Kahoot! ASA

Investor Presentation • Feb 27, 2020

Make learning awesome

Q4 2019 presentation February 27th 2020

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

Kahoot! overview

Scalable cloud platform

Large market opportunity*

Recognized market leader

Viral business model

Participating players YoY

Net new paid seats in 2019

Active teachers on the platform

1.2B 110k 5M+ 90-100%

Net dollar retention

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

New and existing customers are making learning awesome

Highlights Q4 and 2019

• Strong usage growth on the Kahoot platform with 26% growth in active accounts, 22% growth in hosted games and 16% growth in participating players last twelve months
• Kahoot 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
• Good growth in paid seats, reaching 170K in Q4 2019 for the group, with 152K from Kahoot and 18K from DragonBox School
• 2019 Invoiced revenue growth of 275% to \$13.0m (Pro forma full year 2019 \$15.2m)
• Positive cash flow from operations of \$1.2m in Q4 2019, compared to -\$0.6m in Q3 2019
• Solid financial cash position with \$40.9m by end of Q4 including \$25m in new equity from a private placement in October 2019

Continued growth in accounts and usage

Last twelve months (in millions)

The user growth on the platform last twelve months continued, reaching 1.2bn participating players (16% YoY growth), over 210m games played (22% growth YoY) hosted by 15.8m active accounts (26% YoY growth)

Continued growth in paid seats

Work School

Paid seat per quarter (in thousands)

Kahoot! reached 152K paid seats as of Q4 2019, compared to 120K end of Q3 2019, where of 78K in the Business segment and 74K in the School segment

Invoiced revenue (in millions USD)

Q4 2019 invoiced revenue grew to \$5.0m. The organic quarter-over-quarter growth for Kahoot was 54% in Q4 2019 vs Q3 2019

Not including DragonBox and Poio

Automated invoiced revenue per region

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

USA and Canada represent approx. 48% of revenue (Europe approx. 35%) in Q4 2019

Not including DragonBox and Poio

Profit & Loss Statement Q4 and 2019

P&L - Kahoot! GROUP - Q4 2019 / 2019

All figures in thousands USD

	reported As		reported As
	Group	Group		Group	Group
	Q4 2019	Q4 2018	Growth	2019	2018	Growth
Invoiced Revenue	\$5 319	\$1 669	219 %	\$13 041	\$3 480	275 %
change unrecognized Net revenues	\$1 335 -	\$832 -		\$4 284 -	\$1 549 -
Total Recognized Revenue	\$3 984	\$837	376 %	\$8 757	\$1 932	353 %
COGS	\$439 -	\$110 -		\$970 -	\$160 -
Payroll/Consulting	\$3 320 -	\$1 895 -		\$10 086 -	\$8 104 -
Other OPEX	\$1 377 -	\$932 -		\$4 694 -	\$3 455 -
Total Operating Expenses	-\$5 137	-\$2 936	75 %	-\$15 750	-\$11 719	34 %
EBITDA	-\$1 153	-\$2 100		-\$6 993	-\$9 788

• Invoiced revenue of \$5.3m in Q4 2019, compared to \$1.7m in Q4 2018 and invoiced revenue of \$13.0m in 2019, compared to \$3.5 in 2018. Proforma invoiced revenue full year 2019 including acquired units reached \$15.2m
• Kahoot organic growth: Invoiced revenue of \$5.0m in Q4 2019, compared to \$1.7m in Q4 2018 (197% YoY growth) and Invoiced revenue of \$12.5m in 2019, compared to \$3.5m in 2018 (260% YoY growth)
• Operating revenue of \$4.0m in Q4 2019, compared to \$0.8m in Q4 2018 and Operating revenue of \$8.8m in 2019, compared to \$1.9m in 2018
• EBITDA of -\$1.2m in Q4 2019, compared to -\$2.1m in Q4 2018 and EBITDA of -\$7.0m in 2019, compared to -\$9.8m in 2018

Balance Sheet Q4 2019

Balance sheet - Kahoot! GROUP
All figures thousands in USD
	31 12 2019	31 12 2018
Capitalized R&D	\$2 640	\$3 614
/ Licenses Domain	\$204	\$204
Goodwill	\$24 086	\$0
Deferred tax asset	\$3 431	\$3 522
Total intangible fixed assets	\$30 360	\$7 340
and equipment Property	\$313	\$142
fixed Financial assets	\$0	-\$56
Total fixed assets	\$30 674	\$7 427
Inventory/Deferred COGS	\$147	\$0
receivable Accounts	\$1 322	\$384
Prepaid expenses and other current assets	\$564	\$542
Cash and cash equivalents	\$40 851	\$28 292
Total current assets	\$42 883	\$29 218
Total assets	\$73 557	\$36 645
Total equity	\$63 359	\$34 075
payable Accounts	\$940	\$178
Public duties payable	\$1 767	\$288
Deferred revenues	\$6 718	\$1 652
Other liabilities current	\$773	\$452
Total liabilities current	\$10 197	\$2 570
Total equity and liabilities	\$73 557	\$36 645

• Cash and cash equivalents as of 31.12.2019 were \$40.9m including proceeds of approx. \$25m from the October 2019 funding round, a private placement to institutional shareholders
• Deferred revenues reached \$6.7m per 31.12.19, increased from \$1.7m per 31.12.18
• No long-term debt and equity ratio of 86%
• Goodwill from acquired units in 2019 after depreciation is \$24m end of year.

Cash flow statement Q4 2019

Cash flow - Kahoot! GROUP

All figures in thousands USD

	Q1 2019	Q2 2019	Q3 2019	Q4 2019	2019
Profit/(loss) before tax	-\$2 443	-\$2 121	-\$2 267	-\$2 870	-\$9 701
Depreciation and amortisation	\$239	\$239	\$656	\$1 533	\$2 667
Changes in AR	-\$245	-\$201	-\$341	-\$150	-\$937
Changes in AP	\$124	\$143	-\$41	\$536	\$762
Changes in Public duties Payable	-\$251	\$203	-\$454	\$842	\$340
Changes in Deferred revenues	\$839	\$854	\$1 186	\$2 186	\$5 065
Changes in other balance sheet items current	-\$150	-\$568	\$693	-\$891	-\$915
Net cash flow from operating activities	-\$1 888	-\$1 451	-\$567	\$1 187	-\$2 719
Capitalized R&D	\$0	\$0	\$0	\$0	\$0
Acquisition of cash acquired , net	\$0	-\$116	-\$9 426	-\$214	-\$9 755
Purchase of tangible fixed assets	-\$82	-\$28	-\$64	-\$74	-\$247
Net cash flow from investing activities	-\$82	-\$144	-\$9 489	-\$288	-\$10 002
Proceeds from equity issue	\$245	\$0	\$0	\$25 713	\$25 958
flow from financing activities Net cash	\$245	\$0	\$0	\$25 713	\$25 958
differences Translation	-\$145	-\$127	-\$1 244	\$839	-\$677
Net change in cash and cash equivalents	-\$1 869	-\$1 722	-\$11 301	\$27 451	\$12 559
Cash and cash equivalents beginning of period at	\$28 292	\$26 423	\$24 701	\$13 400	\$28 292
Cash equivalents of period and cash at end	\$26 423	\$24 701	\$13 400	\$40 851	\$40 851
Non-cash investing and financing transactions
Fair value of shares issued as acuistion consideration			\$14 647		\$14 647

• Strong improvement in cash flow from operations in Q4 2019 due to growth in invoiced revenue
• The Kahoot Group had a positive cash flow from operations of \$1.2m in Q4 2019, improvement from -\$0.6m in Q3 2019

Forward looking statement

For Q1 2020 and FY2020, Kahoot! currently expects:

• Invoice growth rate in 2020 of 100-150% from proforma 2019 level, with positive cash flow from operations
• Invoiced revenue in Q1 2020 to be 10-15% higher than Q4 2019, with positive cash flow from operations
• Kahoot will launch several new initiatives the coming months, including Kahoot Study, a selfstudy feature for engaging individual study and study groups in different locations

As previously indicated by the company, the Board of Directors has decided to start preparing the company to move to a main list during the first half of 2021

Kahoot! MRR end of year, in millions USD

Target 2022: Reach over \$100m in customer base value, indicating an MRR \$9-\$10m

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, over 200 million games were played with 1.2 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 110K net new paid seats annually

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! 5M+ 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

Kahoot! at school

Embraced by over 5 million teachers Loved by hundreds of millions of students Empowering students from learners to leaders

Kahoot!

All schools (K-12)

\$1 / \$3 / \$6

Higher Education

\$5 / \$10 / \$15

All prices per teacher per month

Kahoot] at home

Millions share memorable moments!

Helping Practice children learn at home to read

Creating excitement for algebra and geometry

Kahoot!

Introducing

Kahoot] at work

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

Kahoot!

at work

For professionals

\$10 / \$20 / \$40

Introducing Business suite

For teams & organisations

All prices per presenter/host per month

The Kahoot! learning platform 2020-2021

Kahoot! Customer growth goals 2022

The goal to reach a customer base value of \$100-125m in 2022, based on the following assumptions:

@ School @ Home

• 5-8% of Active Teachers on a paid subscription (400-600K) with increased active teacher base (free and paid) with 50% (7.5m)
• Monthly price \$3-5 per teacher (ARR \$18-28m)
• Increase Students on full math curriculum to 200K

• Monthly price \$2-4 per student (ARR \$5-9m)

• 600-800K subscriptions converted from todays Social accounts and premium app purchases

• Monthly price \$3-5 per user (families) (ARR \$25- 38m)

@ Work

• 400-500K presenters on paid subscriptions
• Monthly price \$10-20 per user (ARR \$54-72m)
• 500K employees on corporate learning • Monthly price \$1-5 per employee (ARR \$10-15m)

Goals as presented June 2019

Shareholders

Kahoot! AS has a total of 129.4m common shares and approx. 2,700 shareholders. The shares are listed on Merkur Market on Oslo Stock Exchange with ticker code KAHOOT-ME

Kahoot! shareholders per 25 February 2020

Shareholder	Shares	%
1 Datum Group	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/K! invest	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 Citigroup Global Markets Inc.	4 500 000	3.5 %
9 NEWBROTT AS	3 052 000	2.4 %
10 VERDIPAPIRFONDET NORGE SELEKTIV	2 886 382	2.2 %
11 NORDA ASA	2 516 386	1.9 %
12 MP PENSJON PK	2 307 756	1.8 %
13 VERDIPAPIRFONDET DNB NORGE	2 009 280	1.6 %
14 GLITRAFJORD AS	2 000 000	1.5 %
15 GAMIFICATION AS	1 866 600	1.4 %
16 SANDEN AS	1 424 000	1.1 %
17 Brown Brothers Harriman & Co.	1 309 059	1.0 %
18 VERDIPAPIRFONDET DNB NORDEN	1 305 183	1.0 %
19 PATRICK MARCHAL AS	1 103 480	0.9 %
20 EKHOLDT HUYNH AS	1 103 480	0.9 %
Other	32 246 303 24.9 %
Total outstading shares	129 359 496 100.0 %
Employee option pool	8 230 000
(fully diluted) Total no. of shares	137 589 496