Business Overview - Kaltura serves approximately 24% of the top 50 financial services and insurance institutions and 6 out of the 10 largest pharma and healthcare providers globally[64]. - The company serves customers in 53 countries, with key markets including the United States, United Kingdom, Germany, and France[92]. - Enterprise customers, defined as those with over 5,000 employees or paying more than $60,000 in annual recurring revenue, represented over 96% of subscription revenue in 2024[93]. - The company employs a direct sales strategy, focusing on long-term relationships with enterprise customers and supported by customer success managers[94]. - The partner ecosystem is expected to expand in 2025, enhancing customer satisfaction and retention through integrated solutions[87]. Financial Performance - Total revenue for 2024 reached $178.7 million, a 2.9% increase from $175.2 million in 2023[519]. - Subscription revenue increased to $167.7 million in 2024, up from $162.8 million in 2023, representing a 5.6% growth[519]. - Gross profit for 2024 was $119.1 million, compared to $112.2 million in 2023, reflecting a 6.5% increase[519]. - Operating loss decreased to $24.1 million in 2024 from $38.7 million in 2023, showing a 37.8% improvement[519]. - Net loss for 2024 was $31.3 million, down from $46.4 million in 2023, indicating a 32.5% reduction[521]. - Total stockholders' equity as of December 31, 2024, was $24.4 million, a decrease from $30.3 million in 2023[516]. - Research and development expenses for 2024 were $49.4 million, down from $52.4 million in 2023, a 5.7% decrease[519]. - The company reported a comprehensive loss of $31.4 million in 2024, compared to $45.0 million in 2023, a 30.3% improvement[521]. - Net cash provided by operating activities for 2024 was $12,233 thousand, compared to a net cash used of $(8,303) thousand in 2023, marking a turnaround in cash flow performance[526]. Product and Service Offerings - Kaltura plans to expand its product offerings, including the introduction of Gen AI capabilities expected to impact revenues in 2025[64]. - Kaltura's Video Content Management System (VCMS) supports the entire lifecycle of video content, including creation, storage, and analytics, designed for enterprise-grade environments[71]. - The TV Content Management System (TVCMS) offers scalable, cloud-native solutions for on-demand and live-linear TV services, supporting various monetization models[74]. - Kaltura's Video Portal integrates with corporate systems to provide secure, customizable user experiences for internal and customer-facing communication[76]. - The LMS & CMS Video Extensions streamline video integration into existing platforms, enhancing productivity and user engagement in both academic and corporate settings[76]. - Kaltura's Virtual Events & Webinars solution includes advanced security, customizable design, and analytics to measure audience engagement and ROI[76]. - The Virtual Classroom solution supports various educational formats and includes features like automated captioning and transcription to improve accessibility[78]. - TV Streaming Apps provide personalized viewing experiences and support multiple monetization models, including subscription and ad-supported options[78]. - The Gen AI-Powered Content Lab allows organizations to automate video content transformation, enhancing engagement and discoverability[78]. - The company aims to refine and expand its Gen AI solutions in response to market demands, although future adoption levels and financial impacts remain uncertain[80]. - The Gen AI-Powered 'Work Genie' and 'Class Genie' are designed to deliver hyper-personalized insights and learning experiences, respectively, while maintaining data security[83]. Market Strategy and Expansion - The company is pursuing market expansion by targeting SMEs and introducing new industry solutions for financial services and healthcare markets[64]. - Kaltura's marketing efforts include digital campaigns and free trials to enhance product engagement and expedite the sales cycle[96]. - The company has established strategic partnerships with top tech firms to expand channel sales and co-sell initiatives[95]. Assets and Liabilities - As of December 31, 2024, Kaltura, Inc. had total assets of $181.3 million, a decrease from $183.7 million in 2023[514]. - The company reported cash and cash equivalents of $33.1 million, down from $36.7 million in the previous year[514]. - Kaltura's total current liabilities increased to $101.7 million in 2024 from $99.9 million in 2023[514]. - The company had outstanding floating rate debt obligations of $32.3 million as of December 31, 2024[502]. - The company had a total of $4,085 million in prepaid expenses as of December 31, 2024, an increase from $2,656 million in 2023, representing a growth of 53.6%[644]. Stock and Equity - The number of shares outstanding increased to 152,057,148 as of December 31, 2024, from 142,588,917 in 2023[516]. - Additional paid-in capital rose to $500.0 million in 2024, up from $471.6 million in 2023, reflecting a 6.0% increase[516]. - The company repurchased common stock amounting to $(2,920) thousand in 2024, indicating a commitment to returning value to shareholders[526]. Currency and Foreign Exchange - A hypothetical 10% change in foreign currency exchange rates would have impacted Kaltura's results by $1.4 million due to NIS and $5.1 million due to Euros for the year ended December 31, 2024[501]. - The company reported cash equivalents of $12,212 million as of December 31, 2024, down from $18,745 million in 2023, a decrease of 34.6%[632]. - The fair value of outstanding foreign currency contracts was recorded as an asset of $960 million and a liability of $24 million as of December 31, 2024[635]. Operating Leases - The total operating lease payments due as of December 31, 2024, amounted to $19,945 million, with total operating lease liabilities recorded at $17,767 million[639]. - The company recorded a total operating lease cost of $2,697 million for the year ended December 31, 2024, compared to $2,875 million in 2023, reflecting a decrease of 6.2%[637]. - The total cash paid for operating leases was $3,906 million for the year ended December 31, 2024, compared to $3,353 million in 2023, an increase of 16.4%[637].
Kaltura(KLTR) - 2024 Q4 - Annual Report