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Kahoot! ASA
Quarterly Report • Oct 30, 2019
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Quarterly Report
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Kahoot! AS
Quarterly Report Q3 - 2019
Kahoot! AS – Quarterly report – Q3 2019
OSLO, October 30, 2019 – Kahoot! AS, (KAHOOT-ME) today reported financial results for its fiscal quarter ended September 30, 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 over one billion participating players in more than 200 countries last twelve months.
Q3 2019 was another strong quarter and reflects focused execution by the Kahoot team now also including the acquired units Dragonbox and Poio. In total Kahoot grew invoiced revenue in Q3 2019 to \$3.4 million, a 269% year-over-year growth. The organic quarter-over-quarter growth for Kahoot was 42% in Q3 2019 vs Q2 2019 supported by an organic 140% quarter-over-quarter growth for the Kahoot School segment.
Highlights Q3 and YTD Q3 2019
- 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)
- Invoiced revenue of \$3.4m in Q3 2019, compared to \$0.9m in Q3 2018 and Invoiced revenue of \$7.7m YTD Q3 2019, compared to \$1.8m YTD Q3 2018
- Operating revenue of \$2.2m in Q3 2019, compared to \$0.6m in Q3 2018 and Operating revenue of \$4.8m YTD Q3 2019, compared to \$1.1m YTD Q3 2018
- EBITDA of -\$1.7m in Q3 2019, compared to -\$2.1m in Q3 2018 and EBITDA of -\$5.8m YTD Q3 2019, compared to -\$7.7m YTD Q3 2018
- Cash flow from operations of -\$0.6m in Q3 2019, compared to -\$1.9m in Q1 2019 and -\$1.5m in Q2 2019
- 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
- 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
- In October 2019 the company raised approx. \$25m in new equity in a private placement to institutional shareholders
Kahoot Group, headquartered in Norway, is an international organisation with 100 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 Q4 and the full year 2019, 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 on Group level
- 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 Revenues (MRR) to reach \$1m, with 150k paid seats by end of 2019
Reporting format
The Q3 2019 report is the first quarterly Kahoot report after listing on the Merkur Market. Kahoot has up until Q2 2019 reported a simplified P&L and Balance sheet per quarter in USD using N GAAP as accounting principles. As of Q3 2019 Kahoot will report on more detailed P&L and balance sheet, and a complete cash flow statement. Including in this report is the quarterly cash flow statements per quarter in 2019. The group will continue to report under N GAAP using USD as the presenting currency. See full P&L for a complete breakdown of organic and acquired growth.
For further information, please contact:
Julie Wessel, IR Phone: +47 993 72 451 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 2018, Kahoot! had over one 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 - Q3 2019
All figures in thousands USD
| As reported | ||||||
|---|---|---|---|---|---|---|
| Kahoot! | Acquisitions | Group | Group | |||
| Q3 2019 01.07-30.09 |
Q3 2019* 01.09-30.09 01.07-30.09 |
Q3 2019 | Q3 2018 01.07-30.09 |
Organic | Growth 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 | ||
| Depreciation Tangible Assets | -\$18 | -\$1 | -\$19 | |||
| Depreciation Intangible Assets | -\$218 | \$0 | -\$218 | |||
| Amortization Goodwill | -\$419 | \$0 | -\$419 | |||
| Total depreciation and amortization | -\$655 | -\$1 | -\$656 | |||
| EBIT | -\$2 205 | -\$140 | -\$2 345 | |||
| Net financial items | \$81 | -\$3 | \$78 | |||
| Profit before tax | -\$2 124 | -\$143 | -\$2 267 |
* 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 is using NGAAP and goodwill that are capitalized are amortized linear over 5 years. The Q3 2019 numbers includes one month 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. \$0.7m.
| P&L - Kahoot! GROUP - YTD Q3 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|
| All figures in thousands USD | As reported | As reported | ||||||
| Kahoot! YTD Q3 2019 |
Acquisitions Q3 2019* |
Group YTD Q3 2019 |
Group Q3 2018 |
Growth | Group 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 Payroll/Consulting Other OPEX |
-\$470 -\$6 533 -\$3 283 |
-\$61 -\$233 -\$34 |
-\$531 -\$6 765 -\$3 317 |
-\$50 -\$6 210 -\$2 523 |
-\$160 -\$8 104 -\$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 | |||
| Depreciation Tangible Assets Depreciation Intangible Assets Amortization Goodwill |
-\$47 -\$667 -\$419 |
-\$1 \$0 \$0 |
-\$48 -\$667 -\$419 |
|||||
| Total depreciation and amortization | -\$1 133 | -\$1 | -\$1 134 | |||||
| EBIT | -\$6 834 | -\$140 | -\$6 974 | |||||
| Net financial items | \$146 | -\$3 | \$143 | |||||
| Profit before tax | -\$6 688 | -\$143 | -\$6 831 |
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 |
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 |
| Kahoot! shareholders per 29 October 2019 | |||||||
|---|---|---|---|---|---|---|---|
| Shareholder | Shares | % | |||||
| 1 Datum Group | 17 376 955 | 13.4 % | |||||
| 2 NORTHZONE VII L.P. | 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 WWTK HOLDING AS | 3 868 636 | 3.0 % | |||||
| 10 NEWBROTT AS | 3 052 000 | 2.4 % | |||||
| 11 VERDIPAPIRFONDET NORGE SELEKTIV | 2 825 949 | 2.2 % | |||||
| 12 NORDA ASA | 2 708 704 | 2.1 % | |||||
| 13 MP PENSJON PK | 2 337 332 | 1.8 % | |||||
| 14 VERDIPAPIRFONDET DNB NORGE | 2 251 282 | 1.7 % | |||||
| 15 GLITRAFJORD AS | 2 000 000 | 1.5 % | |||||
| 16 GAMIFICATION AS | 1 866 600 | 1.4 % | |||||
| 17 SANDEN AS | 1 624 000 | 1.3 % | |||||
| 18 SKØIEN AS | 1 350 159 | 1.0 % | |||||
| 19 ADRIAN AS | 1 052 250 | 0.8 % | |||||
| 20 HANDELSBANKEN Nordiska Smabolag | 1 015 000 | 0.8 % | |||||
| Other | 29 177 997 | 22.6 % | |||||
| 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 29th of October Kahoot! AS has 805 shareholders. The shares are listed on Merkur Market on Oslo Stock Exchange with ticker code KAHOOT-ME.
On the 22nd of October 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 million (approximately \$25m) in gross proceeds from the issuance of new shares to investors and approximately NOK 8.8 million (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.
| Kahoot - All Active Accounts - Last twelve months - World Wide | ||||||||
|---|---|---|---|---|---|---|---|---|
| LTM 30.09.2019 |
LTM 30.09.2019 |
LTM 30.09.2019 |
||||||
| Kahoot Accounts | YoY | Hosted Games | YoY | Participants | YoY | |||
| (Unique) | Growth | Growth (non unique) Growth | ||||||
| All Accounts (hosting) | 14 777 009 | 30 % | 203 258 219 | 30 % | 1 125 967 695 | 18 % | ||
| By Territory | ||||||||
| USA and Canada | 7 541 374 | 23 % | 106 912 494 | 22 % | 667 660 473 | 10 % | ||
| Europe | 4 494 977 | 37 % | 57 825 552 | 40 % | 274 013 095 | 29 % | ||
| Asia Pacific | 1 502 217 | 33 % | 20 080 381 | 33 % | 109 983 885 | 26 % | ||
| Latin America and The Caribbean | 809 948 | 67 % | 11 217 557 | 63 % | 49 169 666 | 62 % | ||
| Africa, The Middle East, and India | 428 493 | 36 % | 7 222 235 | 40 % | 25 140 576 | 35 % | ||
| 14 777 009 | 203 258 219 | 1 125 967 695 | ||||||
| By Segment | ||||||||
| Teachers | 5 357 077 | 24 % | 76 227 967 | 19 % | 786 070 910 | 14 % | ||
| Business | 375 701 | 9 % | 2 654 344 | 0 % | 18 935 781 | 0 % | ||
| Students/Social | 9 044 232 | 36 % | 124 375 908 | 40 % | 320 961 004 | 31 % | ||
| 14 777 009 | 203 258 219 | 1 125 967 695 |