NASDAQ$KLTR

Kaltura Inc. · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported record subscription revenue for the fourth consecutive quarter and achieved adjusted EBITDA profits for the first time since 2020.

Kaltura announced financial results for Q3 2023, showing a 6% increase in revenue compared to Q3 2022. The company achieved adjusted EBITDA profits for the first time since 2020 and positive cash flow from operations. They are slightly raising their revenue and adjusted EBITDA guidance for the full year, and reaffirming plans to achieve a positive adjusted EBITDA in 2024.

  • Revenue for the third quarter of 2023 was $43.5 million, an increase of 6% compared to $41.1 million for the third quarter of 2022.
  • Subscription revenue for the third quarter of 2023 was $40.8 million, an increase of 8% compared to $37.9 million for the third quarter of 2022.
  • Adjusted EBITDA was $0.3 million for the third quarter of 2023, compared to adjusted EBITDA of $(7.2) million for the third quarter of 2022.
  • Net Cash Provided by Operating Activities was $1.7 million for the third quarter of 2023, compared to $1.1 million for the third quarter of 2022.

Headline financials

Total Revenue

$43.5M

Previous: $41.1M+6.1%
EPS (adj)

-$0.02

Previous: -$0.09+77.8%
Net Dollar Retention Rate

101.0%

Previous: 96.0%+5.2%
Remaining Performance Obligations

$164M

No prior period
Capital Expenditures

-$1.79M

Previous: -$1M-78.5%
Free Cash Flow

-$12.5M

Previous: -$20.4M+38.8%
Net Income

-$10.7M

Previous: -$19.4M+44.8%
Operating Income

-$8.31M

Previous: -$14.9M+44.0%
Gross Profit

$27.7M

Previous: $26.4M+5.0%
Cash & Equivalents

$34.1M

Previous: $52.6M-35.3%
Total Assets

$180M

Previous: $211M-14.8%
R&D Expense

$12.3M

No prior period
Stock-Based Comp

$7.37M

Previous: $6.1M+20.9%

Revenue & EPS history

Kaltura · Revenue · Quarterly

$43.5M

Q3 2023+6.1%vs Q3 2022
Beat estimate in 12 of 13 quarters(92%)
ActualEstimate

Revenue by segment

Kaltura · $43.5M total across 2 segments · Q3 2023

  • Enterprise, Education & Tech
    $31.1M+3.5%
  • Media & Telecom
    $12.4M+13.2%

Forward guidance

For the fourth quarter of 2023, Kaltura currently expects: Subscription Revenue to grow by negative 3% to positive 1% year-over-year to between $38.4 million and $39.8 million. Total Revenue to decrease by 7% to 4% year-over-year to between $40.8 million and $42.3 million. Adjusted EBITDA to be negative in the range of $1.1 million to $0.6 million.

Tailwinds

  • Subscription Revenue to grow by negative 3% to positive 1% year-over-year to between $38.4 million and $39.8 million.
  • Total Revenue to decrease by 7% to 4% year-over-year to between $40.8 million and $42.3 million.
  • Adjusted EBITDA to be negative in the range of $1.1 million to $0.6 million.

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 Q3 2023

Historical avgQ3 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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