Kaltura (NasdaqGS:KLTR) Q3 2025 Earnings Call November 10, 2025 05:00 PM ET Company ParticipantsRon Yekutiel - Chairman, President and CEOJohn Doherty - CFOErica Mannion - Head of Investor RelationsConference Call ParticipantsRyan Koontz - Managing Director and Research AnalystD.J. Hynes - Managing Director and Senior AnalystOperatorGood afternoon, everyone, and welcome to the Kaltura Third Quarter 2025 Earnings Call. All material contained in the webcast is the sole property and copyright of Kaltura, with ...

Kaltura (NasdaqGS:KLTR) Q3 2025 Earnings Call November 10, 2025 05:00 PM ET Company ParticipantsRon Yekutiel - Chairman, President and CEOJohn Doherty - CFOErica Mannion - Head of Investor RelationsConference Call ParticipantsRyan Koontz - Managing Director and Research AnalystD.J. Hynes - Managing Director and Senior AnalystOperatorGood afternoon, everyone, and welcome to the Kaltura Third Quarter 2025 earnings call. All material contained in the webcast is the sole property and copyright of Kaltura, with ...

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $43.9 million, down 1% year-over-year, but above the guidance range of $42.8 million to $43.6 million [33] - Subscription revenue was $42 million, flat year-over-year, exceeding the guidance range of $40.8 million to $41.6 million [33] - Adjusted EBITDA reached a record $4.2 million, marking the ninth consecutive quarter of profitability, up 72% from $2.4 million in Q3 2024 [38] - Non-GAAP net profit was $2 million, an improvement of $2 million year-over-year [38] - Cash flow from operations was $9.3 million, consistent with forecasts for strong cash flow in the second half of the year [5] Business Line Data and Key Metrics Changes - The EE&T segment generated total revenue of $32.4 million, a slight increase year-over-year, with subscription revenue up 1% to $31.8 million [36] - The M&T segment saw total revenue of $11.5 million, down 4% year-over-year but up 3% sequentially [37] - Professional services revenue contributed $1.9 million, down 14% year-over-year, consistent with previous trends [33] Market Data and Key Metrics Changes - New subscription bookings included 12 six-digit deals with notable new customers from various sectors, indicating a diverse market presence [20] - The gross retention rate in EE&T remained strong, while M&T's gross retention rate improved sequentially but was still lower than usual [21] Company Strategy and Development Direction - The company announced the acquisition of ESOF.ai, aiming to enhance its capabilities in AI-driven immersive virtual agents and video content creation [6][10] - The strategic shift is from being a video company to a rich media-powered, AI-infused customer and employee experience company [9][16] - The company plans to integrate ESOF's technology into its existing offerings, expanding its target market to include small and medium businesses [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, forecasting a sequential increase in total revenue for Q4 2025 and continued growth in adjusted EBITDA [28][44] - The company anticipates a strong pipeline of new bookings in Q4, driven by customer consolidation and the maturity of newer products [27][40] - Management acknowledged challenges in the macroeconomic environment but remains focused on operational efficiency and strategic growth [40] Other Important Information - The company repurchased 14.4 million shares from Goldman Sachs at a 25% discount, representing 9.2% of outstanding shares [18] - Following the share repurchase and ESOF acquisition, the company expects to end the year with approximately $60 million in gross cash [19] Q&A Session Summary Question: Thoughts on the investments for the new product and integration timeline - Management indicated that the focus is on long-term strategic value rather than immediate results, with a realistic timeline for product integration [48] Question: Signs of increased adoption of AI technologies - There is growing interest in utilizing AI products like Genie and ContentLab, with several deals closed in Q3 [58] Question: Delays in revenue recognition with two customers - The delays are due to customer-related issues, not Kaltura's delivery, and are expected to resolve in Q4 [62]