Kaltura (KLTR) AI Stock Analysis

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Kaltura

(NASDAQ:KLTR)

Rating:68Neutral

Price Target:

$2.50

▲( 15.74% Upside)

Kaltura's overall stock score reflects strong revenue growth and positive momentum from technical indicators. The company's profitability and valuation remain areas of concern due to ongoing net losses and a negative P/E ratio. Nevertheless, strategic initiatives like the stock repurchase program and advancements in AI products bolster investor confidence. Continued focus on improving profitability could enhance the stock's attractiveness.

Positive Factors

Financial Performance

KLTR delivered solid 1Q25 results and raised adjusted EBITDA guidance ahead of consensus estimates.

Product Innovation

New AI-enabled features are propelling differentiation and growth.

Negative Factors

Growth Challenges

The path to achieving the Rule of 30 framework includes significant improvements in EBITDA margins, which may be challenging.

Revenue Guidance

2Q revenue guidance implies a step down due to anticipated churn in media and telecommunications.

Kaltura (KLTR) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$331.82M

Dividend YieldN/A

Average Volume (3M)293.48K

Price to Earnings (P/E)―

Beta (1Y)1.92

Revenue Growth2.40%

EPS Growth54.99%

CountryUS

Employees563

SectorTechnology

Sector Strength75

IndustrySoftware - Infrastructure

Share Statistics

EPS (TTM)0.02

Shares Outstanding153,619,170

10 Day Avg. Volume301,603

30 Day Avg. Volume293,484

Financial Highlights & Ratios

PEG Ratio-0.55

Price to Book (P/B)11.23

Price to Sales (P/S)0.00

P/FCF Ratio23.95

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$3.13

Price Target Upside44.91% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering4

Kaltura Business Overview & Revenue Model

Company DescriptionKaltura, Inc. is a technology company that provides a video cloud platform designed to power any video experience. The company operates in the software and media sectors, offering a range of products and services that include video creation, management, and distribution solutions. Kaltura's platform supports various use cases such as video conferencing, webinars, virtual classrooms, and media services, catering to businesses, educational institutions, and media companies.

How the Company Makes MoneyKaltura makes money primarily through a subscription-based revenue model, offering its cloud-based video platform on a software-as-a-service (SaaS) basis. Key revenue streams include subscription fees from organizations that use its video solutions for enterprise communications, educational content delivery, and media distribution. The company also generates revenue from professional services, which include implementation, customization, and support services. Significant partnerships with technology providers and service integrators enhance its market reach and contribute to its earnings by enabling joint solutions and co-marketing efforts.

Kaltura Financial Statement Overview

Summary

Kaltura has shown improvements in profitability and cash flow, with positive revenue growth and increased cost efficiency. The Net Income turning positive is a significant milestone. However, the high Debt-to-Equity ratio and low Equity Ratio highlight potential financial risks.

Income Statement

Positive

Kaltura has shown a consistent revenue growth trajectory, with a notable revenue increase of 2% from 2023 to 2024. Gross Profit Margin has increased to 66.7% in 2024, suggesting improved cost efficiency. However, the company still experiences negative EBIT and EBITDA margins, indicating ongoing operational challenges. Net Profit Margin turned positive in 2024, a significant improvement from previous losses, which is a positive sign but still requires careful monitoring.

Balance Sheet

Neutral

The Debt-to-Equity ratio has improved to 2.05 in 2024 from 1.81 in 2023, showing better leverage management, but it remains fairly high. The Return on Equity (ROE) improved significantly, reaching 128.5% in 2024, reflecting the company's improved profitability. However, the Equity Ratio is low at 13.45%, indicating potential risks from a low equity base relative to total assets.

Cash Flow

Positive

Kaltura's cash flow situation has improved, with Free Cash Flow turning positive in 2024 and growing significantly from the previous year. The Operating Cash Flow to Net Income ratio is 0.39, showing some reliance on operating earnings for cash flow generation. The Free Cash Flow to Net Income ratio is 0.37, indicating that some profit is being effectively converted into cash flow.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
178.72M	175.17M	168.81M	165.02M	120.44M
	Gross Profit
119.11M	112.23M	106.94M	102.70M	72.78M
	EBIT
-24.10M	-35.31M	-55.14M	-32.67M	-4.98M
	EBITDA
-15.92M	-29.03M	-52.43M	-30.95M	-812.00K
	Net Income Common Stockholders
-31.32M	-46.37M	-68.50M	-59.35M	-58.76M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
81.33M	69.38M	85.97M	143.95M	27.71M
	Total Assets
181.31M	183.74M	206.17M	223.29M	90.95M
	Total Debt
50.03M	54.83M	58.85M	38.74M	50.04M
	Net Debt
16.97M	18.14M	14.22M	-105.21M	22.33M
	Total Liabilities
156.92M	153.42M	162.82M	138.02M	191.50M
	Stockholders Equity
24.39M	30.32M	43.35M	85.27M	-100.54M
Cash Flow		Free Cash Flow
11.71M	-12.40M	-52.80M	-28.11M	2.67M
	Operating Cash Flow
12.23M	-8.30M	-46.83M	-22.11M	5.80M
	Investing Cash Flow
-12.41M	-1.58M	-49.76M	-5.24M	-2.75M
	Financing Cash Flow
-3.53M	109.00K	-529.00K	143.37M	-1.85M

Kaltura Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price2.16

Price Trends

50DMA

2.02

Positive

100DMA

2.17

Negative

200DMA

1.88

Positive

Market Momentum

MACD

0.04

Positive

RSI

53.17

Neutral

STOCH

27.66

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KLTR, the sentiment is Neutral. The current price of 2.16 is below the 20-day moving average (MA) of 2.17, above the 50-day MA of 2.02, and above the 200-day MA of 1.88, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 53.17 is Neutral, neither overbought nor oversold. The STOCH value of 27.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KLTR.

Kaltura Risk Analysis

Kaltura disclosed 79 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 3 New Risks

We cannot guarantee we will conduct share repurchases in any specified amounts or particular frequency. Q4, 2024

If our plan to acquire or invest in AI-focused or niche vertical businesses is not successful, our future growth could be limited and our operating results could suffer. Q4, 2024

Our expanded use of AI and generative AI technologies, including their incorporation into our offerings, may expose us to increased liability and new regulatory, compliance, and ethical risks. Q4, 2024

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
DBX	75 Outperform	$8.07B	18.78	-60.11%	―	0.79%	0.59%
VRNT	72 Outperform	$1.06B	16.98	6.35%	―	-0.13%	263.78%
KLTR	68 Neutral	$331.82M	―	-89.29%	―	2.40%	54.99%
VRNS	66 Neutral	$5.21B	―	-22.21%	―	13.34%	13.71%
ZENV	64 Neutral	$65.55M	―	-18.19%	―	20.38%	71.64%
Sector *	61 Neutral	$11.41B	10.19	-7.05%	2.95%	7.46%	-10.52%
TENB	60 Neutral	$3.99B	―	-12.09%	―	11.79%	35.35%

* Technology Sector Average

Performance Comparison

KLTR

Kaltura

2.16

0.99

84.62%

VRNT

Verint Systems

17.06

-13.57

-44.30%

VRNS

Varonis Systems

46.76

1.69

3.75%

DBX

Dropbox

28.74

5.85

25.56%

TENB

Tenable Holdings

32.02

-11.72

-26.79%

ZENV

Zenvia

1.25

-2.18

-63.56%

Kaltura Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q1-2025)

% Change Since: -1.82%|

Next Earnings Date:Aug 06, 2025

Earnings Call Sentiment Positive

Kaltura's earnings call demonstrated strong revenue growth, improved profitability, and significant advancements in AI product development, which generated interest among a substantial portion of its customer base. However, the company faced typical seasonal declines in new subscription bookings and M&T segment churn, which impacted its gross retention. Despite these lowlights, the overall performance and future outlook remain positive.

Q1-2025 Updates

Positive Updates

Record-Breaking Revenue and Subscription Growth

Total revenue for Q1 2025 was $47 million, up 5% year-over-year, with record subscription revenue of $44.9 million, up 9% year-over-year.

Strong Adjusted EBITDA and Gross Margin

Adjusted EBITDA reached a record $4.1 million, marking the seventh consecutive quarter of profitability. Non-GAAP gross margin increased to 70%, up from 65% the previous year.

AI Product Development and Adoption

Kaltura's AI products, including Genie agents and the Content Lab offerings, have sparked interest from over 150 customers, constituting roughly 20% of Kaltura's customer base.

Growing ARR and Net Dollar Retention

Annualized recurring revenue reached $174.8 million, up 7% year-over-year. Net dollar retention climbed to 107%, the highest level since Q1 2022.

Industry Recognition and Awards

Kaltura received the Product of the Year Award for streaming at the 2025 NAB Show for its TV Genie, and was recognized by Gartner as a representative vendor in their market guide.

Negative Updates

Seasonal Decline in New Subscription Bookings

New subscription bookings in Q1 were seasonally low, with one 7-digit deal and fifteen 6-digit deals, similar to last year.

M&T Segment Churn

The media and telecom (M&T) segment experienced expected churn, impacting gross retention. The segment's revenue grew only 2% year-over-year.

Sequential Decrease in Remaining Performance Obligations

RPO decreased by 9% sequentially, despite a 12% year-over-year increase, reflecting the typical seasonal decline in new bookings and renewals in Q1.

Lower Professional Services Revenue

Professional services revenue was $2.1 million, down 42% year-over-year, consistent with expected trends.

Company Guidance

During Kaltura's first quarter 2025 earnings call, the company reported a record total revenue of $47 million, marking a 5% year-over-year increase, with subscription revenue reaching $44.9 million, up 9% year-over-year. The company achieved a record ARR with a 7% increase year-over-year and a 12% year-over-year growth in RPO. The adjusted EBITDA for the quarter was a record $4.1 million, reflecting the seventh consecutive quarter of adjusted EBITDA profitability. Kaltura also noted a strong non-GAAP gross margin of 70%, up from 65% the previous year. While the company consumed $1 million in cash for operations, consistent with last year's first quarter, it maintained its cash flow forecast for the full year. The net dollar retention rate climbed to 107%, the highest since the first quarter of 2022, despite an expected temporary decline in M&T churn. Kaltura continues to invest in AI, enhancing its Genie agents and expanding its Content Lab offerings, with more than 150 customers showing interest in their AI beta program. The company also increased its adjusted EBITDA guidance for the year, aiming for double-digit revenue growth and a Rule of 30 by 2028.

Kaltura Corporate Events

Stock BuybackFinancial Disclosures

Kaltura Announces $15 Million Stock Repurchase Program

Positive

Mar 21, 2025

On March 21, 2025, Kaltura announced a new stock repurchase program authorized by its Board of Directors, allowing for the repurchase of up to $15 million of its common stock, replacing a previous $5 million program. This move reflects the Board’s confidence in the company’s long-term strategy and its belief that the current share price is undervalued. Additionally, Kaltura reaffirmed its financial guidance for the first quarter and full year of 2025, expecting subscription revenue growth and positive adjusted EBITDA, indicating stable financial expectations despite market conditions.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.