Investor Presentation • Nov 3, 2022
Investor Presentation
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Q3 2022 Presentation 3 November 2022
The following presentation is being made only to, and is only directed at, persons to whom such presentation may lawfully be communicated ('relevant persons'). Any person who is not a relevant person should not act or rely on this presentation or any of its contents. Information in the following presentation relating to the price at which relevant investments have been bought or sold in the past or the yield on such investments cannot be relied upon as a guide to the future performance of such investments.
This presentation does not constitute an offering of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire securities in Kahoot! ASA. The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law, and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about, and observe, such restrictions.
This presentation contains statements regarding the future in connection with the Kahoot! Group's growth initiatives, outlook, strategies and objectives. All statements regarding the future are subject to inherent risks and uncertainties, and many factors can lead to actual profits and developments deviating substantially from what has been expressed or implied in such statements. The comments in the presentation are related to Kahoot!'s development in 2022 compared to the same quarter of 2021, unless otherwise stated.
Driven by our values and our purpose, we are on a mission to improve lifelong learning by building the leading learning and engagement platform in the world
Kahoot! was named to Fast Company's second annual "Brands That Matter" list, recognizing companies and organizations making a meaningful impact on the world as they connect with and inspire their users


The 2022 EdTech App Report from Lightspeed Systems shows Clever and Kahoot! as the 3rd and 4th most extensively used EdTech apps in U.S. K-12 school districts, following Google services.



corporate learning & engagement
classroom engagement & learning
digital learning platform for schools & districts
learning with family & friends creator community & marketplace
distinct and versatile software solutions with signature user experience, continuous product innovation value-add across all offerings
leverage global love brand for learning and engagement across school, corporates and home
commercial leverage across vast platform and ecosystem of users, partners and content, proven network effects

PROFITABLE GROWTH
capital light, cost effective and viral distribution model, fueling R&D and growth initiatives
A purpose-led, value-driven, diverse and industry experienced team with passion to drive growth and best user-experience

*) Not including share-based payment expenses and related payroll taxes for the Group's share option program, and acquisition-related expenses and listing cost preparations

Continued solid commercial performance with double digit growth across all our customer categories, alltime high adjusted EBITDA, and our scalable operating platform delivering a strong growing operational cash flow
Demand across our customer categories, including Clever, remained solid in the third quarter, with the back to school season progressing broadly in line with our expectations.
Continued conversion and growth among professional users on our platform. Professional subscriptions grew organically 26% year over year. Our sales pipeline for larger team and organization deals is also strong and growing steadily, providing us with a solid foundation for growth in the coming quarters and beyond, as we look to expand within organizations through our product led growth strategy.
During the important back to school season driven by growth in network, usage and new app partners. Clever added several new paid app partners during the third quarter, resulting in a total of 550+ paid app partners and 850+ overall on the platform.


Continuous additions to be the most engaging platform

A premium offering to professional users

One platform and app store for all teaching needs

Premium, ready-made content for every learning need

Q3 FINANCIALS
55% YOY GROWTH IN REVENUE

YOY GROWTH IN INVOICED REVENUE

YOY GROWTH IN ADJUSTED EBITDA
up 55% YoY, and YTD total revenue of \$107m up 84% YoY
whereof Clever contributed with approx. \$54m from its U.S. ecosystem partners
up 94% YoY, including Clever, which contributed \$29m in the quarter. Excluding Clever, invoiced revenue in the third quarter grew \$2.8m YoY to \$24.9m, up 13% YoY. YTD invoiced revenue grew \$57.6 million YoY to \$125.1 million, up 85%
(excluding share-based compensation expenses and related payroll taxes, acquisition related expenses and listing cost), up 35% YoY. YTD adjusted EBITDA grew \$6.8 million YoY to \$20.6 million, up 50%.
across all services, up 23% YoY, representing an organic increase in the quarter of 40K, whereof 20K on the Kahoot! platform.
Per the end of Q3, Kahoot! at Work reached approx. 550K paid subscriptions, Kahoot! at School reached approx. 425K paid subscriptions and Kahoot! at Home & Study reached approx. 275K paid subscriptions
(excluding payment of listing preparations and acquisition cost, and cash effects related to share-based compensation), and \$25.4 million YTD.
as of 30 September 2022, the Group has no interest-bearing debt
47% YoY growth LTM in active accounts for Work, and a total of 26.7m active accounts LTM including school and personal users (home)

YOY GROWTH IN PAID PROFESSIONAL SUBSCRIPTIONS

Q3 CASH FLOW CONVERSION FROM OPERATIONS
47%
YOY GROWTH LTM IN WORK ACTIVE ACCOUNTS - KAHOOT! PLATFORM

INVOICED REVENUE 2)
1) Paid subscriptions is defined as total number of users on paid subscription per the end of the period, including new units from the time of acquisition, not including Clever 2) Conversion to paid subscriptions in all categories from customers in more than 150 countries
Continued growth in number of paid subscriptions on the core Kahoot! platform and increased conversion ratio of free to paid users
PAID SUBS. CONVERSION PROFESSIONAL USERS 3)

1) Paid subscriptions defined as total number of users on paid subscription on the core Kahoot! platform (not including acquired units) per the end of the period 2) Number of users with a paid Kahoot! subscription (not including acquired units) in percentage of all active accounts on the Kahoot! platform last twelve months 3) Number of professional users (Work and School category) with a paid Kahoot! subscription (not including acquired units) in percentage of active accounts within the Work and School category on the Kahoot! platform last twelve months

* Not including share-based payment expenses and related payroll taxes for the Group's share option program, acquisition-related expenses and listing cost preparations
Q3 2022 CASH FLOW FROM OPERATIONS 1 BRIDGE (USDM)
LTM CASH FLOW FROM OPERATIONS 1 BRIDGE (USDM)

1Adjusted for cash outflow for acquisition and listing cost, and cash effects related to share-based payment
2Not including share-based payment expenses and related payroll taxes for the Group's share option program, and acquisition-related expenses and listing cost preparations
| Reported Q3 2022 |
Guidance Q4 2022 |
Reported FY 2021 |
Guidance FY 2022 |
|
|---|---|---|---|---|
| Recognized revenue YoY growth |
\$36.6m 55% |
~\$40m ~21% |
\$91.3m 211% |
~\$147m ~60% |
| Invoiced revenue (billings) YoY growth |
\$53.9m 94% |
\$50-55m 26-38% |
\$107.2m 137% |
\$175-180m 63-68% |
| Gross margin 1) | 95% | 92% | ||
| Adjusted EBITDA margin 2) | 22 % | 21% | ||
| Capex | \$0.5m | ~\$0.5m | \$0.6m | ~\$1.5m |
| Adjusted cash flow from operations 2) |
\$16.1m | \$31.3m | >\$40m |
1) Gross margin only reflects direct third-party sales and distribution cost
2) Not including share-based payment expenses and related payroll taxes for the Group's share option program, and acquisition-related expenses and listing cost preparations
~\$500m
INVOICED REVENUE (in millions USD)

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 base2) 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
1) Reported invoiced revenue was \$107m and included invoiced revenue from Clever for the four-month period from September till December 2021 2) The operational cost base does not include depreciation and amortization, and is adjusted for special operating items. Special operating items are material expenses and other material
transactions of either a non-recurring nature or special in nature compared to ordinary operational expenses and include adjustments for share-based compensation expenses and related payroll taxes, acquisition-related expenses, and listing cost preparations.
Majority of revenue to come from Kahoot! platform, across all current business areas, with strongest revenue contribution in the mid-term expected from Work and School, including Clever

~40%
annual invoiced revenue growth CAGR
~40%
operational cash conversion
~10% annual growth in FTEs


• Strong YoY growth and all time high in the third quarter for invoiced revenue, cash flow from operations and adjusted EBITDA
Solid development in paid subscriptions and engagement metrics from 2019 levels (pre-COVID)
HOSTED SESSIONS ACTIVE ACCOUNTS 2) 2) PARTICIPANTS PAID SUBSCRIPTIONS 1) 2)

Continued strong post pandemic user metrics on the Kahoot! platform with 26.7 million active accounts LTM, 282 million hosted sessions and 1.8 billion participants (non-unique) globally, and 145K YoY growth in core Kahoot! paid subscriptions.
1) Paid subscriptions is defined as total number of users on paid subscription on the core Kahoot! platform (not including acquired units) per the end of the period 2) Active accounts, hosted sessions and participating players (non-unique) on the Kahoot! platform last twelve months
| Q3 22 | Q2 22 | Q1'22 | Q4'21 | Q3,21 | Q2'21 | Q1'21 | Q4'20 | Q3 20 | |
|---|---|---|---|---|---|---|---|---|---|
| Invoiced revenue | 53.9 | 37.2 | 34.0 | 39.7 | 27.8 | 20.6 | 19.1 | 17.5 | 11.6 |
| Invoiced revenue growth YoY | 26.1 | 16.6 | 14.9 | 22.2 | 16.2 | 11.0 | 12.6 | 12.2 | 8.2 |
| Invoiced revenue growth YoY % | 94 % | 81 % | 78 % | 126 % | 139 % | 114 % | 195 % | 230 % | 241 % |
| Invoiced revenue growth QoQ | 16.6 | 3.2 | -5.7 | 11.9 | 7.2 | 1.5 | 1.6 | 5.9 | 2.0 |
| Invoiced revenue growth QoQ % | 45 % | ਰੇ % | -14 % | 43 % | 35 % | 8 % | ਰੇ ਹੋਇ | 50 % | 21 % |
| ARR | 149 | 143 | 138 | 133 | 124 | 75 | ਦਰ | 60 | 32 |
| Revenue and operating income | 36.6 | 36.1 | 34.4 | 33.0 | 23.7 | 18.4 | 16.2 | 11.3 | 9.0 |
| Cost of sales 1 | 1.7 | 1.7 | 1.8 | 2.6 | 1.3 | 1.7 | 1.3 | 1.3 | 1.4 |
| Employee benefit expenses - | 15.6 | 14.7 | 15.6 | 13.9 | 8.7 | 6.5 | 6.2 | 5.7 | 3.2 |
| Other operating expenses 3 | 11.2 | 12.8 | 11.3 | 11.1 | 7.6 | 6.1 | 5.0 | 4.1 | 2.3 |
| Total operating cost | 28.5 | 29.2 | 28.7 | 27.6 | 17.7 | 14.2 | 12.5 | 11.2 | 6.9 |
| Adjusted EBITDA | 8.0 | 6.9 | 5.7 | 5.5 | 6.0 | 4.2 | 3.7 | 0.1 | 2.2 |
| Adjusted EBITDA margin | 22 % | 19 % | 17 % | 17% | 25 % | 23 % | 23 % | 1 % | 24 % |
| Net cash flow from operations | 16.1 | 5.2 | 4.2 | 13.4 | 7.4 | 5.0 | 5.4 | 7.0 | 5.2 |
| Cash flow from oper. in % of revenue | 44 % | 14 % | 12 % | 41 % | 31 % | 27 % | 34 % | 62 % | 58 % |
| Cash and cash equivalents | 87 | 77 | 77 | 108 | 206 | 440 | 254 | 256 | 73 |
| Employee full time equivalents | 459 | 443 | 430 | 422 | ਪਹਿੰਦ | 244 | 204 | 182 | 127 |
1) Cost of sales only include direct third-party sales and distribution cost
2) Not including calculated share-based payment expenses and related payroll taxes for the Group's share option program
3) Not including acquisition-related expenses and listing cost preparations
4) Adjusted for cash outflow for acquisition and listing cost, and cash effects related to share-based payment
| Q3 2022 | Q3 2021 | YTD 2022 | YTD 2021 | FY 20214 | |
|---|---|---|---|---|---|
| Total revenue and other operating income | 36.6 | 23.7 | 107.0 | 58.2 | 91.3 |
| Cost of sales 1 | 1.7 | 1.3 | 5.1 | 4.4 | 7.0 |
| Employee benefit expenses - | 15.6 | 8.7 | 46.0 | 21.4 | 35.2 |
| Other operating expenses 3 | 11.2 | 7.6 | 35.3 | 18.7 | 29.7 |
| Total operating expenses | 28.5 | 17.7 | 86.4 | 44.5 | 72.0 |
| Adjusted EBITDA | 8.0 | 6.0 | 20.6 | 13.8 | 19.3 |
| Adjusted EBITDA margin | 22 % | 25 % | 19 % | 24 % | 21 % |
| Share based compensation expenses | 7.5 | 2.8 | 17.7 | 6.7 | 15.5 |
| Payroll tax share based compensation | 0.7 | 1.4 | (3.8) | (4.5) | (7.6) |
| Acquisition transaction and listing cost | 3.3 | 0.2 | 6.3 | 6.6 | |
| Reported EBITDA | (0.2) | (1.6) | 6.6 | 5.3 | 4.7 |
1) Cost of sales are direct third-party sales and distribution cost
2) Calculated share-based payment expenses and related payroll taxes for the Group's share option program are not included
3) Acquisition-related expenses and listing cost preparations are not included
4) Includes Clever from 1 September 2021
| 30.09.2022 | 31.12.2021 | |
|---|---|---|
| Goodwill | 479.0 | 494.4 |
| Intangible assets | 157.7 | 173.3 |
| Property, plant and equipment | 0.9 | 0.6 |
| Right-of-use assets | 4.3 | 2.9 |
| Total non-current assets | 641.9 | 671.3 |
| Trade receivables | 22.4 | 11.8 |
| Other current assets | 4.1 | 5.3 |
| Cash and cash equivalents | 86.8 | 107.8 |
| Total current assets | 113.4 | 124.8 |
| Total assets | 755.3 | 796.1 |
| Total equity | 583.3 | 581-5 |
| Lease liabilities | 2.9 | 2.0 |
| Deferred tax liability | 44.0 | 46.3 |
| Other non-current liabilities | 9.6 | 40.6 |
| Total non-current liabilities | 56.5 | 88.9 |
| Lease liabilities | 1.6 | 1.0 |
| Trade payables | 4.7 | 5.4 |
| Contract liabilities (deferred revenue) | 73.9 | 60.8 |
| Other current liabilities | 35.4 | 58.6 |
| Total current liabilities | 115.5 | 125.7 |
| Total equity and liabilities | 755.2 | 796.1 |
| Q3 2022 | Q3 2021 | YTD 2022 | YTD 2021 | FY 2021 | |
|---|---|---|---|---|---|
| Net cash flow from operating activities | 16.0 | 12.1 | 24.6 | 20.9 | 20.9 |
| Net cash flow from investing activities | (3.6) | (245.8) | (40.5) | (265.3) | (364.9) |
| Net cash flow from financing activities | (0.5) | 0.5 | (1.0) | 195.9 | 195.5 |
| Net change in cash and cash equivalents | 12.0 | (233.2) | (17.0) | (48.5) | (148.5) |
| Cash and cash equivalents at begin. of period | 76.6 | 440.5 | 107.8 | 256.1 | 256.1 |
| Effects of exchange rate changes on cash | (1.7) | (0.9) | (4.0) | (1.3) | 0.2 |
| Cash and cash equivalents at end of period | 86.8 | 206.4 | 86.8 | 206.4 | 107.8 |
| Adjusted cash flow from operating activities + | 16.1 | 7.4 | 25.4 | 17.8 | 31.3 |
to lease payments 1) Adjusted for cash outflow related to share-based payment, acquisition and listing cost preparations
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.


Driven by our values and our purpose, we are on a mission to improve lifelong learning by building the leading learning and engagement platform in the world





Driven by its mission to make learning awesome, and powered by its global brand and viral model, Kahoot! is optimally positioned at the intersection of learning and audience engagement needs across diverse demographics and application verticals, including education, business and the global creator economy
| CORPORATE LEARNING AND ENGAGEMENT |
CLASSROOM ENGAGEMENT AND LEARNING |
DIGITAL LEARNING PLATFORM FOR SCHOOLS AND DISTRICTS |
LEARNING WITH FAMILY AND FRIENDS |
CREATOR COMMUNITY & MARKETPLACE |
|---|---|---|---|---|
| Kahoot! used in 97% of Fortune 500 |
~9m teachers on the platform LTM |
~70%+ of U.S. K12 schools use Clever |
100m+ games played by families LTM |
40m+ participants/month |
Free and paid subscription for individuals, teachers and students with premium offerings for schools and organizations
Easy to use and engaging user experience for all use cases being continuously improved – live and on demand
Community & Brand
Lifelong learning platform with global footprint in home, schools and corporations
100 million kahoots created by users and premium content partners easily accessible

Kahoot! is in a unique position and capability to serve several high growth application areas through one globally beloved brand and software platform

through finalizing the integration of the Kahoot!, Motimate and Actimo organisations, and strengthening all the products
while maintaining discipline on cost management, to secure sustainable, profitable growth
and launch new commercial services to monetize content from premium partners and verified educators
and development of our products and solutions, for all user groups and learning contexts
as well as expansion of Clever offerings into first international markets, and leverage new commercial services to Clever network



Interactive presentations & meetings

Training & development
As a powerful tool for collecting feedback
To engage and involve audiences of any size
To energize and reinforce learning
Making any subject engaging

To inform and bring people together

Helping new joiners connect & learn
● 1,700 seasonal workers
● Onboarding & service training with Actimo employee app
● Kahoot! used for guest engagement

To be updated










10K
Over
educational institutions have already deployed multiuser Kahoot! teacher licenses
Maximize student engagement by designing full class, interactive sessions


Elevate learning at your entire school or district
Making learning fun, engaging, and impactful at school!
at school

Bring math to life!
Online whiteboard tool

Equip IT admins with increased control, security & compliance
Choose the perfect game mode Play live or assign a challenge!
Embraced by ~9 million teachers globally, engaging 100s of millions of students


are using Kahoot! at home with over 100 million games played by families
…with over 100 million games Just launched!
played by families
A safe and fun learning experience for kids age 2-7

Kids Teens Students Family & friends
Learn at home, with study peers or on the go
at Home
Learn to read, learn math & algebra - apps

Premium subscription for awesome learning for the entire family
Just launched!
Social study for higher-ed students
Language learning made easy.
+


Social study for highered students
Localized app and curated content in 14 languages
Social event templates, themes and game modes
Integrations with Apple SharePlay, Microsoft Teams, Zoom, Google Meet (2H-22) and Snap for virtual play
Free to play, upgrade to

Lets educators connect, grow their community and share their knowledge
Unique, ready-to-use content Embraced by 300M+ players every year


First subscription for premium content on the marketplace
Buy and sell learning resources!

Enhanced learning experience with premium IP






Enable content creators to monetize their high-quality learning resources

Verified creators, publishers, domainand subject-matter experts

All Kahoot! users globally incl. individuals, teachers, students and business users

High-quality learning resources including Kahoot! courses

Enhanced learning experience with premium IP

Available on Amazon Appstore

Apple Schoolwork features make teaching with Kahoot! even more awesome

Engage with Kahoot! directly in Microsoft Teams and PowerPoint




Extending the Kahoot! experience with Google Classroom








Showcasing new Kahoot! Partnership model with Amazon


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