“I am pleased to announce that the Kahoot! Group continued to execute well in the second quarter. We delivered robust growth in billings and adjusted EBITDA, growing operating cash flow, and saw continued commercial improvements across all business areas. In the first half, the Kahoot platform represented 50% of the revenues, a YoY growth of approx. 30%. This is a solid performance given the turbulent market this year and the extraordinary events of last year, demonstrating Kahoot!’s ability to continuously deliver sustainable profitable growth, both during and after the pandemic.
We remain focused on executing our strategy by leveraging our scalable platform, broad user base, partner ecosystem, and our love brand, to drive growth and monetization. Reaching 8 billion non-unique cumulative participants since launch, is a testament to both the universal strength of the Kahoot! brand and our growing platform. During the quarter, we launched several new exciting and value-enhancing features ahead of the important back-to-school and work season. Similarly, we continued to develop our deep collaboration with long-standing partners like Apple, Google and Microsoft. We believe these efforts and our product roadmap will further expand our opportunity for future growth and expansion with customers.
We also saw continuous improvement in our commercialization efforts led by increased conversion and growth among professional user segments on our platform, as well as a strong performance from Clever ahead of the important back-to-school season. During the quarter we recorded a solid growth in the number of larger deals, including the largest deal ever in the Work segment.
Going forward, with the good momentum, our product roadmap for the fall and a scalable platform, we remain confident about continued growth as we make learning engaging and accessible for millions of users around the world every day. And with the launch of our Marketplace we are able to extend Kahoot!’s business model and truly contribute to the global creator economy.”
– Eilert Hanoa, CEO of Kahoot!
Second Quarter 2022 – Financial and Operational Highlights
● Invoiced revenue (billings) was $37.2 million in the second quarter, up 81% YoY, including Clever, which contributed $13 million. Excluding Clever, invoiced revenue in the second quarter grew $3.6 million YoY to $24.2 million, up 18% YoY. For the first half year 2022, invoiced revenue grew $31.6 million YoY to $71.2 million, up 80%. In the second quarter, the U.S. and Canada as the largest region represented 61% of the Kahoot! Group’s invoiced revenue (including Clever).
● Annual Recurring Revenue (“ARR”) of $142.5 million, up 90% YoY. Clever contributed to approx. $49 million from its U.S. ecosystem partners.
● Total revenue and other operating income of $36.1m, up 96% YoY. For the first half year 2022, total revenue and other operating income grew $35.9 million YoY to $70.4 million, up 104%.
● Total operating expenses (excluding share-based compensation expenses and related payroll taxes, acquisition related expenses and listing cost) was $29.2 million in the second quarter, an increase of approx. $0.5 million QoQ.
● Adjusted EBITDA (excluding share-based compensation expenses and related payroll taxes, acquisition related expenses and listing cost) of $6.9 million, up 65% YoY. For the first half year 2022, adjusted EBITDA grew $4.8 million YoY to$12.6 million, up 61%.
● Cash flow from operations (excluding payment of listing and acquisition cost, and cost effects related to share-based compensation) of $5.2 million for the second quarter, and $9.4 million for the first half year 2022.
● Cash and cash equivalents as of 30 June 2022, totaled $76.6 million. The Group has no interest-bearing debt.
● Total number of paid subscriptions reached 1,210,000 across all services, up 30% YoY, representing an organic increase of 40,000 from the previous quarter, with approx. 25,000 on the Kahoot! platform. At the end of the second quarter, Kahoot! at Work reached 530,000 paid subscriptions, Kahoot! at School reached 410,000 paid subscriptions and Kahoot! at Home and Study reached 270,000 paid subscriptions.
● Active accounts on the Kahoot! platform (over the last twelve months) were 28.0 million, with 288 million hosted sessions, and a total of approx. 1.8 billion participants (non-unique) globally. Active accounts LTM in the Work category grew 53% YoY, School grew 1% YoY and Home and Study had a 7% reduction YoY. “The group delivered a solid quarter with Kahoot!’s scalable business model delivering the 11th consecutive quarter of positive cash flow from operating activities, as well as a strong gross margin of 95%, and an adjusted EBITDA margin of 19%. Our operations remain nimble, and we expect to continue modest QoQ operational cost increases in the second half. We are looking forward to the high season with Clever contributing to the operational cash flow. With our strong foundation for both short- and longer-term growth, we remain committed to our financial ambitions.”
– Ken Østreng, CFO of Kahoot!
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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 7 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!