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241% Growth Alert - What is NEXT?
Started as an engagement app
It now rivals with #Duolingo and is expanding FAST
97% of Fortune 500 and 87% of Top 500 universities use it!
EdTech represents only 5% of global education expendituresHere is an EASY thread
Kahoot is a game-based learning platform that was founded in 2012 by Johan Brand, Jamie Brooker and Morten Versvik
It was a joint project with the Norwegian University of Science and Technology and was designed for social learning
It was a joint project with the Norwegian University of Science and Technology and was designed for social learning
Kahoot’s design is simple and intuitive
Hosts (e.g. teachers) can add slides, YouTube videos, puzzles, images to their questionnaire and build these on the Kahoot platform
Players connect using a simple PIN code and can team up with other players
Hosts (e.g. teachers) can add slides, YouTube videos, puzzles, images to their questionnaire and build these on the Kahoot platform Players connect using a simple PIN code and can team up with other players
They then answer questions by choosing an option from a multiple choice, type their own answer, solve a puzzle, answer a poll…
These games can be played in the classroom, but also directly on $ZM , Skype, Google Hangouts
Great! But what is the market for these educational tools?
Research And Markets forecasts that the EdTech and smart classroom market will grow from $ 86B in 2020 to $ 181B by 2025
Representing a CAGR of 16.1% over the 2020 - 2025 period
Research And Markets forecasts that the EdTech and smart classroom market will grow from $ 86B in 2020 to $ 181B by 2025 Representing a CAGR of 16.1% over the 2020 - 2025 period
Driven by the need for online teaching following the pandemic, the improved and cheaper hardware (mobile and desktop) Also driven by innovations in the EdTech sector (gamification, technical gadgets and trackers)
“Tablet computing, gamification, learning analytics, 3D printing, and wearable technical gadgets, such as small motion sensors, fitness trackers, and smartwatches have changed the vision of higher education and its operations.”
“Education technology has completely revolutionized higher education, helping the segment to overcome all the traditional barriers that were imposed by space and time.”
From Research And Markets
https://www.globenewswire.com/news-release/2020/09/30/2101344/0/en/EdTech-and-Smart-Classroom-Market-by-Hardware-System-Technology-and-Region-Global-Forecast-to-2025.html
From Research And Markets
https://www.globenewswire.com/news-release/2020/09/30/2101344/0/en/EdTech-and-Smart-Classroom-Market-by-Hardware-System-Technology-and-Region-Global-Forecast-to-2025.html
HolonIQ forecasts the global EdTech market to reach $ 404B by 2025 Representing a CAGR of 16.3% over the 2019 - 2025 period Driven by the adoption of e-learning tools and an increase in B2C EdTech as parents and workers seek learning support
Leaving plenty of upside potential as the EdTech market will only account for 5.2% of the $ 7.3T global education market in 2025“Part of this transition includes significant ‘infrastructure catch-up’ required for managing learning, data and administration as most [...]
[...] schools and colleges are still at the very start of a long digital maturity journey.”
From Holon IQ https://www.holoniq.com/notes/global-education-technology-market-to-reach-404b-by-2025/
From Holon IQ
https://www.holoniq.com/notes/global-education-technology-market-to-reach-404b-by-2025/
Great! But where does Kahoot fit in here?
Kahoot is an “Audience Response Software” as it enjoys heavy competition from Quizizz, Slido and other alternatives
Kahoot is an “Audience Response Software” as it enjoys heavy competition from Quizizz, Slido and other alternatives
What about website visits?
Quizizz scored 137m website visits in November 2020 - up 128% from June 2020 were it stood at 60m
Kahoot scored 16.6m website visits in November 2020 - up 58% from June 2020 were it stood at 10.3m
Quizizz scored 137m website visits in November 2020 - up 128% from June 2020 were it stood at 60m Kahoot scored 16.6m website visits in November 2020 - up 58% from June 2020 were it stood at 10.3m
Slido scored 3.7m website visits in November 2020 - up 20% from June 2020 were it stood at 3.1m
Poll Everywhere scored 2.3m website visits in November 2020 - up 130% from June 2020 were it stood at 1m
What about app downloads on Google Play?
Kahoot got 201,000 reviews and gets 4.7 stars out of 5
Quizizz got 84,000 reviews and gets 4.7 stars out of 5
Slido got 469 reviews and gets 4.0 stars out of 5
Poll Everywhere got 1,164 reviews and gets 3.9 stars out of 5
Kahoot got 201,000 reviews and gets 4.7 stars out of 5 Quizizz got 84,000 reviews and gets 4.7 stars out of 5 Slido got 469 reviews and gets 4.0 stars out of 5 Poll Everywhere got 1,164 reviews and gets 3.9 stars out of 5
What about app downloads on the App Store?
Kahoot got 28,400 reviews and gets 4.6 stars out of 5
Quizizz got 25,100 reviews and gets 4.8 stars out of 5
Poll Everywhere got 2,900 reviews and gets 4.8 stars out of 5
Slido got 23 reviews and gets 3.3 stars out of 5
Kahoot got 28,400 reviews and gets 4.6 stars out of 5 Quizizz got 25,100 reviews and gets 4.8 stars out of 5 Poll Everywhere got 2,900 reviews and gets 4.8 stars out of 5 Slido got 23 reviews and gets 3.3 stars out of 5
What do Kahoot and Quizizz do that sets them appart?
Provide solutions for both teachers and employers
Enable distance learnings through tailored game formats and video meeting support
Kahoot also provides solutions for parents and study-at-home children
Provide solutions for both teachers and employers Enable distance learnings through tailored game formats and video meeting support Kahoot also provides solutions for parents and study-at-home children
But who has the upper-hand?
Quizizz was reported in December 2020 to have crossed the 65m MAU
It’s app is being used in over 150 countries and 50% of its users are located in the USA https://inc42.com/startups/how-edtech-startup-quizizz-scaled-up-to-65-mn-mau-globally/
Quizizz was reported in December 2020 to have crossed the 65m MAU It’s app is being used in over 150 countries and 50% of its users are located in the USA https://inc42.com/startups/how-edtech-startup-quizizz-scaled-up-to-65-mn-mau-globally/
Kahoot passed the 50m MAU mark in June 2017 and the 70m MAU mark in January 2018 It’s app is being used in 200 countries and at 87% of the Global Top 500 universities https://kahoot.com/blog/2018/01/18/70-million-unique-users-kahoot/
Kahoot has a lead on Quizizz What is it doing to preserve that?
Kahoot is innovating fast internally in order to become the de-facto social learning tool at school, home and work
Kahoot is buying language learning apps, studying apps and math apps to expand its reach
What is it doing to preserve that? Kahoot is innovating fast internally in order to become the de-facto social learning tool at school, home and work Kahoot is buying language learning apps, studying apps and math apps to expand its reach
Internal innovation
Kahoot At Home, the tool that helps you study at home with friends or family Over 100m games have already been played
Kahoot At School, the social learning tool for teachers and students Over 180,000 teachers are paying for premium editions and engage students
Kahoot At Work, the social learning and interaction tool for corporates Over 100,000 businesses use it and 97% of the Fortune 500 companies
Kahoot Academy, a knowledge platform, marketplace and community for educators Launched in 2020 and lets educator access high quality learning content created by other educators
AcquisitionsIt doesn’t stop here! Kahoot is also quickly acquiring other learnings apps in order to broaden its offering
Poio (acq. May 2019) makes learning to read fun with an easy to use app https://kahoot.com/press/2019/05/15/kahoot-poio-join-forces-empower-students-learn-to-read/
DragonBox (acq. May 2019): makes learning math easy and fun with engaging games https://kahoot.com/press/2019/05/09/kahoot-dragonbox-join-forces-create-awesome-math-learning-experience-for-all/
Actimo (acq. Sept 2020): strengthens corporate learning, culture and engagement https://techcrunch.com/2020/09/16/user-generated-e-learning-site-kahoot-acquires-actimo-for-up-to-33m-to-double-down-on-corporate-sector/
Drops (acq. Nov 2020): make learning languages more fun (Duolingo competitor) https://techcrunch.com/2020/11/24/kahoot-drops-50m-on-drops-to-add-language-learning-to-its-gamified-education-stable/
Where does that bring us? Well, Kahoot is a full-fledged learning platform, offering:
Engagement tools for teachers, parents, corporates
An academy to access and share learning material
A platform for maths, reading, languages
Engagement tools for teachers, parents, corporates An academy to access and share learning material A platform for maths, reading, languages
Great! Looks like a promising company! Who owns it?
Softbank just invested $ 215m in the company and Kahoot will use this cash for acquisitions to boost non-organic growth https://techcrunch.com/2020/10/13/kahoot-picks-up-215m-from-softbank-for-its-user-generated-gamified-e-learning-platform/
Softbank just invested $ 215m in the company and Kahoot will use this cash for acquisitions to boost non-organic growth https://techcrunch.com/2020/10/13/kahoot-picks-up-215m-from-softbank-for-its-user-generated-gamified-e-learning-platform/
Who else owns Kahoot?
$MSFT has a 5% stake
$DIS has a 3% stake
Kahoot is traded on the Norwegian
Stock exchange under the $KAHOOT-ME ticker
$MSFT has a 5% stake $DIS has a 3% stakeKahoot is traded on the Norwegian
Stock exchange under the $KAHOOT-ME ticker
Financials Check Invoiced revenue reached $ 11.6m in Q3 ’20 up 241% YoY Gross Margins of 89% down from 93% a year earlier
EBITDA reached $ 1m up from a loss of $ 1.7m a year earlier for EBITDA Margins of 8.7%
Current assets stood at $ 75m versus current liabilities of $ 19m Kahoot counted 21m active accounts, up 45% YoY PS / Ratio currently stands at around 195
Other points you don’t want to MISS, highlighted by @mhvestergaard https://twitter.com/mhvestergaard/status/1341036170352967681?s=20
https://twitter.com/mhvestergaard/status/1341036170352967681?s=20
THE BOTTOM LINE EdTech had benefitted from a considerable boost in 2020 but still has plenty of room to grow, as it represents only 5% of global education expenditures Kahoot started as a simple engagement app and has turned itself into a full-fledged learning app
It now offers math, languages, reading courses and has branched into corporates and universities as 97% of Fortune 500 and 87% of Global Top 500 universities rely on Kahoot
Kahoot’s smart business model grows with its users: toddlers use it to learn reading, students use it at school, adults use it a work and everyone can use to learn new languages
Kahoot is growing at 241% year over year and sustaining its growth through both in-house innovation and external acquisitions
Kahoot is by no means cheap, trading at around 195 times its sales
Due to relatively low entry barriers, Kahoot as to keep innovating in order to protect its revenue base and grow with its user base We take a starter position (10% of full potential) as Kahoot is richly valued for now 
$RKT is on our watchlist Reviewed SOON
Disclaimer - This is not investment advice in any form and investors are responsible for conducting their own research before investing.
Sources
✑ Investor presentation
✑ Company website
✑ Research And Markets
✑ HolonIQ
✑ SimilarWeb
✑ G2
✑ Inc42
✑ TechCrunch
Sources
✑ Investor presentation
✑ Company website
✑ Research And Markets
✑ HolonIQ
✑ SimilarWeb
✑ G2
✑ Inc42
✑ TechCrunch
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