Kahoot! ASA

Investor Presentation • May 7, 2020

Make learning awesome

Q1 2020 presentation May 7, 2020

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

Kahoot! overview

Scalable cloud platform

Large market opportunity*

Recognized market leader

Participating players LTM

Net new paid seats LTM

Active teachers on the platform

1.3bn +125K 6m+ 90-100%

Net dollar retention

* Based on estimated EdTech market in 2020 from Goldman Sachs Education Technology Sector trends and market update August 2019

Kahoot! and the Covid-19 impact

We are continuously adjusting and optimizing our business operations in the new, unprecedented realities, while ensuring the health and safety of our employees

Free access to Kahoot! Premium for all teachers and schools affected by Covid-19

+100K +30K

New total signups of Kahoot! accounts per day during peak days

Strong growth in the platform usage and new paid seats

Net new paid seats in April 2020, exceeding 230K paid seats

Strong growth in usage for home study and remote work

5X

Usage growth of Kahoot! YoY for home study and assignments (challenges)

Highlights Q1 2020

• Strong usage growth on the Kahoot! platform with 25% growth in active accounts, 19% growth in hosted games and 23% growth in participating players in the last twelve months
• Good growth in paid seats, reaching 184K in Q1 2020, increased by 32K seats from Q4 2019 and reaching a total of 202K including DragonBox School
• Q1 2020 invoiced revenue growth of more than 220% to \$6.4m, up from \$2.0m in Q1 2019
• Positive cash flow from operations of \$0.9m in Q1 2020, compared to -\$1.9m in Q1 2019
• Solid financial cash position with cash and cash equivalents of NOK 357m (\$34m) as of 31.03.2020 and no interest-bearing debt
• Launched several new features and editions for all three main segments (at Work, at School and at Home), contributing to the growth of both free and paid users in the quarter. The main focus has been delivering an improved experience when using Kahoot! with video conferencing tools and for teachers performing student assessments

Paid seats (+125K LTM)

+220% Growth in invoiced

revenue YoY

+10%

Cash conversion from invoiced revenue

New and existing customers are making learning awesome

Continued growth in accounts and usage

Last twelve months (in millions)

The user growth on the platform last twelve months continued, reaching 1.3bn participating players (23% YoY growth), 218m games played (19% growth YoY) hosted by 16.8m active accounts (25% YoY growth)

Continued growth in paid seats

Work School

Paid seats per quarter (in thousands)

Kahoot! reached 184K paid seats as of Q1 2020, compared to 153K at end of Q4 2019, where of 93K in the Business segment and 91K in the School segment

Note: Including 18K DragonBox School licenses, The Kahoot! Group reached 202K paying users in Q1 2020

Invoiced revenue (in millions USD)

Total invoiced revenue in Q1 2020 of \$6.4m including \$6.0m from Kahoot! subscriptions and \$0.4m from DragonBox and Poio. The organic quarter-over-quarter growth was 21% in Q1 2020 vs Q4 2019

Automated invoiced revenue per region

Kahoot! has paying subscribers from automated sales in more than 150 countries,

USA and Canada represent approx. 46% of revenue (Europe approx. 37%) in Q1 2020

Key financial figures development

Key financial figures development

Financial figures presented in \$millions

	Q1-20	Q4-19	Q3-19	Q2-19	Q1-19
Invoiced revenue	6 4 ,	3 5 ,	3 4 ,	2 3 ,	2 0 ,
Q/Q Invoiced growth revenue	1 1 ,	1 9 ,	1 1 ,	0 3 ,	0 3 ,
Recognized revenue	4 5 ,	0 4 ,	2 2 ,	1 4 ,	2 1 ,
Total operating expenses	-5 4 ,	-5 1 ,	-3 9 ,	-3 4 ,	-3 3 ,
EBITDA	-1 0 ,	-1 2 ,	-1 7 ,	-2 0 ,	-2 2 ,
cash flow from Net operations	0 9 ,	1 2 ,	-0 6 ,	-1 5 ,	-1 9 ,
Cash and cash equivalents	34 0 ,	40 9 ,	13 4 ,	24 7 ,	26 5 ,
Full employee equivalents time	120	110	100	73	62

• 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 continues to improve quarter over quarter
• Solid cash position and cash flow from operations
• Continued efforts to develop the company, adding product and commercial talents

Profit & loss statement Q1 2020

Kahoot! Group - Interim Consolidated Profit & Loss Statement

Figures presented in USD thousands

	Q1 2020	Q1 2019	Growth	2019
Invoiced revenue	6 459	2 008	222 %	13 041
change unrecognized Net revenue	998 -1	-839		284 -4
Total recognized revenue	4 462	1 169	282 %	8 757
of goods sold Cost	-471	-132		-970
Payroll & consulting	-3 393	-2 189		-10 086
Other operating expenses	-1 563	-1 020		-4 694
Total operating expenses	-5 426	-3 341	62 %	-15 750
EBITDA	-965	-2 173		-6 993

• Invoiced revenue of \$6.4m in Q1 2020, compared to \$2.0m in Q1 2019 representing more than 220% growth
• Invoiced revenue growth compared to Q4 2019 was 21%
• Invoiced revenue for Kahoot! (excl. acquired units) totaled \$6.0m in Q1 2020, compared to \$2.0m in Q1 2019 (200% growth)
• Operating revenue for Q1 2020 was \$4.5m compared to \$1.2m in Q1 2019, representing 282% growth
• EBITDA for Q1 2020 was -\$1.0m compared to -\$2.2m in Q1 2019, an improvement of \$1.2m

Balance sheet Q1 2020

Kahoot! Group - Interim Consolidated Balance Sheet Statement Figures presented in USD thousands

	31.03.2020	31.03.2019	31.12.2019
Capitalized R&D	2 069	4 500	2 640
& Licenses Domain	171	203	204
Goodwill	19 044	-	24 086
Deferred tax asset	2 866	1 798	3 431
Total intangible fixed assets	24 150	6 501	30 360
and equipment Property	299	255	313
Financial fixed assets	-	-	-
Total fixed assets	24 450	6 756	30 674
Inventory/deferred of goods sold cost	143	-	147
receivable Accounts	1 253	638	1 322
Prepaid expenses and other current assets	1 057	697	564
Cash and cash equivalents	33 972	26 463	40 851
Total current assets	36 425	27 798	42 883
Total assets	60 875	34 553	73 557
Total equity	51 140	31 023	63 359
payable Accounts	1 040	300	940
Public duties payable	289	31	1 767
Deferred revenues	7 559	2 481	6 718
Other liabilities current	848	719	773
Total liabilities current	9 735	3 530	10 197
Total equity and liabilities	60 875	34 553	73 557

• Cash and cash equivalents as of 31.03.2020 were NOK 357m (\$34m)
• Deferred revenue reached \$7.6m per 31.03.2020 compared to \$2.5m per 31.03.2019, representing an increase of \$5.1m
• No long-term debt and equity ratio of 84%.
• Goodwill from the 2019 acquisitions of DragonBox and Poio are amortized linearly over 5 years and represented \$19m per 31.03.2020
• Significant shifts in the USD exchange rate impacts the balance sheet values compared to year-end 2019

Cash flow statement Q1 2020

Kahoot! Group - Interim Consolidated Cash Flow Statement

Figures presented in USD thousands

	Q1 2020	Q1 2019	2019 FY
Profit/(loss) before tax	-2 054	-2 443	-9 701
Depreciation and amortization	1 424	239	2 667
Changes in receivables accounts	-165	-245	-937
Changes in payables accounts	281	124	762
Changes in public duties payable	-258	-251	340
Changes in deferred revenues	2 156	839	5 065
Changes in other balance sheet items current	-448	-150	-915
flow from Net cash operating activities	937	-1 888	-2 719
Capitalized R&D	-	-	-
Acquisition of cash acquired , net	-	-	-9 755
of fixed Purchase tangible assets	-68	-82	-247
Net cash flow from investment activities	-68	-82	-10 002
Proceeds from equity issue	-1 057	245	25 958
Net cash flow from financing activities	-1 057	245	25 958
Translation differences	-6 691	-145	-677
Net change in cash and cash equivalents	-6 879	-1 869	12 559
Cash and cash equivalents beginning of period at	40 851	28 292	28 292
Cash and cash equivalents end of period at	33 972	26 423	40 851
Non-cash investing and financing transactions
Fair value of shares issued as acquisition consideration	-	-	14 647

• Positive cash flow from operations in Q1 2020 of \$0.9m (NOK 9m) compared to -\$1.9m in Q1 2019
• Limited negative cash flow from investing activities as R&D costs are expensed as they occur
• The negative cash flow from financing activities in Q1 2020 originates from duties payable from the Q4 2019 equity issue
• Significant shifts in USD exchange rate impacts translation differences on cash held

Forward looking statement

Guiding Q2 2020

• Invoiced revenue for the Kahoot! Group is expected to exceed \$8m in Q2 2020, representing 250% growth compared to Q2 2019, and 25% growth compared to Q1 2020
• Cash flow from operations in Q2 2020 is expected to exceed \$2m, representing 25% cash conversion of invoiced revenue

Guiding Full Year 2020

• For the full year 2020, the Kahoot! Group currently expects 100-150% invoiced revenue growth rate from proforma 2019 level. Invoiced proforma revenue for 2019 was \$15m
• Positive cash flow from operations for full year 2020

Target 2022

• Reach over \$100m in customer base value, indicating an MRR \$9-\$10m

Note: Due to fluctuating market conditions and extraordinary circumstances caused by Covid-19, it is in general more challenging to provide accurate guiding

Target Kahoot! MRR end of year

(in millions USD)

The Kahoot! learning platform 2020-2021

Summary

• Kahoot! is well positioned to provide solutions making learning awesome for everyone in a new situation for both schools, organisations and families around the world.
• Strong growth in active accounts, both free and paid in 2020
• Good growth in invoiced revenue in Q1, the trend continues into Q2
• Cash conversion is improving and solid financial cash position for non-organic growth
• Announcing key feature improvements for all user groups during Q2 2020
• Announcing the upcoming Kahoot EDU Summit event in June 2020
• Announcing Kahoot!360, the complete offering for corporate learning for all employees

Thank You!

About Kahoot!

Founded in 2013, Kahoot! started by delivering a quiz-based game to ensure attention, create engagement and provide knowledge in classrooms

Kahoot! is a globally recognized learning brand, from kindergarten to Wall Street

In the last 12 months, 218 million games were played with 1.3 billion participating players in over 200 countries

Kahoot! has commercial subscription editions available for all segments with a free basic version for personal use and teachers

Viral growth, currently adding millions of new accounts and more than 125K net new paid seats last twelve months

The goal is to become the leading global learning platform, extending current offerings and accelerating organic growth

The Kahoot! learning ecosystem

Embraced by teachers

Make learning awesome! 6m+ active teachers globally

Engaging learning experience 800m participating students LTM

Trusted by parents

Playful learning in a social setting 100m games played LTM

Valued by organizations

Engaging corporate learning 20m participating employees

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 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 Embraced by over 6 million teachers Loved by hundreds of millions of students Empowering students from learners to leaders

free access to Kahoot! Premium for all schools affected by COVID-19!

All prices per teacher per month All prices per teacher per month All prices per teacher per month

Millions share memorable moments! Practice at home Helping children learn to read Creating excitement for algebra and geometry

at home

Premium editions

Learning apps

\$5-25 From \$3/month

Family subscription

Introducing

(summer 2020)

Family subscription per family per month

Kahoot Study -The new self-study mode

Kahoot Study, a self-study mode, perfect for engaging individual study and study groups in different locations

Convert any of the millions of available kahoots to flashcards and enable students to better study any topic

Launch in Q2

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 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 Millions of employees playing Kahoot! 97% of the Fortune 500 is using Kahoot! Energizing audience in events of any size

at w or k at work

Premium editions

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

\$10 / \$20 / \$ 40

I n t ro d u cin g I n t ro d ucin g Introducing

Business suite Q 4 2019 Business suite

Q 4 2019 \$10 / \$20 / \$40 For teams & organizations

All prices per presenter/host per month All prices per presenter/host per month

Kahoot! customer growth goals 2022

The goal to reach a customer base value exceeding \$100m in 2022 is based on the following assumptions:

Shareholders overview

Kahoot! AS has a total of 129.4m common shares and more than 3,200 shareholders. The shares are listed on Merkur Market on Oslo

Kahoot! AS shareholders per May 6, 2020

	Shareholder	Shares	%
1	Group Datum	17 376 955	13,4 %
2	NORTHZONE VENTURES NORWAY AS	15 577 760	12,0 %
3	CREANDUM III LP	11 044 420	8,5 %
4	AS REAL-FORVALTNING	9 390 740	7,3 %
5	MICROSOFT GLOBAL FINANCE	6 940 000	5,4 %
6	KAM HOLDING AS	4 779 020	3,7 %
7	VERSVIK INVEST AS	4 620 692	3,6 %
8	Global Markets Citigroup Inc.	4 500 000	3,5 %
9	NEWBROTT AS	3 052 000	2,4 %
10	MP PENSJON PK	2 328 306	1,8 %
11	VERDIPAPIRFONDET NORGE SELEKTIV	2 239 293	1,7 %
12	GLITRAFJORD AS	2 000 000	1,5 %
13	Bank Luxembourg J.P. Morgan S.A.	2 000 000	1,5 %
14	GAMIFICATION AS	1 866 600	1,4 %
15	Brothers Brown Harriman & Co.	1 775 200	1,4 %
16	NORDA ASA	1 451 386	% 1,1
17	SANDEN AS	1 424 000	1,1 %
18	Bank Luxembourg J.P. Morgan S.A.	1 380 000	% 1,1
19	VERDIPAPIRFONDET DNB NORDEN	1 305 183	1,0 %
20	PATRICK MARCHAL AS	1 103 480	% 0,9
	Other	33 204 461	25,7 %
	Total outstanding shares	129 359 496	% 100,0
	Employee option pool	8 230 000
	Total no. of shares (fully diluted)	137 589 496

Kahoot! share information

	Ticker
Oslo Stock Exchange (Merkur Market):	KAHOOT-ME
Reuters:	KAHOOT-ME.OL
Bloomberg:	KAHOOTME:NO
Number of shares:	129,359,496
Employee option pool:	8,230,000
Total no. of shares (fully diluted):	137,589,496
Free float:	>95%
Share price (May 5, 2020):	NOK 66.00
Average daily trading volume YTD (shares):	214,000
Market Cap total (May 5, 2020)	NOK 8.5bn

Kahoot! cumulative players In millions

Kahoot! Highlights

2013

1.3bn

Cumulative players last twelve months

4.4bn

Cumulative players since +200K

Paying users

19m

Corporate participating players LTM

per second

10 Minutes average per game session

6m+

Active teachers on the platform

6.9 Games played

200+ Countries

active

100m

Kahoot! games on the platform

Make learning awesome