Kaltura, Inc.

Good morning, everyone, and welcome to Kaltura fourth quarter and full year 2023 earnings call. All material contained in the webcast is the sole property 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 Yukatil, co-founder, chairman, and chief executive officer of Yaron Gamazi, Chief Financial Officer, and John Doherty, Kaltura's incoming CFO. Ron will begin with a summary of the results for the fourth quarter ended December 31, 2023, and the company's plans and expected trends for 2024. Yaron will then review details of the financial results for the fourth quarter and full year of 2023, followed by the company's outlook for the first quarter and full year of 2024. 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 Keltor'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 Caltor's quarterly report on Form 10-Q for the quarterly period ended September 30, 2023, and other SEC filings, including the annual report on Form 10-K for the fiscal year ended December 31, 2023, 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 reconciliation of this non-GAAP financial measure to the most directly comparable GAAP metric, please refer to our earnings release which is available on the company's website at www.investors.caltora.com. Now, I will turn the call over to Ron.

Thank you, Erica, and thank you, everyone, for joining us on the call this morning. Today, we reported total revenue for the fourth quarter of 2023 of $44.5 million, up 1% year-over-year, and subscription revenue of $40.8 million, up 3% year-over-year. Adjusted EBITDA for the quarter was $0.8 million. We posted record-high total revenues in the fourth quarter, which also marked the fifth consecutive quarter of year-over-year growth. The quarter wrapped up a year where, as we had previously forecasted, we saw increased subscription revenue and growth rate. And despite declining professional services revenues, as expected, total revenue growth rates also increased. As for our bottom line, The fourth quarter was also a second consecutive quarter of adjusted EBITDA profitability and a positive cash flow from operations, both for the first time since 2020. It was also our highest adjusted EBITDA results since the fourth quarter of 2020. This concluded the year with marked bottom line improvements year over year, where we posted $2.5 million of adjusted EBITDA losses compared to $28.3 million in the past year and reduced our cash flow used for operations by $38.5 million