Release Date: November 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Kaltura Inc (KLTR, Financial) reported a total revenue of $44.3 million for Q3 2024, marking a 2% year-over-year increase.
- The company achieved record subscription revenue of $42.1 million, up 3% year-over-year.
- Kaltura Inc (KLTR) posted its fifth consecutive quarter of adjusted EBITDA profitability, with a record gross margin.
- The company generated a record cash flow from operations of $10.7 million, a significant improvement from $1.7 million in Q3 2023.
- Kaltura Inc (KLTR) increased its full-year revenue and adjusted EBITDA guidance, expecting positive cash flow from operations for the full year 2024.
Negative Points
- Professional services revenue decreased by 18% year-over-year, consistent with expected trends.
- The media and telecom segment saw a 4% year-over-year decrease in total revenue.
- Despite improvements, the net dollar retention rate was only 101%, indicating room for further growth.
- The company experienced a GAAP net loss of $3.6 million for the quarter.
- Kaltura Inc (KLTR) acknowledged slower revenue growth due to post-COVID and economic downturn headwinds.
Q & A Highlights
Q: Ron, can you comment on the factors driving incremental stability in Kaltura's business now, relative to the efforts over the last 4 to 6 quarters?
A: Ron Yekutiel, CEO, explained that the industry is gradually turning around, and Kaltura has been outperforming. The company has seen increased demand and success in delivering against that demand. He highlighted the highest new bookings since Q4 2022, with significant deals and customer consolidation around Kaltura's solutions.
Q: John, as this is your first year with Kaltura for the annual planning process, can you share your framework for 2025 forecasting?
A: John Doherty, CFO, mentioned that the company will provide detailed guidance in February. He emphasized the focus on customer profitability and operating efficiency, which has led to improved revenue growth and profitability. The company expects a modestly improving growth and profitability profile for 2025.
Q: What does the pipeline for new customers look like, and how important is it for sustaining growth?
A: Ron Yekutiel noted that while upselling to existing customers has been a core focus, the pipeline for new logos is active and expected to grow. Many potential customers are considering switching to Kaltura for better solutions and cost savings, and the company anticipates this will fuel growth.
Q: Are there any changes implemented by the new leaders in product and sales roles that we should be aware of?
A: Ron Yekutiel stated that while the leaders are not new to the company, they are focusing on doubling down on existing initiatives. The company is pushing forward aggressively on AI developments and verticalizing sales efforts to expand globally.
Q: Can you unpack some of the customer applications in the tech vertical and their value?
A: Ron Yekutiel explained that Kaltura offers a wide array of products and use cases, including video content management, events and webinars, virtual classrooms, and media and telecom solutions. These cater to both internal and external needs, providing unified systems for communication, collaboration, and training, which save costs and enhance content utilization.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
