Kaltura Announces Financial Results for Second Quarter 2025

Core Insights - Kaltura reported strong financial results for Q2 2025, exceeding guidance with record non-GAAP net profit and adjusted EBITDA matching the previous quarter's record high [2][5] - The company is focusing on growth through AI product sales and has initiated a reorganization plan, including a 10% workforce reduction, to enhance efficiency and productivity [2][8] Financial Highlights - Revenue for Q2 2025 was $44.5 million, a 1% increase from $44.0 million in Q2 2024 [5] - Subscription revenue reached $42.4 million, up 3% from $41.0 million in the same quarter last year [5] - Annualized Recurring Revenue (ARR) was $170.4 million, reflecting a 3% increase compared to $165.2 million in Q2 2024 [5] - GAAP gross profit was $31.2 million with a gross margin of 70%, compared to $28.7 million and 65% in Q2 2024 [5] - Non-GAAP net profit was $2.5 million, or $0.01 per diluted share, compared to a non-GAAP net loss of $2.1 million, or $0.01 per diluted share, in Q2 2024 [5] Business Highlights - Kaltura closed 21 new six-figure deals across various industries, including technology, banking, and education [4] - The company achieved a third consecutive quarter of year-over-year improvement in Net Dollar Retention (NDR), maintaining a rate above 100% [8] - Kaltura's AI-driven products have begun to generate initial sales, with over 100 qualified opportunities in the AI sales pipeline [6][8] Organizational Changes - A reorganization plan has been initiated to streamline operations, which includes a 10% reduction in workforce, expected to yield approximately $2.6 million in savings for the remainder of 2025 [8] - The reorganization aims to unify engineering resources and consolidate customer experience and sales teams to enhance productivity [8] Financial Outlook - For Q3 2025, Kaltura expects subscription revenue between $40.8 million and $41.6 million, and total revenue between $42.8 million and $43.6 million [7] - For the full year 2025, the company projects total revenue between $180.4 million and $182.4 million, with adjusted EBITDA expected to be in the range of $14.5 million to $16.0 million [7]