• Total Revenue: USD45.6 million for Q4 2024, up 3% year over year.
• Subscription Revenue: USD43.4 million for Q4 2024, up 6% year over year.
• Adjusted EBITDA: USD2.7 million for Q4 2024, marking the sixth consecutive quarter of profitability.
• Cash Flow from Operations: USD4.3 million for Q4 2024.
• Gross Margin: 71% for Q4 2024, up from 64% in Q4 2023.
• Net Dollar Retention Rate: 103% for Q4 2024.
• Annualized Recurring Revenue (ARR): USD173.9 million, up 6% year over year.
• GAAP Net Loss: USD6.6 million for Q4 2024, or USD0.04 per diluted share.
• Full Year 2024 Total Revenue: USD178.7 million, up 2% year over year.
• Full Year 2024 Subscription Revenue: USD167.7 million, up 3% year over year.
• Full Year 2024 Adjusted EBITDA: USD7.3 million, up from USD2.5 million in 2023.
• Full Year 2024 GAAP Net Loss: USD31.3 million, or USD0.21 per diluted share.
• Cash and Marketable Securities: USD84.7 million at the end of Q4 2024.
• Full Year 2024 Cash Flow from Operations: USD12.2 million, an improvement from negative USD8.3 million in 2023.

• Warning! GuruFocus has detected 2 Warning Sign with KLTR.

Release Date: February 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Kaltura Inc (NASDAQ:KLTR) reported record total revenue of USD45.6 million for Q4 2024, up 3% year over year, with subscription revenue reaching USD43.4 million, up 6% year over year.
• The company achieved record ARR for the third consecutive quarter and record RPO for the second consecutive quarter, indicating strong top-line performance.
• Adjusted EBITDA was USD2.7 million for Q4 2024, marking the sixth consecutive quarter of adjusted EBITDA profitability and the highest quarterly result in four years.
• Kaltura Inc (NASDAQ:KLTR) launched new AI-infused offerings, 'Class Genie' and 'Work Genie', aimed at enhancing personalized learning experiences in education and enterprise sectors.
• The company reported strong interest in its AI beta program from large organizations, including top universities and Fortune 500 companies, indicating potential for future growth.

Negative Points

• Professional services revenue for Q4 2024 was down 40% year over year, consistent with expected trends.
• The net dollar retention rate for 2024 was 100%, a slight decline from 101% in 2023, primarily due to lower bookings and gross retention levels in 2023.
• GAAP net loss for Q4 2024 was USD6.6 million, although this was an improvement of USD5.5 million year over year.
• The company anticipates a sequential revenue decline in Q2 2025 due to typical lower bookings in Q1 and disproportionate recognition of on-prem revenue.
• Kaltura Inc (NASDAQ:KLTR) is cautious with its revenue guidance for 2025, considering potential macroeconomic impacts and FX fluctuations.

Q & A Highlights

Q: Can you elaborate on the on-premise commentary for Q1 and its impact on revenue? A: Ron Yekutiel, CEO, explained that on-premise revenue, which represents less than 5% of total revenue, is recognized fully in the quarter it occurs, unlike subscription revenue. This can cause fluctuations, such as a sequential decline from Q1 to Q2, due to the timing of renewals and bookings, which are typically stronger in Q4 and Q2.

Q: How does Kaltura plan to monetize AI opportunities, and what impact do you expect from AI features? A: Ron Yekutiel highlighted that Kaltura is well-positioned to capitalize on AI due to its extensive content management capabilities. The company has launched AI content lab and Genie AI services to enhance content creation and personalization. These innovations are expected to significantly increase video consumption and engagement, providing substantial growth opportunities.

Q: What are Kaltura's priorities for 2025, and how do they differ from last year? A: Ron Yekutiel emphasized five growth areas: market regrowth, consolidation around Kaltura's platform, maturity of new products, AI-driven personalization, and expansion within existing customer bases. The company aims to capitalize on these areas while maintaining a focus on profitability and growth.

Q: How are customers responding to AI, and is it more of a push or pull from them? A: Ron Yekutiel noted that customer interest in AI is strong, with many organizations exploring how AI can enhance their operations. While some customers are still in the exploratory phase, Kaltura is positioned as a strategic partner to help them leverage AI effectively.

Q: Does Kaltura need improved market conditions to achieve its rule of 30 goal by 2028? A: Ron Yekutiel stated that Kaltura is already on track to achieve its goals without relying on improved market conditions. The company has shown consistent growth and profitability, and plans to continue expanding its sales force to capture more opportunities.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.