Summary
Kaltura reported first quarter 2024 total revenue of $44.8 million, up 3% from $43.3 million in the prior-year quarter. GAAP gross profit was $28.6 million, up 4.8% from $27.3 million. Gross margin was 63.9%, up from 63.1%. The company still posted a GAAP operating loss of $7.3 million, but that loss narrowed from $12.0 million a year earlier. GAAP net loss was $11.1 million, narrowed from $12.8 million. Operating margin was negative 16.3%, up from negative 27.6%. On a non-GAAP basis, gross profit was $29.0 million with a 65% gross margin, compared with $27.7 million and 64%. Non-GAAP operating loss was $0.6 million, compared with $3.5 million. Adjusted EBITDA was $0.6 million, compared with negative $2.7 million. That marks the third consecutive quarter of Adjusted EBITDA profitability, according to the press release.
Cash flow improved sharply. Operating cash flow was negative $1.1 million, up from negative $7.4 million in the prior-year quarter. Capital expenditures were $0.09 million, down from $0.85 million. Deferred revenue, current, was $53.9 million, up 6.8% from the prior-year quarter. Remaining performance obligations were $165.2 million, down 1.3% from $167.4 million. The company expects to recognize 57% of RPO as revenue over the next 12 months. Annualized recurring revenue was $162.7 million, up 2% from $159.6 million. Net Dollar Retention Rate was 98%, compared with 103% in the prior-year quarter.
Operational highlights included one seven-digit deal and 12 six-digit deals across insurance, banking, technology, education, and media companies. Kaltura continued to invest in AI. It completed a pilot with an enterprise customer for AI-content repurposing to create snippets and stackable moments from event content. It also ramped up investment to integrate content repurposing into content management, webinars, and event workflows. The company expanded its AI add-on for webinars and events with capabilities to automatically generate notifications and sentiment analysis for chat. It started developing its own AI-powered Automatic Speech Recognition solution. Kaltura received product recognitions, including G2's 2024 Best Software Awards for best design software as a virtual event platform and best education software, plus the best virtual event platform in North America award at the 2024 Innovation in Business MarTech Awards. Management said gross retention improved for a third consecutive quarter and forecasted sequential growth in bookings.
Guidance for the second quarter of 2024 calls for Adjusted EBITDA of negative $0.6 million to positive $0.4 million. For the full year 2024, Kaltura expects Adjusted EBITDA of $0 million to $1 million. The company aims for positive Adjusted EBITDA and cash flow from operations for the full year. Management said the guidance is based on current expectations relating to the macro-economic climate trends. Risks include the volatile economic climate, political, economic, and military conditions in Israel, the ability to retain customers and meet demand, the ability to achieve and maintain profitability, competition, risks from AI and machine learning models, cybersecurity threats, data privacy compliance, reliance on third parties, retention of key personnel, international operations, revenue mix and customer base, potential acquisitions, and the ability to generate or raise additional capital. The credit agreement requires a minimum Adjusted EBITDA and liquidity of at least $20.0 million. Kaltura was in compliance with these covenants as of March 31, 2024. It had no balance outstanding under its $25.0 million revolving credit facility and $34.1 million of borrowings outstanding under its term loan facility.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2024 | Q4 FY2023 | QoQ | Q1 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $44.8M | $44.5M | +0.7% | $43.3M | +3.5% |
| Gross profit | $28.6M | $28.6M | -0.1% | $27.3M | +4.8% |
| Gross margin | 63.9% | 64.4% | -0.5 pp | 63.1% | +0.8 pp |
| Research & development | $12.0M | $12.7M | -5.7% | $14.1M | -15.0% |
| Sales & marketing | $11.8M | $12.3M | -4.0% | $12.1M | -2.1% |
| General & administrative | $12.1M | $12.4M | -2.7% | $12.1M | -0.1% |
| Total operating expenses | $35.9M | $37.5M | -4.2% | $39.2M | -8.5% |
| Operating income (loss) | -$7.3M | -$8.8M | +17.3% | -$12.0M | +39.0% |
| Operating margin | -16.3% | -19.8% | +3.5 pp | -27.6% | +11.4 pp |
| Net income (loss) | -$11.1M | -$12.1M | +8.0% | -$12.8M | +13.3% |
| Net margin | -24.8% | -27.1% | +2.3 pp | -29.6% | +4.8 pp |
| Net retention rate | 98.0% | 100.0% | -2.0 pp | 102.0% | -4.0 pp |
Risks
The company's ability to access capital may be impacted by political, economic, and military conditions in Israel, including the current security situation or any escalation of conflicts with Israel. Q1 2024 also included $21 thousand of war-related costs tied to temporary relocation of key employees and emergency equipment.
Net Dollar Retention Rate was 98% for the three months ended March 31, 2024, down from 103% for the three months ended March 31, 2023, indicating contraction or attrition among existing customers. MD&A states the company must maintain engineering-level support and introduce new products to increase revenue within its customer base.
The filing cites current global economic volatility, rising inflation and interest rates, price increases, and decreased customer spend or available budget, along with the Russia-Ukraine conflict, as factors that have disrupted global financial markets and may reduce the company's ability to access capital. This could pressure liquidity if additional funds are needed.
The Credit Agreement requires maintenance of a minimum Consolidated Adjusted EBITDA and Liquidity of at least $20.0 million as of the last day of any calendar month, and contains restrictive covenants and default provisions that could accelerate the $34.1 million Term Loan Facility outstanding as of March 31, 2024. The company was in compliance as of March 31, 2024.
Remaining Performance Obligations were $165.2 million as of March 31, 2024, down 1.3% from $167.4 million as of March 31, 2023, which may signal a future revenue headwind. The company expects to recognize 57% of RPO as revenue over the next 12 months.
Media & Telecom gross margins have been negatively impacted by resources required for TV Solution and Media Services implementations, longer booking-to-go-live periods, and a higher proportion of professional services revenue. M&T gross margin was 41% for Q1 2024, though up from 38% in Q1 2023.
Cash and cash equivalents are maintained at financial institutions in amounts that exceed federally insured limits, and failure of any such institution could prevent timely access to uninsured funds. As of March 31, 2024, cash, cash equivalents, and restricted cash were $31.7 million.
General and administrative expenses included a $1.3 million one-time expense associated with terminating commitments with a cloud hosting service provider in Q1 2024. This may indicate vendor commitment risk or costs from changing cloud infrastructure arrangements.
SaaS KPIs
All quarters →Net Dollar Retention Rate
Remaining Performance Obligations
Annualized Recurring Revenue (ARR)
Adjusted EBITDA
Non-GAAP Gross Margin
Summary, forecast, risks and KPIs are extracted from KALTURA INC's SEC filings for Q1 FY2024 (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.