Kahoot! ASA

Earnings Release • Jul 2, 2020

OSLO, July 2, 2020 - Kahoot! AS, (KAHOOT-ME) Trading Update Q2 2020

Q2 2020 was another strong quarter and reflects focused execution by the team in the Kahoot! Group. The Kahoot! Group grew invoiced revenue in Q2 2020 to \$9.6m, a 317% increase from reported invoiced revenue in Q2 2019. The quarter over quarter invoiced revenue growth was 49% in Q2 2020 (vs. Q1 2020). The Kahoot! Group had in Q2 2020 the third consecutive quarter with positive cash flow from operations. The Kahoot! Group reached more than 270K paid subscriptions in Q2 2020. The full Q2 2020 report is scheduled for release on August 20, 2020.

An update from the CEO of Kahoot!, Eilert Hanoa: Second Quarter 2020

2020 has been an extraordinary year for Kahoot! as we have developed and launched several key initiatives helping users from all segments to make learning more awesome and as we continue to build one of the leading learning platforms in the world. We also added a record number of users and paid subscribers for our offerings in 2020 and we are thrilled to have secured additional capital to help fuel the next phase of Kahoot!'s growth, allowing us to further invest in product innovation, as well as consider new strategic partnerships and acquisitions to further strengthen our platform.

In June this year, we also had our first-ever Kahoot! EDU Summit -- an all-day virtual professional development event for teachers and educators globally, with sessions from the Kahoot! team, our partners, ambassadors, and change-makers within education. More than 35,000 educators from all over the world, spanning K-12 and higher education, signed up for the EDU Summit making it one of the largest gatherings for teachers this year.

At our Annual General Meeting last month, I shared some of our recent and upcoming initiatives that will make Kahoot! an even larger player in the global learning industry.

Kahoot! Academy: a knowledge portal, content platform and marketplace, connecting the global educator community to high-quality content. It will give every student access to high-quality learning resources at school and at home. Kahoot! Academy will serve as a global content network that will connect educators, learners, and brands, providing them with premium, verified content on any topic and in any language. It will also be a marketplace for educators and brands to reach the global community of over 6 million teachers already on the Kahoot! platform becoming a "one-stop shop" of resources for any educator.

In time for back-to-school this year, we will launch Kahoot! EDU, an enhanced, premium Kahoot! experience for entire schools, districts, and higher education institutions. Kahoot! EDU is a robust, structured, and scalable way of offering Kahoot to educational institutions to engage students, empower teachers, provide IT admins greater control, and elevate school leaders with tools to foster a positive learning environment.

For the new school year, we will also be launching Kahoot! Family: a combo pack offering families a set of tools and apps to learn at home. This pack will include subscription to the premium version of the Kahoot! app as well as our other learning apps, covering math and reading and chess.

For brands and publishers, Kahoot! will be launching a new tailor-made offering later this year, to help them distribute their high-quality content and reach more relevant audiences through the power and reach of the Kahoot! platform.

For organizations, Kahoot! recently launched Kahoot! 360, the next generation solution for corporate learning which involves everyone within an organization in engaging learning experiences -- whether it's audience engagement, team collaboration or building company culture. This is a valuable offering for companies of all sizes who are using Kahoot! in more than 150 countries.

In the coming few weeks, our team will have a sharp focus launching our new initiatives for schools, teachers, and families to help them prepare for a very unique Back to School 2020 season. We will also focus on delivering the newest offerings to our users in organizations globally as they prepare what will be the "new normal" for the future of work.

Last but not least, we are preparing and planning diligently for our upcoming IPO on the Oslo Stock Exchange in Q1 2021.

Highlights Q2 2020

• The user growth on the Kahoot! platform continued with more than 20 million active accounts in the last twelve months (40% YoY growth). Number of hosted games last twelve months was 210m (7% YoY growth) with 1.25bn participants (12% 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.
• Strong growth in paid subscriptions for the Kahoot! Group, reaching more than 270K in Q2 2020, an increase of 68K paid subscriptions from Q1 2020. The year on year growth in paid subscriptions was 170% per Q2 2020 vs. Q2 2019. Per Q2 2020 the Kahoot! Group had approx. 100K subscriptions in the Work segment, 125K subscriptions in the School segment and 45K subscriptions in the Home and Study segment (including DragonBox curriculum).
• Invoiced revenue for the Kahoot! Group for Q2 2020 was \$9.6 million, compared to \$2.3m in Q2 2019 as reported, representing 317% year on year growth. The quarter over quarter invoiced revenue growth was 49% in Q2 2020 (vs. Q1 2020).
• Invoiced revenue for the first half year 2020 for the Kahoot! Group was \$16.0 million, compared to \$4.3 million as reported for the corresponding period 2019, representing 270% year on year growth.
• The Kahoot! Group customer base MRR (Monthly Recurring Revenue) as of 30.06.2020 reached \$2.1m corresponding to ARR (Annual Recurring Revenue) of \$25m.
• The Kahoot! Group had a positive cash flow from operations of approx. \$3.8m in Q2 2020, compared to -\$1.5m in Q2 2019. Cash and cash equivalents as of 30.06.2020 were \$65m (NOK 637m) including net proceeds from new share issues of \$25m. The company has no interestbearing debt.
• The Kahoot! Group expects EBITDA for Q2 2020 to be approx. neutral before social security cost related to exercised share options in the quarter (\$1.8m).

Forward looking statement

• The Kahoot! Group maintains the full year guidance with invoiced revenue in the range of \$32m- \$38m. Invoiced revenue for 2019 was \$13m as reported, and proforma invoiced revenue including acquired units for 2019 was \$15m.
• Positive cash flow from operations for the full year 2020.
• Number of active accounts for the FY 2020 are expected to exceed 21m.
• Paid subscriptions are expected to exceed 340K by the end of 2020.

The company will provide further guidance for Q3 as a part of the full Q2 presentation on August 20, 2020.

The information contained in this statement has not been audited and may be subject to change.

Please see Kahoot! News on kahoot.com/news to stay up to date on company news and updates. For more information, please contact:

Eilert Hanoa, CEO Phone: +47 928 32 905 Email: eilerth@kahoot.com

Ken Østreng, CFO Phone: +47 911 51 686 Email: keno@kahoot.com

About Kahoot!

Kahoot! is on a mission to make learning awesome! We want to empower every child, student and employee to unlock their full learning potential. Our game‐based learning platform makes it easy to create, share and play learning games driving compelling engagement. In addition, our family of apps takes math learning to a new level and empowers children to learn to read through play. Launched in 2013, Kahoot!'s vision is to build the leading learning platform in the world. Over the past 12 months, over 200 million games were played on the Kahoot! platform with more than one billion participating players in 200 countries. The company is headquartered in Norway with offices in the US, the UK, France and Finland. Let's play!