Kahoot! ASA

Investor Presentation • Feb 10, 2021

Make learning awesome

Q4 2020 presentation February 10th 2020

Our vision is to build the leading learning platform in the world

Kahoot!

Kahoot! started 2012 as a quiz-based game to ensure attention, create engagement and provide knowledge in classrooms

Global recognized brand with a viral distribution model based on scalable technology platform

User centric, data-driven and iterative approach to product development and innovation

Over 100m user generated Kahoots, 250m games played last 12 months with 1.5bn participating players

The Kahoot! journey

2013-17 2018 2019 2020

Launched September 2013

Growth focus on US and K-12

Top 3 tool in US education

50+ employees

Launched first commercial editions with 40k paid subscriptions

Launched mobile apps for iOS and Android

75+ employees

New commercial subscription editions for all segments

Reaching 170k paid subscriptions

Acquisition of Poio and DragonBox

120+ employees

5 Billion

More commercial offerings, 550k paid subscriptions

Launched first platform service

Acquisition of Actimo Enterprise Learning and Drops language learning app

200+ employees

Why everyone loves Kahoot!

Embraced by 7m teachers

Kahoot! helps me engage students in class and for homework, and also works great for virtual lessons even when school is closed "

As do millions of teachers globally

Loved by students across the globe

I love Kahoot! It makes learning fun! "

As do hundreds of millions of students

Trusted by parents and families

Kahoot! allows me to engage in playful learning with my family in a social setting

As do millions of families around the world

Integral for corporate culture and learning

Kahoot! breaks down barriers and connects teams As do hundreds of thousands of organizations in over 150 countries

To play Kahoot! is to promote Kahoot!

The Kahoot! viral distribution model generates millions of new accounts and app downloads every month

Kahoot! today

Scalable cloud platform

Large market opportunity*

Recognized market leader

Viral business model

Active accounts whereof 7m teachers and educators

Paid subscriptions growing 220% YoY, for professionals, teachers, and personal use**

User generated kahoots, 1.5bn participating players LTM (non-unique)

24m+ 550K+ 100m+ 90-100%

Net dollar retention, above 100% for larger organizations

*Based on estimated EdTech market in 2020 from Goldman Sachs Education Technology Sector trends and market update May 2020 **Including 100K from Drops, acquired November 2020

Highlights Q4 2020

• Continued growth on the Kahoot! platform with more than 24m active accounts last twelve months representing 57% year on year growth per Q4 2020
• Strong growth in paid subscriptions, reaching 550K in Q4 2020, an increase of 190K paid subscriptions from Q3 2020 including 100K Drops subscriptions
• Q4 2020 invoiced revenue growth of 230% to \$17.5m, up from \$5.3m in Q4 2019. The quarter over quarter growth in invoiced revenue was 50% in Q4 2020. For the full year \$45.3m, a 247% growth.
• Positive cash flow from operations of approx. \$7m in Q4 2020 representing 40% cash conversion from invoiced revenue, compared to \$1.4m in Q4 2019. For the full year \$17.4m.
• Adjusted EBITDA in Q4 2020 was \$0.8m and \$2.3m for the full year 2020 (adjusted for share-based compensation expenses, related payroll taxes and acquisition-related expenses)
• Solid financial cash position of \$256m per Q4 2020. The company has no interest-bearing debt
• Completed the acquisitions in Q4 of Actimo, the employee engagement platform empowering organizations to more efficiently build corporate culture, and Drops, the language learning platform with 42 languages and 25 million users since launch

220%

YoY growth in paid subscriptions per Q4

230% Q4 YoY growth in invoiced revenue

40%

Q4 cash conversion from invoiced revenue

Kahoot! accelerating momentum

Paid subscriptions 2)

Invoiced revenue 3)

USA and Canada

Europe

Asia Pacific

Latin America and The Caribbean

Africa, The Middle East, and India

1) Active accounts LTM is defined as unique user accounts hosting a game with one participant or more LTM

• 2) Paid subscriptions is defined as total number of users on paid subscription per the end of the period, not including Actimo. Home subscriptions include 100K Drops subscriptions in Q4 2020
• 3) Conversion to paid subscriptions in all segments from customers in more than 150 countries

Invoiced revenue per region

(in thousands USD)

Kahoot! has paying subscribers in more than 150 countries, USA and Canada represent approx. 46% of invoiced revenue and Europe approx. 41% in Q4 2020

Key financial figures development

	Q4'20	Q3'20	Q2'20	Q1'20	Q4'19	Q3'19	Q2'19	Q1'19
Invoiced revenue	17,5	11,6	9,6	6,4	5,3	3,4	2,3	2,0
Invoiced revenue growth QoQ	5,9	2,0	3,2	1,1	1,9	1,1	0,3	0,3
Invoiced revenue arowth QoQ %	50 %	21 %	49 %	21 %	56%	48 %	15 %
Operating revenue	12,0	9,2	5,7	4,1	2,8	3,1	1,4	1,2
Net cash flow from operations	7,0	5,2	3,9	1,1	1,4	$-0,6$	$-1,5$	$-1,9$
Cash flow from oper. in % of invoiced	40 %	45 %	41 %	17%	27%	$-17%$	$-63%$	$-94%$
Cash and cash equivalents	256,1	72,5	73,4	34,0	40,9	13,4	24,7	26,5
Full time employee equivalents	182	127	128	120	110	100	73	62

• Continued strong QoQ growth in Invoiced revenue and Operating revenue
• Cash flow from operations exceeding 40% of invoiced revenue for three consecutive quarters
• Continued efforts to develop the company, adding product, development and commercial talents
• 40+ employees added through acquisitions in Q4 2020

Condensed profit and loss statement

	Q4 2020	Q4 2019	Growth	FY 2020	FY 2019	Growth
Total revenue	12,0	2,8	329 %	31,0	8,5	265 %
Cost of sales	1,4	0,2		3,8	0,9
Employee benefit expenses	17,1	5,7		31,6	12,1
Other operating expenses	5,1	1,7		11,6	6,1
Total operating expenses	23,6	7,6	211 %	47,0	19,2	145 %
EBITDA before adjustments	$-11,6$	$-4,8$		$-15,9$	$-10,7$
Share based payment expenses	2,0	0,1		3,1	0,5
Social security tax share based payments	9,4	2,8		14,2	3,3
Acquisition transaction and listing cost	1,0	0,0		1,0	0,3
EBITDA adjusted	0,8	$-1,9$		2,3	$-6,6$
Adjusted EBITDA margin (%)	6,4%	$-66,5%$		7.5%	$-77.9%$

• The Kahoot! Group has for 2020 converted the consolidated financial statements to the International Financial Reporting Standards (IFRS)
• Q4 2020 revenue growth of 329% and 265% full year 2020 revenue growth
• EBITDA adjusted for share-based compensation expenses and related payroll taxes, acquisitionrelated expenses and listing cost preparations was \$2.3m for the full year 2020, compared to -\$6.6m for the full year 2019.
• Adjusted EBITDA margin of 7.5% for the full year 2020

Condensed balance sheet

	Dec 31, 2020	Dec 31, 2019
Goodwill	77,7	20,1
Intangible assets	34,4	8,9
Property, plant and equipment	0,4	0,3
Right-of-use assets	3,2	3,1
Total non-current assets	115,7	32,4
Trade receivables	2,7	1,3
Other current assets	3,3	0,6
Cash and cash equivalents	256,1	40,9
Total current assets	262,1	42,8
Total assets	377,8	75,2
Total equity	288,4	56,0
Lease liabilities	2,3	2,6
Deferred tax liability	5,8	1,3
Other non-current liabilities	15,4	0,0
Total non-current liabilities	23,6	3,9
Lease liabilities	1,0	0,6
Trade payables	1,8	0,9
Contract liabilities (deferred revenue)	27,9	6,1
Other current liabilities	35,1	7,6
Total current liabilities	65,8	15,2
Total current liabilities	89,4	19,1
Total equity and liabilities	377,8	75,2

• The increase in goodwill and intangible assets per the end of 2020 compared to 2019 is due to the acquisitions of Actimo and Drops
• Strong cash position of \$256m per 31 December 2020
• Deferred revenue reached \$27.9m per the end of 2020, compared to \$6.1m per the end of 2019, an increase of \$21.8m.
• Solid balance sheet with no interest-bearing debt and equity ratio of 76%.

Cash flow statement

	Q4 2020	Q4 2019	FY 2020	FY 2019
Net cash flow from operating activities	7,0	1,4	17,4	$-2,5$
Net cash flow from investing activities	$-34,3$	$-0,1$	$-34.4$	$-9,2$
Net cash flow from financing activities	206,6	25,6	231,1	25,5
Net change in cash and cash equivalents	179,3	27,0	214,1	13,7
Cash and cash equivalents at begin, of period	72,5	13,3	40,9	27,8
Effects of exchange rate changes on cash	4,3	0,5	1,2	$-0,7$
Cash and cash equivalents at end of period	256,1	40,9	256,1	40,9

• Strong development in cash flow from operations, improved with \$19.9m for the full year 2020 compared to 2019
• Cash flow from investing activities in 2020 was -\$34.4 million mainly due to the acquisitions of Actimo and Drops
• Cash flow from financing activities was USD 231.1 million from new capital raised in 2020

Forward looking statement

	Actual FY 2018	Actual FY 2019	Actual FY 2020	Guidance FY 2021
Invoiced revenue	\$3.5m	\$13m	\$45m	\$90-100m
Paid subscriptions	46K	170K	550K	1m

• In 2021, Kahoot! will continue to expand with new free and premium tools and functionality for interactive presentations for school and work, corporate training, language learning, Academy Marketplace and additional content offerings from publishing partner, to make learning even more awesome for all users
• For the full year 2021, the Kahoot! Group's ambition is to reach \$90-100m in invoiced revenues with continued solid positive cash flow from operations and one million paid subscriptions
• The company is preparing for a main listing at Oslo Stock Exchange which could be completed as early as in Q1 2021. In addition, the company will explore the opportunity for a secondary listing during 2021

Kahoot! ambitions next three years

Significant scale	\$200m+ Annual Recurring Rev. end of 2023		Target Kahoot! ARR end of year 2)	(in millions USD)
Retention & expansion	100%+ net \$ retention for larger organizations	200
Engagement	Adding net 3m+ active accounts annually	150
Commercial	Adding net new 250K subscriptions annually 1)	100
Operating leverage	40%+ EBITDA margin	50
Cash flow	Cash flow from operations exceeding EBITDA	0	2018 2019	2020	2021	2022	2023

1) Not including Home & Study subscriptions 2) Not including ARR from future acquisitions

Over 10 million families and friends are using Kahoot! at home with over 100 million games played

Free and from \$5 per user per month

Over 200K+ teachers are paying for premium editions to drive learning and engage students

Free and from \$3 per teacher per month

at w or k Over 100K+ businesses breaking down barriers and connecting teams with our professional editions

From \$10 per user per month

Connecting the global educator community and providing high-quality, verified content, to ensure that every student gets access to awesome learning at school and home

10m+

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

Premium subscription for awesome learning for the entire family

at home

Learn math &

algebra

Language learning for everyone from 8 years and above

Learn

to read

Engage communities Premium features and content for any occasion

families Study at home with flashcards, tests and challenging friends

Introducing Language Learning in the Kahoot! app

Over

10K educational

institutions have already deployed multiuser Kahoot! teacher licenses

Equip IT admins with increased control, security & compliance

Elevate learning at your entire school or district

at school

Embraced by over 7

million

teachers globally

Make lessons interactive

Next level engagement with Bitmoji

Engagement & Communication

Company culture

presentations &

meetings

Training & development

A better experience for all learners

New and existing customers are making learning awesome in Q4

2021 Edition: The Employee Experience

Extending Kahoot! 360 with peer to peer, selfdirected and continuous learning for all employees

30m+

players enjoying kahoots created by our partners

Kahoot! Publisher Premium subscription for publishers and content creators

Premium learning content for students in the classroom and at home

Marketplace

Partnering with leading publishers and organizations

7m+

educators & teachers, and hundreds of millions of students across the world use Kahoot! to make learning awesome

Marketplace for educators (Launching 2021)

Embraced by over12 million players monthly

Knowledge portal

If teachers didn't try new things, our students wouldn't get the best from us. "

Aimee Copple

Premium learning content

By verified educators and publishers to engage students

The next-level employee app for remote employees

Fuelled by actionable insights, Actimo intuitively increases productivity and engagement levels in daily communication, tasks, and training.

Over 100K active monthly users

100K subscribers studying 42 languages in over 200 countries —

almost every country and territory across the world… Even Antarctica!

Fun and easy

Beautiful, visual learning

Gradually nurtures commitment

Anywhere, anytime swipe-only freedom

Language Learning

Short 5-min sessions*

Game-like motivation

Vocab-focused* auxiliary tool for instructors

Self-guided learners &

The Kahoot! ecosystem platform

Summary

Join the Kahoot! journey

Parent

kahoot.com/home

Teacher Student Professional Investor

kahoot.com/school kahoot.com/study kahoot.com/work kahoot.com/investor

Stay up to date, visit kahoot.com/news

Kahoot! shareholder overview

Kahoot! AS has a total of 446.1m registered common shares and approx. 20,000 shareholders. The shares are listed on Oslo Stock Exchange (Euronext Growth) with ticker code KAHOT

	Shareholders per February 8, 2021	Shares (m)	%
	1 SoftBank	71,0	15,9%
2	Datum Group	52,1	11,7 %
3	Glitrafjord	40,2	9,0%
	4 The Bank of New York Mellon	20,8	4.7%
5	Creandum III LP	20,0	4.5 %
6	Citigroup Global Markets Inc.	13,5	3.0%
	7 Versvik Invest AS	13,0	2,9%
	8 Newbrott AS	7,6	1.7%
9	Nordnet Bank AB	5,4	1,2%
	10 Goldman Sachs & Co. LLC	5,4	1,2%
11	Gamification AS	5,2	1,2%
	12 MP Pensjon PK	5,1	1,2%
	13 State Street Bank and Trust Comp	4,7	1,0%
	14 Sanden AS	4,3	1,0%
	15 Verdipapirfondet DNB Norden	3,6	0.8%
16	Brown Brothers Harriman & Co.	3,6	0,8%
	17 Adrian AS	3,2	0,7%
	18 Morgan Stanley & Co. LLC	3,1	0,7%
	19 Verdipapirfondet DNB Grønt Norden	3,0	0,7%
	20 J.P. Morgan Bank Luxembourg S.A.	2,9	0,6%
	Other	158,4	35,5 %
	Total outstanding shares	446,1	100,0 %
	Outstanding share options	20,1
	Total no. of shares (fully diluted)	466,2

Oslo Stock Exch. (Euronext Growth):	KAHOT
Yahoo! Finance	KAHOT.OL
Reuters:	KAHOOT-ME.OL
Bloomberg:	KAHOOT:NO
Number of registered shares:	446,091,967
Outstanding share options:	20,081,975
Total no. of shares (fully diluted):	466,173,942
Free float:	~95%
Share price (Feb 9, 2021):	NOK 127.60
Avg. daily trading volume YTD (shares):	2,815,000
Market Cap total (Feb 9, 2021):	NOK 56.9bn

www.kahoot.com/investor