Company Presentation (As presented March 2018)

Transcription

1 Company Presentation (As presented March 2018)

2 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

3 MAKE LEARNING AWESOME Vision for Kahoot! To build the LARGEST learning community in the world 3

4 ABOUT KAHOOT! Kahoot! is a game-based learning platform where the audience can join the game (quiz) on the presentation screen using their mobile device. Kahoot! was founded in 2012 by Morten Versvik, Johan Brand and Jamie Brooker who in a joint project with the Norwegian University of Technology and Science, teamed up with Professor Alf Inge Wang, and were later joined by Norwegian entrepreneur Åsmund Furuseth. The technology is based on research conducted by Kahoot! co-founder Morten Versvik for his Master s degree at NTNU, who was a student of Professor Wang s at the time. 4 Historical milestones Launched in September Reached 200k users (MAUs*) Achieved 500k cumulative players (non-uniques) Growth focus on US and K-12* education segment Reached 20M users (MAUs) Developed a worldwide recognizable brand Topped 70M users (MAUs) Achieved 1.6B cumulative players (non-uniques) Top 3 tool in US education Soft- Launched first commercial edition, Kahoot! Plus (Nov) *MAUs (Monthly Active Users) - unique users last 30 days *K-12 - publicly-supported school grades prior to college. These grades are kindergarten (K) and the 1st through the 12th grade (1-12) ÅSMUND FURUSETH CEO, Co-founder MARTIN KVÆRNSTUEN CFO MORTEN VERSVIK CTO, Co-founder JAMES MICKLETHWAIT VP of Products

5 OPERATIONAL STATUS ACCELERATED GROWTH Reached 70 million users in Dec 2017 (MAUs) 3M users (presenters) hosted/created games in Dec M 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 M 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 Q paid seats* as of end Q (since Nov 2017) 5 *Seat paid license to host/create games of Kahoot!

6 GROWTH ACCELERATING: OVER 70M UNIQUE MONTHLY ACTIVE USERS 75% YoY growth; 100M MAUs projected in M 90M 80M 70M 60M 50M 40M 30M 20M 10M +10M 10M +15M 25M +15M 40M +30M 70M +30M 100M 42M MAUs in the U.S. 100% Growth in new business sign-ups 3.3 Games played per second HIGHLIGHTS 1.6B Cumulative players since launch 10 Minutes average game session 206 Countries playing Kahoot! 90M Games played in M Games created in M Kahoot! games on platform (est.) #3 EdTech tool overall #1 in assessment 6

7 >50% OF U.S. STUDENTS PLAY KAHOOT! EVERY MONTH - BUILDING A GROWING BASE OF PROFESSIONAL USERS TO PLAY KAHOOT! IS TO MARKET KAHOOT! 1.7M U.S. K-12 teachers hosted a kahoot in M Total U.S. K-12 students 3.6M Total U.S. K-12 teachers 31M U.S. K-12 students played a kahoot in December Kahoot s game like features and easy-to-use format have helped turn it into a classroom phenomenon. Kahooting is an actual word now. - The New York Times

8 KAHOOT! GROWTH AMBITIONS FOR 2018 Reach 100M monthly active users (MAUs), a 40 % growth rate Drive Conversion of businesses, professional trainers and selected teachers* to commercial editions Increase sign-ups of professional users to 5M 4,3M new teacher accounts (33% growth YoY) 0,7M businesses accounts (100% growth YoY) Reach 50K paid seats within March *Professional trainers and selected teachers estimated to 20% of teacher sign-ups. Remaining 80% to be including K-12 teachers

9 KAHOOT! IS A UNIQUE, GAME-BASED LEARNING PLATFORM Target market Teacher led Kahoot! helps teachers succeed in and beyond the classroom. Teachers share content with Kahoot! s unrivalled global network of teachers VS Student led, e.g. Students Loud learning The Kahoot! game format is played primarily in a group setting and appeals to the players competitive nature VS An individual learning experience, e.g. Adult language learners Brand & game design The Kahoot! brand and aspects of the game such as the gameplay and music are unique VS A traditional assessment product, e.g. Teachers and students Safety & inclusiveness via formative assessment Data from the game provides feedback which helps both educators and learners optimize the learning process. It is not used to assess the outcomes of the learning process VS Assessment data like an LMS, e.g. Districts/schools and higher ed 9

10 KAHOOT! FREE FOR SCHOOLS AND PERSONAL USE (BASIC VERSION) Improved user experience main focus for product development in Recommendation engine for users to recommend relevant public Kahoot! games and questions Player identification mode to track progress over time using mobile app Improved game modes expanding on the quiz format Expanding image library to use when creating games (Getty Images API) Shared folders for groups of users to share games Simplified game creation process using mobile app

11 KAHOOT! 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 11

12 KAHOOT! 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 12

13 KAHOOT! 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 Q over 5,000 seats were on paid subscriptions 13 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

14 KAHOOT! PLUS, PRO AND ENTERPRISE Paid subscriptions with premium features for commercial use Company branding Shared folders Player identification Mobile challenges Advanced reporting 14

15 > 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 15 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 out of 5. -Greg McLaughlin, VP, Global Sales Operations, Getty Images

16 COMMERCIAL ROAD MAP 2018 Q1 Q2 Q3 Q4 Kahoot! Plus and Pro launched for businesses in Q1 with 5K paying seats as of March 2018 Increase sign-up conversion to commercial editions and migration campaign to existing businesses users Commercial offerings for new groups of independent trainers and selected teachers including Academic pricing for K-12 teachers Launch of Kahoot! Enterprise edition 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 Q

17 FINANCIAL UPDATE 17

18 FINANCIAL FORECAST Focus on proven Subscription model Cashflow positive from operations in Q 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 Subscription Revenue Premium Content Channel Revenue

19 FINANCIAL FORECAST 2018 (SUBSCRIPTIONS) Paid Seats 2018 Monthly Recurring Revenues (MRR) 2018 Country split YTD 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) 19

20 FINANCIAL FORECAST (SUBSCRIPTIONS) Paid Seats Monthly Recurring Revenues (MRR) 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 20

21 FINANCIAL FORECAST (CONTENT) Premium Content Channel Revenue Content owners /Brands paying to reach out to our community on the Kahoot! Platform Pilot projects ( ): National Geographic 20th Century Fox Disney European Banking Bill of Rights News sites Educational publishers MUSD Kahoot Revenue split Subscription Revenue Premium Content Channel Revenue In 2019/20 the content revenue will also include subscriptions to host Kahoot! on 3 rd party web sites

22 FINANCIAL PROJECTIONS Financial Projections All figures in TUSD Invoiced Subscription Revenue $4 133 $ $ $ Net change unrecognized revenues -$ $ $ $3 176 Recognized Subscription Revenues $1 842 $ $ $ Premium Content Channel Revenue $300 $1 500 $6 500 $8 000 Total Revenue $452 $2 142 $ $ $ COGS $0 -$45 -$225 -$ $1 600 Payroll/Consulting -$ $ $ $ $ Other OPEX -$ $ $ $ $6 794 Total Operating Expenses -$ $ $ $ $ EBITDA -$ $ $1 589 $ $ Cash/bank (OB) $4 563 $ $ $ Q Fund Raise * $ Net change unrecognized revenues $2 291 $5 940 $8 137 $3 176 Cash/bank (EB) $ $ $ $ * Estimated net proceeds from funding round All revenues is based on SaaS on the Kahoot! Cloud-based platform Scaling the team from 60 employees to 110 employees in 2021 (product development and sales) In 2017 all product development resources in London were moved to Oslo Status as of Q (employees) Oslo: 50 employees London: 3 employees Austin: 4 employees

23 SHAREHOLDERS AS OF MAY 2018 Shareholder No of Shares Percent Northzone VII LP 778, % Creandum III LP 552, % Datum AS 500, % Microsoft Global Finance (Microsoft Venture) 347, % AS Real-Forvaltning (Eilert Hanoa) 336, % KAM Holding AS (CFO, Martin Kværnstuen) 273, % Versvik Invest AS (CTO, Morten Versvik) 267, % Jamie Brooker 200, % K! Invest AS (Eilert Hanoa) 188, % Wesmann Hawkins AS 180, % Datum Invest AS 175, % Newbrott AS (CEO, Åsmund Furuseth) 152, % MP Pensjon PK 140, % Gamification AS 93, % Bullris Invest AS 86, % Other 1,004, % Total outstanding shares 5,279, % Employee option pool 401,000 Warrant (Disney) 225,000 Total no. of shares (Fully diluted no. of Shares) 5,905,110 Board of Directors Eilert Hanoa, Chairman Director Visma SMB Software Unit Tellef Thorleifsson, Board Member General Partner, Northzone Fredrik Cassel, Board Member General Partner, Creandum Sindre Østgard, Board Member Representing the founders Itxaso Del Palacio Aguirre, Board Observer Investment partner, Microsoft Ventures 23 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 % is already vested and 50% will vest if a commercial agreement is reached between Disney and Kahoot!

24 KEY INVESTMENT HIGHLIGHTS Very high BRAND RECOGNITION and LOVE among year-old kids 24 LARGE FAST GROWING and highly engaged user base 100m MAUs in 2018 LEADING STRATEGIC POSITION IN K-12 CLASSROOMS Gamified learning and formative assessment Strong position in the corporate training market Reaching 50K PAID SEATS within March 2019 and positive cash flow from operations in Q Estimated +$50 million in revenue in 2021