KALTURA INC Q2 FY2025 earnings call

Key points include: Total revenue for Q2 2025 was $44.5 million, up 1% YOY; subscription revenue was $42.4 million, up 3% YOY. ARR grew 3% and RPO 6% YOY. New subscription bookings in Q2 included 21 6-digit deals. The company launched its first 3 AI deals (Content Lab and Genie) with use cases in video creation, enrichment, etc. Product updates: Enhancements to AI offerings, self-serve event platform, video portal, and virtual classroom. Recognized in industry awards, hosted Kaltura Connect events. Board approved a reorganization plan to downsize ~10% of the workforce for cost savings and efficiency improvement.

EE&T segment: Total revenue for the second quarter was $33.2 million, up 7% year-over-year. Subscription revenue was $32.6 million, up 9% year-over-year. M&T segment: Total revenue was $11.2 million, down 14% year-over-year. Subscription revenue was $9.8 million, down 13% year-over-year. EE&T contributed significantly to total revenue growth, while M&T was impacted by churn.

Maintains overall revenue guidance for 2025 with refined ranges. For Q3 2025, subscription revenue is expected to range from a 3% decrease to 1% decrease YOY, between $40.8 million and $41.6 million; total revenue is expected to range from a 3% decrease to 2% decrease YOY, between $42.8 million and $43.6 million; adjusted EBITDA is expected to be between $1.5 million and $2.5 million. For full year 2025, subscription revenue is expected to grow 2%-3% over 2024, between $170.9 million and $172.9 million; total revenue is expected to grow 1%-2% YOY, between $180.4 million and $182.4 million; adjusted EBITDA is raised to between $14.5 million and $16 million.

Market uncertainties and continued geopolitical turbulence that may cause actual results to differ materially from forward-looking statements.

Q: Gabriela Borges asked about bookings momentum and what's working well.

A: Ron Yekutiel mentioned the maturity of the events offering, customer consolidation, and AI as factors driving bookings.

Q: Ryan Boyer Koontz asked about how AI products are folded into the selling motion.

A: Ron Yekutiel stated they are upsells, additive, and expected to become a larger revenue contributor.

Q: David E. Hynes asked about the EE&T revenue dip.

A: Ron Yekutiel explained factors like seasonality and on-prem revenue.

Q: Michael Turrin asked about the 10% lift.

A: Ron Yekutiel and John Doherty discussed the reorganization plan for cost savings.

Q: Patrick Walravens asked about AI wins and the pipeline.

A: Ron Yekutiel said it's existing products and customers desire automation and efficiency through AI.