What is the revenue and EPS growth rate for Kaltura year over year?

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What is Kaltura's gross profit margin?

What factors drove the changes in Kaltura's revenue and profit?

What were the key takeaways from Kaltura’s earnings call?

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What does Kaltura do and what are its main business segments?

What guidance did Kaltura's management provide for the next earnings period?

- **Record Q3 Performance**: $43.9M total revenue, $4.2M EBITDA (72% YoY growth), and $2M non-GAAP net profit.
- **Strategic Acquisition**: $27M eSelf.ai deal to integrate AI avatars, targeting 2026 commercialization and 6.2% anti-dilutive share reduction.
- **AI Expansion**: Transitioning to immersive virtual agents for CX/EX, with 5 Q3 AI deals and pipeline growth.
- **Financial Strength**: $84.1M cash, +$9.3M operating cash flow, and 5% YoY expense reduction.
- **Q4 Guidance**: Sequential revenue increase to $45-45.7M, adjusted EBITDA up to $5.2M.
- **Share Buyback**: 14.4M shares repurchased, reducing outstanding shares by 9.2%.


**【CEO Summary Section】**
- **Q3 2025 Financial Highlights**: Total revenue of $43.9 million (down 1% YoY), subscription revenue of $42 million, and record adjusted EBITDA of $4.2 million (up 72% YoY). Non-GAAP net profit was $2 million, marking the fifth consecutive quarter of profitability.
- **eSelf.ai Acquisition**: Signed definitive agreement to acquire eSelf.ai for $27 million (cash and shares), closing expected in Q4. The acquisition aims to integrate conversational AI avatars into Kaltura's video platform, targeting CX/EX solutions for SMBs and enterprises.
- **AI Strategy Evolution**: Transitioning from reactive AI agents (Genie) to proactive, immersive virtual agents with real-time video creation capabilities. New offerings include avatar-powered content creation tools and self-serve conversational agents for sales, customer care, and training.
- **Pipeline and Outlook**: Q4 guidance includes sequential revenue increase to $45-45.7 million, with subscription revenue持平 at $41.6-42.3 million. Full-year adjusted EBITDA raised to $16.6-17.6 million (up $1.8 million YoY).

**【CFO Financial Commentary】**
- **Revenue Breakdown**: Subscription ($42M), professional services ($1.9M). EE&T segment revenue $32.4M (flat YoY), M&T $11.5M (down 4% YoY but +3% QoQ). Gross margin improved to 70% (up from 67% YoY).
- **Cost Management**: Operating expenses reduced 5% YoY to $32.2M. Adjusted EBITDA margin expanded to 9.6% (vs. 5.6% YoY). Cash flow from operations $9.3M, ending Q3 with $84.1M in cash.
- **eSelf Impact**: Minimal 2025 financial impact; incremental revenue expected from Q2 2026 onward. Deal structure includes $7.5M upfront, $12.5M earn-out, and 4.7M shares (3% dilution post-closing).
- **Share Repurchase**: Repurchased 14.4M shares from Goldman Sachs for $16.6M (25% discount), reducing outstanding shares by 9.2%.

**【Q&A Key Highlights】**
- **Acquisition Timeline**: eSelf technology integration to begin Q4, with commercialization expected mid-2026. Sales teams will be trained to sell new avatar-based solutions alongside existing products.
- **Customer Adoption**: 5 AI deals closed in Q3 (Content Lab, Genie), pipeline suggests accelerated AI adoption in Q4. Customers excited about immersive agents' ability to integrate with Kaltura's video ecosystem.
- **Revenue Recognition Delays**: $0.5M in delays with 2 customers (E&T and M&T), expected to resolve in Q1 2026. No impact on long-term growth outlook.
- **M&T Retention**: Q3 gross retention improved sequentially, forecasting strong Q4 performance to offset prior year declines.


Kaltura, Inc. (KLTR) Q3 2025 Earnings Call Transcript

- **Revenue Resilience**: Q2 subscription revenue up 3% YoY to $42.4M, driven by EE&T growth (+7% YoY). 
- **AI Breakthrough**: Closed first 3 AI deals, with 100+ pipeline opportunities, improving gross margin to 70%. 
- **Cost Efficiency**: 10% workforce reduction saves $8.5M annually, supporting adjusted EBITDA target of $14.5-16M. 
- **Customer Consolidation**: Record average ARR per customer, 21 6-digit deals in Q2 (e.g., AWS, leading banks). 
- **M&T Recovery**: Vodafone contract extension signals M&T turnaround, expected Q4 sequential growth. 
- **Profitability**: 8th consecutive quarter of adjusted EBITDA profitability ($4.1M Q2), cash flow from ops highest since 2020. 


**【CEO Summary Section】**
- **Revenue Performance**: Q2 total revenue of $44.5M (+1% YoY), subscription revenue $42.4M (+3% YoY). ARR and RPO grew 3% and 6% YoY, driven by EE&T (7% YoY growth) despite M&T decline (14% YoY). 
- **AI Momentum**: Closed first 3 AI deals, including Content Lab and Genie, with 100+ pipeline opportunities. AI gross margin improved to 70% (vs. 66% Q2 2024). 
- **Operational Efficiency**: Announced 10% workforce reduction to save $8.5M annually, reallocating resources to high ROI areas. 
- **Customer Consolidation**: Record average ARR per customer, with 21 6-digit deals in Q2 (e.g., AWS, Xbox, leading banks/pharma). 
- **Product Innovation**: Launched live captioning, multi-language metadata, and Genie enhancements for personalized video experiences. 
- **Guidance Update**: Maintains 2025 revenue guidance but raises adjusted EBITDA to $14.5-16M, up from prior $13-15M range. 

**【CFO Financial Commentary】**
- **Profitability**: Record Q2 non-GAAP net profit $2.5M, adjusted EBITDA $4.1M (8th consecutive profitable quarter). Cash flow from ops $2.7M, highest since 2020. 
- **Cost Management**: Operating expenses down 9% YoY to $34M. Vodafone contract extension supports M&T recovery. 
- **Segment Breakdown**: EE&T revenue $33.2M (+7% YoY), M&T $11.2M (-14% YoY). Expect M&T sequential growth in Q4. 
- **Pipeline Strength**: RPO $188.1M (+6% YoY), 61% expected to convert in next 12 months. 
- **FX Impact**: Adjusted non-GAAP net income to include FX losses, resulting in $2.5M Q2 profit. 

**【Q&A Highlights】**
- **M&T Churn**: Q2 M&T decline due to delayed 2024 churn, expected to improve in Q4 with Vodafone deal. 
- **AI Sales**: AI products sold as upsells, with potential to become lead generation tools. 3 AI deals closed, 100+ pipeline opportunities. 
- **Workforce Reduction**: $2.6M annualized savings from 10% headcount reduction, no impact on sales/marketing spend. 
- **New Bookings**: Sequential growth in Q2, pipeline indicates stronger H2 with EE&T and M&T momentum. 
- **AI ROI**: AI-driven cost savings in engineering, e.g., live captioning replacing third-party vendors. 
- **Customer Mix**: 75% of ARR from top 20 customers, with Vodafone contract extended for another decade. 


Kaltura (KLTR)-7 Aug 25-2025 Q2 Earnings call transcript

- **Revenue Records**: Q1 2025 revenue up 5% YoY to $47 million, with subscription revenue growing 9% to $44.9 million.
- **Margin Improvement**: Gross margin expanded to 70%, fueled by AI transcription engine adoption.
- **AI Adoption**: 150 customers in AI beta, 20 progressing to POCs, with 85% of Genie recommendations being new to users.
- **Customer Retention**: Net dollar retention at 107%, highest since Q1 2022.
- **Product Recognition**: TV Genie awarded Product of the Year at NAB Show 2025.

**【CEO Summary Section】**
- **Record Financial Performance**: Q1 2025 revenue reached $47 million (+5% YoY), with subscription revenue at $44.9 million (+9% YoY). ARR grew 7% YoY, and RPO increased 12% YoY.
- **Profitability Milestones**: Adjusted EBITDA of $4.1 million marked the 7th consecutive quarter of profitability. Non-GAAP gross margin improved to 70% (vs. 65% Q1 2024), driven by AI-driven transcription engine deployment.
- **Customer Growth**: Added 15 6-digit deals and 1 7-digit deal, with new logos including Stripe, Novo Nordisk, and a U.S. private university. Net dollar retention reached 107%, highest since Q1 2022.

**【Product Updates】**
- **AI Expansion**: Genie agents now support multi-instance use cases (e.g., marketing vs. employee training). Content Lab launched highlights and enrichment agents, with 150 customers in AI beta testing (20 progressing to POCs).
- **Market Recognition**: TV Genie won 2025 NAB Show Product of the Year Award. Gen AI transcription engine deployed with 200 customers, reducing operational costs.
- **Collaborations & Features**: Integrated with Synthesia for AI avatars. Enhanced mobile event experience with chat, polls, and API expansion.
- **Content Impact**: Genie recommendations showed 85% of videos were previously unseen by users, highlighting AI's value in content utilization.

Kaltura (KLTR)-8 May 25-2025 Q1 Earnings call transcript

- **Revenue resilience**: Q4 2024 subscription revenue up 6% YoY, ARR at record $173.9M.
- **AI momentum**: Beta GenAI products (Class/Work Genie) attract 30+ large orgs, targeting 10-100x video consumption growth.
- **Profitability rebound**: 2024 adjusted EBITDA $7.3M (vs -$2.5M in 2023), targeting $12.7-14.7M in 2025.
- **Customer retention**: 103% net retention, 75% of bookings from upsells, 3x upsell opportunity within existing base.
- **2025 vision**: Maintain 2-3% revenue growth, double EBITDA margin, rebuild sales team, and accelerate AI monetization.

**【CEO Summary Section】**
- Q4 2024 total revenue: $45.6M (3% YoY growth), subscription revenue: $43.4M (6% YoY growth). 
- Record ARR ($173.9M) and RPO ($203.4M), with 103% net dollar retention rate.
- AI-infused products launched: Class Genie and Work Genie in beta, generating strong interest from 30+ large orgs.
- 2025 outlook: Maintain similar YoY growth rates as 2024, target doubling adjusted EBITDA margin.

**【CFO Financial Commentary】**
- Q4 2024 adjusted EBITDA: $2.7M (highest in 4 years), cash flow from ops: $4.3M.
- Full year 2024: Subscription revenue up 3% to $167.7M, adjusted EBITDA improved to $7.3M (vs -$2.5M in 2023).
- 2025 guidance: Subscription revenue 2-3% growth, adjusted EBITDA $12.7-14.7M (doubling 2024 margin).
- Gross margin expansion driven by subscription mix (77% sub gross margin in Q4 2024 vs 73% in 2023).

**【Q&A Key Takeaways】**
- On-premise revenue (~2% of total) causes Q1/Q2 seasonality but not material to long-term growth.
- AI monetization: 10-100x video consumption growth potential via hyper-personalized content lab and GenAI agents.
- Customer consolidation: 3x upsell opportunity within existing base, 75% of bookings from upsells in 2024.
- 2025 priorities: Rebuild sales team, expand AI product adoption, maintain disciplined cost management.
- Rule of 30 target: Double-digit revenue growth + 30% EBITDA margin by 2028, achievable via mature products, AI innovation, and customer retention improvement.

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