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Core Insights - Kaltura has won five gold awards at the 2025 Eventex Awards, achieving recognition in every category it entered, highlighting its leadership in AI-driven digital events [1][2] - This marks the third consecutive year that Kaltura Events has received top honors, showcasing its continuous innovation in personalized and impactful digital engagement [2][5] Company Achievements - Kaltura Events is recognized for its all-in-one AI-powered platform that facilitates the creation, hosting, management, and promotion of webinars and virtual events [2][3] - The platform's real-time AI assistant and sentiment analysis features provide actionable insights to enhance attendee engagement [2][3] Key Innovations - The introduction of Kaltura Genie, an AI-powered agent, enhances event engagement by delivering hyper-personalized experiences and responding to attendee inquiries during hybrid events [3][4] - The AI-powered Content Lab identifies key moments from recorded events, generating highlight reels, chaptered summaries, and interactive video quizzes to maximize content ROI [4] Industry Context - The 15th edition of the Eventex Awards received a record 1239 entries from over 50 countries, indicating the growing creativity and innovation within the events industry [5][6] - Major brands such as Volvo, L'Oreal, and Netflix were among the winning entries, reflecting the competitive landscape of event technology [6]

Core Insights - Kaltura has formed a partnership with Magna Systems to enhance its operations in the Asia-Pacific region, specifically in Australia, New Zealand, Singapore, and Hong Kong [1][2] - This collaboration is part of Kaltura's strategy to expand its media and telecom activities in APAC, with Magna being the first of several partnerships in the region [2] - Kaltura's services leverage advanced AI capabilities to improve content strategies and viewer engagement, including features like real-time translation, AI-powered content curation, and metadata enrichment [3] Company Overview - Kaltura is recognized for its AI Video Experience Cloud, which includes a robust TV Content Management system and various AI-infused video products aimed at enhancing customer and employee engagement [8] - Magna Systems & Engineering specializes in systems integration and technology solutions for the broadcast and telecommunications sectors, with a commitment to providing top-notch services and support across the Asia-Pacific region [5][9] Product Highlights - Kaltura's AI-powered product, Kaltura TV Genie, has won the Product of the Year for Streaming at the 2025 NAB Show Award, offering hyper-personalized viewing experiences and real-time content curation [4] - The partnership with Magna is expected to deliver Kaltura's AI Video Experience Cloud solutions, adding significant value and efficiency to clients in the media and telecom sectors [6] Strategic Goals - The partnership aims to connect customers with leading technology solutions, enabling innovation and maintaining a competitive edge in the media and telecom industry [6] - Kaltura and Magna Systems are focused on improving streaming experiences and expanding their reach in the APAC market through this collaboration [7]

Revenue and Profitability - Total revenue for the three months ended March 31, 2025, was $46.98 million, a 4.9% increase from $44.78 million in the same period of 2024[122]. - Subscription revenue from the Enterprise, Education & Technology segment was $34.42 million, up from $32.44 million, while Media & Telecom segment revenue increased to $12.57 million from $12.34 million[122]. - Gross profit for the three months ended March 31, 2025, was $32.74 million, compared to $28.61 million in the same period of 2024, reflecting a gross margin improvement[122]. - Annualized Recurring Revenue (ARR) increased by 7% to $174.84 million for the three months ended March 31, 2025, compared to $162.71 million in 2024[129]. - Adjusted EBITDA for the three months ended March 31, 2025, was $4.14 million, a significant increase from $0.564 million in the same period of 2024[144]. - Net loss decreased by 90% to $1.12 million for the three months ended March 31, 2025, compared to a net loss of $11.1 million for the same period in 2024[164]. - Gross margins improved to 70% for the three months ended March 31, 2025, compared to 64% for the same period in 2024[154]. Customer Metrics - Net Dollar Retention Rate improved to 107% for the three months ended March 31, 2025, up from 98% in the same period of 2024, indicating strong customer retention and expansion[122]. - Remaining Performance Obligations as of March 31, 2025, were $184.86 million, with 59% expected to be recognized as revenue over the next 12 months[137]. Expenses and Cost Management - Cost of revenue decreased by 12% from $16.17 million in Q1 2024 to $14.25 million in Q1 2025[152]. - General and administrative expenses decreased by 15% to $10.30 million for the three months ended March 31, 2025, compared to $12.08 million in Q1 2024[164]. - Research and development expenses were $12.09 million for the three months ended March 31, 2025, slightly up from $12.01 million in the same period of 2024[164]. - The company expects gradual improvement in gross margins driven by enhanced efficiencies in production and professional services costs[153]. Strategic Initiatives - The company plans to enhance its platform capabilities by integrating generative AI features for automatic video creation and advanced personalization[125]. - The company employs a "land and expand strategy" to increase customer usage and revenue, with a focus on cross-selling and upselling additional solutions[122]. - The company continues to invest in growth opportunities across various industries, including technology, education, and media & telecom[128]. - The company aims to broaden its product suite and expand its customer base while increasing recurring revenue from existing clients[124]. Segment Performance - Total EE&T gross profit increased by $3.0 million, or 13%, to $26.6 million for the three months ended March 31, 2025, from $23.6 million for the same period in 2024[170]. - EE&T subscription gross profit rose by $3.7 million, or 15%, to $27.9 million for the three months ended March 31, 2025, compared to $24.2 million for the same period in 2024[171]. - Total Media & Telecom revenue increased by $0.2 million, or 2%, to $12.6 million for the three months ended March 31, 2025, from $12.3 million for the same period in 2024[174]. - M&T subscription revenue increased by $0.8 million, or 7%, to $11.3 million for the three months ended March 31, 2025, from $10.5 million for the same period in 2024[174]. - Total M&T gross profit increased by $1.1 million, or 22%, to $6.2 million for the three months ended March 31, 2025, from $5.1 million for the same period in 2024[176]. Cash Flow and Financing - Net cash used in operating activities for the three months ended March 31, 2025, was $1.0 million, a decrease of $0.1 million compared to the same period in 2024[202]. - Net cash provided by investing activities increased by $5.8 million for the three months ended March 31, 2025, totaling $2.2 million, primarily from proceeds of $28.9 million from maturities of marketable securities[205]. - Net cash used in financing activities for the three months ended March 31, 2025, was $2.6 million, primarily due to the repurchase of common stock of $2.3 million[208]. - The company had a total revolving commitment of $25.0 million available for future borrowings as of March 31, 2025[199]. - The company is required to maintain a minimum Liquidity of at least $20.0 million as of the last day of any calendar month, and it was in compliance with this covenant as of March 31, 2025[197]. - The remaining unpaid balance on the Term Loan Facility is due and payable on December 21, 2026[195]. Shareholder Actions - The Company repurchased 1,175,109 shares of common stock at a weighted average price of $1.94 per share during the three months ended March 31, 2025[187]. Financial Position - As of March 31, 2025, the total revolving commitment under the Revolving Credit Facility is $25.0 million, with no balance outstanding[183]. - As of March 31, 2025, the company had approximately $31.7 million of borrowings outstanding under the Term Loan Facility[199]. - The company had outstanding floating rate debt obligations of $31.7 million as of March 31, 2025, exposing it to interest rate fluctuations[217]. - A hypothetical 10% change in foreign currency exchange rates would have impacted the company's results for the three months ended March 31, 2025, by $0.8 million due to NIS and $1.1 million due to Euros[216]. - The net decrease in cash, cash equivalents, and restricted cash for the three months ended March 31, 2025, was $1.364 million[201]. - Provision for income taxes decreased by $1.0 million, or 42%, to $1.3 million for the three months ended March 31, 2025, from $2.3 million for the same period in 2024[182]. - Financial income, net increased by $3.3 million, or 220%, to $1.8 million for the three months ended March 31, 2025, from a $1.5 million expense for the same period in 2024[181].

Financial Data and Key Metrics Changes - The company reported record total revenue of $47 million for Q1 2025, up 5% year over year, with subscription revenue reaching $44.9 million, an increase of 9% year over year [5][21] - Adjusted EBITDA for the quarter was $4.1 million, marking the seventh consecutive quarter of adjusted EBITDA profitability [5][24] - Non-GAAP gross margin improved to 70%, up from 65% in the same quarter last year [6][24] - The company consumed $1 million in cash for operations during the quarter, consistent with the previous year [6][26] Business Line Data and Key Metrics Changes - In the Enterprise and Telecom (EENT) segment, total revenue was $34.4 million, up 6% year over year, with subscription revenue at $33.6 million, a 10% increase year over year [23] - In the Media and Telecom (M&T) segment, total revenue was $12.6 million, representing 2% year over year growth, with subscription revenue at $11.3 million, up 7% year over year [23][24] - Professional services revenue decreased significantly, down 42% year over year, contributing $2.1 million for the quarter [22] Market Data and Key Metrics Changes - The company experienced a gross retention rate in EENT at its best level since Q4 2022, while net dollar retention climbed to 107%, the highest since Q1 2022 [8][20] - The remaining performance obligations (RPO) were $184.9 million, down 9% sequentially but up 12% year over year [22] Company Strategy and Development Direction - The company aims to achieve double-digit revenue growth and a rule of 30 by 2028, focusing on consolidating video usage around its platform and enhancing AI capabilities [14][31] - Continued investment in AI to deliver hyper-personalized experiences is a key focus, with new product offerings like Genie agents and Content Lab enhancements [9][10] - The company plans to gradually increase its sales team after a previous reduction, focusing on enterprise markets while also reaccelerating efforts in media and education sectors [44][46] Management's Comments on Operating Environment and Future Outlook - Management noted that there has been no significant negative impact from the macroeconomic environment, with customers remaining stable in their spending [35][39] - The company expects a typical seasonal decline in Q2 revenue but anticipates a strong recovery in the second half of the year [27][29] - Management remains cautious about the uncertain macro outlook but is optimistic about the pipeline and growth opportunities [30][31] Other Important Information - The company hosted its first annual investor event, showcasing its profitable growth plans and AI-infused vision [14][15] - The company continues to receive recognition from leading analyst firms, including Gartner, for its video platform services [12][13] Q&A Session Summary Question: Customer spending trends and macroeconomic impact - Management indicated no material negative impact from customers regarding spending, noting that larger organizations are planning for the mid to long term [35][36] Question: Sales team resource allocation - The company plans to gradually increase sales resources, focusing on enterprise markets while also reaccelerating efforts in media and education [44][46] Question: Nature of M&T churn - Management clarified that the churn in M&T is expected and primarily involves a few accounts exiting rather than downsizing [50][51] Question: Product investment focus - The company is focusing on deeper solutions rather than self-service, with an emphasis on AI to enhance customer experiences [54][56] Question: Dynamics of higher ARR per customer - The increase in ARR per customer is driven by upselling and consolidation around Kaltura's products rather than price increases [73] Question: AI monetization strategy update - Management expressed excitement about the growing pipeline for AI products and expects to start monetizing these opportunities in the coming quarters [76][77]

Financial Data and Key Metrics Changes - The company reported record total revenue of $47 million for Q1 2025, up 5% year over year, with subscription revenue reaching $44.9 million, an increase of 9% year over year [6][22] - Adjusted EBITDA for the quarter was $4.1 million, marking the seventh consecutive quarter of adjusted EBITDA profitability [6][25] - Non-GAAP gross margin improved to 70%, up from 65% in the same quarter last year [7][25] - Cash used in operations was $1 million, consistent with the first quarter of the previous year [7][27] Business Line Data and Key Metrics Changes - In the Enterprise and Telecom (EENT) segment, total revenue was $34.4 million, up 6% year over year, with subscription revenue at $33.6 million, a 10% increase year over year [24] - In the Media and Technology (M&T) segment, total revenue was $12.6 million, representing 2% year over year growth, with subscription revenue at $11.3 million, up 7% year over year [24][25] - Professional services revenue decreased significantly, down 42% year over year, contributing $2.1 million for the quarter [22][23] Market Data and Key Metrics Changes - The company experienced a lower rate of new subscription bookings in Q1, which is typical for the season, but noted an increase in new logos from significant clients such as Stripe and Novo Nordisk [9][19] - The net dollar retention rate improved to 107%, the highest level since Q1 2022 [10][24] Company Strategy and Development Direction - The company aims to achieve double-digit revenue growth and a rule of 30 by 2028, focusing on profitable growth and expanding its AI capabilities [16][33] - Continued investment in AI is a priority, with enhancements to products like Genie agents to provide personalized experiences [10][12] - The company is gradually increasing its sales team after a previous reduction, focusing on enterprise customers while also looking to reaccelerate growth in the M&T and education sectors [44][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the uncertain macroeconomic environment, noting no significant negative feedback from customers regarding spending [36][40] - The company anticipates a rebound in gross retention rates in the second half of the year, following expected declines in the first half [19][31] - Despite a slower start to the year, the company maintains its revenue guidance for 2025 while slightly increasing its adjusted EBITDA guidance [20][28] Other Important Information - The company hosted its first annual investor event, showcasing its growth plans and AI-infused vision [16][17] - The company continues to receive recognition from leading analyst firms, including Gartner, for its innovative products [15] Q&A Session Summary Question: What are customers saying about their willingness to spend this year? - Management noted that there has been no negative impact reported from customers, who are focused on mid to long-term planning [36][40] Question: Where will new resources be allocated in the sales team? - The company plans to gradually increase sales resources, focusing on enterprise customers while also reaccelerating efforts in M&T and education [44][46] Question: What is the nature of the M&T churn expected? - Management indicated that the churn is primarily due to a few specific accounts exiting rather than a broader trend, with expectations for improved retention moving forward [51][52] Question: What is driving the higher ARR per customer? - The increase is attributed to customers using multiple products and upselling rather than just price increases [72] Question: Any updates on AI monetization strategy? - The company is optimistic about its AI products, with expectations to start monetizing these offerings in the coming quarters [76][77]

Kaltura (KLTR) Q1 2025 Earnings Call May 08, 2025 08:00 AM ET Speaker0 Good morning, everyone, and welcome to the Kaltura First Quarter twenty twenty five Earnings Call. All material contained in the webcast is the sole property and copyright of Kaltura with all rights reserved. For opening remarks and introductions, I will now turn the call over to Ericka Mannion at Sapphire Investor Relations. Please go ahead, Ericka. Thank you, operator, and good morning. I am joined by Ron Yucatiel, Kaltura's Co Founder ...

Exhibit 99.1 First Quarter 2025 Business Highlights: • Revenue for the first quarter of 2025 was $47.0 million, an increase of 5% compared to $44.8 million for the first quarter of 2024. • Subscription Revenue for the first quarter of 2025 was $44.9 million, an increase of 9% compared to $41.2 million for the first quarter of 2024. • Annualized Recurring Revenue (ARR) for the first quarter of 2025 was $174.8 million, an increase of 7% compared to $162.7 million for the first quarter of 2024. • GAAP Gross pr ...

Core Insights - Kaltura reported record total and subscription revenue for Q1 2025, with significant improvements in net loss on both GAAP and non-GAAP bases, alongside record Adjusted net income and Adjusted EBITDA [2][5][40] - The company anticipates a return to growth in new bookings for the full year 2025, driven by customer consolidation, product maturity, and the adoption of new Gen AI capabilities [2][5] Financial Highlights - Total revenue for Q1 2025 was $47.0 million, a 5% increase from $44.8 million in Q1 2024 [5] - Subscription revenue reached $44.9 million, up 9% from $41.2 million in Q1 2024 [5] - Annualized Recurring Revenue (ARR) was $174.8 million, a 7% increase from $162.7 million in Q1 2024 [5] - GAAP gross profit was $32.7 million, with a gross margin of 70%, compared to $28.6 million and 64% in Q1 2024 [5] - Non-GAAP gross profit was $33.0 million, maintaining a non-GAAP gross margin of 70% [5] - GAAP operating loss improved to $1.6 million from $7.3 million in Q1 2024 [5] - Non-GAAP operating income was $3.1 million, compared to a non-GAAP operating loss of $0.6 million in Q1 2024 [5] - GAAP net loss was $1.1 million, or $0.01 per diluted share, significantly improved from a net loss of $11.1 million, or $0.08 per diluted share, in Q1 2024 [5] - Non-GAAP net income was $3.5 million, or $0.02 per diluted share, compared to a non-GAAP net loss of $4.4 million, or $0.03 per diluted share, in Q1 2024 [5] - Adjusted EBITDA for Q1 2025 was $4.1 million, up from $0.6 million in Q1 2024 [5] Business Highlights - Kaltura achieved a net dollar retention rate of 107%, the highest since Q1 2022, indicating strong customer retention and growth [5] - The company closed one new seven-digit deal and fifteen six-digit deals, consistent with typical seasonality [5] - There is growing interest in Gen AI products, with over 150 customers showing interest, representing approximately 20% of the customer base, indicating a significant upsell opportunity [5] Financial Outlook - For Q2 2025, Kaltura expects subscription revenue to be between $40.8 million and $41.6 million, total revenue between $43.4 million and $44.2 million, and Adjusted EBITDA between $1.5 million and $2.5 million [11] - For the full year 2025, the company forecasts subscription revenue between $170.4 million and $173.4 million, total revenue between $179.9 million and $182.9 million, and Adjusted EBITDA in the range of $13.5 million to $15.5 million [11]

Core Insights - Kaltura's annual Connect on the Road conference will focus on how AI and digital technologies are transforming enterprise content management and personalization [1][2] Group 1: Conference Details - The conference will take place in New York on May 13, San Francisco on May 15, and London on May 20, featuring discussions on "Digital Immortality" and AI's role in creating living content archives [1] - Hundreds of executives from Marketing, Communications, and Enterprise Media are expected to attend, providing a platform for sharing insights on AI-driven transformations [2] Group 2: Key Topics of Discussion - The concept of Agentic AI will be explored, which enables corporate knowledge to become a proactive, hyper-personalized, intelligent system [3] - The transformation of content into "Living archives" that self-update and deliver relevant knowledge based on real-time user needs will be a focal point [3] - Discussions will include creating enduring institutional memory sources that maintain knowledge continuity despite employee turnover [4] - Ensuring brand continuity through consistent messaging across customer interactions to enhance engagement will also be addressed [4] - Ethical considerations surrounding AI, including knowledge ownership and governance of AI-driven decision-making, will be discussed [4] Group 3: Product Demonstrations - Attendees will experience hands-on demos of Kaltura's next-generation AI platform, including the Customer Experience Genie and Work Genie AI agents, which enhance customer engagement and employee training [4] - The Kaltura Content Lab will be showcased, allowing creators to transform long-form video content into engaging, bite-sized experiences, thus maximizing content value [4] Group 4: Education Connect on the Road - Kaltura will host an Education Connect on the Road track in Europe and the US, starting in Utrecht, Netherlands, on May 12, focusing on AI's role in improving education and engagement [6] Group 5: Company Overview - Kaltura aims to create AI-infused hyper-personalized video experiences that enhance customer and employee engagement across various sectors, including education, marketing, and entertainment [7]