Kaltura, Inc.

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, Erica.

Thank you, operator, and good morning. I am joined by Ron Yucatel, Kaltura's co-founder, chairman, president, and chief executive officer, and John Doherty, chief financial officer. Ron will begin with a summary of the results for the fourth quarter ended December 31, 2024, and the company's plans and expected trends for 2025. John will then review details of the financial results for the fourth quarter and full year 2024, followed by the company's outlook for the first quarter and full year of 2025. We will then open the call for questions. Please note that this call will include four 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 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 materially from forward-looking statements can be found in the risk factors section of Kaltura's quarterly report on Form 10-Q for the quarterly period ended September 30, 2024 and other SEC filings including the annual report on Form 10-K for the fiscal year ended December 31, 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, we will be discussing non-GAAP financial measures, adjusted EBITDA, and adjusted EBITDA margin during this call. For a reconciliation of adjusted EBITDA to the most directly comparable GAAP metric, please refer to our earnings release, which is available on our website at www.investors.caltora.com. Now I'd like to turn the call over to Ron.

Thank you, Erica, and thanks everyone for joining us on the call this morning. Today we reported record total revenue of $45.6 million for the fourth quarter, up 3% year-over-year, and record subscription revenue for the quarter of $43.4 million, up 6% year-over-year. We also achieved record ARR for the third consecutive quarter, as well as record RPO for the second consecutive quarter. In short, all top line related KPIs were at record high levels. As for our bottom line, in the fourth quarter adjusted EBITDA was 2.7 million, representing our sixth consecutive quarter of adjusted EBITDA profitability and the highest quarterly results over the past four years. This was fueled in part by a record gross margin Cash flow from operations was 4.3 million. For the year, we reported subscription revenue, total revenue, adjusted EBITDA, and cash flow from operations, all above the guidance and forecast we provided. We are pleased with the progress we have made towards our goal to return to profitable growth, including accelerating year-over-year growth rates in the second half of 2024. We have delivered on our goal of returning to adjusted EBITDA in cash flow from operations profitability in 2024, posting year-over-year improvements in these metrics of $9.8 million and $20.5 million, respectively. We're looking forward to expanding these profitability metrics in 2025 and beyond. Moving on to the business update. New subscription bookings in the fourth quarter were at the highest level since the fourth quarter of 2022. Over the last three quarters, this metric has been growing, as we expected, both sequentially and at increasing year-over-year rates. In the fourth quarter, it included four seven-digit deals and 29 six-digit deals, the highest combined number of six- and seven-digit deals since the third quarter of 2022. The portion of new subscription bookings that came from new customers also grew both sequentially and year-over-year in the fourth quarter. including a seven-digit deal with a leading global healthcare insurance company who licensed all of our enterprise products to power their digital campus training and certification programs, and a seven-digit deal with a European government entity that will be providing our suite of education products to over 35 universities. Most of our new subscription bookings came again from upselling to our existing customers, where we provided licenses for increased usage, additional users, additional solutions, and additional use cases. Upsells included a seven-digit upsell deal with a major U.S. bank, a seven-digit European telco deal, and several six-digit deals with leading organizations across a wide array of industries including technology, banking, pharma, healthcare, education, government, automotive, media, and telecom. Customers that we can name that have closed new deals with us this quarter include Adobe, Lstream, Red Hat, Burlitt, and Connecticut State Colleges and Universities. Growing user adoption, usage, and consolidating around Kultura to power multiple products and use cases contributed in the fourth quarter to the continued growth of our average subscription revenue per customer, which reached, once again, a record high level. As we wrapped up 2024, we're encouraged not just from our recent booking momentum, but also by the size and nature of our sales pipeline, which grew throughout the past year. we believe will support continued year-over-year new bookings growth in 2025. In addition to growth in new bookings, growth retention in the fourth quarter continued to improve year-over-year, enabling us to obtain our best full-year growth retention rate of the past four years. The combination of increased new subscription bookings and improved growth retention rate in the fourth quarter has yielded, for the first time since 2021, a third consecutive quarter with a year-over-year increase in net new subscription bookings, which have been helping us fuel our year-over-year subscription revenue growth. Mid-dollar retention in the fourth quarter continued to improve from our increased gross retention and upsell bookings, reaching 103% in the fourth quarter and closing the year at 100%. Moving on to the product front, let's begin with our growing investment in AI. Katera's AI-infused video experience strategy is centered on integrating AI across every stage of the video life cycle. including content creation, discovery, distribution, engagement, and analytics to deliver fully personalized data-driven experiences. In the fourth quarter, we launched beta releases of two new AI-infused offerings, Class Genie and Work Genie. Both offerings are designed to support individualized learning journeys for teachers and students in the education sector, as well as for trainers and trainees in the enterprise sector. Recognizing that one-size-fits-all rarely addresses diverse learning needs, Katora's G-Needs tailor content to each individual. They create hyper-personalized content experiences, from video snippets, interactive flashcards and quizzes, to podcasts, video modules, learning paths, and knowledge chests, by drawing exclusively on relevant institutional data, helping to precisely meet each learner's unique requirements. Our AI beta program for evaluating our working class genies saw strong interest from dozens of large organizations, including top universities, global Fortune 500 companies, and leading tech firms who are interested in evaluating these products for both employee and customer experience use cases. We also continued boosting our AI-infused content lab, which helps organizations repurpose content at scale. New and enhanced features include automated clip creation, automated quizzes, chapters, and summaries. Content Lab is now integrated into our VCMS platform and video portal and is serving through them also our virtual events and webinars, virtual classroom, LMS and CMS extensions, TV CMS platform, and TV streaming apps, enabling enhanced automation, interactivity, and AI-powered content recommendation. Regarding our TV content management system and TV streaming apps, We enhanced our AI capabilities to further drive content discovery, engagement, and monetization. Our AI-powered recommendation engine now delivers more personalized user experiences, while AI-based chaptering and metadata tagging improve content accessibility and searchability. We also introduced AI-powered dubbing and subtitling, which enable global reach and reduce translation costs for media providers. In the third quarter, at the International Broadcasting Convention in Amsterdam, our AI-driven advancements received strong industry validation, which subsequently led to starting POCs in the fourth quarter with three global media and telecom companies, and we're in discussions to potentially onboard an additional five. Latour's AI innovations received additional industry recognition with our new Gen AI features for broadcast, streaming, and media, earning us a place in the Feed Magazine 2024 honors list in the special recognition in AI category. Additionally, as you may have read in the press release we sent out in December, we published a new industry report called The Marketing Power of Video-Based Experiences in AI in 2025, serving 600 senior marketing professionals from companies with over 1,000 employees across the U.S. and Europe. The report confirms the growing impact of video-based experiences and the search for AI tools to augment them. Beyond AI. One of our main product investment areas continues to be our virtual events and webinars product, which offers fresh ways to engage large audiences and manage events and digital marketing programs at scale with minimal effort. We launched a green room virtual studio for backstage preparation and a new bulk invite management tool to streamline the handling of participants and added new types of polls and quizzes to enhance interactivity during live sessions. With our video portal, which is used by more than 70% of our ENT customers, we remain focused on helping our customers manage and engage with content at scale. We implemented additional channel moderation tools to give administrators better oversight of user-generated content. We also introduced new chat and collaboration features for real-time interaction right within the portal, promoting deeper engagement and teamwork. We're also continuing to reinforce our position as a leading enterprise video content management platform by integrating more deeply with modern workplace technologies. We enhance our Microsoft team integrations, allowing seamless automated uploads of Teams recordings into Kultura VCMS alongside existing integrations such as Zoom and WebEx Cisco. As we look ahead to the market in 2025 and beyond, we see a strengthening market for enterprise video driven by digital and AI transformations. We anticipate it will be fueled by continued easing of budgetary constraints an increasingly hybrid global workplace, reduced corporate travel costs and growing sustainability requirements, and the rising influence of millennials and Gen Z professionals, a workforce that is video native and AI savvy. In the media and telecom segment, we see demand for Cloud TV, OTT streaming, and AI-powered automation accelerating as providers modernize infrastructure and enhance monetization. Across all industries, we expect companies to accelerate their move away from fragmented, non-integrated point solutions in favor of unified platforms which offer deep workflow integration and seamless cross-enterprise functionality. In addition to anticipated improvements in market conditions, we believe there are five main growth engines that will fuel Kaltura's continued regrowth. We believe our unified cross-enterprise platform is the ideal alternative to multiple siloed video point solutions. From the outset, our differentiated approach has been to treat video as a data type, not just an application. Consequently, we built a flexible API-first platform that runs both deep and wide, tightly integrated into business workflows and supporting use cases that run the gamut from employee communication and training to marketing, customer success, and entertainment. One platform that does it all, effectively, and affordably. Second, our newer products have reached maturity and are increasingly contributing to the continued regrowth of our ARR per customer and market share. Over the past few years, we have successfully developed key offerings, including virtual events and webinars, virtual classrooms, and our front end TV streaming apps. These solutions are now in their prime, enabling us to not only further expand the scope and value of our enterprise offerings, but also further the unique positioning of Kaltura's Video Experience Cloud as an ideal platform to centrally cater to all enterprise video needs and use cases. Third, the introduction of Gen AI capabilities into our platform is unlocking groundbreaking opportunities to change how video experiences are created, delivered, and consumed. We're uniquely positioned to lead this transformation, leveraging our deep business workflow integrations our highly engaging and interactive employee and customer experiences, and the vast amount of video content, metadata, and analytics we manage for some of the world's largest organizations. In 2025 and beyond, we plan to continue expanding our AI-infused capabilities, including agentic AI-powered tools, further amplifying the employee and customer engagement flywheels, and driving stronger retention and monetization. Fourth, our loyal, high-value customer base represents a significant expansion opportunity. Kaltura serves some of the world's largest and most influential enterprises, including 24% of the top 50 financial institutions, 27% of the Fortune 100 companies, 30% of the top 50 technology companies, over 50% of the U.S. R1 schools, and leading telecom and media providers, mainly across EMEA and APAC. We believe that there is a significant opportunity for us to capture a larger share of our current customer spend primarily through selling more broadly to them across current product categories. Our internal analysis suggests that the full potential expenditure of these customers represent three times what they're spending with us now. As mentioned before, we believe these customers will consolidate their vendors and given our offering superiority and the great relationships that we already have in place, we believe we're ideally positioned to benefit from this vendor consolidation. Fifth, growing our sales force and ramping up our efforts to win new customers across all our industries. As we enter 2025, we are again starting to gradually grow our sales team to cater to the growing market demand. And as we do so, we plan to gradually redirect them towards securing new customers. We enter 2025 with a robust product offering, a clear strategic direction, and a validated go-to-market thesis. With market conditions improving, enterprise spending recovering, and new opportunities arising, we believe we are poised to capture the increasing demand for video experiences. We believe that the improved market conditions and our five aforementioned growth engines, customer consolidation around our platform, maturity of our newer products, exciting new Gen AI capabilities, growth potential within our great customer base, and regrowing our sales force will yield continued year-over-year growth in our new bookings, as already recently demonstrated and supported by our growing pipeline. Lastly, supporting our guidance. We believe we have the right products and market positioning to enable a gradual and sustained acceleration of revenue growth. Being mindful of the market volatility in recent years, however, we are continuing to be thoughtful with our revenue guidance, and have set it to represent similar year-over-year growth levels in 2025 as in 2024. We also expect our growth margin to continue to improve in 2025 and therefore believe we will achieve in 2025, once again, a year-over-year growth profit growth that is higher than our revenue growth. As for our bottom line, we are working to further expand our profitability alongside our growth acceleration and are guiding towards doubling our adjusted EBITDA profit margin in 2025. We're also keenly focused on continuing to grow our cash flow from operations to a similar level as our adjusted EBITDA. The majority of our operational cash flow is expected to be generated in the second half of the year, consistent with historical seasonality. A final word about our longer-term goals. Our goal is to double our adjusted EBITDA in 2026 and by 2028 or before to return to being a rule of 30 company through a combination of an expected double-digit revenue growth rate and adjusted EBITDA margin. We have achieved this goal before, and we believe we can and will get back there again. With that, I'll turn it over to John, our CFO, to discuss our financial results and plans for 2025 and beyond in much more detail. John.