The Company has today released the below trading update for the third quarter 2023. The Company will not publish a full third quarter report.

Kahoot! Group – Q3 highlights
– Recognized revenue of $42.3m for the third quarter, up 16% YoY. YTD $124.1m, up 16% YoY.
– Invoiced revenue of $59.1m for the third quarter, up 10% YoY. YTD $136.5m, up 9% YoY.
– Adjusted EBITDA of $12.5m for the third quarter, up 56% YoY. YTD $33.5m, up 63% YoY.
– Profit after income tax of $5.5m for the third quarter, up $12.7m YoY. YTD $7.1m, up $16.3m YoY.
– Adjusted operating cash flow of $21m for the third quarter, up 31% YoY. YTD $40.3m, up 58% YoY.
– Cash and cash equivalents of $115m by the end of the third quarter.
– Reached 1.4m paid subscriptions, up 150K YoY.

See definitions of “invoiced revenue”, “adjusted EBITDA”, “adjusted cash flow from operations” in the “APMs” section below.

Events after the balance sheet date:
Reference is made to the offer document dated 27 July 2023 (the “Offer Document”) for the recommended voluntary offer by Kangaroo BidCo AS (the “Offeror”) to acquire all outstanding shares (the “Shares”) in Kahoot! ASA (“Kahoot!” or the “Company”) for a cash consideration of NOK 35.00 per share (the “Offer”). Reference is further made to the settlement notification by the Offeror dated 11 October 2023.

Subject to settlement of the Offer, the Company will as set out in section 1.9.5 in the Offer Document settle in cash all vested share options, including the share options vesting as a result of the Offer. The settlement of these share options with applicable payable social security taxes, and the Company’s fees to financial and legal advisors related to the Offer, is in total estimated to have a cash outflow effect of approx. $76 million.

“The Kahoot! Group delivered another quarter of sustained profitable growth. In the third quarter we maintained cost management, contributing to 30% adjusted EBITDA margin and 56% growth year-over-year in adjusted EBITDA, and our 16th consecutive quarter of positive operating cash flow, up 31% from last year.

Ten years ago, Kahoot! set out on a mission to create the leading learning platform in the world and I am proud to announce that we have now reached a milestone of ten billion non-unique participants since launch. We remain committed to continued investment in expanding user value, developing new solutions and offerings, to meet our goals to advance life-long learning opportunities for everyone, across school, work, and home.”

– Eilert Hanoa, CEO of Kahoot!

Alternative Performance Measures (APMs)
In order to enhance the understanding of the Kahoot! Group’s performance, the Group presents certain measures and ratios considered as alternative performance measures (APMs) as defined by the European Securities and Markets Authority, and these should not be viewed as substitutes for any IFRS financial measures.

The APMs in this announcement include:
Invoiced Revenue, defined as the amount invoiced to customers in the relevant period.

Adjusted EBITDA, defined as EBITDA adjusted for special operating items. Special operating items are material expenses and other material transactions of either a non-recurring nature or special in nature compared to ordinary operational income or expenses and include adjustments for share-based compensation expenses and related payroll taxes.

Adjusted cash flow from operating activities, defined as cash flow from operating activities adjusted for cash outflow for acquisitions and cash effects related to share-based payment.

These APMs are presented as the Group considers them to be important supplemental measures to understand the overall picture of revenue and profit generation in the Group’s operating activities.