Investor relations

Kahoot! AS reports fourth quarter 2020 results

The Kahoot! Group continued its strong performance in the final quarter of 2020, including solid growth in usage, revenues, subscribers, launch of several new features and services as well as new strategic partnerships and the acquisitions of Actimo and Drops.

Attachments
4Q20 Kahoot! presentation 4Q20 Kahoot! report

Invoiced revenue for the Kahoot! Group reached $17.5m in Q4 2020, representing 230% increase from reported invoiced revenue in Q4 2019. The quarter over quarter invoiced revenue growth was 50% in Q4 2020 (vs. Q3 2020). The group delivered in Q4 2020 solid cash flow with approx. 40% cash flow conversion from billed revenue, being the fifth consecutive quarter with positive cash flow from operations. The Kahoot! Group reached more than 550K paid subscriptions per Q4 2020 whereof Drops accounted for 100K. During Q4 2020, the Kahoot! Group reached 5 billion cumulative players on the platform since launch in 2013.

Please find enclosed the Q4 2020 presentation and report.

Highlights Q4 2020

The main figures were reported in the company trading update January 5, 2021.

  • The user growth on the Kahoot! platform continued with more than 24m active accounts in the last twelve months (57% year over year growth). Number of hosted games in the last twelve months was more than 250m (19% YoY growth) with 1.5bn participants (26% YoY growth).
  • Kahoot! launched several new features and editions for all main categories (at Work, at School and at Home), contributing to the growth of both free and paid users in the quarter.
  • Strong growth in paid subscriptions for the Kahoot! Group, reaching more than 550K in Q4 2020, an increase of 190K paid subscriptions from Q3 2020, whereof Drops accounted for 100K. The YoY growth in paid subscriptions was 220% (approx. 380K) per Q4 2020.
  • Per Q4 2020 the Kahoot! Group had approx. 120K subscriptions in the Work category, 230K subscriptions in the School category and 200K subscriptions in the Home and Study category, including DragonBox curriculum and Drops (acquired November 28, 2020) language learning subscriptions. In addition, Actimo (acquired October 5, 2020) has approx. 125K monthly active users.
  • Invoiced revenue for the Kahoot! Group for Q4 2020 reached $17.5m, compared to $5.3m in Q4 2019 as reported, representing 230% YoY growth. The quarter over quarter invoiced revenue growth was 50% in Q4 2020 (vs. Q3 2020).
  • Invoiced revenue for the full year 2020 for the Kahoot! Group reached $45.3m, compared to $13.0m as reported for 2019, representing 247% YoY growth.
  • The Kahoot! Group customer base MRR (Monthly Recurring Revenue) as of 31.12.2020 reached $5m corresponding to ARR (Annual Recurring Revenue) of $60m. As of 31 12.2019 reported ARR was $14m.
  • Operating revenue for Q4 2020 was $12.0m compared to $2.8m in 2019, representing 329% YoY growth.
  • Operating revenue for the full year 2020 was $31.0m compared to $8.5m in 2019, representing 265 % YoY growth.
  • Cash flow from operations was $7.0m in Q4 2020 compared to $1.4m in Q4 2019. For the full year 2020, cash flow from operations was $17.4m compared to -$2.5m for the full year 2019.
  • EBITDA adjusted for share-based compensation expenses and related payroll taxes, acquisition-related expenses and listing cost preparations was $2.3m for the full year 2020, compared to -$6.6m for the full year 2019.

Forward looking statement

  • For the full year 2021, the Kahoot! Group’s reiterate the ambition to reach $90-100m in invoiced revenues with continued solid positive cash flow from operations and one million paid subscriptions.
  • The company is preparing for a main listing at Oslo Stock Exchange which could be completed as early as in Q1 2021. In addition, the company will explore the opportunity for a secondary listing during 2021.

For more information, please contact:

Eilert Hanoa, CEO
Phone: +47 928 32 905
Email: eilerth@kahoot.com

Ken Østreng, CFO
Phone: +47 911 51 686
Email: keno@kahoot.com

About Kahoot!

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 play learning games that drive compelling engagement. In addition, our family of apps takes math learning to a new level and empowers children to learn to read through play. Learners of all ages can make language learning natural with immersive visuals and play through our Drops apps. Organizations can connect and engage their work teams with Actimo, our employee engagement platform. Launched in 2013, Kahoot!’s vision is to build the leading learning platform in the world. In the last 12 months, more than 250 million games have been played on the Kahoot! platform with 1.5 billion participating players in 200 countries. The company is headquartered in Norway with offices in the US, the UK, France, Finland, Estonia, Denmark and Spain. Let’s play!