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]

Core Viewpoint - Kaltura is set to release its first quarter financial results for the period ending March 31, 2025, on May 8, 2025, before market open, followed by a conference call to discuss the results and financial outlook [1]. Group 1: Financial Results Announcement - Kaltura will announce its first quarter financial results on May 8, 2025 [1]. - The conference call to review the financial results will take place at 8:00 a.m. ET [2]. Group 2: Company Overview - Kaltura's mission focuses on creating AI-infused hyper-personalized video experiences to enhance customer and employee engagement [2]. - The company offers a range of products within its AI Video Experience Cloud, including enterprise content management and various video-first applications [2]. - Kaltura engages millions of users across different sectors, enhancing experiences in marketing, education, communication, and entertainment [2].

Core Insights - Kaltura has been recognized as a Representative Vendor in the Gartner Market Guide for Video Platform Services, highlighting its significance in the enterprise video platform market [1][7] - The company is committed to providing a comprehensive AI Video Experience Cloud that includes various video solutions tailored for enterprises [2][11] Company Offerings - Kaltura's AI Video Experience Cloud features a range of products such as Video Content Management System (VCMS), Video Portal, LMS and CMS video extensions, Virtual Classroom, and TV Content Management System (TVCMS) [2][11] - The platform supports cloud, on-prem, and hybrid models, catering to diverse enterprise use cases across marketing, sales, education, and entertainment [3][4] Technological Advancements - Kaltura is integrating AI and automation into its video solutions, enhancing the value of media assets for organizations [5][6] - The introduction of AI-powered agents like Kaltura Work Genie and Kaltura Class Genie allows for hyper-personalized digital experiences, improving content discovery and engagement [6][11] Strategic Positioning - The unified platform reduces operational silos, cuts costs, and provides holistic business insights, encouraging organizations to consolidate their video needs with Kaltura instead of using multiple vendors [4][11] - Kaltura's API-first modular architecture facilitates seamless integration and extensive customization, enhancing its adaptability within business workflows [4][11]

New York, April 14, 2025 (GLOBE NEWSWIRE) -- Kaltura (Nasdaq: KLTR), the AI Video Experience Cloud, announced the Kaltura TV Genie has won the Product of the Year for Streaming at the 2025 NAB Show Awards. This official awards program recognizes some of the most significant and promising new products and technologies showcased by exhibitors at NAB Show.  Kaltura’s TV Genie enables media and telecommunication companies to offer AI-powered, hyper-personalized lean-forward viewing experiences for audiences, ...

Core Insights - Kaltura has announced a partnership with Synthesia to integrate AI-generated avatar content into its video platform, enhancing viewer engagement and creating immersive experiences [1][4] - The collaboration aims to revolutionize learning and training by providing hyper-personalized, interactive content that improves knowledge retention [2][6] - The partnership will also make video production more accessible and cost-effective, eliminating the need for expensive studio shoots and extensive editing [3] Company Overview - Kaltura's mission is to create AI-infused hyper-personalized video experiences that enhance customer and employee engagement [7] - Kaltura's platform includes a variety of video-first products, such as Video Portals, LMS and CMS Video Extensions, and Virtual Classrooms, serving millions of end-users [7] - Synthesia is recognized as a leading enterprise AI video platform, with over 1 million users across 65,000 businesses, including a significant portion of the Fortune 100 [8] Use Cases - The integration of AI-generated content will benefit various sectors, including: - Enterprise Training & Onboarding: AI-generated training modules and compliance videos [6] - Higher Education & E-Learning: Automated lecture content and multilingual courses [6] - Marketing & Customer Engagement: AI-powered product demos and personalized marketing campaigns [6] - Healthcare & Financial Services: Automated regulatory training and client education videos [6] Strategic Goals - The partnership is expected to unlock new market opportunities and enhance enterprise training programs, education, and employee onboarding [5] - Kaltura aims to set new industry benchmarks for AI video innovation through this collaboration [4]

Recently honored by AWS as a top Vertical Technology Partner of the Year, Kaltura will leverage itscutting-edge video technology alongside powerful AWS AI and cloud capabilities, with Kaltura and AWS investing in joint innovation, marketing and co-selling initiatives.New York, March 13, 2025 (GLOBE NEWSWIRE) -- Kaltura (Nasdaq: KLTR), the Video Experience Cloud, today announced that it has signed a two-year Strategic Collaboration Agreement (SCA) with Amazon Web Services (AWS), the world’s most comprehens ...

NEW YORK, March 06, 2025 (GLOBE NEWSWIRE) -- Kaltura (Nasdaq: KLTR), the Video Experience Cloud, today announced that it will host its 2025 Investor Event on Wednesday, March 12, 2025. The event will feature executive presentations outlining the Company's business, strategic vision, product innovation, and financial performance, and showcasing Kaltura’s AI-infused Video Experiences platform. The day's session will include presentations from key members of Kaltura’s leadership team including Co-Founder, Cha ...