Kahoot Financial Model

Three core segment offerings built on a single cloud platform:

• Kahoot! at School: Teacher/student quiz-based learning. Free + from $3/teacher/month.
• Kahoot! at Home: Family/social learning games. Free + from $5/user/month.
• Kahoot! at Work: Corporate training, engagement, culture. From $10/user/month.
• Kahoot! Academy (launching 2021): Marketplace connecting educators with verified premium content from publishers and partners.
• Kahoot! 360 (coming 2021): Next-generation corporate culture and learning tool.
• Language Learning (coming soon) and Bitmoji integration (coming soon).
• Acquired Poio (reading app), DragonBox (math games), Actimo (enterprise engagement platform).

Value prop: viral distribution - playing a Kahoot promotes Kahoot; 1m+ new accounts and 2m+ app downloads per month with zero external marketing spend.

• TAM: $20bn EdTech market opportunity (estimated 2020, source: Goldman Sachs Education Technology Sector Trends, May 2020).

Pure subscription SaaS (no advertising mentioned):

• School: Free tier + premium teacher plans from $3/teacher/month
• Home/Study: Free tier + from $5/user/month; DragonBox curriculum subscriptions included in this segment
• Work: From $10/user/month; site licences for institutional/enterprise
• Academy/Marketplace (2021): Publisher/educator content monetization - model TBD
• Actimo (acquired Q4 2020): Employee engagement SaaS - pricing not disclosed

Distribution: Entirely organic / viral (no external marketing cost stated). Integrations with Microsoft Teams, Zoom, Google Hangouts, Slack.

Revenue | Period | Invoiced Revenue | | -- | -- | | FY 2018 | $3.5m | | FY 2019 | $13m | | Q1–Q3 2020 | $27.7m | | Q3 2020 (quarter) | $11.6m (+240% YoY, +20% QoQ) | | FY 2020 Guidance | $41–42m (+220% YoY) | | Q4 2020 Guidance | ~$14m (+20% QoQ; Actimo ~10% of that) |

Active Accounts (LTM) | Period | Active Accounts | | -- | -- | | Q4 2018 | 12m | | FY 2019 | 16m | | Q3 2020 | 21m+ (+45% YoY) | | FY 2020 Guidance | 22m+ |

• 8% QoQ average growth; strong organic, no external marketing
• 7m teachers/educators within the 21m total

Paid Subscriptions (end of period) | Period | Paid Subs | | -- | -- | | Q4 2018 | 46K | | FY 2019 | 170K | | Q2 2020 | 270K | | Q3 2020 | 360K (+160% YoY, +33% QoQ) | | FY 2020 Guidance | 400K+ (excl. Actimo) |

• 34% QoQ average growth
• Q3 2020 mix: 180K School, 105K Work, 75K Home & Study

Engagement

• 224m games hosted LTM Q3 2020 (+10% YoY)
• 1.339bn participants LTM Q3 2020 (+19% YoY)
• 100m+ user-generated Kahoots

Cash / Profitability

• Cash & equivalents: $72m as of 30 Sep 2020, zero interest-bearing debt
• Q3 2020 operating cash flow: ~$5.2m (45% cash conversion from invoiced revenue)
• Q3 2020 EBITDA: expected to exceed $1m
• FY 2020: continued positive cash flow from operations

Other social proof

• 87% of global top 500 universities using Kahoot!
• 97% of Fortune 500 using Kahoot!
• 30m+ players enjoying partner-created kahoots

• Net dollar retention: 90–100% overall; above 100% for larger organizations
• Cash conversion: 45% of invoiced revenue → operating cash flow in Q3 2020
• CAC: Not explicitly stated. Organic/viral model - "no external marketing cost" for active account growth
• ARPU (implied): Q3 2020: $11.6m revenue / ~345K avg paid subs ≈ $33.6/sub/quarter → ~$135/sub/year

• Viral distribution: playing = promoting; 1m+ new accounts and 2m+ app downloads/month organically
• Brand: globally recognized; 87% of top 500 universities, 97% of Fortune 500
• Content network: 100m+ user-generated Kahoots; academy marketplace connecting educators
• Data / product: user-centric, data-driven development
• Ecosystem lock-in: integrations with Microsoft, Google, Zoom, Slack; Disney, Microsoft as strategic shareholders

• Listed company - not seeking a round. Already on Oslo Stock Exchange Merkur Market; main listing Oslo Stock Exchange planned Q1 2021.
• Employees: 130+ as of 2020 (grew from 50 in 2017, 75 in 2018, 120 in 2019)
• Shareholders: Datum Group 13%, Northzone 12%, AS Real-Forvaltning 7.6%, Creandum 6.8%, Microsoft 5.2%, Board of Directors 32% combined
• Total shares: 399.5m outstanding; 416.6m fully diluted
• Market cap: NOK 19.2bn (~$2bn at ~NOK 10/USD) as of 2 Oct 2020
• Use of funds: "Solid funding for strategic partnerships and non-organic growth"; Actimo acquisition completed Q4 2020. No specific capital raise or use-of-funds breakdown disclosed.
• No debt

• Archetype + why: Multi-segment subscription SaaS ARR model with cohort retention overlay. Kahoot! has three distinct subscription tiers (School, Work, Home/Study) at different price points, strong NDR, and an acquisition (Actimo) to consolidate. The primary drivers are subscriber count growth by segment and ARPU by segment. A SaaS ARR + cash flow model is the right fit. This is a listed operating company - no need for a deal/SPAC model.

• Forecast horizon & granularity: Quarterly through FY 2021–2022 (management targets through 2022/2023 given), then annual to 2025. Q1–Q4 quarterly granularity to capture seasonality (education cycle) and Actimo contribution.

• Key drivers & assumptions:

*Paid subscribers by segment (end of period):*

• School: 180K in Q3 2020. Add ~60–70K/quarter; NDR 90%+ implies low churn
• Work (excl. Actimo): 105K in Q3 2020. Add ~30–40K/quarter; NDR >100% for larger orgs implies net expansion
• Home/Study: 75K in Q3 2020. Add ~20–25K/quarter
• Actimo (Work+): Contributed ~10% of Q4 2020 invoiced revenue (~$1.4m); sub count not disclosed. Scale from Q4 2020 baseline
• Management target: 400K+ by end FY 2020, +250K/year thereafter (excl. Home/Study)

*ARPU by segment (annualized):*

• School: List price from $3/teacher/month → ~$36/year; institutional/site licensing likely higher
• Home/Study: From $5/user/month → ~$60/year
• Work: From $10/user/month → ~$120/year; enterprise contracts likely higher
• Blended ARPU implied ~$115–140/year based on Q3 2020 actuals

*Revenue:*

• FY 2020 guided $41–42m; implies Q4 2020 ~$14m
• Management ARR target: $100m+ by end 2022, ~$150m+ by end 2023
• Apply segment ARPU × paid subs; sum to total invoiced revenue

*Cash conversion & margins:*

• Q3 2020 operating cash flow conversion: 45% of invoiced revenue
• Q3 2020 EBITDA: >$1m (margin ~9%)
• Management long-term EBITDA target: 40%+ margin
• S&M: Effectively zero external; budget around product-led viral mechanics
• R&D and G&A: scale with headcount; headcount 130+ in 2020; assume adds 20–30% annually

*Active accounts (engagement metric):*

• 21m+ LTM Q3 2020, management target 22m+ FY 2020; +3m net/year thereafter
• Use as leading indicator / conversion funnel to paid subs (current conversion ~1.7% of active accounts to paid)

*Cash:*

• Opening cash $72m, zero debt
• Operating CF exceeds EBITDA (management target)

*Regional mix:*

• USA & Canada ~49%, Europe ~35%, Rest ~16% of invoiced revenue
• Assume proportional growth by region

• Scenarios (Base / Bull / Bear - which variables flex):
• Base: +250K net paid subs/year (excl. Home/Study per management target); ARPU flat; EBITDA margin expands to ~25% by 2022
• Bull: Net sub adds accelerate (+300K+/year); ARPU uplift from enterprise Work/Actimo upsell; EBITDA hits 40% by 2023
• Bear: Subscriber growth decelerates post-COVID tailwind (add only +150K/year); ARPU erosion from Home/Study weight; EBITDA margin stays sub-20% through 2023

• Required sheets / outputs:

1. Assumptions - all drivers, prices, growth rates, segment splits
2. Subscriber Model - quarterly paid subs by segment (School / Work / Home / Actimo); churn/net retention
3. Revenue Build - ARPU × subs by segment → total invoiced revenue; quarterly
4. P&L - Revenue, Gross Profit, S&M, R&D, G&A, EBITDA, Net Income
5. Cash Flow - Operating CF (EBITDA + WC), capex, M&A; opening/closing cash
6. KPI Dashboard - active accounts, paid subs, ARPU, invoiced revenue, EBITDA margin, cash conversion; quarterly
7. Scenario toggle - Base / Bull / Bear switcher on key growth and margin drivers