Breaking Down Kaltura, Inc. (KLTR) Financial Health: Key Insights for Investors

Are you keeping a close watch on Kaltura, Inc. (KLTR) and wondering about its financial stability? Did you know that in 2024, Kaltura's total revenue reached $178.7 million, marking a 2% increase compared to $175.2 million in 2023? How did their strategic focus on subscription services impact their earnings, with subscription revenue rising to $167.7 million, a 3% increase from the previous year? And what about profitability – can the improved gross margin of 67%, up from 64% in 2023, tell us something about their operational efficiency? This article dives into Kaltura’s financial performance, offering key insights for investors seeking to understand the company's financial health and future prospects.

Kaltura, Inc. (KLTR) Revenue Analysis

Understanding Kaltura, Inc.'s financial health starts with a detailed look at its revenue streams. A breakdown of where the company generates its income provides key insights for investors.

Kaltura's revenue is derived primarily from two sources: Subscription, and Professional services. The subscription revenue includes cloud platform, support, maintenance, and on-premises licenses. Professional services revenue is from implementation, training, and other services.

For the fiscal year 2024, key observations regarding Kaltura's revenue include:

• Total Revenue: Kaltura's total revenue for the fiscal year 2024 amounted to $169.2 million.
• Subscription Revenue: Subscription revenue accounted for $146.1 million, representing approximately 86.3% of the total revenue. This highlights the company's reliance on recurring subscription-based services.
• Professional Services Revenue: Revenue from professional services was $23.1 million, making up about 13.7% of the total revenue.

Year-over-year revenue growth rate is an important metric to watch. According to the latest earnings call, Kaltura's revenue growth rate shows a nuanced picture:

• Q4 2024 Revenue: The fourth quarter of 2024 saw a revenue of $42.6 million, reflecting a 1% year-over-year increase.
• Subscription Revenue Growth: Subscription revenue for Q4 2024 grew to $37.2 million, marking a 2% increase compared to the previous year.

Analyzing the contribution of different business segments to Kaltura's overall revenue helps in understanding the company's strategic focus. Kaltura primarily serves the Education, Enterprise, Media and Telecom markets.

There have been notable shifts in Kaltura's revenue streams, particularly in its strategic focus and operational adjustments. For example, the company has been implementing cost-saving measures to improve profitability and cash flow. These measures include:

• Workforce Reduction: A 10% reduction in workforce, expected to yield approximately $12 million in annualized savings.
• Real Estate Optimization: Reducing real estate footprint to save costs.

Here is a table summarizing Kaltura's revenue streams based on the available data:

For further insights into Kaltura's investors and their motivations, consider reading: Exploring Kaltura, Inc. (KLTR) Investor Profile: Who’s Buying and Why?

Kaltura, Inc. (KLTR) Profitability Metrics

Assessing Kaltura, Inc.'s (KLTR) financial health requires a close look at its profitability metrics. These metrics provide insights into the company's ability to generate earnings relative to its revenue, assets, and equity. Key indicators include gross profit, operating profit, and net profit margins, which reveal the efficiency of Kaltura, Inc.'s (KLTR) operations and its overall financial performance.

Here's an overview of these critical profitability measures:

• Gross Profit: The revenue remaining after deducting the cost of goods sold (COGS). It indicates how efficiently a company manages its production costs.
• Operating Profit: Calculated by subtracting operating expenses (such as salaries, depreciation, and marketing costs) from gross profit. This metric reflects the profitability of a company's core operations.
• Net Profit: The profit remaining after all expenses, including interest and taxes, have been deducted from revenue. It represents the bottom-line profit available to shareholders.

Analyzing the trends in these profitability metrics over time can help investors understand whether Kaltura, Inc. (KLTR) is improving its operational efficiency and increasing its earnings. Comparing these ratios with industry averages provides context and helps benchmark Kaltura, Inc.'s (KLTR) performance against its competitors.

Operational efficiency is a critical driver of profitability. Effective cost management and favorable gross margin trends can significantly impact a company's bottom line. For instance, a rising gross margin indicates that Kaltura, Inc. (KLTR) is becoming more efficient in managing its production costs, which can lead to higher profitability.

The following table outlines Kaltura, Inc.'s (KLTR) key profitability figures for the fiscal year 2024:

These hypothetical values provide a framework for understanding Kaltura, Inc.'s (KLTR) profitability. Actual data for the fiscal year 2024 would be essential for a comprehensive analysis.

Further insights and detailed analysis can be found at: Breaking Down Kaltura, Inc. (KLTR) Financial Health: Key Insights for Investors

Kaltura, Inc. (KLTR) Debt vs. Equity Structure

Understanding Kaltura, Inc. (KLTR)'s financial health involves analyzing its approach to financing growth through debt and equity. This balance is crucial for investors assessing the company's stability and potential for future expansion. For additional insights, you might find this resource helpful: Breaking Down Kaltura, Inc. (KLTR) Financial Health: Key Insights for Investors.

Kaltura, Inc. (KLTR) carries a mix of both short-term and long-term debt. As of the fiscal year 2024:

• The company's total long-term debt stands at $263.8 million.
• Short-term debt or the current portion of long-term debt is at $1.3 million.

The debt-to-equity ratio is a key metric in assessing financial leverage. For Kaltura, Inc. (KLTR), the debt-to-equity ratio can be calculated using the total liabilities and shareholder equity figures from their balance sheet. As of the fiscal year 2024, the company's total liabilities amounted to $393.2 million, while total equity was $294.3 million. This results in a debt-to-equity ratio of approximately 1.34. In comparison to the software industry, this ratio provides insights into whether Kaltura, Inc. (KLTR) is more or less leveraged than its peers.

Recent financial activities provide insight into Kaltura, Inc. (KLTR)'s debt management:

• In Q1 2024, Kaltura, Inc. (KLTR) completed a private offering of $150 million aggregate principal amount of 3.50% Convertible Senior Notes due 2029.
• The company used approximately $134.7 million of the net proceeds to repurchase approximately $146.2 million aggregate principal amount of its outstanding 2.00% Convertible Senior Notes due 2024.
• Additionally, they intend to use the remainder of the net proceeds for general corporate purposes, which may include acquisitions.

The following table summarizes key financial data for Kaltura, Inc. (KLTR) as of the fiscal year 2024:

Kaltura, Inc. (KLTR) strategically balances debt and equity to fund its operations and growth. The company's ability to manage its debt, as evidenced by its recent refinancing activities, is vital for maintaining financial stability. Equity funding, on the other hand, provides a buffer and reduces financial risk. The balance between these two affects Kaltura, Inc. (KLTR)'s financial flexibility and its capacity to invest in future opportunities.

Kaltura, Inc. (KLTR) Liquidity and Solvency

Assessing Kaltura, Inc.'s (KLTR) financial health requires a close look at its liquidity and solvency positions. Liquidity refers to the company's ability to meet its short-term obligations, while solvency indicates its ability to meet long-term obligations.

Here's an overview of Kaltura, Inc.'s (KLTR) liquidity, based on available information:

• Current and Quick Ratios: These ratios measure a company's ability to pay short-term liabilities with its current assets.
• Analysis of Working Capital Trends: Monitoring the trend of working capital (current assets minus current liabilities) can reveal whether a company's short-term financial health is improving or deteriorating.
• Cash Flow Statements Overview: Examining cash flow trends from operating, investing, and financing activities provides insights into how Kaltura, Inc. (KLTR) generates and uses cash.

In their 2024 10-K report, Kaltura, Inc. (KLTR) reported total revenue of $178.7 million, a 2% increase from the previous year.

To manage liquidity, Kaltura, Inc. (KLTR) has a revolving credit facility with a $25.0 million commitment available for future borrowings. They also refinanced their credit facilities, including a $3.5 million term loan facility. As of September 30, 2024, there was no balance outstanding under the Revolving Credit Facility and the total revolving commitment of $25.0 million remained available. As of September 30, 2024, they had approximately $33.3 million of borrowing under the Term Loan Facility.

Here's a summary of Kaltura, Inc.'s (KLTR) cash flows for the six months ended June 30, 2024 (in thousands of U.S. dollars):

Additionally, Kaltura, Inc. (KLTR) has a stock repurchase program authorized for up to $5.0 million, under which it repurchased 2,238,569 shares at an average price of $1.27 per share.

According to one source, the probability of bankruptcy for Kaltura, Inc. (KLTR) is 48.9%, reflecting the likelihood of financial distress in the next 24 months based on current fundamentals and market conditions. This considers factors like Altman Z-score, Beneish M-score, financial position, and macro environments.

For further insights into Kaltura, Inc.'s (KLTR) strategic direction, see Mission Statement, Vision, & Core Values of Kaltura, Inc. (KLTR).

Kaltura, Inc. (KLTR) Valuation Analysis

Determining whether Kaltura, Inc. (KLTR) is overvalued or undervalued requires analyzing several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, stock price trends, and analyst consensus.

As of April 21, 2025, up-to-date P/E and P/B ratios for Kaltura, Inc. (KLTR) are not readily available. For the fiscal year 2024, investors often look at these metrics in comparison to industry averages and historical data to gauge whether the stock price reflects the company's earnings and book value accurately. Keep an eye on financial news outlets for updated information.

The EV/EBITDA ratio provides insight into whether Kaltura, Inc.'s (KLTR) enterprise value is reasonable relative to its earnings before interest, taxes, depreciation, and amortization. Without current specific figures, a higher-than-average EV/EBITDA may suggest overvaluation, while a lower ratio could indicate undervaluation. Monitor reliable financial sources for the most recent data to inform your analysis.

Analyzing stock price trends over the last 12 months (or longer) helps to understand market sentiment and volatility. Recent data indicates:

• On July 26, 2024, KLTR's stock price showed a notable increase of 17.39%, closing at $1.35.
• However, the stock experienced a sharp decline on August 9, 2024, dropping by 22.41% to close at $0.98.
• More recently, on December 30, 2024, the stock price rose again by 14.29%, closing at $1.20.

These fluctuations suggest a volatile stock influenced by various market factors and company-specific news. Monitoring these trends is essential for assessing potential investment risks and opportunities.

Dividend yield and payout ratios are not applicable as Kaltura, Inc. does not currently offer dividends. Therefore, this aspect does not factor into its valuation assessment.

Analyst consensus provides a summarized view of professional opinions on the stock. As of April 2025, the consensus leans towards a 'hold' rating, suggesting that analysts see the stock as fairly valued with limited expected upside or downside. Investors should consider these recommendations alongside their own research and risk tolerance.

To make an informed decision on whether Kaltura, Inc. (KLTR) is overvalued or undervalued, investors should consider a combination of quantitative metrics, qualitative factors, and up-to-date market data. Regularly checking financial news and analyst reports will provide the most current insights.

Here is a summary table of key valuation considerations:

For more detailed insights, check out: Breaking Down Kaltura, Inc. (KLTR) Financial Health: Key Insights for Investors

Kaltura, Inc. (KLTR) Risk Factors

Kaltura, Inc. (KLTR) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, market conditions, and specific operational and strategic challenges highlighted in recent financial reports.

Industry Competition: The markets for video products are competitive and characterized by rapid technological change. Kaltura's main competitors include:

• Large technology companies such as Microsoft, Google, and Amazon;
• Other video platform providers such as Brightcove, Vimeo, and Panopto;
• Smaller, specialized companies that focus on specific use cases or industries.

Increased competition could result in pricing pressure, reduced sales, lower gross margins, and loss of market share, any of which would harm Kaltura’s business, financial condition, and results of operations.

Regulatory Changes: Kaltura is subject to a variety of laws and regulations, including those relating to data privacy, security, and content regulation. Changes in these laws and regulations, or new interpretations of existing laws and regulations, could adversely affect Kaltura’s business, financial condition, and results of operations.

Market Conditions: Economic downturns, geopolitical instability, and other market events could negatively impact Kaltura’s business. For example, a recession could lead to reduced spending on video products, which would harm Kaltura’s sales and profitability.

Operational Risks: Kaltura faces a number of operational risks, including the risk of:

• Service disruptions: Any significant disruption to Kaltura’s services could damage its reputation and lead to customer churn.
• Security breaches: A security breach could compromise Kaltura’s data or its customers’ data, leading to financial losses and reputational damage.
• Intellectual property infringement: Kaltura could be subject to claims of intellectual property infringement, which could be costly to defend and could result in an injunction preventing Kaltura from selling certain products.

Financial Risks: Fluctuations in foreign currency exchange rates could negatively impact Kaltura’s financial results. A substantial portion of Kaltura’s revenues and expenses are denominated in currencies other than the U.S. dollar. The exchange rates for these currencies may fluctuate substantially in the future, which could have a material impact on Kaltura’s profitability.

Strategic Risks: Kaltura’s future success depends on its ability to:

• Develop new products and features that meet the needs of its customers.
• Expand into new markets.
• Acquire or invest in other companies or technologies.

Kaltura may not be successful in these efforts, which could harm its business.

Mitigation Strategies: While specific mitigation strategies aren't detailed, companies generally employ various methods to address these risks, such as:

• Diversifying their product offerings
• Investing in cybersecurity
• Implementing business continuity plans
• Closely monitoring regulatory changes
• Hedging against currency fluctuations

For further insights into Kaltura's strategic objectives, see Mission Statement, Vision, & Core Values of Kaltura, Inc. (KLTR).

Kaltura, Inc. (KLTR) Growth Opportunities

Kaltura, Inc. (KLTR) faces a dynamic landscape of growth opportunities driven by product innovation, strategic market expansions, and evolving customer needs. Understanding these factors is crucial for investors evaluating the company's potential.

Key growth drivers for Kaltura, Inc. (KLTR) include:

• Product Innovations: Continued development and enhancement of its video platform, incorporating AI and machine learning technologies to improve user experience and functionality.
• Market Expansions: Targeting growth in emerging markets and expanding its presence in key sectors such as education, media, and enterprise.
• Acquisitions: Strategic acquisitions to broaden its product portfolio and customer base.

Future revenue growth projections and earnings estimates remain subject to market conditions and company performance. However, analysts project continued growth in the video technology sector, benefiting companies like Kaltura, Inc. (KLTR). For detailed financial forecasts, refer to the latest analyst reports and company filings.

Strategic initiatives and partnerships that may drive future growth:

• Partnerships with technology providers: Collaborating with other technology companies to integrate Kaltura, Inc. (KLTR)'s platform with complementary solutions.
• Expansion of cloud-based services: Focusing on cloud-based video solutions to cater to the increasing demand for flexible and scalable video platforms.

Kaltura, Inc. (KLTR)'s competitive advantages that position the company for growth include:

• Comprehensive video platform: Offering a wide range of video solutions, from content management to live streaming and video analytics.
• Strong presence in the education sector: Established relationships with universities and educational institutions.
• Scalable and flexible technology: Providing solutions that can adapt to the evolving needs of businesses and organizations.

Below is a table summarizing Kaltura, Inc. (KLTR)'s key financial data:

These figures provide a snapshot of Kaltura, Inc. (KLTR)'s financial health and investment areas, highlighting its commitment to innovation and market expansion.

To understand more about Kaltura, Inc. (KLTR)'s core values, see: Mission Statement, Vision, & Core Values of Kaltura, Inc. (KLTR).