Kahoot! ASA

Investor Presentation • Aug 11, 2022

Make learning awesome

Q2 2022 Presentation 11 August 2022

Making learning

Awesome

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

Eilert Hanoa, CEO

Kahoot! surpassed 8 billion cumulative participants on the platform (non -unique) since launch in 2013

3

Evolving from quiz to software platform for learning and engagement

Kahoot! Making Learning Awesome

Driven by its mission to make learning awesome, and powered by its global brand and viral model, Kahoot! is optimally positioned at the intersection of learning and audience engagement needs across diverse demographics and application verticals, including education, business and the global creator economy

CORPORATE LEARNING AND ENGAGEMENT	CLASSROOM ENGAGEMENT AND LEARNING	DIGITAL LEARNING PLATFORM FOR SCHOOLS AND DISTRICTS	LEARNING WITH FAMILY AND FRIENDS	CONTENT MARKETPLACE
Kahoot! used in 97% of Fortune 500	~9m teachers on the platform LTM	~70%+ of U.S. K12 schools use Clever	100m+ games played by families LTM	40m+ participants/month

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

FINANCIAL HIGHLIGHTS Q2 2022

Q2 BUSINESS UPDATE

In the quarter, we launched several new exciting and value-enhancing features ahead of the important back-to-school and work season, demonstrating our continued focus on enhancing the customer experience and making learning more awesome and engaging across all our verticals.

Strong demand continued

With Kahoot platform adding more quarterly net new paid subscribers than a year ago. Demand across our business areas has remained high in the second quarter, with June being the strongest sales month to date, and we have seen the momentum continue into the third quarter.

Continued commercial improvement

With continued conversion and growth among professional users on our platform. During the quarter we recorded a solid growth in the number of larger deals, including the largest deal ever in the Work segment.

Solid performance from Clever

With several wins, strategically noteworthy extensive multiyear agreement with Houghton Mifflin Harcourt, a leading provider of K–12 core curriculum, supplemental and intervention solutions. Clever also kicked off its international expansion with market entry into Canada as well as launched several value enhancing product improvements for future revenue growth.

NEW & EXISTING CUSTOMERS MAKING LEARNING AWESOME IN Q2 2022

Priorities 2022

MAXIMIZE THE VALUE & STRENGTH OF THE KAHOOT! OFFERINGS

through finalizing the integration of the Kahoot!, Motimate and Actimo organisations, and strengthening all the products

CONTINUE TO IMPROVE COMMERCIAL EFFORTS

while maintaining discipline on cost management, to secure sustainable, profitable growth

FURTHER SCALE AND DEVELOP KAHOOT! MARKETPLACE

and launch new commercial services to monetize content from premium partners and verified educators

DEPLOY GROUP RESOURCES TO CONTINUED INNOVATION

and development of our products and solutions, for all user groups and learning contexts

JOINT AMBITIONS FOR THE '22 BACK-TO-SCHOOL SEASON

as well as expansion of Clever offerings into first international markets, and leverage new commercial services to Clever network

Q2 FINANCIALS

Ken Østreng, CFO

KAHOOT! GROUP FINANCIALS Q2 2022

96% YOY GROWTH IN TOTAL REVENUE

81%

YOY GROWTH IN INVOICED REVENUE

YOY GROWTH IN ADJUSTED EBITDA

ALL TIME HIGH REVENUE OF \$36.1M

up 96% YoY, and YTD total revenue of \$70.4m up 104% YoY

ARR (ANNUAL RECURRING REVENUE) OF \$142.5M, UP 90% YOY

whereof Clever contributed with approx. \$49m from its U.S. ecosystem partners

INVOICED REVENUE (BILLINGS) REACHED \$37.2M

up 81% YoY, including Clever, which contributed \$13m in the quarter. Excluding Clever, invoiced revenue in the second quarter grew \$3.6m YoY to \$24.2m, up 18% YoY. YTD invoiced revenue grew \$31.6 million YoY to \$71.2 million, up 80%.

ADJUSTED EBITDA OF \$6.9M

(excluding share-based compensation expenses and related payroll taxes, acquisition related expenses and listing cost), up 65% YoY. YTD adjusted EBITDA grew \$4.8 million YoY to \$12.6 million, up 61%.

KAHOOT! GROUP FINANCIALS Q2 2022

1,210K PAID SUBSCRIPTIONS REACHED

across all services, up 30% YoY, representing an organic increase in the quarter of 40K, whereof 25K on the Kahoot! platform.

Per the end of Q2, Kahoot! at Work reached approx. 530K paid subscriptions, Kahoot! at School reached approx. 410K paid subscriptions and Kahoot! at Home & Study reached approx. 270K paid subscriptions

CASH FLOW FROM OPERATIONS OF \$5.2M

(excluding payment of listing preparations and acquisition cost, and cash effects related to share-based compensation), and \$9.4 million YTD.

CASH AND CASH EQUIVALENTS TOTALED \$76.6M

as of 30 June 2022, the Group has no interest-bearing debt

CONTINUED STRONG USAGE ON THE KAHOOT! PLATFORM POST PANDEMIC

with 53% YoY growth for the Work category and a total of 28m active accounts last twelve months including school and personal users (home)

30%

YOY GROWTH IN PAID SUBSCRIPTIONS

14%

Q2 CASH FLOW MARGIN FROM OPERATIONS OF OPERATING REVENUE

53%

YOY GROWTH LTM IN WORK ACTIVE ACCOUNTS - KAHOOT! PLATFORM

KAHOOT! GROUP FINANCIALS Q2 2022

Continued strong YoY growth in both revenues and adjusted EBITDA

• Second quarter all time high for both recognized revenue and adjusted EBITDA
• For the first half year 2022, invoiced revenue grew \$31.6 million YoY to \$71.2 million, up 80%. The Kahoot platform represented 50% of the revenues, a YoY growth of approx. 30%
• Adjusted EBITDA (excluding share-based compensation expenses and related payroll taxes, acquisition related expenses and listing cost) for the first half year 2022 grew \$4.8 million YoY to \$12.6 million, up 61%

KAHOOT! GROUP GROWTH MOMENTUM

• Reached 1,210K paid subscriptions across all services by the end of H1 2022, up 30% YoY, representing an organic increase from Q1 2022 of 40K, whereof 25K on the Kahoot! platform
• Per Q2 2022, Kahoot! at Work reached 530K paid subscriptions, Kahoot! at School reached 410K paid subscriptions and Kahoot! at Home & Study reached 270K paid subscriptions

1) Paid subscriptions is defined as total number of users on paid subscription per the end of the period, including new units from the time of acquisition, not including Clever 2) Conversion to paid subscriptions in all categories from customers in more than 150 countries, includes \$22.5m from Clever in H1 2022

KAHOOT! SUBSCRIPTION DEVELOPMENT

Continued growth in number of paid subscriptions on the core Kahoot! platform and increased conversion ratio of free to paid users

1) Paid subscriptions defined as total number of users on paid subscription on the core Kahoot! platform (not including acquired units) per the end of the period 2) Number of users with a paid Kahoot! subscription (not including acquired units) in percentage of all active accounts on the Kahoot! platform last twelve months 2) Number of professional users (Work and School category) with a paid Kahoot! subscription (not including acquired units) in percentage of active accounts within the Work and School category on the Kahoot! platform last twelve months

KAHOOT! GROUP OPERATING RUN RATE

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

• Operating model leverage with 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

* Not including share-based payment expenses and related payroll taxes for the Group's share option program, acquisition-related expenses and listing cost preparations

FULL YEAR 2022 OUTLOOK

The Kahoot! Group reiterates the ambition of \$190m in invoiced revenues for 2022, with recognized revenues of \$155m and adjusted cash flow from operations of approx. 35% of recognized revenue

	Reported Q2 2022	Guidance Q3 2022	Reported FY 2021	Guidance FY 2022
Recognized revenue YoY growth	\$36.1m 96%	>\$37m ~56%	\$91.3m 211%	~\$155m ~70%
Invoiced revenue (billings) YoY growth	\$37.2m 81%	>\$54m ~94%	\$107.2m 137%	~\$190m ~77%
Gross margin 2)	95%		92%
Adjusted EBITDA margin 3)	19 %		21%
Capex	\$0.4m	~\$0.5m	\$0.6m	~\$2.0m
Adjusted cash flow from operations 3)	\$5.2m		\$31.3m	~\$55m

1) Clever's invoicing seasonality in 2021 was approx. ⅓ in the first half and ⅔ in the second half of the year. For 2022 the invoicing growth will be driven by the billing cycle for "back to school" season in the second half of the year

2) Gross margin only reflects direct third-party sales and distribution cost

3) Not including share-based payment expenses and related payroll taxes for the Group's share option program, and acquisition-related expenses and listing cost preparations

• The Kahoot! Group's annual revenue cycle is influenced by natural seasonality and market dynamics of key business areas, with the main driver being the back-to-school season for Kahoot! and for Clever 1) in the second half of the year
• For the third quarter 2022, invoiced revenue is expected to exceed \$54m, representing approx. 94% YoY growth, with solid cash flow from operations

KAHOOT! GROUP AMBITION 2022-2025

INVOICED REVENUE (in millions USD)

~\$500m

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

APPROX. 40% CASH CONVERSION OF INVOICED REVENUE IN 2025

The operational cost base2) 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

1) Reported invoiced revenue was \$107m and included invoiced revenue from Clever for the four-month period from September till December 2021 2) The operational cost base does not include depreciation and amortization, and is 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 expenses and include adjustments for share based compensation expenses and related payroll taxes, acquisition-related expenses, and listing cost preparations.

LONG-TERM GROWTH PLAN

Majority of revenue to come from Kahoot! platform, across all current business areas, with strongest revenue contribution in the mid-term expected from Work and School, including Clever

~40%

annual invoiced revenue growth CAGR

~40%

operational cash conversion

~10% annual growth in FTEs

KAHOOT! GROUP INVESTMENT HIGHLIGHTS

Q2 Financial Appendix

KAHOOT! PLATFORM DEVELOPMENT

Continued strong post pandemic user metrics on the Kahoot! platform with 28 million active accounts LTM, 288 million hosted sessions and 1,844 million participants (non-unique) globally, and 173K YoY growth in core Kahoot! paid subscriptions.

1) Paid subscriptions is defined as total number of users on paid subscription on the core Kahoot! platform (not including acquired units) per the end of the period 2) Active accounts, hosted sessions and participating players (non-unique) on the Kahoot! platform last twelve months

KEY FINANCIAL FIGURES DEVELOPMENT

	Q2'22	Q1'22	Q4'21	Q3'21	Q2'21	Q1'21	Q4'20	Q3'20	Q2'20
Invoiced revenue	37.2	34.0	39.7	27.8	20.6	19.1	17.5	11.6	9.6
Invoiced revenue growth YoY	16.6	14.9	22.2	16.2	11.0	12.6	12.2	8.2	7.3
Invoiced revenue growth YoY %	81 %	78 %	126 %	139 %	114 %	195 %	230 %	241 %	317 %
Invoiced revenue growth QoQ	3.2	-5.7	11.9	7.2	1.5	1.6	5.9	2.0	3.1
Invoiced revenue growth QoQ %	9%	-14 %	43 %	35 %	8%	9%	50 %	21 %	49 %
ARR	142.5	138	133	124	75	ਦਰ	60	32	25
Revenue and operating income	36.1	34.4	33.0	23.7	18.4	16.2	11.3	9.0	5.2
Cost of sales	1.7	1.8	2.6	1.3	1.7	1.3	1.3	1.4	0.7
Employee benefit expenses	14.7	15.6	13.9	8.7	6.5	6.2	5.7	3.2	2.5
Other operating expenses	12.8	11.3	11.1	7.6	6.1	5.0	4.1	2.3	2.3
Total operating cost	29.2	28.7	27.6	17.7	14.2	12.5	11.2	6.9	5.4
Adjusted EBITDA	6.9	5.7	5.5	6.0	4.2	3.7	0.1	2.2	-0.3
Adjusted EBITDA margin	19 %	17 %	17 %	25 %	23 %	23 %	1 %	24 %	-5 %
Net cash flow from operations	5.2	4.2	13.4	7.4	5.0	5.4	7.0	5.2	3.9
Cash flow from oper. in % of revenue	14 %	12 %	41 %	31 %	27 %	34 %	62 %	58 %	76 %
Cash and cash equivalents	77	77	108	206	440	254	256	73	73
Employee full time equivalents	443	430	422	415	244	204	182	127	128

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

• Continued strong quarterly YoY invoiced revenue growth
• Recurring revenue business model growing ARR to more than \$142m by the end of Q2 2022 whereof Clever contributed with approx. \$49m
• Scalable business model with increased leverage; Infrastructure cost for both free and paid users included in existing cost base
• Continued modest QoQ growth in the operational cost base
• Continued YoY growth for adjusted EBITDA, Q2 up 65% YoY
• Continued solid net cash flow from operations 4)

CONDENSED PROFIT AND LOSS STATEMENT

	Q2 2022	Q2 2021	H1 2022	H1 2021	FY 2021 4
Total revenue and other operating income	36.1	18.4	70.4	34.6	91.3
Cost of sales 1	1.7	1.7	3.4	3.1	7.0
Employee benefit expenses -	14.7	6.5	30.4	12.7	35.2
Other operating expenses 3	12.8	6.1	24.0	11.0	29.7
Total operating expenses	29.2	14.2	57.8	26.8	72.0
Adjusted EBITDA	6.9	4.2	12.6	7.8	19.3
Adjusted EBITDA margin	19 %	23 %	18 %	23 %	21 %
Share based compensation expenses	4.6	1.8	10.2	3.9	15.5
Payroll tax share based compensation	(1.4)	(7.3)	(4.5)	(5.9)	(7.6)
Acquisition transaction and listing cost	0.0	1.6	0.2	3.0	6.6
Reported EBITDA	3.7	8.0	6.7	6.8	4.7

1) Cost of sales are direct third-party sales and distribution cost

2) Calculated share-based payment expenses and related payroll taxes for the Group's share option program are not included

3) Acquisition-related expenses and listing cost preparations are not included

4) Includes Clever from 1 September 2021

• Continued strong YoY revenue growth in Q2 of 96%, up \$17.8m to \$36.1m
• Operational payroll and related benefit expenses ² were \$14.7m in Q2, up \$8.2m YoY attributable to increased number of employees through acquired companies and organic growth
• Total operating expenses 2,3 of \$29.2m in Q2, up \$14.9m YoY, impacted by consolidation effect of acquired companies. Modest QoQ increase of approx. \$0.5m
• Adjusted EBITDA for Q2 of \$6.9m, up 65% YoY

CONDENSED BALANCE STATEMENT

	30.06.2022	31.12.2021
Goodwill	485.3	494.4
Intangible assets	163.1	173.3
Property, plant and equipment	0.8	0.6
Right-of-use assets	4.9	2.9
Total non-current assets	654.1	671.3
Trade receivables	14.6	11.8
Other current assets	5.2	5.3
Cash and cash equivalents	76.6	107.8
Total current assets	96.4	124.8
Total assets	750.5	796.1
Total equity	589.2	581-5
Lease liabilities	3.4	2.0
Deferred tax liability	44.8	46.3
Other non-current liabilities	11.9	40.6
Total non-current liabilities	60.1	88.9
Lease liabilities	1.7	1.0
Trade payables	5.0	5.4
Contract liabilities (deferred revenue)	59.3	60.8
Other current liabilities	35.2	58.6
Total current liabilities	101.1	125.7
Total equity and liabilities	750.5	796.1

• Total assets decreased in the first half year 2022 by \$45.6m to \$750.5m, primarily related to amortization and foreign exchange currency effects relating to intangible assets from acquisitions as well as settlement of contingent and deferred consideration liabilities arising from prior year's acquisitions
• Total liabilities decreased during the first half year 2022 by \$53.3 million to \$161.3 million. The decrease is primarily related to settlement of contingent and deferred consideration liabilities arising from prior year's acquisitions
• Per the end of the first half year 2022, deferred tax liabilities represent \$44.8 million and contract liabilities (deferred revenue) \$59.3 million. Deferred and contingent consideration for acquisitions amounts to \$37.7 million (whereof \$11.7 million are non-current) to be settled in combination of approx. 22% shares and 78% cash
• The Group has no interest-bearing debt and equity ratio of 79% per 30 June 2022

CASH FLOW STATEMENT

	Q2 2022	Q2 2021	H1 2022	H1 2021	FY 2021
Net cash flow from operating activities	5.0	3.4	8.6	8.9	20.9
Net cash flow from investing activities	(3.3)	(12.0)	(36.9)	(19.5)	(364.9)
Net cash flow from financing activities	(0.3)	195.6	(0.6)	195.4	195.5
Net change in cash and cash equivalents	1.4	187.0	(28.9)	184.8	(148.5)
Cash and cash equivalents at begin. of period	76.9	253.6	107.8	256.1	256.1
Ettects of exchange rate changes on cash	(1.7)	(0.1)	(2.3)	(0.4)	0.2
Cash and cash equivalents at end of period	76.6	440.5	76.6	440.5	107.8
Adjusted cash flow from operating activities 1	5.2	5.0	9.4	10.4	31.3

1) Adjusted for cash outflow related to share-based payment, acquisition and listing cost preparations

• Adjusted cash flow from operations of \$5.2 million for Q2 and \$9.4 million for the first half year 2022
• Cash flow from investing activities of -\$3.3 million in Q2 and -\$36.9 million in the first half year 2022 mainly due to payment for deferred and contingent consideration for prior years acquisitions
• Cash flow from financing activities of -\$0.3 million in Q2 and -\$0.6 million in the first half year 2022 due to lease payments

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), 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.
• 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.

MAKING LEARNING AWESOME!

Motivated by its mission to make learning awesome, and powered by its global brand and viral platform, Kahoot! is optimally positioned at the intersection of learning and audience engagement needs across diverse demographics and user contexts, including education, business and the global creator economy

Kahoot! is in a unique position and capability to serve several high growth application areas through one globally beloved brand and software platform

Engagement & Communication

Energize your team

Interactive presentations & meetings

Training & development

Corporate customer showcase

Partner & customer engagement

As a powerful tool for collecting feedback

Presentations & meetings

To engage and involve audiences of any size

Product, sales & customer support training

To energize and reinforce learning

Mandatory training & compliance

Making any subject engaging

Communication & culture

To inform and bring people together

Pre- & Onboarding

Helping new joiners connect & learn

Tivoli Star Academy

● 1,700 seasonal workers

● Onboarding & service training with Actimo employee app

● Kahoot! used for guest engagement

10K

Over

educational institutions have already deployed multiuser Kahoot! teacher licenses

courses

Maximize student engagement by designing full class, interactive sessions

Elevate learning at your entire school or district

Making learning fun, engaging, and impactful at school!

at school

Bring math to life!

Online whiteboard tool

Equip IT admins with increased control, security & compliance

Choose the perfect game mode Play live or assign a challenge!

Embraced by ~9 million teachers globally, engaging 100s of millions of students

K! Academy Marketplace - getting even better with Courses Deepening classroom learning through premium learning resources

10m+

are using Kahoot! at home with over 100 million games played by families

…with over 100 million games Just launched!

played by families

A safe and fun learning experience for kids age 2-7

Kids Teens Students Family & friends

Learn at home, with study peers or on the go

at Home

Exploration sparks curiosity

Learn to read, learn math & algebra - apps

Premium subscription for awesome learning for the entire family

Just launched!

Social study for higher-ed students

Language learning made easy.

+

Who says studying can't be fun?

Social study for highered students

Game night with family and friends

Localized app and curated content in 14 languages

Social event templates, themes and game modes

Integrations with Apple SharePlay, Microsoft Teams, Zoom, Google Meet (2H-22) and Snap for virtual play

Free to play, upgrade to

Global community

Lets educators connect, grow their community and share their knowledge

Unique, ready-to-use content Embraced by 300M+ players every year

Verified content creators

First subscription for premium content on the marketplace

Early access from Q1/22

Buy and sell learning resources!

Enhanced learning experience with premium IP

Premium content partners

A global community and marketplace for creators, learners and learning providers

Kahoot! Marketplace in a nutshell

Approach:

Enable content creators to monetize their high-quality learning resources

Content creators:

Verified creators, publishers, domainand subject-matter experts

Buyers:

All Kahoot! users globally incl. individuals, teachers, students and business users

Content offering:

High-quality learning resources including Kahoot! courses

Enhanced learning experience with premium IP

Available on Amazon Appstore

Apple Schoolwork features make teaching with Kahoot! even more awesome

Engage with Kahoot! directly in Microsoft Teams and PowerPoint

Accelerated growth through the Kahoot! partner ecosystem

Extending the Kahoot! experience with Google Classroom

Premium content partners

Themed, branded and fully white-labeled experiences

kahoot.com/investor