Earnings Release • May 4, 2022
Earnings Release
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Kahoot! Group
"It has been a solid first quarter of the year, and the Kahoot! team continues to deliver at pace. Despite extraordinary market circumstances we saw positive momentum, especially in the latter part of the quarter, with robust growth in revenues and paid subscriptions. I am pleased to see our initiatives to commercialize Kahoot! premium offerings for the corporate market resulting in significant uptake of professional users and our largest enterprise deals to date.
Since the beginning of the pandemic we have grown our invoiced revenues from \$6.5m in Q1 2020 to \$34m in Q1 2022, inclusive of Clever, as well as doubled conversion to paid subscriptions to over 5% amongst our professional user segments. Our viral growth continues through the first quarter with approximately 30% YoY invoiced revenue increase on the core Kahoot! platform. We exceeded 125% (USD) net retention in both Top 50 key Enterprise and School/Districts accounts, as our largest customers are taking more advantage of our steadily expanded set of learning solutions.
Looking forward, I am particularly excited about the long-term potential of Kahoot!'s digital marketplace. Harnessing our vast network of more than 9 million active teachers, Kahoot!'s Marketplace will provide a unique platform for educators and partners to monetize their high-quality content ahead of the important back-to-school season. Launching our marketplace represents an extension of Kahoot!'s business model as well as positioning us at the center of the burgeoning global creator economy." - Eilert Hanoa, CEO of Kahoot!
Invoiced revenue (billings) was 34 million in the first quarter, up 78% YoY, including Clever, which contributed \$9.5 million. Excluding Clever, invoiced revenue in the first quarter grew \$5.5 million YoY to \$24.5 million, up 29%. In the first quarter, the U.S. and Canada as the largest region represented 60% of the Kahoot! Group's invoiced revenue (including Clever).
Annual Recurring Revenue ("ARR") of \$138 million, up 100% YoY. Clever contributed approx. \$48 million from its U.S. ecosystem partners.
"The business performed well in the first quarter, despite the complexity of the market situation. Across key commercial metrics, including invoiced revenues, paid subscriptions and conversion, the Kahoot! Group delivered a solid performance. The company continues to build on a fundamentally scalable business model, delivering its tenth consecutive quarter of positive cash flow from operations - as well as a consistent gross margin of more than 90%. This is all while investing in future growth initiatives for life-long learning and audience engagement offerings. With good visibility into the second quarter and the important backto-school season coming up, we expect QoQ invoiced revenue growth of 50% in our third quarter." - Ken Østreng, CFO of Kahoot!
In order to enhance the understanding of the Kahoot! Group's performance, the Group presents certain measures and ratios considered as alternative performance measures (APMs) as defined by the European Securities and Markets Authority, and these should not be viewed as substitutes for any IFRS financial measures. The APMs includes Invoiced Revenue, Monthly Recurring Revenue (MRR), Annual Recurring Revenue (ARR), EBITDA, adjusted EBITDA, adjusted cash flow from operations and equity ratio. These APMs are presented as the Group considers them to be important supplemental measures to understand the overall picture of revenue and profit generation in the Group's operating activities.
| USD in millions | Q1 2022 | Q1 2021 | YoY | FY 2021 5 |
|---|---|---|---|---|
| Total revenue and other operating income | 34.4 | 16.2 | 112 % | 91.3 |
| Cost of sales | 1.8 | 1.3 | 7.0 | |
| Employee benefit expenses | 15.6 | 6.2 | 35.2 | |
| Other operating expenses | 11.3 | 5.0 | 29.7 | |
| Total operating expenses | 28.7 | 12.5 | 129 % | 72.0 |
| Adjusted EBITDA | 5.7 | 3.7 | 56 % | 19.3 |
| Share based compensation expenses | 5.6 | 2.1 | 15.5 | |
| Payroll tax share based compensation | (3.1) | 1.3 | (7.6) | |
| Acquisition transaction and listing cost | 0.2 | 1.4 | 6.6 | |
| EBITDA | 3.0 | (1.2) | 4.7 | |
| Invoiced revenue | 34.0 | 19.1 | 78 % | 107.2 |
| ARR end of period | 138.0 | 69.0 | 100 % | 133.0 |
| Adjusted EBITDA margin | 16.6 % | 22.7 % | 21.1 % | |
| Cash flow from operating activities 4 | 4.2 | 5.4 | 31.3 | |
| Cash and cash equivalents end of period | 76.9 | 253.6 | 107.8 |
1 Cost of sales are third-party sales and distribution cost.
2 Employee benefit expenses include regular operational payroll and employee related benefit expenses. Calculated share-based payment expenses and related payroll taxes for the Group's share option program are not included.
3 Other operating expenses not including acquisition-related expenses and listing cost.
4 Q1 2022 mainly adjusted for \$0.6 million cash outflow for expenses to listing cost preparations and, social security cost on sharebased payments
5 Includes Clever from 1 September 2021.
The first quarter of 2022 was in many ways an extraordinary quarter. It came with significant volatility in financial markets, rising concerns of inflation and the sentiment amongst decision makers was colored by uncertainty due to the unprecedented global geopolitical situation, as well as the pandemic long-tail. The market sentiment in the early part of the quarter was affected by some hesitation and resulted in a somewhat slow-paced beginning of the quarter, which changed to a considerably stronger momentum in March. In particular we saw strong development in enterprise, schools and district sales.
We continue to see improved conversion to paid use, particularly in the corporate sector and amongst professional users, indicating increased maturity and product-market fit. Further, the strong usage of Clever continues in the world's largest learning market, U.S., signaling a robust, ongoing demand for digital learning solutions. Although YoY growth, we saw some post-pandemic decline of non-paying personal accounts, compared to last year's high levels. Fundamentally we see the market environment for learning and audience engagement as healthy - and global growth and application of digital learning tools continues to increase at pace, with digital adoption accelerating across industries.
We continue to see solid viral usage of the Kahoot! platform, with an increasingly diverse portfolio of offerings for widening demographics and use cases in organizations, schools and corporates. With Kahoot's unique brand and our expanding, innovative and engaging products we remain confident about Kahoot!'s potential for progressive growth in 2022 and beyond.
schools experiencing teacher shortages - over 4K schools participated in the program in the quarter. In response to the Ukrainian crisis Kahoot! offered free EDU licenses to teachers and schools in Ukraine, to support continuous education for school children and other learners. LearnPlatform recognizes Kahoot! and Clever as the 6th and 7th most widely-used education technology solutions by educators and students in the U.S, only surpassed by Google services, in the recent EdTech Top40 Mid-Year Report 2021-22.
Used in 97% of Fortune 500 companies, Kahoot! at Work's offerings help customers engage employees and build company culture by delivering unique training and communication experiences, across entire organizations. Kahoot! 360 is a powerful audience engagement offering, including Kahoot!'s bespoke enterprise offering, Kahoot! 360 Spirit, while Motimate is a complete, modern training solution and Actimo is an employee engagement app with particular focus on non-desk workers. Kahoot! at Work occupies a bespoke space at the intersection of employee engagement, corporate learning, training and culture building. The Kahoot! at Work business area stands optimally positioned to respond to multiple workplace scenarios we have seen evolve thanks to a diverse portfolio of solutions and plans that deliver the elements to support thriving corporate cultures now, and in the future of work.
Educators across the world make learning awesome with Kahoot! by tapping into the vast, inherent potential for playful education experiences to unlock every student's learning potential. Kahoot! offerings are used by more than 9 million teachers (LTM), hundreds of millions of students and thousands of schools, campuses, universities and districts. Kahoot!'s EDU offering is empowering teachers with a variation of interactive teaching and assessment
tools, and features such as Team mode - designed to increase collaboration skills through inclass and virtual learning settings, with Courses bolstering the already considerable opportunities to maximize student engagement though diverse content formats. Dragonbox offers school children, families and all learners engaging ways to learn math while Whiteboard empowers teachers to engage students in class and virtually with an interactive whiteboard tool for instant sharing and feedback.
Born of the desire to save valuable time in the classroom and afford more space for innovative teaching and learning, Clever is a single sign-on portal for teachers and students, and one of the most widely used digital learning platforms with 60% of all U.S. K-12 Schools, 22m+ monthly active students and 1.4m monthly active teachers using the platform, now featuring more than 790 partner apps (500+ paid). Clevers recent innovations include parent/teacher messaging, enabling parents and teachers to communicate seamlessly and Clever IDM (Identity Management Solutions for schools). The ongoing focus for Clever remains to lay a robust foundation for growth and commercial added-value for its vast network, including the launch of the click-to-buy App Store and international expansion in 2022. Clever and Kahoot! continue to explore synergies and possibilities, with Kahoot! seeking to expand its considerable footprint across K12 schools in the U.S. and Canada. Similarly, efforts will continue to realize the vast potential for Clever to leverage Kahoot!'s global viral footprint to deliver its platform to educators globally.
Spearheaded by the Kahoot!+ offering, encompassing award-winning Kahoot! DragonBox and Poio apps, as well as language learning app, Drops, Kahoot!'s ad-free platform and apps enables families, students and children to connect and learn in an engaging way at home, either through self-study or family fun. Over 10m are using Kahoot! at Home with over 100 million games played by families. Kahoot! at Home also offers Kahoot!+ Study and Kahoot! Kids. The former seeks to make study more fun, impactful and effective, leveraging Kahoot!'s position as a trusted learning tool for hundreds of millions of participating students, while the latter expands Kahoot!'s demographic relevance with a bespoke, pedagogically robust product to engage a family audience which has played 100 million kahoots in the last 12 months.
Kahoot! Academy is a global knowledge platform, online community and marketplace which enables anyone to access premium learning content and high-quality learning resources produced and curated by verified publishers and content creators. Kahoot!+ AccessPass, launched in December 2021, represents the first commercial service on Kahoot!'s global digital marketplace, where verified creators and partners can monetize premium content. By enabling a marketplace, Kahoot!'s platform opens itself to be harnessed by the burgeoning global creator community to promote, sell and monetize their quality content and expertise. Made possible by the singular viral growth and scale of the Kahoot! brand and platform, these developments serve to strategically position Kahoot! to reach a captive and vast global market of educators and learners.
The Kahoot! Group reiterates its ambition to exceed \$190 million in invoiced revenues for 2022, with recognized revenues exceeding \$155 million and adjusted cash flow from operations of approx. 35% of recognized revenue.
The Kahoot! Group's annual invoiced revenue cycle is influenced by natural seasonality and market dynamics of key business areas, with the main driver being the back-to-school season for Kahoot! and for Clever in the second half of the year. Expected invoiced revenue split of approx. 40/60 in H1 and H2, in line with previous years.
For the second quarter 2022, invoiced revenue is expected to exceed \$36 million, representing approx. 75% YoY growth, with solid cash flow from operations.
Kahoot! will host a virtual Investor Day on 1 June 2022. For more details, visit Kahoot.com/investor
The Kahoot! Group's ambition is to exceed \$500m in invoiced revenues in 2025, representing approx. 40% annual invoiced revenue growth, whereof approx. 1/3 from Kahoot! at Work, 1/3 from Kahoot! at School including Clever, and 1/3 from Kahoot! at Home & Study including Kahoot! Academy Marketplace.
The operational cost base is over the period expected to be converged to approx. 60% of invoiced revenue which indicates approx. 40% cash conversion of invoiced revenue in 2025. The financial ambitions outlined do not depend on any material acquisitions in the period.
As previously communicated the Company is exploring the opportunity for a secondary listing. After concluding its initial assessment, the Company has decided that it will continue to explore preparations for a potential secondary listing in the U.S. The Company will update the market in line with applicable regulatory requirements.
The information contained in this report 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.
Eilert Hanoa, CEO Phone: +47 928 32 905 Email: [email protected]
Ken Østreng, CFO Phone: +47 911 51 686 Email: [email protected]
Kahoot! is on a mission to make learning awesome! We want to empower everyone, including children, students, and employees to unlock their full learning potential. Our learning platform makes it easy for any individual or corporation to create, share, and host learning sessions that drive compelling engagement. Launched in 2013, Kahoot!'s vision is to build the leading learning platform in the world. Since launch, Kahoot! has hosted hundreds of millions of learning sessions with over 7 billion participants (non-unique) in more than 200 countries and regions. The Kahoot! Group includes Clever, the leading US K-12 EdTech learning platform, together with the learning apps DragonBox, Poio, Drops, Actimo, Motimate, and Whiteboard.fi. The Kahoot! Group is headquartered in Oslo, Norway with offices in the US, the UK, France, Finland, Estonia, Denmark, Spain and Poland. Kahoot! is listed on the Oslo Stock Exchange under the ticker KAHOT. Let's play!
| (Numbers in thousands) | Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Paid subscriptions 3 | 202 -------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 270 | 933 | ||||||
| Work | 83 | 100 -------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 105 | 245 | 255 -------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 403 - - | 435 | 490 | 515 |
| School | 91 | 125 | 180 230 230 275 | 295 - | 335 | 365 | 395 | ||
| Home & Study | 28 | 45 | 75 200 200 2 230 2 | 234 | 245 - | 255 | 260 |
3 Including acquired units from time of acquisition. Actimo were included with 125K in Q4 2020, Drops with 100K in Q4 2020, Whiteboard with 7K in Q1 2021 and Motimate with 130K in Q1 2021.
Overview of active accounts, hosted sessions, and participants (non-unique) on the Kahoot! platform 2 last twelve months per end of quarter.
| (LTM numbers in millions) | 01 20 | Q2'20 Q3'20 Q4'20 | Q1'21 | Q2'21 | 03'21 | Q4'21 | Q1'22 | ||
|---|---|---|---|---|---|---|---|---|---|
| Active accounts | 0.3 | 0.4 | 0.5 | 0.5 | 0.6 | 0.5 | 0.6 | 0.7 | 0.8 |
| Hosted sessions | 2.7 | 2.7 | 3.1 | 3.9 | 4.6 | 4.6 | 4.9 | 5.8 | 6.4 |
| Participants | 18.8 | 20.5 | 23.1 | 27.8 | 31.5 | 32.3 | 35.1 | 43.4 | 47.8 |
| YoY increase in millions | |||||||||
| Active accounts | 0.0 | 0.0 | 0.1 | 0.1 | 0.2 | 0.1 | 0.1 | 0.2 | 0.3 |
| Hosted sessions | -0.1 | -0.1 | 0.5 | 1.2 | 19 | 19 | 1.8 | 19 | 1.8 |
| Participants | -0.9 | 1.1 | 4.2 | 93 | 12.7 | 11.8 | 12.0 | 15.6 | 16.3 |
| (LTM numbers in millions) | 01'20 | Q2'20 - | Q3'20 Q4'20 | Q1'21 | Q2'21 | 03-21 | Q4'21 | Q1'22 | |
|---|---|---|---|---|---|---|---|---|---|
| Active accounts | 6.0 | 6.4 | 6.9 | 7.6 | 8.3 | 8.7 | 9.1 | 9.3 | 9.3 |
| Hosted sessions | 79.0 | 68.7 | 76.9 | ਰੇਖੋ ਤੇ | 1123 | 129.6 | 134.0 | 131.4 | 125 9 |
| Participants | 877.2 | 811.9 | 879.9 1,005.5 1,134.9 1,341.2 1,381.5 1,406.6 1,372.3 | ||||||
| YoY increase in millions | |||||||||
| Active accounts | 11 | 13 | 15 | 19 | 23 | 23 | 2.2 | 17 | 0.9 |
| Hosted sessions | 79 | -5.8 | 0.7 | 16.8 | 33.3 | 60.9 | 57.2 | 37.1 | 13.6 |
| Participants | 129.3 | 36.6 | 93.8 | 180.6 | 257.7 | 529.3 | 501.6 | 401.1 | 237.4 |
| (LTM numbers in millions) | 01'20 | Q2'20 | Q3'20 | Q4'20 | Q1'21 | Q2'21 | 03'21 | Q4'21 | Q1'22 |
|---|---|---|---|---|---|---|---|---|---|
| Active accounts | 10.4 | 13.5 | 14.2 | 16.7 | 19.3 | 19.7 | 20.6 | 20.9 | 19.8 |
| Hosted sessions | 135.9 | 138.8 | 143.8 | 152.2 | 162.0 | 169.3 | 175.3 | 173.2 | 164.7 |
| Participants | 408.8 | 412.7 | 436.1 | 458.9 | 452.9 | 481.1 | 510.5 | 526.5 | 496.3 |
| YoY increase in millions | |||||||||
| Active accounts | 2.2 | 4.8 | 5.1 | 7.0 | 89 | 6.3 | 6.5 | 4.2 | 0.6 |
| Hosted sessions | 27.3 | 19.3 | 19.4 | 21.5 | 26.1 | 30.4 | 31.5 | 21.0 | 27 |
| Participants | 119.0 | 98.5 | 115.1 | 1143 | 44.1 | 68.4 | 74.4 | 67.5 | 43.4 |
1Category is based on account registration data.
2 All user data from the Kahoot! platform not including other services in the Kahoot! Group.
| (LTM numbers in millions) | 01'20 | Q2'20 | 03'20 | Q4'20 | Q1'21 | Q2'21 | 03'21 | Q4'21 | Q1'22 |
|---|---|---|---|---|---|---|---|---|---|
| Active accounts | 16.8 | 20.3 | 21.5 | 24.8 | 28.2 | 29.0 | 30.3 | 30.9 | 29.9 |
| USA and Canada | 8.6 | ਰੇ ਤੇ | ale | 11.2 | 12.2 | 128 | 13.1 | 13.4 | 12.7 |
| Europe | 5.1 | 6.5 | 6.7 | 7.4 | 8.9 | 8.8 | ਰੇ ਤੋ | 9.8 | 9.6 |
| Asia Pacific | 1.6 | 21 | 24 | 2.6 | 2.8 | 2.7 | 3.2 | 3.3 | 3.3 |
| Latin America and The Caribbean | 0.9 | 14 | 1.8 | 24 | 29 | 3.2 | 3.2 | 3.1 | 29 |
| Africa, The Middle East, and India | 0.5 | 0.8 | 0.9 | 1.2 | 1.4 | 1.4 | 1.4 | 1.4 | 1.3 |
| Hosted sessions | 217.6 | 210.2 | 273.8 | 250.5 | 278.9 | 303.5 | 314.2 | 30.5 | 297.1 |
| USA and Canada | 110.3 | 97.8 | 101.8 | 115.6 | 129.3 | 146.3 | 149.1 | 142.0 | 131 9 |
| Europe | 64.5 | 64.3 | 66.2 | 719 | 80.3 | 84.5 | 88.4 | 91.7 | 90.8 |
| Asia Pacific | 22.0 | 23.3 | 24.6 | 25.5 | 26.4 | 26.8 | 30.7 | 32.6 | 33.2 |
| Latin America and The Caribbean | 12.7 | 14.7 | 18.6 | 22.6 | 26.6 | 29.7 | 29.7 | 28.8 | 26.4 |
| Africa, The Middle East, and India | 8.0 | 10.0 | 125 | 14.8 | 16.4 | 16.2 | 16.3 | 15.4 | 14.8 |
| Participants (non-unique) | 1,305 | 1,245 | 1,339 | 1,492 | 1,619 | 1,855 | 1,927 | 1,976 | 1,916 |
| USA and Canada | 742 | 655 | ല്ട്ടി | 760 | 818 | 973 | 1,005 | 1,012 | ਰੇਵਰ |
| Europe | 344 | 347 | 360 | 392 | 423 | 472 | ਧਰਤ | 525 | 519 |
| Asia Pacific | 126 | 128 | 143 | 152 | 160 | 171 | 191 | 207 | 211 |
| Latin America and The Caribbean | ਦਰੇ | 73 | ਰੇਰੇ | 124 | 148 | 168 | 168 | 164 | 152 |
| Africa, The Middle East, and India | 34 | 42 | 54 | 65 | ਦਰੇ | 70 | 70 | 68 | ee |
| USD in thousands | Note | Q1 2022 | Q1 2021 | FY 2021 |
|---|---|---|---|---|
| Revenue from contracts with customers | 2 | 34,366 | 16,182 | 91,016 |
| Other operating income | 2 | 18 | 249 | |
| Total revenue and other operating income | 34,384 | 16,182 | 91,265 | |
| Cost of sales | 1,758 | 1,345 | 7,029 | |
| Employee benefit expenses | 18,134 | 9,643 | 43,235 | |
| Other operating expenses | 11,457 | 6,371 | 36,351 | |
| Operating profit/(loss) before deprec. and amortiz. (EBITDA) | 3,035 | (1,177) | 4,650 | |
| Amortization of intangible assets | 3,475 | 1,394 | 8,848 | |
| Depreciation | 460 | 251 | 1,357 | |
| Operating profit/(loss) (EBIT) | (900) | (2,822) | (5,555) | |
| Financial income | বি | ਰੇਤ | 432 | |
| Financial expenses | (66) | (46) | (205) | |
| Net change in fair value of financial instruments | (1,031) | (728) | 2,594 | |
| Net foreign exchange gains (losses) | 277 | (27) | (984) | |
| Net financial income (expenses) | (780) | (706) | 1,837 | |
| Profit/(loss) before income tax | (1,680) | (3,528) | (3,718) | |
| Income tax | (480) | (256) | (1,838) | |
| Profit/(loss) for the period | (1,200) | (3,272) | (1,880) | |
| Profit/(loss) for the period attributable to: | ||||
| Equity holders of Kahoot! ASA | (1,200) | (3,272) | (1,880) | |
| Earnings per share in USD | ||||
| Basic earnings per share | (0.00) | (0.01) | (0.00) | |
| Diluted earnings per share | (0.00) | (0.01) | (0.00) |
| USD in thousands | Q1 2022 | Q1 2021 | FY 2021 |
|---|---|---|---|
| Profit/(loss) for the period | (1,200) | (3,272) | (1,880) |
| Other comprehensive income/(loss): | |||
| Items that might be subsequently reclassified to profit or loss: | |||
| Exchange differences on translation of foreign operations | (1,181) | (3,771) | (8,751) |
| Total comprehensive income/(loss) for the period | (2,381) | (7,043) | (10,631) |
| Total comprehensive income/(loss) attributable to: | |||
| Equity holders of Kahoot! ASA | (2,381) | (7,043) | (10,631) |
| USD in thousands | Note 31.03.2022 31.12.2021 | ||
|---|---|---|---|
| ASSETS | |||
| Goodwill | 493,907 | 494,430 | |
| Intangible assets | 169,571 | 173,284 | |
| Property, plant and equipment | 766 | 633 | |
| Right-of-use assets | 3,663 | 2,928 | |
| Total non-current assets | 667,907 | 671,275 | |
| Trade receivables | 11,580 | 11,764 | |
| Other current assets | 5,105 | 5,304 | |
| Cash and cash equivalents | 76,868 | 107,765 | |
| Total current assets | 93,553 | 124,833 | |
| TOTAL ASSETS | 761,460 | 796,108 | |
| EQUITY AND LIABILITIES | |||
| Share capital | 3 | 5,736 | 5,707 |
| Share premium | 661,496 | 651,581 | |
| Share-based payments reserves | 20,270 | 16,963 | |
| Foreign currency translation reserves | (11,909) | (10,728) | |
| Accumulated deficit | (83,208) | (82,008) | |
| Total equity | 592,385 | 581,515 | |
| Lease liabilities | 2,656 | 2,044 | |
| Deferred tax liability | 45,748 | 46,288 | |
| Other non-current liabilities | 14,852 | 40,565 | |
| Total non-current liabilities | 63,256 | 88,897 | |
| Lease liabilities | 1,178 | 1,007 | |
| Current tax liabilities | বা | 4 | |
| Trade payables | 4,659 | 5,359 | |
| Contract liabilities (deferred revenue) | 58,747 | 60,772 | |
| Other current liabilities | 41,231 | 58,554 | |
| Total current liabilities | 105,819 | 125,696 | |
| Total liabilities | 169,075 | 214,593 | |
| TOTAL EQUITY AND LIABILITIES | 761,460 | 796,108 |
| Foreign | ||||||
|---|---|---|---|---|---|---|
| Share-based | currency | |||||
| Share | Share | payment | translation Accumulated | Tota | ||
| USD in thousands | capital | premium | reserves | reserves | deficit | equity |
| Balance at 1 January 2021 | 5,228 | 357,383 | 5,542 | (1,977) | (80,128) | 286,048 |
| Profit/(loss) for the period | (1,880) | (1,880) | ||||
| Currency translation differences | (8,751) | (8,751) | ||||
| Total comprehensive income/(loss) for the period | (8,751) | (1,880) | (10,631) | |||
| Issuance of shares | 479 | 302,700 | 303,179 | |||
| Transaction costs on equity issues | (8,502) | (8,502) | ||||
| Share option program | 11,421 | 11,421 | ||||
| Balance at 31 December 2021 | 5,707 | 651,581 | 16,963 | (10,728) | (82,008) | 581,515 |
| Profit/(loss) for the period | (1,200) | (1,200) | ||||
| Currency translation differences | (1,181) | (1,181) | ||||
| Total comprehensive income/(loss) for the period | (1,181) | (1,200) | (2,381) | |||
| Issuance of shares | ਹੈਰੇ | 9.943 | 9,972 | |||
| Transaction costs on equity issues | (28) | (28) | ||||
| Share option program | 3,307 | 3,307 | ||||
| Balance at 31 March 2022 | 5,736 | 661,496 | 20,270 | (11,909) | (83,208) | 592,385 |
| Share | Share-based | Foreign currency |
||||
|---|---|---|---|---|---|---|
| USD in thousands | capital | Share premium |
payment reserves |
reserves | translation Accumulated deficit |
Tota equity |
| Balance at 1 January 2021 | 5,228 | 357,383 | 5,542 | (1,977) | (80,128) | 286,048 |
| Profit/(loss) for the period | (3,272) | (3,272) | ||||
| Currency translation differences | (3,771) | (3,771) | ||||
| Total comprehensive income/(loss) for the period | (3,771) | (3,272) | (7,043) | |||
| Issuance of shares | 4 | 4,080 | 4,084 | |||
| Transaction costs on equity issues | ||||||
| Share option program | 2,119 | 2,119 | ||||
| Balance at 31 March 2021 | 5,232 | 361,463 | 7,661 | (5,748) | (83,400) | 285,208 |
| USD in thousands | Q1 2022 | Q1 2021 | FY 2021 |
|---|---|---|---|
| Cash flows from operating activities | |||
| Profit/(loss) before income tax | (1,680) | (3,528) | (3,718) |
| Adjustments for | |||
| Depreciation and amortization | 3,935 | 1,645 | 10,205 |
| Share-based payments expense | 3,307 | 2,119 | 11,421 |
| Change in trade receivables | 116 | (1,123) | (781) |
| Change in contract liabilities | (1,843) | 2,735 | 15,757 |
| Change in trade payables | (687) | 460 | 2,752 |
| Change in other current assets and other liabilities | 487 | 3,084 | (14,965) |
| Taxes paid | (6) | ||
| Interest received | 40 | ਰੇਤ | 432 |
| Financial expenses | (୧୧) | (46) | (205) |
| Net cash flow from operating activities | 3,609 | 5,441 | 20,892 |
| Cash flows from investing activities | |||
| Payment for acquisition of subsidiary, net of cash acquired * | (32,876) | (7,416) | (364,145) |
| Payment for intangible assets | (456) | (562) | |
| Payment for property, plant and equipment | (301) | (39) | (216) |
| Net cash from investing activities | (33,633) | (7,455) | (364,923) |
| Cash flows from financing activities | |||
| Proceeds from issuance of ordinary shares | 205,077 | ||
| Transaction costs on issuance of ordinary shares | (28) | (8,502) | |
| Repayments of lease liabilities | (251) | (213) | (aat) |
| Paid interest on lease liabilities | (26) | (23) | (89) |
| Net cash from financing activities | (305) | (246) | 195,495 |
| Net increase/(decrease) in cash and cash equivalents | (30,329) | (2,260) | (148,536) |
| Cash and cash equivalents beginning of the period | 107,765 | 256,120 | 256,120 |
| Effects of exchange rate changes on cash and cash equiv. | (567) | (246) | 181 |
| Cash and cash equivalents as of end of period | 76,868 | 253,614 | 107,765 |
1Cash outflow for acquisitions of subsidiaries relates to contingent consideration liabilities (earn-outs) paid in the first quarter of 2022 for acquisitions in 2020 and 2021. For further information please see note 4 in the 2021 Annual Report.
Kahoot! ASA (the Company or Kahoot!), the parent company of the Kahoot! Group (the Group) is a public limited liability company incorporated and domiciled in Norway, with its head office in Fridtjof Nansens plass 7, 0160 Oslo. The Company is listed on Oslo Stock Exchange has the ticker "KAHOT".
The condensed consolidated interim financial statements consist of Kahoot! ASA and its subsidiaries. As a result of rounding differences, numbers or percentages may not add up to the total.
These interim condensed consolidated financial statements for the three months ending 31 March 2022, have been prepared in accordance with IAS 34 Interim Financial Reporting, and authorized for issue by the board of directors on 3 May 2022. The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual financial statements for 2021.
The accounting policies applied in the preparation of the interim consolidated financial statements are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 31 December 2021.
The Kahoot! Group has one segment: software to make learning awesome. The market for Kahoot!'s software is global. The chief decision maker will therefore follow up revenue and profitability on a global basis. This is consistent with the internal reporting submitted to the chief operating decision maker responsible for allocating resources and assessing performance as well as making strategic decisions.
| USD in thousands | Q1 2022 Q1 2021 | FY 2021 | |
|---|---|---|---|
| Subscription revenue - recognized over time | 34,183 | 16.001 | 90,081 |
| Other revenue - recognized at point in time | 183 | 181 | ਰੇਡੇ ਦੇ |
| Total revenue from contracts with customers | 34,366 | 16.182 | 91,016 |
| Other operating income | 18 | 249 | |
| Total revenue and other operating income | 34,384 | 16,182 | 91,265 |
Kahoot! ASA only has one class of shares, and all shares have the same voting rights. The shareholders are entitled to receive dividends as and when declared and are entitled to one vote per share at General Meetings of the Company.
| Number of Share capital Share capital | |||
|---|---|---|---|
| shares | (NOK) | (USD) | |
| Balance at 1 January 2022 | 486,581,479 | 48,658,148 | 5,707,355 |
| Issued during the year | 2,569,671 | 256.967 | 29.090 |
| Balance at 31 March 2022 | 489,151,150 | 48,915,115 | 5,736,445 |
The share capital is fully paid and has a par value of NOK 0.10.
At the Annual General Meeting of Kahoot! ASA on 8 June 2021, the Board of Directors were authorized to increase the share capital by up to NOK 9.63 million through the issuance of up to 96.3 million new shares in connection with (i) mergers, acquisitions, equity raises and (ii) exercise of share options. The Board of Directors were authorized to acquire treasury shares with a total nominal value of up to NOK 1,418 thousand.
Information relating to the Group's Employee Option Plan, including details of options issued, exercised, and lapsed during the financial year and options outstanding at the end of each reporting period, is set out in note 17 in the 2021 Annual Report. The table below shows the development in the Company's share capital in 2022.
| Change in | New | Nominal | Subscription | |||
|---|---|---|---|---|---|---|
| Date of | share capital share capital value Number of total price per share | |||||
| registration Type of change | (NOK) | (NOK) | (NOK) | issued shares | (NOK) | |
| 01 Mar 22 | Share capital increase | 256.967 | 48,915,115 | 0.10 | 489,151,150 |
1) Share issue with NOK subscription price: 64.77/48.08/47.06/38.24/36.42/34.55/32.34/31.63
| More than 41,000 shareholders per 25 April 2022 | Shares (m) | % |
|---|---|---|
| Goldman Sachs International | 46.0 | 9.4 % |
| Glitrafjord AS | 41.2 | 8.4 % |
| J.P. Morgan Securities Plc | 30.0 | 6.1 % |
| Datum AS | 28.0 | 5.7% |
| Creandum III LP | 20.0 | 4.1 % |
| State Street Bank and Trust Comp | 18.1 | 3.7 % |
| Citigroup Global Markets Inc. | 13.5 | 2.8 % |
| Folketrygdfondet | 12.9 | 2.6 % |
| State Street Bank and Trust Comp | 10.8 | 2.2% |
| The Northern Trust Comp, London Br | 10.6 | 2.2 % |
| Versvik Invest AS | 10.0 | 2.0 % |
| Newbrott AS | 7.6 | 1.6 % |
| Euroclear Bank S.A./N.V. | 7.1 | 1.4 % |
| Datum Invest AS | 6.6 | 1.3 % |
| Citibank, N.A. | 6.5 | 1.3 % |
| JPMorgan Chase Bank, N.A., London | 6.2 | 1.3 % |
| State Street Bank and Trust Comp | 5.7 | 1.2 % |
| Nordnet Bank AB | 5.7 | 1.2 % |
| Gamification AS | 5.2 | 1.1 % |
| J.P. Morgan SE | 5.1 | 1.0 % |
| Other | 192.2 | 39.3 % |
| Total outstanding shares | 489.2 | 100.0 % |
| Outstanding share options | 24.9 | |
| Total no. of shares (fully diluted) | 514.1 |
Investors with shareholding exceeding 5%: SoftBank, Glitrafjord (CEO, Eilert Hanoa) and Datum Group.
In the first quarter, the Group acquired services for \$76K from Glitrafjord AS, a company 100% owned by the CEO.
No events that have significantly affected or may significantly affect the operations of the Group have occurred after 31 March 2022.
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