Kaltura Announces Financial Results for First Quarter 2025

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]