Investor Presentation • Oct 10, 2019
Investor Presentation
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Make learning awesome
Company presentation October 10th 2019
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
A ll prices per teacher per m onth
M illions share m em orable m om ents!
Practice
Creating excitem ent f or alg ebra and g eom etry
97% of Fortune 500 is using Kahoot!
For p ro fe ssio nals \$10 / \$20 / \$ 40
I n t ro d u cin g
Busin ess suite
\$ TBA (Q4 2019)
A ll prices per presenter/host per m onth
Premium editions for teachers to increase conversion
Building a learning suite for families combining the premium apps on subscription
Launch additional products to expands corporate learning
Kahoot! basic edition always free for teachers and personal use
Kahoot! invoiced revenues per Quarter (mUSD)
Q2-19 invoiced revenues grew to USD 2.3m (15% QoQ, 300% YoY) reaching 95k paying seats
Forecast Q3-19 growth of 40-50% QoQ, 300% YoY in invoiced revenues, approx. 120k paying seats
Kahoot! Automated sales – Quarter (T USD) Kahoot! Automated sales – Quarter (%)
Kahoot! has paying subscribers from automated sales in more than 150 countries USA and Canada represent approx. 53% revenues (Europe approx. 30%) in Q2-19
*Not including acquisitions of DragonBox and Poio
Kahoot! operating revenues (mill USD)
*Not including acquisitions of DragonBox and Poio
Poio and DragonBox acquisitions closed ultimo August 2019 and integrated into the Kahoot! Group as of September 2019
Poio and DragonBox product launches according to plan, including US edition of Poio in Q4-19. Strong contribution from the acquired teams to build the Kahoot! Family subscription including Poio and DragonBox to be launched summer 2020
DragonBox School (full math curriculum for 1 st -3 rd grade) doubling numbers of schools using DragonBox with 17,000 students in Norway and Finland
Gross revenues for both companies forecasted to reach USD 3m in 2019 with a combine cost base of USD 3.5m (on a stand-alone basis)
Reach over \$100m in customer base value, indicating an MRR of \$9-\$10m
Continuously launching new and improved value features and services for all segments
Increase conversion rates free to paid with upgrade path for all paying customers
Estimated segment split with 20% at school, 20% at home and 60% at work in 2022
Launching in Q4 2019
From \$100 per organization per month
From \$1 per employee per month
Scalable cloud platform
Large market opportunity1
Recognized market leader
Viral business model
YoY growth in billed revenue
Net new paid seats in 2019
New sales 20192
Net dollar retention
1. Based on estimated EdTech market in 2020 from Goldman Sacks Education Technology Sector trends and market update August 2019 2. Not including Poio and DragonBox
| 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 |
Including only unique active accounts hosting games last twelve months (LTM), updated September 2019
Good continued growth in all territories and segments
Teacher segment represent approx. 70% of the activity on the Kahoot platform (vs 72% last year)
Business segment represent approx. 2% of the activity on the Kahoot platform
All figures in thousands USD
| 2019-Q2 | 2018-Q2 | Growth | 2019-H1 | 2018-H1 | Growth | 2018 | |
|---|---|---|---|---|---|---|---|
| Invoiced Revenue | \$2 303 | \$569 | 305 % | \$4 311 | \$887 | 386 % | \$3 480 |
| Net change unrecognized revenues | -\$905 | -\$225 | -\$1 744 | -\$383 | -\$1 549 | ||
| Total Recognized Revenue | \$1 398 | \$343 | 307 % | \$2 567 | \$504 | 409 % | \$1 932 |
| COGS | -\$156 | -\$14 | -\$289 | -\$26 | -\$160 | ||
| Payroll/Consulting | -\$1 975 | -\$1 397 | -\$4 164 | -\$4 357 | -\$8 104 | ||
| Other OPEX | -\$1 246 | -\$837 | -\$2 266 | -\$1 724 | -\$3 455 | ||
| Total Operating Expenses | -\$3 377 | -\$2 248 | 50 % | -\$6 719 | -\$6 108 | 10 % | -\$11 719 |
| EBITDA | -\$1 979 | -\$1 904 | -\$4 151 | -\$5 604 | -\$9 788 | ||
| T USD | Invoiced Revenues per Quarter | ||||||
| \$2 500 | |||||||
| \$2 000 | |||||||
| \$1 500 | |||||||
| \$1 000 | |||||||
| \$ 500 | |||||||
| \$ 0 | |||||||
| 2018-Q1 2018-Q2 |
2018-Q3 | 2018-Q4 | 2019-Q1 | 2019-Q2 |
Q2-19 total invoiced USD 2.3m with recognized revenues of USD 1.4m, a 15% growth from Q1-19
The cost base for H1-19 increased with 10% vs H1-18.
No external marketing cost related to the sales of Kahoot
Recurring revenue: 90% of all subscription revenues is on annual contracts, hence the net change in unrecognized revenues
| 30.06.2019 | 30.06.2018 | 31.12.2018 | |
|---|---|---|---|
| Intangible fixed assets | \$6 827 | \$6 882 | \$6 486 |
| Property and equipment | \$221 | \$55 | \$185 |
| Financial fixed assets | \$116 | \$0 | \$0 |
| Total fixed assets | \$7 163 | \$6 938 | \$6 671 |
| Current assets | \$1 591 | \$693 | \$926 |
| Cash and cash equivalents | \$24 701 | \$16 256 | \$28 127 |
| Total current assets | \$26 291 | \$16 948 | \$29 053 |
| Total assets | \$33 455 | \$23 886 | \$35 724 |
| Total equity | \$29 493 | \$21 541 | \$33 178 |
| Current liabilities | \$634 | \$1 811 | \$893 |
| Unrecognized revenues | \$3 327 | \$533 | \$1 652 |
| Total current liabilities | \$3 962 | \$2 344 | \$2 545 |
| Total equity and liabilities | \$33 455 | \$23 886 | \$35 724 |
Cash and cash equivalents by 30.06.19 is USD 24.7, no long term debt
Unrecognized revenues per Q2 19 is USD 3.3m, up from USD 2.5m per Q1- 19
Closing and payment of both acquisitions (DragonBox and Poio) took place in Q3-19 (August).
| Shareholder | Shares | % | |
|---|---|---|---|
| 1 | NORTHZONE VII L.P. | 15 577 760 | 12.8 % |
| 2 | Diabase AS (Datum Group) | 14 295 870 | 11.8 % |
| 3 | CREANDUM III LP | 11 044 420 | 9.1 % |
| 4 | AS REAL-FORVALTNING/K! Invest AS | 9 267 740 | 7.6 % |
| 5 | MICROSOFT GLOBAL FINANCE | 6 940 000 | 5.7 % |
| 6 | KAM HOLDING AS | 4 779 020 | 3.9 % |
| 7 | VERSVIK INVEST AS | 4 620 692 | 3.8 % |
| 8 | Citigroup Global Markets Inc. | 4 500 000 | 3.7 % |
| 9 | WWTK HOLDING AS | 3 868 636 | 3.2 % |
| 10 | NEWBROTT AS | 3 052 000 | 2.5 % |
| 11 | NORDA ASA | 2 791 870 | 2.3 % |
| 12 | MP PENSJON PK | 2 337 332 | 1.9 % |
| 13 | GLITRAFJORD AS | 2 000 000 | 1.6 % |
| 14 | GAMIFICATION AS | 1 866 600 | 1.5 % |
| 15 | DATUM VEKST AS | 1 740 000 | 1.4 % |
| 16 | VERDIPAPIRFONDET DNB NORGE | 1 691 301 | 1.4 % |
| 17 | SANDEN AS | 1 624 000 | 1.3 % |
| 18 | SKØIEN AS | 1 530 000 | 1.3 % |
| 19 | ADRIAN AS | 1 052 250 | 0.9 % |
| 20 | BULLRIS INVEST AS | 1 000 000 | 0.8 % |
| Other | 26 010 005 | 21.4 % | |
| Total outstading shares | 121 589 496 | 100.0 % | |
| Employee option pool | 10 000 000 | ||
| Total no. of shares (fully diluted) | 131 589 496 |
Kahoot has a total of 121.6m common shares. Kahoot! AS has 380 shareholders and is registered on the Norwegian OTC list with ticker code "KAHOOT".
Employee option program: Four year annual vesting until Q4'22. 75% distributed.
Gross revenue for both companies forecasted to reach USD 3M in 2019 (on a stand-alone basis).
Approx. USD 2M in gross revenue in App store (30% COGS) and Annual Recurring Revenue from DragonBox School expected to reach USD 1M in 2019 (NO and FI).
Combined cost base both companies forecasted to USD 3.5M in 2019 (on a stand-alone basis).
Transaction details for both acquisition (closed 22 and 29 Aug) Total purchase price USD 23.7M where of cash USD 9.2M and Kahoot shares USD 14.6M
5,252,296 new kahoot shares have been issued on the two transaction at NOK 25 per share representing a 4.3% ownership in Kahoot! AS.
"The acquisition of DragonBox and Poio extends the offering of learning products at school and at home, builds a stronger pedagogy and enables additional innovative teams"
Reach USD +50m in operating revenues EBITDA margin over 40% MRR USD 4.5m (Monthly Recurring Revenues) 500K paid seats end of 2021
Total invoiced revenues up to USD 14.0-17.5m Operating revenues approx. USD 10m Cost base increase 20% to USD 14m MRR over USD 1m 150K paid seats end of 2019
QoQ growth 40-50% (vs Q2 2019) 120K paid seats end of Q3 2019
Increase Invoiced gross revenue in 2021 to USD 70M including acquired units. Goal to reach a customer base value of USD 100-125M in 2022 based on the following assumptions:
Forward looking statement (new group) Current offerings Kahoot! at school Teachers: 5m Active teachers whereof 40K paid Subscriptions (K!) Student: 15K students on DragonBox School curriculum subscriptions
Free Kahoot! social web and app and premium apps from DragonBox and Poio
Presenters: 500K registered accounts whereof 55K paid Subscriptions (K!)
Employees: To be announced H2-19
The quarterly growth in billed revenues continued in 2019.
Automated sales: Online purchase with credit card, Apple Pay, PayPal or Apple App Store and Google Play
Key Accounts: Assisted sales with invoice, content partnership, events and other corporations
Kahoot! automated sales by segment
The quarterly growth in billed revenues from automated sales where key accounts not included
Kahoot Plus/Pro for Schools and Kahoot for Higher Education represent 13% of automated sales in Q2-19.
By end Q2-19 Kahoot! reached 95K paid seats with 54K from business accounts and 41K from Schools & Higher Education accounts
Kahoot! has paying customers/ subscribers from automated sales in more than 150 countries
USA and Canada represent approx. 53% revenues (Europe approx. 30%) in Q2-19.
The K-12 product offerings launched in Sep 2018, optimized for the US market.
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