Kahoot! ASA

Investor Presentation • Aug 20, 2020

Make learning awesome

Q2 2020 presentation August 20, 2020

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

Kahoot! today

Scalable cloud platform

Large market opportunity*

Recognized market leader

Viral business model

Active accounts whereof 6m+ teachers and educators

Paid subscriptions growing 170%+ YoY, including teachers and professionals

User generated kahoots with over 1bn participating players LTM

20m+ 270K+ 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

Why everyone loves Kahoot!

Embraced by 6m+ 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 over 6 million 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

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

Highlights Q2 2020

• Continued growth on the Kahoot! platform with more than 20 million active accounts last twelve months representing 44% year on year growth per Q2 2020
• Strong growth in paid subscriptions, reaching more than 270K in Q2 2020, an increase of 68K paid subscriptions from Q1 2020
• Q2 2020 invoiced revenue growth of 317% to \$9.6m, up from \$2.3m in Q2 2019. The quarter over quarter growth in invoiced revenue was 49% in Q2 2020.
• Positive cash flow from operations of \$3.8m in Q2 2020, compared to \$1.5m in Q2 2019
• Solid financial cash position with net cash and cash equivalents of \$66m including net proceeds from new share issues of \$25m. The company has no interest-bearing debt
• EBITDA neutral for Q2 2020 before social security cost related to exercised share options in the quarter (\$1.3m)

170% YoY growth in paid subscriptions per Q2

317% Q2 YoY growth in invoiced revenue

40%

Q2 cash conversion from invoiced revenue

Kahoot! accelerating momentum

Active accounts LTM

• Strong organic growth in active accounts 1) with no external marketing cost

Paid subscriptions

• Increased conversion rate of active accounts to paid subscriptions 2)

Invoiced revenue

• Conversion to paid subscriptions and extended product offering in all segments from customers in more than 150 countries

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

2) Paid subscriptions is defined as total number of users on paid subscription per the end of the period

New and existing customers are making learning awesome

Continued growth in accounts and usage

Last twelve months (in millions)

The user growth on the Kahoot! platform in the last twelve months continued, with more than 20m active accounts (44% YoY growth). Number of hosted games last twelve months was 210m (7% YoY growth) with 1.25bn participants (12% YoY growth)

Continued growth in paid subscriptions

Work

Kahoot! reached more than 270K paid subscriptions as of Q2 2020, compared to 202K end of Q1 2020 (34% QoQ growth), and the YoY growth for Q2 was 170%. Subscriptions per segment; 100K Work, 125K School and 45K in the Home & Study segment (including DragonBox curriculum)

Quarterly invoiced revenue development

Invoiced revenue (in millions USD)

Total invoiced revenue in Q2 2020 of \$9.6m representing 317% growth compared to Q2 2019, and the quarter over quarter growth was 49% vs. Q1 2020

Invoiced revenue per region

Kahoot! has paying subscribers in more than 150 countries, USA and Canada represent approx. 47% of invoiced revenue and Europe approx. 36% in Q2 2020

Key financial figures development

	Q2 2020		Q12020 Q42019 Q3 2019 Q2 2019			Q1 2019
Invoiced revenue	9,6	6,4	5,3	3,4	2,3	2,0
Invoiced revenue growth QoQ	3,2	1,1	ਹੈ,ਰੇ	1,1	0,3	0,3
Recognized revenue	5,8	4,5	4,0	2,2	1,4	1,2
Total operating expenses 11	-7,1	-5,4	-5,1	-3,9	-3,4	-3,3
EBITDA	-1,3	-1,0	-1,2	-1,7	-2,0	-2,2
Net cash flow from operations	3,8	0,9	1,2	-0,6	-1,5	-1,9
Cash and cash equivalents 61	73,4	34,0	40,9	13,4	24,7	26,5
Full time employee equivalents	128	120	110	100	73	62

1) Q2 2020 includes \$1.3m in social security cost related to exercised share options in the quarter.

2) Cash and cash equivalents per Q2 2020 were \$73.4m whereof approx. \$7.4 m is payable in Q3 for employee withholding taxes, social security cost and transaction cost related to the new share issue and share option exercise in the quarter. The net cash position following these payments are \$66m including the net proceeds from new share issues of \$25m.

• Invoiced and recognized revenue continue to grow quarter over quarter
• Lower growth in total operating expenses combined with strong cash collection of invoiced revenue drive positive cash flow from operations
• EBITDA continue to improve quarter over quarter (excluding Q2 share option cost)
• Solid cash position and cash flow from operations
• Continued efforts to develop the company, adding product and commercial talents

Profit & loss statement per Q2 2020

	Q2 2020	Q2 2019	Growth	H1 2020	H1 2019	Growth
Invoiced revenue	9,6	2,3	317 %	16,1	4,3	273 %
Net change unrecognized revenue	-3,8	-0,9		-5,8	-1,7
Recognized revenue	5,8	1,4	315 %	10,3	2,6	300 %
Cost of goods sold	-0,7	-0,2		-1,2	-0,3
Payroll & consulting 11	-4,4	-2,0		-7,8	-4,2
Other operating expenses	-1,9	-1,2		-3,5	-2,3
Total operating expenses	-7,1	-3,4	109 %	-12,5	-6,7	86 %
EBITDA	-1,3	-2,0		-2,2	-4,2

1) Q2 2020 includes \$1.3m in social security cost related to exercised share options in the quarter.

• Invoiced revenue of \$9.6m in Q2 2020, compared to \$2.3m in Q2 2019 representing 317% growth
• Invoiced revenue growth compared to Q1 2020 was 49%
• Invoiced revenue for H1 2020 was \$16.1m compared to \$4.3m for H1 2019, representing 273% growth
• Recognized revenue for Q2 2020 was \$5.8m compared to \$1.4m in Q2 2019, representing 315% growth. Revenue growth for H1 2020 was 300%
• EBITDA neutral Q2 2020 excluding social security cost for exercised share options in the quarter

Balance sheet per Q2 2020

	Jun 30, 2020	Jun 30, 2019	Dec 31, 2019
Capitalized R&D	2,0	3,1	2,6
Licenses & domain	0,2	0,2	0,2
Goodwill	19,4	0,0	24,1
Deferred tax asset	4,6	3,5	5,1
Total intangible fixed assets	26,1	6,8	32,0
Property and equipment	0,3	0,2	0,3
Financial fixed assets	0,0	0,0	0,0
Total fixed assets	26,4	7,0	32,3
Inventory/deferred cost of goods sold	0,1	0,0	0,1
Accounts receivable	0,6	0,8	1,3
Prepaid expenses and other current assets	1,2	1,1	0,6
Cash and cash equivalents	73,4	24,7	40,9
Total current assets	75,2	26,6	42,9
Total assets	101,6	33,6	75,2
Total equity	81,0	29,5	65,0
Accounts payable	0,8	0,3	0,9
Public duties payable	7,2	0,2	1,7
Deferred revenue	12,0	3,3	6,7
Other current liabilities	0,7	0,3	0,9
Total current liabilities	20,7	4,1	10,2
Total equity and liabilities	101,6	33,6	75,2

• Cash and cash equivalents per Q2 2020 were \$73.4m whereof approx. \$7.4m is payable in Q3 related to the new share issue and share option exercise in the quarter. The net cash position following these payments are \$66m including the net proceeds from new share issues of \$25m.
• Deferred revenue reached \$12.0m per June 30, 2020 compared to \$3.3m per June 30, 2019, an increase of \$8.7m. Deferred revenue per March 31, 2020 was \$7.6m
• No long-term debt and equity ratio of 80%.
• Goodwill from the 2019 acquisitions of DragonBox and Poio are amortized linearly over 5 years and represented \$19.4m per Jun 30, 2020

Cash flow statement per Q2 2020

	Q2 2020	Q2 2019	H1 2020	H1 2019
Net cash flow from operating activities	3,8	-1,5	4,8	-3,3
Net cash flow from investment activities	0,0	-0,1	-0,1	-0,2
Net cash flow from financing activities	32,8	0,0	31,8	0,2
Translation differences	2,7	-0,1	-3,9	-0,3
Net change in cash and cash equivalents	39,4	-1,7	32,5	-3,6
Cash and cash equivalents at begin. of period	34,0	26,4	40,9	28,3
Cash and cash equivalents at end of period	73,4	24,7	73,4	24,7

• Positive cash flow from operations in Q2 2020 of \$3.8m compared to -\$1.5m in Q2 2019
• Marginal negative cash flow from investing activities as R&D costs are expensed as they occur
• \$7.4m is payable in Q3 related to the financing activities in Q2. The net cash position following these payments are \$66m including the net proceeds from new share issues of \$25m.
• Significant shifts in USD exchange rate impacts translation differences on cash held

Forward looking statement

	Actual FY 2018	Actual FY 2019	Actual H1 2020	Guidance FY 2020
Invoiced revenue	\$3.5m	\$13m	\$16.1m	\$35m - \$38m
Paid subscriptions	46K	170K	270K+	340K+
Active accounts LTM	12m	16m	20m+	21m+

• Invoiced revenue for the Kahoot! Group for Q3 2020 is expected on the same level as for Q2 2020, representing approx. 180% growth compared to \$3.4m as reported for Q3 2019
• The Kahoot! Group expects invoiced revenue for the full year 2020 in the range of \$35m-\$38m. Invoiced revenue for 2019 was \$13m as reported, and proforma invoiced revenue including acquired units for 2019 was \$15m
• Continued positive cash flow from operations in the second half of 2020
• For 2020, active accounts are expected to exceed 21m and paid subscriptions to exceed 340K.
• The company is preparing for a main listing at Oslo Stock Exchange in Q1 2021

Kahoot! ambitions next three years

* Not including Home & Study subscriptions

To play Kahoot! is to promote Kahoot!

The Kahoot! viral business model generates over 1m new accounts and over 2m app downloads every month

All prices per teacher per month

HigherEducation

\$ 5 / \$10 / \$15

at sch ool

All schools (K-12)

\$1 / \$3 / \$6

Premiumeditions

Over 100 million games have been played by families and friends around the globe

Free and from \$5 per user per month

Em braced by over 5 m illion teacher s Loved by hu nd red s of m illions of students Em po wering students f rom lear ner s to leader s

Over 100K+ teachers are paying for premium editions to drive learning and engage students

Free and from \$3 per teacher per month

I n t ro d ucin g

Business suite Q 4 2019

All prices per presenter/host per month

M illions of em p loyees p laying Kahoot ! 97% of Fortu ne ⁵⁰⁰ is u sing Kahoot! Ener gizing audience in events of any size

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

From \$10 per user per month

For professionals \$10 / \$20 / \$ 40

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

EDU Family Publishing & Distribution Introducing 2020

Summary

Join the Kahoot! journey

Parent

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

Teacher Student Professional Investor

Stay up to date, visit kahoot.com/news

About Kahoot!

Kahoot!

Founded in 2012, Kahoot! started delivering a quizbased game to ensure attention, create engagement and provide knowledge in classrooms

Scalable technology platform based on research conducted by Kahoot! co-founder Morten Versvik at NTNU together with Professor Alf Inge Wang

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

• Build awesome free services
• Improve based on feedback from millions of users
• Extend with premium subscriptions

User-generated content with over 100m kahoots created by our user and content partners so far, over 50m available in a user friendly searchable database

The Kahoot! journey Development of cumulative players

2013-2017

Launched in September 2013

Growth focus on US and K-12 education segment

Developed a global recognizable brand on a scalable platform

Top 3 tool in US education

50+ employees

2018

Launched first commercial editions for the business and school segments, reaching 40K paid subscriptions

Launched mobile apps for iOS and Android

2016

2015 2017

1 Billion

2013 2014 2018 2019 2020

75+ employees

2019

Commercial subscription editions available for all segments, reaching 100K paid subscriptions

Acquisition of Poio learn to read and DragonBox learn math

120+ employees, offices in 6 countries

2 Billion

3 Billion

2020 YTD

4.5 Billion

Expanding commercial offerings in all segments, reaching 200K paid subscriptions

Introduced first embeddable service for publishers

125+ employees, increased investments in R&D and organization development

EDU Family Publishing & Distribution Introducing 2020

Family Introducing

A collection of services and apps valuable for families and personal use

Kahoot! Family subscription

Through the Kahoot! app I am able to study at my own pace, to gain a deeper understanding of " topics

Engaging deeper learning with flashcards, tests and challenging friends

I am able to access premium content from "top brands

A library of content made by educators, learners and professional content providers

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

Engage children of all ages with our "learners to leaders" pedagogy

Learn through play Engage communities

Kahoot! lets me bring an element of fun and engagement to social events "

Premium features and content for any occasion

EDU

Kahoot! EDU enables admins and school leaders to structure and enhance the way Kahoot! is used inside their schools, districts or higher-ed institutions. It also introduces premium licenses for students.

Over 10,000 educational institutions have already deployed multiuser Kahoot! teacher licenses

Kahoot! EDU - An enhanced Kahoot! experience for the entire school, not only the classroom

Engage students

Give students more ways to create kahoots for assignments and to study with their peers

Empower teachers

Provide educators the full teaching toolkit that includes interactive lessons and advanced assessment

Equip IT admins

Offer IT admins greater control over who and how Kahoot! is used, and enable tech integrations

Elevate school leaders

Lift up school leaders with tools to foster a positive learning environment and to conduct professional development

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

Brand -new Knowledge portal

knowledge platform Built on top of the Kahoot! community of millions of engaged educators and learners, with the goal of making learning awesome! Built on top of Kahoot!'s user base of millions of engaged educators and learners, with the goal of making learning awesome!

Community and networking

Communities built around verified, educational content based on topic, location or interests

Marketplace for educators

Verified educators and premium partners can offer their content, build communities and brands

Premium, verified content Premium, verified content

From educators, publishers, brands or partners to learners all over the globe; at home, at work or in school From educators, publishers, brands, or partners to learners all over the globe; at home, at work, or in school

Publishing & Distribution Introducing

Enables publishers to embed the Kahoot! services on their own websites and distribution channels to promote their content and brands

Kahoot! publishing & distribution

Engaging audiences globally

6.5 million players across 200+ countries

Viral network effect

We now offer fun and engaging Kahoot! content specially created " to be used with many of our titles.

The Kahoot! platform is ideal for the learning goals of LaunchPacks.

Added value and greater extension via " embeddable games

Flexibility across use cases

Kick off this Digital Citizenship Week by giving your students the space to voice their perspectives on topics important to them. Check out our fun new #DigCitWeek kahoots.

Perfect for group discussions and stand-alone lessons

Distribution & connection

Calling all teachers! We're excited to share that Disney Youth Programs has teamed up with Kahoot!, so you can bring our " lessons into your classroom!

Establish relationships with hardto-reach audiences

The complete solution for Corporate Learning, audience engagement, team collaboration and company culture

Introducing

For all employees, to empower all individuals and teams to create, share and join engaging learning experiences and build organizational knowledge

Kahoot! 360 for organizations

Corporate learning Team collaboration

With Kahoot! I can measure product knowledge

Courses, analytics, learner resources

Kahoot! is a powerful tool for breaking down barriers and connecting the team

Integrations, collaboration tools

Audience engagement

Interactive presentations, audience interaction features

Company culture

Kahoot! is built into our organizational culture

Team building mode, employee engagement tools "

Shareholders overview

Kahoot! AS has a total of 399.5m common shares and more than 6,000 shareholders. The shares are listed on Merkur Market on Oslo Stock Exchange with ticker code KAHOOT-ME

	Shareholders per August 19, 2020	Shares	0/0
	1 Datum Group	52 130 865	13,0 %
	2 Nothzone Ventures Norway AS	48 033 280	12,0 %
	3 AS Real-Forvaltning	30 208 910	7,6 %
বা	Creandum III LP	27 133 260	6,8 %
	5 Microsoft Global Finance	20 820 000	5,2 %
	6 Citigroup Global Markets Inc.	13 500 000	3,4 %
7	Versvik Invest AS	12 962 076	3,2 %
og	Newbrott AS	8 256 000	2,1 %
	9 KAM Holding AS	5 627 835	1,4 %
	10 J.P. Morgan Bank Luxembourg S.A.	7 500 000	1,9 %
	11 MP Pensjon PK	6 943 949	1,7%
	12 Glitrafjord AS	6 000 000	1,5 %
	13 Gamification AS	5 542 777	1,4 %
	14 J.P. Morgan Bank Luxembourg S.A.	5 200 000	1,3 %
	15 Verdipapirfondet Norge Selektiv	4 468 256	1,1 %
	16 Sanden AS	4 340 000	1,1 %
	17 Morgan Stanley & Co. LLC	5 220 264	1,3 %
	18 Brown Brothers Harriman & Co.	3 329 736	0,8 %
	19 Verdipapirfondet DNB Norden	4 385 843	1,1 %
20	Patrick Marchal AS	3 310 440	0,8 %
	Other	124 576 772	31,2 %
	Total outstanding shares	399 490 263	100,0 %
	Outstanding share options	17 155 725
	Total no. of shares (fully diluted)	416 645 988

Kahoot! share information

	Ticker
Oslo Stock Exchange (Merkur Market):	KAHOOT-ME
Reuters:	KAHOOT-ME.OL
Bloomberg:	KAHOOTME:NO
Number of shares:	399,490,263
Outstanding share options:	17,155,725
Total no. of shares (fully diluted):	416,645,988
Free float:	>95%
Share price (August 19, 2020):	NOK 41.00
Average daily trading volume YTD (shares):	860,000
Market Cap total (August 19, 2020)	NOK 16.4bn

Make learning awesome

www.kahoot.com/investor