Kaltura, Inc.

Good morning, everyone, and welcome to the Kaltura First Quarter 2025 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, Erica.

Thank you, Operator, and good morning. I am joined by Ron Yucatillo, 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 first quarter ended March 31, 2025, and provide a business update. John will then review the financial results for the first quarter of 2025 in greater detail, followed by the company's outlook for the second quarter and full year 2025. 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 cause actual results to differ materially 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, 2024 and other SEC filings. 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 non-GAAP financial measures, adjusted EBITDA, adjusted EBITDA margin, and adjusted gross margin. For reconciliation of these measures to the most directly comparable GAAP metric, please refer to our earnings release, which is available on our website at www.investors.caltura.com. I will now turn the call over to Ron.

Thank you, Erica, and thanks to everyone for joining us on the call this morning. Today we reported record total revenue of 47 million for the first quarter of 2025, up 5% year-over-year, which included record subscription revenue for the quarter of 44.9 million, up 9% year-over-year. It was our third consecutive quarter of increasing year-over-year revenue growth. We also posted record ARR for the fourth consecutive quarter, up 7% year-over-year, and grew our RPO 12% year-over-year. As for our bottom line, in the first quarter, adjusted EBITDA reached a record level of $4.1 million, representing our seventh consecutive quarter of adjusted EBITDA profitability. We also posted record positive non-GAAP earnings per share. This was fueled in part by a strong non-GAAP gross margin of 70%, up from 65% in the same quarter last year. We consumed $1 million in cash for operations during the quarter, similar to what we had consumed in the first quarter of last year. While cash flow was a little lower than expected, it is aligned with our typical seasonality and does not change our cash flow forecast for the full year. Moving on to the business updates. New subscription bookings in the first quarter were seasonally low compared to other quarters, as usual and expected. Similar to the first quarter of last year, it included one seven-digit deal and 15 six-digit deals, though the portion of new subscription bookings from new customers grew year over year, as did the average selling price for new customers. New logos in the passing quarter included Stripe, a leading financial services company, Novo Nordisk, a leading multinational pharmaceutical company, a leading global medical device company, and a large U.S. private university. Most of our new subscription bookings came, again, from upselling to existing customers, including a global leading cloud provider, a CRM market leader, a large Asian bank, a leading healthcare software company, and several media and telecom companies. Companies continued to consolidate their video usage around Kaltura during the quarter. And accordingly, our average ARR per customer continued to grow to another record high. On the growth retention front, we mentioned in our last earnings call that we anticipated a lower rate of retention in the first half of the year due to delayed media and telecom churns from last year. And this is occurring as expected. That said, our growth retention rate in E&T was at its best level since the fourth quarter of 2022, and we continue to forecast an annual ENT rate in 2025 that is better than that of the previous four years. We were pleased that net dollar retention in the first quarter continued its climb to 107%, its highest level since the first quarter of 2022. Moving on to the product front, let's begin with our continued and growing investment in AI, to deliver hyper-personalized data-driven experiences. In the first quarter, we enhanced our new Genie agents to empower organizations running multiple Genie instances to cater to different audiences, departments, and use cases. Imagine, for example, a marketing Genie agent that provides marketing teams customer insights, customer stories, and marketing tips. And in the same company, also a separate Academy Genie agent that provides employee micro-learning and testing around company training materials and policies. In addition, Genie now supports self-service experiences with simple login mechanisms and enables ingestion of additional video sources beyond Couture, like YouTube. On the M&T front, Couture's TV Genie recently won the Product of the Year Award for streaming at the 2025 NAB show. Underscoring the disruption that our innovative Genie product is introducing to the market. During the quarter, we also released two more agents within our Content Lab family of offerings for content creators. A highlights video generator agent, which automatically creates highlights out of every video, stitching together multiple AI-generated clips into a single video. And the content enrichment agent, which automatically generates titles, descriptions, and tags for the content, driving discoverability and searchability to reach a broader audience with greater relevancy. Our AI beta program for evaluating both our genies and content lab offerings for customer and employee experiences has already sparked the interest of more than 150 customers to date, which constitutes roughly 20% of our customer base. These customers span across all of our target industries, including technology companies, regulated industries like banking, insurance, healthcare, and pharma, education institutions, and media and telecom companies. While it's early, 20 of these customers spanning from U.S. headquartered enterprises such as Accenture and York Life to global universities such as Nanyang Technology University and NGN Polytechnic, which we can name, have progressed in their POCs beyond legal and onboarding to generate Gen AI test queries and video transformation. These tests show that 85% of the video content that is recommended to users by Genie has not been previously seen by them, demonstrating how Genie surfaces value from underutilized content to optimize hyper-personalized journeys. We think this represents a significant upsell opportunity for us and expect to start closing deals in the coming quarters. As for our recently released GenAI Power Transcription Engine, it has already been successfully deployed with over 200 customers, providing improved results at lower operational costs, which helps increase our gross margin. We plan to soon expand from DOD captioning in English and image-to-text OCR to supporting additional languages into live captioning. Lastly, we continue to expand our collaboration with third-party Gen AI vendors, for example, with Synthesia, a developer of hyper-realistic AI avatars with which we enable our customers to create avatar-based experiences based on Koterra's video content and within Koterra experiences. Beyond AI, on the virtual events and webinars fund during the first quarter, We bolstered our mobile experience with full support for chat and collaboration, polls and quizzes. We also enhanced the way we track viewership, engagement, and completion of training paths to offer more granular certifications, released RSVP and tags to allow for larger multi-session events to be easier to manage, and expanded our events API to allow for better integration and control. Also in the last quarter, our video portal received a new modern design with easier content discovery and navigation. These and many more improvements continue to earn us top recognition by leading analyst firms, including Gartner, which recently recognized Cothra again as a representative vendor in their market guides for both meeting solutions and video platform services. Moving on beyond products. In the passing quarter, we hosted our first annual investor event. It was held in our New York office, and remote attendants joined using Cultura's event platform. It was a great opportunity to provide additional color on our profitable growth plans and goal of achieving both double-digit revenue growth and a rule of 30, which combines year-over-year revenue growth and adjusted EBITDA margin by 2028 or before. The highlight of the day was showcasing our great products and sharing our exciting AI-infused vision and roadmaps. as well as hearing live customer testimonials. AWS shared how they use Kaltura, among other things, to enable thousands of partners monthly across six languages. Accenture shared how every month they have millions of plays on Kaltura and 3,500 new videos uploaded, powering training, enablement, and internal marketing. Boston University mentioned how Kaltura enables them to provide a flipped classroom experience to students in over 100 countries. Vodafone explained how Kaltura acts as the centerpiece of Vodafone TV, which reaches today over 3 million households across nine markets. And Buick Telecom shared how at the end of their current migration process, they will provide TV services with Kaltura to more than 4 million households. A video recording of the event and our presentation deck are available at the investor section of our website. We also provided through the website access to KOTURA Genie instance, where you could run AI-based KOTURA queries on this recording and additional content provided. And while on the topic of KOTURA events, I want to remind you all that our KOTURA Connect On The Road 2025 events are taking place later this month in New York, San Francisco, and London. We'll discuss how AI-powered personalization, intelligent archives, agentic intelligence, and data-rich video are reshaping customer and employee experiences and hear from amazing speakers from leading enterprises such as Salesforce, JPMorgan Chase, Vanguard, Adobe, AWS, Visa, Bloomberg, Pinterest, Zendesk, Accenture, AstraZeneca, and more. These events are followed by six Connected Education events that will take place across the US and in Europe, as well as virtually for APAC organizations. Information for all these events is available on our website. We invite you to join. In summary, we wrapped up a record revenue and adjusted EBITDA quarter. While the year started as usual with slower new bookings compared to other quarters, our current pipeline indicates an expected improvement in the coming quarters, and we continue to forecast a year-over-year regrowth in new bookings for the full year fueled by customer consolidation around our platform, maturity of our newer products, exciting new Gen AI capabilities, growth potential within our great customer base, and a gradual regrowth in our sales force. We also continue to fork out a bounce back in gross retention in the second half of the year, following the expected decline in the first half of the year, as mentioned earlier and in the previous earnings call. Despite our revenue guidance outperformance in the first quarter, we're mindful of the typical slower booking start for the year and the still uncertain macro outlook and are therefore maintaining our previously provided revenue guidance for 2025. We are, however, slightly increasing our adjusted EBITDA guidance for the year and restating our goal of posting positive cash flow from operations for the year at a similar level as our forecasted adjusted EBITDA with most, if not all, contribution expected to come in the second half of the year consistent with historical seasonality. With that, I'll turn it over to John, our CFO, to discuss our financial results in much more detail. John.