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Kahoot! ASA
Investor Presentation • Oct 29, 2020
3641_rns_2020-10-29_852791c3-b818-405c-ad08-824b59125fe0.pdf
Investor Presentation
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Make learning awesome
Q3 2020 Presentation October 29, 2020
Our vision is to build the leading learning platform in the world
Why everyone loves Kahoot!
Embraced by 7m teachers
Kahoot! helps me engage students in class and for homework, and also works great for virtual " lessons even when school is closed
As do millions of teachers globally
Loved by students across the globe
I love Kahoot! It makes learning fun!
As do hundreds of millions of students
Trusted by parents and families
As do millions of families around the world
Integral for corporate culture and learning
Kahoot! breaks down barriers and connects teams
As do hundreds of thousands of organizations in over 150 countries
Kahoot! today
Scalable cloud platform
Large market opportunity*
Recognized market leader
Viral business model
Active accounts whereof 7m teachers and educators
Paid subscriptions growing approx. 160% YoY, including teachers and professionals
User generated kahoots with over 1bn participating players LTM
21m+ 360K+ 100m+ 90-100%
Net dollar retention, above 100% for larger organizations
*Based on estimated EdTech market in 2020 from Goldman Sachs Education Technology Sector trends and market update May 2020
Highlights Q3 2020
- Continued growth on the Kahoot! platform with more than 21 million active accounts last twelve months representing 45% year on year growth per Q3 2020
- Strong growth in paid subscriptions, reaching 360K in Q3 2020, an increase of 90K paid subscriptions from Q2 2020
- Q3 2020 invoiced revenue growth of 241% to \$11.6m, up from \$3.4m in Q3 2019. The quarter over quarter growth in invoiced revenue was 21% in Q3 2020
- Positive cash flow from operations of \$5.2m in Q3 2020 representing 45% cash conversion from invoiced revenue, compared to -\$0.6m in Q3 2019
- Solid financial cash position with cash and cash equivalents of \$72m per Q3 2020. The company has no interest-bearing debt.
- EBITDA for Q3 2020 was \$1.0m compared to -\$1.7m for Q3 2019
- Announced the acquisition of Actimo, an employee engagement platform that empowers organizations to more efficiently build corporate culture with better communication, training and interaction with the workforce. The transaction was completed October 5, 2020
160%
YoY growth in paid subscriptions per Q3
241% Q3 YoY growth in invoiced revenue
45%
Q3 cash conversion from invoiced revenue
Kahoot! accelerating momentum
Active accounts LTM 1)
Paid subscriptions 2)
1) Active accounts LTM is defined as unique user accounts hosting a game with one participant or more LTM 2) Paid subscriptions is defined as total number of users on paid subscription per the end of the period 3) Conversion to paid subscriptions in all segments from customers in more than 150 countries
Invoiced revenue 3)
New and existing customers are making learning awesome
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Continued growth in accounts and usage
Last twelve months (in millions)
The user growth on the Kahoot! platform in the last twelve months continued, with more than 21m active accounts (45% YoY growth). Number of hosted games last twelve months was 224m (10% YoY growth) with 1.3bn participants (19% YoY growth)
Continued growth in paid subscriptions
Kahoot! reached 360K paid subscriptions as of Q3 2020, compared to 270K end of Q2 2020 (33% QoQ growth), and the YoY growth for Q3 was 160%. Subscriptions per category; 105K Work, 180K School and 75K in the Home and Study category (including DragonBox curriculum)
Quarterly invoiced revenue development
Invoiced revenue (in millions USD)
Total invoiced revenue in Q3 2020 of \$11.6m representing 241% growth compared to Q3 2019, and 21% quarter over quarter growth vs. Q2 2020
Invoiced revenue per region
Kahoot! has paying subscribers in more than 150 countries, USA and Canada represent approx. 49% of invoiced revenue and Europe approx. 35% in Q3 2020
Key financial figures development
| 03'20 | Q2'20 | Q1'20 | 04'19 | 03.19 | 02'19 | Q1'19 | |
|---|---|---|---|---|---|---|---|
| Invoiced revenue | 11,6 | 9,6 | 6,4 | 5,3 | 3,4 | 2,3 | 2,0 |
| Invoiced revenue growth QoQ | 2,0 | 3,2 | 1,1 | 1,9 | 1,1 | 0,3 | 0,3 |
| Recognized revenue | 7,6 | 5,8 | 4,5 | 4,0 | 2,2 | 1,4 | 1,2 |
| Total operating expenses | 6,6 | -7,1 | -5,4 | -5,1 | -3,9 | -3,4 | -3,3 |
| EBITDA | 1,0 | -1,3 | -1,0 | -1,2 | -1,7 | -2,0 | -2,2 |
| Net cash flow from operations | 5,2 | 3,8 | 0,9 | 1,2 | -0,6 | -1,5 | -1,9 |
| Cash and cash equivalents 21 | 72,5 | 73,4 | 34,0 | 40,9 | 13,4 | 24,7 | 26,5 |
| Full time employee equivalents | 127 | 128 | 120 | 110 | 100 | 73 | 62 |
1) Includes \$1.3m in social security cost related to exercised share options in the second quarter
2) Cash and cash equivalents per Q3 2020 impacted by Q3 payments of employee withholding taxes, social security cost and transaction cost related to the new share issue and share option exercise which took place in June
- Invoiced and recognized revenue continue to grow quarter over quarter
- Lower growth in total operating expenses combined with strong cash collection of invoiced revenue drive positive cash flow from operations
- EBITDA margin of 13% in Q3
- Solid cash position and cash flow from operations
- Continued efforts to develop the company, adding product and commercial talents
Profit & loss statement per Q3 2020
| Q3 2020 Q3 2019 | Growth YTD 2020 YTD 2019 | Growth | ||||
|---|---|---|---|---|---|---|
| Invoiced revenue | 11,6 | 3,4 | 241 % | 27,7 | 7,7 | 259 % |
| Net change unrecognized revenue | -4,0 | -1,2 | -9,8 | -2,9 | ||
| Recognized revenue | 7,6 | 2,2 | 245 % | 17,9 | 4,8 | 275 % |
| Cost of goods sold | -0,9 | -0,2 | -2,1 | -0,5 | ||
| Payroll & consulting 11 | -3,7 | -2,6 | -11,5 | -6,8 | ||
| Other operating expenses | -2,1 | -1,1 | -5,5 | -3,3 | ||
| Total operating expenses | -6,6 | -3,9 | 69 % | -19,1 | -10,6 | 80 % |
| EBITDA | 1,0 | -1,7 | -1,2 | -5,8 |
1) Includes \$1.3m in social security cost YTD 2020 related to exercised share options in the second quarter
- Invoiced revenue of \$11.6m in Q3 2020, compared to \$3.4m in Q3 2019 representing 241% growth
- Invoiced revenue growth compared to Q2 2020 was 21%
- Invoiced revenue for YTD 2020 was \$27.7m compared to \$7.7m YTD 2019, representing 259% growth
- Recognized revenue for Q3 2020 was \$7.6m compared to \$2.2m for Q3 2019, representing 245% growth. Revenue growth YTD 2020 was 275%
- EBITDA for Q3 2020 was \$1.0m compared to -\$1.7m for Q3 2019
Balance sheet per Q3 2020
| Sep 30, 2020 | Sep 30, 2019 | Dec 31, 2019 | |
|---|---|---|---|
| Capitalized R&D | 1,8 | 2,8 | 2,6 |
| licenses & domain | 0,2 | 0,2 | 0,2 |
| Goodwill | 18,7 | 24,7 | 24,1 |
| Deferred tax asset | 4,7 | 3,3 | 5,1 |
| Total intangible fixed assets | 25,4 | 31,0 | 32,0 |
| Property and equipment | 0,3 | 0,3 | 0,3 |
| Financial fixed assets | 0,0 | 0,0 | 0,0 |
| Total fixed assets | 25,8 | 31,3 | 32,3 |
| Inventory/deferred cost of goods sold | 0,5 | 0,2 | 0,1 |
| Accounts receivable | 1,0 | 1,3 | 1,3 |
| Prepaid expenses and other current assets | 1,3 | 0,6 | 0,6 |
| Cash and cash equivalents | 72,5 | 13,4 | 40,9 |
| Total current assets | 75,4 | 15,5 | 42,9 |
| Total assets | 101,1 | 46,8 | 75,2 |
| Total equity | 81,6 | 40,3 | 65,0 |
| Accounts payable | 1,2 | 0,5 | 0,9 |
| Public duties payable | 1,0 | 0,0 | 1,7 |
| Deferred revenue | 16,3 | 5,3 | 6,7 |
| Other current liabilities | 1,1 | 0,7 | 0,9 |
| Total current liabilities | 19,5 | 6,5 | 10,2 |
| Total equity and liabilities | 101,1 | 46,8 | 75,2 |
- Cash and cash equivalents per Q3 2020 were \$72.5m, and reflects Q3 payments of employee withholding taxes, social security cost and transaction cost related to the new share issue and share option exercise which took place in June
- Deferred revenue reached \$16.3m per Q3 2020, compared to \$5.3m per Q3 0219, an increase of \$11.0m. Deferred revenue per Q2 2020 was \$12m
- No long-term debt and equity ratio of 81%.
- Goodwill from the 2019 acquisitions of DragonBox and Poio are amortized linearly over 5 years and represented \$18.7m per Q3 2020
Cash flow statement per Q3 2020
| Q3 2020 | 03 2019 | YTD 2020 YTD 2019 | ||
|---|---|---|---|---|
| Net cash flow from operating activities | 5,2 | -0,6 | 10,0 | -3,9 |
| Net cash flow from investment activities | 0,0 | -9,5 | -0,1 | -9,7 |
| Net cash flow from financing activities | -6,8 | 0,0 | 24,9 | 0,2 |
| Translation differences | 0,7 | -1,2 | -3,2 | -1,5 |
| Net change in cash and cash equivalents | -0,9 | -11,3 | 31,6 | -14,9 |
| Cash and cash equivalents at begin. of period | 73,4 | 24,7 | 40,9 | 28,3 |
| Cash and cash equivalents at end of period | 72,5 | 13,4 | 72,5 | 13,4 |
- Positive cash flow from operations in Q3 2020 of \$5.2m compared to -\$0.6m in Q3 2019
- Marginal negative cash flow from investing activities as R&D costs are expensed as they occur
- \$6.8m Q3 payment effect of employee withholding taxes, social security cost and transaction cost related to the new share issue and share option exercise which took place in June
- Significant shifts in USD exchange rate impacts translation differences on cash held
Forward looking statement
| Actual FY 2018 |
Actual FY 2019 |
Actual Q1-Q3 2020 |
Guidance FY 2020 |
||
|---|---|---|---|---|---|
| Invoiced revenue | \$3.5m | \$13m | \$27.7m | \$41-42m | |
| Paid subscriptions | 46K | 170K | 360K+ | 400K+ | |
| Active accounts LTM | 12m | 16m | 21m+ | 22m+ |
- In Q4, the Kahoot! Group expects invoiced revenue to reach \$14m, a 20% quarter on quarter growth, where Actimo will contribute with approx. 10%
- For the full year 2020, the Kahoot! Group expects invoiced revenue to reach \$41-42m (including contribution from Actimo in Q4), a 220% growth year on year
- Continued solid cash flow from operations in the fourth quarter 2020
- Paid subscriptions (not including Actimo) are expected to exceed 400K by the end of 2020 and active accounts are expected to exceed 22m
- The company is preparing for a main listing at Oslo Stock Exchange in Q1 2021
Kahoot! ambitions next three years
* Not including Home & Study subscriptions
Summary
Join the Kahoot! journey
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kahoot.com/school kahoot.com/study kahoot.com/work kahoot.com/investor kahoot.com/home
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Shareholders overview
Kahoot! AS has a total of 445.2m common shares and more than 9,000 shareholders. The shares are listed on Merkur Market on Oslo Stock Exchange with ticker code KAHOOT-ME
| Shareholders per October 27, 2020 | Shares | 0/0 | |
|---|---|---|---|
| 1 | Datum Group | 52 130 865 | 11,6 % |
| 2 Northzone Ventures Norway AS | 48 033 280 | 10,7 % | |
| 3 Goldman Sachs International | 42 994 000 | 9,6 % | |
| 4 AS Real-Forvaltning/Glitrafjord | 36 708 910 | 8,2 % | |
| 5 | Creandum III LP | 23 550 832 | 5,3 % |
| 6 Microsoft Global Finance | 20 820 000 | 4,6 % | |
| 7 | Citigroup Global Markets Inc. | 13 500 000 | 3,0 % |
| 8 | Versvik Invest AS | 12 962 076 | 2,9 % |
| 9 | Newbrott AS | 7 606 000 | 1,7 % |
| 10 State Street Bank and Trust Comp | 7 439 085 | 1,7 % | |
| 11 | J.P. Morgan Bank Luxembourg S.A. | 6 600 000 | 1,5 % |
| 12 | MP Pensjon PK | 5 991 435 | 1,3 % |
| 13 | Gamification AS | 5 372 777 | 1,2 % |
| 14 | Morgan Stanley & Co. LLC | 5 145 713 | 1,1 % |
| 15 | Verdipapirfondet DNB Norden | 4 998 354 | 1,1 % |
| 16 | J.P. Morgan Bank Luxembourg S.A. | 4 800 000 | 1,1 % |
| 17 | Sanden AS | 4 340 000 | 1,0 % |
| 18 Goldman Sachs & Co. LLC | 4 131 932 | 0,9 % | |
| 19 | Verdipapirfondet DNB Grønt Norden | 3 171 985 | 0,7 % |
| 20 | Adrian AS | 3 156 750 | 0,7 % |
| Other | 134 935 554 | 30,1 % | |
| Total outstanding shares | 448 389 548 | 100,0 % | |
| Outstanding share options | 17 515 153 | ||
| Total no. of shares (fully diluted) | 465 904 701 |
28%
Kahoot! share information
| Ticker | |
|---|---|
| Oslo Stock Exchange (Merkur Market): | KAHOOT-ME |
| Reuters: | KAHOOT-ME.OL |
| Bloomberg: | KAHOOTME:NO |
| Number of shares: | 445,232,798 |
| Outstanding share options: | 17,515,153 |
| Total no. of shares (fully diluted): | 462,747,951 |
| Free float: | >95% |
| Share price (October 28, 2020): | NOK 57.50 |
| Average daily trading volume YTD (shares): | 925,000 |
| Market Cap total (October 28, 2020) | NOK 25.6bn |
About Kahoot!
Kahoot!
Kahoot! started 2012 as a quiz-based game to ensure attention, create engagement and provide knowledge in classrooms
Global recognized brand with a viral distribution model based on scalable technology platform
User centric, data-driven and iterative approach to product development and innovation
100m user generated Kahoots, over 200m games played last 12 months with over 1.3bn participating players
2013-17 2018 2019 2020
Launched September 2013
Growth focus on US and K-12
Top 3 tool in US education
50+ employees
Launched first commercial editions with 40k paid subscriptions
Launched mobile apps for iOS and Android
75+ employees
New commercial subscription editions for all segments
Reaching 170k paid subscriptions
Acquisition of Poio and DragonBox
120+ employees
Expanding commercial with 360k paid subscriptions
Launched first platform service
Acquired Actimo for Enterprise Learning
130+ employees
To play Kahoot! is to promote Kahoot!
The Kahoot! viral business model generates over 1m new accounts and over 2m app downloads every month
All prices per teacher per month
HigherEducation
\$ 5 / \$10 / \$15
at sch ool
All schools (K-12)
\$1 / \$3 / \$6
Premiumeditions
Over 100 million games have been played by families and friends around the globe
Free and from \$5 per user per month
Em braced by over 5 m illion teacher s Loved by hu nd red s of m illions of students Em po wering students f rom lear ner s to leader s
Over 180K+ teachers are paying for premium editions to drive learning and engage students
Free and from \$3 per teacher per month
I n t ro d ucin g
Business suite Q 4 2019
All prices per presenter/host per month
M illions of em p loyees p laying Kahoot ! 97% of Fortu ne 500 is u sing Kahoot! Ener gizing audience in events of any size
at w or k 100K+ businesses breaking down barriers and connecting teams with our professional editions
From \$10 per user per month
For professionals \$10 / \$20 / \$ 40
Connecting the global educator community and providing high-quality, verified content, to ensure that every student gets access to awesome learning at school and home
10m+
are using Kahoot! at home with over 100 million games
Explore &
played by families Peer-to-peer at home learn Bringing math to life Learn through play 100s of millions of students Learn to read
Study at home
study
Introducing Language Learning
Over
10.000
educational institutions have already deployed multiuser Kahoot! teacher licenses
Roll out a site licence
100s of millions
of students
| Invite members | ||
|---|---|---|
| Invite with a unique shareable link | ||
| )7fcc751a60/027a23f3-6719-4713-9e9d-a01202164692 | Copy | Delet |
Empower
& connect
teachers
Embraced by over 7 million teachers globally
Make lessons interactive
& =
an even more awesome student learner experience
Engagement & Communication
Company culture
Training & development
A better experience for all learners
Presentations & meetings
The Next Generation tool for Corporate Culture and Learning...
players in thousands of games created by our content partners 30m+ players enjoying kahoots created by our partners
Partnering with
leading publishers
and organizations
7m+
educators & teachers, and hundreds of millions of students across the world use Kahoot! to make learning awesome
Marketplace for educators
Community & networking Community & Network
Premium verified
content
Embraced by over 6 million players monthly
If teachers didn't try new things, our students wouldn't get the best from us. Aimee Copple "
Knowledge portal
A marketplace connecting the global educator community and providing high-quality, verified content, from educators and premium partners. Accessible for educators, teachers, students and individuals to ensure awesome learning.
