Kaltura(US:KLTR)2021-08-18 17:29Financial Data and Key Metrics Changes - Total revenue for Q2 2021 was $41.6 million, up 45% year-over-year [11][46] - Subscription revenue reached $36.5 million, an increase of 46% from the prior year, representing 88% of total revenue [11][46] - Annual recurring revenue run rate grew to $145.4 million, up 46% year-over-year [11][47] - Net dollar retention rate increased to 121%, up from 105% one year ago [11][47] Business Line Data and Key Metrics Changes - Within the Enterprise, Education, and Technology (EET) segment, total revenue was $30.2 million, up 61% year-over-year [48] - Subscription revenue in the EET segment was $27.2 million, up 53% year-over-year [48] - In the Media & Telecom (M&T) segment, total revenue was $11.4 million, a 14% increase year-over-year [48] - Subscription revenue in the M&T segment was $9.3 million, up 28% year-over-year [48] Market Data and Key Metrics Changes - The company has over 1,000 customers across four markets, with significant representation in Enterprise, Education, and Technology [20] - The company reported strong traction in North America for EET deals and in EMEA for M&T deals [59] Company Strategy and Development Direction - The company plans to invest heavily in sales and marketing to drive revenue growth and expand its customer base [23][50] - Kaltura aims to go down market to cater to smaller customers, including SMEs, with new self-serve and low-touch products [24] - The company is focused on technology innovation, particularly in real-time video infrastructure and enhancing editing and personalization tools [36][37] Management's Comments on Operating Environment and Future Outlook - Management expressed excitement about the strong new business pipeline and the acceleration of the net dollar retention rate [54] - The company anticipates a deceleration in growth rates in the second half of the year but expects strong performance in recurring revenue [70][75] - Management noted that they have not seen a slowdown in demand and are optimistic about future growth driven by new products [80][81] Other Important Information - Gross profit for the quarter was $26 million, with a gross margin of 62% [49] - The company ended the quarter with $29.8 million in cash and short-term investments [52] - Adjusted EBITDA was negative $1 million, decreasing from $3.3 million in Q2 2020 [51] Q&A Session Summary Question: What is driving the strong growth in the EET segment? - Management noted that the strong growth is driven by new products such as virtual events, webinars, and virtual classrooms, with a balanced contribution from new logos and upsells [56][58] Question: What is the outlook for net retention rate? - Management indicated that the net dollar retention rate has improved to 121% and expects continued growth in usage and users across various segments [63][65] Question: Is there any moderation in demand due to COVID-19? - Management stated that they have not seen a slowdown in demand and continue to see strong renewals for virtual events and other products [80][84] Question: How does the company view profitability in the coming years? - Management expressed confidence in returning to profitability in the next couple of years, supported by improving gross margins and a decrease in non-recurring revenue [90][92]