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Kaltura (KLTR)
NASDAQ:KLTR
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Kaltura
(NASDAQ:KLTR)
Rating:64Neutral
Price Target:
$2.00
▲(0.00%Upside)
Positive Factors
Earnings
KLTR delivered solid 1Q25 results and raised adjusted EBITDA guidance ahead of consensus estimates.
Market Position
Kaltura's unified platform enables video stack consolidation, leading to fewer vendors, lower costs, and a better user experience.
Product Development
New AI-enabled features are propelling differentiation and growth.
Negative Factors
Growth Challenges
The path to achieving the reiterated 2028 targets, including 10%+ growth, remains unclear and requires more emphasis.
Revenue Guidance
2Q revenue guidance implies a step down due to anticipated churn in media and telecommunications.
Valuation Concerns
The valuation of KLTR shares is below that of broader software and video software-focused peers, reflecting a longer path to growth and margin improvements.
Kaltura (KLTR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$307.24M
Dividend YieldN/A
Average Volume (3M)344.02K
Price to Earnings (P/E)―
Beta (1Y)1.92
Revenue Growth2.40%
EPS Growth54.99%
CountryUS
Employees563
SectorTechnology
Sector Strength84
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.02
Shares Outstanding153,619,170
10 Day Avg. Volume417,979
30 Day Avg. Volume344,023
Financial Highlights & Ratios
PEG Ratio-0.55
Price to Book (P/B)11.23
Price to Sales (P/S)0.00
P/FCF Ratio23.95
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.00Price Target Upside50.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Kaltura Business Overview & Revenue Model
Company DescriptionKaltura, Inc. (KLTR) is a leading video technology company that provides a wide range of video products and solutions to enterprises, media companies, service providers, and educational institutions. The company's offerings include a video platform with capabilities such as live streaming, video management, and video analytics. Kaltura's solutions are designed to enhance communication, collaboration, and engagement through video, serving sectors like education, media, telecommunications, and enterprise communication.
How the Company Makes MoneyKaltura generates revenue through a diversified model that includes subscription fees, professional services, and usage-based fees. The company offers its video platform as a service (PaaS), charging clients a subscription fee for access to its software and services. Additionally, Kaltura provides professional services, including custom development, integration, and consulting, which represent another significant revenue stream. Usage-based fees are also part of Kaltura's revenue model, where customers are charged based on their specific usage of the platform, such as bandwidth consumption or storage requirements. Strategic partnerships with technology providers and educational institutions further enhance Kaltura's market reach and customer base, contributing to its earnings.
Kaltura Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: -9.09%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
Kaltura's earnings call demonstrated strong revenue growth, improved profitability, and significant advancements in AI product development, which generated interest among a substantial portion of its customer base. However, the company faced typical seasonal declines in new subscription bookings and M&T segment churn, which impacted its gross retention. Despite these lowlights, the overall performance and future outlook remain positive.Q1-2025 Updates
Positive Updates
Record-Breaking Revenue and Subscription Growth
Total revenue for Q1 2025 was $47 million, up 5% year-over-year, with record subscription revenue of $44.9 million, up 9% year-over-year.
Strong Adjusted EBITDA and Gross Margin
Adjusted EBITDA reached a record $4.1 million, marking the seventh consecutive quarter of profitability. Non-GAAP gross margin increased to 70%, up from 65% the previous year.
AI Product Development and Adoption
Kaltura's AI products, including Genie agents and the Content Lab offerings, have sparked interest from over 150 customers, constituting roughly 20% of Kaltura's customer base.
Growing ARR and Net Dollar Retention
Annualized recurring revenue reached $174.8 million, up 7% year-over-year. Net dollar retention climbed to 107%, the highest level since Q1 2022.
Industry Recognition and Awards
Kaltura received the Product of the Year Award for streaming at the 2025 NAB Show for its TV Genie, and was recognized by Gartner as a representative vendor in their market guide.
Negative Updates
Seasonal Decline in New Subscription Bookings
New subscription bookings in Q1 were seasonally low, with one 7-digit deal and fifteen 6-digit deals, similar to last year.
M&T Segment Churn
The media and telecom (M&T) segment experienced expected churn, impacting gross retention. The segment's revenue grew only 2% year-over-year.
Sequential Decrease in Remaining Performance Obligations
RPO decreased by 9% sequentially, despite a 12% year-over-year increase, reflecting the typical seasonal decline in new bookings and renewals in Q1.
Lower Professional Services Revenue
Professional services revenue was $2.1 million, down 42% year-over-year, consistent with expected trends.
Company Guidance
During Kaltura's first quarter 2025 earnings call, the company reported a record total revenue of $47 million, marking a 5% year-over-year increase, with subscription revenue reaching $44.9 million, up 9% year-over-year. The company achieved a record ARR with a 7% increase year-over-year and a 12% year-over-year growth in RPO. The adjusted EBITDA for the quarter was a record $4.1 million, reflecting the seventh consecutive quarter of adjusted EBITDA profitability. Kaltura also noted a strong non-GAAP gross margin of 70%, up from 65% the previous year. While the company consumed $1 million in cash for operations, consistent with last year's first quarter, it maintained its cash flow forecast for the full year. The net dollar retention rate climbed to 107%, the highest since the first quarter of 2022, despite an expected temporary decline in M&T churn. Kaltura continues to invest in AI, enhancing its Genie agents and expanding its Content Lab offerings, with more than 150 customers showing interest in their AI beta program. The company also increased its adjusted EBITDA guidance for the year, aiming for double-digit revenue growth and a Rule of 30 by 2028.Kaltura Financial Statement Overview
Summary
Kaltura has shown improvements in profitability and cash flow, with positive revenue growth and increased cost efficiency. The Net Income turning positive is a significant milestone. However, the high Debt-to-Equity ratio and low Equity Ratio highlight potential financial risks.Income Statement
Kaltura has shown a consistent revenue growth trajectory, with a notable revenue increase of 2% from 2023 to 2024. Gross Profit Margin has increased to 66.7% in 2024, suggesting improved cost efficiency. However, the company still experiences negative EBIT and EBITDA margins, indicating ongoing operational challenges. Net Profit Margin turned positive in 2024, a significant improvement from previous losses, which is a positive sign but still requires careful monitoring.68
Positive
Balance Sheet
The Debt-to-Equity ratio has improved to 2.05 in 2024 from 1.81 in 2023, showing better leverage management, but it remains fairly high. The Return on Equity (ROE) improved significantly, reaching 128.5% in 2024, reflecting the company's improved profitability. However, the Equity Ratio is low at 13.45%, indicating potential risks from a low equity base relative to total assets.60
Neutral
Cash Flow
Kaltura's cash flow situation has improved, with Free Cash Flow turning positive in 2024 and growing significantly from the previous year. The Operating Cash Flow to Net Income ratio is 0.39, showing some reliance on operating earnings for cash flow generation. The Free Cash Flow to Net Income ratio is 0.37, indicating that some profit is being effectively converted into cash flow.71
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 178.72M | 175.17M | 168.81M | 165.02M | 120.44M |
| Gross Profit | 119.11M | 112.23M | 106.94M | 102.70M | 72.78M |
| EBITDA | -15.92M | -29.03M | -52.43M | -30.95M | -812.00K |
| Net Income | -31.32M | -46.37M | -68.50M | -59.35M | -58.76M |
Balance Sheet | |||||
| Total Assets | 181.31M | 183.74M | 206.17M | 223.29M | 90.95M |
| Cash, Cash Equivalents and Short-Term Investments | 81.33M | 69.38M | 85.97M | 143.95M | 27.71M |
| Total Debt | 50.03M | 54.83M | 58.85M | 38.74M | 50.04M |
| Total Liabilities | 156.92M | 153.42M | 162.82M | 138.02M | 191.50M |
| Stockholders Equity | 24.39M | 30.32M | 43.35M | 85.27M | -100.54M |
Cash Flow | |||||
| Free Cash Flow | 11.71M | -12.40M | -52.80M | -28.11M | 2.67M |
| Operating Cash Flow | 12.23M | -8.30M | -46.83M | -22.11M | 5.80M |
| Investing Cash Flow | -12.41M | -1.58M | -49.76M | -5.24M | -2.75M |
| Financing Cash Flow | -3.53M | 109.00K | -529.00K | 143.37M | -1.85M |
Kaltura Technical Analysis
Negative
2.00
Price Trends
2.11
Negative
2.10
Negative
2.00
Negative
Market Momentum
-0.04
Positive
37.67
Neutral
29.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KLTR, the sentiment is Negative. The current price of 2 is below the 20-day moving average (MA) of 2.05, below the 50-day MA of 2.11, and above the 200-day MA of 2.00, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 37.67 is Neutral, neither overbought nor oversold. The STOCH value of 29.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KLTR.
Kaltura Risk Analysis
Kaltura disclosed 79 risk factors in its most recent earnings report. Kaltura reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Kaltura Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.12B | 27.60 | 5.32% | ― | -2.09% | 76.96% | |
70 Neutral | $4.10B | ― | -12.09% | ― | 11.79% | 35.35% | |
64 Neutral | $307.24M | ― | -89.29% | ― | 2.40% | 54.99% | |
64 Neutral | $5.60B | ― | -22.21% | ― | 13.34% | 13.71% | |
64 Neutral | $7.80B | 18.20 | -60.11% | ― | 0.79% | 0.59% | |
63 Neutral | $33.24B | 5.92 | -11.55% | 1.90% | 5.54% | -20.14% | |
60 Neutral | $78.13M | ― | -18.19% | ― | 10.01% | -85.74% |
* Technology Sector Average
Performance Comparison
KLTR
Kaltura
1.93
0.79
69.30%
VRNT
Verint Systems
21.44
-9.88
-31.55%
VRNS
Varonis Systems
50.05
1.72
3.56%
DBX
Dropbox
27.55
5.22
23.38%
TENB
Tenable Holdings
33.64
-10.14
-23.16%
ZENV
Zenvia
1.51
-0.97
-39.11%
Kaltura Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Kaltura Adopts New Severance Plan for Executives
Neutral
Jun 27, 2025
On June 27, 2025, Kaltura, Inc.’s Compensation Committee adopted a Severance Plan to provide severance payments and benefits to key employees in case of qualifying terminations. This plan outlines specific terms for executives like Ron Yekutiel, John Doherty, Eynav Azariya, and Natan Israeli, including notice periods, salary continuations, bonuses, and healthcare coverage. The plan is designed to supersede previous agreements and aims to offer competitive compensation packages, potentially impacting the company’s executive retention and market positioning.
The most recent analyst rating on (KLTR) stock is a Buy with a $4.00 price target. To see the full list of analyst forecasts on Kaltura stock, see the KLTR Stock Forecast page.
Executive/Board ChangesShareholder Meetings
Kaltura Elects Directors at Annual Stockholders Meeting
Neutral
Jun 27, 2025
On June 25, 2025, Kaltura, Inc. held its Annual Meeting of Stockholders, where approximately 92.13% of the company’s outstanding common stock was represented. During the meeting, Ron Yekutiel and Eyal Manor were elected as Class I directors to serve until the 2028 Annual Meeting, and the appointment of Kost Forer Gabbay & Kasierer as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified.
The most recent analyst rating on (KLTR) stock is a Buy with a $4.00 price target. To see the full list of analyst forecasts on Kaltura stock, see the KLTR Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.