 | 314.2 | 310.5 | 297.1 | 288.1 | 281.8 |
| USA and Canada | 110.3 | 97.8 | 101.8 | 115.6 | 129.3 | 146.3 | 149.1 | 142.0 | 131.9 | 123.6 | 120.7 |
| Europe | 64 5 | 64.3 | 66.2 | 719 | 80.3 | 84 5 | 88.4 | 91.7 | 90.8 | 93.5 | 96.8 |
| Asia Pacific | 22.0 | 23.3 | 24.6 | 25.5 | 26.4 | 26.8 | 30.7 | 32.6 | 33.2 | 33.3 | 30.3 |
| Latin America | 12.7 | 14.7 | 18.6 | 22.6 | 26.6 | 29.7 | 29.7 | 28.8 | 26.4 | 23.6 | 21.6 |
| Africa, Middle East, India | 8.0 | 10.0 | 125 | 14.8 | 16.4 | 16.2 | 16.3 | 15.4 | 14.8 | 14.1 | 12.4 |
| Participants (non-unique) | 1,305 | 1,245 | 1,339 | 1,492 | 1.619 | 1,855 | 1,927 | 1,976 | 1,916 | 1,844 | 1,800 |
| USA and Canada | 742 | 655 | 683 | 760 | 818 | 973 | 1,005 | 1,012 | ਰੇਦਰੇ | ਰੇਹਰੇ | 883 |
| Europe | 344 | 347 | 360 | 392 | 473 | 472 | ਧਰਤ | 525 | 519 | 526 | 537 |
| Asia Pacific | 126 | 128 | 143 | 152 | 160 | 171 | 191 | 207 | 211 | 213 | 201 |
| Latin America | ਦਰੇ | 73 | ਰੇਰੇ | 124 | 148 | 168 | 168 | 164 | 152 | 134 | 123 |
| Africa. Middle East. India | 34 | 42 | 54 | 65 | ਦਰੇ | 70 | 70 | 68 | 66 | 62 | 55 |
| USD in thousands | Note | Q3 2022 | Q3 2021 | YTD 2022 YTD 2021 | FY 2021 | |
|---|---|---|---|---|---|---|
| Revenue from contracts with customers | 2 | 36,553 | 23,650 | 106,650 | 57,994 | 91,016 |
| Other operating income | 2 | 349 | 249 | 249 | ||
| Total revenue and other operating income | 36,553 | 23,650 | 106,999 | 58,243 | 91,265 | |
| Cost of sales | 1,663 | 1,348 | 5,101 | 4,400 | 7,029 | |
| Employee benefit expenses | 23,811 | 12,928 | 59,851 | 23,587 | 43,235 | |
| Other operating expenses | 11,229 | 10,940 | 35,472 | 24,985 | 36,351 | |
| Operating profit/(loss) before deprec. and amortiz. (EBITDA) | (150) | (1,566) | 6,575 | 5,271 | 4,650 | |
| Amortization of intangible assets | 3,341 | 2,433 | 10,234 | 5,602 | 8,848 | |
| Depreciation | 530 | 364 | 1,443 | 892 | 1,357 | |
| Operating profit/(loss) (EBIT) | (4,021) | (4,363) | (5,102) | (1,223) | (5,555) | |
| Financial income | 227 | 173 | 351 | 498 | 432 | |
| Financial expenses | (107) | (47) | (386) | (142) | (205) | |
| Net change in fair value of financial instruments | (326) | 3,031 | 3,733 | 1,710 | 2,594 | |
| Net foreign exchange gains (losses) | (3,408) | (1,332) | (9,159) | (1,622) | (984) | |
| Net financial income (expenses) | (3,614) | 1,825 | (5,461) | ਪੰਧੇ ਪੰਜਾਬ | 1,837 | |
| Profit/(loss) before income tax | (7,635) | (2,538) | (10,563) | (779) | (3,718) | |
| Income tax | (446) | (473) | (1,383) | (1,067) | (1,838) | |
| Profit/(loss) for the period | (7,189) | (2,065) | (9,180) | 288 | (1,880) | |
| Profit/(loss) for the period attributable to: | ||||||
| Equity holders of Kahoot! ASA | (7,189) | (2,065) | (9,180) | 238 | (1,880) | |
| Earnings per share in USD | ||||||
| Basic earnings per share | (0.01) | (0.00) | (0.02) | 0.00 | (0.00) | |
| Diluted earnings per share | (0.01) | (0.00) | (0.02) | 0.00 | (0.00) |
| FY 2021 | ||||
|---|---|---|---|---|
| (7,189) | (2,065) | (9,180) | 283 | (1,880) |
| (5,263) | (3,474) | (11,943) | (7,154) | (8,751) |
| (12,452) | (5,539) | (21,123) | (6,866) | (10,631) |
| (12,452) | (5,539) | (21,123) | (6,866) | (10,631) |
| Q3 2022 Q3 2021 | YTD 2022 YTD 2021 |
| USD in thousands | Note 30.09.2022 31.12.2021 | ||
|---|---|---|---|
| ASSETS | |||
| Goodwill | 479,047 | 494.430 | |
| Intangible assets | 157,687 | 173,284 | |
| Property, plant and equipment | 925 | 633 | |
| Right-of-use assets | 4,253 | 2,928 | |
| Total non-current assets | 641,912 | 671,275 | |
| Trade receivables | 22,440 | 11,764 | |
| Other current assets | 4,084 | 5,304 | |
| Cash and cash equivalents | 86,831 | 107,765 | |
| Total current assets | 113,355 | 124,833 | |
| TOTAL ASSETS | 755,267 | 796,108 | |
| EQUITY AND LIABILITIES | |||
| Share capital | 3 | 5,737 | 5,707 |
| Share premium | 661,947 | 651,581 | |
| Share-based payments reserves | 29,430 | 16,963 | |
| Foreign currency translation reserves | (22,671) | (10,728) | |
| Accumulated deficit | (91,188) | (82,008) | |
| Total equity | 583,255 | 581,515 | |
| Lease liabilities | 2,895 | 2,044 | |
| Deferred tax liability | 43,950 | 46,288 | |
| Other non-current liabilities | 9,623 | 40,565 | |
| Total non-current liabilities | 56,468 | 88,897 | |
| Lease liabilities | 1,552 | 1,007 | |
| Current tax liabilities | 38 | 4 | |
| Trade payables | 4,656 | 5,359 | |
| Contract liabilities (deferred revenue) | 73,887 | 60,772 | |
| Other current liabilities | 35,411 | 58,554 | |
| Total current liabilities | 115,544 | 125,696 | |
| Total liabilities | 172,012 | 214,593 | |
| TOTAL EQUITY AND LIABILITIES | 755,267 | 796,108 |
| Foreign | ||||||
|---|---|---|---|---|---|---|
| Share-based | currency | |||||
| Share | Share | payment | translation Accumulated | Total | ||
| USD in thousands | capital | premium | reserves | reserves | deficit | equity |
| Balance at 1 January 2021 | 5,228 | 357,383 | 5.542 | (1,977) | (80,128) | 286,048 |
| Profit/(loss) for the period | (1,880) | (1,880) | ||||
| Currency translation differences | (8,751) | (8,751) | ||||
| Total comprehensive income/(loss) for the period | (8,751) | (1,880) | (10,631) | |||
| Issuance of shares | 479 | 302,700 | 303,179 | |||
| Transaction costs on equity issues | (8,502) | (8,502) | ||||
| Share option program | 11,421 | 11,421 | ||||
| Balance at 31 December 2021 | 5,707 | 651,581 | 16,963 | (10,728) | (82,008) | 581,515 |
| Profit/(loss) for the period | (9,180) | (9,180) | ||||
| Currency translation differences | (11,943) | (11,943) | ||||
| Total comprehensive income/(loss) for the period | (11,943) | (9,180) | (21,123) | |||
| Issuance of shares | 30 | 10.413 | 10,443 | |||
| Transaction costs on equity issues | (47) | (47) | ||||
| Share option program | 12,467 | 12,467 | ||||
| Balance at 30 September 2022 | 5,737 | 661,947 | 29,430 | (22,671) | (91,188) | 583,255 |
| USD in thousands | Share capital |
Share premium |
Share-based payment reserves |
Foreign currency reserves |
translation Accumulated deficit |
Total equity |
|---|---|---|---|---|---|---|
| Balance at 1 January 2021 | 5,228 | 357,383 | 5,542 | (1,977) | (80,128) | 286,048 |
| Profit/(loss) for the period | 288 | 288 | ||||
| Currency translation differences | (7,154) | (7,154) | ||||
| Total comprehensive income/(loss) for the period | (7,154) | 288 | (6,866) | |||
| ssuance of shares | 441 | 278,230 | 278,671 | |||
| Transaction costs on equity issues | (8,387) | (8,387) | ||||
| Share option program | 6,779 | 6,779 | ||||
| Balance at 30 September 2021 | 5,669 | 627,226 | 12,321 | (9,131) | (79,840) | 556,245 |
| USD in thousands | Q3 2022 | Q3 2021 | YTD 2022 YTD 2021 | FY 2021 | |
|---|---|---|---|---|---|
| Cash flows from operating activities | |||||
| Profit/(loss) before income tax | (7,635) | (2,538) | (10,563) | (779) | (3,718) |
| Adjustments for | |||||
| Depreciation and amortization | 3,871 | 2,797 | 11,677 | 6,494 | 10,205 |
| Share-based payments expense | 6,265 | 2,870 | 12,467 | 6,779 | 11,421 |
| Change in trade receivables | (8,027) | (270) | (11,399) | (2,221) | (781) |
| Change in contract liabilities | 15,275 | 3,687 | 14,887 | 8,972 | 15,757 |
| Change in trade payables | (287) | 258 | (533) | 1,283 | 2,752 |
| Change in other current assets and other liabilities | 6,416 | 5,151 | 8,107 | 53 | (14,965) |
| Taxes paid | (13) | (6) | (13) | (6) | (6) |
| Interest received | 227 | 173 | 351 | 488 | 432 |
| Financial expenses | (107) | (47) | (386) | (142) | (205) |
| Net cash flow from operating activities | 15,985 | 12,075 | 24,595 | 20,931 | 20,892 |
| Cash flows from investing activities | |||||
| Payment for acquisition of subsidiary, net of cash acquired + | (3,196) | (245,185) | (39,017) | (264,575) | (364,145) |
| Payment for intangible assets | (129) | (561) | (710) | (561) | (562) |
| Payment for property, plant and equipment | (239) | (73) | (184) | (156) | (216) |
| Net cash from investing activities | (3,564) | (245,819) | (40,511) | (265,292) | (364,923) |
| Cash flows from financing activities | |||||
| Proceeds from issuance of ordinary shares | (1) | 819 | (1) | 204,856 | 205,077 |
| Transaction costs on issuance of ordinary shares | (4) | (48) | (8,166) | (8,502) | |
| Repayments of lease liabilities | (416) | (258) | (905) | (701) | (aal) |
| Paid interest on lease liabilities | (44) | (29) | (ਰੇਵ) | (90) | (89) |
| Net cash from financing activities | (465) | 532 | (1,048) | 195,899 | 195,495 |
| Net increase/(decrease) in cash and cash equivalents | 11,956 | (233,212) | (16,964) | (48,462) | (148,536) |
| Cash and cash equivalents beginning of the period | 76,587 | 440,487 | 107,765 | 256,120 | 256,120 |
| Effects of exchange rate changes on cash and cash equiv. | (1,711) | (872) | (3,970) | (1,255) | 181 |
| Cash and cash equivalents as of end of period | 86,831 | 206,403 | 86,831 | 206,403 | 107,765 |
1Cash outflow for acquisitions of subsidiaries relates to contingent and deferred consideration liabilities paid in the first three quarters 2022 for acquisitions in 2020 and 2021. For further information please see note 4 in the 2021 Annual Report.
Kahoot! ASA (the Company or Kahoot!), the parent company of the Kahoot! Group (the Group) is a public limited liability company incorporated and domiciled in Norway, with its head office in Fridtjof Nansens plass 7, 0160 Oslo. The Company is listed on Oslo Stock Exchange has the ticker "KAHOT".
The condensed consolidated interim financial statements consist of Kahoot! ASA and its subsidiaries. As a result of rounding differences, numbers or percentages may not add up to the total.
These interim condensed consolidated financial statements for the nine months ending 30 September 2022, have been prepared in accordance with IAS 34 Interim Financial Reporting, and authorized for issue by the board of directors on 2 November 2022. The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual financial statements for 2021.
The accounting policies applied in the preparation of the interim consolidated financial statements are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 31 December 2021.
The Kahoot! Group has one segment: software to make learning awesome. The market for Kahoot!'s software is global. The chief decision maker will therefore follow up revenue and profitability on a global basis. This is consistent with the internal reporting submitted to the chief operating decision maker responsible for allocating resources and assessing performance as well as making strategic decisions.
| USD in thousands | Q3 2022 Q3 2021 YTD 2022 YTD 2021 | FY 2021 | |||
|---|---|---|---|---|---|
| Subscription revenue - recognized over time | 36,336 | 23,530 | 105,970 | 57,572 | 90,081 |
| Other revenue - recognized at point in time | 217 | 120 | 680 | 422 | ਰੇਤੇ ਦੇ |
| Total revenue from contracts with customers | 36,553 | 23,650 | 106,650 | 57,994 | 91.016 |
| Other operating income | 349 | 249 | 249 | ||
| Total revenue and other operating income | 36,553 23,650 | 106,999 58,243 | 91.265 |
Kahoot! ASA only has one class of shares, and all shares have the same voting rights. The shareholders are entitled to receive dividends as and when declared and are entitled to one vote per share at General Meetings of the Company.
| Number of Share capital Share capital | |||
|---|---|---|---|
| shares | (NOK) | (USD) | |
| Balance at 1 January 2022 | 486,581,479 | 48,658,148 | 5,707,355 |
| Issued during the year | 2,671,345 | 267,135 | 30.137 |
| Balance at 30 September 2022 | 489,252,824 | 48,925,282 | 5,737,491 |
The share capital is fully paid and has a par value of NOK 0.10.
At the Annual General Meeting of Kahoot! ASA on 27 May 2022, the Board of Directors were authorized to increase the share capital by up to NOK 9 million through the issuance of up to 90 million new shares in connection with (i) mergers, acquisitions, equity raises and (ii) exercise of share options. The Board of Directors were authorized to acquire treasury shares with a total nominal value of up to NOK 1.5 million.
For information relating to the Group's Employee Option and RSU Plan, please see the Guidelines for salary and other remuneration approved by the Annual General meeting on 27 May 2022 and note 17 in the 2021 Annual Report.
The table below shows the development in the Company's share capital in 2022.
| Change in | New | Nominal | Subscription | |||
|---|---|---|---|---|---|---|
| Date of | share capital share capital value Number of total price per share | |||||
| registration | Type of change | (NOK) | (NOK) | (NOK) | issued shares | (NOK) |
| 01 Mar 22 | Share capital increase | 256,967.10 | 48,915,115.00 | 0.10 | 489,151,150 | 1) |
| 10 Jun 22 | Share capital increase | 6.249.10 | 48,921,364.10 | 0.10 | 489,213,641 | 2) |
| 14 Sep 22 | Share capital increase | 3,918.30 | 48,925,282.40 | 0.10 | 489.252.824 | 3) |
1) Share issue with NOK subscription price: 64.77/48.08/47.06/38.24/36.42/34.55/32.34/31.63
2) Share issue with NOK subscription price: 64.77/48.08/47.06/31.63/0.10
3) Share issue with NOK subscription price: 64.77/48.08/47.06/31.63
| More than 39,000 shareholders per 30 September 2022 Shares (m) | ల్లిక్ | |
|---|---|---|
| JPMorgan Chase Bank | 44 3 | 9.0 % |
| Glitrafjord AS | 41.2 | 8.4 % |
| J.P. Morgan Securities Plc | 29.5 | 6.0 % |
| Datum AS | 28.0 | 5.7 % |
| Creandum III LP | 20.0 | 4.1 % |
| Folketrygdfondet | 14.1 | 29% |
| Citigroup Global Markets Inc. | 135 | 28% |
| State Street Bank and Trust Comp | 12.7 | 2.6 % |
| The Northern Trust Comp, London Br | 10.4 | 21% |
| State Street Bank and Trust Comp | 8.2 | 1.7 % |
| Versvik Invest AS | 80 | 1.6 % |
| Newbrott AS | 7.6 | 1.6 % |
| Datum Invest AS | 6.6 | 1.3 % |
| JPMorgan Chase Bank, N.A., London | 6.5 | 1.3 % |
| Citibank, N.A. | 6.2 | 1.3 % |
| Nordnet Bank AB | ਦੇ ਰੇ | 1.2 % |
| Gamification AS | 5.2 | 1.1 % |
| J.P. Morgan SE | 52 | 1.1 % |
| Skandinaviska Enskilda Banken AB | 47 | 1.0 % |
| J.P. Morgan SE | ਕ ਦ | 0.9 % |
| Other | 206.9 | 42.3 % |
| Total outstanding shares | 489.3 | 100.0 % |
| Outstanding share options / RSUs | 41.1 | |
| Total no. of shares (fully diluted) | 530.3 |
Investors with shareholding exceeding 5%: General Atlantic, Glitrafjord (CEO, Eilert Hanoa) and Datum Group.
In the nine months of 2022, the Group acquired services for \$193K from Glitrafjord AS, a company 100% owned by the CEO.
No events that have significantly affected or may significantly affect the operations of the Group have occurred after 30 September 2022.
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