Kaltura(US:KLTR)2025-05-08 13:31Revenue 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].