Kaltura (KLTR) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $44.0M, flat year-over-year, with subscription revenue at $41.0M, up 1% year-over-year.

• Record ARR of $165.2M, highest new bookings since Q4 2022, and fourth consecutive quarter of positive adjusted EBITDA at $1.6M.

• Net loss narrowed to $10.0M ($0.07/share), improved from $10.8M in Q2 2023.

• Gross margin remained stable at 65%; operating expenses decreased 2% year-over-year.

• Launched $5M stock repurchase program, repurchasing 66,605 shares in Q2 2024.

Financial highlights

• Q2 2024 revenue: $44.0M; subscription revenue: $41.0M (up 1% YoY); professional services revenue: $3.0M (down 4% YoY).

• ARR reached $165.2M, up 1% year-over-year; Net Dollar Retention Rate was 98%, down from 100% in Q2 2023.

• GAAP gross profit was $28.7M (65% margin); adjusted EBITDA was $1.6M, up from -$1.0M in Q2 2023.

• GAAP net loss was $10.0M; cash and cash equivalents at June 30, 2024, were $34.3M.

• Operating loss improved to $8.6M from $9.6M in Q2 2023.

Outlook and guidance

• Q3 2024 subscription revenue expected between $40.5M and $41.2M; total revenue between $42.6M and $43.3M.

• Q3 adjusted EBITDA forecasted between -$0.3M and $0.7M.

• Full-year 2024 subscription revenue guidance raised to $163.2M–$165.2M; total revenue to $174.7M–$176.7M.

• Full-year adjusted EBITDA expected between $2M and $3M, with positive cash flow from operations forecasted.

• Liquidity deemed sufficient for at least the next 12 months, supported by cash and credit facility.