Company Presentation (As presented March 2018) - Netfonds
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Company Presentation (As presented March 2018)
IMPORTANT INFORMATION
THIS PRESENTATION (HEREINAFTER REFERRED TO AS THE “PRESENTATION”) HAS BEEN PREPARED BY KAHOOT! AS (”KAHOOT!” OR THE ”COMPANY”) EXCLUSIVELY
FOR INFORMATION PURPOSES, AND DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY FINANCIAL INSTRUMENTS.
THE DISTRIBUTION OF THIS PRESENTATION AND THE OFFERING, SUBSCRIPTION, PURCHASE OR SALE OF SECURITIES ISSUED BY THE COMPANY IN CERTAIN
JURISDICTIONS IS RESTRICTED BY LAW, INCLUDING BUT WITHOUT LIMITATION TO THE UNITED STATES. PERSONS INTO WHOSE POSSESSION THIS PRESENTATION
MAY COME ARE REQUIRED BY THE COMPANY TO INFORM THEMSELVES ABOUT AND TO COMPLY WITH ALL APPLICABLE LAWS AND REGULATIONS IN FORCE IN ANY
JURISDICTION IN OR FROM WHICH IT INVESTS OR RECEIVES OR POSSESSES THIS PRESENTATION AND MUST OBTAIN ANY CONSENT, APPROVAL OR PERMISSION
REQUIRED UNDER THE LAWS AND REGULATIONS IN FORCE IN SUCH JURISDICTION, AND THE COMPANY SHALL NOT HAVE ANY RESPONSIBILITY OR LIABILITY FOR
THESE OBLIGATIONS.
THIS PRESENTATION INCLUDES AND IS BASED ON, AMONG OTHER THINGS, FORWARD-LOOKING INFORMATION AND STATEMENTS. SUCH FORWARD-LOOKING
INFORMATION AND STATEMENTS ARE BASED ON THE CURRENT EXPECTATIONS, ESTIMATES AND PROJECTIONS OF THE COMPANY OR ASSUMPTIONS BASED ON
INFORMATION AVAILABLE TO THE COMPANY. SUCH FORWARD-LOOKING INFORMATION AND STATEMENTS REFLECT CURRENT VIEWS WITH RESPECT TO FUTURE
EVENTS AND ARE SUBJECT TO RISKS, UNCERTAINTIES AND ASSUMPTIONS. THE COMPANY CANNOT GIVE ANY ASSURANCE AS TO THE CORRECTNESS OF SUCH
INFORMATION AND STATEMENTS.
SEVERAL FACTORS COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM ANY
FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS THAT MAY BE EXPRESSED OR IMPLIED BY STATEMENTS AND INFORMATION IN THIS PRESENTATION,
INCLUDING, AMONG OTHERS, RISKS OR UNCERTAINTIES ASSOCIATED WITH THE COMPANY’S BUSINESS, SEGMENTS, DEVELOPMENT, GROWTH MANAGEMENT,
FINANCING, MARKET ACCEPTANCE AND RELATIONS WITH CUSTOMERS, AND, MORE GENERALLY, GENERAL ECONOMIC AND BUSINESS CONDITIONS, CHANGES IN
DOMESTIC AND FOREIGN LAWS AND REGULATIONS, TAXES, CHANGES IN COMPETITION AND PRICING ENVIRONMENTS, FLUCTUATIONS IN CURRENCY EXCHANGE
RATES AND INTEREST RATES AND OTHER FACTORS. SHOULD ONE OR MORE OF THESE RISKS OR UNCERTAINTIES MATERIALISE, OR SHOULD UNDERLYING
ASSUMPTIONS PROVE INCORRECT, ACTUAL RESULTS MAY VARY MATERIALLY FROM THOSE DESCRIBED IN THIS DOCUMENT. THE COMPANY DOES NOT INTEND,
AND DOES NOT ASSUME ANY OBLIGATION, TO UPDATE OR CORRECT THE INFORMATION INCLUDED IN THIS PRESENTATION.
THERE MAY HAVE BEEN CHANGES IN MATTERS WHICH AFFECT THE COMPANY SUBSEQUENT TO THE DATE OF THIS PRESENTATION. NEITHER THE ISSUE NOR
DELIVERY OF THIS PRESENTATION SHALL UNDER ANY CIRCUMSTANCE CREATE ANY IMPLICATION THAT THE INFORMATION CONTAINED HEREIN IS CORRECT AS OF
ANY TIME SUBSEQUENT TO THE DATE HEREOF OR THAT THE AFFAIRS OF THE COMPANY HAVE NOT SINCE CHANGED, AND THE COMPANY DOES NOT INTEND, AND
DOES NOT ASSUME ANY OBLIGATION, TO UPDATE OR CORRECT ANY INFORMATION INCLUDED IN THIS PRESENTATION. THE CONTENTS OF THIS PRESENTATION
ARE NOT TO BE CONSTRUED AS LEGAL, BUSINESS, INVESTMENT OR TAX ADVICE. EACH RECIPIENT SHOULD CONSULT WITH ITS OWN LEGAL, BUSINESS,
INVESTMENT AND TAX ADVISER AS TO LEGAL, BUSINESS, INVESTMENT AND TAX ADVICE.
2
MAKE
LEARNING
AWESOME
Vision for Kahoot!
To build the LARGEST
learning community in
the world
3
ABOUT Kahoot! was founded in 2012 by Morten Versvik, Johan
Brand and Jamie Brooker who in a joint project with the
KAHOOT! Norwegian University of Technology and Science, teamed up
with Professor Alf Inge Wang, and were later joined by
Norwegian entrepreneur Åsmund Furuseth.
Kahoot! is a game-based
learning platform where
the audience can join the
The technology is based on research conducted by Kahoot!
game (quiz) on the
co-founder Morten Versvik for his Master’s degree at NTNU,
presentation screen using who was a student of Professor Wang’s at the time.
their mobile device.
Historical milestones
2013 2015 2017 ÅSMUND MORTEN
Launched in Growth focus on US Topped 70M users (MAUs) FURUSETH VERSVIK
September and K-12* education CEO, Co-founder CTO, Co-founder
Achieved 1.6B cumulative
segment
Reached 200k players (non-uniques)
users (MAUs*) Reached 20M users
Top 3 tool in US education
(MAUs)
Achieved 500k
Soft- Launched first
cumulative players Developed a world- MARTIN JAMES
commercial edition,
(non-uniques) wide recognizable
Kahoot! Plus (Nov) KVÆRNSTUEN MICKLETHWAIT
brand
CFO VP of Products
*MAUs (Monthly Active Users) - unique users last 30 days
*K-12 - publicly-supported school grades prior to college. These grades
4
are kindergarten (K) and the 1st through the 12th grade (1-12)
OPERATIONAL STATUS
ACCELERATED GROWTH
Reached 70 million users in Dec 2017 (MAUs)
• 3M users (presenters) hosted/created games in Dec 2017
• 67M players participated in one or more games in Dec 2017
LARGE AND GROWING BASE OF PROFESSIONAL USERS
12 M users hosted/created games during all of 2017
• 3.5M teachers and 300K businesses (unique registered users)
100% growth y-o-y in the number of new business sign-ups
• 50,000 businesses signed up for Kahoot! (Feb 2018)
COMMERCIAL MODEL GAINING TRACTION
Kahoot! Plus and Pro launched in Q1-2018
• 5000 paid seats* as of end Q1 2018 (since Nov 2017)
*Seat – paid license to host/create games of Kahoot!
5
GROWTH ACCELERATING: OVER 70M
UNIQUE MONTHLY ACTIVE USERS HIGHLIGHTS
75% YoY growth; 100M MAUs projected in 2018
100M
100M 42M 1.6B 90M
+30M MAUs in Cumulative Games
90M the U.S. players since played in
launch 2017
80M
70M 100% 10 23M
70M Growth in Minutes Games
+30M new business average game created in
60M sign-ups session 2017
50M
40M
3.3 206 51M
40M +15M Games Countries Kahoot!
played per playing games on
30M 25M second Kahoot! platform
+15M
20M
10M
10M +10M
#3 EdTech tool overall
2013 2014 2015 2016 2017 2018(est.) #1 in assessment
6
>50% OF U.S. STUDENTS PLAY KAHOOT! EVERY MONTH
- BUILDING A GROWING BASE OF PROFESSIONAL USERS
“TO PLAY KAHOOT! IS TO MARKET KAHOOT!”
3.6M
1.7M Total U.S. K-12
U.S. K-12 teachers
teachers
hosted a
kahoot in
2017
31M
U.S. K-12
students
played a
kahoot in
December
51M 2017
Total U.S. K-12
students
Kahoot’s game like features and easy-to-use format have helped turn
7
it into a classroom phenomenon. Kahooting is an actual word now.
- The New York Times
KAHOOT! GROWTH AMBITIONS FOR 2018
Reach Increase sign-ups of professional users to
100M
monthly active users (MAUs),
5M
• 4,3M new teacher accounts
a 40 % growth rate (33% growth YoY)
• 0,7M businesses accounts
(100% growth YoY)
Drive Reach
Conversion 50K
of businesses, professional trainers paid seats within March 2019
and selected teachers* to
commercial editions
*Professional trainers and selected teachers estimated to 20% of teacher sign-ups.
8 Remaining 80% to be including K-12 teachers
KAHOOT! IS A UNIQUE, GAME-BASED
LEARNING PLATFORM
Target market
Teacher led
Student led, e.g.
VS
Kahoot! helps teachers succeed in and beyond
the classroom. Teachers share content with Students
Kahoot!’s unrivalled global network of teachers
“Loud learning” An individual learning
VS
The Kahoot! game format is played primarily experience, e.g. Adult language
in a group setting and appeals to the learners
players’ competitive nature
Brand & game design A traditional assessment
VS
The Kahoot! brand and aspects of the product, e.g. Teachers and
game such as the gameplay and music are students
unique
Safety & inclusiveness via
formative assessment Assessment data like
Districts/schools
VS
Data from the game provides feedback which an LMS, e.g.
helps both educators and learners optimize and higher ed
the learning process. It is not used to assess
the outcomes of the learning process
9
KAHOOT!
FREE FOR SCHOOLS AND PERSONAL USE
(BASIC VERSION)
Improved user experience main focus
for product development in 2018
Recommendation Expanding image library to
engine for users to use when creating games
recommend relevant (Getty Images API)
public Kahoot! games
and questions Shared folders for groups
Player identification of users to share games
mode to track progress
over time using mobile Simplified game
app creation process
using mobile app
Improved game modes
expanding on the quiz
10 formatKAHOOT! AS A
CONTENT PLATFORM
51M Kahoot! games
on the platform
Premium Content Channels
Content partners and brands
are paying for premium
(official) channels on Kahoot!
Content Partners
Partnering with premium
content brands such as Disney
11KAHOOT! MOBILE APP (IOS AND ANDROID)
- EXTENDING THE EXPERIENCE
• Enabling all presenters and users to
send Kahoot! games as challenges
that can be played asynchronous
without a host
• Optimized for “on the go” rounds
with only three questions
• Provides new area to promote
content and partners
Teachers
• Make homework fun for students
• Corrected automatically
Businesses/Professional presenters
• Enable challenges to groups
• Mobile training, compliance
12KAHOOT! COMMERCIAL EDITIONS
Kahoot! is established as a well known brand and is growing organically
by word of mouth: “To Play Kahoot! is to Market Kahoot!”
Current growth rate of 100% year over year
50K businesses signed up for Kahoot! (Feb 2018)
During 2018 new commercial editions targeting the main professional user groups
will be launched
• Plus - for internal use of Kahoot! for any organization
• Pro – premium features for internal and external use of Kahoot! for organizations
• Enterprise - for larger companies with a wide use of Kahoot! internal and external
Businesses are increasingly converting to commercial editions
and per end Q1 2018 over 5,000 seats were on paid
subscriptions
During Q3-2018, new groups of professional trainers and
selected teachers will be able to upgrade to the commercial
editions including dedicated edition with “Academic pricing”
for K-12 teachers
13KAHOOT! PLUS, PRO
AND ENTERPRISE
Paid subscriptions with premium
features for commercial use
Company branding
Shared folders
Player identification
Mobile challenges
Advanced reporting
14> 25% OF THE FORTUNE 500 ARE ALREADY KAHOOT!’ING
Enterprise customers already subscribing to paid subscription for training,
presentations, events and team building
Sales training, meetings,
events, team offsites – in all
of these scenarios, Kahoot!
connects the audience and
keeps everyone engaged.
-Leo Silva, LATAM Sales
Training Partner, Facebook Why are companies upgrading to commercial editions?
Based on feedback of 1,000 sales trainees at Getty Images, a training session
with Kahoot! is now rated 4.75-4.8 out of 5.
15 -Greg McLaughlin, VP, Global Sales Operations, Getty ImagesCOMMERCIAL ROAD MAP 2018
Q1 Q2 Q3 Q4
• Kahoot! Plus and Pro • Increase sign-up • Commercial offerings for • Launch of Kahoot!
launched for businesses in Q1 conversion to new groups of Enterprise edition
with 5K paying seats as of commercial editions and independent trainers and
March 2018 migration campaign to selected teachers
existing businesses users including ”Academic
pricing” for K-12 teachers
Today the average monthly price per seat is $9 - $12, expected
to increase to $12 - $15 for new sign-ups during 2018
Target to reach 50K paid seats within Q1 2019
16FINANCIAL
UPDATE
17FINANCIAL FORECAST 2018-2021
Focus on proven Subscription model 2017 2018 2019 2020 2021
Cashflow positive from operations in Q1 2019 Revenues $0.5M $2.1M $12.4M $32.2M $53.2M
Cost $9.6M $11.5M $14M $18.7M $23.9M
EBITDA $-9.2M $-9.3M $-1.6M $13.6M $29.3M
MUSD Kahoot Revenue split
60
Subscription Revenue
50
Premium Content Channel Revenue
40
30
20
10
-
2018 2019 2020 2021
18FINANCIAL FORECAST 2018 (SUBSCRIPTIONS)
Country split YTD
Paid Seats 2018 Monthly Recurring Revenues (MRR) 2018
2018 on paid seats
United States 45.8 %
Norway 6.8 %
Netherlands 4.8 %
Canada 4.6 %
United Kingdom 4.5 %
Australia 3.8 %
France 2.3 %
Denmark 1.8 %
Spain 1.7 %
Mexico 1.7 %
Sweden 1.5 %
Brazil 1.4 %
United Arab Emirates 1.2 %
Germany 1.1 %
Singapore 1.1 %
Other (71 Countries) 15.9 %
• Free organic traffic is driving the paid subscriptions (exceptional low customer acquisition cost)
• Price points today are $9.95 (Kahoot! Plus) and $19.95 (Kahoot! Pro) per user / month (annual billing)
• 90% choose up-front annual billing, 10% choose monthly billing ($14.95 Kahoot! Plus per user / month)
• Additional price points for Kahoot! Enterprise and “Academic Pricing” for K-12 teachers / month (H2-2018)
19FINANCIAL FORECAST 2018-2021 (SUBSCRIPTIONS)
Paid Seats 2018-2021 Monthly Recurring Revenues (MRR) 2018-2021
• Customers increase number of seats during subscription period, on average increasing the MRR per
customer estimated to 10% per year
• Customer Churn is estimated to be around 20% per year, adjusted for upgrade total value Churn is
then estimated to approx. 10 % per year
20FINANCIAL FORECAST 2018-2021 (CONTENT)
• Premium Content Channel Revenue
MUSD Kahoot Revenue split
• Content owners /Brands paying to reach out to our 60
community on the Kahoot! Platform Subscription Revenue
50
• Pilot projects (2016-18): Premium Content Channel Revenue
• National Geographic
40
• 20th Century Fox
• Disney
30
• European Banking
• Bill of Rights
• News sites 20
• Educational publishers
10
• In 2019/20 the content revenue will also include -
subscriptions to host Kahoot! on 3rd party web sites 2018 2019 2020 2021
21FINANCIAL PROJECTIONS 2018-2021
Financial Projections 2018-2021
All figures in TUSD
2017 2018 2019 2020 2021
Invoiced Subscription Revenue $4 133 $16 804 $33 883 $48 369 • All revenues is based on SaaS on
Net change unrecognized revenues -$2 291 -$5 940 -$8 137 -$3 176 the Kahoot! Cloud-based
Recognized Subscription Revenues $1 842 $10 864 $25 746 $45 192 platform
Premium Content Channel Revenue $300 $1 500 $6 500 $8 000 • Scaling the team from 60
employees to 110 employees in
Total Revenue $452 $2 142 $12 364 $32 246 $53 192
2021 (product development and
COGS $0 -$45 -$225 -$1 300 -$1 600
sales)
Payroll/Consulting -$6 587 -$7 665 -$9 198 -$11 958 -$15 545
Other OPEX -$3 045 -$3 775 -$4 529 -$5 435 -$6 794 • In 2017 all product development
Total Operating Expenses -$9 631 -$11 485 -$13 953 -$18 693 -$23 939 resources in London were moved
to Oslo
EBITDA -$9 179 -$9 342 -$1 589 $13 553 $29 253
• Status as of Q1 2018 (employees)
Cash/bank (OB) $4 563 $14 011 $18 362 $40 052
Q1 2018 Fund Raise * $16 500 - - -
• Oslo: 50 employees
Net change unrecognized revenues $2 291 $5 940 $8 137 $3 176 • London: 3 employees
Cash/bank (EB) $14 011 $18 362 $40 052 $72 481 • Austin: 4 employees
22 * Estimated net proceeds from funding roundSHAREHOLDERS AS OF MAY 2018
Shareholder No of Shares Percent
Northzone VII LP 778,888 14.8 %
Creandum III LP 552,221 10.5 % Board of Directors
Datum AS 500,000 9.5 %
Microsoft Global Finance (Microsoft Venture) 347,000 6.6 %
AS Real-Forvaltning (Eilert Hanoa) 336,736 6.4 % Eilert Hanoa, Chairman
KAM Holding AS (CFO, Martin Kværnstuen) 273,951 5.2 % Director Visma SMB Software Unit
Versvik Invest AS (CTO, Morten Versvik) 267,729 5.1 %
Jamie Brooker 200,743 3.8 %
K! Invest AS (Eilert Hanoa) 188,900 3.6 % Tellef Thorleifsson, Board Member
Wesmann Hawkins AS 180,743 3.4 % General Partner, Northzone
Datum Invest AS 175,000 3.3 %
Newbrott AS (CEO, Åsmund Furuseth) 152,600 2.9 %
MP Pensjon PK 140,807 2.7 % Fredrik Cassel, Board Member
Gamification AS 93,330 1.8 % General Partner, Creandum
Bullris Invest AS 86,000 1.6 %
Other 1,004,462 19.0 %
Total outstanding shares 5,279,110 100.0 % Sindre Østgard, Board Member
Representing the founders
Employee option pool 401,000
Warrant (Disney) 225,000
Itxaso Del Palacio Aguirre, Board Observer
Total no. of shares (Fully diluted no. of Shares) 5,905,110 Investment partner, Microsoft Ventures
• The employee options outstanding have a term of four years, vesting at various
times up until Q3’20. Strike prices NOK 100 on more than 98% of the pool.
• Disney has an outstanding warrant to invest MNOK 22.5 at share price NOK
100. The warrant expires at 31.12.2018. 50% is already vested and 50% will
23 vest if a commercial agreement is reached between Disney and Kahoot!KEY
INVESTMENT Very high BRAND
HIGHLIGHTS RECOGNITION and LOVE
among 13-18 year-old kids
LEADING STRATEGIC
POSITION IN K-12
CLASSROOMS
Gamified learning and Reaching 50K PAID SEATS
formative assessment within March 2019 and
positive cash flow from
operations in Q1 - 2019
LARGE
Estimated +$50 million
in revenue in 2021
FAST GROWING
and highly engaged
Strong position in
user base
the corporate
100m MAUs training market
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