Kaltura, Inc.

Good morning, everyone, and welcome to Kaltura's first quarter 2024 earnings conference call. At this time, all participants are on a listen-only mode. If you require any assistance during the conference, please press star zero on your telephone keypad. All material contained in this 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. Thank you. Please go ahead.

Thank you, operator, and good morning. I'm joined by Ron Uchtel, Kaltura's co-founder, chairman, president, and chief executive officer, and John Doherty, chief financial officer. Ron will begin with a summary of results for the first quarter ended March 31, 2024, and provide a business update. John will then review the financial results for the first quarter of 2024 in greater detail, followed by the company's outlook for the second 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 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 Kaltura's annual report on Form 10-K for the fiscal year ended December 31, 2023 and other SEC filings, including the quarterly report on Form 10-Q for the quarter ended March 31, 2024 to be filed with the SEC. Any forward-looking statements made during this conference call, including responses to 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 our website at www.investors.kaltura.com. Now I'm pleased to hand the call over to Ron.

Thank you, Erica, and welcome everyone to our first quarter earnings call. The first quarter of 2024 marked our sixth consecutive quarter of year over year growth. We reported record total revenue of $44.8 million, up 3% year over year, and record subscription revenue of $41.2 million, up 2% year over year. Adjusted EBITDA for the quarter was positive 0.6 million. As for our bottom line, the first quarter was our third consecutive quarter of adjusted EBITDA profitability. We consumed cash from operations during the first quarter as expected due to our typical seasonality, which came in at 1.1 million, an improvement from 7.4 million in quarter one 2023. Moving on to the business update. Gross retention in the first quarter of 2024 continued to improve for the third quarter in a row and was the highest level in five quarters. This represents an annualized rate that is better than that of the last three fiscal years. We continue to forecast a better retention level this year compared to last. We believe this is driven by the passage of most post-COVID video usage reductions and of the budgetary constraints of the subsequent global economic downturn. As for new bookings, the first quarter was, as usual, a slower quarter, and this year even more so as we had a few large deals slip into the second quarter. In the first quarter, we closed one seven-digit deal with a large Fortune 100 insurance company and 12 six-digit deals. Consistent with one of our key focus areas, we continue to see growth in the number and size of the opportunities for our event platform for both internal and external use. We also continue to see existing customers expand their adoption of Cote d'Ivoire from their original mostly internal use cases for employee communication and learning and development to also external use cases for marketing and customer engagement. In addition, while the market remains competitive, we have been increasingly successful at raising our prices upon contract renewal. From a geographic perspective, while our bookings from outside of the U.S. continue to be negatively impacted from the macro environment, We are seeing initial signs of recovery with multiple new large E&T and M&T deals in the sales pipeline that are coming from EMEA and APAC. On the product front, in the first quarter, we continued boosting our event platform with enhanced content management capabilities, lead management features, and on-site registration for hybrid events. We enhanced our video portal's search results, filters, and user experience. and added to our video player ad block detection and hotspots for similar live entries. The real-time conferencing rooms within our event platform and virtual classrooms now also enable interludes and have more granular roles and permissions, improved dual screen layouts, and globally shared storyboards. On the M&T front, we continue to beef up scalability and security and analytics for both end users and quality of service, as well as to simplify the experience of content curation. Our strong and growing product portfolio yielded us several recognitions and awards in the passing quarter. These included G2's 2024 Best Software Awards in the categories of Best Design Software as a Virtual Event Platform and Best Education Software, as well as the Best Virtual Event Platform in North America Award of the 2024 Innovation and Business Smart Tech Awards. On the AI front, we were continuing to infuse AI features and capabilities into our products. We completed a successful pilot with a leading tech company to repurpose video content and create snippets and snackable moments from videos. The feedback has been superb, and the ROI measured was very significant, with savings of $1,000 to $1,500 and three to five hours in turnaround time per clip. We're ramping up investment in content repurposing with the goal of further integrating it into our content management, webinars, and event workflows. are expanding our AI add-on for webinars and events with capabilities to automatically generate notifications and sentiment analysis for chat, and are developing our own AI-powered automatic speech recognition solution with a goal of providing improved results and extended features. In summary, we wrapped up another record revenue quarter that showed continued improvement in our gross retention rate. While the year started, as usual, with slower new bookings, Our current pipeline indicates an expected improvement in the coming quarters, and we believe we will encounter more tailwinds as companies start re-accelerating investments in digital transformation and online experiences. We expect that this will be fueled by the increasingly hybrid workplace, growth in Gen Z and millennial video savvy employees, the need to save costs by consolidating multiple enterprise video use cases around a single video platform, and the advent of Gen AI, which will bring about more creation and consumption of videos and increased ROI. Despite our revenue guidance on performance in the first quarter, considering the lower booking start and the still uncertain macro outlook, we need to be thoughtful and are therefore maintaining revenue guidance for 2024. Lastly, regardless of our top line growth, we're reaffirming our expectation of posting both a positive adjusted EBITDA and positive cash flow from operations this year. With that, I'll turn it over to John, our CFO, to discuss our financial results in more detail. John.