Kaltura’s Earnings Call: Strong Growth Amid Seasonal Challenges

Kaltura, Inc. ((KLTR)) has held its Q1 earnings call. Read on for the main highlights of the call.

Kaltura’s recent earnings call painted a picture of robust growth and strategic advancements, despite some seasonal challenges. The company showcased strong revenue growth, improved profitability, and significant strides in AI product development, which have piqued the interest of a considerable portion of its customer base. While Kaltura faced typical seasonal declines in new subscription bookings and churn in its Media and Telecom (M&T) segment, the overall sentiment from the call was positive, with a promising outlook for the future.

Record-Breaking Revenue and Subscription Growth

Kaltura reported a total revenue of $47 million for Q1 2025, marking a 5% increase year-over-year. The company also achieved record subscription revenue of $44.9 million, up 9% from the previous year. This growth underscores Kaltura’s ability to expand its market presence and enhance its subscription offerings.

Strong Adjusted EBITDA and Gross Margin

The company achieved a record adjusted EBITDA of $4.1 million, marking the seventh consecutive quarter of profitability. Additionally, Kaltura’s non-GAAP gross margin increased to 70%, up from 65% the previous year, reflecting improved operational efficiency and cost management.

AI Product Development and Adoption

Kaltura’s advancements in AI, particularly with its Genie agents and Content Lab offerings, have attracted interest from over 150 customers, representing roughly 20% of its customer base. This interest highlights the growing demand for AI-driven solutions in the market.

Growing ARR and Net Dollar Retention

The company reported an annualized recurring revenue (ARR) of $174.8 million, a 7% increase year-over-year. Net dollar retention also climbed to 107%, the highest level since Q1 2022, indicating strong customer retention and expansion within existing accounts.

Industry Recognition and Awards

Kaltura’s TV Genie received the Product of the Year Award for streaming at the 2025 NAB Show. Additionally, the company was recognized by Gartner as a representative vendor in their market guide, further solidifying its position as a leader in the industry.

Seasonal Decline in New Subscription Bookings

The company experienced a seasonal decline in new subscription bookings, with one 7-digit deal and fifteen 6-digit deals, mirroring last year’s performance. This trend is typical for the first quarter and was anticipated by the company.

M&T Segment Churn

The Media and Telecom segment experienced expected churn, impacting gross retention. Despite this, the segment’s revenue still grew by 2% year-over-year, demonstrating resilience in a challenging market.

Sequential Decrease in Remaining Performance Obligations

Kaltura reported a 9% sequential decrease in remaining performance obligations (RPO), despite a 12% year-over-year increase. This reflects the typical seasonal decline in new bookings and renewals during the first quarter.

Lower Professional Services Revenue

Professional services revenue was $2.1 million, down 42% year-over-year, consistent with expected trends. This decline aligns with the company’s strategic focus on subscription and AI-driven revenue streams.

Forward-Looking Guidance

Kaltura’s forward-looking guidance remains optimistic, with the company maintaining its cash flow forecast for the full year. The adjusted EBITDA guidance has been increased, with expectations of double-digit revenue growth and achieving a Rule of 30 by 2028. Kaltura continues to invest in AI, with plans to enhance its Genie agents and expand its Content Lab offerings, aiming to capitalize on the growing demand for AI solutions.

In summary, Kaltura’s earnings call highlighted a strong performance with record-breaking revenue and subscription growth, robust profitability, and strategic advancements in AI. Despite facing some seasonal challenges, the company’s forward-looking guidance remains positive, with expectations of continued growth and innovation. Investors and market enthusiasts can look forward to Kaltura’s ongoing success and its commitment to leveraging AI to drive future growth.