NASDAQ$KLTR

Kaltura Inc. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Announced financial results, showing progress towards profitable growth with record subscription revenue and the highest total revenue growth rate since Q1 2022.

Kaltura reported a 5% increase in revenue compared to the second quarter of 2022. Subscription revenue increased by 7%. The company posted its lowest Adjusted EBITDA loss in eight quarters and reaffirmed plans to achieve a positive Adjusted EBITDA in 2024.

  • Revenue for the second quarter of 2023 was $43.9 million, an increase of 5% compared to $42.0 million for the second quarter of 2022.
  • Subscription revenue for the second quarter of 2023 was $40.7 million, an increase of 7% compared to $38.0 million for the second quarter of 2022.
  • GAAP Operating loss was $9.6 million for the second quarter of 2023, compared to an operating loss of $15.5 million for the second quarter of 2022.
  • Adjusted EBITDA was negative $1.0 million for the second quarter of 2023, compared to negative adjusted EBITDA of $8.5 million for the second quarter of 2022.

Headline financials

Total Revenue

$43.9M

Previous: $42M+4.5%
EPS (adj)

-$0.02

Previous: -$0.08+75.0%
Annualized Recurring Revenue

$163M

No prior period
Net Dollar Retention Rate

100.0%

Previous: 100.0%+0.0%
Remaining Performance Obligations

$174M

No prior period
Capital Expenditures

-$1.59M

Previous: -$761K-109.1%
Free Cash Flow

-$12.4M

Previous: -$18.1M+31.7%
Net Income

-$10.8M

Previous: -$17.3M+37.9%
Operating Income

-$9.56M

Previous: -$15.5M+38.3%
Gross Profit

$28.6M

Previous: $26.7M+7.2%
Cash & Equivalents

$40.2M

Previous: $55.7M-27.8%
Total Assets

$189M

Previous: $219M-13.8%
Stock-Based Comp

$7.42M

Previous: $6.04M+22.9%

Revenue & EPS history

Kaltura · Revenue · Quarterly

$43.9M

Q2 2023+4.5%vs Q2 2022
Beat estimate in 12 of 13 quarters(92%)
ActualEstimate

Revenue by segment

Kaltura · $43.9M total across 2 segments · Q2 2023

  • Enterprise, Education & Tech
    $31.2M+2.5%
  • Media & Telecom
    $12.7M+9.9%

Forward guidance

For the third quarter of 2023, Kaltura expects subscription revenue to grow by 5%-7% year-over-year to between $39.8 million and $40.6 million, and total revenue to grow by 4%-6% year-over-year to between $42.7 million and $43.5 million. Adjusted EBITDA is expected to be negative in the range of $0.5 million to $1.0 million. For the full year ending December 31, 2023, Kaltura expects subscription revenue to grow by 5%-6% year-over-year to between $159.6 million and $161.7 million, and total revenue to grow by 1%-2% year-over-year to between $170.0 million and $173.0 million. Adjusted EBITDA is expected to be negative in the range of $4.5 million to $5.5 million.

Tailwinds

  • Subscription Revenue to grow by 5%-7% year-over-year to between $39.8 million and $40.6 million (Q3 2023).
  • Total Revenue to grow by 4%-6% year-over-year to between $42.7 million and $43.5 million (Q3 2023).
  • Adjusted EBITDA to be negative in the range of $0.5 million to $1.0 million (Q3 2023).
  • Subscription Revenue to grow by 5%-6% year-over-year to between $159.6 million and $161.7 million (FY 2023).
  • Total Revenue to grow by 1%-2% year-over-year to between $170.0 million and $173.0 million (FY 2023).

Headwinds

  • Adjusted EBITDA to be negative in the range of $0.5 million to $1.0 million (Q3 2023).
  • Adjusted EBITDA to be negative in the range of $4.5 million to $5.5 million (FY 2023).
  • Guidance contains forward-looking statements and actual results may differ materially.
  • Kaltura has not provided a quantitative reconciliation of forecasted Adjusted EBITDA to forecasted GAAP net loss.
  • Reconciliation for Adjusted EBITDA includes items that could materially affect the computation of forward-looking GAAP net loss, are inherently uncertain and depend on various factors.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+1.2%

Avg return

Earnings day

+1.8%

Avg return

5 days after

-4.1%

Avg return

30 days after

59%

13 / 22 earnings

Positive

+33.1%

Q3 2024

Best reaction

-38.3%

Q4 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.2%+5.8%+2.2%
Q4 2025-9.4%-11.5%-18.7%
Q3 2025+24.7%+13.6%+14.3%
Q1 2025-0.5%+4.5%+1.4%
Q4 2024-2.0%-18.4%-25.2%
Q3 2024+33.1%+46.1%+57.7%
Q2 2024+3.5%+7.0%-5.2%
Q1 2024-3.1%-6.2%-36.4%
Q4 2023+2.1%-3.4%-8.3%
Q3 2023+1.1%-2.3%+2.3%
Q2 2023+4.0%+5.1%-2.5%
Q1 2023+5.1%+5.7%+2.3%
Q4 2022-2.0%-4.0%-1.0%
Q3 2022+11.4%+16.2%+10.2%
Q2 2022-1.9%-6.8%-18.4%
Q1 2021+2.7%+11.4%+20.8%
Q1 2022+1.4%+9.9%+28.4%
Q4 2021-38.3%-27.3%-39.9%
Q3 2021-35.2%-34.4%-58.1%
Q4 2020+9.8%+4.5%-7.6%
Q2 2020+9.8%+4.5%-7.6%
Q2 2021+12.1%+20.6%-0.6%
Q3 2020
Q1 2020

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