Summary
Kaltura's first quarter 2022 revenue increased 10.6% to $41.7 million from $37.7 million. Gross profit rose 18.7% to $26.3 million, and gross margin expanded to 63.0% from 58.7%. The top line and gross profit growth did not carry through to the bottom line. Operating loss widened to $14.7 million from $8.6 million. Net loss widened to $16.9 million from $15.6 million. Diluted loss per share narrowed to $0.13 from $0.73. On a non-GAAP basis, adjusted EBITDA was negative $8.4 million, compared with negative $1.3 million. Non-GAAP operating loss was $8.8 million, compared with $1.6 million. Non-GAAP net loss was $11.0 million, or $0.09 per diluted share, compared with $4.4 million, or $0.04 per diluted share.
The quarter included several operational pushes. Annualized recurring revenue was $147.7 million, up 15% from $128.6 million. Net Dollar Retention Rate was 107%, down from 116%. Remaining performance obligations stood at $171.2 million. Management expects to recognize 59% of that RPO as revenue over the next 12 months. The RPO balance consists of $50.5 million billed and $120.7 million unbilled. Kaltura continued to sell its Virtual Events solution for large flagship events and event services. It invested in its new Event Platform, which automates creation and management of enterprise events. The company expanded its sales pipeline for the Event Platform, including Fortune 100 and 500 companies. It also moved down-market by optimizing digital operations, advancing self-serve offerings, and ramping an inside sales team for transactional sales. In media and telecom, Kaltura expanded its product offering to mid-sized media companies with an end-to-end streaming platform that includes front-end user experience and monetization tools.
Guidance for the second quarter and full year is as follows. For the second quarter of 2022, Kaltura expects subscription revenue of $36.8 million to $37.6 million, representing 1% to 3% year-over-year growth. Total revenue is expected to be between $41,6 million and $42.4 million, representing 0% to 2% year-over-year growth. Adjusted EBITDA is expected to be negative in the range of $8.5 million to $11.5 million. For the full year ending December 31, 2022, the company expects subscription revenue of $159.5 million to $163.8 million, up 10% to 13% year-over-year. Total revenue is expected to be $173.3 million to $178.2 million, up 5% to 8% year-over-year. Full-year adjusted EBITDA is expected to be negative in the range of $27.0 million to $32.0 million. The company did not provide a quantitative reconciliation of forecasted adjusted EBITDA to forecasted GAAP net loss because it said certain reconciling items cannot be calculated with confidence without unreasonable efforts.
Cash generation remains the main pressure point. Net cash used in operating activities was $19.6 million, compared with $6.6 million. Capital expenditures were $0.44 million, down from $0.52 million. The current portion of deferred revenue was $48.8 million. Kaltura ended the quarter with no balance outstanding under its $35.0 million revolving credit facility and was in compliance with its financial covenants. Risks include the ongoing COVID-19 pandemic and its variants, the ability to manage and sustain growth, the ability to achieve and maintain profitability, customer retention, competition, reliance on third parties, retention of key personnel, and international operations. The Media and Telecom segment faces margin pressure from implementation resources, a higher proportion of professional services revenue, and customers who choose private cloud or on-premise deployments. The decline in Net Dollar Retention Rate to 107% from 116% also bears watching, because it measures the company's success in growing recurring revenue from existing customers.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2022 | Q4 FY2021 | QoQ | Q1 FY2021 | YoY |
|---|---|---|---|---|---|
| Revenue | $41.7M | $42.7M | -2.3% | — | — |
| Gross profit | $26.3M | $26.8M | -1.9% | — | — |
| Gross margin | 63.0% | 62.7% | +0.3 pp | — | — |
| Research & development | $14.9M | $13.3M | +11.6% | — | — |
| Sales & marketing | $14.6M | $13.8M | +5.6% | — | — |
| General & administrative | $11.4M | $12.0M | -4.9% | — | — |
| Total operating expenses | $40.9M | $39.2M | +4.4% | — | — |
| Operating income (loss) | -$14.7M | -$12.4M | -17.9% | — | — |
| Operating margin | -35.1% | -29.1% | -6.0 pp | — | — |
| Net income (loss) | -$16.9M | -$15.9M | -6.3% | — | — |
| Net margin | -40.6% | -37.3% | -3.3 pp | — | — |
| Diluted EPS | -$0.13 | — | — | — | — |
| Net retention rate | 107.0% | 118.0% | -11.0 pp | — | — |
Risks
New risk factor discloses exposure to export control, trade sanctions, and import laws, including enhanced U.S. and EU sanctions following the Russia-Ukraine conflict. The company has customer and third-party relationships in Russia, Belarus, and Ukraine, and sanctions could impair its ability to provide services to or receive payments from customers in Russia, with potential civil and criminal penalties for violations.
MD&A reports net cash used in operating activities increased by $13.0 million for the three months ended March 31, 2022 compared to the three months ended March 31, 2021, and net loss widened to $16.9 million from $15.6 million. The company relies on cash on hand and a $35.0 million revolving credit facility, and its credit agreement includes minimum ARR and $10 million liquidity covenants.
Net Dollar Retention Rate declined to 107% for the three months ended March 31, 2022 from 116% for the three months ended March 31, 2021, indicating slower expansion within the existing customer base. The company needs to maintain engineering-level support and introduce new products to continue increasing revenue from existing customers.
Although total gross margin rose to 63% for the three months ended March 31, 2022 from 59% for the three months ended March 31, 2021, professional services gross margin was (23)% versus (6)%. EE&T professional services gross profit decreased 192% to a gross loss of $(0.8) million, and M&T professional services gross loss was $(0.3) million.
SaaS KPIs
All quarters →Net Dollar Retention Rate
Annualized Recurring Revenue (ARR)
Adjusted EBITDA
Non-GAAP Operating Margin
Remaining Performance Obligations (RPO)
Summary, forecast, risks and KPIs are extracted from KALTURA INC's SEC filings for Q1 FY2022 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.