KLTR - Earnings call transcript Q2 2022

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Operator

Good morning, everyone and welcome to the Kaltura Second Quarter 2022 Earnings Call. Please note that this event is being recorded. All material contained in the webcast is sole property of and copyright of Kaltura with all rights reserved.

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

Erica Mannion

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

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

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

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

Ron Yekutiel

RPO joining and Today, this was revenue, in call thanks we indicators conversion sales resumed which cell growth bookings a up ARR for revenue, we and to saw growth an revenue reported supports quarter, revenue subscription you, quarter subscription the including in of up and $X.X expected second everyone Adjusted quarter the increase the sequential and such of across leading for of new productivity and total four. quarter Erica X% million, us subscription cycle total on for EBITDA million. the of Thank $XX morning. $XX believe million, as force In X% year-over-year. deals, number year-over-year metrics, we XXXX longer negative second of

events ongoing drivers our event initial the this with of now commercialization across with all events flagship of power also is offering This in increase event event demand recent that mainly all of along to organization transcends our event large sizes services. the services One powered platform. centrally minimal product the of

the our events an globally. big of important events in As the technologies experience their actionable and across several and high-quality providing and existing platform emissions We to and virtual In four of external and regions level productivity, for consistency accounting providing is signed quarter, this with including is and thousands engagement several with they dollar net to one and digitizing chose achieve and reduce external during important very a internal replacing of events consolidating internal example, costs as deals, communication while insightful the efficiency multimillion engaging use to event firms. to their them departments we deal, Elevating webcasting are platform zero goal. increase tracking analytics. power our brand and

TV live video offering, event closed management content our and also streaming deals of we Beyond and our across markets. all

major dollar to communication video customers banks. support major six internal and their example, powers we multimillion for signing other turnout live content bank two management contract largest U.S. of selected video additional and content a Kaltura, manage For a existing streaming corporate bank offerings, and the U.S. purchased five

and had On adding the new quarter, event support advanced product development improved analytic busy broadcast another custom and and templates, management flows platform, features. our dashboards front, to additional [indiscernible], unique for we

We continue that and comprehensive optimize user product, single real-time which, our intuitive end and of content and our components streamlined and webinar and live continue to our into quality, simple, towards full includes release video the self-serve capabilities. offering of powerful effective to is boost version among and the video unmanned, a our interface further use consolidate our management advance with advanced cost things, publishing integration other new to

Hybrid episodes to the second continue Guide to on our launched the Event Platform around XXXX as live MarTech BXB virtually winning of the Event Technology and industries. save marketeers tune or the podcast, across event, to into Annual recognition for focusing the and at Year representative our We which Awards report. plan to being globe including sure annual leading the date included market from we’re the XX, Market events, gain be of Gartner includes November and virtually award a Digital also live our we future Platforms weekly Marketing host of invited in product for recently vendor leadership, On

slope headwinds being discussed of are at to outlook, reevaluated, While results, we macroeconomic the the producing year engines the rebound. budgets given a the growth the that presenting of beginning IT are

XXXX, our year still already in most reduces to growth stronger note revenue in we a full a future important forecasted return QX It’s growth growth year-over-year ones. result of of in for of booked to X, deals, quarter forecasted the and year this fiscal expect is XXXX. the of delay this not that While

market certain And realigning plan preliminary actions saving a outlook, Today, we reduced that reduction are we increase focused productivity. accordingly. among Moving and is year, heavily efficiency we spend things, announced hiring. reorganization our adjusting The other took current our further fluid on discuss XX% given cost bottom our this the includes, line. to on our and our Earlier of approximately operations and downsizing to employees. plan our now

M&T together including we EE&T maturity Given cycles, margins to other the the advantage merge converge, take business deployment decided sales and to segments have units, of operational cycles of the and two continue overlaps. and

and have single product will structure cross-company we professional a marketing, forward, development, with Going services. mostly and sales functions horizontal

XXXX, that of in XXXX, you and profitability, cuts consider business For before could together. benefit also cash these positive delivering When merging then separately, accelerated our even we them flow COVID, years achieved from great the back year-over-year to and from revenue incubating XXXX. and remember XXXX flow we cash EBITDA EBITDA by rate. we and operations In units in continue adjusted synergies positive and growth from path our adjusted operations

tech a increased do enter products half a way in first year new Kaltura, more year the a a video self-serve loss. the throughout industry we of before, for encouraged half and to the with we’re second and expect on levels, event fully booking and platform the believe commercialized nimble of been we In can half, us cash again. to it while to in we operations that, cash and it to it expect our financial second I’ll high to done which has the growth. single-digit to have and Yaron? over while reversal organization world, more detail. Yaron, results will agile back discuss we year bring to flow, believe see post We experienced profitable CFO, it we we our spend With that flow Translating in summary, the turn the challenging a operational from

Yaron Garmazi

morning, Thank you, Ron, and everyone. good

remaining XX, I our reconciliation a quarter are of reduction down $XXX,XXX currency for approximate website that our year-over-year. also is metric revenue as was an result million, embodied headwinds revenue second Total of weigh well. during I second will figure included GAAP year-over-year, which that million, services up obligations a performance EBITDA. recurring during today’s which recognize year-over-year, A X% was $X professional $XXX revenue million, revenue second available as quarter up As of to we and note year-over-year. occurred up revenue June review please revenue over on These $XX forecasted to the results XX% were X% $XXX.X revenue contributed Subscription This non-GAAP our the referring adjusted XX% in earnings, The headwinds was $XX of expect XXXX the be to is the million, million, at months. www.investors.kaltura.com. year-over-year. non-GAAP today, Annualized up XX% while ended X% half quarter. financials to year of of continue this XX next

was margin result impact compared was call, expenses that profit and XX% dollar of in personnel-related including was increase revenue to down million, XX% XXXX. a revenue segment, representing million, driven this mentioned million in business the in The XXX% for in was services Within X% QX for the the second by of million, quarter in were from Sales million, or of This retention of in reduced while retention XX% XXXX. incorporate second or second $X.XX to headcount XX%, being revenue compared our up million, existing segment, up XX% segment, contributed compared XX% million, revenue increase in $XX.X for was related professional large per the QX a increase quarter XX%, the their third-party public our metrics while profit million company. since additional margin last loss full $X.X dollar sales XXXX. gross expenses. was $X.X quarter $X margin driven earnings expenses the gross was QX that, revenue second quarter to net $XX.X a for profit driven year-over-year. year-over-year, X% and QX $XX.X in up was XXXX. compared revenue $X.X This has us customer R&D $XX.X and M&T a to is our Subscription second up million some quarter net our EBITDA gross headcount or margin negative renewed gross XX% EE&T partnered quarter Within QX negative Note XXXX. was for gross down gross year-over-year. related $XX.X marketing expenses down $XX.X additional million, year-over-year. line new former XX% net margin services in in as the from gross has second total the quarter quarter Within of of a for diluted Our to rate the headcount in discussed GAAP fuel XXXX. share. payroll million revenue EE&T million in GAAP the XX% year-over-year. $XX.X customer fourth XX% additional gross quarter in The to from expenses by from X% was and revenue spend XXX% contributed of to second representing QX XXXX. QX investments, margin with XX% earlier. second X% million, representing various with Within XXXX. Subscription a up our $XX.X gross The our XX%, marketing Adjusted in our QX up a increase of was projects order M&T as the the million, decreasing us XX% professional G&A year-over-year, XXXX. was segment, total for by with to revenue ones. $X were on or of expenses. $XX.X quarter quarter growth in plan and further was and our million, were $X.X of quarter

already million balance used Turning quarter cash Net quarter the $X.X was compared the ended customers, million and activities increase payment, to QX of by net in delay in driven cash operating cash million collected by July. with to couple provided use We the marketable and of sheet both activities XXXX. flow. in in cash $XX.X cash The a was in securities. operation the in $XX major

we single-digit XXXX. strong Ron are seen stated, we throughout momentum. have the of a in And a As half QX, cash flow operations net collection already expecting second loss from

reduction headcount cost restructuring the second from and are expected Total XXXX, will related I to process. be cost on half reduction around $X In million. around provide the basis million. to total charges to some be reorganization information our is downsizing Now expected $XX an regarding of annualized

between fiscal profitable enable I XXXX. and turn achieve our subscription growth to $XX.X As to to and In Ron December to $XX.X X% a the by X% million grow XX, the quarter revenue will year this and million. million faster. to between the X% to believe third of third to revenue X% quarter, we to $XX.X for $XX.X decrease expect like by outlook now total million we mentioned, to ended would for XXXX us

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

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

the the summary, reflects during year, a albeit acceleration the conducting outlook In adjusted $XX We that profitable us EBITDA growth our as with because this regional growth. return full The half expected fourth in bring are reorganization delayed of second this an [indiscernible] year year, of the between to to macro cost this focus expected half the million. we negative of mentioned, within line million of unforeseen and our second reduction $XX to quarter Ron year little and circumstances. back in

two combine to synergies are business units. forward We realizing looking our

the forecasted the With we of whole be will Operator? questions. half for the call in Lastly, throughout our second to single-digit from cash loss. operations are open total XXXX flow that,

Operator

Thank Borges comes you. question with Goldman Sachs. go first with Instructions] [Operator Our ahead. Gabriela Please

Gabriela Borges

versus color morning, How the of the good year? you changes little Ron, us incremental what of wasn’t budget. I wanted Can trend willingness you’re at the more seeing are a here? give that the beginning taking the difference Hi, on the are X between seeing start or in ago you your for the comment reevaluation EE&T? the M&T question. contemplated And thanks on that months pipeline maybe to

Ron Yekutiel

underlying revaluation business much So our more to the but I the understand make about want again, what’s I the It’s trends? question. not budget, sure so of

Gabriela Borges

What Yes, hearing customers? from you’re the correct.

Ron Yekutiel

Okay. do Thank you, Great. love I’d that. to Gabriela.

productivity mentioned, So in all, first we’ve that the that highest over mean, this force back logos, ‘XX The it as customer was doing a are good was sales the QX for I level success since been X it XXXX. it year. to seen rebounded quarter ‘XX. I booking of was was that And to EE&T reps as it’s not levels. mean new in folks, as QX sales that

If at a for immediate some quite proportion deals in you’re are basically, less initially, push lot was lot closed logos them – now, of longer was upsells COVID after were that to pipeline the new have lot come building big time QX. and cycles in around picked together, thoughtful It’s It’s of to have new spoke more up. logos, And the a a of the kind forward. less last In strategic new and various of new logos again we that need response video. and said that of looking the them versus a logos urgent that time and it people about address them of We up been advanced that prolonged more upsells, now usage. need. discussions about an having stuff about like

you longer, took I’ll flagship are about give example a one still from is segments. it these examples. platform. seeing still And case, blend. more In An the is So is less the we’ve but move the demand all closing. Geographically, close. same events we’re The the of event more new couple through given largest or any it’s event coming across enterprise. platforms the that that

America, So before, and on it’s still in or Europe about the telecom, Media channel new services upsells less most APAC mainly in change lower. we’ve EE&T, It’s EMEA, America. percent professional is of business. quarter professional of from APAC. we’re our new North out the No bookings coming this by And services, and then logos as in followed seen of XX%. and the not and bookings North

we that we’re reduced And in education, lot watching somewhat business but have services. good recession-proof, customers our more of portion much savings TV. than our flagship heard obviously, on least we’re in And in call from and did with not is vendors event feel of economic because last some more introducing cautious. scale. more a I a of areas, at is replacing our multiple general, event We of mention of that economy platform a recession, also because discussions interest direct

of that’s kind what high So the of level seen. we’ve

management, that’s versus telecom a that their looking four. webcasting. of example us bank, that new combination learning mentioned a in we’ve global closing both deals and service new five and had to deals provider continued be and continues sample new European support had their a UK. had live systems, Switzerland In content of IT we several firm for big dollar to the classroom. you’re Italy, expansion, and given EDU wealth X-day If capture events. flagship telecom, needed more A of deal a six. investor of our our bunch of asset tech for And one media leading events, midsized use one, we a sector and workflows into streaming. out customer enterprise virtual public ones electric that in we’re We us management global traditional events do We bit and multimillion existing U.S., a across management a expanded another all companies we customer management in the And new around customers media of at now an countries. the

We Europe, new countries into in which have we with big them. a telco went Eastern multiple

that we the lot provided and And a in services more Asia. existing to Europe on world major add top the the of have pipeline, management. platform around in U.S., are have for we customers event moving the existing We bags content forward of that

good the them partner. them, there AWS is for you, you gives holding One closed tech of a a already way, events. through by are flagship that and deal feel as that the July, way, hopefully of flow. By are This of more the companies in Is Gabriela? current some

Gabriela Borges

you thank detail. for you. Thank the Yes,

strategy an on table have acquisition. plan earlier a from release update the shareholder week. question in little which an question, rights – the have We how on about potential thinking bit you’re the is is last acquisition? company standalone other Kaltura’s versus week for give via Could you saw of you a us of the I The press offer [indiscernible]

Ron Yekutiel

saw that issued evaluate Board will releases accumulation duration adopt QX as rights be the of investment did of course insofar all management, sponsor out. shares the by Insofar treatment Yes. noted. stockholder help two a our we them Well, limited that you in And press offer, as to equal the stockholders. due plan offer we an as

the sure standard that course. in make also this at its using duties. best situation, to fiduciary to point, and an of We feedback due for on this in type and comment tool Obviously, just topic can’t our the the It’s available Board we it. remains want will charge we’re provide position the Board further

Gabriela Borges

sense. makes you. Thank That

Ron Yekutiel

Thank you.

Operator

The with go with question Matt next Bank. Niknam Please comes Deutsche ahead.

Matt Niknam

Hi, guys. EBITDA. My is for question. question the taking you Thank on adjusted

So about savings $XX you’ve to the expected annualized million. reductions headcount mentioned drive of are

does So one hit savings well. I’m adjusted wondering that level? in imply as that just housekeeping question or when And I just do then rate run then just for And what getting back to cost timing-wise? EBITDA ultimately, terms breakeven of have you positive

operations Is Or mentioned that year? for I just the want is single-digit that from You flow XH? full for cash clarify. loss. to Thanks.

Yaron Garmazi

the it’s Yaron. Thank you Matt, for question.

do took Regarding some the soon be and going reducing as headcount our the months yes, process, take probably impact will savings, the basically the it. million more we couple $XX that complete which full another as to of is us actions we around other to

And math now you in right QX that improvement fruits improvement. of QX, order We the And remaining – for doing are will on we The the a to believe very us in significant the on we levels, see for QX. churn guided in the see will in the in we the controlled year revenue adjusted and to we full see mentioned bookings will if to do that year. even the next very a on as will impact profitability and nice you acceleration Ron start see EBITDA we momentum continuing that hit next XXXX. fact see based

million line the as X-digit, is accelerate the going items and revenue of adjusted the we save at the So annual best we year, on regarding to EBITDA do believe to be taking that in continue to $XX basis, at is our next close This to least two take same will the breakeven. it and the next an especially profitability, year. going to time,

year. $XX the X all of which for compared going this So number go to the negative is it’s year, way to digit million, a to around probably next

strong flow cash some cash cash will be of in you to terms In in we of downside comfortable by negative started which, HX And quarter terms going situation a it’s can we as flow, I way, the in very you flow. where HX that tell this very momentum, was in a collection with X-digit see a compared saw feel mirror of whole. that the the it QX, was we from to that but the it HX very,

Matt Niknam

If I just sorry. one ahead, could – I follow-up go had question other

Yaron Garmazi

this Yes. can more the the – future comment flow cash the And cash [indiscernible] flow, a lagging see. as the one is point at adjusted future EBITDA, is little you bit

into the raise are do need future. it as a that to So financials that improving to take year, will be in breakeven. we we believe as cash XXXX, we managing as are the additional EBITDA territory, And our least next positive at before, going in order to to soon we to said we able not adjusted going will we

Matt Niknam

in all verticals, of of impacting the had Got follow-up I’m geographies? longer there sales terms I just just Has that it. varied macro Thanks. any then cycles. or a And is context base? at Got the general is around wondering it. statement it if more the more across is

Ron Yekutiel

that might it always tell in more because current to not a other volume strategic experience of does a extent, I education. any buyers. – that the not enterprise, the a not of requires in seen it and function as to more seen, and and U.S. Part or Europe. different Obviously, be it a function largely review at function we’ve different, and is so rebound seen platform to enterprise come across both think same is users condition. is that a the of it’s the it’s moving geographically more media consensus fact applies a it to to that event But much of many vertical, of was most frequency we’re the further post-COVID. but macroeconomic some maybe than an Part much of telecom such, is yearlong related in is and the mostly more that business also in of And hard it’s deals. deals part clunkier and stickier benefit so same

so And it’s hard say. bit a to

Matt Niknam

great. Thank the That’s you. color both. Appreciate from

Operator

DJ with next comes Canaccord. The question with Hynes Please go ahead.

DJ Hynes

Good morning, guys.

So the Ron, Would to time rates the was I of contribute it in the to corporate today? down efforts? And does split ballpark M&T how think each at margins? and of evenly how the that IPO, roughly get like are terms, business, What love the update just growth respective education does revenue. break an

Ron Yekutiel

well? as three telecom EE&T or there? media between question the What was insofar as So in the and

DJ Hynes

them. All three of

get growth of So each margins? are what kind how do corporate, is education, M&T, how to the business, to they I would rates contributing an each of just revenue, update contribute on

Ron Yekutiel

that. do to Happy

telecom, quarter, tech or in then enterprise, So the by example seen, then somewhere you as the third give of probably year-over-year from business. media fastest trends education, from and seen order. so time, this was OEM now of tech another EDU XX% side Insofar revenue IPO of of way from the IPO the grower, followed about and more and OEM we’ve less the telecom looking an the I’ll by what we’ve XX% coming media business XX% or around at coming at enterprise coming and another from coming we were

If bookings. bookings, way you enterprise was way grower the look of by the by of fastest

been sometimes something the greatest we think events is market greatest is is largest largest it’s bit the is into that we a it for moved So of telecom TAM the they content webinars be world. that and post-COVID the in to prior I have which media is supporting back. And change up. scale that you biggest is and professional as management structure, on would on said is rest opportunity sassy sometimes happening. also momentum there, has of big improvement it, with in margin and become and It have reason enterprise. the a has dropped that environments us pulling it going pulling All-in-all, the from indeed emerging and becomes there We subscription this Insofar that as the put seen it side of the the services the as more game, believe in year, have is there a more dance become momentum revenue you’re the economy and percentage transactional the forward, where more recurring there. you’re effective we this of

are total caused cases, but weighing we been you bit A a in as M&T. that gross down the have quarters significant, multi-year in plan, increase continue occur it and the per the us together EE&T margin to the original quarter-by-quarter, cost both in gross margins margin have pertains there not side quite go of that went for representing is we said for plan What’s will shrinking provided. of company, the an etcetera, on and lot the a that we while in the up plan, restructuring bit M&T ahead for gross financially services their these your a as each and direction operationally trends Does good which a the it The of the down. of points a we expect a to has the one So, gained on cloud events, has a is as question? more other, to real more bit through that less EE&T margin and in address bit merge There activities. professional of we if both move we similar of more which in resources, time, they even goods towards bit become for live it very of a gross us is other portion look the business, there. big of interesting,

DJ Hynes

comment super with the how you the just had with on in where helpful KX, One and team can have Yes, engagement their of that’s you table? color. the board that’s the on I on follow-up mean offer evaluation process stands much the

Ron Yekutiel

to Yes. the not privileged moment. that at share am Obviously, I

you thank in we a We asking. it. will to, But for will position be share absolutely

DJ Hynes

Okay. Thanks guys.

Operator

go The with Michael next Wells Please with question Fargo. Turrin comes ahead.

Austin Williams

wanted as for of it should down And aware result guide. as guys. stronger specific is the headwinds of drill that This Austin benefit quarter just have full dollar? OpEx relates a be in there Michael Williams to conversely, anything how the on seen we Is exposures into Turrin. just guide? I and currency the the FX Hi to to those and year a you impacted the

Yaron Garmazi

a to of currency us obviously, around question trying are situation great the It’s always. Yes. because for all handle

a a dollar. the a – Europe. – to year, is you very build on we to compared give of it go. business thoughtful in were me impact we million weakness roughly to took when the mentioned on And consideration of of guidance the the is was $X.X dollar. pressure year, that QX number, where to rest can there there very but euro coming due we Let on statement negative is of the euro there to overview. because compared quick an Definitely, the of in for our from it into impact line, the We roughly it the definitely, the On my top the weakened close XX%

impact there. there an So, is

have obviously, compared fact have we we of in savings Israeli the operation, currency. stronger Israeli on other is The dollars we is terms some that – less the dollar coming which, expenses of side the based from the coin also that to are

the which, the that in to adjusted short, of story the through took long EBITDA. But also a guided rest from and for some of numbers the way, EBITDA. is of line top of benefit the for it we is in we shekel, into Israeli guidance make as terms the there the in this we will the mentioned on that already rest into is the took pressure main the there a initiating one And fact the by I the consideration consideration reduce year. adjusted the reasons way year We for

Austin Williams

just have great. you just how term? one return down impacting I That’s Dollar-based the churn longer this is can wondering thoughts Thank number if expansion in if this just I And any the quarter. number. or was on had you. where follow-up. in am

Yaron Garmazi

– are the hit from significant our that because than customer, other impact we churn. the that gross gross specific churn Yes. can still – had the that I this didn’t have mentioned of you change that the tell we customers specific the at beginning retention, growth of – any so than gross we the in customer then the taking other churn, we year,

similar very before. had numbers to we that was it So, the

definitely, there and believe at some for COVID. we had for go you path forward, the last So, coming it that, see quarter have XXX%. in the to as before had went is the would we much stronger the forward if for assume was the that at are same It some pre-COVID. impact came the for in it to going it in see of guiding will which the last this back point see saw the numbers numbers that fact despite specific a a this the in into bookings numbers going most and we into of I that go that you of later part MDR, But pressure. of than we the around the very which path few close the of will having to the to therefore, MDR and probably Other customer. down definitely do from very not – quarter, we had strong be stay But Ron that, quarter. some the at quarter that But quarter in this that revenue mentioned, actual came level back look going the – we least impact than a year that weeks previous not the quarters. we near-term, the on limited the COVID, will we we the

Ron Yekutiel

to last a throwing to the reason to and it’s ‘XX expect QX we add when we what year and that probably comparison than to And we this, given I said said point call in last tougher were will happen that increases. the one MDR, down. the QX ‘XX going come just is is we COVID

we as the look we continuation the comparing into rising. off. And which this starts year, base of by so are balancing Conversely, that this is

knew And the tougher going down. and it’s come comparison, so at quarter numbers two, to are we a

Yaron Garmazi

And quarter. put on quarter to the – this year’s that as question, the last MDR compared last euro your well previous point original some the definitely the in – is euro pressure regarding

Operator

ahead. question comes Ryan go & next The with Koontz Please Company. with Needham

Ryan Koontz

Any this Nice understand you. hear in Thank like your and help opportunities? higher question. the helpful you partners change channel for progress with it adapting near-term productivity Thanks go-to-market front. kind can Any Hi. the us be tangible would there? to to color the about new color the sales there or AWS, on environment motion partners, of sales your your

Ron Yekutiel

Yes.

deals are AWS, have good as a We a are closing are of partner. said, they bunch – I

acceleration is the coming of from think are event a I of the platform direction. good an it’s that maturity deals here and amount supporting

I they mentioned, longer a gave say never they in year manner quarter to we could very but was just pipeline expected lot is stronger, the then a happening. them, in a we quarter and of and that’s this have deals, that. throughout has new said lost see is of the come at contributing significant be time came closing. these for that significant. happen in in beginning and would first year impact is it’s next the getting same start quite the – that I As took product earnest they and now that given And and We that this to this of we the more said birth really that

few that now is how when happen. surprise first much kind now And reflex mentioned, and more There as people quarters kind so was for it’s up. I expect of of of a to and Especially down come move more of us. over have, COVID for deals they and was the these a that back We this were question, big waiting to happen not a we the And for cost-effective next that process company. the more replace really replace we a as and when in immediate we fact multiple the questions for that important. get IT from around that now, vendors to That’s way. month going budgets, even more need could do into more the strategic the whole they and an had thought are for event, around how for they infrastructure

So, I think that’s all leading towards higher productivity.

to be we there. to the to continue expect could about and We future note very important be there. numbers One as the that thing that think

sales said of of growth the and a we get combining that’s enabling to addition. we optimize So, we are way balance business the are re-org From going did perspective, profitability, and us freeze that two we to are more down obviously the as a lot and and continuing part trim we kind to in better a now, time, units but the synergies. slow between we same said earlier at that that

it’s retention. the of at that gross people but way, in have the of ramp this already everything of level retention that even of including this not half have kind current company kind maintain is the all if affected retention productivity we because overall same apply the of bad first numbers pegged kind year, raising into less the has. And are in that and the as acceleration until We you year What’s but the same interesting that. happened than and by not gross headcount we gross quarter, is is that base of all now, second the that the the that the quarter, same the we the last it’s year, year, this the level it now

than more to next set are rates growth double We year.

bring that take we is obviously, on the very, expect that seeing growth a that But notion are for we here year, very again, year that given deals coming an it existing results. to which higher compared see was even tough so guidance. rate or this based is QX significant existing general a could evolution the a providing year not acceleration about the revolution something idea and we to And doesn’t

higher the doing upsides materially. are fact of new could that with our event forward, breakeven EBITDA half that’s the hopefully business, bringing a being the and puts a with this profitability jump to the to productivity think platform specifically come second are as single-digit factors if So, let on quarter next looking number. adjusted digit other cash, we economy alone, it And mentioned, associated we better, year, And mid-single that, coupled start continues different more the etcetera, I a up this assuming forward that like digit, and us the the of and in place, that. single cash after in going year that at that’s of

Ryan Koontz

that with OEM coming events And platform, primarily that? anything the Got versus success is enterprise or like tech that or it. from

Ron Yekutiel

looking their tech that them And of actually are insert consuming of are capabilities. All into OEM, to we components it. supporting are folks the that

some have there. we cycles very interesting So,

way Events trade internal platform. to It’s I of events communication. where are product is marketing. go to that events thing that user different events things. we these and On lot the to about customer and think education about, one events education. multiple It’s is group, And have to is the we built external. the mean front, webinar shows. things actually we It’s our note schools executive event across have from a the digital and all It’s small way spectrum. what’s and touches taken different generally training gathering, could all

event the look we cost benefit these using probably a peers platforms of terms and data for and reach that said, is could there that that’s market one, the budgets, apply. as as then be generally, that, effective. an events into virtual more So, future, immense in physical we more to so just like recession, than post-COVID if and going and to lower is stuff And are there

ago And continue see that to point. point brings we shift that of we that. think reason this get of couple of over company a in We to places. years of enables So, a the to we the dramatic I are what it’s at lot could move the and multiyear are together a a compared and offer. years we completing best we to used was think a for different it. we were invest it kind what of now last couple The It’s

Ryan Koontz

Got it. Ron. Thanks

Ron Yekutiel

Thanks.

Operator

Securities. ahead. [Operator go Instructions] Patrick with The Please next with Walravens question JMP comes

Patrick Walravens

so so you as to company. public mean I picture, as you. way big shoots. for rough But Thank some Great. far go are just Alright. is shareholder it’s been think a Kaltura do Ron the maximize what value? There CEO, best a green

Ron Yekutiel

things these the different right growth time. able It’s do. and to It’s and to strike to be any That’s you attempting profits which important and question cash profits free to distribute create at the end to always between Look, the you, flows to not balance day, Obviously, over same the Thank is then. we Pat. company and need goal of the are different profitability, times. create balance. of

we now have profitable a into growth and thoughtful the we think I balance adjusted and going growth more that into are future.

moved into pick – real just etcetera, the are us converging. that’s that It’s the management end-to-end think cases. pond coming have real-time I we of to deal an pond the because fight. a and and was these events, world from offer of use larger for solution to into real-time the content different all important it not vendors the additional smaller It’s is

important that the So, needed that electron have invest was we in think potential kind to to done jump of next I of few years. in the company the

we quickly be think done are growth. now we need we come coming back to with right set, to profitable what have more is that to show the I before, product to which

after leading beyond think indicators are and to going booking. that regression powerful the was lot not this a a for force in productivity we above typical I think and to And been seeing that There There been them to typical that pertain are Kaltura. COVID Like a I is a have for of about, the industry been come to and year is specific back, a have COVID I talk are things we specific. and mean year, come year. things has the few has obviously but not things us. said, back.

profitable And so that be we believe we back able going to to come are growth. to

Patrick Walravens

I do part your of evaluating that mean be Okay. should think that? options also you strategic

Ron Yekutiel

any or That’s to But by other for it’s evaluating question always on table. your deal, will it’s being options the strategy the Whatever evaluating always always and we we doing not we be our the are is, current in that’s be job itself. at considered at, looked right been the a shareholders time. and itself case, given is it’s sure. Will if it

Patrick Walravens

you. Okay. Thank

Operator

It appears no we questions. have got further

turn concludes Please would back go to this conference ahead. closing to So, now question-and-answer our for I like remarks. Ron Yekutiel session. the any over

Ron Yekutiel

for and all continued care. Bye-bye. time and you successful hopefully thank to want support healthy your year for a Just everybody. again and Take

Operator

for concluded. now Thank today’s attending is conference you This presentation.

You may good now day. disconnect. Have a

Kaltura (KLTR) 14 Aug 222022 Q2 Earnings call transcript