Kaltura, Inc.

Good morning everyone and welcome to the Kaltura second quarter 2024 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. I'm joined by Ron Yucatel, Kaltura's co-founder, chairman, president and chief executive officer and John Dougherty, Chief Financial Officer. Ron will begin with a summary of results for the second quarter ended June 30, 2024, and provide a business update. John will then review the financial results for the second quarter of 2024 in greater detail, followed by the company's outlook for the third 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 June 30, 2024 to be filed with the SEC. Any forward-looking statements made during 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, during this call, we will be discussing a non-GAAP financial measure, adjusted EBITDA. 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 second quarter earnings call. Total revenue for the second quarter of 2024 was $44.0 million, up marginally year over year, while subscription revenue was $41.0 million, up 1% year over year. Of note, in the second quarter, we posted a company record ARR of $165.2 million. As for our bottom line, we posted in the second quarter adjusted EBITDA of 1.6 million, representing our fourth consecutive quarter of adjusted EBITDA profitability and the highest results since the third quarter of 2020. Cash used in operations decreased to 1.6 million, an improvement from 4.1 million in the second quarter of 2023. Taken together, our results for the second quarter lead us to increase our revenue in adjusted EBITDA guidance for the full year and to once again reaffirm our plan to post positive cash flow from operations for the full year. Moving on to the business update. As expected, we saw renewed growth in new subscription bookings in the second quarter, which were at the highest level since the fourth quarter of 2022. In addition, the portion of new bookings from new enterprise education and technology customers was at its highest level since the second quarter of 2023. Our bookings from new customers and upsells included 23 six-digit deals spanning a diverse array of industries, use cases, and geographies. Customers include a large European government institute and a global pharmaceuticals leader, both new to Cultura, one of the largest banks in the world, a leading healthcare software company, two of the world's largest tech companies, a large US R1 university, in two large telecom companies. Use cases ran the gamut from customer marketing and engagement, employee and channel communication and reskilling, student learning and engagement, and entertainment. Growth retention in the second quarter of 2024 remained at a similar level compared with the first quarter, which again was better than all quarterly results of 2023. This continues to represent an annualized growth retention rate that is higher than the previous three calendar years. The combination of both higher growth subscription bookings and increasing growth retention rates has yielded the highest level of net new subscription bookings in the last six quarters, helping to fuel future subscription revenue. On the product front, in the second quarter, we continued boosting our event platform functionality and user experience. with an improved FMV flow between sessions and admin group targeting, enhanced chat options, and a more robust analytics dashboard. In addition, we enriched our video portal content management and guest landing pages, added new features for admin sessions in our real-time conferencing rooms, and continued advancing our video player and the scalability and security of our platforms. Related to AI, this quarter we added a number of product enhancements. We launched our internally developed AI-based automatic speech recognition service, based on Whisper, as an improved alternative to the non-AI-based third-party ASR services we previously provided. With the help of AI, captions are automatically generated within videos, regardless of the language spoken, enhancing accessibility and user experience. For our events and webinars products, We developed an AI-based email notification engine that automatically generates notifications for users based on ongoing session information, ensuring SMDs stay informed without manual intervention. We also developed a real-time AI-based sentiment analysis of user chat communications for event organizers and presenters. For our video portal, we added an AI-based quiz generator based on the transcript. And for our video conferencing rooms, we launched an AI-based noise cancellation feature for improved audio. Our product leadership continued to yield industry awards as well this quarter. Amongst them are the 2024 Innovation in Business MarTech Awards for Best Virtual Events Platform, the 2024 Event Technology Award for Best Virtual and Hybrid Event Platform, and four 2024 EventX Awards for best event technology, best audience engagement technology, best data collection and event analytics technology, and best virtual events platform. In the passing quarter, we also conducted our annual VIP events in New York, San Francisco, and London. Hundreds of customers and prospects attended Kaltura Connect on the Road 2024 and discussed how AI-infused video experiences could boost their business results. We had an amazing speaker lineup of marketing and corporate communications leaders from customers such as Adobe, Salesforce, Novartis, IBM, Mayo Clinic, Bloomberg, Siemens Health and Years, AstraZeneca, and Red Hat. During the event, we gave out Coture Digital Engagement Awards to companies that have demonstrated creative and exceptional use of our platform and have expanded the possibilities of digital experiences in the enterprise. Recipients across nine different categories included ABN AMRO, Adobe, Audible, an Amazon company, Bank of America, Bloomberg, Citi, IBM, Intuit, Netflix, Salesforce, and Siemens Salsoniers. Lastly, I want to mention a couple of recent executive changes in Kultura. Renan Goodman, our Chief Product Officer, and Lisa Bennett, our Chief Marketing Officer, are moving on after 10 and 17 years at Kaltura respectively. We are appreciative of Renan's and Lisa's great contribution to Kaltura and wish them well in their new endeavors. Navya Zarya, who joined Kaltura three and a half years ago as general manager of our enterprise education and technology business and later held the role of chief revenue officer, exceeds Renan as our chief product officer and will also oversee marketing. Before joining Kaltura, Navi was the CEO of a data analytics company servicing enterprises and communications providers. Navi's prior experience included other leadership roles overseeing product and engineering. He also holds a degree in computer engineering. Liyad Ishkar, who has been with Kaltura for over 10 years, has assumed the role of Chief Revenue Officer. Liyad's most recent role was that of Chief Business Development Officer Prior to that, Liad led all our sales, customers, and partners in the technology sector, including the biggest and most complex enterprise education and technology sales cycles and customers, which also contributed the most to our growth. Liad holds an MBA from Columbia Business School, an MA in business law, and a degree in engineering. In summary, as expected, in the second quarter, we saw sequential improvement in our new bookings and continue to yield a gross retention materially above quarterly results from last year. In light of that, and following our revenue and adjusted EBITDA outperformance in both the first and second quarters of the year, we are incrementally raising our revenue and adjusted EBITDA guidance for the year. We continue to believe there are stronger tailwinds ahead as companies reaccelerate their investments in digital transformation and online experiences. Fueling these initiatives are factors such as increasingly hybrid workplace, growth in Gen Z and millennial video savvy employees, cost savings 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 increase ROI. We believe these trends will continue to grow our new bookings, accelerate our revenue growth, and increase our profits. With that, I'll turn it over to John, our CFO, to discuss our financial results in more detail. John.