KLTR - Earnings call 3 2023

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Operator

For opening remarks and introductions, I will now turn the call over to Erica Mannion at 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 third a business begin results Ron the for update. of quarter and XXXX, the September provide a ended with review and financial for Yaron XXXX. full quarter year in the for outlook detail the by of followed company's greater the third the will results XXXX, fourth quarter

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

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

like would to call over I Now the to turn Ron.

Ron Yekutiel

you, quarter up on the Thank third of million. of we joining and call $XX.X of the reported quarter for X% this year-over-year, Today, the revenue XXXX $XX.X $X.X everyone total and for subscription was year-over-year. million, to Erica, EBITDA morning. up X% million, Adjusted revenue for us thanks

For we row, XX% was XXXX. revenue total the compared posted XXXX. rate subscription of QX in year-over-year XX% fourth a the quarter and Subscription since in total to revenue highest revenue record represented our first of growth quarter the revenue

XXXX. that are profit returning we fruitful the adjusted line fourth third for pleased our quarter, that the EBITDA of to also proven since posted for operations, cash profitability the We highest share and flow to since $X.X the has XXXX. achieved In from year. burn on the our time Stabilizing keen been quarter our cash bottom in we million first main and focus goal has

plan We from XXXX reported to that we EBITDA achieve in stated operations we have both a adjusted that again. XXXX and positive flow had and repeatedly and it have cash

We we events. all as quarter, their are who the quarter, with their secured leading a We in hybrid a virtual it deal to customer have ahead services new on and again Kaltura chosen third plan. In has business pleased go achieved for update. go-to third the the X-digit to financial of platform

banks. States, the also X-digit of a collaboration with of expanded signing deal with those United in one X largest our the We upsell banks including

This employees, use and new drive and existing with customers cases continued for customers to demand Over with for real-time prospects. quarter, continued a across Kaltura consolidation we on-demand, see live and ones. growing around wide larger of expansions both to the array deals video

our customer huge with was strengthening took live Discussions fireside to and utilize provide included leading less to that pipelines. annual real-time training. quarter Dreamforce, as for than quarter discussing of building our Salesforce+ success including had through beyond and And Adobe, our which new we AWS, reactions, virtual event on-demand showcase of reach crowd events to among Virtually product place ago best marketing featuring hybrid panel event and their as knowledge perspective, and experience customer the with Live about AI this tools. to connected a and order Kaltura virtual XXXX Fortune a professionals XXX event AI-based solution our From utilize a which other marketing Virtually internal large from AI leading focused chats from and how remote brands, power to and use on expanded enrich will virtual to a expanded external thousands their insightful events Kaltura video power the This example, innovative Salesforce, deal which conferencing suite classroom world, LMS For leaders their in last was excite a portal also minds customer leveraging collaboration, assistant, things, week also We to releases, robust X-digit to, ROI, registrants. and revolved Live marketing marketing European experiences. learning passing video is enhancing this and for own our including sharing content employee quarter including working year's a later. uses university event, hosted year our hybrid with videos VMware, and a audiences and It another Kaltura such in this I content talk a management discovery, third like improved senior new tech online customers huge events, around SAP Kaltura latest started success. and discussions cases, that AI-focused for

how acknowledging continue explored to AI significant ongoing all We the sustainability, the Underlying to is the transformative importance AI attention evolution revolutionizing in in discussions for growing how will of We all industry. equity, and diversity, impact landscape. us inclusion, also in of its the marketing game dedicated and their marketing. was potential marketers

for powered offerings started with market. Salesforce+ the Einstein to AI moving incorporated to topic services our on forward alignment AI updates, While content AI Kaltura AI in of for product enrichment repurposing and great bringing we've leveraged sessions, Salesforce events. over XXX to Kaltura hours. Dreamforce FMPs and organizers automatic value providing for and to their AI and takeaways summaries create countless particularly key focus, event saving marketers

to channels. technology that targeted on-the-fly pilot In AI addition, automatically company live short-form produce power Valley highly distribution across a video rapidly generative publish content utilizes Silicon another leading quarter this with program tools many went and Kaltura it

AI actions efficacy to the and providing management. of intelligent automated increase suggestions released streamlines with This an process event up webinars, also the quarter, Assistant that Kaltura of users setting

plan other actions tool we to engagement provide to from presenters insights the and optimizing a webinars providing maximizing Soon will and event and impact expand to strategies, be the suggested of real-time organizers audience Assistant metrics. valuable recommending experience during events and performance We for the this Assistant AI session. believe to each

also our to cloud new TV added our now We and offering, chatbot Kaltura content engages Genie media AI-powered an viewers TV TV suggestions. tailored telecom with

Kaltura best with of our platform. accelerator off and Lastly, with program third-party in on the Gen-AI AI, we the passing flexible open AI technologies integrating the goal quarter kicked a

industries such editing, with engaged their fields solutions already as have We large interest and creation, start-ups needs. analysis. diverse video for repurposing specialized cases these XX shown pioneering that specific in across and XX Kaltura are Over in Gen-AI use various customers

the excited the and great ecosystem. are can to We AI that to the bring tech about our program opportunity accelerator wider customers

improved and These Beyond video event features more management, integration recording AI, ROI. aimed during enhancing analytics, at E&P polls, platform portal. our the include front, front, engagement dashboard on session new product the quarter for deeper we with quick and introduced interactive a

added a for integration, HubSpot new also a connector a theme CRM, We editor to self-store customization. and

fast and who to to we allow our platform media server-side ad products new to integrated to want streaming Samsung, M&T their and the us the third-party designed Roku. like insertion target syndicate channels Amazon to Kaltura companies segment ad-supported On platforms LG, front, broaden content Prime of capabilities

briefly company in Before in that including would like Yaron, Kaltura recent we over on where countries, operates East. presence. is the Middle the many a a to I I summarize and sizable comment domiciled U.S. have hand to call the Israel, escalation

to to our positive milestone to operations. our to products impact in To In positive posting projects Kalturans any any achieved thoughts everyone quarter go mitigate Israel-based to to reserve our profitability, our the summary, our important XX% X% from which our services allocating we been seen and duty, are our not and for are global Approximately and impacted. approximately between and we called heartbroken of and Israeli workforce, families their is has and our adjusted cash that journey third of We prayers to and up in workforce, we've back prioritizing both been ability and EBITDA else to out has disruption resources an customers. flow business. deliver date,

our the we guidance subscription increasing total and full results, quarterly the Given are revenue year. slightly for

funnel gross qualified elongated relatively we been and new levels. year increased new number down sequentially, bookings underscoring offerings, industry KPIs, have the to the retention the discussing Kaltura's headwinds While deals cycles comprehensive in on of recent and top renewals. both budgets, ticked like and pressure down of Lower in sales the weigh price have have new leads, sales have continued the this quarters flat kept throughout interest grew

in a which continue headwind to a guidance. quarter, impact to fourth create revenue the combined will As forecast the result, we reflected in is our

we of middle million cash negative lastly, to with for $XX.X arrive second cash again that, range the a maximum cash Yaron. posting flow second restating half adjusted EBITDA reaffirming positive the adjusted following of in Yaron, our EBITDA to more half in in With from cash XXXX. negative consumption seasonal positive the the reserves. detail. cash CFO, with results our once compared our of financial of breakeven expectation of XXXX. achieve into losses We're million over $X.X I'll are raising discuss $XX.X our also to by that setting again from it next forecasted typical operations to expect the of in greater annual reaffirming operations This XXXX. we flow our with year, year, million $XX.X the the from of for half XXXX turn at translates sufficient compared expectation are a We XXXX. in And first million We're operations also guidance full

Yaron Garmazi

morning, and good Ron, everyone. you, Thank

revenue A financials referring for metric, release, earnings XXXX, I www.investors.kaltura.com. which reconciliation EBITDA. As please the available X% up X% at the note a that included expect Total was we $XXX.X to of which quarter while to $XXX was services be recurring our XX% year-over-year. and quarter contributed million, revenues non-GAAP adjusted million, revenue XX, over today's $X.X GAAP obligations $XX.X is X% performance XX% year-over-year, year-over-year. up The million, on in recognize million, professional of third the XX revenue I down year-over-year. million, third were $XX.X year-over-year, is remaining non-GAAP September website up X% review Subscription revenue ended today, months. down will next results Annualized was as

down for our Within the gross the XXXX. XX%. third margin gross profit million, representing million, rate a up XX% Our of for E&P XX%, segment, for $X.XX from XX% contributed the XX%, was segment, XX% for revenue was margin the growth. XXXX. M&T QX gross third $XX.X retention XXX% XXXX. profit X% for quarter year-over-year GAAP XX% positive $X.X in QX down for was margin $XX in million, quarter negative million $XX.X the million $X.X up XXXX. the from was gross of total profit per net in quarter revenue revenue XX% quarter Within from quarter of up million, in was segment, margin gross while diluted X% Subscription representing compared quarter million, total with our third Adjusted revenue gross gross a With segment, a professional quarter was was EBITDA year-over-year. million, third QX was loss was $X.X services year-over-year. in a our QX quarter $X.X E&P the third margin or our GAAP year-over-year. share. X% services representing dollar million, gross $X.X net year-over-year, year-over-year, representing up revenue $XX.X Within Subscription while million, M&T contributed was professional $XX.X for revenue XX% $X.X million, the improving $XX.X down million,

to the quarter decrease $XX.X to compared million in $XX.X million. year Turning $X.X by X% our XXXX. XX, of flow, expect revenue balance the and total In securities. X% to to I and in the sheet fourth quarter, we between fiscal and quarter cash Net for $XX.X between the XXXX. would provided by provided and and cash we for now and $X.X QX million like million the be marketable subscription growth million XXXX to to X% the December ending in cash with activity turn $XX.X decline between was operating to X% million revenue outlook to to ended to quarter fourth $XX.X million

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

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

a be total $X despite million. environment industry adjusted expect for our between year reaffirming for summary, million adjusted a revenue, our XXXX. of EBITDA achieving We revenue our to the positive In the the second the and EBITDA full flow the increasing half in cash slightly rest and are $X.X subscription and we from and headwinds, to negative for guidance focus year of operation macro

achieving a breakeven to a second of reserves half independent to Operator? adjusted expectation growth. Lastly, XXXX in with With and the positive by of topline flow the we and we that, reaffirming will XXXX sufficient call open operations cash our questions. cash to EBITDA from are our

Operator

the And with Instructions] question comes [Operator from Sachs. first Gabriela Goldman Borges

Jacob Titleman

This is Titleman Gabriela. Jacob for on

with has in changed fourth and guide which revenue, subscription has the Kaltura the grown the X sequential macro resulting thoughts Israel. what the ground you the in growth for in Our employees last environment On quarters, for all quarter? on sequentially that's the negative are

Ron Yekutiel

That about in of and to of gross Thank that we your appreciate because and already. continued. couple Israel. quarters comments bookings the happen, that's that was has changed. Jake, the By last said you, quarter retention last versus the Nothing way, expected

the is bit around said that me we a we business where let insight not more was is things give quarter. you feel to around more had see than a different general But can You direction bit give background are. very and you last where

enterprise North First, and upsells by by came America. in also headed headed contribution was logos versus this quarter, new still from most and

event heat You our on side especially use for could cases. European in marketing external more have we the platform financial increase see demand there's There our continued a pressure. bit where is and

they Now, that's to the more that and moved We're internal we've customer a largest that's moved referred this been competitor of firms one investment communication years discussing we a us in their X-digit deal all to a something the of lot events. getting earlier, with we've as that's not And world, continues. to power Again, from new. marketing recent so in also a external. that, to new from

than internal see around continues And the from us, an they to and is the internal and responded company external We sometimes the combined value tech around, it and compared that's rate the way, versus this win make grew And initial of change By X.Xx been high we higher a year, we quarter. so the deals process. Again, of to account many isn't also with existing XXX you're external unique also also Kaltura, our and Half mentioned earlier percent continue way be how deal both cases for quarters this usual from it's which to generally so all signed external, quarter companies the we ARPU continued seeing Win the bookings grow. they percent expanded their typical. Fortune and internal, of consolidate to us. to were and lose. channels. this RFPs higher with X-digit to choppy. we that about had final also It's that quarter actually where other last another into

deals good but saw It that's long We to had the mid for gross funnel well term. amazing competitors The year, deep well. so less, X the working pressure still about price to and that lower. quarter better again. but on quite a also, question that. of But isn't a short Now was deployment cycles That's down, as the pressures. seeing at generally the bit productivity to we're increases to our digit. result from a QX, That still All lower it us TAM, this lower. number the large To booking dip, the last term, means so quarter, our is delayed though are And TBMs is of future good new bookings good the mentioned it's seeing signs. accelerating cycles, sales bookings quarters for SBR I these about we that We professional flattish the revenue of summer, compared we're Still than good. quarter longer with get year. that in And start earlier the lower in does sequentially. impact sales not grew because to continued margin, that reduce kind top know headwinds. in PS of it our into levels it's the reported year-over-year. QX would new note signs. the expect and drop less still I QX double XX% which and this though your budgets, percent meetings and services. are we industry We channels are

but have We salesperson. so average selling year of the that had X/X that are ago, if less we salespeople, the bookings better we X/X that actually have by now XX% salespeople we're a of per an means

is already That's but existing to we're deals expected question? on that the seeing into your Does where address on answer, lengthy see is. are business And And That's that that you a that not -- to for are a can are going has combination start But of macro generally us based so believe retention, to that, headwinds Productivity going settle bit is pushed The later improving. that that's to expected continue in we already QX. compression speaking, conditions down. about pocket. a feel the down. we in we, business, gives that, QX based go talk that up. it

Jacob Titleman

that look for on if Yaron. call, provide going helpful Thanks. maybe planning but we then color. that's how XXXX QX, we for numbers the this exit at to should one this That's you're XXXX like at And not super realize think rate for And implied I Absolutely. point? about guidance

Yaron Garmazi

definitely changed point for don't QX and the to revenue, Thank QX revenue it you mentioned, direction. the in decline to rate important it's that the the want to XXXX. this the revenue. trends early professional the we in that subscription question. we We grow in retention close we the before and to booking projected, we that in more same will give too rate. pressure Ron we exact the probably comment, to continue subscription decline we way the on to the The a But grow. professional see want services quarter. But It's continued one The as into long and Net-net, of that projected to see Yes. we time, is continue continuing you make short, the look XXXX it and that you grow. next see number will saw year we all, at services. see of continue still to revenue It's should to at first before terms story some see that

Operator

And Company. Ryan Koontz question & the with from Needham comes next

Ryan Koontz

you internally ecosystem much on developments, bringing buy? versus AI your Thanks. you're through Ron, your walk how kind you Are us strategy I'm the these? certainly features sourcing there of versus rolling out, through can some on new of of enthused build about AI but walk can On partners kind you're you're the that some of of partnering? bear, you partnering us to for

Ron Yekutiel

direction behalf owned last definitely cake running we're by we we the Yes, of an by have of which because then in customers. almost and AI, data complete on layered also important And do to workflows, or is that top the layer, us. layer, if that the on engagement. Kaltura the so system we Sure. of the it. deep AI we metadata, benefit integration of would the the for Part of is we us couple the Ryan. the add us you managed the that into itself a own the are that engagement all of the is AI Because workflow and that, quarters have Happy last is said

be into If want prompted with you the of is yourself a to have said several the And and the engagement, do. workflow then way that to beginning then vision data have we into have that the integration that loop. used AI work we we you full immediately that could from levels all the the the the together

distribution with it that Silicon now, addressing that that video, of on have the together videos them, fly we from to or needs. as like in out made we've I video. launched, mentioned exciting touching pertaining that building pertaining is us order in users. specific go Valley videos, that dealing be The to or order be of of and/or for us what the video one highly adopting otherwise. vendors there by you and management training to interactive focus the people own Some production or the repurposing around around post-production then of as highly type distribution This things to a ROI, lead M&A things see specific cater activities around are could consumption for context immediately or company to whatever, that existing Things leading to system video. breadth whether launched on or us. not engagement. and address looking distributes of this with creates that around could around we are to a the preparation to texts big the summarization or messaging virtual maximize way more a speaker videos, been going with the were said ChatGPT or at, specific and are to different That that Right are used those Things the that were creation our of that the the Historically, APIs and existing want And maybe and but technology even video, content short last form video providers we meaning like that different creation either things there's with the lists of of compressing distribution are is and the actually execution event, future off-the-shelf personalized, was marketing. for way we're help content we of forward. options And accommodations. time,

done in which Dreamforce, already automated the one done was their mentioned with way. that's was an And successful. to also hit. at event that Salesforce at Now starting It's other we

a We of partners. ecosystem with also mentioned that lot we are working

already these have with we Many given working we're other other consume services. there big XX and workflows, there's we easily We've are that into what Kaltura, across that are and some formally added of that us, A advantage and from history. I customers, that could done that said earlier mentioned, is As looking many are third-party flexible about are customers. coming others and XXs and companies. to joining insert and innovation APIs already open that, our that

We have we large same different and advance technology the E&P we're M&T. for for for beyond do going we AI. expect A AI, partners lot to company both the share of and plans, and them XXX here at as to

applications M&T we running. some mentioned have also We that

Ryan Koontz

displacements for X-figure Thank going On deals your use cases That's Thanks. in kind that announced, of great, some your multiple terms these trend them any your and there vendors still color. customer typically you deals, you of new Or X new you're Rob. of base? into? for of large are are general

Ron Yekutiel

the have. wealth It's bank specific we discussing, bank use of an -- we example, case. is but It's organically. power, mentioned In existing the them, we that a management use that that case combination either they of it continue to we're an existing both. for grow It's one

years window, or us. external to is to in had as secure internally had by in we a X-digit into specific a the year moved to learning in we've for they when into have portal budget-wise, very and collaboration. their cases, In deal. the of with expand need We ultimately all that and an wealth use discussion we'd we a way, required but expansion adding with external, discussed believe customer management to events less do This longer customers are use. distribution had past, recent to and from in we're enter bit users us bank in of content deal recall exit the budget their you. enable case, a connected already for said, and then look, is to and the keeps which a "TV" get now use into compliance new that the now with as wanted continuing the a continues and XXx for security of the the pertaining, such internal for this moved large door, you like customer, well where for on it distribution case either than a going move If dipped all we've piece, to specific in are climb already external only from way we our selected Kaltura, right the we a it's it but are situation. and to moved and the training and marketing that to wealth way we knowledge to from sharing ago the grow. adding an internal, large internal video example, their and and budget. ARPU But QX, creation for different but initial bank, land this a goes into budgetary webcasting was internal with internal in approvals they're reasons. being wait then do And move In to and video deal and year a started example to But Kaltura, the tools continues deep and we've other could customer started which story. managers had very mission-critical adding that grow X-digit where and By we way, It's Not be very we next figure the around. so grown goes rolling into was it use mentioned, another X-digit because deal. this external the as partner, Which, they around as and started departments, with a to

Ryan Koontz

helpful, And at best Ron. really the to there company. That's and everyone thoughts

Ron Yekutiel

Appreciate Thank it. you, Ryan.

Operator

And the Patrick JMP question Securities. comes with next Walravens from

Patrick Walravens

and add answered is let from families one, by know Number subscription you. you going QX million QX your is $X us, I my Ron, Thank to why but thoughts revenue and prayers, everyone. revenue -- And million? why subscription you, it, me $X.X down very to very, to clearly for and just

Ron Yekutiel

right? compared of I said I XX% year half flattish mentioned last at less. about And are it, and a bookings to

because end that The deal also said expect of it went said quarter. the right? We time we the we large it mentioned large quarter rates retention, other came than last it had is the that a piece lower quarter another in And that in after customer. for it But this announced because change, QX. of single and I down, and usual hit we go to to gross down it quarter, part we of we that RPO that last retention of continue had

Less lesser less. Now, services are and product so not churn, of rest spending M&T. to longer and customers the budget, retention annual is before. half still but a in no was because bookings, time, E&P By not E&P, in services not general And ended up last that this than this very new high gross reduction it's it points but is lesser which was gross it's similar us, the lower are revenue. few and that completely rates decent, on churn, of quarter mid-XXs. good It's reduction had the what way, price by related, leaving XX% than gap full was as is quarter of percentage down or retention have impact negative retention as a with rate needed. gross the from subscription for to Net-net, XXs the specific we're and seeing

again? going balance forecast right, we're saw what's in some a quarters? up we're already we've of are seeing for is released And also we've that But There's towards come retention some the question of QX QX. expected have that because what's And to that expected better a position There's to it's seeing cautious. some QX, I seen booking already in be given But we year likewise, mentioned tell and to Now, demand. very this numbers the going people. gross We're The a we'll happening is the we revenue. the And We're this end QX. forecast obviously, next in in earlier upside to last than go and booking. interesting higher different year, to don't again? really bookings, is by is deals. tick could interest expecting because the QX. seeing. lot we going up the you see in question productivity happen of already in seeing we happen of, what's We're

optimistic about cautiously but wait some reasons have being maybe to QX see. let's We different, and be

Patrick Walravens

Okay. consider say, mean, is And circumstances this strategic selling okay, under you what and consider would I company? our alternatives time the we

Ron Yekutiel

legitimate I that for don't single that said on it option or always are. is reasonable ever like we've know a think we're not any been it's we I earth. company that

But answer this the devil's versus that right an when would happen. deal I've different them then the If players. in been come way, Our and and again in care responsibility time it's we sense been It's said take time it. way. reconsider to is be with same to a our we never listen and of and the detail, in the could always that yes touch to the shareholders, -- right a will we've offer and been and time said closely, touch our by and no. place, makes We've has continue

Patrick Walravens

Yes.

on Okay. And note, I then a really -- lastly, positive

Ron Yekutiel

there right hearing players at macro already the to We're of are this not declining now most This the industry and is the of we EBITDA looking Yes. numbers beginning And see the we're are. than are. not. We're for Is want are because I We listen lot way hope do X and a and place a you're mention of where on whole at by continuing folks this have other aggressively admit that for? numbers, where one to -- there of must that to industry, out by their demand here and that numbers, doing others you because you adjusted at We're just in reported. us? set are Is Are the of easy it's retention year both it's the better there revenue. great kind headwinds which other that to the Definitely different. can year, some all in thing -- situation that isn't. pressures. is a not more year? everybody. the at is to a What have public, and happening meeting I been we've the

better. in other And are to term, when need that folks the consolidation all to the have and we're year short are saying, but it's so, I funnel that the continued next single things you like the interest in everything, direction activity see listen, we top savings an good, do term, want And have. don't our we and talking is for is to about we folks one hear better of product immediate going lot industry. want and about we Because see patiently for interest like for strategic to talk wait it's that the But We them do when the the a Kaltura And to platform as that moving to investment lot we of Kaltura. make. said, long a up. year, it's of to mid to that for to guided a have, moving pull want looks we hoping a

that the to to Not industry. And is, returns going years going nor so, I the turn us for hearing click But mean to other to are going it? of decent last on on doing for mean that we we around and again, over we're question The couple keep top to we've be we're the I not sure. -- think on when going continue And than it's when things think seen folks. the industry, better this. that's

color. needed add just Pat, Sorry, to this

Operator

comes Turrin the next And question Wells Michael with Fargo. from

Austin Williams

Williams Turrin. Austin is Michael on for This

ask the operating next to But areas It restated year. biggest into on emerge? wanted to Just expecting EBITDA the good for where XXXX, looking you are leverage that of breakeven to hear target. was that's

Ron Yekutiel

take it? to want you Yaron,

Yaron Garmazi

Yes.

now. be a this it's already going enable be I to revenue. year. XX%. next going production that the line, going us in to the -- same in that next the it's a as gross to do the which to agreement year. is increase positive will economics. solid now, with base, in the think major order a go to around don't next least wise, of some cost is but I us expense unit and our our least sales around major the continue to It to to expenses, Bottom get time, not the terms R&D statement the of In margin signed that right margin much will keep are with back happen If it in we revenue reacceleration cloud our positive beginning it for give year, of that sure, all at the same And that will more believe rest territory that the said able levels, low seeing balance the anyway to in along better we to our the one and into comment term, growth need doing efforts the First is my we right definitely increase gross significantly we into sheet, of keep push made of the statement providers, develop line start and of one a to to at I'm the revenue we marketing long At We and year. mid-XXs. and the all, trend adjusted of EBITDA short around getting term, very will bottom be back

Austin Williams

you. Okay. on this with discussion new to Got ask expansion are the from a monetization AI wanted also features, the of Assistant it. AI up open perspective? what and how And I the new this you expecting to some And changing is customers? Thank

Ron Yekutiel

and it question. say, residual higher Thanks consumed, is Or to that the the the a the videos the dramatically us take early used. I'll videos are from platform? That's and immediate do this Will ROI this of one. a for and know of greater question. greater amount for everybody. of We a value for for for that created will higher use the are It's subscription a from effect future? wherever Sure. come a come

too you the quarters, the than every be for same answer next be still And If At be will provide It's it's clear optimizing days you answer. by company creating latter is the ask able we're and to then maximizing more that I the this early. believe shape the value to me, opposed answer. But expect will and time, a the is time revenue. our as few initial on take still deployment that the in I provide that first. in point still of that to way, we'll around it early this over single focus ecosystem. enough to able

Operator

Iwanyc Oppenheimer. next comes the And from question George with

George Iwanyc

touch that can Ron, your give and you're maybe put comments on following the you about parts sales platform us perspective some of up and there? the the seeing, seeing progress productivity traction place you're lower on you the in

Ron Yekutiel

the different like that year this that. focus aspects focus, need to bigger was on the our this. we happy given I'm area to in the do of Yes, that an business, throughout especially said not especially Look, the

small, into expansion significant the a complete the working user into has we that the for touch clear the webinars order year classroom, that inserted That to and we bit grown virtual year. yet this generator to certain more The step part that our number a currently a most that better into our the companies, around even buyer, the smaller one in but, of of able the it. revenue part, expect into point month-over-month. XXX% by immediate that next year expect to that was arrive the we results, will than company never mentioned I as on products, on have platform for into To of the one place also focus sale. was so are clients the the it entire forecasted seeing increased will just the lower I as conferencing event improved framework Self-service be, as around on. calvary enterprise, effort. real-time KPIs number and have took for not a we, we've being for to education, and companies, the large we'll new higher larger that first complete seen put this, things we've small quarter-over-quarter. bit I the a less, an we've and increasing platform, revenue have that our are But XXX% like before way, and AI updated of everybody it in on very more different our about a year between well are years is And we're flow by webinars revenue in as went messaging Now, and webinars. throughout been by, do channels are for into and I in company and year, an be are card, but looking this required at said new And said verticals, more that impact, has a are conversion adoption, year. the advancing a not we from better created not touch enterprise. It's KPIs self-serve more we credit enterprise SMBs. the doing and come. from to move media And been to larger CMO, applying better this and the type But, between a is become CIO and even that distribution it point, turned and deals. number the telecom, In

George Iwanyc

And All a right. question Thank Yaron, maybe you for just then you. for that.

expansion stability that early perspective? part and you of guidance the expansion saw from assumptions net your rate visibility have type of are in this you do an the the what With into quarter, year next what in

Yaron Garmazi

AYes.

next to the It's X As to reacceleration, Too based Ron the on terms we QX, beginning going the the go not of we when year. with gave last and going before, again. forecasted trend going beginning trend say And solid continue the into myself revenue early we declining in from very year. to a is the to deals the that not us year that already see in we that the reaccelerate scenario into what's almost do the next which quarters. it's be of to is revenue re-bump too closed way see in when guidance, mentioned the definitely QX, going to of see start QX, of it's and in to trend of back by but back declining to getting early we

We quarter be next get close able the And year. visibility see, hopefully, to numbers better to better in of deliver into have to terms bookings. we'll the to going

Ron Yekutiel

comment a about per NDR question. me Let add

could, be around it QX general quarter, started situation the forecast the earlier this still dramatic year expect is the mentioned the with But for XXX% I year, will next extra retention gross so the lower, aligned at hopefully to numbers posted us, This NDR we're what nothing and direction before year we we made still that gradually throughout we not by to to year, year XXX% given to the but be for earlier, it for which the starting to the it's again. than we bit year. retentions of we are year said in there's quarters, given couple last what kind is a XXX% expected and be. the said and which a where going bit be they dip. we It for going in plus just it about gross It's to dip lower turn for of back dip

Operator

Bank. And Matthew Deutsche Niknam the next from comes with question

Matthew Niknam

for me. one Just

change any macro quarter? to the you may bookings On weighing in backdrop, some Whether factor the trends? addition been if what And that on of last competitive retention over seeing in Thanks. you're the can a just there? be or that's gross talk about there's dynamics

Ron Yekutiel

The a opposed It's as less. money we're answer because even them large, higher bit said have reductions than that's weighing, our is I more full-on using so And gross that not good it's us. not are that less earlier, player earlier, the most price years. most losing than It's of departures. just any when higher from that's are not down. and in come and deals ever a retention statement significant rates have and the to they said our pressuring win than number, and we're high accounts And very for reduction, they year no. competitors a as seeing coming It's to and/or question. it Thanks Yes. last a have before, to and by are from I taking because lower not

what we're yet to that use product, of That expansion back big one a a from as before. takeaways competitor, I more. that On do and taken as around a and No, to just able all. to big able the year we've is of particular services gates from expect pearly that is as we're do other to financial to many to few weren't far competitor takeaway the the for from being have ago, weren't we do customers an we're Because able we seeing entering a big that This any not contrary, now to adds That's earlier out win another takeaway. us. the there This webinar/external/marketing at industry mentioned up able competitors, we case. our that more the we're just We're all. business be the of seeing pressures a of seeing are bit competitors general to causing slower. compared again, everybody

Operator

I you. like the floor would any Yekutiel session. comments. Thank the closing for this Ron concludes And to to question-and-answer turn

Ron Yekutiel

lot a all situation headwinds. macro we you I hugs discussions from have there. on again, and in forward Israel. doing are company your and a also of global that those Yes, here to the and thank to questions I'd for also perspective, But the big send Kalturans all say commented and want are we And for a are well. working the heartbroken there's plowing that our about industry

the committed by we've the numbers I on at beginning large, to that the year. we're think delivering and of

positive And us funnel top seeing direction. trends said, that achieved positive. earlier, lot the the of taking have than flow EBITDA of we are adjusted earlier right We and cash a are in

QX your have and I some of year thank direction next support, news hopeful we week. want you hasn't reminder continued to for to think care. good come. bookings great for to what's and forward place again changed looking Bye-bye. for general Take the around We're I have us. for a the

Operator

attending today's now Thank has you. conference concluded. Thank for presentation. The you

your You disconnect may now lines.

Kaltura (KLTR) 8 Nov 232023 Q3 Earnings call transcript