Summary
Kaltura closed fiscal 2024 with fourth quarter revenue of $45.6 million, up 2.5% from $44.5 million a year earlier. Gross profit rose 12.7% to $32.3 million, and gross margin improved to 70.8% from 64.4%. The company reported an operating loss of $3.8 million, narrower than the $8.8 million operating loss in the prior-year quarter. Net loss was $6.6 million, narrower than $12.1 million. Operating cash flow was $4.3 million, up from $1.6 million. Capital expenditures were $0.1 million, down from $0.8 million. Deferred revenue, current portion, was $63.1 million, up 1.2% from a year earlier. Remaining performance obligations were $203.4 million, up 9.8%.
For the full year, revenue was $178.7 million, up 2.0% from $175.2 million. Gross profit was $119.1 million, up 6.1%, and gross margin was 66.6% compared with 64.1%. The full-year operating loss was $24.1 million, narrower than $38.7 million. Net loss was $31.3 million, narrower than $46.4 million. Diluted EPS was -$0.21 compared with -$0.34. Operating cash flow was $12.2 million compared with negative $8.3 million. Capital expenditures were $0.5 million, down from $2.6 million. Operating margin was -13.5% compared with -22.1%.
Operational metrics showed improvement. Annualized recurring revenue was $173.9 million, up 6% from $164.7 million. Net dollar retention rate was 103%, compared with 98% a year earlier. Kaltura closed four new seven-digit deals and twenty-nine six-digit deals, the highest combined number since the third quarter of 2022. New subscription bookings reached the highest level since the fourth quarter of 2022, marking the third quarter in a row of sequential and year-over-year growth. The company launched Gen AI based Class Genie and Work Genie. Its Media and Telecom Gen AI features for streaming services earned a place in the FEED Magazine 2024 Honors List. Adjusted EBITDA was $2.7 million for the fourth quarter, compared with $0.8 million a year earlier. Full-year Adjusted EBITDA was $7.3 million, compared with negative $2.5 million. Non-GAAP operating income was $1.5 million for the fourth quarter, compared with a non-GAAP operating loss of $0.3 million. Non-GAAP net loss was $1.3 million, compared with $3.6 million.
Guidance for the first quarter of 2025 calls for subscription revenue to grow 5% to 7% year over year to between $43.4 million and $44.2 million. Total revenue is expected to grow 2% to 4% to between $45.7 million and $46.5 million. Adjusted EBITDA is guided to $2.5 million to $3.5 million. For the full year ending December 31, 2025, subscription revenue is expected to grow 2% to 3% to between $170.4 million and $173.4 million. Total revenue is guided to grow 1% to 2% to between $179.9 million and $182.9 million. Full-year Adjusted EBITDA is guided to $12.7 million to $14.7 million.
Risks remain. The company cites a volatile economic climate, political, economic, and military conditions in Israel, and the ability to retain customers and meet demand. Other risks include competition, technological change, artificial intelligence and machine learning models, cybersecurity threats, data privacy laws, reliance on third parties, key personnel, international operations, and potential acquisitions. Liquidity depends on cash on hand and borrowings. As of December 31, 2024, Kaltura had no balance outstanding under its Revolving Credit Facility, with $25.0 million available for future borrowings, and approximately $32.3 million of borrowings outstanding under its Term Loan Facility. The Credit Agreement requires minimum Consolidated Adjusted EBITDA and Liquidity of at least $20 million. The company was in compliance with these covenants as of December 31, 2024. During 2024, Kaltura repurchased 2,238,569 shares at a weighted average price of $1.27 per share, leaving $2,148,055 available under its repurchase program.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2024 | Q3 FY2024 | QoQ | Q4 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $45.6M | $44.3M | +3.0% | $44.5M | +2.5% |
| Gross profit | $32.3M | $29.5M | +9.3% | $28.6M | +12.7% |
| Gross margin | 70.8% | 66.7% | +4.1 pp | 64.4% | +6.4 pp |
| Research & development | $13.0M | $12.4M | +4.4% | $12.7M | +1.8% |
| Sales & marketing | $12.3M | $11.8M | +4.4% | $12.3M | +0.3% |
| General & administrative | $10.8M | $9.8M | +10.3% | $12.4M | -13.4% |
| Total operating expenses | $36.1M | $34.0M | +6.1% | $37.5M | -3.7% |
| Operating income (loss) | -$3.8M | -$4.5M | +15.1% | -$8.8M | +57.0% |
| Operating margin | -8.3% | -10.1% | +1.8 pp | -19.8% | +11.5 pp |
| Net income (loss) | -$6.6M | -$3.6M | -83.0% | -$12.1M | +45.3% |
| Net margin | -14.5% | -8.2% | -6.3 pp | -27.1% | +12.6 pp |
| Customers | 850 | — | — | 1,000 | -15.0% |
| Net retention rate | 100.0% | 101.0% | -1.0 pp | 100.0% | ±0.0 pp |
Risks
The filing states the volatile economic climate has caused longer sale cycles and increased price driven competition, including bid processes, and has adversely affected retention, renewals and up-sales; the company expects these trends to continue in the near term. MD&A also cites current global economic volatility, rising inflation and interest rates as factors that may disrupt access to capital.
Total revenue for the years ended December 31, 2024 and 2023 was $178.7 million and $175.2 million, respectively, representing an annual growth rate of 2%. The company says it has experienced a slowdown as COVID-19 effects weakened and due to the current volatile economic climate, and it warns not to rely on prior period revenue growth.
Top ten customers accounted for approximately 30.8% of revenue for the year ended December 31, 2024, and Vodafone accounted for approximately 10.7%. The loss of one or more significant customers or a reduction in revenue from any such customer could significantly and adversely affect business, financial condition and results of operations.
The company says its investments in AI-based initiatives introduced at the end of 2024 may not generate expected revenues if customers delay or underutilize these offerings, which may further impact its ability to achieve profitability. It also notes customers may be slow to implement new AI offerings due to budgetary or compliance constraints.
The EU AI Act entered into force on August 1, 2024, with most substantive requirements applying from August 2, 2026, and fines for breaches up to 7% of worldwide annual turnover. U.S. federal and state AI rules are also evolving, including California and Colorado laws, which may require additional compliance measures and increase costs.
The markets are highly fragmented and include larger competitors with greater financial, technical and marketing resources; competitors may bundle video offerings or lower prices. The company also makes Kaltura Community Edition available under AGPL, which can be used for free and may put pricing pressure on its offerings.
The company outsources software development, quality assurance and operations to third-party contractors in Europe including Poland, Czech Republic, Ukraine and Belarus. Personnel and service providers in Ukraine are subject to ongoing war impacts such as injury or death, infrastructure destruction, lack of electricity and connectivity, or Russian occupation, which could disrupt operations.
Customers have no contractual obligation to renew subscriptions after the subscription term. Renewals may decline or fluctuate due to satisfaction, product outages, pricing, or government funding changes for education and public sector customers. Net Dollar Retention Rate was 100% for 2024 and 101% for 2023.
The company previously identified and disclosed a material weakness in internal control over financial reporting for the year ended December 31, 2021, which has since been remediated, but it may discover additional significant deficiencies or material weaknesses in the future. Any failure to remediate could cause it to fail to meet reporting obligations or result in material misstatements.
The Credit Agreement contains financial covenants requiring minimum Consolidated Adjusted EBITDA and Liquidity of at least $20 million as of the last day of any calendar month. As of December 31, 2024, the company had approximately $32.3 million of borrowings outstanding under the Term Loan Facility and no balance under the Revolving Credit Facility.
The company depends on qualified sales personnel and sales representatives; identifying and training them is time-consuming and resource-intensive, and they may not be fully productive for a significant amount of time. It also relies primarily on a direct sales model, which results in higher customer acquisition costs than self-service models.
A version of Media Services, Kaltura Community Edition, is licensed under AGPL and can be used by commercial licensees for free or to compete in the company's markets. The company has limited ability to detect violations of the open source license, and this could reduce demand and put pricing pressure on its offerings.
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 Q4 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.