Summary
Kaltura closed fiscal 2021 with fourth quarter revenue of $42.7 million, up 21.4% from $35.2 million in the prior year quarter. Full year revenue reached $165.0 million, up 37.0% from $120.4 million. The company's Annualized Recurring Revenue was $150.8 million, up 29% from $116.6 million in 2020. Net Dollar Retention Rate was 120%, up from 103% in the fourth quarter of 2020. Management highlighted two product releases: a new version of the events platform and redesigned self-serve purchase flows for Webinars, Virtual Classroom, and Media Services. The company also reported 75% year-over-year growth in customers with over $1 million in ARR and 25% growth in customers with over $100,000 in ARR.
Profitability showed a split. GAAP gross profit for the fourth quarter was $26.8 million, up 26.1% from $21.2 million, and gross margin rose to 62.7% from 60.4%. For the full year, gross profit was $102.7 million, up 41.1% from $72.8 million, with gross margin of 62.2% compared with 60.4%. Operating losses widened sharply. The fourth quarter operating loss was $12.4 million versus $1.3 million a year earlier, and the full year operating loss was $32.7 million versus $8.5 million. Operating margin fell to negative 29.1% in the quarter from negative 3.6%, and to negative 19.8% for the full year from negative 7.0%. Net loss for the fourth quarter was $15.9 million, narrower than the $36.3 million loss in the prior year quarter. For the full year, net loss was $59.4 million, slightly wider than the $58.8 million loss in 2020. Diluted EPS for the full year was $0.95, down from $2.83.
Non-GAAP results also deteriorated. Non-GAAP gross profit was $27.1 million in the fourth quarter, compared with $21.5 million, and non-GAAP gross margin was 63% versus 61%. Non-GAAP operating loss was $8.1 million in the quarter, compared with non-GAAP operating income of $1.3 million a year earlier. Adjusted EBITDA was negative $7.7 million in the fourth quarter, compared with positive $1.5 million. For the full year, Adjusted EBITDA was negative $12.2 million, compared with positive $4.3 million. Non-GAAP net loss was $11.6 million, or $0.09 per diluted share, compared with $2.3 million, or $0.02 per diluted share.
Cash generation turned negative. Operating cash flow was negative $10.7 million in the fourth quarter, compared with positive $4.1 million in the prior year quarter. For the full year, operating cash flow was negative $22.1 million, compared with positive $5.8 million. Capital expenditures were $0.3 million in the fourth quarter, down 27.8% from $0.4 million, and $1.9 million for the full year, up 67.8% from $1.1 million. Deferred revenue, current portion, was $51.7 million, up 8.4% from $47.7 million. Remaining performance obligations stood at $185.5 million.
Guidance points to slower growth and continued losses. For the first quarter of 2022, Kaltura expects subscription revenue to grow 12% to 15% year-over-year and total revenue to grow 5% to 8% year-over-year. Adjusted EBITDA is expected to be negative in the range of $9 million to $12 million. For the full year 2022, subscription revenue is guided to grow 10% to 13% and total revenue 5% to 8%. Adjusted EBITDA is guided to negative $27 million to $32 million. The company has not provided a quantitative reconciliation of forecasted Adjusted EBITDA to forecasted GAAP net loss.
Risks remain. The company cites the ongoing COVID-19 pandemic and its variants, its ability to manage and sustain rapid growth, achieve and maintain profitability, retain customers, keep pace with technological and competitive developments, and reliance on third parties. It also notes risks related to international operations. Under its credit agreement, Kaltura must maintain a minimum Annualized Recurring Revenue and liquidity of at least $10 million as of the last day of any calendar month. The company was in compliance with these covenants as of December 31, 2021. The revolving credit facility has a total commitment of $35.0 million available for future borrowings. Purchase obligations due in less than one year total $13.4 million.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2021 | Q3 FY2021 | QoQ | Q4 FY2020 | YoY |
|---|---|---|---|---|---|
| Revenue | $42.7M | $43.0M | -0.6% | — | — |
| Gross profit | $26.8M | $27.8M | -3.8% | — | — |
| Gross margin | 62.7% | 64.7% | -2.0 pp | — | — |
| Research & development | $13.3M | $12.4M | +7.8% | — | — |
| Sales & marketing | $13.8M | $11.3M | +23.0% | — | — |
| General & administrative | $12.0M | $10.1M | +19.5% | — | — |
| Total operating expenses | $39.2M | $33.7M | +16.4% | — | — |
| Operating income (loss) | -$12.4M | -$5.9M | -111.7% | — | — |
| Operating margin | -29.1% | -13.7% | -15.4 pp | — | — |
| Net income (loss) | -$15.9M | -$25.1M | +36.7% | — | — |
| Net margin | -37.3% | -58.5% | +21.2 pp | — | — |
| Net retention rate | 118.0% | 117.0% | +1.0 pp | — | — |
Risks
The company identified a material weakness in internal control over financial reporting related to fair value estimation for stock-based compensation and warrant remeasurement, leading to restated consolidated financial statements. Remediation is not complete, and failure to remediate could cause inaccurate or delayed financial reporting.
The market is nascent and highly fragmented, with competitors including Microsoft/Azure Media Services, Amazon/AWS Media Services, Twilio, Zoom, Cisco, and Vimeo. Competition has intensified with COVID-19 and new market entrants, and many competitors have greater financial, technical, and marketing resources.
Top ten customers accounted for approximately 31.0% of revenue for the year ended December 31, 2021, and Vodafone and Amazon continued to contribute significant portions of overall revenue. Loss of one or more significant customers or reduced spending would adversely affect results.
A version of Media Services, Kaltura Community Edition, is licensed under AGPL, allowing free internal use and enabling competitors to develop competing software. This could reduce demand and put pricing pressure on offerings.
Revenue grew 37% to $165.0 million for the year ended December 31, 2021, placing strain on management, operational, and financial resources. Failure to manage growth or improve systems and controls could harm results and forecasting.
The accelerated move from owned data centers to public cloud infrastructure increased cost of revenue and contributed to lower gross margins, and the company experienced unstable service that fell below service-level commitments, potentially impacting renewals and Net Dollar Retention Rate.
Media & Telecom offerings generally take six to 12 months to implement, with upfront resources exceeding other offerings, resulting in a longer period from initial booking to go-live and a higher proportion of professional services revenue. This can pressure margins and cash flow.
The Credit Agreement contains financial covenants, including a minimum Annualized Recurring Revenue covenant and minimum Liquidity of at least $10 million, and the Term Loan Facility matures in January 2024. Failure to comply could accelerate borrowings and harm liquidity.
The ongoing COVID-19 pandemic and its variants could adversely affect business, and the demand acceleration experienced beginning in the second quarter of 2020 may not continue. Economic downturns could decrease technology spending and demand.
Success depends on interoperability with third-party platforms and APIs. Competitors may modify products or restrict access, degrading functionality or increasing costs, which could reduce customer demand.
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 Q4 FY2021 (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.