Earnings Release • May 4, 2023
Earnings Release
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Kahoot! Group
"I am pleased to report solid performance through the first quarter, with double digit revenue growth and significant increase in profitability.
Kahoot! showed resilience and continued viral growth in a difficult market environment in the first part of the quarter. The long-term growth of professional users continued, with larger customers taking advantage of our expanding suite of solutions, resulting in an increase in paid subscriptions and activity on paid accounts. We noted a positive shift in sentiment across key customer segments in March, extending into the second quarter.
I am proud to see Kahoot! making a difference to millions of users, be it in the classroom, boardroom, or the living room, reaching over 260 million hosted learning sessions with over 1.6 billion participants, in the last twelve months.
We will continue to expand user value for creators, presenters, teachers, students and learners, as we develop new solutions and integrations, including new AI based features. I am excited about our strong product pipeline, with a host of new solutions for both school, work, and home."
- Eilert Hanoa, CEO of Kahoot!
"Kahoot!'s scalable platform, agile operations and diversified business model contributed to robust performance in the first quarter; including double digit invoiced revenue growth, strong year over year increase in profitability, improving margins and doubling our operating cash flow over the last year.
Through the initial part of the year, we have managed consistent cost levels approximately in line with previous quarters. We will continue to operate a modest cost base across the group, enabling us to deliver continued year-on-year improvement in adjusted EBITDA and free cash flow while executing our growth strategy."
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 include Invoiced Revenue, Monthly Recurring Revenue (MRR), Annual Recurring Revenue (ARR), Gross margin, 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 2023 | Q1 2022 | YoY | FY 2022 |
|---|---|---|---|---|
| Total revenue and other operating income | 40.5 | 34 4 | 1896 | 146.0 |
| Cost of sales " | 2.0 | 1.8 | 7.0 | |
| Employee benefit expenses 2 | 17.5 | 15.6 | 625 | |
| Other operating expenses 3 | 11.0 | 113 | 46.3 | |
| Total operating expenses | 30.5 | 28.7 | ਦੇ ਕੋਟੋ | 115.7 |
| Adjusted EBITDA | 10.0 | 5.7 | 75 % | 30.2 |
| Share based compensation expenses | 6.1 | 5.6 | 23.9 | |
| Payroll tax share based compensation | 1.1 | (3.1) | (3.4) | |
| Acquisition transaction and listing cost | 0.2 | 0.2 | ||
| EBITDA | 2.7 | 3.0 | 4.7 | |
| Invoiced revenue | 37.6 | 34.0 | 1196 | 169.0 |
| ARR end of period | 159.0 | 138.0 | 15 % | 156.0 |
| Gross margin | 95 % | ਰੇਤੇ % | 95 % | |
| Adjusted EBITDA margin | 25 % | 17 % | 21 % | |
| Cash flow from operating activities " | 8.4 | 4.2 | 100 % | 31.3 |
| Capital expenditures 3 | 0.6 | 0.4 | 1.5 | |
| Cash and cash equivalents end of period | 88.7 | 76.9 | 107.8 |
1 Cost of sales are third-party distribution and content 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, listing cost preparations, depreciation, and amortization.
4 First quarter 2023 adjusted for \$1.1 million cash outflow for expenses to social security cost on share-based payments.
5 Capital expenditures not including acquisitions.
With macroeconomic uncertainty towards the end of last year being prolonged into the first part of 2023, organizations continued to exercise spending caution. Through our diversified portfolio across user groups, geographies and offerings, the group delivered solid financial and operational performance in the first quarter, positioning for durable profitable growth. We noted signs of increased demand in key customer segments in the latter part of the quarter, with positive development in March, continuing into April. The pipeline across business categories strengthened further, with mid- to-large-sized deals, laying a robust foundation for the months to come.
With the influx of thirty-five thousand net new paid subscriptions on the Kahoot! platform, the quarter saw solid growth in new paid users, with minimal customer acquisition cost, due to our viral distribution model. Still, with some 97% of the platform's users benefiting from our free services the potential for further monetization remains significant. As we continue to build out offerings on our core platform we expect to see additional revenue streams from our wide community of users.
Clever continued to add new paid application partners to the company's market-leading rostering service to more than 97,000 schools in the U.S. K-12, and continued to show progress across the business, including the ongoing roll-out of premium offerings ahead of the back-to-school season. Due to Clever's billing cycle, and in line with normal seasonal patterns over the last years, we expect financial impact of new application partners as well as effect from further expansion of Clever's user base in schools and districts, to occur in the third and fourth quarter of the year, resulting in full-year double-digit invoiced revenue growth, and improved profitability.
At Kahoot! product innovation is part of our culture, where half of the group's personnel is dedicated to development of our existing and future products. The first quarter saw an exceptional yield from R&D, fueling a rich line-up of solutions that will be released to the market through the year. This includes new AI based features to optimize efficiency of content creation and ease-of-use, as well as new offerings to both school, work, and home. These new features will amplify the capabilities of our solutions, making these even more
powerful in the hands of our users. And we can do so in an environment that is curated, safe and beneficial to publishers and partners.
With significant investments into the group's product suite over the last quarters, Kahoot! is increasingly running a diversified business, with potential to grow further across the corporate and enterprise sector, K-12 and higher-ed in school, for personal usage at home, as well as in the emerging area of content.
After seeing normalization in free social users on the Kahoot! platform compared to prior year's pandemic-induced levels, the month of March was the first comparable month postpandemic. With a total of 175 million participating players in March, we noted indications of stabilizing monthly user metrics and activity on the Kahoot! platform. With millions of new sign-ups every quarter, supported further through a host of new game experiences, interactive features, and upcoming launch of new solutions, we believe the company has the building-blocks needed to continue the positive development going forward.
The company's focus on operational efficiency and better commercial performance, with marginal growth of workforce, continues to deliver good results. Due to effective unit economics and a highly scalable platform we expect to see continued and sustained profitable growth, as we pursue our mission of making learning awesome for everyone.
The Commercial category includes Kahoot!, a leading audience engagement solution used in 97% of Fortune 500 companies, Motimate, a modern complete training solution, and Actimo, an employee communication and engagement app with particular focus on non-desk workers. Kahoot!'s Commercial offerings help corporate customers engage employees and build company culture by delivering easy to use, unique training and communication experiences, across entire organizations.
In Q1, net 15,000 new paid subscriptions were added, reaching approx. 595,000 in total paid subscriptions, up 16% YoY. Commercial saw steady performance and continued growth across our offerings with good traction across all sales channels. Momentum picked up particularly towards the end of the quarter and continued into Q2. Further strengthening our professional offerings, we launched Kahoot 360 "Story" - an interactive storytelling tool for corporations to create their own fun, engaging, visually impactful training content for asynchronous learning experiences.
The Education category includes Kahoot, the leading learning and engagement tool for teachers and students, and Clever, the market leading single sign-on portal for teachers and students in K-12 US. Over 8 million educators across the world use Kahoot!'s learning tools to make learning awesome for hundreds of millions of students across thousands of schools, campuses, universities and districts.
In Q1, net 15,000 new paid subscriptions were added, reaching approx. 450,000 in total paid subscriptions, up 14% YoY. Introduced Kahoot! EDU Pro, a new top tier commercial plan for schools, districts and higher ed institutions enabling asynchronous "assigned kahoots" with up to 10,000 players, customized theming and branding. In addition, launched the new Kahoot! game experience Tallest Tower - a new student-led game mode which has quickly become the most popular way to play Kahoot! after the classic mode.
Clever continued with a strong second half of the '22/23 school year, growing to 610+ paid app partners on the platform. Healthy K-12 student activity growth continued, with now 25m monthly active students in over 97,000 schools on the platform. Clever Identity Management (Clever IDM), the paid identity management solution for schools, was extended to support Azure AD. In collaboration with Microsoft, the new version of Windows for Education allows for login with Clever Badges.
The Consumer & Experience category includes Kahoot!'s learning platform, award winning learning apps like Poio, DragonBox, Drops, and premium learning content from world leading publishers and brands, enabling hundreds of millions of participants, from children, students and families to connect and learn in an engaging way, either through self-study or live sessions for learning, family fun and social settings.
In Q1, net 5,000 new paid subscriptions were added, reaching approx. 300,000 in total paid subscriptions this quarter, up 15% YoY. In the quarter we launched the new standalone Kahoot! Kids app, a one-stop-shop for engaging and entertaining learning games, including premium kahoots with your favorite Disney characters. In addition, Danish was added as the 18th language on the platform. Marketplace improved with new features for content creators and discovery functionality, preparing for launch of content creator subscription channels.
Going forward the Kahoot! Group will provide guidance as outlined below.
Full year 2023 continued double digit year-on-year growth in billings delivering recognized revenues exceeding \$170m with modest annual growth in operational cost base, and adjusted EBITDA exceeding 40% year-on-year growth with solid free cash flow.
Second quarter 2023 continued year-on-year growth in billings delivering recognized revenues of \$41-42m with modest quarterly increase in operational cost base resulting in year-on-year improvement in adjusted EBITDA and free cash flow.
Reiterating the long-term growth potential and scalability ambition, targeting ~40% cash conversion in 2025 (as percentage of billings). Further information will be provided on the Investor Day 7 June 2023.
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]
Jonas Forslund, Director Investor Relations Phone: +358 40 595 0968 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 9 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 Q1'22 Q2'22 Q3'22 Q1'23 | |||||||
|---|---|---|---|---|---|---|---|
| Paid subscriptions - | 202 270 360 675 760 933 1,015 1,110 1,170 1,210 1,250 1,310 1,345 | ||||||
| Commercial | 83 100 105 245 255 403 435 435 490 515 530 550 550 5580 595 | ||||||
| Education | 91 125 180 230 275 295 335 365 395 410 425 435 450 | ||||||
| Consumer & Experience |
1 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 Q2 2021.
Overview of active accounts, hosted sessions, and participants (non-unique) on the Kahoot! platform 2 last twelve months at the end of quarter.
| (LTM numbers in millions) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q1'22 Q2'22 Q3'22 Q1'23 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Active accounts | 0.3 | 0.4 | 0.5 | 0.5 | 0.6 | 0.5 | 0.6 | 0.7 | 0.8 | 0.8 | 0.9 | 0.9 | 0.8 |
| Hosted sessions | 2.7 | 2.7 | 3.1 | 3.9 | 4.6 | 4.6 | ব এ | 5.8 | 6.4 | 6.4 | 6.4 | 5.9 | 5.7 |
| Participants | 18.8 | 20.5 | 23.1 | 27.8 | 31.5 | 32.3 | 35.1 | 43.4 | 47.8 | 47.7 | 46.8 | 44.1 | 43.3 |
| YoY change in millions | |||||||||||||
| Active accounts | 0.0 | 0.0 | 0.1 | 0.1 | 0.2 | 0.1 | 0.1 | 0.2 | 0.3 | 0.3 | 0.3 | 0.2 | 0.0 |
| Hosted sessions | -0.1 | -0.1 | 0.5 | 1.2 | 19 | 19 | 1.8 | 19 | 1.8 | 1.8 | 1.4 | 0.0 | -0.7 |
| Participants | -0.9 | 1.1 | 4.2 | 9.3 | 12.7 | 11.8 | 12.0 | 15.6 | 16.3 | 15.5 | 11.7 | 0.6 | -4.5 |
| (LTM numbers in millions) Q120 Q220 Q620 Q420 Q121 Q221 Q321 Q421 Q122 Q222 Q322 Q122 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Active accounts | 6.0 | 6.4 | 6.9 | 7.6 | 8.3 | 8.7 | 9.1 | 9.3 | 9.3 | 8.8 | 8.7 | 8.7 | 8.6 |
| Hosted sessions | 79.0 | 68.7 76.9 94.3 112.3 129.6 134.0 131.4 125.9 119.7 116.8 113.1 114.8 | |||||||||||
| 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 1,321.3 1,300.4 1,253.3 1,247.4 | |||||||||||
| YoY change in millions | |||||||||||||
| Active accounts | 1.1 | 13 | 1.5 | 1.9 | 23 | 2.3 2.2 | 1.7 | 0.9 | 0.1 | -0.4 | -0.6 | -0.7 | |
| Hosted sessions | 79 | -5.8 | 0.7 | 16.8 | 33.3 | 60.9 57.2 | 37.1 | 13.6 | -10.0 | -17.3 | -18.4 | -111 | |
| Participants | 129.3 | 36.6 93.8 180.6 257.7 529.3 501.6 401.1 237.4 -19.8 -81.1 -153.3 -124.9 |
| (LTM numbers in millions) Q120 Q220 Q420 Q121 Q221 Q321 Q421 Q122 Q222 Q322 Q122 Q123 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Active accounts | 10.4 | 13.5 14.2 | 16.7 | 19.3 | 19.7 20.6 20.9 | 19.8 | 18.4 | 17.2 | 16.2 | 15.2 | |||
| Hosted sessions | 135.9 | 138.8 143.8 152.2 162.0 169.3 175.3 173.2 164.7 | 162.0 158.7 | 149.5 146.4 | |||||||||
| Participants | 408.8 | 412.7 | 436.1 458.9 452.9 481.1 510.5 526.5 496.3 474.8 452.7 380.7 352.2 | ||||||||||
| YoY change in millions | |||||||||||||
| Active accounts | 2.2 | 4.8 | 5.1 | 7.0 | 8.9 | 6.3 | 6.5 | 4.2 | 0.6 | -1.4 | -3.4 | -4.7 | -4.6 |
| Hosted sessions | 27.3 | 193 | 19.4 | 21.5 | 26.1 | 30.4 | 31.5 | 21.0 | 2.7 | -7.3 | -16.6 | -23.7 | -18.4 |
| Participants | 119.0 | 98.5 115.1 114.3 | 44.1 | 68.4 74.4 | 67.5 | 43.4 | -6.4 -57.7 -145.7 -144.0 |
2 All user data from the Kahoot! platform not including other services in the Kahoot! Group.
3 Category is based on account registration data.
| (LTM numbers in millions) | 01'20 | Q2'20 | 03'20 | Q4'20 | 01'21 | 02'21 | 03'21 | Q4'21 | 01'22 | 02'22 | 03'22 | Q4'22 | Q1'23 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Active accounts | 16.8 | 20.3 | 21.5 | 24.8 | 28.2 | 29.0 | 30.3 | 30.9 | 29.9 | 28.0 | 26.7 | 25.8 | 24.6 |
| USA and Canada | 8.6 | 9.5 | 9.6 | 11.2 | 12.2 | 12.8 | 13.1 | 13.4 | 12.7 | 11.6 | 11.2 | 10.8 | ਰੇ ਰੇ |
| Europe | 5.1 | 6.5 | 6.7 | 74 | 8 ਰੇ | 8.8 | 9.3 | 9.8 | 9.6 | ਰੇ ਪੈ | 9.3 | 9.3 | 9.2 |
| Asia Pacific | 1.6 | 2.1 | 24 | 2.6 | 28 | 2.7 | 3.2 | 3.3 | 3.3 | 3.3 | 2.9 | 2.7 | 2.7 |
| Latin America | 0.9 | 1.4 | 1.8 | 24 | 2.9 | 3.2 | 3.2 | 3.1 | 2.9 | 2.5 | 2.2 | 2.0 | 2.0 |
| Africa, Middle East, India | 0.5 | 0.8 | 0 ਰੇ | 1.2 | 14 | 1.4 | 14 | 1.4 | 1.3 | 1.2 | 1.1 | 1.0 | 0.9 |
| Hosted sessions | 217.6 | 210.2 | 223.8 | 250.5 | 278.9 | 303.5 | 314.2 | 310.5 | 297.1 | 288.1 | 281.8 | 268.4 | 266.9 |
| USA and Canada | 110.3 | 97.8 | 101.8 | 115.6 | 129.3 | 146.3 | 149.1 | 142.0 | 131 9 | 123.6 | 120.7 | 110.7 | 105.3 |
| Europe | 64.5 | 64.3 | 66.2 | 719 | 80.3 | 84.5 | 88.4 | 91.7 | 90.8 | 93.5 | 96.8 | 97.1 | 101.4 |
| Asia Pacific | 22.0 | 23.3 | 24.6 | 25.5 | 26.4 | 26.8 | 30.7 | 32.6 | 33.2 | 33.3 | 30.3 | 29.5 | 30.0 |
| Latin America | 12.7 | 14.7 | 18.6 | 22.6 | 26.6 | 29.7 | 29.7 | 28.8 | 26.4 | 23.6 | 21.6 | 20.0 | 20.0 |
| Africa, Middle East, India | 8.0 | 10.0 | 125 | 14.8 | 16.4 | 16.2 | 16.3 | 15.4 | 14.8 | 14.1 | 124 | 11.1 | 10.2 |
| Participants (non-unique) | 1,305 | 1,245 | 1,339 | 1,492 | 1,619 | 1,855 | 1,927 | 1,976 | 1,916 | 1,844 | 1,800 | 1,678 | 1,643 |
| USA and Canada | 742 | 655 | 683 | 760 | 818 | 973 | 1,005 | 1,012 | ਰੇਦਰ | ਰੋਹਰੇ | 883 | 795 | 751 |
| Europe | 344 | 347 | 360 | 392 | 423 | 472 | 493 | 525 | 519 | 526 | 537 | 524 | 534 |
| Asia Pacific | 126 | 128 | 143 | 152 | 160 | 171 | 191 | 207 | 211 | 213 | 201 | 197 | 203 |
| Latin America | ਦਰੇ | 73 | ਰੇਰੇ | 124 | 148 | 168 | 168 | 164 | 152 | 134 | 123 | 113 | 111 |
| Africa, Middle East, India | 34 | 42 | 54 | 65 | ਦਰ | 70 | 70 | 68 | 66 | 62 | 55 | ਧਰੇ | 45 |
| USD in thousands | Note | Q1 2023 | Q1 2022 | FY 2022 |
|---|---|---|---|---|
| Revenue from contracts with customers | 2 | 40,532 | 34,366 | 145,610 |
| Other operating income | 2 | 18 | 350 | |
| Total revenue and other operating income | 40,532 | 34,384 | 145,960 | |
| Distribution and content expenses | 2,005 | 1,758 | 7,012 | |
| Employee benefit expenses | 24,787 | 18,134 | 82,967 | |
| Other operating expenses | 11,002 | 11,457 | 46,418 | |
| Operating profit/(loss) before deprec. and amortiz. (EBITDA) | 2,738 | 3,035 | 9,563 | |
| Amortization of intangible assets | 3,128 | 3,475 | 12,570 | |
| Depreciation | 736 | 460 | 2,081 | |
| Operating profit/(loss) (EBIT) | (1,126) | (900) | (5,088) | |
| Financial income | 664 | 40 | 820 | |
| Financial expenses | (aa) | (66) | (327) | |
| Net change in fair value of financial instruments | (197) | (1,031) | 3,415 | |
| Net foreign exchange gains (losses) | 15 | 277 | (4,681) | |
| Net financial income (expenses) | 383 | (780) | (773) | |
| Profit/(loss) before income tax | (743) | (1,680) | (5,861) | |
| Income tax | (748) | (480) | (8,149) | |
| Profit/(loss) for the period | 5 | (1,200) | 2,288 | |
| Profit/(loss) for the period attributable to: | ||||
| Equity holders of Kahoot! ASA | 5 | (1,200) | 2,288 | |
| Earnings per share in USD | ||||
| Basic earnings per share | 0.00 | (0.00) | 0.00 | |
| Diluted earnings per share | 0.00 | (0.00) | 0.00 |
| USD in thousands | 01 2023 | Q1 2022 | FY 2022 |
|---|---|---|---|
| Profit/(loss) for the period | 5 | (1,200) | 2,288 |
| Other comprehensive income/(loss): | |||
| Items that might be subsequently reclassified to profit or loss: | |||
| Exchange differences on translation of foreign operations | (750) | (1,181) | (4,614) |
| Total comprehensive income/(loss) for the period | (745) | (2,381) | (2,326) |
| Total comprehensive income/(loss) attributable to: | |||
| Equity holders of Kahoot! ASA | (745) | (2,381) | (2,326) |
| USD in thousands | Note 31.03.2023 | 31.12.2022 | |
|---|---|---|---|
| ASSETS | |||
| Goodwill | 486,169 | 487,161 | |
| Intangible assets | 155,324 | 158,757 | |
| Property, plant and equipment | 1,468 | 1,372 | |
| Right-of-use assets | 7,626 | 6,072 | |
| Deferred tax asset | 5,050 | 5,051 | |
| Total non-current assets | 655,637 | 658,413 | |
| Trade receivables | 17,849 | 18,478 | |
| Other current assets | 6,053 | 5,428 | |
| Cash and cash equivalents | 88,701 | 104,799 | |
| Total current assets | 112,603 | 128,705 | |
| TOTAL ASSETTS | 768,240 | 787,118 | |
| EQUITY AND LIABILITIES | |||
| Share capital | 3 | 5,773 | 5,773 |
| Share premium | 662,777 | 662,780 | |
| Share-based payments reserves | 40,379 | 34,739 | |
| Foreign currency translation reserves | (16,092) | (15,342) | |
| Accumulated deficit | (79,715) | (79,720) | |
| Total equity | 613,122 | 608,230 | |
| Lease liabilities | 5,562 | 4,337 | |
| Deferred tax liability | 41,851 | 42,673 | |
| Contract liabilities | 3,029 | 3,353 | |
| Other non-current liabilities | 8,454 | 9,709 | |
| Total non-current liabilities | 58,896 | 60,072 | |
| Lease liabilities | 2,557 | 2,083 | |
| Current tax liabilities | 33 | 11 | |
| Trade payables | 4,453 | 4,654 | |
| Contract liabilities | 73,784 | 74,964 | |
| Other current liabilities | 15,395 | 37,104 | |
| Total current liabilities | 96,222 | 118,816 | |
| Total liabilities | 155,118 | 178,888 | |
| TOTAL EQUITY AND LIABILITIES | 768,240 | 787,118 |
| Share- | Foreign | |||||
|---|---|---|---|---|---|---|
| based | currency | Accu- | ||||
| Share | Share | payment | translation | mulated | Tota | |
| USD in thousands | capital | premium | reserves | reserves | deficit | equity |
| Balance at 1 January 2022 | 5,707 | 651,581 | 16,963 | (10,728) | (82,008) | 581,515 |
| Profit/(loss) for the period | 2,288 | 2,288 | ||||
| Currency translation differences | (4,614) | (4,614) | ||||
| Total comprehensive income/(loss) for the period | (4,614) | 2,288 | (2,326) | |||
| Issuance of shares | ee | 11,238 | 11,304 | |||
| Transaction costs on equity issues | (39) | - | (За) | |||
| Share option program | 17,776 | 17,776 | ||||
| Balance at 31 December 2022 | 5,773 | 662,780 | 34,739 | (15,342) | (79,720) | 608,230 |
| Profit/(loss) for the period | 5 | 5 | ||||
| Currency translation differences | (750) | (750) | ||||
| Total comprehensive income/(loss) for the period | (750) | 5 | (745) | |||
| Issuance of shares | ||||||
| Transaction costs on equity issues | (3) | (3) | ||||
| Share option program | 5,640 | 5,640 | ||||
| Balance at 31 March 2023 | 5,773 | 662,777 | 40,379 | (16,092) | (79,715) | 613,122 |
| USD in thousands | Share capital |
Share premium |
Share- based payment reserves |
Foreign currency translation reserves |
Accu- mulated deficit |
Tota equity |
|---|---|---|---|---|---|---|
| Balance at 1 January 2022 | 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 | 29 | 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 |
| USD in thousands | Q1 2023 | Q1 2022 | FY 2022 |
|---|---|---|---|
| Cash flows from operating activities | |||
| Profit/(loss) before income tax | (743) | (1,680) | (5,861) |
| Adjustments for | |||
| Depreciation and amortization | 3,864 | 3,935 | 14,651 |
| Share-based payments expense | 5,640 | 3,307 | 17,776 |
| Change in trade receivables | 613 | 116 | (7,058) |
| Change in contract liabilities | (1,480) | (1,843) | 18,357 |
| Change in trade payables | 134 | (687) | (943) |
| Change in other current assets and other liabilities | (1,358) | 487 | 4,459 |
| Taxes paid | (13) | ||
| Interest received | 664 | 40 | 820 |
| Financial expenses | (ਰੇਰੇ) | (66) | (327) |
| Net cash flow from operating activities | 7,235 | 3,609 | 41,861 |
| Cash flows from investing activities | |||
| Payment for acquisition of subsidiary, net of cash acquired * | (22,446) | (32,876) | (41,231) |
| Payment for intangible assets | (456) | (892) | |
| Payment for property, plant and equipment | (563) | (301) | (946) |
| Net cash from investing activities | (23,009) | (33,633) | (43,069) |
| Cash flows from financing activities | |||
| Proceeds from issuance of ordinary shares | 860 | ||
| Transaction costs on issuance of ordinary shares | (8) | (28) | (40) |
| Repayments of lease liabilities | (441) | (251) | (1,295) |
| Paid interest on lease liabilities | (a) | (26) | (161) |
| Net cash from financing activities | (540) | (305) | (636) |
| Net increase/(decrease) in cash and cash equivalents | (16,314) | (30,329) | (1,844) |
| Cash and cash equivalents beginning of the period | 104,799 | 107,765 | 107,765 |
| Effects of exchange rate changes on cash and cash equiv. | 218 | (568) | (1,122) |
| Cash and cash equivalents as of end of period | 88,702 | 76,868 | 104,799 |
Cash outflow for acquisitions of subsidiaries only relates to contingent and deferred consideration liabilities paid in for acquisitions in 2020 and 2021. For further information please see note 4 in the 2022 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 2023, have been prepared in accordance with IAS 34 Interim Financial Reporting, and authorized for issue by the board of directors on 3 May 2023. 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 2022.
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 2022.
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 2023 Q1 2022 | FY 2022 | |
|---|---|---|---|
| Subscription revenue - recognized over time | 40.356 | 34.183 | 144,621 |
| Other revenue - recognized at point in time | 176 | 183 | ਰੇਡਰੋ |
| Total revenue from contracts with customers | 40,532 | 34,366 | 145,610 |
| Other operating income | 18 | 350 | |
| Total revenue and other operating income | 40,532 | 34,384 | 145,960 |
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 2023 | 492,836,049 | 49,283,605 | 5,772,713 |
| Issued during the year | 0 | 0 | o |
| Balance at 31 March 2023 | 492,836,049 | 49,283,605 | 5,772,713 |
The share capital is fully paid and has a par value of NOK 0.10.
At the Annual General Meeting of Kahoot! ASA on 27 May 2022, the Board of Directors were authorized to increase the share capital by up to NOK 9 million through the issuance of up to 90 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 1.5 million.
For information relating to the Group's Employee Option and RSU Plan, please see the Guidelines for salary and other remuneration approved by the Annual General meeting on 27 May 2022 and note 17 in the 2022 Annual Report.
| Note 4 - Shareholder information per 31 March |
2023 | ||
|---|---|---|---|
| -------------------------------------------------- | -- | -- | ------ |
| Approx. 36,000 shareholders per 31 March 2023 | Shares (m) | క్కర్ |
|---|---|---|
| JPMorgan Chase Bank | 74.1 | 15.0 % |
| Glitrafjord AS | 41.3 | 8.4 % |
| Creandum III LP | 20.0 | 4.1 % |
| Folketrygdfondet | 20.0 | 4.0 % |
| Datum AS | 18.0 | 3.7 % |
| Citigroup Global Markets Inc. | 13.5 | 2.7 % |
| Danske Bank A/S | 13.1 | 2.7 % |
| The Northern Trust Comp | 9.7 | 2.0 % |
| Newbrott AS | 7.6 | 1.5 % |
| State Street Bank and Trust Comp | 7.4 | 1.5 % |
| State Street Bank and Trust Comp | 6.1 | 1.2 % |
| Nordnet Bank AB | 6.0 | 1.2 % |
| JPMorgan Chase Bank | 5.8 | 1.2 % |
| MP pensjon PK | 5.6 | 1.1 % |
| Clearstream banking S.A. | 5.3 | 1.1 % |
| Gamification AS | 5.0 | 1.0 % |
| J.P. Morgan SE | 5.0 | 1.0 % |
| UBS Switzerland AG | 4.6 | 0.9 % |
| Citibank, N.A. | 4.5 | 0.9 % |
| Verdipapirfondet KLP | 4.2 | 0.9 % |
| Other | 216.0 | 43.8 % |
| Total outstanding shares | 492.8 | 100 % |
| Outstanding share options / RSUs | 329 | |
| Total no. of shares (fully diluted) | 525.7 |
Investors with shareholding exceeding 5%: General Atlantic and Glitrafjord (CEO, Eilert Hanoa)
In the first quarter 2023 there were no transactions between the Group and related parties.
No events that have significantly affected or may significantly affect the operations of the Group have occurred after 31 March 2023.
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