AI Terminal
Kahoot! ASA
Quarterly Report • Feb 27, 2020
3641_rns_2020-02-27_d21c9cbc-92c7-442b-a3ab-4409a0cbc910.pdf
Quarterly Report
Open in ViewerOpens in native device viewer
Kahoot! AS
Quarterly Report Q4 - 2019
Kahoot! AS – Quarterly report – Q4 2019
OSLO, February 27, 2020 – Kahoot! AS, (KAHOOT-ME) today reported financial results for its fiscal quarter ended December 31st, 2019. Kahoot is a global learning platform that makes it easy to create, share and play games or trivia quizzes at school, at home and at work, with 1.2 billion participating players in more than 200 countries last twelve months.
Q4 2019 was another strong quarter and reflects focused execution by the Kahoot team now also including the acquired units DragonBox and Poio. The Kahoot Group, including acquired units, grew invoiced revenue in Q4 2019 to \$5.3m, a 216% year-over-year growth and a pro forma full year 2019 including acquired units reached invoiced revenue of \$15.2m. Recognized revenue in Q4 2019 reached \$4.0m, a 376% YoY growth and recognized revenue full year 2019 reached \$8.8m, a 353% growth from 2018. In 2019, The Kahoot Group reached a total of 170,000 paying users in Q4 2019.
Highlights Q4 and 2019
- The user growth on the platform last twelve months continued, reaching 1.2bn participating players (16% YoY growth), over 210m games played (22% YoY growth) hosted by 15.8m active accounts (26% YoY growth)
- 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
- 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. Pro forma invoiced revenue full year 2019 including acquired units reached \$15.2m
- 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
- Kahoot Group had a positive cash flow from operations of \$1.2m in Q4 2019 (improvement from -\$0.6m in Q3 2019) and for the full year 2019 -\$2.7m
- 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
- MRR (Monthly recurring revenue) reached \$1.1m for Kahoot subscriptions and \$0.1m for Dragonbox School. Total MRR for the group is \$1.2m as of 31.12.2019 corresponding to an ARR (Annual Recurring Revenue) of \$14.4m
- 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. In addition, DragonBox School reached 18K paid seats for the 2019/2020 school year, bringing the total number of paid seats for the group to 170K as of Q4 2019
- The acquisition of Poio and DragonBox were completed by the end of August 2019. Both companies are fully consolidated in the Kahoot Group from September 1, 2019
Kahoot Group, headquartered in Norway, is an international organisation with 110 employees with 30 different nationalities located in five offices in Norway, USA, France, England and Finland. Kahoot has users in over 200 countries and paying customer in over 150 countries.
Forward looking statement
For Q1 2020 and the full year 2020, Kahoot currently expects:
- The company currently expects invoice growth rate in 2020 of 100-150% growth from proforma 2019 level, with positive cash flow from operations
- Invoiced revenues in Q1 2020 is expected to be 10-15% higher than Q4 2019, with positive cash flow from operations
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
The information contained in this statement has not been audited and may be subject to change.
For further information, please contact:
Eilert Hanoa, CEO Phone: +47 928 32 905 Email: [email protected]
Martin Kværnstuen, CFO Phone: +47 930 14 547 Email: [email protected]
About Kahoot! AS
Kahoot! is a global learning platform that makes it easy to create, share and play games or trivia quizzes. Kahoot! is used in different settings – in schools, corporations, social settings and cultural events. In 2019, Kahoot! had 1.2 billion participating players in more than 200 countries. Kahoot! is on a mission to make learning awesome and build the leading learning platform in the world that connects its users to premium content and features. The company is headquartered in Norway.
P&L - Kahoot! GROUP - Q4 2019 / 2019
All figures in thousands USD
| As reported | As reported | |||||
|---|---|---|---|---|---|---|
| Group | Group | Group | Group | |||
| Q4 2019 | Q4 2018 | Growth | 2019 | 2018 | Growth | |
| Invoiced Revenue | \$5 319 | \$1 669 | 219 % | \$13 041 | \$3 480 | 275 % |
| Net change unrecognized 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 | ||
| Depreciation Tangible Assets | -\$25 | -\$73 | ||||
| Depreciation Intangible Assets | -\$211 | -\$878 | ||||
| Amortization Goodwill | -\$1 297 | -\$1 716 | ||||
| Total depreciation and amortization | -\$1 533 | -\$2 667 | ||||
| EBIT | -\$2 686 | -\$9 659 | ||||
| Net financial items | -\$184 | -\$42 | ||||
| Profit before tax | -\$2 870 | -\$9 701 |
* The acquisition of Poio and Dragonbox were completed by the end of August 2019. Both companies are consolidated in the Kahoot Group starting from 01.09.2019.
Kahoot Group including acquired units from Aug 2019: Invoiced revenue of \$5.3m in Q4 2019, compared to \$1.7m in Q4 2018 (219% YoY growth) and Invoiced revenue of \$13.0m in 2019, compared to \$3.5m in 2018 (275% YoY growth).
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)
Kahoot is using NGAAP and goodwill that are capitalized are amortized linear over 5 years. The Q4 2019 numbers includes three months of Goodwill amortization. The quarterly amortization of Goodwill going forward will be approx. \$1.2m.
Kahoot capitalized R&D until 2017. From 2018 all R&D related costs are expensed. Depreciation of intangible assets are deprecation of R&D capitalized before revenue models were implemented. The quarterly depreciation of intangible assets going forward will be approx. \$0.2m.
Balance sheet - Kahoot! GROUP
All figures in thousands 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 |
| Property and equipment | \$313 | \$142 |
| Financial fixed assets | \$0 | -\$56 |
| Total fixed assets | \$30 674 | \$7 427 |
| Inventory/Deferred COGS | \$147 | \$0 |
| Accounts receivable | \$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 |
| Accounts payable | \$940 | \$178 |
| Public duties payable | \$1 767 | \$288 |
| Deferred revenues | \$6 718 | \$1 652 |
| Other current liabilities | \$773 | \$452 |
| Total current liabilities | \$10 197 | \$2 570 |
| Total equity and liabilities | \$73 557 | \$36 645 |
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 current balance sheet items | -\$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, net of cash acquired | \$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 |
| Net cash flow from financing activities | \$245 | \$0 | \$0 | \$25 713 | \$25 958 |
| Translation differences | -\$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 at beginning of period | \$28 292 | \$26 423 | \$24 701 | \$13 400 | \$28 292 |
| Cash and cash equivalents at end of period | \$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 |
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 | |
| Total no. of shares (fully diluted) | 137 589 496 |
As of 25th of February 2020 Kahoot! AS has 2,719 shareholders. The shares are listed on Merkur Markets on Oslo Stock Exchange with ticker code KAHOOT-ME.
| Kahoot - All Active Accounts - Last twelve months - World Wide | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| LTM 31.12.2019 Kahoot Accounts |
YoY | LTM 31.12.2019 Hosted Games |
YoY | LTM 31.12.2019 Participants |
YoY | ||||
| (Unique) | Growth | Growth | (non unique) | Growth | |||||
| All Accounts (hosting) | 15 783 265 | 26 % | 210 911 981 | 22 % | 1 188 069 746 | 16 % | |||
| By Territory (free and paid) | |||||||||
| USA and Canada | 8 084 654 | 22 % | 108 905 828 | 15 % | 689 540 877 | 9 % | |||
| Europe | 4 813 059 | 29 % | 61 016 231 | 30 % | 298 097 343 | 26 % | |||
| Asia Pacific | 1 559 195 | 28 % | 21 193 599 | 26 % | 118 551 173 | 24 % | |||
| Latin America and The Caribbean | 872 766 | 57 % | 12 146 565 | 52 % | 54 609 122 | 57 % | |||
| Africa, The Middle East, and India | 453 591 30 % |
7 649 758 | 31 % | 27 271 231 | 32 % | ||||
| 15 783 265 | 210 911 981 | 1 188 069 746 | |||||||
| By Segment (free and paid) | |||||||||
| Teachers | 5 666 069 | 22 % | 77 540 275 | 14 % | 824 938 179 | 14 % | |||
| Business* | 357 491 | 0 % | 2 693 564 | -5 % | 18 503 323 | -7 % | |||
| Students/Social | 9 759 705 | 30 % | 130 678 142 | 29 % | 344 628 244 | 25 % | |||
| 15 783 265 | 210 911 981 | 1 188 069 746 |
*During 2019 Kahoot introduced limitation to non-paying business accounts for large audiences
| Kahoot - Paid accounts and DragonBox School | ||||||||
|---|---|---|---|---|---|---|---|---|
| Kahoot Paid accounts (seats) | Q4 2019 | YoY 12.31.19 Growth |
Q4 2018 12.31.18 |
Q1 2019 | Q2 2019 31.03.19 30.06.19 30.09.19 |
Q3 2019 | ||
| Teachers | 74 369 | 388 % | 15 239 | 32 780 | 40 770 | 57 523 | ||
| Business | 78 345 | 212 % | 25 108 | 37 790 | 54 343 | 63 045 | ||
| 152 714 | 279 % | 40 347 | 70 570 | 95 113 | 120 568 | |||
| DragonBox School ** | 18 150 | 231 % | 5 490 | 5 490 | 5 490 | 18 150 | ||
| Group Total | 170 864 | 273 % | 45 837 | 76 060 | 100 603 | 138 718 |
**DragonBox Math curriculum 1 st -3 rd grade (NO and FI)