KALTURA INC Q1 FY2025 earnings call

• Revenue growth: Record total revenue and subscription revenue achieved, with three consecutive quarters of increasing year-over-year revenue growth. ARR and RPO also saw growth.
• Business update: New subscription bookings were seasonally low but included significant deals. New customers like Stripe, Novo Nordisk, etc., were acquired. Investment in AI with enhanced Genie agents, Content Lab offerings, and a Gen AI-powered transcription engine. Improvements in virtual events, video portal design. Hosted first annual investor event and upcoming Kaltura Connect on the Road events.

Kaltura reported record total revenue of $47 million for the first quarter of 2025, marking a 5% year-over-year increase. Subscription revenue reached a record $44.9 million, up 9% year-over-year. ARR (annualized recurring revenue) saw a 7% year-over-year growth, and RPO (remaining performance obligations) grew 12% year-over-year. Adjusted EBITDA hit a record $4.1 million, representing the seventh consecutive quarter of adjusted EBITDA profitability. Non-GAAP gross margin was 70%, up from 65% in the same quarter the previous year. Within segments, the EE&T segment had total revenue of $34.4 million, a 6% year-over-year increase, with subscription revenue at $33.6 million, up 10% year-over-year. The M&T segment generated $12.6 million in total revenue, a 2% year-over-year growth, with subscription revenue at $11.3 million, up 7% year-over-year.

• Maintains 2025 revenue guidance. Slightly increases adjusted EBITDA guidance for the year. Anticipates cash flow from operations to bounce back in the second half of the year, consistent with historical seasonality.

• Uncertain macroeconomic environment which could impact business. Potential impact of tariffs on the business. Delayed churn in the M&T segment affecting gross retention in the first half of the year.

Q: Gabriela Borges asked about the macroeconomic impact on customers' spending.

A: Ron and John stated no material negative impact from customers' spending was heard, the SaaS model insulates from tariffs, and virtual events benefit from cost efficiency.

Q: Ryan Koontz inquired about the nature of M&T churn.

A: Ron explained it involved a few full exits of specific customers due to strategic decisions.

Q: Ryan Koontz asked about product investment direction.

A: Ron said focus is on deeper vertical solutions and leveraging existing products to accelerate growth.

Q: Patrick Walravens asked about components of Q2 revenue decrease.

A: John responded it was due to on-prem pickup in Q1 falling off and lower bookings.

Q: Ronit Shah asked about drivers of higher ARR per customer.

A: Ron stated it's mainly customers using multiple products and use cases.

Q: Ronit Shah asked about AI monetization update.

A: Ron said AI pipeline is growing with customers in POCs and expects monetization in coming quarters.