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]

Kaltura (KLTR) Q1 2025 Earnings Call May 08, 2025 08:00 AM ET Speaker0 Good morning, everyone, and welcome to the Kaltura First Quarter twenty twenty five Earnings Call. All material contained in the webcast is the sole property and copyright of Kaltura with all rights reserved. For opening remarks and introductions, I will now turn the call over to Ericka Mannion at Sapphire Investor Relations. Please go ahead, Ericka. Thank you, operator, and good morning. I am joined by Ron Yucatiel, Kaltura's Co Founder ...