Kaltura(US:KLTR)2024-11-06 12:37Revenue Performance - Revenue for Q3 2024 was $44.3 million, a 2% increase from $43.5 million in Q3 2023[4] - Subscription revenue for Q3 2024 was $42.1 million, up 3% from $40.8 million in Q3 2023[4] - Annualized Recurring Revenue (ARR) for Q3 2024 reached $168.9 million, a 4% increase compared to $163.1 million in Q3 2023[4] - Total revenue for the three months ended September 30, 2024, was $44.295 million, a slight increase from $43.542 million in the same period of 2023[25] - Subscription revenue for the three months ended September 30, 2024, was $42.085 million, compared to $40.847 million in the prior year, reflecting a growth of approximately 3.0%[25] Profitability Metrics - GAAP gross profit for Q3 2024 was $29.5 million, with a gross margin of 67%, compared to $27.7 million and 64% in Q3 2023[5] - Non-GAAP net income for Q3 2024 was $2.1 million, or $0.01 per diluted share, compared to a non-GAAP net loss of $3.2 million, or $(0.02) per diluted share, in Q3 2023[7] - Adjusted EBITDA for Q3 2024 was $2.4 million, up from $0.3 million in Q3 2023[7] - Operating loss for the three months ended September 30, 2024, was $4.466 million, an improvement from a loss of $8.314 million in the same period of 2023[25] - The company reported a net loss of $3.610 million for the three months ended September 30, 2024, compared to a net loss of $10.726 million in the same period of 2023[25] Cash Flow and Assets - Cash provided by operating activities was $7,920,000 for the nine months ended September 30, 2024, compared to cash used of $(9,904,000) in the same period of 2023[29] - The company reported a net cash increase of $156,000 for the nine months ended September 30, 2024, contrasting with a decrease of $(11,660,000) in the prior year[29] - The total current assets increased to $118.549 million as of September 30, 2024, from $111.734 million as of December 31, 2023[24] - The company’s cash, cash equivalents, and restricted cash at the end of the period totaled $36,940,000, up from $34,173,000 at the end of Q3 2023[29] Expenses and Liabilities - Research and development expenses for Q3 2024 were $12,427,000, slightly down from $12,558,000 in Q3 2023, a decrease of 1.0%[30] - Total liabilities increased slightly to $154.442 million as of September 30, 2024, compared to $153.416 million as of December 31, 2023[24] - Stock-based compensation totaled $5.635 million for the three months ended September 30, 2024, down from $7.370 million in the same quarter of 2023[26] Future Projections - The company expects Q4 2024 subscription revenue to grow by 2%-4% year-over-year, projecting between $41.8 million and $42.5 million[10] - For the full year 2024, subscription revenue is expected to grow by 2% year-over-year, reaching between $166.1 million and $166.8 million[10] Customer Retention and Performance Obligations - The Net Dollar Retention Rate measures the success in retaining and growing recurring revenue from existing customers, with fluctuations influenced by revenue base growth and product expansion[22] - Remaining Performance Obligations indicate contracted future revenue not yet delivered, with an expectation to recognize 59% as revenue over the next 12 months[23] - Remaining Performance Obligations as of September 2024 were $187,846,000, compared to $163,995,000 in September 2023, indicating an increase of about 14.6%[34] Segment Performance - Gross profit for the Enterprise, Education, and Technology segment increased to $24,539,000 in Q3 2024 from $22,762,000 in Q3 2023, representing a growth of 7.0%[28] - Total gross profit for the company reached $29,541,000 in Q3 2024, up from $27,699,000 in Q3 2023, marking an increase of 6.7%[28] - Non-GAAP gross profit for Q3 2024 was $29,907,000, compared to $28,101,000 in Q3 2023, indicating a year-over-year increase of 6.4%[30] - GAAP gross margin improved to 67% in Q3 2024 from 64% in Q3 2023, while Non-GAAP gross margin increased to 68% from 65%[30] Other Financial Metrics - Non-GAAP operating income for Q3 2024 was $1,289,000, compared to a loss of $(819,000) in Q3 2023, showing a significant turnaround[30] - Financial expenses (income), net for the three months ended September 30, 2024, were $(2,160,000), compared to $(95,000) in the same period of 2023[31] - Provision for income taxes for the three months ended September 30, 2024, was $1,304,000, down from $2,507,000 in the same period of 2023[31] - Depreciation and amortization for the three months ended September 30, 2024, was $1,254,000, slightly up from $1,248,000 in the same period of 2023[31] Special Considerations - The nine months ended September 30, 2024, included war-related costs attributed to temporary relocations and emergency equipment purchases for key employees[33]