KAHOT: Kahoot! Group Reports Second Quarter 2023 Financial Results

OSLO, 17 August 2023 - Kahoot! ASA, (KAHOT) today announced financial results
for its fiscal quarter ended 30 June 2023

o Revenue of $41.3 million for the second quarter, up 14% YoY. 

o Billings (invoiced revenue) of $39.9 million for the second quarter, up 7%
YoY.

o Adjusted EBITDA of $11.0 million for the second quarter, up 60% YoY.

o Operating cash flow of $10.9 million for the second quarter, up 111% YoY. 

o Net new 20K paid subscriptions for the second quarter, of which 17K from
professional user categories. The Kahoot! Group reached 1,365K paid
subscriptions by the end of the second quarter, up 13% YoY.

Events after the second quarter: On July 14, 2023, Kahoot! ASA announced an
agreement for a recommended voluntary all cash offer from the Private Equity
business within Goldman Sachs Asset Management, with co-investors General
Atlantic FT B.V., KIRKBI Invest A/S, Glitrafjord AS and certain other investors
and management shareholders, to acquire all issued and outstanding shares in
Kahoot! at a best and final offer price of NOK 35 per share, representing an
aggregate equity purchase price of NOK 17.2 billion. The board of directors of
Kahoot! (excluding its members having a conflict of interest) has unanimously
resolved that it has recommended the shareholders of Kahoot! to accept the
Offer. The offer period commenced on 28 July 2023 and will expire at 16:30 hours
(Norwegian time) on 25 August 2023. The Offer Document is, subject to regulatory
restrictions in certain jurisdictions, available at the following webpage:
www.danskebank.no/Kahoot. Please see page 9 for statement of the Board of
Directors of Kahoot! ASA regarding the voluntary all cash offer by the investor
consortium led by Goldman Sachs.


«The Kahoot! Group continued to execute well in the second quarter, with good
growth in revenues and further improved profitability, including all-time high
EBITDA and strong operating cash flow.

Under continued challenging market conditions with a cautious spending
environment, the group's diverse business proved resilient, with the core
Kahoot! service delivering particularly solid growth. The long-term development
in professional users segments continued, with larger customers taking advantage
of our expanding suite of solutions. 

The second quarter saw Kahoot! taking user-centricity to the next level by
launching several new AI-powered features, including our question generator,
allowing our users to create engaging learning content in seconds. Feedback on
our recent product innovations has been great, and I am looking forward to
launching an exciting pipeline of new solutions and features over the coming
months, with even more offerings harnessing the possibilities of generative AI.

Recently a consortium of investors, led by Goldman Sachs, announced an offer to
acquire all shares of Kahoot! ASA. The Board of Directors and I believe the
terms of the offer are in the best interests of Kahoot! and our shareholders,
and that this will benefit our users, customers, employees and partners. We have
recommended accepting the offer as it represents a fair valuation of the
company, as well as significant opportunities for accelerating the company's
journey to make learning awesome for everyone.»

                                             - Eilert Hanoa, CEO of Kahoot!


Please find enclosed the Q2 2023 presentation and report.


Second Quarter 2023 - Financial and Operational Highlights

o Total revenue and other operating income in the second quarter grew $5.2
million YoY to $41.3 million, up 14%. For the first half year 2023 revenue grew
$11.4 million YoY to $81.8 million, up 16%.

o Billings (invoiced revenue) were $39.9 million in the second quarter, up 7%
YoY, whereof Clever contributed $13.2 million vs. $13 million in the second
quarter 2022. Excluding Clever, invoiced revenue in the second quarter grew $2.4
million YoY to $26.6 million, up 10%.  For the first half year 2023 invoiced
revenue grew $6.2 million YoY to $77.5 million, up 9%.

o Annual Recurring Revenue ("ARR") of $163.5 million, up 15% YoY. 

o Total operating expenses (excluding share-based compensation expenses and
related payroll taxes) were $30.3 million in the second quarter, up 4% YoY.

o Adjusted EBITDA in the second quarter grew $4.1 million YoY to $11.0 million,
up 60%. For the first half year 2023, adjusted EBITDA grew $8.5 million YoY to
$21.0 million, up 67%.

o Cash flow from operations in the second quarter grew $5.7 million to $10.9
million, up 111% from adjusted cash flow from operations in the second quarter
2022. For the first half year 2023, adjusted cash flow from operations grew $9.9
million YoY to $19.3 million, up 106%.

o Cash and cash equivalents per the end of the second quarter 2023, totaled
$96.6 million. The Group has no interest-bearing debt.

o Total number of paid subscriptions reached 1,365,000 across all services, up
13% YoY, representing an organic increase of 20,000 from the previous quarter,
of which 17,000 from professional user categories. At the end of the first
quarter, Commercial reached 604,000 paid subscriptions, Education reached
458,000 paid subscriptions and Consumer & Experience reached 303,000 paid
subscriptions.

o Active accounts on the Kahoot! platform (over the last twelve months) was 24
million, with 259 million hosted sessions, and more than 1.6 billion
participants (non-unique) globally.
 
«The group delivered sustained profitable growth in the second quarter,
including double digit billings growth from the core Kahoot! platform. The
company's focus on operational efficiency continues to yield results. In the
second quarter we maintained disciplined cost management with a sequential
quarterly decline in operating expenses, contributing to a 27% margin and 60%
growth in adjusted EBITDA, and our 15th consecutive quarter of positive
operating cash flow, up 111% from last year. 

The group will continue to operate with a modest cost development in the
quarters to come and due to effective unit economics and a highly scalable
platform, we expect to see continued profitable growth. In line with previous
years seasonality, we expect to see stronger growth in the second half of the
year.»
					 
 					           - Ken Østreng, CFO of Kahoot!



For further information, please contact:

Eilert Hanoa, CEO 		
Phone: +47 928 32 905
Email: eilerth@kahoot.com
 
Ken Østreng, CFO 		
Phone: +47 911 51 686
Email: keno@kahoot.com

Jonas Forslund, Director Investor Relations
Phone: +358 40 595 0968
Email: jonasf@kahoot.com


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. Since launch, Kahoot! has hosted hundreds of millions of learning
sessions with over 9 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!