Kaltura (KLTR) Q4 2023 earnings summary

Executive summary

• Record Q4 revenue of $44.5M marked a fifth consecutive quarter of YoY growth; subscription revenue rose 3% YoY, and Adjusted EBITDA was positive for a second consecutive quarter.

• FY2023 revenue increased 4% and subscription revenue 7% YoY; results exceeded original revenue and Adjusted EBITDA guidance.

Financial highlights

• Q4 revenue was $44.5M, up 1% YoY; subscription revenue was $40.8M, up 3%.

• FY2023 revenue was $175.2M, up 4% YoY; subscription revenue was $162.8M, up 7%, while professional services revenue declined to $12.4M from $16.3M.

• Q4 GAAP operating loss was $8.8M vs. $11.4M; GAAP net loss was $12.1M, or $0.09/share, vs. $14.8M, or $0.11/share.

• FY2023 GAAP operating loss was $38.7M vs. $56.4M; GAAP net loss was $46.4M, or $0.34/share, vs. $68.5M, or $0.53/share.

• Adjusted EBITDA was $0.8M in Q4 vs. negative $4.2M; FY2023 Adjusted EBITDA was negative $2.5M vs. negative $28.3M.

Outlook and guidance

• Q1 2024 subscription revenue expected at $39.9M-$40.6M and total revenue at $42.7M-$43.5M, each ranging from -1% to 1% YoY; Adjusted EBITDA guidance is -$0.5M to $0.3M.

• FY2024 subscription revenue expected at $161.2M-$164.2M and total revenue at $173.7M-$176.7M, each ranging from -1% to 1% YoY; Adjusted EBITDA guidance is $0M-$1M.

• Guidance reflects current macroeconomic expectations; forecast Adjusted EBITDA was not reconciled to GAAP net loss because some adjustments could not be calculated without unreasonable effort.