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Kaltura (KLTR)
NASDAQ:KLTR
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Kaltura
(NASDAQ:KLTR)
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Rating:60Neutral
Price Target:
$2.00
▲(25.00% Upside)
Kaltura's overall score reflects strong revenue growth and operational improvements, as highlighted in the earnings call. However, ongoing profitability challenges and valuation concerns weigh on the score. Technical indicators suggest mixed momentum, with potential for short-term gains but longer-term caution.
Positive Factors
Subscription Revenue Growth
The growth in subscription revenue indicates strong demand for Kaltura's core services, supporting a stable and recurring revenue stream essential for long-term business sustainability.
Improved Gross Margin
An improved gross margin reflects better cost management and operational efficiency, which can enhance profitability and provide a competitive edge in the market.
Cash Flow from Operations
Strong cash flow from operations indicates robust cash generation capability, enhancing financial flexibility and supporting future investments and growth initiatives.
Negative Factors
Media and Telecom Revenue Decline
A significant decline in media and telecom revenue could indicate challenges in maintaining market share in this segment, potentially impacting overall revenue growth.
Professional Services Revenue Decrease
The decrease in professional services revenue suggests potential challenges in service delivery or demand, which could affect customer satisfaction and future service-related income.
Reorganization and Workforce Reduction
Workforce reduction may lead to short-term cost savings but could also impact employee morale and operational capacity, affecting long-term strategic execution.
Kaltura (KLTR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$258.00M
Dividend YieldN/A
Average Volume (3M)303.48K
Price to Earnings (P/E)―
Beta (1Y)2.13
Revenue Growth2.56%
EPS Growth59.00%
CountryUS
Employees563
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.01
Shares Outstanding154,491,500
10 Day Avg. Volume414,101
30 Day Avg. Volume303,483
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue1.56
Enterprise Value/Gross Profit2.25
Enterprise Value/Ebitda-36.27
Forecast
1Y Price Target
$2.63Price Target Upside64.37% Upside
Rating ConsensusHold
Number of Analyst Covering4
Kaltura Business Overview & Revenue Model
Company DescriptionKaltura, Inc. provides various Software-as-a-Service products and solutions and a Platform-as-a-Service. The company offers video products, such as webinars, virtual events, video sites, and virtual classrooms for video-based communication, collaboration, training, and customer experience; and video industry solutions, such as learning management system video and lecture capture solutions for educational institutions. It also provides a TV solution that allows to provide OTT advertising and subscription-based live and on-demand TV services for media companies and telecom operators. In addition, the company offers media services, such as APIs, SDKs, and experience components, including live, real-time, and on-demand video creation, ingestion, transcoding, management, search, security, distribution, publishing, engagement, monetization, monitoring, multi-tenancy, and analytics, as well as video and TV content management systems. It serves a range of industries, including financial services, high technology, healthcare, education, public sector, media, and telecommunications. The company was incorporated in 2006 and is headquartered in New York, New York.
How the Company Makes MoneyKaltura generates revenue primarily through a subscription-based model, which allows customers to access its video technology solutions on a recurring basis. The company offers various pricing tiers based on usage, features, and customer needs, which include monthly or annual subscriptions for its platform services. Key revenue streams include licensing fees from its video platform, transaction fees from video monetization services, and professional services such as implementation and customer support. Additionally, Kaltura has formed strategic partnerships with educational institutions, media companies, and corporate enterprises, which contribute to its earnings through long-term contracts and collaborative projects.
Kaltura Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of achievements and challenges. While there were several positive developments such as record profits, strong adjusted EBITDA, and strategic contract expansions, there were significant declines in M&T revenue, professional services, and a notable workforce reduction. The positive aspects were strong, but the lowlights indicate areas of concern, especially in specific segments.Q2-2025 Updates
Positive Updates
Record Non-GAAP Net Profit
Kaltura posted a record non-GAAP net profit of $2.5 million in the second quarter of 2025.
Strong Adjusted EBITDA
Adjusted EBITDA was $4.1 million, consistent with the record first quarter, representing the eighth consecutive quarter of profitability.
Subscription Revenue Growth
Subscription revenue increased by 3% year-over-year to $42.4 million.
Expansion of Vodafone Contract
Kaltura announced the extension and expansion of its long-term contract with Vodafone, highlighting continued leadership in the cloud TV market.
AI Deal Success
Closed first three AI deals, which included sales of new offerings, Content Lab and Genie.
Improved Gross Margin
Non-GAAP gross margin improved to 70%, up from 66% in the same quarter last year.
Cash Flow from Operations
Achieved $2.7 million in cash flow from operations, marking the highest second quarter result since 2020.
Negative Updates
Media and Telecom Revenue Decline
M&T total revenue declined by 14% year-over-year.
Professional Services Revenue Decrease
Professional services revenue was down 31% year-over-year, consistent with expected trends.
Sequential Revenue Drop in EE&T
EE&T segment showed a sequential drop in revenue, partly due to on-prem revenue in Q1 not repeated in Q2.
Reorganization and Workforce Reduction
Announced a reorganization plan that includes downsizing approximately 10% of the workforce.
Company Guidance
During the Kaltura Second Quarter 2025 Earnings Call, the company provided several key metrics and guidance for the upcoming quarters. Total revenue for the second quarter was reported at $44.5 million, marking a 1% year-over-year increase, with subscription revenue reaching $42.4 million, up 3% year-over-year. The company achieved a record non-GAAP net profit of $2.5 million and an adjusted EBITDA of $4.1 million, maintaining profitability for the eighth consecutive quarter. Gross retention rates in the EE&T segment reached their best level since Q4 2022, despite the M&T segment experiencing a 14% decline in revenue year-over-year. Kaltura anticipates sequential growth in M&T revenue in Q4 2025 driven by improved gross retention and new bookings. Additionally, Kaltura reported a strong non-GAAP gross margin of 70%, up from 66% in the previous year, and cash flow from operations was $2.7 million, the highest for a second quarter since 2020. The company is maintaining its full-year revenue guidance while increasing its adjusted EBITDA guidance, expecting it to be between $14.5 million and $16 million for the year.Kaltura Financial Statement Overview
Summary
Kaltura shows strong revenue growth and improving cash flow, but struggles with profitability. The company has a manageable debt level but negative returns on equity, indicating a need for strategic improvements to enhance profitability and shareholder value.Income Statement
Kaltura's income statement shows a strong gross profit margin of 69.36% in TTM, indicating efficient cost management. However, the company is struggling with profitability, as evidenced by a negative net profit margin of -0.74% and negative EBIT and EBITDA margins. Revenue growth is promising at 23.8% in TTM, suggesting potential for future profitability if cost structures are improved.65
Positive
Balance Sheet
The balance sheet reflects a moderate debt-to-equity ratio of 0.42 in TTM, showing manageable leverage. However, the return on equity is negative, indicating that the company is not generating profits from shareholders' equity. The equity ratio is not explicitly calculated, but the overall financial position suggests a need for improved profitability to enhance shareholder value.55
Neutral
Cash Flow
Kaltura's cash flow statement reveals a positive trend with a 37.62% growth in free cash flow in TTM, indicating improving cash generation capabilities. The operating cash flow to net income ratio is positive, suggesting that the company is generating cash from operations despite net losses. The free cash flow to net income ratio is close to 1, highlighting efficient cash management.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 181.35M | 178.72M | 175.17M | 168.81M | 165.02M | 120.44M |
| Gross Profit | 125.78M | 119.11M | 112.23M | 106.94M | 102.70M | 72.78M |
| EBITDA | -7.79M | -15.92M | -29.03M | -54.67M | -46.44M | -22.92M |
| Net Income | -1.35M | -31.32M | -46.37M | -68.50M | -59.35M | -58.76M |
Balance Sheet | ||||||
| Total Assets | 169.45M | 181.31M | 183.74M | 206.17M | 223.29M | 90.95M |
| Cash, Cash Equivalents and Short-Term Investments | 71.20M | 81.33M | 69.38M | 85.97M | 143.95M | 27.71M |
| Total Debt | 48.80M | 50.03M | 54.83M | 58.85M | 38.74M | 50.04M |
| Total Liabilities | 54.52M | 156.92M | 153.42M | 162.82M | 138.02M | 191.50M |
| Stockholders Equity | 114.92M | 24.39M | 30.32M | 43.35M | 85.27M | -100.54M |
Cash Flow | ||||||
| Free Cash Flow | 15.99M | 11.71M | -12.40M | -52.80M | -28.11M | 2.67M |
| Operating Cash Flow | 16.60M | 12.23M | -8.30M | -46.83M | -22.11M | 5.80M |
| Investing Cash Flow | -2.55M | -12.41M | -1.58M | -49.76M | -5.24M | -2.75M |
| Financing Cash Flow | -13.58M | -3.53M | 109.00K | -529.00K | 143.37M | -1.85M |
Kaltura Technical Analysis
Negative
1.60
Price Trends
1.66
Negative
1.87
Negative
2.03
Negative
Market Momentum
<0.01
Negative
46.79
Neutral
29.77
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 1.6 is below the 20-day moving average (MA) of 1.61, below the 50-day MA of 1.66, and below the 200-day MA of 2.03, indicating a bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 46.79 is Neutral, neither overbought nor oversold. The STOCH value of 29.77 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 80 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | 6.51B | -63.43 | -30.14% | ― | 14.29% | -14.42% | |
69 Neutral | 8.20B | 19.19 | -37.18% | ― | -0.04% | -5.07% | |
63 Neutral | 3.62B | -79.83 | -12.83% | ― | 11.41% | 33.76% | |
62 Neutral | 1.22B | 30.70 | 4.61% | ― | -2.32% | 7.70% | |
60 Neutral | $258.00M | ― | -94.40% | ― | 2.56% | 59.00% | |
60 Neutral | 76.04M | -3.71 | -20.05% | ― | 9.16% | 20.13% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
Performance Comparison
KLTR
Kaltura
1.60
0.31
24.03%
VRNT
Verint Systems
20.24
-5.21
-20.47%
VRNS
Varonis Systems
58.11
1.05
1.84%
DBX
Dropbox
31.36
6.38
25.54%
TENB
Tenable Holdings
29.92
-10.16
-25.35%
ZENV
Zenvia
1.45
-0.09
-5.84%
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.