NEW YORK, Aug. 07, 2025 (GLOBE NEWSWIRE) -- Kaltura, Inc. (Nasdaq: KLTR, "Kaltura" or the "Company"), the Video Experience Cloud, today announced financial results for the second quarter ended June 30, 2025, as well as outlook for the third quarter and full year 2025. "We exceeded the upper end of all our second quarter guidance ranges, delivering record non-GAAP net profit, an adjusted EBITDA profit that matched last quarter's record high, and strongest second-quarter operating cash flow since 2020," said ...

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]

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 [6][22] - Adjusted EBITDA for the quarter was $4.1 million, marking the seventh consecutive quarter of adjusted EBITDA profitability [6][25] - Non-GAAP gross margin improved to 70%, up from 65% in the same quarter last year [7][25] - Cash used in operations was $1 million, consistent with the first quarter of the previous year [7][27] 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 [24] - In the Media and Technology (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 [24][25] - Professional services revenue decreased significantly, down 42% year over year, contributing $2.1 million for the quarter [22][23] Market Data and Key Metrics Changes - The company experienced a lower rate of new subscription bookings in Q1, which is typical for the season, but noted an increase in new logos from significant clients such as Stripe and Novo Nordisk [9][19] - The net dollar retention rate improved to 107%, the highest level since Q1 2022 [10][24] Company Strategy and Development Direction - The company aims to achieve double-digit revenue growth and a rule of 30 by 2028, focusing on profitable growth and expanding its AI capabilities [16][33] - Continued investment in AI is a priority, with enhancements to products like Genie agents to provide personalized experiences [10][12] - The company is gradually increasing its sales team after a previous reduction, focusing on enterprise customers while also looking to reaccelerate growth in the M&T and education sectors [44][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the uncertain macroeconomic environment, noting no significant negative feedback from customers regarding spending [36][40] - The company anticipates a rebound in gross retention rates in the second half of the year, following expected declines in the first half [19][31] - Despite a slower start to the year, the company maintains its revenue guidance for 2025 while slightly increasing its adjusted EBITDA guidance [20][28] Other Important Information - The company hosted its first annual investor event, showcasing its growth plans and AI-infused vision [16][17] - The company continues to receive recognition from leading analyst firms, including Gartner, for its innovative products [15] Q&A Session Summary Question: What are customers saying about their willingness to spend this year? - Management noted that there has been no negative impact reported from customers, who are focused on mid to long-term planning [36][40] Question: Where will new resources be allocated in the sales team? - The company plans to gradually increase sales resources, focusing on enterprise customers while also reaccelerating efforts in M&T and education [44][46] Question: What is the nature of the M&T churn expected? - Management indicated that the churn is primarily due to a few specific accounts exiting rather than a broader trend, with expectations for improved retention moving forward [51][52] Question: What is driving the higher ARR per customer? - The increase is attributed to customers using multiple products and upselling rather than just price increases [72] Question: Any updates on AI monetization strategy? - The company is optimistic about its AI products, with expectations to start monetizing these offerings in the coming quarters [76][77]