“I’m pleased to see we delivered well in the third quarter against our targets and the changing macro environment. Our solid commercial performance continued with double digit growth across all our customer categories, all-time high adjusted EBITDA, and our scalable operating platform delivering a strong growing operational cash flow.
We managed the high-season back-to-school volumes on a consistent quarter-over-quarter operating cost, demonstrating the leverage in our scalable business model, and increasingly effective unit economics and profitable growth. Marking a year since inclusion into Kahoot!, we also celebrate Clever progressing well against both strategic and financial ambitions. Equally important, the quarter saw us develop a powerful lineup of new offerings and solutions, that will support continued growth into 2023 and beyond.
Amidst more volatility in global markets, our multiple growth levers, including our unique product suite, diverse customer segments and scalable platform, provides resilience, and lays a healthy foundation for continued expansion in the quarters to come.
As the transition to digital learning in school, work and home continues, Kahoot!’s commitment to constant product innovation will prove to be the ultimate differentiator for sustainable and durable commercial success. We remain focused on executing our platform strategy by disciplined investments in our products and technology, leveraging our broad user base, strength of our partner ecosystem and global love brand, to drive growth and monetization.”
Eilert Hanoa, CEO
Third Quarter 2022 – Financial and Operational Highlights
● Invoiced revenue (billings) was $53.9 million in the third quarter, up 94% YoY, including Clever, which contributed $29 million. Excluding Clever, invoiced revenue in the third quarter grew $2.8 million YoY to $24.9 million, up 13% YoY. Invoiced revenue for the third quarter was impacted by significant stronger USD compared to previous quarters. Approx. 15% of total invoiced revenue for the quarter were in other currencies than USD.
● For the nine months 2022, invoiced revenue grew $57.6 million YoY to $125.1 million, up 85%. In the third quarter, the U.S. and Canada as the largest region represented 76% of the Kahoot! Group’s invoiced revenue (including Clever).
● Total revenue and other operating income of $36.6 million, up 55% YoY. For the nine months 2022, total revenue and other operating income grew $48.8 million YoY to $107.0 million, up 84%. The strengthening of the USD in the third quarter impacted the nominal revenue amount in the quarter.
● Annual Recurring Revenue (“ARR”) of $149 million, up 20% YoY. Clever contributed to approx. $54 million.
● Total operating expenses (excluding share-based compensation expenses and related payroll taxes) was $28.5 million in the third quarter, which is in line with the second quarter measured on stable currency exchange rates.
● Adjusted EBITDA (excluding share-based compensation expenses and related payroll taxes, acquisition related expenses and listing cost) of $8.0 million, up 35% YoY. For the nine months 2022, adjusted EBITDA grew $6.8 million YoY to $20.6 million, up 50%.
● Cash flow from operations (excluding payment of listing and acquisition cost, and cash effects related to share-based compensation) of $16.1 million for the third quarter, up 117% YoY, and $25.4 million for the nine months 2022, up 43% YoY.
● Cash and cash equivalents as of 30 September 2022, totaled $86.8 million. The Group has no interest-bearing debt.
● Total number of paid subscriptions reached 1,250,000 across all services, up 23% YoY, representing an organic increase of 40,000 from the previous quarter, with approx. 20,000 on the Kahoot! platform. At the end of the third quarter, Kahoot! at Work reached 550,000 paid subscriptions, Kahoot! at School reached 425,000 paid subscriptions and Kahoot! at Home and Study reached 275,000 paid subscriptions.
● Active accounts on the Kahoot! platform (over the last twelve months) were 26.7 million, with approx. 282 million hosted sessions, and a total of approx. 1.8 billion participants (non-unique) globally.
“The third quarter displays key attributes of the Kahoot! Group business model – and we are pleased to see good performance against a strong comparison with peak pandemic in the latter part of last year. The quarter represents our 12th successive quarter of positive operating cash flow, and due to effective unit economics and a highly scalable platform we delivered a record-high $16 million in cash flow from operations, as well as continued strong gross margin of 95% and an all-time high adjusted EBITDA of $8 million and 22% margin
A core strength for Kahoot! is the stamina to maintain momentum and constant development through major shifts in market conditions over time, delivering sustainable and profitable growth. We are confident our operating framework and cost base has potential to yield even stronger efficiency, and remain committed to continue nimble operations in the quarters to come. As we prepare for 2023 a key priority is to leverage our flexible set-up and organizational resources to deliver even better commercial results.”
Ken Østreng, CFO
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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 8 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!