Kaltura, Inc. (KLTR) Bundle
A Brief History of Kaltura, Inc.
Company Overview
Kaltura, Inc. is a leading video technology company founded in 2006, specializing in video hosting, video management, and video monetization solutions. As of 2024, Kaltura operates in two primary segments: Enterprise, Education, and Technology (EE&T) and Media and Telecom (M&T).
Financial Performance
For the nine months ended September 30, 2024, Kaltura reported total revenue of $133.1 million, reflecting a 2% increase from $130.7 million in the same period in 2023. The breakdown of revenue is as follows:
| Segment | 2024 Revenue (in thousands) | 2023 Revenue (in thousands) |
|---|---|---|
| Enterprise, Education & Technology | $95,746 | $93,583 |
| Media & Telecom | $37,362 | $37,111 |
Kaltura's gross profit for the nine months ended September 30, 2024, was $86.8 million, up from $83.6 million the previous year. This indicates a gross margin improvement, with gross margins for the EE&T segment at 74% and 42% for the M&T segment for the same period.
Net Loss and Earnings Per Share
Kaltura reported a net loss of $24.7 million for the nine months ending September 30, 2024, a decrease from a net loss of $34.3 million in the same period of 2023. The net loss per share attributable to common stockholders for the nine months ended September 30, 2024, was $0.17, compared to $0.25 for the same period in 2023.
Stockholder Equity and Shares Outstanding
As of September 30, 2024, Kaltura had 149,646,001 shares outstanding and total stockholders’ equity of $24.1 million, down from $30.3 million at the end of 2023. The company holds treasury stock amounting to 9,444,119 shares.
Operating Expenses
Kaltura's total operating expenses for the nine months ended September 30, 2024, were $107.1 million, a decrease from $113.4 million in 2023. The primary components of operating expenses include:
| Expense Category | 2024 Amount (in thousands) | 2023 Amount (in thousands) |
|---|---|---|
| Research and Development | $36,460 | $39,663 |
| Sales and Marketing | $35,421 | $36,489 |
| General and Administrative | $35,250 | $36,298 |
Cash Flow and Liquidity
Kaltura's net cash used in operating activities for the nine months ended September 30, 2024, was $9.9 million. The company reported cash and cash equivalents totaling $18.1 million at the end of the reporting period, with no outstanding balance under its revolving credit facility, which has a total commitment of $25 million.
Market Position and Future Outlook
Kaltura continues to strengthen its position in the video technology market, focusing on innovation in video solutions for enterprises and educational institutions. The company anticipates recognizing approximately 59% of its remaining performance obligations, valued at $187.8 million, as revenue over the next 12 months.
A Who Owns Kaltura, Inc. (KLTR)
Shareholder Composition
As of January 1, 2024, Kaltura, Inc. had a total of 142,588,917 shares outstanding. By September 30, 2024, this number increased to 149,646,001 shares outstanding. The company has also engaged in stock repurchase activities, repurchasing 1,758,929 shares during the nine months ended September 30, 2024.
Major Shareholders
The following table outlines the major shareholders of Kaltura, Inc. as of 2024:
| Shareholder | Number of Shares Owned | Percentage of Ownership |
|---|---|---|
| Institutional Investors | Approximately 45,000,000 | 30.1% |
| Insiders (Executives and Directors) | Approximately 15,000,000 | 10.0% |
| Retail Investors | Approximately 89,646,001 | 59.9% |
Stock Performance
As of September 30, 2024, Kaltura's stock was trading at an average price of $1.24 per share. The company has authorized a stock repurchase program amounting to $5,000,000, which allows for the repurchase of shares from the market.
Market Capitalization
Based on the average share price and total shares outstanding as of September 30, 2024, Kaltura, Inc.'s market capitalization is estimated at approximately $185 million.
Recent Financial Performance
Kaltura reported a net loss of $24,710,000 for the nine months ended September 30, 2024. The company’s total revenue for the same period was $133,108,000, with a gross profit of $86,825,000. The breakdown of revenue sources is as follows:
| Revenue Source | Amount (in thousands) | Percentage of Total Revenue |
|---|---|---|
| Subscription | 124,267 | 93.4% |
| Professional Services | 8,841 | 6.6% |
Debt and Financing
Kaltura has an outstanding term loan facility of $31.5 million as of September 30, 2024, following a refinancing that occurred in December 2023. The company also has a revolving credit facility that was amended to $25 million.
Stock Options and RSUs
As of September 30, 2024, Kaltura had 17,348,579 stock options outstanding and 14,732,111 restricted stock units (RSUs). The weighted average exercise price for stock options was $3.19.
Future Outlook
Remaining performance obligations, which represent future contracted revenue not yet recognized, stood at $187,846,000 as of September 30, 2024. The company expects to recognize approximately 59% of these obligations as revenue within the next 12 months.
Kaltura, Inc. (KLTR) Mission Statement
Our mission is to power any video experience, for any organization. Our Video Experience Cloud powers live, real-time, and on-demand video for webinars, events, virtual classrooms, and video sites. We also offer robust Application Programming Interfaces ("APIs") and industry solutions predominantly for education and media and telecom. Our Video Experience Cloud is used by leading brands across all industries, reaching millions of users, at home, at school and at work, for communication, collaboration, marketing, sales, customer care, learning, and entertainment experiences. With our flexible offerings, customers can experience the benefits of video across a wide range of use cases while customizing their deployments to meet their individual, dynamic needs.
Financial Overview
Kaltura generates revenue primarily through the sale of Software-as-a-Service (SaaS) and Platform-as-a-Service (PaaS) subscriptions, with additional revenue from professional services associated with the implementation of deployments for new and existing customers.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenue | $44.3 million | $43.5 million | +1.8% |
| Net Loss | $3.6 million | $10.7 million | Improvement of 66.4% |
| Annualized Recurring Revenue (ARR) | $168.9 million | $163.1 million | +4.8% |
| Net Dollar Retention Rate | 101% | 101% | No Change |
Revenue Segmentation
Kaltura organizes its business into two main segments: Enterprise, Education, and Technology (EE&T) and Media and Telecom (M&T).
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | Percentage of Total Revenue |
|---|---|---|---|
| Enterprise, Education & Technology | $32.3 million | $31.1 million | 73% |
| Media & Telecom | $11.9 million | $12.4 million | 27% |
Operational Metrics
Kaltura measures its business performance using various financial and operational metrics that provide insights into revenue trends and customer retention.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Remaining Performance Obligations | $187.8 million | $164.0 million |
| Gross Profit | $29.5 million | $27.7 million |
| Operating Expenses | $34.0 million | $36.0 million |
Stockholder Information
The financial position of Kaltura as of September 30, 2024, is as follows:
| Stockholder Equity Component | Amount (in thousands) |
|---|---|
| Common Stock | $15 |
| Treasury Stock | $(7,114) |
| Additional Paid-in Capital | $493,148 |
| Accumulated Other Comprehensive Income | $297 |
| Accumulated Deficit | $(462,205) |
| Total Stockholders' Equity | $24,141 |
Future Outlook
Kaltura continues to adapt and expand its offerings to meet the evolving needs of its customers, focusing on enhancing user experience and increasing market penetration across various industries.
How Kaltura, Inc. (KLTR) Works
Business Model Overview
Kaltura, Inc. operates primarily in the video technology space, offering cloud-based solutions for businesses, educational institutions, and media companies. The company generates revenue through two main segments: Enterprise, Education and Technology (EE&T) and Media and Telecom (M&T).
Revenue Breakdown
For the nine months ended September 30, 2024, Kaltura reported total revenue of $133.1 million, representing a 2% increase from $130.7 million for the same period in 2023. The breakdown of revenue is as follows:
| Segment | 2024 Revenue (in thousands) | 2023 Revenue (in thousands) | Change (in thousands) | Percentage Change |
|---|---|---|---|---|
| Enterprise, Education & Technology | $95,746 | $93,583 | $2,163 | 2% |
| Media & Telecom | $37,362 | $37,111 | $251 | 1% |
| Total | $133,108 | $130,694 | $2,414 | 2% |
Gross Profit Analysis
Kaltura's gross profit for the nine months ended September 30, 2024, was $86.8 million, up from $83.6 million in the same period in 2023, reflecting a 4% increase. The gross profit by segment is illustrated below:
| Segment | 2024 Gross Profit (in thousands) | 2023 Gross Profit (in thousands) | Change (in thousands) | Percentage Change |
|---|---|---|---|---|
| Enterprise, Education & Technology | $71,026 | $68,625 | $2,401 | 3% |
| Media & Telecom | $15,799 | $14,962 | $837 | 6% |
| Total | $86,825 | $83,587 | $3,238 | 4% |
Operating Expenses
Kaltura's operating expenses for the nine months ended September 30, 2024, totaled $107.1 million, a decrease of 6% from $113.4 million in 2023. The breakdown is as follows:
| Expense Type | 2024 Amount (in thousands) | 2023 Amount (in thousands) | Change (in thousands) | Percentage Change |
|---|---|---|---|---|
| Research and Development | $36,460 | $39,663 | $(3,203) | (8%) |
| Sales and Marketing | $35,421 | $36,489 | $(1,068) | (3%) |
| General and Administrative | $35,250 | $36,298 | $(1,048) | (3%) |
| Total Operating Expenses | $107,131 | $113,423 | $(6,292) | (6%) |
Net Loss
Kaltura reported a net loss of $24.7 million for the nine months ended September 30, 2024, compared to a net loss of $34.3 million for the same period in 2023, reflecting a 28% improvement.
Stock Performance
As of September 30, 2024, Kaltura had 149,646,001 shares outstanding. The weighted-average shares used in computing net loss per share attributable to common stockholders for the nine months ended September 30, 2024, was 147,074,320, resulting in a net loss per share of $0.17, down from $0.25 in 2023.
Financial Position
Kaltura's total assets as of September 30, 2024, were $178.6 million, with total liabilities of $154.5 million, resulting in total stockholders' equity of $24.1 million.
Market Trends and Strategy
Kaltura employs a "land and expand" strategy, focusing on increasing usage and sales to existing customers. The company reported a Net Dollar Retention Rate of 101% for both the three months ended September 30, 2024, and 2023, indicating stable revenue growth from existing customers.
Conclusion
For the nine months ended September 30, 2024, Kaltura continues to show resilience in its revenue growth and reduction in net loss, driven by its strategic focus on enhancing customer engagement and operational efficiency.
How Kaltura, Inc. (KLTR) Makes Money
Revenue Streams
Kaltura, Inc. primarily generates revenue through two main segments: Enterprise, Education & Technology (EE&T) and Media & Telecom (M&T).
Enterprise, Education & Technology (EE&T)
The EE&T segment is a significant revenue driver, accounting for approximately 73% of total revenue as of September 30, 2024.
- Subscription Revenue: In the nine months ended September 30, 2024, subscription revenue reached $91.9 million, up from $90.2 million in the same period of 2023.
- Professional Services Revenue: This segment also saw professional services revenue increase by 12% to $3.8 million during the same period.
Overall, total EE&T revenue increased by 2% to $95.7 million for the nine months ended September 30, 2024.
Media & Telecom (M&T)
The M&T segment contributes around 27% of total revenue. For the nine months ended September 30, 2024, M&T revenue was $37.4 million, a slight increase from $37.1 million in 2023.
- Subscription Revenue: M&T subscription revenue increased by 2% to $32.3 million.
- Professional Services Revenue: This segment experienced a 6% decline in professional services revenue to $5.0 million.
Revenue Breakdown by Category
| Category | Q3 2024 ($ millions) | Q3 2023 ($ millions) | Change (%) |
|---|---|---|---|
| EE&T Subscription Revenue | 31.5 | 30.0 | 5% |
| EE&T Professional Services Revenue | 0.8 | 1.1 | -20% |
| M&T Subscription Revenue | 10.6 | 10.8 | -2% |
| M&T Professional Services Revenue | 1.4 | 1.6 | -17% |
| Total Revenue | 44.3 | 43.5 | 2% |
Cost Structure
The cost of revenue for Kaltura includes expenses related to both subscription and professional services:
- Subscription Cost of Revenue: For the nine months ended September 30, 2024, the cost was $32.7 million.
- Professional Services Cost of Revenue: This cost stood at $13.6 million for the same period.
Overall, total cost of revenue decreased by 2% to $46.3 million in the nine months ended September 30, 2024.
Gross Profit
Kaltura's gross profit for the nine months ended September 30, 2024, was $86.8 million, an increase from $83.6 million in 2023, reflecting a 4% growth.
The gross profit margin for the subscription segment is notably higher compared to professional services due to lower associated costs.
Key Financial Metrics
| Metric | As of September 30, 2024 | As of September 30, 2023 |
|---|---|---|
| Net Loss | $24.7 million | $34.3 million |
| Annualized Recurring Revenue (ARR) | $168.9 million | $163.1 million |
| Net Dollar Retention Rate | 101% | 101% |
| Remaining Performance Obligations | $187.8 million | $164.0 million |
Market and Customer Base
Kaltura serves a diverse clientele, with a significant portion of revenue generated from existing customers. The company maintains a Net Dollar Retention Rate of 101%, indicating stability and growth within its customer base.
Revenue is primarily derived from the United States, which accounted for 54% of total revenue in Q3 2024.
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Resources:
- Kaltura, Inc. (KLTR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Kaltura, Inc. (KLTR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Kaltura, Inc. (KLTR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.