“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 $27.5 million in the quarter. We also completed the strategic acquisition of digital learning platform, Clever, positioning Kahoot! to reach even greater audiences and revenue streams in the U.S., the world’s largest K-12 market.” – 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) exceeded $27.5 million in the third quarter, up 137% YoY, including Clever, which contributed $5.5 million for the month of September as part of the Kahoot! Group. Excluding Clever, invoiced revenue in the third quarter grew $10.4 million YoY to $22 million, up 90%. For the first nine months invoiced revenue grew $39.4 million YoY to $67.1 million (including Clever for September), up 142%.
• ARR (Annual Recurring Revenue) of $124 million, up 288% YoY, whereof Clever contributed with $44 million from its U.S. ecosystem partners.
• Cash flow from operations (excluding payment of listing and acquisition cost) exceeded $6.5 million, up 25% YoY, with positive contribution from Clever, and approx. $17 million for the first nine months, up 66% YoY.
• Cash and cash equivalents as of September 30, 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 September 1, 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.

Third Quarter 2021 – Strategic and Business Highlights

• Continuous YoY growth across all geographies and business areas. Reaching 1 billion participants (non-unique) on the Kahoot! platform in the U.S. and Canada the last twelve months, up 47% YoY. In the third quarter, U.S. and Canada represented 56% of invoiced revenue (including Clever for September).
• Kahoot! at School saw a strong Back-to-School season with record usage and over 9 million active teachers using Kahoot! last twelve months, up more than 30% YoY, in addition to having reached 10,000 schools and districts on paid subscriptions during the quarter.
• Kahoot! at Work further strengthened its Kahoot! 360 offering to support professionals in the hybrid workplace through new features and implementation of integration with Zoom, making virtual meetings more engaging. Closed the largest enterprise contracts to date for the Work segment, while further integrating Actimo and Motimate, accelerating the building of next generation tools for employee learning, engagement and corporate culture building and laying the foundation for further growth in Q4.
• Strengthening the learning & development offering by launching Kahoot! Courses, a new opportunity for both professionals and educators to develop cohesive learning experiences, adding additional value to the Kahoot! 360 product offering.
• Kahoot! At Home offerings further enriched back-to-school and accelerated the localisation of Kahoot!’s platform and app, making them available in 11 languages including our first Asian language, Japanese. Launched new social features in language learning app Drops. All of this is enabling Kahoot! to reach new global markets across business areas.
• Completed the transformational acquisition of Clever, positioning Kahoot! for further expansion in the U.S. K-12 segment. The Kahoot! App made available on the Clever platform; with more than 22 million monthly active students and 1.4 million monthly active teachers. Clever further enhanced its network through the launch of teacher/student messaging and parent access.

Highlights reflect development since June 30, 2021 through today’s announcement. For additional information, see the attached update letter from Eilert Hanoa, CEO of Kahoot!

Full Year 2021 Outlook

For the full year 2021, the Kahoot! Group reiterates the ambition to reach $90-100 million in invoiced revenue, up from $45 million in 2020, with continued solid positive cash flow from operations, and to reach 1.1 million paid subscriptions. In addition, Clever Inc, which is now part of the Kahoot! Group, is expected to exceed $15 million in invoiced revenue for the four-month period from September till December 2021, and exceed $46 million in invoiced revenue for the full year 2021, implicating 27% YoY growth.

For the fourth quarter 2021, the Kahoot Group expects invoiced revenue to exceed $39 million with more than $29 million from the Kahoot! Group (excluding Clever) and more than $10 million from Clever, with continued solid positive cash flow from operations.

As previously communicated, and following the completion of the Clever transaction, the Company is exploring the opportunity for a secondary listing, and expecting to conclude the assessment before the end of Q1 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.

The full third quarter 2021 report is scheduled for release on November 4, 2021.

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. 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!