“Our mission is to make learning awesome. Our portfolio of products drives billions of learning interactions annually, coming together through continuous product development, innovation and a team with focus and ambition to put magic learning moments at everyone’s fingertips.
The Kahoot! Group achieved several strategic and financial milestones during the final quarter of 2021, including record-level activity and continued strong organic growth on the core Kahoot! platform. We delivered significant group-wide growth across all business areas with invoiced revenue up 126% YoY for the quarter, and 137% for the full year 2021, although we ended the quarter below our expectations due to our year end performance under increased uncertainty related to Omicron, including schools and businesses closing early before the holidays. In the quarter we also saw significantly improved cash-flow from operations, achieved in large part due to our scalable platform and our commitment to a user generated, sustainable and profitable growth.
Our continuous focus on realizing synergies across the group’s diverse portfolio has yielded solid results in a quarter where we further expanded our audience engagement offerings for all customer groups, launching a host of new innovative features and products. We are excited to springboard into 2022 after a record-year and quarter for the Kahoot! Group” – Eilert Hanoa, CEO Kahoot!
Fourth Quarter 2021 – Financial and Operational Highlights
- Organic user growth on the Kahoot! platform (over the past 12 months) continued with 30.9 million active accounts, up 25% YoY and 310 million hosted sessions, up 24% YoY with a total of approx. 2.0 billion participants (non-unique) globally, up 32% YoY.
- Kahoot! reached more than 1.1 million paid subscriptions across all services, up 64% YoY, representing an organic increase of 95,000 from the third quarter, with 60,000 on the Kahoot! platform. At the end of the fourth quarter, Kahoot! at Work reached 490,000 paid subscriptions, Kahoot! at School reached 365,000 paid subscriptions and Kahoot! at Home & Study reached 255,000 paid subscriptions.
- Invoiced revenue (billings) was $39.7 million in the fourth quarter, up 126% YoY, including Clever, which contributed $12.8 million. Excluding Clever, invoiced revenue in the fourth quarter grew $9.3 million YoY to $26.9 million, up 53%. For the full year 2021 invoiced revenue grew $61.9 million YoY to $107.2 million (including $18.5 million from Clever for the four month period from September to December), up 137%. In the fourth 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 $133 million, up 122% YoY. Clever contributed approx. $47 million from its U.S. ecosystem partners.
- Cash flow from operations in the fourth quarter (excluding cash effects related to share-based payment, listing and acquisition cost) exceeded $13 million, up 86% YoY, with positive contribution from Clever, and approximately $31 million for the full year, up 78% YoY.
- Cash and cash equivalents as of December 31, 2021, exceeded $107 million. The Group has no interest-bearing debt.
“The fourth quarter demonstrated the solid scalability of the Kahoot! Group. With only limited growth in the organization and continued immaterial marketing spend, our talented team were able to deliver invoiced revenue of $39.7 million, Annual Recurring Revenue of $133 million, and all-time high cash flow from operations (adjusted) exceeding $13 million, representing more than 30% cash conversion of invoiced revenue for the quarter.” – Ken Østreng, CFO Kahoot!
Fourth Quarter 2021 – Strategic and Business Highlights
- Kahoot! at Work added 55,000 paid subscriptions, reaching 490,000 this quarter and continued to empower employee learning, audience engagement and corporate culture with an increasingly multi-faceted suite of solutions due to the continued integration of Motimate and Actimo. Moreover, Kahoot!’s bespoke enterprise offering, Kahoot! 360 Spirit, saw the effect of its enhanced offerings including the newly launched Kahoot! Courses through significant uptake in subscriptions.
- Kahoot! at School added 30,000 paid subscriptions, reaching 365,000 this quarter and further evolved the offerings to the more than 9 million teachers (LTM), hundreds of millions of students and thousands of schools, campuses, universities and districts. The Kahoot! EDU offering was extended with the features such as Team mode and the launch of Math Labs by DragonBox, well received by educators and students around the globe.
- Clever delivered a strong first half of the 21-22 school year, with over 60% of all U.S. K-12 Schools using the Single sign-on platform Clever and more than 740 app partners on the platform. Clever remains focused on laying a robust foundation for growth and commercial added-value for its vast network, including the launch of the click-to-buy App Store and international expansion in 2022.
- Kahoot! at Home added 10,000 paid subscriptions, reaching 255,000 this quarter and expanded offerings through new commercial products customized for even more user segments. The newly launched Kahoot! Kids app empowers parents with a fun, explorative and safe experience to spark curiosity in young learners preschool. Moreover, the new Kahoot!+ Study subscription supports higher ed students to leverage engagement in their study and exam preparation, connecting students with a range of new features and tools to make studying more impactful.
- Kahoot! Academy took a major step in enriching its offering for creators and learners with the recent launch of the subscription service Kahoot!+ AccessPass. This represents the first commercial service on Kahoot!’s global digital marketplace, where verified creators and partners can monetize premium content. By enabling a marketplace, Kahoot!’s platform will be harnessed by the burgeoning global creator community to promote, sell and monetize their quality content and expertise made available for Kahoot!’s global audience.
For additional information, see the attached update letter from Eilert Hanoa, CEO of Kahoot!
Kahoot! Group ambition 2022
For 2022, the current ambition for the Kahoot! Group including Clever is $190-200 million in invoiced revenue. The operational cost base is expected to represent approx. 70% of invoiced revenue which indicates approx. 30% cash conversion of invoiced revenue.
Kahoot! Group long term ambitions and additional details will be disclosed with the Q4 2021 report.
As previously communicated the Company is exploring the opportunity for a secondary listing and expecting to conclude the assessment before the end of Q1 2022. The full fourth quarter 2021 report is scheduled for release on 17 February, 2022.
The information contained in this statement has not been audited and may be subject to change. Please see Kahoot! News on kahoot.com/news to stay up to date on company news and updates.
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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 2 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 and Spain. Kahoot! is listed on the Oslo Stock Exchange under the ticker KAHOT. Let’s play!