Investor relations

Kahoot! AS reports third quarter 2020 results

Q3 2020 was another strong quarter and reflects focused execution by the team in the Kahoot! Group.

Attachments
3Q20 Kahoot! presentation 3Q20 Kahoot! report

The Kahoot! Group grew invoiced revenue in Q3 2020 to $11.6m, a 241% increase from reported invoiced revenue in Q3 2019. The quarter over quarter invoiced revenue growth was 21% in Q3 2020 (vs. Q2 2020). The Kahoot! Group had in Q3 2020 solid cash flow with 45% cash conversion from billed revenue, being the fourth consecutive quarter with positive cash flow from operations. The Kahoot! Group reached more than 360K paid subscriptions per Q3 2020.

Please find enclosed the Q3 2020 presentation and report.

Highlights Q3 2020

The main figures were reported in the company trading update October 2, 2020.

  • The user growth on the Kahoot! platform continued with more than 21 million active accounts in the last twelve months (45% YoY growth). Number of hosted games it the last twelve months was 224m (10% YoY growth) with 1.3bn participants (19% YoY growth).
  •  Kahoot! launched several new features and editions for all three 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 360K in Q3 2020, an increase of 90K paid subscriptions from Q2 2020. The year on year growth in paid subscriptions was approx. 160% per Q3 2020 vs. Q3 2019. Per Q3 2020 the Kahoot! Group had approx. 105K subscriptions in the Work category, 180K subscriptions in the School category and 75K subscriptions in the Home and Study category, including DragonBox curriculum.
  • Invoiced revenue for the Kahoot! Group for Q3 2020 was $11.6 million, compared to $3.4m in Q3 2019 as reported, representing 241% year on year growth. The quarter over quarter invoiced revenue growth was 21% in Q3 2020 (vs. Q2 2020).
  • Invoiced revenue for the first three quarters 2020 for the Kahoot! Group was $27.7 million, compared to $7.7 million as reported for the corresponding period 2019, representing 259% year on year growth. The vast majority of Kahoot’s revenue is subscription based.
  • The Kahoot! Group customer base MRR (Monthly Recurring Revenue) as of 30.09.2020 reached $2.7m corresponding to ARR (Annual Recurring Revenue) of $32m.
  • Recognized revenue for the Kahoot! Group was $7.6m in Q3 2020 compared to $2.2m in Q3 2019, representing 245% year on year growth.
  • Recognized revenue for the first nine months 2020 for the Kahoot! Group was $17.9m compared to $4.8 million as reported for the corresponding period 2019, representing 275% year on year growth.
  • EBITDA for Q3 2020 was $1.0m compared to -$1.7m for Q3 2019.
  • For the first nine months 2020 EBITDA was -$1.2m (including $1.3m in social security cost for exercised share options in the second quarter) compared to -$5.8 million as reported for the corresponding period 2019.
  • The Kahoot! Group had positive cash flow from operations of $5.2m in Q3 2020, compared to -$0.6m in Q3 2019. Cash flow from operations for the first nine months of 2020 was $10m compared to -$3.9m for the corresponding period 2019.
  • Cash and cash equivalents as of 30.09.2020 were $72m. The company has no interest-bearing debt.
  • 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.

For further 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 game-based learning platform makes it easy for any individual or corporation to create, share, and play learning games that drive serious engagement. In addition, our family of apps takes math learning to a new level and empowers children to learn to read through play. Launched in 2013, Kahoot!’s vision is to build the leading learning platform in the world. In the last 12 months, more than 200 million games have been played on the Kahoot! platform with over one billion participating players in 200 countries. The company is headquartered in Norway with offices in the US, the UK, France, Finland, Denmark and Spain. Let’s play!