Kaltura, Inc.

Good morning, everyone, and welcome to the Kaltura's third 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.

Thank you, and good morning. With me today from Kaltura are Ron Yekutiel, Co-founder, Chairman, and Chief Executive Officer, and Yaron Gamazi, Chief Financial Officer. Ron will begin with a summary of the results for the third quarter ended September 30, 2022, and the trends and areas of focus that are expected to impact the remainder of 2022. Yaron will then review in greater detail the financial results for the third quarter, followed by the company's outlook for the fourth quarter and full year of 2022. We will then open the call for questions. Please note that this call will include forward-looking statements within the meaning of the federal securities laws, including but not limited to statements regarding Kaltura's expected future financial results and management's expectations and plans for the business. These statements are neither promises nor guarantees and involve risks and uncertainties that may cause actual results to differ materially from those discussed here. Important factors that could cause actual results to differ from forward-looking statements can be found in the risk factors section of Caltura's annual report on Form 10-K for the fiscal year ended December 31, 2021 and other periodic SEC filings, including the quarterly report on Form 10-Q for the quarterly period ended September 30, 2022 to be filed with the SEC. Any forward-looking statements made in this conference call, including responses to your questions, are based on current expectations as of today. and Kaltura assumes no obligation to update or revise them, whether as a result of new developments or otherwise, except as required by law. Please note, we will be discussing a non-GAAP financial measure, adjusted EBITDA during this call. For a reconciliation of this non-GAAP financial measure to the most directly comparable GAAP metric, please refer to our earnings release, which is available on our website at www.investors.kaltura.com. Now I'd like to turn the call over to Ron.

Thank you, Erica, and thanks to everyone for joining us on the call this morning. Today we reported total revenue for the third quarter of 2022 of $41.1 million, down 4% year-over-year, and subscription revenue of $37.9 million, up 1% year-over-year. Adjusted EBITDA for the quarter was negative $7.2 million. In our last earning call, we made three important financial forecasts. An expected return to revenue growth in Q4, fueling a higher year-over-year growth rate than 2023, expected gradual quarterly improvements in adjusted EBITDA towards a single-digit loss next year, and an expected significant improvement in cash flow with a forecasted single-digit aggregate cash flow from operations loss in the second half of this year. Today, we are reaffirming all of these three forecasts. Regarding revenue growth, after a tough year that saw an initial quarterly decline in subscription and total revenues, followed by close to flat revenues, we are forecasting for Q4 a sequential revenue growth rate at a level that we have not seen since the first half of last year. Regarding profitability, While the effects of our recent cost reduction have only partially affected this quarter, we have already seen a reversal of the trend of our bottom line with an adjusted EBITDA loss that is lower than that of the last three quarters. The improvement in profitability is expected to continue in the coming quarters as we continue to execute on our plan to return to profitable growth. And regarding cash flow, we had a positive cash flow from operations quarters. We expect that our aggregate cash flow from operations in the second half of this year would be a single-digit loss as previously forecasted. We remain committed to rebalancing the company's cash flow as we have done in 2019 and 2020 without requiring additional funding. In the third quarter, we close new business across all of our segments, empowering employee and partner communication and training, customer engagement, internal and external facing events, Student Learning, and TV Viewership. Companies are continuing to move their work streams online and value KOTOR's ability to cost-effectively provide them with a single, flexible, tightly integrated, and engaging enterprise-grade platform that can holistically power integrated, on-demand, live, and real-time video experiences across multiple use cases. Today's challenging economic climate highlights the importance and advantages of Cultura Solutions, since customers seek more than before to reduce budgets and consolidate vendors. Among this quarter's new deals were several seven-digit transactions with a South American media company, with an Asian bank that is a new Cultura customer, and with a leading U.S. bank that is expanding the use cases for which it is utilizing Cultura. Both banks have signed up now to use Kultura to power their events. We're seeing growing demand for our events offering across many industries beyond technology companies, which were the initial buyers, including, as mentioned, financial services, as well as consulting services, pharma, manufacturing, and education. Well, on the topic of events, I would like to remind you that on November 15th and 16th, we shall be conducting our second annual virtually live event or event professionals, marketing leaders and digital experience creators will exchange thoughts on the state of future and future of online and hybrid events. Those interested are invested to join us and the already thousands of registrants to listen to our incredible lineup of speakers, which include leaders from Accenture, Lenovo, AWS, SAP, Salesforce, Oracle, Adobe, Microsoft, Google, Cisco, IBM, Airbnb, VMware, and many, many more. On the product development front, the biggest news this quarter was the anticipated launch of the new version of our webinars offering. Our new release includes the ability to launch many sites for each webinar with unique branding, as well as advanced engagement options coupled with rich analytics. The new version also includes advanced recording options, as well as automatic publishing for webinar recording. Our new webinar solution is available for self-serve or self-assisted purchase through our website with packages available both for personal and team licenses. We also continued advancing our comprehensive event offering with a user-friendly orchestration and management layer to easily set up and manage branded events. Enterprises can leverage our platform to centrally manage large numbers of virtual and hybrid events for marketing, Corporate Communications, Learning and Development, Recruitment, and more. During the quarter, we invested in simplifying event management, advancing our integration with third-party systems like Marketo, more user-friendly experiences for SMDs, and more advanced analytics. We also added richer functionality for the management of on-demand assets within events. While we have a more robust and diverse product offering in the second half of this year, In summary, While the macro conditions continue to be challenging and have contributed to a delay in our return to growth, we are continuing to make progress in improving our bottom line in cash flow and are still expecting a return to revenue growth in Q4. We continue to believe that the growing need for advanced video solutions, coupled with our robust and expanding differentiated product offering, will bring us back to profitable growth. With that, I'll turn it over to Yaron, our CFO, to discuss our financial results in more detail.