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Kahoot! ASA
Quarterly Report • Oct 30, 2019
3641_rns_2019-10-30_1d661157-846a-482b-aedf-fdc628c9d9f6.pdf
Quarterly Report
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Make learning awesome
Q3 presentation October 30th 2019
Our vision is to build the leading learning platform in the world
Highlights Q3 YTD 2019
- Strong usage growth on the Kahoot platform with 30% growth in active accounts, 30% growth in hosted games and 18% growth in participating players last twelve months
- Good growth in paid seats, reaching 120K in Q3 2019, increased with 80K YTD
- YTD Q3 Invoiced revenue growth of more than 300% to \$7.7m (operating revenues \$4.8m)
- Improved EBITDA of -\$5.8m YTD Q3 2019, compared to -\$7.7m YTD Q3 2018
- Improved cash flow from operations of -\$0.6m in Q3 2019, compared to -\$3.4m in H1 2019
- Solid financial cash position with \$13m by end of Q3 and \$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 1.1bn participating players (18% YoY growth), over 200m games played (30% growth YoY) hosted by 14.8m active accounts (30% YoY growth)
Continued growth in paid seats
Work School
Paid seat per quarter (in thousands)
Kahoot! reached 120K paid seats as of Q3 2019, compared to 95K end of Q2 2019, where of 63K in the Business segment and 57K in the School segment
Invoiced revenue (in millions USD)
Q3 2019 invoiced revenue grew to \$3.3m. The organic quarter-over-quarter growth for Kahoot was 42% in Q3 2019 vs Q2 2019
Automated invoiced revenue per region
Kahoot! has paying subscribers from automated sales in more than 150 countries USA and Canada represent approx. 53% of revenue (Europe approx. 26%) in Q3 2019
Not including DragonBox and Poio
Profit & Loss Statement Q3 2019
P&L - Kahoot! GROUP - Q3 2019
All figures in thousands USD
| As reported | |||||
|---|---|---|---|---|---|
| Kahoot! | Acquisitions | Group | Group | ||
| Q3 2019 | Q3 2019* | Q3 2019 | Q3 2018 | Growth | |
| 01.07-30.09 | 01.09-30.09 | 01.07-30.09 | 01.07-30.09 | Organic Total |
|
| Invoiced Revenue | \$3 263 | \$147 | \$3 411 | \$925 | 253 % 269 % |
| Net change unrecognized revenues | -\$1 245 | \$40 | -\$1 205 | -\$334 | |
| Total Recognized Revenue | \$2 018 | \$188 | \$2 206 | \$591 | 242 % 273 % |
| COGS | -\$181 | -\$61 | -\$242 | -\$24 | |
| Payroll/Consulting | -\$2 369 | -\$233 | -\$2 602 | -\$1 852 | |
| Other OPEX | -\$1 018 | -\$34 | -\$1 052 | -\$799 | |
| Total Operating Expenses | -\$3 568 | -\$327 | -\$3 895 | -\$2 675 | 33 % 46 % |
| EBITDA | -\$1 550 | -\$139 | -\$1 689 | -\$2 085 |
- 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
- Invoiced revenue of \$3.4m in Q3 2019, compared to \$0.9m in Q3 2018
- Operating revenue of \$2.2m in Q3 2019, compared to \$0.6m in Q3 2018
- EBITDA of -\$1.7m in Q3 2019, compared to -\$2.1m in Q3 2018
Profit & Loss Statement YTD Q3 2019
P&L - Kahoot! GROUP - YTD Q3 2019
All figures in thousands USD
| Kahoot! | Acquisitions | Group | As reported Group |
As reported Group |
||
|---|---|---|---|---|---|---|
| YTD Q3 2019 | Q3 2019* | YTD Q3 2019 | Q3 2018 | Growth | 2018 | |
| 01.01-30.09 | 01.09-30.09 | 01.01-30.09 | 01.01-30.09 | Organic Total |
01.01-31.12 | |
| Invoiced Revenue | \$7 575 | \$147 | \$7 722 | \$1 812 | 318 % 326 % |
\$3 480 |
| Net change unrecognized revenues | -\$2 989 | \$40 | -\$2 949 | -\$717 | -\$1 549 | |
| Total Recognized Revenue | \$4 585 | \$188 | \$4 773 | \$1 095 | 319 % 336 % |
\$1 932 |
| COGS | -\$470 | -\$61 | -\$531 | -\$50 | -\$160 | |
| Payroll/Consulting | -\$6 533 | -\$233 | -\$6 765 | -\$6 210 | -\$8 104 | |
| Other OPEX | -\$3 283 | -\$34 | -\$3 317 | -\$2 523 | -\$3 455 | |
| Total Operating Expenses | -\$10 286 | -\$327 | -\$10 614 | -\$8 783 | 17 % 21 % |
-\$11 719 |
| EBITDA | -\$5 701 | -\$139 | -\$5 841 | -\$7 688 | -\$9 788 |
- Invoiced revenue of \$7.7m YTD Q3 2019, compared to \$1.8m YTD Q3 2018
- Operating revenue of \$4.8m YTD Q3 2019, compared to \$1.1m YTD Q3 2018
- EBITDA of -\$5.8m YTD Q3 2019, compared to -\$7.7m YTD Q3 2018
Balance sheet Q3 2019
Balance sheet - Kahoot! GROUP
All figures in thousands USD
| 30.09.2019 | 30.09.2018 | 31.12.2018 | |
|---|---|---|---|
| Capitalized R&D | \$2 785 | \$4 681 | \$3 614 |
| Licenses / Domain | \$193 | \$211 | \$204 |
| Goodwill | \$24 713 | \$0 | \$0 |
| Deferred tax asset | \$3 341 | \$1 870 | \$3 522 |
| Total intangible fixed assets | \$31 034 | \$6 763 | \$7 340 |
| Property and equipment | \$273 | \$54 | \$142 |
| Financial fixed assets | \$6 | \$0 | -\$56 |
| Total fixed assets | \$31 313 | \$6 818 | \$7 427 |
| Inventory/Deferred COGS | \$194 | \$0 | \$0 |
| Accounts receivable | \$1 268 | \$426 | \$384 |
| Prepaid expenses and other current assets | \$639 | \$396 | \$542 |
| Cash and cash equivalents | \$13 400 | \$13 012 | \$28 292 |
| Total current assets | \$15 501 | \$13 833 | \$29 218 |
| Total assets | \$46 814 | \$20 651 | \$36 645 |
| Total equity | \$40 300 | \$19 089 | \$34 075 |
| Accounts payable | \$481 | \$210 | \$178 |
| Public duties payable | \$39 | \$148 | \$288 |
| Deferred revenues | \$5 275 | \$857 | \$1 652 |
| Other current liabilities | \$718 | \$347 | \$452 |
| Total current liabilities | \$6 514 | \$1 562 | \$2 570 |
| Total equity and liabilities | \$46 814 | \$20 651 | \$36 645 |
Kahoot AS, listed on Merkur Market, has 805 shareholders per October 29, 2019.
On October 22, 2019 Kahoot announced a successful Private Placement of 7,750,000 shares at price NOK 38 per share. Included in the 7,750,000 shares were 1,750,000 shares exercised from fully vested employee options.
Through the Private Placement, the Company raised approximately NOK 228 millions (approximately \$25m) in gross proceeds from the issuance of new shares to investors and approximately NOK 8.8 millions (approximately \$0.95m) from the exercise of employee options.
The net proceeds from the Private Placement will be used to further grow the Company, including allowing the Company to pursue value-creating non-organic opportunities.
Cash flow statement YTD Q3 2019
Cash flow - Kahoot! GROUP
All figures in thousands USD
| Q1 2019 | Q2 2019 | Q3 2019 | YTD Q3 2019 | |
|---|---|---|---|---|
| Profit/(loss) before tax | -\$2 443 | -\$2 121 | -\$2 267 | -\$6 831 |
| Depreciation and amortisation | \$239 | \$239 | \$656 | \$1 134 |
| Changes in AR | -\$245 | -\$201 | -\$341 | -\$787 |
| Changes in AP | \$124 | \$143 | -\$41 | \$226 |
| Changes in Public duties Payable | -\$251 | \$203 | -\$454 | -\$502 |
| Changes in Deferred revenues | \$839 | \$854 | \$1 186 | \$2 879 |
| Changes in other current balance sheet items | -\$150 | -\$568 | \$693 | -\$24 |
| Net cash flow from operating activities | -\$1 888 | -\$1 451 | -\$567 | -\$3 906 |
| Capitalized R&D | \$0 | \$0 | \$0 | \$0 |
| Acquisition, net of cash acquired | \$0 | -\$116 | -\$9 426 | -\$9 541 |
| Purchase of tangible fixed assets | -\$82 | -\$28 | -\$64 | -\$173 |
| Net cash flow from investing activities | -\$82 | -\$144 | -\$9 489 | -\$9 714 |
| Proceeds from equity issue | \$245 | \$0 | \$0 | \$245 |
| Net cash flow from financing activities | \$245 | \$0 | \$0 | \$245 |
| Translation differences | -\$145 | -\$127 | -\$1 244 | -\$1 516 |
| Net change in cash and cash equivalents | -\$1 869 | -\$1 722 | -\$11 301 | -\$14 892 |
| Cash and cash equivalents at beginning of period | \$28 292 | \$26 423 | \$24 701 | \$28 292 |
| Cash and cash equivalents at end of period | \$26 423 | \$24 701 | \$13 400 | \$13 400 |
| Non-cash investing and financing transactions | ||||
| Fair value of shares issued as acuistion consideration | \$14 647 | \$14 647 |
• Cash flow from operating activities of -\$0.6m in Q3 2019, compared to -\$1.9m in Q1 2019 and -\$1.5m in Q2 2019
Forward looking statement
For Q4 and FY2019, Kahoot currently expects:
- Invoiced revenue on Group level to reach \$16-17m in 2019 including full year proforma revenue from acquired units, approx. \$3m
- Invoiced revenue quarter-on-quarter organic growth of 70-80% in Q4 2019, up from 42% quarter-on-quarter growth in Q3 2019
- Positive cash flow from operations in Q4 (Group)
- The cost base at Group level will be \$15.5m of which the Kahoot unit will be \$14m, a 20% increase from 2018
- Kahoot! Monthly Recurring Revenue (MRR) to reach \$1m, with 150k paid seats by end of 2019
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 over 1.1 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 100k net new paid seats annually
The goal is to become the leading global learning platform, extending current offerings and accelerating organic growth
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 (4Q19)
Higher Education
\$5 / \$10 / \$15 (4 Q 19)
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!
Fam ily subscription per fam ily per m onth
ALIFTOFF
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
\$TBA (Q4 2019)
All prices per presenter/host per month
Kahoot! Overview
Scalable cloud platform
Large market opportunity1
Recognized market leader
New sales 20192 YoY growth in billed revenue
Net new paid seats in 2019
300% +100k \$12M 90-100%
Net dollar retention
1. Based on estimated EdTech market in 2020 from Goldman Sachs Education Technology Sector trends and market update August 2019 2. Not including Poio and DragonBox