Kaltura (KLTR) AI Stock Analysis

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Kaltura

(NASDAQ:KLTR)

69Neutral

Kaltura's overall stock score reflects a balanced perspective of its financial recovery and growth potential, highlighted by improved net income and cash flow. The positive earnings call and strategic stock repurchase are significant positives. However, valuation metrics and leverage pose moderate risks.

Positive Factors

AI and Innovation

New AI-enabled features are propelling differentiation and growth.

Financial Performance

KLTR delivered further improved 4Q24 results and issued F25 guidance above consensus estimates.

Strategic Partnerships

The platform's enterprise-grade reliability, scalability, and security are validated by its use by major firms like Adobe, Amazon, Oracle, and Salesforce.

Negative Factors

Financial Targets

The path to achieving the Rule of 30 framework includes significant improvements in EBITDA margins, which may be challenging.

Growth Challenges

KLTR shares are trading below broader software peers, indicating a longer path to growth and margin improvements.

Growth Uncertainty

The path to achieving the reiterated 2028 targets, including 10%+ growth, remains unclear and requires more emphasis.

Kaltura (KLTR) vs. S&P 500 (SPY)

Market Cap

$345.93M

Dividend YieldN/A

Average Volume (3M)334.94K

Price to Earnings (P/E)―

Beta (1Y)2.00

Revenue Growth2.02%

EPS Growth36.61%

CountryUS

Employees563

SectorTechnology

Sector Strength68

IndustrySoftware - Infrastructure

Share Statistics

EPS (TTM)-0.21

Shares Outstanding155,125,000

10 Day Avg. Volume278,374

30 Day Avg. Volume334,939

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap0.86

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit2.49

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$3.13

Price Target Upside40.36% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering4

Kaltura Business Overview & Revenue Model

Company DescriptionKaltura, Inc. is a technology company that provides a video cloud platform designed to power any video experience. The company operates in the software and media sectors, offering a range of products and services that include video creation, management, and distribution solutions. Kaltura's platform supports various use cases such as video conferencing, webinars, virtual classrooms, and media services, catering to businesses, educational institutions, and media companies.

How the Company Makes MoneyKaltura makes money primarily through a subscription-based revenue model, offering its cloud-based video platform on a software-as-a-service (SaaS) basis. Key revenue streams include subscription fees from organizations that use its video solutions for enterprise communications, educational content delivery, and media distribution. The company also generates revenue from professional services, which include implementation, customization, and support services. Significant partnerships with technology providers and service integrators enhance its market reach and contribute to its earnings by enabling joint solutions and co-marketing efforts.

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

Positive

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.

Balance Sheet

Neutral

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.

Cash Flow

Positive

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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
	EBIT
-24.10M	-35.31M	-55.14M	-32.67M	-4.98M
	EBITDA
-15.92M	-29.03M	-52.43M	-30.95M	-812.00K
	Net Income Common Stockholders
-31.32M	-46.37M	-68.50M	-59.35M	-58.76M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
81.33M	69.38M	85.97M	143.95M	27.71M
	Total Assets
181.31M	183.74M	206.17M	223.29M	90.95M
	Total Debt
50.03M	54.83M	58.85M	38.74M	50.04M
	Net Debt
16.97M	18.14M	14.22M	-105.21M	22.33M
	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

Technical Analysis Sentiment

Positive

Last Price2.23

Price Trends

50DMA

1.98

Positive

100DMA

2.18

Positive

200DMA

1.81

Positive

Market Momentum

MACD

0.05

Negative

RSI

64.31

Neutral

STOCH

90.03

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KLTR, the sentiment is Positive. The current price of 2.23 is above the 20-day moving average (MA) of 1.97, above the 50-day MA of 1.98, and above the 200-day MA of 1.81, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 64.31 is Neutral, neither overbought nor oversold. The STOCH value of 90.03 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DBX	73 Outperform	$8.24B	20.41	-60.11%	―	1.86%	6.21%
KLTR	69 Neutral	$345.93M	―	-114.48%	―	2.02%	36.61%
VRNT	67 Neutral	$1.11B	18.28	6.35%	―	-0.13%	263.78%
ZENV	64 Neutral	$88.43M	―	-6.45%	―	20.38%	71.64%
TENB	60 Neutral	$3.70B	―	-12.09%	―	11.79%	35.35%
Sector *	60 Neutral	$10.94B	10.58	-7.08%	2.98%	7.52%	-12.04%
VRNS	56 Neutral	$4.81B	―	-20.26%	―	10.38%	6.88%

* Technology Sector Average

Performance Comparison

KLTR

Kaltura

2.23

0.97

76.98%

VRNT

Verint Systems

17.82

-13.71

-43.48%

VRNS

Varonis Systems

43.01

-1.58

-3.54%

DBX

Dropbox

28.61

5.07

21.54%

TENB

Tenable Holdings

30.77

-14.76

-32.42%

ZENV

Zenvia

1.70

-0.37

-17.87%

Kaltura Earnings Call Summary

Earnings Call Date:Feb 20, 2025

(Q4-2024)

% Change Since: -10.80%|

Next Earnings Date:May 08, 2025

Earnings Call Sentiment Positive

Kaltura's earnings call reflects a positive sentiment with record-breaking revenue and subscription growth, strong profitability metrics, and successful AI innovations. The company's challenges include a decline in professional services revenue and anticipated churn impacts, but these are outweighed by the positive achievements and strategic advancements.

Q4-2024 Updates

Positive Updates

Record-Breaking Revenue and Growth

Kaltura reported record total revenue of $45.6 million for the fourth quarter, up 3% year-over-year, and record subscription revenue of $43.4 million, up 6% year-over-year. The company also achieved record ARR and RPO levels.

Improved Profitability Metrics

Adjusted EBITDA for the fourth quarter was $2.7 million, marking the sixth consecutive quarter of adjusted EBITDA profitability and the highest quarterly results over the past four years. Cash flow from operations was $4.3 million.

Strong New Subscription Bookings

New subscription bookings in the fourth quarter were at the highest level since Q4 2022, with four seven-digit deals and 29 six-digit deals, the highest combined number since Q3 2022.

AI Innovations and Industry Recognition

Launched beta releases of AI-infused offerings, Class Genie and Work Genie, with strong interest from large organizations. Kaltura's AI innovations received industry recognition, earning a place in the Feed Magazine 2024 Honors List in the Special Recognition in AI category.

Positive Gross Margin and Cash Flow

GAAP gross profit for Q4 was $32.3 million, up 13% year-over-year, with a gross margin of 71%. Net cash provided by operating activities was $4.3 million in the quarter.

Negative Updates

Professional Services Revenue Decline

Professional services revenue was $2.2 million for the quarter, down 40% year-over-year, consistent with expected trends.

Net Dollar Retention Rate Challenges

Net dollar retention rate was 100% in 2024 compared to 101% in 2023, primarily due to lower bookings and gross retention levels in 2023.

Delayed M&T Churn Impact

Expected increased M&T churn in the first half of 2025, including delayed churn from the previous year, impacting revenue expectations.

Company Guidance

During Kaltura's 2024 fourth-quarter conference call, the company reported record total revenue of $45.6 million, marking a 3% year-over-year increase. Subscription revenue reached $43.4 million, up 6% year-over-year, contributing to a record annualized recurring revenue (ARR) of $173.9 million, a 6% year-over-year increase. Kaltura achieved an adjusted EBITDA of $2.7 million, representing its highest quarterly result in four years and marking the sixth consecutive quarter of adjusted EBITDA profitability. The company also reported a cash flow from operations of $4.3 million. For 2025, Kaltura anticipates subscription revenue growth, projecting an increase of 2% to 3%, and aims to double its adjusted EBITDA profit margin. The company is focused on expanding its profitability metrics and expects net dollar retention to continue improving, reaching 103% in Q4 2024. Additionally, Kaltura is investing heavily in AI, launching beta releases of AI-infused offerings, and anticipates these innovations to drive substantial opportunities in content consumption and customer engagement.

Kaltura Corporate Events

Stock BuybackFinancial Disclosures

Kaltura Announces $15 Million Stock Repurchase Program

Positive

Mar 21, 2025

On March 21, 2025, Kaltura announced a new stock repurchase program authorized by its Board of Directors, allowing for the repurchase of up to $15 million of its common stock, replacing a previous $5 million program. This move reflects the Board’s confidence in the company’s long-term strategy and its belief that the current share price is undervalued. Additionally, Kaltura reaffirmed its financial guidance for the first quarter and full year of 2025, expecting subscription revenue growth and positive adjusted EBITDA, indicating stable financial expectations despite market conditions.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.