Core Insights - Kaltura has won five gold awards at the 2025 Eventex Awards, achieving recognition in every category it entered, highlighting its leadership in AI-driven digital events [1][2] - This marks the third consecutive year that Kaltura Events has received top honors, showcasing its continuous innovation in personalized and impactful digital engagement [2][5] Company Achievements - Kaltura Events is recognized for its all-in-one AI-powered platform that facilitates the creation, hosting, management, and promotion of webinars and virtual events [2][3] - The platform's real-time AI assistant and sentiment analysis features provide actionable insights to enhance attendee engagement [2][3] Key Innovations - The introduction of Kaltura Genie, an AI-powered agent, enhances event engagement by delivering hyper-personalized experiences and responding to attendee inquiries during hybrid events [3][4] - The AI-powered Content Lab identifies key moments from recorded events, generating highlight reels, chaptered summaries, and interactive video quizzes to maximize content ROI [4] Industry Context - The 15th edition of the Eventex Awards received a record 1239 entries from over 50 countries, indicating the growing creativity and innovation within the events industry [5][6] - Major brands such as Volvo, L'Oreal, and Netflix were among the winning entries, reflecting the competitive landscape of event technology [6]

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]

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 ...