Kahoot! ASA

Q2 2023 recognized revenue was $41.3 million, up 14% year over year; billings were $39.9 million, up 7% year over year. Adjusted EBITDA was $11 million, up 60% year over year, with adjusted EBITDA margin at 27% versus 19% a year ago. Operating cash flow was $10.9 million, up 111% year over year, and free cash flow was $10.7 million, up 120% year over year; cash equivalents were $96.6 million and the company had no interest-bearing debt. Paid subscriptions reached 1.37 million, up 13% year over year. For the full year, management reiterated expected recognized revenue exceeding $170 million, double-digit year-over-year billing growth, and adjusted EBITDA growth above 40%; for Q3, it guided to recognized revenue of approximately $43 million.

Eilert Hanoa emphasized Kahoot!’s mission-driven strategy, product-led growth model, and the breadth of its platform across Commercial, Education, and Consumer use cases. He said the core Kahoot! platform remained the main growth engine, noted product launches such as Kahoot! 360 Engage and AI creation for educators, and pointed to a promising pipeline into the back-to-school and back-to-work seasons. On tone, he was upbeat but measured, repeatedly stressing profitable growth, scalability, and that more monetization remains possible because 97% of users are still on free offerings.

Ken Østreng focused on scalable growth, expanding profitability, and disciplined cost control. He cited 7% billings growth to $39.9 million, 14% revenue growth to $41.3 million, adjusted EBITDA of $11 million, and a 27% margin versus 19% last year, along with $10.7 million of free cash flow in Q2 and $51 million over the last 12 months. He also said net cash outflow from investments was $2.2 million in the quarter, mainly due to a $2.1 million deferred payment for Clever, with about $15 million of deferred consideration remaining, and reiterated that the business does not need additional capital to grow organically.

Most of the Q&A centered on the announced all-cash offer from the Goldman Sachs-led consortium, including why the Board recommended it, why management is participating, and whether competing offers could emerge. Andreas Hansson said the offer is best and final at NOK35 per share, that it includes a 33.3% premium to the three-month VWAP and 62.1% to the six-month VWAP, and that management and founders agreed to reinvest 42 million shares while selling 16.5 million shares. Management also addressed slower subscriber growth and flat Clever billing, saying both reflect seasonality and that the second half should be stronger, especially for Clever during back-to-school.