“During our third quarter the Kahoot! platform realized record-level activity and solid viral growth as societies across the world returned to more normalcy. The quarter was further fueled by strong Back-to-School and work seasons as educators, students and professionals alike embraced both in-person and hybrid models for digital learning. We achieved significant growth in both free and paid usage, resulting in more than 30 million active accounts over the past 12 months and reaching more than 1 million paying subscriptions across all services, resulting in Kahoot! Group invoiced revenues of $27.8 million in the quarter. Kahoot! continued the YoY growth in Q3 in all regions and within the Work, School and Home & Study categories. We also completed the strategic acquisition of digital learning platform, Clever, positioning Kahoot! to reach even wider audiences and greater revenue streams.” – Eilert Hanoa, CEO of Kahoot!
Third Quarter 2021 – Financial and Operational Highlights
- Continued organic user growth on the Kahoot! platform (over the past 12 months). More than 30 million active accounts, up 41% YoY. 314 million hosted sessions, up 40% YoY. More than 1.9 billion participants (non-unique) globally, up 44% YoY.
- Reached more than 1 million paid subscriptions across all services, up 180% YoY, representing an organic increase from the second quarter of more than 80K, whereof more than 45K on the Kahoot! platform. Per the end of the third quarter, Kahoot! at Work reached 435K paid subscriptions, Kahoot! at School reached 335K paid subscriptions and Kahoot! at Home & Study reached 245K paid subscriptions.
- Invoiced revenue (billings) reached $27.8 million in the third quarter, up 139% YoY, including Clever, which contributed $5.7 million for the month of September as part of the Kahoot! Group. Excluding Clever, invoiced revenue in the third quarter grew $10.5 million YoY to $22.1 million, up 90%. For the first nine months invoiced revenue grew $39.7 million YoY to $67.5 million (including Clever for September), up 143%.
- ARR (Annual Recurring Revenue) of $124 million, up 288% YoY, whereof Clever contributed with $44 million from its U.S. ecosystem partners.
- Total revenue and other operating income of $23.7 million, up 162% YoY. For the first nine months total revenue and other operating income grew $40.2 million YoY to $58.2 million, up 223%.
- Adjusted EBITDA (excluding share-based compensation expenses and related payroll taxes, acquisition related expenses and listing cost) of $6.0 million, representing 25% adjusted EBITDA margin. For the first nine months adjusted EBITDA grew $13.3 million YoY to $13.8 million.
- Cash flow from operations (excluding payment of listing and acquisition cost, and cash effects related to share-based compensation) of $7.4 million, up 38% YoY, with positive contribution from Clever, and $17.8 million for the first nine months, up 71% YoY.
- Cash and cash equivalents as of 30 September 2021, totaled $206 million whereof $6 million is cash held for employee withholding tax to be paid in the fourth quarter for exercised employee share options. The Group has no interest-bearing debt.
- The acquisition of 100% of the shares in Clever was completed effective as of 1 September 2021, for a total consideration reflecting an Enterprise Value (EV) of $435-500 million, on a cash and debt free basis, including an up to $65 million 2021-2022 performance- based element. The total consideration will be settled by a combination of approx. 82% cash and 18% Kahoot! shares. At closing a net cash consideration of $245 million was paid, and 7.3 million Kahoot! consideration shares were issued at a subscription price of NOK 64.77 per share.
Kahoot! will host a webcast at 3:30 pm CET, 4 November 2021.
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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. In the last 12 months, 300 million sessions have been hosted on the Kahoot! platform by 30 million active accounts, with 1.9 billion participants (non-unique) in more than 200 countries and regions. The Kahoot! Group also 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 and Spain. Kahoot! is listed on the Oslo Stock Exchange under the ticker KAHOT. Let’s play!