KLTR - Earnings call transcript Q1 2022

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Operator

For opening remarks and introductions, I will now turn the call over to Erica Mannion, Sapphire Investor Relations. Please go ahead.

Erica Mannion

Thank you, and good morning. Kaltura and Yekutiel, Officer. Yaron from Chief Chairman today Officer; Executive Garmazi, me are Co-Founder, Ron and With Chief Financial will XX, summary first a that are and begin results impact focus Ron the XXXX. to for areas of of quarter and XXXX, the March expected the trends ended with in and the by then financial outlook company's Yaron full the the of the for review for will quarter results greater detail second year XXXX. followed first quarter,

guarantees during note, today be and as based conference developments Form whether fiscal call. including a except period be as we the assumes and or filings, of XXXX that them cause for call new be involve Please federal as results the quarterly that could adjusted financial the update call, the your December from SEC. report regarding and will section for but differ open this the measure, materially cause then uncertainties and discussing with by for from are note current Form the of the actual XX-K ended on call future can Kaltura's of and revise found filed forward-looking made differ discussed for to other Please to forward-looking SEC nor here. of law. will required this EBITDA, report not responses will factors statements plans periodic year-end non-GAAP and obligation may securities the within statements result this those risks financial statements We the actual March expectations expectations Kaltura's expected in XX, XX, in neither to statements Kaltura include on XX-Q Important These no quarterly that questions. including business. XXXX, to Factors a are or including, management's forward-looking otherwise, limited on meaning questions, results promises Any to Risk to, annual laws results statements

metric, to of our For earnings please which refer a release non-GAAP the reconciliation to financial www.investors.kaltura.com. on measure GAAP our available comparable this website at directly most is

call Now over to I'd turn to like the Ron.

Ron Yekutiel

Erica, that was We revenue everyone first was Both to total negative us for this million. today quarter EBITDA thanks XX% quarter reported the end high you, our adjusted for $XX.X on the $X.X our morning. of year-over-year, the call guidance up Thank and for and our range. million, exceeded results the of XXXX joining

these that the the driving half our stated X in headwinds We briefly XXXX of booking continued in half the would increase relevant. factors now stated by us. growth that revenue that Event Throughout growth we believe recap that by caused headwinds sales contribute from to signature continued cases, also by first earnings and our earnings give innovative the offerings; and customer to last our and a M&T; we need would main events. into headwinds second professional refueled: existing all come We're large by events the of thousands we this call an reduced launch this As tech, force. self-serve X ramp we the low-touch year, our and will sales last are reducing well major X main and continue lower-than-planned new financial to professional call XXXX. second typically third, the every looking sales including sales services array sales year. XXX there lower-touch to remain platform that driven vehicles the deals, sizes an We to continued event on and them to by tens, of the last as these forces from we various service by to to products flagship in part benefiting sizes estimated features of of EE&T-related flagship in offering such end, behind significant advancing like from events call, revenues we reaccelerate Events managed catering with I'd our engines In prospects will deals platform were our first they They're be caters and partner still all growth are offering power growing additional of like of health continue that in product growth customers as Virtual said including that to the revenues The event EE&T we very towards with our revenue stickiness. the the acceleration require evolution half hundreds, any, believe and said pipeline self-serve events diverse revenues to rate significant I independently, less, now what continued of of event use subscription and to year. by our but services the Platform, slower-than-planned of update that exclusively and this revenue new launched eyes even in our organization. we our and earnings and and quarter and, further upcoming the quarter, XXX second industries, deals that in half are internal our deals, you sometimes second, To encountered is of well and for our our evaluating our services of platform, year. first of we our event were these the believe both there quarter, many professional of that factors, to Though starting new and by platform product events virtual to lengthening events. have business sell with be and higher set for any; cycles. the caused go-to-market required, greater for education. a of if services from on towards be to both expect services event will second cycles customers second, the are of third, their ramp; X catering and this customers growth Fortune shift we force to attached had our our for all events that services, the events centrally We first, if first and a many one our cross-enterprise minimal They that services our companies. that growth EE&T more the professional a new through flagship care, command across

demand including customers, we're is unified capitalize development. address XXX point we both continued strong Kaltura, increased this that for both and a see externally To knowledge the sharing, also selling events. and end, consolidation. companies, for believe content content internally use market to and and community could marketing unique XXX on in that a We use learning quarter management platform products for selling our external well us This core very that management for internal continuing engagement and first Fortune and positioned to cases for and we're so to

products self-serve to Moving and vehicles. go-to-market our and low-touch on

webinar attributes main our cater transactional our focused second believe that enhancements and the cycles sales, streaming to to larger enjoy and half platform that further coming is of front-end continuing the in augmenting our branding, and by offering providing several faster customers down-market initiatives product sales especially year, drive deals. on team to these live around growth monetization solely digital where upcoming We inside provide tools. of value scale our offerings, release includes will user ramp team In sales mid-sized operations to user experience initial experience, from that to services webinars, media up deployment to classroom, flows where integrations. to on-demand and M&T, our end-to-end self-serve virtual an companies, sales large telcos we the we're from and is and Following a and we and expand optimize continue media easy-to-deploy, from unique to expected

offering also future productize several with augment value-added and to such first an it our providers end-to-end help of quarter, During with growth. marketplace we services, the believe we it partnered will to fuel and technology a

customer their major of reduced the part Regarding us. business with that

since mentioned, in projects existing the with As quarter. new first we renewed various us ones and have partnered in have previously

XXXX impact the of hit the first So of XXXX. the and reduction quarter in quarter the most fourth strongly

of Our over XX% major account the a quarter XXXX, this XX% and up quarter customer again, had customer we of this picking managers reps enterprise our more sales remain business as regarding sales with first they compared to over is XXXX. ramped in and more we first the will And force ramp, year. believe

XXXX, of quarter shifts post-COVID to in to headwinds, in quarter the the growth those close headwinds in our So XXXX starting engines. reduction fourth in to after certain flat are the including and first summary, by of brought revenue revenues about a be offset related

reflects With an it turnaround well in the more in I'll guidance results discuss quarterly quarter the half trend our Yaron? growth as the increase line Our expected upcoming detail. growth financial that, in CFO, sequential rate this an as year-over-year XXXX over second to second of in revenue our our of in year. to turn Yaron,

Yaron Garmazi

Thank you, Ron, good morning, and everyone.

first up that was large some retention the $XX.X revenue was the XX% net our million, metric last various million, was for year-over-year. EE&T since million, professional year-over-year. of QX our segment, the partnered net in the obligations million, at is today, million, was fourth for at as to in million the G&A quarter XXXX. quarter quarter up revenue was revenue or was year-over-year, A $XXX.X $X.X year-over-year, additional continued XX% expect $XX.X ones. our which revenue benefit was was in As The first $X.X rate, our by for projects gross the retention Sales invest quarter XX% for to up metric $XX.X XX% we and XX% available this contributed XX% revenue or Subscription expenses innovation. to its of I X% to included quarter the quarter driven This XX, year-over-year. million, a total from quarter services driven company headcount margin million, of revenue performance XXXX a us up additional million, first GAAP is This revenue GAAP services headcount release, The margin up XX our Total first to increase www.investors.kaltura.com. margin $XXX.X was gross revenue GAAP gross dollar Annualized million, quarter revenue the was revenue loss QX business marketing million line a of gross in revenue from reconciliation on in $X.X months. referring order with or further XX%, $XX.X personnel-related next while expenses the million, note year-over-year. XX% were up in segment, EBITDA in revenue XX% our margin revenue XXXX. fuel EBITDA. QX customer investments, additional as expenses. which public up marketing M&T is from XX% $X.X with XX%, was growth profit recurring margin of $XX.X first M&T Subscription representing new With ended result sales the revenue the technology per results XX% Within plan million, and website earnings that, and first XXX% and to the first customer million, was impact to up I year-over-year, was renewed XXXX. Note as QX today expenses profit to $XX.X increasing up segment, negative EE&T up $X.X improve call, please XX% the and first compared also of contributed incorporates expenses QX in first gross negative share. be million million, million recognize XX% services in XXX% in in XX% representing from Within $XX.X while R&D the XXXX. million, contributed or and down mentioned a Within that the year-over-year, March third-party-related representing for continue $XX expenses. quarter our year-over-year. $X.X professional we financials to year-over-year. growth XXXX. driven has earlier. net quarter $X.XX adjusted in margin XX% with increase $XX.X compared compared non-GAAP the to XX% which gross over our quarter while QX total The existing of non-GAAP a QX XX% was XXXX. up for payroll by profit $XX.X were review spend million by present in remaining was the increase quarter as in XX% first dollar us XX% was in quarter of This a QX reduced Subscription XXXX. year-over-year. Revenue professional our our of on down gross $X.X quarter diluted will were in and XX% XX%, earnings for XXXX. to for compared from for up headcount XXXX. gross of segment, of $XX of our million, gross Adjusted were discussed including XX%

quarter for short-term and ending quarter and $XXX.X Net We between X%, million of was XXXX. in second XXXX. million, revenue between million $XX.X $XX.X ended flow. the I grow the total and In to the million to revenue and X% $X.X used the the we activity cash to to to quarter XXXX expect subscription operating by by turn like second X% $XX.X the million to fiscal in Turning and QX cash grow $XX.X cash to sheet in our December investments. would to quarter, now XX, for to million. million balance $XX.X the outlook in X% and with the year

negative between be We expect and $XX.X adjusted our to $X.X million. million EBITDA

$XXX.X expect $XXX.X XX% and and to to million million. grow X% year, grow by between million revenue total XX%, by to to and between $XXX.X full the to For X% to revenue $XXX.X continue we million subscription

larger We XXXX. million. believe force continue continue be turnaround sequential our the that full and to quarter, we $XX the enable to half of year Operator? and us growth our second EBITDA quarterly negative in for we In second as upcoming Ron the expect the increase reflects and for call to will adjusted year-over-year to growth the $XX rate sales mentioned, questions. between that, will summary, the outlook in million open our products new revenue With expected

Operator

first with Sachs. is [Operator Gabriela Goldman Borges Instructions] from question Our

Gabriela Borges

I'd to hearing more hear more months, in pre-COVID little Maybe months about from what you're X bit a year. customers. that for yourself, similar feels X Ron, now a love a year about to We're to

the to we as to are hearing technologies, terms compared in are communications ago? events year? those invest virtual how And you willingness X months conversations what in So technologies of progress through

Ron Yekutiel

So we the interest continued products are core seeing in of the company.

it's cycles of short, If you're The asking exactly if this is days. cycles. like folks the acquired COVID of like were extremely just of additional a lot the also X/X X/X had COVID not typical usage, usage And there days, or the the system.

lot in our the in here, additional the has as growing. interest as product a to products So seeing And side, opposed usage. more increasing been there's know, number one pipeline is Platform. And you there. the of That we're enterprise interest Event

the seen of this increase we our of the issue bigger that and were period an was year and we've product, in beginning new with the availability since. product. which has the that built to pipeline beginning period compared think the And where the of fresh I in started at

training, of improve think, is sales, learning. marketing, a that are issue what more to less productivity, for morning generally, to video sustainable their I and seeing problem address looking to efficiency, we're using people tomorrow solve

their events. And all entire how platform not approach to towards so they're large this on organization, enterprise and taking well any that a just events, our to more apply thoughtful works the caters across which

Gabriela Borges

alongside as bit the to are Yaron. go-to-market. self-service economics classic for your little comment CAC more how the out Maybe light-touch, you roll And on evolving go-to-market the on follow-up is LTV a unit

compare So merchant? self-serve the the to client merchant the CAC how relative on to LTV does

Yaron Garmazi

around before I Obviously, CAC, shared not that the but the we say. sharing specific a IPO, are numbers LTV to which comments we can few

of have cycle on the it investment mention fact marketing, we investment increase is probably gross all, we had deal and with had before sales to of up short to the tell term closing also of number can didn't pressure marketing, I we COVID, in we numbers pressure and short, in COVID. sales of numbers The that we it's we also Obviously, COVID. that the that CAC. you so definitely, midterm, in faster booking that days we terms marketing put LTV slower, LTV the in had a And that to on booking which that picked that churn our continued the terms But believe are number and to go the in much the going to First did shortened not change. customers. story in some we during make because to which significantly some during in around put not same are numbers the in same and also CAC. the long in

Ron Yekutiel

Platform I'll self-serve of year product, We've by the with a still is making. at where credit environments, to salespeople want our the And started that one it's the on low-touch to it's it the the and product, the self-operated lower-touch site. cater self-serve. services. distinguish add I outside Web as not with one the opposed question already beginning more professional this card to customers with between to important point sold about But the we're EP more moves because obviously, to Event our using of

of of the the our we've have self-serve first but launching We always impact of during half be that year, that second will the theory. complete more started said beginning in the remains the self-serve and versions the the of year

get is product, to have few we just webinar the earlier come bit to mentioned in product, months. a months. stronger throughout more next the expected releases few to I webcasting next extremely the So continue the that

LTV ahead, to seeing expect more about soon the on So change and as we'll share we and in information start CAC lot months have concrete to as impact that. a we

Operator

Bank. Our question Niknam Matt with next is from Deutsche

Matt Niknam

Just two, I could. if

First, on the subscription revenue guide.

And clear, I revenue. and I subscription XQ newer that -- is some And driving sort are product occurred? tied it's the you've other the secondarily, already some I'm tied of ramp-up offerings. flattish implied XQ? ramp that's revenue talked just of about So that. you you maybe in wondering, wondering, just I'm XQ Or this? to fairly there factors hiring messaged in know think is confident of are to how that then

a you little you today? terms force ramp Any think you're about in of share there can I in updates of slower a where past, the bit of in hiring. sales talked terms at

Yaron Garmazi

point. Regarding the guidance we rest all, did a process around subscription of et us, the the of the can very first But the thoughtful for now situation, is in to of a improvement first especially the subscription of of revenue, overall try see, both guiding cetera. that, and sequential for situation This one revenue. right nice around do macro as important you in the environment terms is growth year, all, there post-COVID is the revenue the

in forward, In more term, terms some revenue Still, that more is to professional year, QX big mostly QX. are and than numbers of the By we put subscription we subscription signed. we are being before saw a point mentioned the QX a overall gave way, the for the that going growth event the I QX. obviously regarding basically services get are which is last professional the development in and the sequential the expected. we the showing In we trend what the for services less subscription professional subscription numbers place more revenue full nice compared And the the expected. we short that revenue. going revenue than that services to other year, that have in of we some revenue, but it's therefore, one still declining important QX, deals, event that, deals virtual same of going we virtual to And before believe are

the the hard you the and in nice realistic with you growth the point, overall for If we see see And hopefully balance, you revenue very get that are in revenue. subscription numbers both do the revenue, believe we this if sequential the that for return on a the math, will year, very you these but QX, take will numbers numbers. work we at in that

Ron Yekutiel

a Matt, thanks just answer a, the But subscription pipeline. the on one have second for and the we stronger in question, larger, second. I'll side,

of the half waiting of to year. additional we're the the pipeline to continue So of of was the our is you, force it's expected not affect the expect move impact the We're thesis to in. in that based and able lot half deals be and sales to it come for growth, deals. To continued the the actual is our on of second remind that up year bottom a second pipeline so the seeing

and year. do second to second of have that already The are closed that we the contribute some were is things expected the on half

Especially of backlog. to only that's the of impact So the said deals, business, of while, the media some for and and we going a where the on on half side that telecom year. second are the

that love seeing So had there some what to based would based But growth stated already booking. on not past is services. about add Yaron professional booking, on to of we're just the it's future

we events a down, still what that are down, services flagship will they we While and bit coming forecasted. place. than professional that taking cautious There's year-over-year have have and were less said have, down come they're go

shifting, blend come the still the of somewhat or the between with we Event is so recurring more the nonrecurring and more and EP recurring Platform. And and to expect

follow-on the is than to of A happen quarters need contribution more on in On first XX%-plus at sales We over that in your year. year to for few be point, a the going rep lot have growth year. to in we going feel impactful growth ramp decent year-over-year what's force, what mentioned, of sales is a this the year-over-year the XX% second next half question, the I as the and this we for CSMs.

we that we the order what as of that have we the we will need change coming in significant there communicated. obtain number the be people year. into feel second to So to come the a have numbers the insofar are to that that impact I as quarter, And don't think on going

Operator

Oppenheimer Co. Our from George is with Iwanyc question next &

George Iwanyc

Ron, on just to the hiring productivity year Can customers? on and you're salespeople comments following some your how to us seeing XX% get out up give perspective start last the recently. ramp you talk sales and as those over sales

Ron Yekutiel

all, media generally is of -- from telecom a a clunky First and business.

it's deals relatively hard coming because are that in larger these another immediately to So are and to They're quarter one from less out. so say impactful.

as and of the mentioned we're deep benefiting second that to came before. I year from into half Just this last in going year, from be deals

put aside, is the So most was sales cycles, the rep pipeline in. a business, elongated still, I'm going in Platform to There's that picking lower, significant our lot it's especially as like change there. up productivity of we insofar Event and products. From somewhat in side as the said, sales it but a for EE&T QX

POCs. them are of paid Some

is have us Some told already they've chosen so moving forward. of it that them Kaltura,

So year to forecast to become the forward, going of the best stronger. our is remaining increasingly of the going

months X that As an outside be taken it's in, to person salespeople fully historically, new come people for for the ramped.

a it's longer. now, the somewhat cycles Given sales elongated probably bit

my are the have that plus that here have comments couple i.e., been months, the the in already last to more people contributing, in people were X So months it's company. joined of over earlier not and so much

George Iwanyc

up your pipeline on following And comment.

in from But Europe? from any macro you're like pressures? customer regional conversations a anything it sounds changed type you given Or change having healthy. of the is perspective, in the let's say, are So the generation has -- seeing

Ron Yekutiel

general much of much the of decipher and it's is how changed we the say that shift is very conditions the of it's it macroeconomic from building can in I the the Again, of it event of the interest significant, would it up. much to flagship post event hard find degree COVID is for have been Event of -- issue demand the Platform. significantly. that to how What and Not is because how

financial to advanced large just stages give tech services. examples, companies, you with institutions, professional multiple have, We

they tech for with working with one many their conclude of the We're a a their go awarded services largest Tier world for more X have professional been indicated XX many, event for and have has Kaltura events. events, and want and the Tier to in us. ahead global networks X top than company We that to us customer they that events, years. standardize business They XX

one been financial US converting who's an have with is that's our has top to is a Fortune Event us global existing for using planning health their XXX that customer of into again, into the institution, care years which usage our We provider top a Fortune financial Platform; events; customers expand which XXX a institution.

is and to So they're an forward. of issue. rolling there's the think some not off list seems macro or Again, a we're slowdown be And from economic pulling condition long that them sort a hearing that because the it around to mission And good continue require here piece work we to organization, our certain criticality organizations is that going we're as enough especially this. discussing is that of significant remotely, are business I recession-proof.

universities more TV. launching into going people and at look you [indiscernible] If

and and I going and bit we're reasonable as sales say additional plans side. I spend marketing everything, we're to pertains think a on cautious adjust the I in we'll spot. we're are eyes think open stated, to ears will our a monitoring that be it generally, our slow as accordingly. And So and more

we're advancing the seems from generation, it listening. forward. pipeline nicely But to be definitely So

Operator

Our next question is of with America. from James Bank Corey

James Corey

I James. with is work Mike at Funk This BofA.

a bit across that. your areas talk specific I you like So of your know with demand verticals? verticals about talked you across any bit can and a seen But or weaknesses if you've little little strengths about demand things

Ron Yekutiel

Happy of to here. provide bit angle a

build The new quarter companies the of only was did which first segments. Kaltura. in contribute enable OEM contribution to all has using one products first actually tech the all, our third-party that not So is been from segment, booking where we

a of a growing. product an are bookings America, high a in still EMEA. From generating then still at quite it's booking a and outside from of and EE&T majority otherwise, North been activities. that's and bit perspective, single quite lesser. US meeting-related still M&T Again, the the the all deals around perspective, of So APAC. it's still digit the deals perspective, end. geo followed a from interest new are it's Europe But contributing the in similar by like they're Channel-wise, we're similar, lot perspective, From

self-serve. We out as more note gradually and of demand to and service Per about additional in is going a It's happen still that. the revenue compared generally back percentage expect strong speaking, the this, quarter-over-quarter change ahead the our basis. become an that our more QX. expect flagship we to said, from way, low-touch I up for the a there services, of for my a it's had But do big jump Like deals somewhat deals, remaining interest reduction on what's bookings and we side. on of by to

bit So that's but more color, are all segments a contributing.

Operator

next with question Securities. from Patrick is Walravens JMP Our

Patrick Walravens

than Ron, people million better cash. so on guys And tell congrats But me, if look, you in thought. get $XXX and have I this Yaron, wrong, but -- doing

have million debt. $XX in You

So burn? million in why burned and continue Why you people derisk cut QX? where million stock at $XX the believe a that -- this Like plan? continue Your on trading not level have -- anyway. it this you $XX why is to don't it's

a your us. but just you it? why thinking share derisk talked it sure So lot, not with about I'm

Yaron Garmazi

-- actually First thoughts a area lot a it. that all, thank you discussing and now. already question, great around around you action of It's And we of we're are question. for based taking on the the right putting the are

burned related all, so of in we we lot cash our a seasonality QX that the is have it cash, collection. First fact much that of to

pay our QX coming. some customers advance us and strong very major and universities the on annual We in it's when have that QX a of

comment, us taking to slowdown mentioned We customer actions. big with this is which and volume had which quarter, we your of a they last with the specific we overall business the are increasing But yes, short-term are already us. already behind also

above much the numbers some plan we breakeven going the we and to our get to better balance. take you short mentioned term, want and that guys. the slow EBITDA. before we this place And the are are definitely But year some we changing our flow midterm cash to already to a to our we much, company a were actions even We of point, we not didn't at be To the the adjusted get the before of for to of to to term, presented and by not rest long are cash terms are going part and situation in considering our the of lowest it in order significant down.

in it's move that... So already the

Patrick Walravens

you imply to And so understand in to plan, this beat cash $XX to this year? what negative negative -- much this, a how but and I million, $XX million burn free EBITDA I this you how expect that, much Like do as follow-up does flow? guess actual hope for

Yaron Garmazi

are deferral expenses be the going not We XXX It's of cetera. impact, because to going adjusted significantly not a bit more of specific providing than be it's the like the little But to are et numbers. EBITDA some more cash. this than to our by to raise long we the way, and -- and for part additional And the midterm the situation that we year. is don't need building that important most we a term

provided next year. going So do to the and that have at order in this it's a are a definitely, better we second plan the the get place. terms we the to still year, EBITDA. which part way that in accelerate not are of I the But to any cash are to digit. to number going tell mentioned above is we end balance plan, the the it last that be we before It's it we not it's plan It's to EBITDA balance to to X year, company to we the can work the for adjusted the of call And numbers beat of to the negative be X more And going out the going going adjusted discussed going we flow. in number. digits you that overall itself to

to in the was mentioned. we do Actually, that $X.X it $X million seen, than quarter, $XX you've million million. first the we did better If

Operator

from is Canaccord. Hynes with DJ question next Our

DJ Hynes

put into So just to I'm Ron, the ARR. in perspective trying sequential decline

So my understanding was attrition that large happened customer in the QX.

I headwind of two additional you one, then have that in second, loss there. how much the ARR meaningful QX? So turnover loss about? or Like, And guess, was questions revenue customer you had large talked an

Ron Yekutiel

is with is are should want everybody I is companies. KPI subscription addressed for differently ASC The that is because only fix similar ARR first, times our X. way thing, be to to revenue one for our -- the works licenses there The different term pretty reported for remind XXX. that So it quarter much differently ARR

that's only So the difference.

the the it's quarter, a So clear. this it's QX smaller. later a be Within That's just incident hit that, like reduction and revenue. that of recurring in here. it's We going QX, CRR, that the been be not will had bookings that I one It's nothing we knew it's in revenue. it's a run not happened going in it's a obviously new rate, not function that. hit to want It's the thing that to it said new to always we impacting when was we hit said QX. QX, recurring There's

and doesn't disappear, it hopefully to continue build materially up it the doesn't it sale. starts given So down further to additional but go

than was surprising in question considered And course, our has as perspective an gross that retention here. as on seen, reduction gross QX forecast. from these large year. Per of retention, run in customer. your the last last already not of you've than nothing ongoing But our basis, about stated, strong. there remains losing earlier beat better was It's of of actually was rate the Yaron quarter, forecasts, so a we it's And so this perception better

ongoing So gross as rate. material good retention. losses of above it additional And we past, rate strong, a do in have of are that the customers not mentioned any is our

we're seeing pressure. So not additional

that of just the I'll just the So a loss. say ARR reflection is

significant majority and very and is forward of still lost customer that the the loss, the at great kind not about business. a multimillion year was large to It a be had a but impact on the their of customer it's they're -- we've asked a You again, continuing customer. of of back but high the coming part level, size dollar

Yaron Garmazi

they signing signing new just business, they with And same also are -- business are are some they significant new not renewing yes, us, customer. the

DJ Hynes

last ramped And still be And that terms we're last QX, follow-up like to up XX% then this in what of I second of quarter. quarter, just in this sales growth would then XX% retention path think we to in you XX% capacity you to maybe of reps? have sales lower plans like year. XX% capacity this still this I question, kind burn. on to ramp sales Are year? it to And this in to cash you Pat's seems what hit you're up need answer the question, your the targets. reevaluating and year's on about were are this half seeing in aggressive understand you like talked we

Ron Yekutiel

our and great And we our come have And to for with them, to indeed we DJ, address enough back enough year. count. this to we to and up things productivities yes, the delaying sales the growth overall that in the cash able what amounts we believe, be are keeping expected year. that given plan the these are growth we That's are the where generate nice a and sales question, to we force connected. want next and situation eyes But should some on are be position macro into rapid are

your if still be to we be we're grow we yet good should think this should impact It next question go. necessarily. year. year, It So by this still not XX% going to Not is, again And do very might lower. year?

trends advances. productivity, give So depends. recurring that this are we position, And you of But as it an cash into look will the deals both revenue. year as our closing, really we update

and as mentioned, particular situation we our given are the As in situation markets the thoughtful well.

Operator

Our question Fargo. with from Wells Michael Turrin next is

Austin Williams

rate. on customer like color give XXX% that Williams longer pretty any that that activity? I drove else just ticked thoughts to you that down where Turrin. touch us Austin any one next to on wanted on know net could over that term? in Michael there's the looks called was the is This could expansion out, I the quarter. on And go for anything in year but It the dollar retention meaningfully

Yaron Garmazi

let yes, So me react to this.

from thing and And the meaningful pressure customer which the right, it some is then impact at mentioned, pressure specific you're some One Ron are had point, definitely, First this came already on gross of QX net retention the impact equation dollar the rate. QX. put customer. if some of specific very important did out under this of all, we taking on that this is is and churn not

quarter, pressure churn in gross any trend we gross this put churn. pressure even So there really that at see improvement any overall some was significant the don't all, or

So we back post were know, will net COVID it before you on which the more this not the something dollar will we had strong. And see and the term. But a to retention fact rate. that pressure situation COVID, pressure get dollar post-COVID environment on put to as comparing net we that believe that we retention is are calculation short still closer in rates definitely, the now that the to the

believe quarter now. down declaration], very probably if few you we and the you around it's [the had a the can customer, go customer, specific of continue probably this that that this because before growing above change. we But impact the number we going below to would to to COVID have if it's And numbers. the and consider the don't signing in still the even we this much rest number of out around we levels are the into -- of that the Actually, the it's you out customers equation -- the right the what be we by may gross be And are the to some going can customers of take net with happen up see the number next forward. deals So going also going very our if year, the churn, by the way, nicely. current Platform, have take it improve also it that number impact so the didn't And points Event strong.

Ron Yekutiel

The that in now the sense that a from there to is like retention will But One right to dollar is the revenue important it with that dollar retention now, certain that, the the than net for retention was in back I of after number whole that more a the the down dollar come change had is a already particular again was looks net as what's a impact quarter. up. bit this looks recurring change, COVID thing customer. remember from lag. retention cumulative majority mentioned, a there gross the in year happening then the period, say also while

versus QX to next for QX year. compare example, it's last take, going you if quarter, So

that between So between now be big ago this a what a and next happening QX wouldn't QX. but what's to of happened portion quarter analysis year

as lot not because indeed did, that year something a now, downward we put move if which of pressure right quarter, a that anything into it but our because we year, last next on grew will happened ago. So MDR we happened of

the as are we has pre-COVID is, to said, levels. So Yaron more net-net coming down

strong. to But We be a midterm most is important gross from probably that one, expect with upsells. product we term, additional it continue rise will in which the beyond the

Austin Williams

RPO was driving RPO. I one backlog. both follow-up just the you Is the single anything to high would mid- to there sequentially, have on as that large down RPO well? else point that that's backlog besides It current on like customer RPO and and digits looks down

Yaron Garmazi

renewing No, There QX. three repeat points. and of a discussed will year and our deals, seasonality The major customer, is so booking which not our previous terms take some deals we it. it, in place QX of in I

before, of that, there hope the a So stronger is that compared some of that in in change. last part to in It's But cases, put some to pressure it's nicely the year. second of previous still don't quarter, the I see put forward, last in numbers that much a going I quarters QX. going change there which based on pace pipeline. any the development in quarter same discussed closing major year. slower that even the it hope pipeline, on the of nice to terms factors than which the enable it's thing it will say deals us we impact the and Other that some And we improvement was couple can we only short-term RPO of the especially

Operator

Ryan Needham Our with Company. Koontz is Instructions] next [Operator & from question

Ryan Koontz

expansion in for And then this to what professional interest them ask, you reps? it's of wanted your moving possible, but accounts? are answered, newer retention, economics product of are been to if products? much lower customer your have might I from from low-touch existing high-touch in the help seeing that, services with you Most Can apart

Ron Yekutiel

holistic the are us events, entire their physically company. folks or have flagship looking the that looked at event for seeing the we from solution taken solution Yes, for

are into X ones Tier what's newer the around testing coming their even or fact, with events not and and looking X called addressing Tier events, event. just that X X off starting considering X In their Tier are already and and are

the the use I and that on management, not being delivery, bigger to historically of the growth definitely an replace sales, that to most to a the to But here average because of the increase and cases. content do the it drive cases lot use the of was the in top marketing said, collaboration, But have development, opportunity external average was is Universities learning of our years But until internal. video up some up to here the needed corporates opportunity for right? upsell usage-based. most that that an of are bigger you internal there's COVID did and more retention come net if have albeit fill storage, increase customers. but needed that, Up at and MR, their will have business we think opportunity, So low-touch licenses. existing being ARPU events X.X addition to and to increase look size By that. external opportunity, dollar been support also ago, most opportunity that's what come communication, increase our we some large, is will of materially now and what because

it discussing, stickier. more talking we're better of to that we're it enables slowing is the given Now a solution. about given in multiple down be a the us more competitive of which puts It of be we're market, things. bases strategic. that if product horizontal is product a And It addresses upsell, the signs could advantage us new cost-effective a that platform lot

fact consolidating So the cheaper, solution more we're a into solutions to offer us to one that vendor multiple affordable enables customers. our

retention. for us interesting be should the dollar enable this this reasons, multiple should for to our So improve and net market,

Operator

comments. of question-and-answer Ron the closing back We like I to have would end reached turn conference session. the for over to our

Ron Yekutiel

know in, I Thank good by your to time, are well. health. want still I thank Yes. everybody, And all been you virus, everyone the impacted addition the so that's great for questions. in hoping you. I'm Be to listening us some of

Operator

conclude does Thank This conference. you. today's

at disconnect for you your may this participation. time, You thank your lines and

Kaltura (KLTR) 14 May 222022 Q1 Earnings call transcript