Financial Data and Key Metrics Changes - The company reported record total revenue of $47 million for Q1 2025, up 5% year over year, with subscription revenue reaching $44.9 million, an increase of 9% year over year [5][21] - Adjusted EBITDA for the quarter was $4.1 million, marking the seventh consecutive quarter of adjusted EBITDA profitability [5][24] - Non-GAAP gross margin improved to 70%, up from 65% in the same quarter last year [6][24] - The company consumed $1 million in cash for operations during the quarter, consistent with the previous year [6][26] Business Line Data and Key Metrics Changes - In the Enterprise and Telecom (EENT) segment, total revenue was $34.4 million, up 6% year over year, with subscription revenue at $33.6 million, a 10% increase year over year [23] - In the Media and Telecom (M&T) segment, total revenue was $12.6 million, representing 2% year over year growth, with subscription revenue at $11.3 million, up 7% year over year [23][24] - Professional services revenue decreased significantly, down 42% year over year, contributing $2.1 million for the quarter [22] Market Data and Key Metrics Changes - The company experienced a gross retention rate in EENT at its best level since Q4 2022, while net dollar retention climbed to 107%, the highest since Q1 2022 [8][20] - The remaining performance obligations (RPO) were $184.9 million, down 9% sequentially but up 12% year over year [22] Company Strategy and Development Direction - The company aims to achieve double-digit revenue growth and a rule of 30 by 2028, focusing on consolidating video usage around its platform and enhancing AI capabilities [14][31] - Continued investment in AI to deliver hyper-personalized experiences is a key focus, with new product offerings like Genie agents and Content Lab enhancements [9][10] - The company plans to gradually increase its sales team after a previous reduction, focusing on enterprise markets while also reaccelerating efforts in media and education sectors [44][46] Management's Comments on Operating Environment and Future Outlook - Management noted that there has been no significant negative impact from the macroeconomic environment, with customers remaining stable in their spending [35][39] - The company expects a typical seasonal decline in Q2 revenue but anticipates a strong recovery in the second half of the year [27][29] - Management remains cautious about the uncertain macro outlook but is optimistic about the pipeline and growth opportunities [30][31] Other Important Information - The company hosted its first annual investor event, showcasing its profitable growth plans and AI-infused vision [14][15] - The company continues to receive recognition from leading analyst firms, including Gartner, for its video platform services [12][13] Q&A Session Summary Question: Customer spending trends and macroeconomic impact - Management indicated no material negative impact from customers regarding spending, noting that larger organizations are planning for the mid to long term [35][36] Question: Sales team resource allocation - The company plans to gradually increase sales resources, focusing on enterprise markets while also reaccelerating efforts in media and education [44][46] Question: Nature of M&T churn - Management clarified that the churn in M&T is expected and primarily involves a few accounts exiting rather than downsizing [50][51] Question: Product investment focus - The company is focusing on deeper solutions rather than self-service, with an emphasis on AI to enhance customer experiences [54][56] Question: Dynamics of higher ARR per customer - The increase in ARR per customer is driven by upselling and consolidation around Kaltura's products rather than price increases [73] Question: AI monetization strategy update - Management expressed excitement about the growing pipeline for AI products and expects to start monetizing these opportunities in the coming quarters [76][77]