Video products and video industry solutions provider Kaltura, Inc. (KLTR) has delivered better-than-estimated numbers for the first quarter on both its top-line and bottom-line fronts. Consequently, shares of the company gained 5.7% during trading hours and a further 4% during the extended trading session on Tuesday.
Revenue jumped 10.6% year-over-year to $41.72 million, beating estimates by $1.65 million. The net loss per share at $0.09 came in narrower than expectations by $0.02. While subscription revenue jumped 14% to $37 million, annual recurring revenue increased 15% to $147.7 million during this period.
Notably, the gross margin of the company expanded to 64% from 60% a year ago. Furthermore, Kaltura has been focusing on expanding its sales pipeline and moving down-market. Its sales pipeline for the new Event platform now includes Fortune 100 and 500 companies. In its move down-market, Kaltura is optimizing and scaling its digital operations, furthering self-serve offerings and catering to large telcos as well as mid-sized companies.
Management Weighs In
The Co-Founder, Chairman, and CEO of Kaltura, Ron Yekutiel, commented, “We continue to believe that our exciting new lower-touch and self-serve products, including our enterprise event platform, coupled with a larger salesforce, will enable us to meet our growth targets.”
Looking ahead to fiscal 2022, Kaltura sees total revenue land to be between $173.3 million and $178.2 million. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) is estimated to be negative between $27 million and $32 million.
Analyst’s Take
Needham analyst Ryan Koontz has reiterated a Buy rating on the stock alongside a price target of $6. Overall, the Street is cautiously optimistic on Kaltura, with a Moderate Buy consensus rating based on four Buys and Holds each.
The average Kaltura price target of $3.64 implies a 144.3% potential upside. That’s after a 59.5% decline in the share price so far this year.
Insiders’ Sentiments
TipRanks data indicates corporate insiders are lapping up Kaltura shares, and the insider confidence signal remains positive in Kaltura.
Closing Note
After the double-digit slide in share price in 2022, this first quarter performance should shore up investor confidence in the stock. Moreover, an uptick in subscription revenue, expanding sale pipeline, and expanded focus on companies of varying sizes bode well for Kaltura.
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