KLTR — Kaltura, Inc.

Kaltura (KLTR) Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics:

• Total Revenue: $44.6 million, down 5% year-over-year but exceeding guidance of $42.6 million to $43.4 million.
• Subscription Revenue: $43.2 million, down 4% year-over-year, but up 1% sequentially, surpassing guidance of $41.2 million to $42 million.
• Adjusted EBITDA: $5.7 million, up 37% year-over-year and exceeding guidance of $2.3 million to $3.3 million.
• GAAP Net Loss: $3.8 million, compared to a loss of $1.1 million in Q1 2025.
• Cash Flow: Positive cash flow from operations for the first time in Q1, generating $0.7 million.
• Net Dollar Retention: 95%, down from 107% in the prior year, reflecting elevated churn in media and telecom.
• Remaining Performance Obligations (RPO): $154.5 million, flat year-over-year.

2. Strategic Updates and Business Highlights:

• Kaltura is transitioning from a video platform to an AI-powered digital experience platform, integrating new capabilities from recent acquisitions (eSelf and PathFactory).
• Launched new AI features, including conversational Avatar technology and an Avatar Video Production Studio.
• Achieved ISO/IEC 42001 certification for AI Management Systems, emphasizing commitment to responsible AI deployment.
• Strong engagement in customer journeys, employee journeys, learner journeys, and audience journeys, with notable traction in sectors like technology, healthcare, and education.
• Completed the acquisition of PathFactory, enhancing content intelligence and journey orchestration capabilities.

3. Forward Guidance and Outlook:

• Q2 2026 Guidance: Subscription revenue expected to grow 2% to 4% year-over-year; total revenue to grow 2% to 3%.
• Full Year 2026 Guidance: Subscription revenue expected to grow 1% to 3%; total revenue to grow 1% to 2%; adjusted EBITDA projected between $13.8 million and $15.2 million.
• Anticipated gradual revenue growth throughout the year, with contributions from new product portfolios expected in the second half of 2026.

4. Bad News, Challenges, or Points of Concern:

• Revenue Decline: Total revenue down 5% year-over-year, driven by elevated churn in media and telecom sectors.
• Net Dollar Retention: Declined to 95%, indicating ongoing challenges in retaining existing customers, particularly in the media and telecom verticals.
• Professional Services Revenue: Down 50% sequentially and 31% year-over-year, reflecting a strategic shift towards recurring subscription revenue.
• Operating Expenses: Although down year-over-year, expenses remain high due to integration costs from acquisitions and foreign exchange headwinds.

5. Notable Q&A Insights:

• Customer Engagement: Discussions with customers are shifting from deploying video tools to broader strategies for improving lead conversion and scaling personalized engagement.
• Sales Cycle: No significant elongation in sales cycles anticipated despite the introduction of new functionalities; typical long sales cycles expected to continue.
• AI Integration: Kaltura is enabling customers to integrate AI-led digital experiences into their workflows, enhancing flexibility and connectivity with existing systems.
• Market Interest: Strong interest from various sectors, including tech and healthcare, in Kaltura’s new offerings, with a balanced pipeline between upsells and new logos.

Overall, Kaltura's Q1 2026 results indicate a strong operational performance despite some revenue challenges, with a clear focus on integrating AI capabilities and expanding customer engagement across various sectors. The company is optimistic about future growth driven by new product offerings and strategic acquisitions.