Kaltura(US:KLTR)2023-05-13 10:38Financial Data and Key Metrics Changes - Total revenue for Q1 2023 was $43.3 million, up 4% year-over-year, while subscription revenue was $40.4 million, up 9% year-over-year [19][29] - Adjusted EBITDA for the quarter was negative $2.7 million, improving from a negative $8.4 million in Q1 2022 [57] - Cash consumption from operations was reduced to $7.4 million compared to $19.6 million in Q1 2022 [11][31] Business Line Data and Key Metrics Changes - Within the EE&T segment, total revenue was $11.9 million, flat year-over-year, with subscription revenue up 12% year-over-year [30] - Professional services revenue decreased by 39% year-over-year, contributing $2.9 million [29] - Annualized recurring revenue was $159.6 million, up 8% year-over-year, with a net dollar retention rate of 102% [56][85] Market Data and Key Metrics Changes - The sales pipeline is growing with increased opportunities across all sectors, indicating a positive trend in new bookings [23] - The company noted a shift in customer behavior towards consolidating around a single vendor, which is particularly appealing in the current financial environment [22] Company Strategy and Development Direction - The company is focused on returning to profitable growth, aiming for a single-digit adjusted EBITDA loss in 2023 and positive adjusted EBITDA in 2024 [20][33] - Kaltura is enhancing its product offerings, including the launch of a front-end TV application and advanced capabilities for events and webinars [24][25] - The strategy includes consolidating services to reduce complexities and improve customer engagement through a unified platform [49] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the rest of 2023, noting early indicators of improved market demand despite ongoing industry headwinds [26][59] - The company anticipates that most cash flow from operations burn for the year has already occurred, with expectations for breakeven in cash flow from operations in 2024 [27][33] Other Important Information - The company is planning to boost marketing activities with a series of physical industry events in major cities [14] - The company is committed to leveraging AI to enhance video content creation and distribution, viewing it as a significant opportunity for future growth [87][88] Q&A Session Summary Question: Improvements in sales productivity - Management indicated that improvements in sales productivity are due to both market conditions and internal actions, with higher booking rates compared to previous quarters [35][36] Question: Any drop-off in bookings in March - Management confirmed that there was no significant drop-off in bookings in March, and the quarter's performance was in line with expectations [44][72] Question: Success on the consolidation front - Management noted that the low-touch sales efforts are just beginning and are expected to contribute more significantly in 2024 [77][78] Question: Expectations for investment pace this year - Management stated that the cost reduction measures implemented earlier in the year are expected to continue benefiting the bottom line throughout 2023 [81][82] Question: Net dollar retention and gross retention changes - Management clarified that the increase in net dollar retention was not due to any outlier deals, and gross retention remains stable [85][132]