"We delivered both record total revenues and subscription revenues in the first quarter, making it our sixth consecutive quarter of year-over-year growth. It was also our third consecutive quarter of Adjusted EBITDA profitability with significant year-over-year improvement in cash flows, demonstrating our progress towards achieving positive Adjusted EBITDA and Cash Flow from Operations for the full year of 2024,” said
First Quarter 2024 Financial Highlights:
- Revenue for the first quarter of 2024 was
$44.8 million , an increase of 3% compared to$43.3 million for the first quarter of 2023. - Subscription Revenue for the first quarter of 2024 was
$41.2 million , an increase of 2% compared to$40.4 million for the first quarter of 2023. - Annualized Recurring Revenue (ARR) for the first quarter of 2024 was
$162.7 million , an increase of 2% compared to$159.6 million for the first quarter of 2023. - GAAP Gross profit for the first quarter of 2024 was
$28.6 million , representing a gross margin of 64% compared to a GAAP gross profit of$27.3 million and gross margin of 63% for the first quarter of 2023. - Non-GAAP Gross profit for the first quarter of 2024 was
$29.0 million , representing a non-GAAP gross margin of 65%, compared to a non-GAAP gross profit of$27.7 million and non-GAAP gross margin of 64% for the first quarter of 2023. - GAAP Operating loss was
$7.3 million for the first quarter of 2024, compared to an operating loss of$12.0 million for the first quarter of 2023. - Non-GAAP Operating loss was
$0 .6 million for the first quarter of 2024, compared to a non-GAAP operating loss of$3 .5 million for the first quarter of 2023. - GAAP Net loss was
$11.1 million or$0.08 per diluted share for the first quarter of 2024, compared to a GAAP net loss of$12.8 million , or$0.09 per diluted share, for the first quarter of 2023. - Non-GAAP Net loss was
$4.4 million or$0.03 per diluted share for the first quarter of 2024, compared to a non-GAAP net loss of$4.4 million , or$0.03 per diluted share, for the first quarter of 2023. - Adjusted EBITDA was
$0 .6 million for the first quarter of 2024, compared to adjusted EBITDA of negative$2.7 million for the first quarter of 2023. Net Cash Used in Operating Activities was$1.1 million for the first quarter of 2024, compared to$7.4 million for the first quarter of 2023.
First Quarter 2024 Business Highlights:
- Closed one seven-digit deal and 12 six-digit deals (insurance, banking, tech, education, and media companies).
- Continued investment in AI: completed successful pilot with an enterprise customer for AI-content repurposing to create snippets and stackable moments from event content and videos; ramped up investment to further integrate content repurposing into our content management, webinars and event workflows and to expand our AI add-on for webinars and events with capabilities to automatically generate notifications and sentiment analysis for chat; started developing our own AI-powered Automatic Speech Recognition solution, with the goal of providing improved results and extended features.
- Received additional product recognitions and awards: named to G2’s 2024 Best Software Awards in the categories of best design software as a virtual event platform, and best education software, as well as the best virtual event platform in
North America award at the 2024 Innovation in Business MarTech Awards.
Financial Outlook:
For the second quarter of 2024,
- Subscription Revenue to be between
$39.6 million and$40.3 million . - Total Revenue to be between
$42.7 million and$43.5 million . - Adjusted EBITDA to be between negative
$0.6 million to positive$0.4 million .
For the full year ending
- Subscription Revenue to be between
$161.2 million and$164.2 million . - Total Revenue to be between
$173.7 million and$176.7 million . - Adjusted EBITDA to be in the range of
$0 million to$1 million .
The guidance provided above contains forward-looking statements and actual results may differ materially. Refer to “Forward-Looking Statements” below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.
Additional information on Kaltura’s reported results, including a reconciliation of the non-GAAP financial measures to their most comparable GAAP measures, is included in the financial tables below.
Conference Call
Time: | |||
1-877-407-0789 | |||
International Toll: | +1-201-689-8562 | ||
A live webcast will also be available in the Investor Relations section of Kaltura’s website at: https://investors.kaltura.com/news-and-events/events
A replay of the webcast will be available in the Investor Relations section of the company’s web site approximately two hours after the conclusion of the call and remain available for approximately 30 calendar days.
About
Kaltura’s mission is to power any video experience for any organization. Our Video Experience Cloud offers live, real-time, and on-demand video products for enterprises of all industries, as well as specialized industry solutions, currently for educational institutions and for media and telecom companies. Underlying our products and solutions is a broad set of Media Services that are also used by other cloud platforms and companies to power video experiences and workflows for their own products. Kaltura’s Video Experience Cloud is used by leading brands reaching millions of users, at home, at school and at work, for communication, collaboration, training, marketing, sales, customer care, teaching, learning, virtual events, and entertainment experiences.
Investor Contacts:
Chief Financial Officer
IR@Kaltura.com
Sapphire Investor Relations
+1 617 542 6180
IR@Kaltura.com
Media Contacts:
pr.team@kaltura.com
Headline Media
raanan@headline.media
+1 347 897 9276
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including but not limited to, statements regarding our future financial and operating performance, including our guidance; our business strategy, plans and objectives for future operations; our expectations regarding potential profitability and revenue growth; and general economic, business and industry conditions, including expectations with respect to trends in corporate spending.
In some cases, you can identify forward-looking statements by terminology such as “aim,” “anticipate,” “assume,” “believe,” “contemplate,” “continue,” “could,” “due,” “estimate,” “expect,” “goal,” “intend,” “may,” “objective,” “plan,” “predict,” “potential,” “positioned,” “seek,” “should,” “target,” “will,” “would” and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Any forward-looking statements contained herein are based on our historical performance and our current plans, estimates and expectations and are not a representation that such plans, estimates, or expectations will be achieved. These forward-looking statements represent our expectations as of the date of this press release. Subsequent events may cause these expectations to change, and we disclaim any obligation to update the forward-looking statements in the future, except as required by law. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially from our current expectations.
Important factors that could cause actual results to differ materially from those anticipated in our forward-looking statements include, but are not limited to, the current volatile economic climate and its direct and indirect impact on our business and operations; political, economic, and military conditions in
Non-GAAP Financial Measures
Key Financial and Operating Metrics
Annualized Recurring Revenue. We use Annualized Recurring Revenue (“ARR”) as a measure of our revenue trend and an indicator of our future revenue opportunity from existing recurring customer contracts. We calculate ARR by annualizing our recurring revenue for the most recently completed fiscal quarter. Recurring revenues are generated from SaaS and PaaS subscriptions, as well as term licenses for software installed on the customer's premises (“On-Prem”). For the SaaS and PaaS components, we calculate ARR by annualizing the actual recurring revenue recognized for the latest fiscal quarter. For the On-Prem components for which revenue recognition is not ratable across the license term, we calculate ARR for each contract by dividing the total contract value (excluding professional services) as of the last day of the specified period by the number of days in the contract term and then multiplying by 365. Recurring revenue excludes revenue from one-time professional services and setup fees. ARR is not adjusted for the impact of any known or projected future customer cancellations, upgrades or downgrades or price increases or decreases. The amount of actual revenue that we recognize over any 12-month period is likely to differ from ARR at the beginning of that period, sometimes significantly. This may occur due to new bookings, cancellations, upgrades or downgrades, pending renewals, professional services revenue, foreign exchange rate fluctuations and acquisitions or divestitures. ARR should be viewed independently of revenue as it is an operating metric and is not intended to be a replacement or forecast of revenue. Our calculation of ARR may differ from similarly titled metrics presented by other companies.
Net Dollar Retention Rate. Our Net Dollar Retention Rate, which we use to measure our success in retaining and growing recurring revenue from our existing customers, compares our recognized recurring revenue from a set of customers across comparable periods. We calculate our Net Dollar Retention Rate for a given period as the recognized recurring revenue from the latest reported fiscal quarter from the set of customers whose revenue existed in the reported fiscal quarter from the prior year (the numerator), divided by recognized recurring revenue from such customers for the same fiscal quarter in the prior year (denominator). For annual periods, we report Net Dollar Retention Rate as the arithmetic average of the Net Dollar Retention Rate for all fiscal quarters included in the period. We consider subdivisions of the same legal entity (for example, divisions of a parent company or separate campuses that are part of the same state university system) ,as well as Value-add Resellers (“VARs”) (meaning resellers that directly manage the relationship with the customer) and the customers they manage, to be a single customer for purposes of calculating our Net Dollar Retention Rate. Our calculation of Net Dollar Retention Rate for any fiscal period includes the positive recognized recurring revenue impacts of selling new services to existing customers and the negative recognized recurring revenue impacts of contraction and attrition among this set of customers. Our Net Dollar Retention Rate may fluctuate as a result of a number of factors, including the growing level of our revenue base, the level of penetration within our customer base, expansion of products and features, and our ability to retain our customers. Our calculation of Net Dollar Retention Rate may differ from similarly titled metrics presented by other companies.
Remaining Performance Obligations. Remaining Performance Obligations represents the amount of contracted future revenue that has not yet been delivered, including both subscription and professional services revenues. Remaining Performance Obligations consists of both deferred revenue and contracted non-cancelable amounts that will be invoiced and recognized in future periods. We expect to recognize 57% of our Remaining Performance Obligations as revenue over the next 12 months, and the remainder thereafter, in each case, in accordance with our revenue recognition policy; however, we cannot guarantee that any portion of our Remaining Performance Obligations will be recognized as revenue within the timeframe we expect or at all.
Consolidated Balance Sheets (
As of | ||||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 31,565 | $ | 36,684 | ||||
Marketable securities | 37,294 | 32,692 | ||||||
Trade receivables | 17,837 | 23,312 | ||||||
Prepaid expenses and other current assets | 8,298 | 8,410 | ||||||
Deferred contract acquisition and fulfillment costs, current | 10,426 | 10,636 | ||||||
Total current assets | 105,420 | 111,734 | ||||||
LONG-TERM ASSETS: | ||||||||
Marketable securities | 4,904 | 5,844 | ||||||
Property and equipment, net | 19,008 | 20,113 | ||||||
Other assets, noncurrent | 2,879 | 3,100 | ||||||
Deferred contract acquisition and fulfillment costs, noncurrent | 15,757 | 17,314 | ||||||
Operating lease right-of-use assets | 13,468 | 13,872 | ||||||
Intangible assets, net | 572 | 689 | ||||||
11,070 | 11,070 | |||||||
Total noncurrent assets | 67,658 | 72,002 | ||||||
TOTAL ASSETS | $ | 173,078 | $ | 183,736 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Current portion of long-term loans | $ | 2,066 | $ | 1,612 | ||||
Trade payables | 8,069 | 3,629 | ||||||
Employees and payroll accruals | 11,552 | 12,651 | ||||||
Accrued expenses and other current liabilities | 18,922 | 17,279 | ||||||
Operating lease liabilities | 2,413 | 2,374 | ||||||
Deferred revenue, current | 53,913 | 62,364 | ||||||
Total current liabilities | 96,935 | 99,909 | ||||||
NONCURRENT LIABILITIES: | ||||||||
Deferred revenue, noncurrent | 203 | 369 | ||||||
Long-term loans, net of current portion | 31,741 | 33,047 | ||||||
Operating lease liabilities, noncurrent | 16,996 | 17,796 | ||||||
Other liabilities, noncurrent | 2,067 | 2,295 | ||||||
Total noncurrent liabilities | 51,007 | 53,507 | ||||||
TOTAL LIABILITIES | $ | 147,942 | $ | 153,416 | ||||
STOCKHOLDERS' EQUITY: | ||||||||
Common stock | $ | 14 | $ | 14 | ||||
(4,881 | ) | (4,881 | ) | |||||
Additional paid-in capital | 478,292 | 471,635 | ||||||
Accumulated other comprehensive income | 302 | 1,047 | ||||||
Accumulated deficit | (448,591 | ) | (437,495 | ) | ||||
Total stockholders' equity | 25,136 | 30,320 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 173,078 | $ | 183,736 |
Consolidated Statements of Operations (
Three Months Ended | |||||||
2024 | 2023 | ||||||
(Unaudited) | |||||||
Revenue: | |||||||
Subscription | $ | 41,170 | $ | 40,392 | |||
Professional services | 3,611 | 2,881 | |||||
Total revenue | 44,781 | 43,273 | |||||
Cost of revenue: | |||||||
Subscription | 11,401 | 11,168 | |||||
Professional services | 4,772 | 4,819 | |||||
Total cost of revenue | 16,173 | 15,987 | |||||
Gross profit | 28,608 | 27,286 | |||||
Operating expenses: | |||||||
Research and development | 12,005 | 14,130 | |||||
Sales and marketing | 11,812 | 12,071 | |||||
General and administrative | 12,082 | 12,100 | |||||
Restructuring | — | 945 | |||||
Total operating expenses | 35,899 | 39,246 | |||||
Operating loss | 7,291 | 11,960 | |||||
Financial income, net | 1,497 | (1,785 | ) | ||||
Loss before provision for income taxes | 8,788 | 10,175 | |||||
Provision for income taxes | 2,308 | 2,620 | |||||
Net loss | $ | 11,096 | $ | 12,795 | |||
Net loss per share attributable to common stockholders, basic and diluted | $ | 0.08 | $ | 0.09 | |||
Weighted average number of shares used in computing basic and diluted net loss per share attributable to common stockholders | 144,253,660 | 135,087,949 |
Consolidated Statements of Operations (
Stock-based compensation included in above line items:
Three Months Ended | ||||||
2024 | 2023 | |||||
(Unaudited) | ||||||
Cost of revenue | $ | 285 | $ | 264 | ||
Research and development | 1,172 | 1,145 | ||||
Sales and marketing | 770 | 772 | ||||
General and administrative | 4,302 | 4,978 | ||||
Total | $ | 6,529 | $ | 7,159 |
Revenue by Segment (
Three Months Ended | ||||||
2024 | 2023 | |||||
(Unaudited) | ||||||
Enterprise, Education and Technology | $ | 32,440 | $ | 31,330 | ||
Media and Telecom | 12,341 | 11,943 | ||||
Total | $ | 44,781 | $ | 43,273 |
Gross Profit by Segment (
Three Months Ended | ||||||
2024 | 2023 | |||||
(Unaudited) | ||||||
Enterprise, Education and Technology | $ | 23,556 | $ | 22,789 | ||
Media and Telecom | 5,052 | 4,497 | ||||
Total | $ | 28,608 | $ | 27,286 |
Consolidated Statement of Cash Flows (
Three Months Ended | ||||||||
2024 | 2023 | |||||||
(Unaudited) | ||||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (11,096 | ) | $ | (12,795 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization | 1,305 | 1,009 | ||||||
Stock-based compensation expenses | 6,529 | 7,159 | ||||||
Amortization of deferred contract acquisition and fulfillment costs | 2,888 | 2,970 | ||||||
Non-cash interest expenses (income), net | (286 | ) | (224 | ) | ||||
Gain on foreign exchange | (325 | ) | (195 | ) | ||||
Changes in operating assets and liabilities: | ||||||||
Decrease in trade receivables | 5,475 | 10,553 | ||||||
Increase in prepaid expenses and other current assets and other assets, noncurrent | (560 | ) | (764 | ) | ||||
Increase in deferred contract acquisition and fulfillment costs | (1,067 | ) | (1,642 | ) | ||||
Increase (decrease) in trade payables | 4,447 | (1,450 | ) | |||||
Increase (decrease) in accrued expenses and other current liabilities | 1,654 | (37 | ) | |||||
Decrease in employees and payroll accruals | (1,099 | ) | (2,405 | ) | ||||
Increase (decrease) in other liabilities, noncurrent | (36 | ) | 406 | |||||
Decrease in deferred revenue | (8,617 | ) | (9,595 | ) | ||||
Operating lease right-of-use assets and lease liabilities, net | (358 | ) | (422 | ) | ||||
Net cash used in operating activities | (1,146 | ) | (7,432 | ) | ||||
Cash flows from investing activities: | ||||||||
Investment in available-for-sale marketable securities | (15,424 | ) | (2,924 | ) | ||||
Proceeds from maturities of available-for-sale marketable securities | 12,000 | 9,236 | ||||||
Purchases of property and equipment | (93 | ) | (852 | ) | ||||
Capitalized internal-use software | — | (380 | ) | |||||
Net cash provided by (used in) investing activities | (3,517 | ) | 5,080 | |||||
Cash flows from financing activities: | ||||||||
Repayment of long-term loans | (875 | ) | (1,500 | ) | ||||
Proceeds from exercise of stock options | 104 | 578 | ||||||
Payment of debt issuance costs | (10 | ) | — | |||||
Net cash used in financing activities | (781 | ) | (922 | ) | ||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 325 | 195 | ||||||
Net decrease in cash, cash equivalents and restricted cash | $ | (5,119 | ) | $ | (3,079 | ) | ||
Cash, cash equivalents and restricted cash at the beginning of the period | 36,784 | 45,833 | ||||||
Cash, cash equivalents and restricted cash at the end of the period | $ | 31,665 | $ | 42,754 |
Reconciliation from GAAP to Non-GAAP Results (
Three Months Ended | ||||||||
2024 | 2023 | |||||||
Reconciliation of gross profit and gross margin | ||||||||
GAAP gross profit | $ | 28,608 | $ | 27,286 | ||||
Stock-based compensation expense | 285 | 264 | ||||||
Amortization of acquired intangibles | 105 | 104 | ||||||
Non-GAAP gross profit | $ | 28,998 | $ | 27,654 | ||||
GAAP gross margin | 64 | % | 63 | % | ||||
Non-GAAP gross margin | 65 | % | 64 | % | ||||
Reconciliation of operating expenses | ||||||||
GAAP research and development expenses | $ | 12,005 | $ | 14,130 | ||||
Stock-based compensation expense | 1,172 | 1,145 | ||||||
Amortization of acquired intangibles | — | — | ||||||
Non-GAAP research and development expenses | $ | 10,833 | $ | 12,985 | ||||
GAAP sales and marketing | $ | 11,812 | $ | 12,071 | ||||
Stock-based compensation expense | 770 | 772 | ||||||
Amortization of acquired intangibles | 13 | 60 | ||||||
Non-GAAP sales and marketing expenses | $ | 11,029 | $ | 11,239 | ||||
GAAP general and administrative expenses | $ | 12,082 | $ | 12,100 | ||||
Stock-based compensation expense | 4,302 | 4,978 | ||||||
Amortization of acquired intangibles | — | — | ||||||
Facility exit and transition costs(b) | — | 154 | ||||||
War related costs(d) | 21 | — | ||||||
Non-GAAP general and administrative expenses | $ | 7,759 | $ | 6,968 | ||||
Reconciliation of operating income (loss) and operating margin | ||||||||
GAAP operating loss | $ | 7,291 | $ | 11,960 | ||||
Stock-based compensation expense | 6,529 | 7,159 | ||||||
Amortization of acquired intangibles | 118 | 164 | ||||||
Facility exit and transition costs (b) | — | 154 | ||||||
Restructuring (c) | — | 945 | ||||||
War related costs(d) | 21 | — | ||||||
Non-GAAP operating loss | $ | 623 | $ | 3,538 | ||||
GAAP operating margin | (16 | )% | (28 | )% | ||||
Non-GAAP operating margin | (1 | )% | (8 | )% | ||||
Reconciliation of net loss | ||||||||
GAAP net loss attributable to common stockholders | $ | 11,096 | $ | 12,795 | ||||
Stock-based compensation expense | 6,529 | 7,159 | ||||||
Amortization of acquired intangibles | 118 | 164 | ||||||
Facility exit and transition costs (b) | — | 154 | ||||||
Restructuring (c) | — | 945 | ||||||
War related costs(d) | 21 | — | ||||||
Non-GAAP net loss attributable to common stockholders | $ | 4,428 | $ | 4,373 | ||||
Non-GAAP net loss per share - basic and diluted | $ | 0.03 | $ | 0.03 |
Adjusted EBITDA (
Three Months Ended | |||||||
2024 | 2023 | ||||||
Net loss | $ | (11,096 | ) | $ | (12,795 | ) | |
Financial expenses (income), net (a) | 1,497 | (1,785 | ) | ||||
Provision for income taxes | 2,308 | 2,620 | |||||
Depreciation and amortization | 1,305 | 1,009 | |||||
EBITDA | (5,986 | ) | (10,951 | ) | |||
Non-cash stock-based compensation expense | 6,529 | 7,159 | |||||
Facility exit and transition costs (b) | — | 154 | |||||
Restructuring (c) | — | 945 | |||||
War related costs (d) | 21 | — | |||||
Adjusted EBITDA | $ | 564 | $ | (2,693 | ) |
(a) The three months ended
(b) Facility exit and transition costs for the three months ended
(c) The three months ended
(d) The three months ended
Reported KPIs
2024 | 2023 | |||||
( | ||||||
Annualized Recurring Revenue | $ | 162,713 | $ | 159,582 | ||
Remaining Performance Obligations | $ | 165,224 | $ | 167,425 |
Three Months Ended | |||||
2024 | 2023 | ||||
Net Dollar Retention Rate | 98 | % | 103% (a) |
(a) The Net Dollar Retention Rate for the three months ended
Source:
2024 GlobeNewswire, Inc., source