Kaltura, Inc.

Good morning, everyone, and welcome to the Kaltura second quarter 2026 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'm joined by Ron Yekutiel, Kaltura's co-founder, chairman, president, and chief executive officer, and LaRon Sharon, executive vice president of FP&A and interim principal financial officer. LaRon will begin with a summary of the results for the second quarter ended June 30, 2026 and provide a business update. LaRon will then review the financial results for the second quarter of 2026 in greater detail. followed by the company's outlook for the third quarter and full year, 2026. 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, management's expectations and plans for the business, including execution on strategic transition and upcoming product launches, integration and expected benefits of our recent acquisitions, our deal pipeline, trends in customer engagement, anticipated tailwinds, and our expectations around capabilities and benefits of our products, including AI technologies. 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 Caltura's annual report on Form 10-K for the fiscal year ended December 31, 2025 and other SEC filings, including the quarterly report on Form 10-Q for the quarter ended June 30, 2026 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 Caltura 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, adjusted EBITDA margin, and non-GAAP gross margin during this call. For a reconciliation of these measures to the most directly comparable gap metric, please refer to our earnings release, which is available on our website at investors.caltura.com. Now I'd like to turn the call over to Ron.

Thank you, Erica, and thank you, everyone, for joining us today. We continued our strong execution in the second quarter, exceeding the high end of our guidance for both revenue and adjusted EBITDA. Total revenue was $46.9 million, up 5% year-over-year, Subscription revenue was $45.6 million, up 8% year-over-year. Adjusted EBITDA was $5.9 million, up 44% year-over-year, and representing our highest second quarter result to date. We also delivered a record non-GAAP gross margin of 75%. New subscription bookings grew sequentially and included 13 six-digit total contract value deals. Five of these were with new logos across the financial services, healthcare, and education industries. Beyond the strong financial results, the most important development during the quarter was the meaningful increase in the number of new deals that included our AI products. Given this transition is still just beginning, we want to provide more detail than we normally would about where we see adoption, which products customers are selecting, and the business problems they're beginning to address. During the second quarter, we signed a record 14 new deals that included one or more of our AI offerings, representing a doubling of our previous record. Nine of these 14 deals included our new agentic avatars product. Four had six-digit total contract values, and eight were with new logos. The deals reflect a broad range of industries and use cases. Four were with higher education institutions, ethnic companies, and publishers, that collectively engaged tens of thousands of students. These customers intend to use our products to deliver richer and more personalized teaching and learning experiences. Three were with real estate companies, including two subsidiaries of an organization with a network of hundreds of thousands of agents. One deal focused on personalized agent onboarding and training, while the other two focused on online property discovery, customer engagement, and lead qualification. Two were with technology companies, including a Fortune 10 company. One customer plans to use our technology for AI-enabled employee onboarding and training. The other plans to deploy a personalized customer concierge across its website and virtual events. Two were with global consulting and business process outsourcing leaders. Both are Fortune 500 companies with hundreds of thousands of employees. One is using our products for employee onboarding, learning, and development. and the other for personalized customer marketing. Two were with financial services companies that each manage trillions of dollars in assets. One plans to use our products for personalized employee knowledge sharing and internal communications, while the other plans to use our products for interactive marketing and demand engagement. Finally, one was with media and telecommunications customer that intends to use our products for conversational advertising and point of sale experiences in large venues. All combined, these deals span six industries in a broad mix of employee, learner, customer, and audience-facing use cases, providing early evidence that adoption is not limited to one vertical buyer or workflow. From a revenue perspective, as expected, the contribution from these 14 deals remains limited. The combined total contract value is approximately $1 million. We view these deals as initial footholds that may expand over time to additional users, usage, business units, and use cases. Consistent with the outlook we shared last quarter, we continue to expect initial revenue contributions from our new products in the second half of 2026, followed by a more meaningful ramp in 2027. I would now like to provide more details about our growing pipeline across all products, the increasing role that AI products are playing within it, and why we remain confident in the opportunity ahead. Our current pipeline for new subscription bookings in the second half indicates the potential to book more than two and a half times what we booked during the first half of the year. This expected growth is being driven by both our enterprise education and technology business and our media and telecom business. Looking at our sales pipeline of deals that also include one or more AI products for the second half of 2026 and 2027, We currently have more than 500 opportunities at various stages of engagement. These opportunities currently represent in total approximately 17 million of total non-weighted potential annual contract value, ACV. It is important to put that figure in context. This is a non-weighted pipeline number which includes the full value of all deals across pipeline stages. While not all of these opportunities will convert to wins, It's worth noting that most of our AI products were launched very recently. Our go-to-market motion is still developing, and many of these engagements remain in early stage of discovery and could grow, and additional opportunities are expected to emerge. We therefore view the current pipeline as an encouraging initial indicator rather than as a mature representation of the longer-term opportunity. Let me provide more details about the composition of the current AI-related pipeline. About a third of the number of these opportunities and of the potential ACV comes from new logos. By industry, more than one third of potential ACV comes from educational institutions, ed tech companies, and publishers. About 25% comes from media and telecommunications companies. Approximately 40% comes from enterprises across a range of industries led by technology, financial services, healthcare and life sciences, Professional Services, and Consulting and Government. By product, the pipeline includes over 200 opportunities involving our agentic avatars and close to 100 involving our avatar video production studio. It also includes over 60 proofs of concept that are either already active or currently being scoped. We see similarly broad patterns when we examine the pipeline by use case. About one-third of potential ACVs associated with personalized employee journeys. These include employee onboarding, learning and development, compliance, sales enablement, knowledge sharing, internal communications, practice, role-playing simulation. Another roughly one-third is associated with personalized learner journeys delivered by universities, ed-tech companies, and publishers. Approximately one-sixth relates to customer and partner journeys. These include onboarding, education and activation, marketing and demand engagement, digital sales rooms, customer care and support. The remaining approximately one-sixth relates to audience journeys delivered by media and telecommunications companies, including interactive experiences for television viewers and audiences in physical venues. Together, these patterns suggest that the opportunities developing across multiple industries and repeatable use cases with agentic avatars emerging as an important entry point into the broader Filtura platform. Turning to retention, we also delivered strong performance during the second quarter. The quarter represented our best growth retention results since the fourth quarter of 2022. We may experience some near-term pressure from certain legacy contracts, including an anticipated roll-off of certain PathFactory customers. However, Over time, we expect the transition towards powering agentic digital experiences to support sustainable growth retention and gradually improve net dollar retention. As discussed previously, NDR will lag the improvement in growth retention. Let me now turn to product development. Using the three-layer framework we outlined previously, I will highlight the progress we made during the quarter across content creation, content management and intelligence, and Interactive Conversational Experiences. On the content creation front, we enhanced our avatar production workflows with B-roll and URL to video automation, expanded their multilingual capabilities, introduced richer enterprise templates and automated content pipelines, and continued investing in API-first capabilities. These enhancements are designed to allow customers and partners to embed AI-powered content generation directly into their own applications and workflows and to transform presentations, documents, websites, knowledge bases, and existing media into engaging avatar-led video experiences significantly faster than through traditional production methods. We also continued investing in enterprise governance, enabling large organizations to maintain brand consistency, approval processes, permissions, security and compliance, while scaling AI-generated content. On content management and intelligence, We made significant progress integrating the Kultura and Pathfactory platforms. Content and workflows can now be synchronized across the two platforms, bringing together video, documents, webinars, learning content, events, knowledge bases, and customer engagement data. This creates a unified first-party signal layer that can help organizations understand which content performs best, which assets contribute to business outcomes, what users are seeking, and what should be recommended next. This content intelligence foundation is becoming a core building block for the AI capabilities and solutions we develop. On interactive experiences, we continued embedding conversational AI across our product portfolio. This enables users to move beyond manually searching large content libraries and instead interact with intelligent agents that can understand intent, answer questions, recommend and present relevant information, coach users, and guide them towards successful outcomes. A platform also continued to receive significant industry recognition during the quarter. Latura was named a leader in both the Q2 26 Forrester Wave for virtual events management platforms and in the 26 Aragon Research Globe for enterprise video. We were also recognized by ISG Research as an exemplary provider among emerging conversational AI providers and received the Best Event AI Technology Award at the EventX Awards. Gartner also recognized Kultura in both its video platform services and meeting solutions market guides, and we were included in the 26th WealthTech 100th list, honoring the world's most innovative tech companies for wealth management. Our annual Enterprise Connect and Education Connect events also attracted record attendance and featured business and technology leaders from organizations including Morgan Stanley, Cisco, AWS, IBM, and Palo Alto Networks. Looking ahead to the second half of the year, we have an ambitious development roadmap. On the avatar front, we plan to expand beyond facial representation to incorporate richer gestures and emotional expression. We also intend to improve our personalization and context capabilities and develop real-time generative user interface experiences. Instead of presenting users with static, identical, and primarily text-based experiences, these capabilities are intended to enable rich, personalized, and intent-based content journeys that are continuously generated and curated by multimodal conversational agents. We now have the core building blocks of our agentic digital experience platform in place. A major focus for the second half of the year is packaging these capabilities into two comprehensive solutions centered on large and strategic use cases, agentic revenue engagement, and agentic learning and enablement. Building on the revenue engagement suite we discussed last quarter, we package and showcase the first integrated version of our agentic revenue engagement solution at the recent Adobe Summit, the Forrester B2B Summit, and Salesforce Connection. It combines video and rich media experiences, content intelligence, and conversational AI within an intelligent buyer engagement platform. The solution is intended to help organizations understand customer buying intent, create personalized buyer journeys, recommend the next best content, automate follow-up, support digital sales rooms, and introduce conversational AI throughout the customer lifecycle. We believe this positions Kaltura at the intersection of several important enterprise software categories, including content intelligence, digital sales enablement, account-based marketing, customer engagement, and AI-powered revenue technology. Our differentiation is our ability to combine rich engagement, journey orchestration, and real-time intent-based conversational experiences and enterprise-grade infrastructure within one platform. The adjacent categories addressed by this solution collectively represent an estimated market opportunity of more than $20 billion and are growing with more than 15% annually. These categories include conversational automation, where PathFactory is already recognized as a leader by Forrester, as well as marketing automation add-ons, revenue enablement and personalization. In our previous earnings call, we discussed training and learning use cases for employees, customers and partners and students separately. We're now bringing these capabilities together within a single adjunctic learning and enablement solution, spanning employee skilling and reskilling, customer and partner enablement and certification, and teaching and learning within educational institutions. Traditional learning systems primarily deliver predetermined and relatively static courses. We see the future of learning becoming increasingly adaptive, conversational, and personalized. Our agentic learning and enablement solution combines AI-generated learning content, enterprise knowledge, conversational avatars, AI tutors, coaching simulations, skills development, assessments, and personalized learning journeys, all of it together. Rather than delivering the same experience to every user, organizations can dynamically create experiences based on each individual's roles, skills, progress, objectives, and business context. We believe this represents a significant evolution beyond traditional learning management systems. Learning management systems, learning experience platforms, revenue enablement, and customer education are increasingly converging around a common enablement layer. Collectively, these categories also represent an estimated market opportunity of more than $20 billion. Historically, they've often had separate budgets buyers and technology providers. AI is reducing some of those traditional boundaries because the underlying requirements are becoming increasingly similar. A shared content foundation, an intelligence layer, personalization, conversational interaction, and rich media delivery. We believe platforms that can support multiple learning and enablement use cases through a common content and intelligence layer to be increasingly advantaged. To summarize, we delivered a strong second quarter. Thank you for joining us today. and while not all these opportunities will materialize, expect many opportunities to grow and many others to be added. The revenue contribution remains limited at this stage, but the growth in bookings, proofs of concept, and pipeline support our confidence in stronger second half momentum and a more meaningful contribution in 2027. We enter the second half of the year with a stronger pipeline, a clearer solution focus, and increased confidence as reflected in our updated guidance. With that, I will turn the call over to Liron. Liron.