Summary
Kaltura's second quarter of fiscal 2024 showed a business that is stabilizing but still not growing quickly. Revenue was $44.0 million, flat compared with the prior-year quarter. Gross profit was $28.7 million, also flat. Gross margin was 65.1%, flat. The company reported an operating loss of $8.6 million, an improvement from the prior-year quarter. Net loss was $10.0 million, and diluted EPS was -$0.07, both narrower than the prior-year quarter. Operating cash flow was negative $1.6 million, an improvement. Deferred revenue was $55.5 million, down 2.8%. Remaining performance obligations were $177.8 million, up 2.0%. Capital expenditures were $0.23 million, down 68.3%. Operating margin was -19.4%, up 2.4 percentage points. For the first six months of fiscal 2024, revenue was $88.8 million, up 1.9%. Gross profit was $57.3 million, up 2.5%. Operating loss was $15.8 million, and net loss was $21.1 million, both narrower. Diluted EPS was -$0.14, also narrower. Operating cash flow was negative $2.8 million, an improvement. Capital expenditures were $0.3 million, down 79.4%. Gross margin was 64.5%, up 0.4 percentage points. Operating margin was -17.8%, up 6.9 percentage points.
Operational metrics were mixed. Annualized recurring revenue reached $165.2 million, up 1%. Net dollar retention rate was 98%, down from 100% in the prior-year quarter. The company closed 23 six-digit deals across banking, government, pharma, tech, education, and media telecom. New bookings were the highest since the fourth quarter of 2022. Gross retention was the same as the first quarter and better than each quarter of 2023. Kaltura launched several AI product enhancements, including automatic speech recognition, an email notification engine, real-time sentiment analysis, a quiz generator, and noise cancellation. It also won awards for its virtual event platform and hosted Kaltura Connect on the Road events.
Guidance points to modest expectations. For the third quarter of 2024, Kaltura expects subscription revenue to decline 1% to grow 1% year over year, total revenue to be flat to down 2% year over year, and adjusted EBITDA between negative $0.3 million and $0.7 million. For the full year 2024, the company expects subscription revenue to be flat to up 2% year over year, total revenue to be flat to up 1% year over year, and adjusted EBITDA between $2.0 million and $3.0 million. Management reaffirmed plans to achieve positive cash flow from operations in 2024.
The quarter also carried clear risks. Net dollar retention below 100% means existing customers are spending slightly less. Deferred revenue declined 2.8%, which can signal softer billings or renewals. The company still runs GAAP operating and net losses. It faces a volatile economic climate, political and military conditions in Israel, and the need to retain customers and achieve profitability. Other risks include competition, technological change, AI and machine learning model risks, cybersecurity threats, data privacy compliance, reliance on third parties, and international operations. Kaltura's credit agreement includes financial covenants, and it was in compliance as of June 30, 2024.
Adjusted EBITDA was $1.6 million, the fourth consecutive quarter of profitability on that measure. The company is trying to balance cost discipline with growth. The main question is whether new bookings and AI products can lift revenue growth while losses narrow. The full-year outlook suggests only slight top-line expansion, so execution on renewals and new deals will matter. Operating cash flow improved and capital expenditures fell, which shows some progress. The company must still prove it can turn sustained bookings into faster revenue growth.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2024 | Q1 FY2024 | QoQ | Q2 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $44.0M | $44.8M | -1.7% | $43.9M | +0.3% |
| Gross profit | $28.7M | $28.6M | +0.2% | $28.6M | +0.3% |
| Gross margin | 65.1% | 63.9% | +1.2 pp | 65.2% | -0.1 pp |
| Research & development | $12.0M | $12.0M | +0.2% | $13.0M | -7.3% |
| Sales & marketing | $11.8M | $11.8M | -0.3% | $12.7M | -7.5% |
| General & administrative | $13.4M | $12.1M | +11.0% | $12.4M | +7.9% |
| Total operating expenses | $37.2M | $35.9M | +3.7% | $38.2M | -2.5% |
| Operating income (loss) | -$8.6M | -$7.3M | -17.3% | -$9.6M | +10.6% |
| Operating margin | -19.4% | -16.3% | -3.1 pp | -21.8% | +2.4 pp |
| Net income (loss) | -$10.0M | -$11.1M | +9.8% | -$10.8M | +7.2% |
| Net margin | -22.7% | -24.8% | +2.1 pp | -24.6% | +1.8 pp |
| Diluted EPS | -$0.07 | — | — | -$0.08 | +$0.01 |
| Net retention rate | 98.0% | 98.0% | ±0.0 pp | 100.0% | -2.0 pp |
Risks
Net Dollar Retention Rate declined to 98% for the three months ended June 30, 2024 from 100% for the three months ended June 30, 2023, and EE&T revenue decreased 1% in the quarter mainly due to a $1.5 million decrease from existing customers primarily from downgrades.
Annualized Recurring Revenue grew only 1% in the three months ended June 30, 2024 compared to the three months ended June 30, 2023, while total revenue was flat in the quarter and up 1.9% year to date.
The company may need additional funds and cites global economic volatility, rising inflation and interest rates, reduced customer spend, the Russia-Ukraine conflict, and Israel conditions as factors that could reduce access to capital; the Credit Agreement requires minimum Consolidated Adjusted EBITDA and Liquidity of at least $20.0 million monthly, with $33.7 million outstanding under the Term Loan Facility as of June 30, 2024.
Political, economic, and military conditions in Israel, including the current security situation or escalation of conflicts, may impact capital access and operations; the six months ended June 30, 2024 included $22 thousand of war related costs for temporary relocation of key employees, emergency equipment, and charitable donations.
Deferred revenue, current portion, decreased 2.8% to $55.46 million as of June 30, 2024 from $57.07 million as of June 30, 2023, and operating cash flow for the six months ended June 30, 2024 included a $7.2 million decrease in deferred revenue.
Media & Telecom gross margin was 44% for the three months ended June 30, 2024, with professional services gross loss of $0.4 million; implementation resources for TV Solution and Media Services exceed other offerings, and near to medium term margins are expected to vary based on new customer onboarding and usage timing.
General and administrative expenses increased 8% to $13.4 million for the three months ended June 30, 2024, primarily due to a $1.4 million compensation increase from acceleration of expenses associated with cancellation of unvested market-based equity awards granted to the CEO; the six months ended June 30, 2024 also included $1.3 million of unused cloud hosting commitment expense.
Cash and cash equivalents are maintained at financial institutions in amounts that exceed federally insured limits, and there can be no assurance the company will access uninsured funds in a timely manner or at all if those institutions fail.
SaaS KPIs
All quarters →Net Dollar Retention Rate
Remaining Performance Obligations
Annualized Recurring Revenue (ARR)
Non-GAAP Operating Margin
Summary, forecast, risks and KPIs are extracted from KALTURA INC's SEC filings for Q2 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 1, 2026.