“Through 2022 the Kahoot! Group has progressed its leadership in global digital learning, entering the new year with a stronger company and a stronger product than ever, with half our team devoted to building solutions for the future. We delivered on our cash flow guidance for the full year and generated the highest number of net new paid subscriptions quarterly in 2022, with particular momentum in the Kahoot! At Work segment in the fourth quarter. The core Kahoot! platform (excluding acquisitions) exceeded $75 million in invoiced revenues, over 20% YoY growth, for the full year and more than 700K paid subscriptions.

At the same time, end-of-year growth in billing volume ended below our expectations. The current macro environment is driving more cautious decision-making and longer sales cycles, which resulted in lower than expected revenue growth from our year-end activities. We are not satisfied with our sales performance at the end of the year, and in response we will take additional steps to adapt to current market circumstances, and ensure further improvements in our commercial model. We remain committed to continuous innovation of our market-leading solutions and delivering cash-generative, sustainable and profitable growth.”

– Eilert Hanoa, CEO of Kahoot!

Please find enclosed the Q4 2022 presentation and report.

Fourth Quarter 2022 – Financial and Operational Highlights

• Invoiced revenue (billings) was $43.9 million in the fourth quarter, up 10% YoY, including Clever, which contributed $12.9 million. Excluding Clever, invoiced revenue in the fourth quarter grew $4.1 million YoY to $30.9 million, up 15% YoY.

• For the full year 2022, invoiced revenue grew $61.8 million YoY to $169.0 million, up 58%. Kahoot! Group full year excluding Clever approx. $104.5 million, up 18% YoY. Clever full year exceeding $64 million, up 29% YoY on a pro-forma basis.

• The strengthening of the USD in 2022 compared to 2021 resulted in more than $4 million negative impact on invoiced revenue for 2022. The U.S. and Canada as the largest region represented 65% of the Kahoot! Group’s invoiced revenue in 2022.

• Total revenue and other operating income of $39.0 million, up 18% YoY. For the full year 2022, total revenue and other operating income grew $54.7 million YoY to $146.0 million, up 60%.

• Annual Recurring Revenue (“ARR”) of $156 million, up 17% YoY.

• Total operating expenses (excluding share-based compensation expenses and related payroll taxes) were $29.3 million in the fourth quarter, up 6% YoY.

• Adjusted EBITDA of $9.6 million, up 76% YoY. For the full year 2022, adjusted EBITDA grew $11.0 million YoY to $30.3 million, up 57%.

• Adjusted cash flow from operations of $17.3 million for the fourth quarter, up 28% YoY, and $42.7 million for the full year 2022, up 37% YoY.

• Cash and cash equivalents per the end of 2022, totaled $104.8 million. The Group has no interest-bearing debt.

• Total number of paid subscriptions exceeded 1.3 million across all services, up 18% YoY, representing an organic increase of 60,000 from the previous quarter, of which 40,000 from professional user categories. At the end of the fourth quarter, Commercial reached 580,000 paid subscriptions, Education reached 435,000 paid subscriptions and Consumer & Experience reached 295,000 paid subscriptions.

• Active accounts on the Kahoot! platform (over the last twelve months) was 25.8 million, with more than 268 million hosted sessions, and a total of approx. 1.7 billion participants (non-unique) globally.

“Despite the lower than expected growth in billings in the fourth quarter and more demanding market conditions, we maintained consistent cost levels in line with previous quarters, resulting in all-time high adjusted operating cash flow of $42.7 million and adjusted EBITDA of $30.3 million for the full year. This is achieved due to our scalable business model and effective unit economics, demonstrated both before, under and after the pandemic. Our current operating capacity can deliver even stronger results, enabling continued invoiced revenue growth on par with the 2022 proforma growth level, with modest operational cost increase yielding further improvements in operating cash flow and adjusted EBITDA.”

– Ken Østreng, CFO of Kahoot!

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 host learning sessions that drive compelling engagement. Launched in 2013, Kahoot!’s vision is to build the leading learning platform in the world. Since launch, Kahoot! has hosted hundreds of millions of learning sessions with over 9 billion participants (non-unique) in more than 200 countries and regions. The Kahoot! Group includes Clever, the leading US K-12 EdTech learning platform, together with the learning apps DragonBox, Poio, Drops, Actimo, Motimate, and Whiteboard.fi. The Kahoot! Group is headquartered in Oslo, Norway with offices in the US, the UK, France, Finland, Estonia, Denmark, Spain and Poland. Kahoot! is listed on the Oslo Stock Exchange under the ticker KAHOT. Let’s play!