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KLTR Nasdaq· Kaltura Inc.
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KLTR Nasdaq· Kaltura Inc.
Earnings report Q4 2023

KLTR Reports Modest Revenue Growth in Latest Quarter

Segments of revenue

KLTR's reportable segment revenue for the year ended December 31, 2023, showed a slight increase compared to the previous year. The Enterprise, Education & Technology segment generated $125.15 million in revenue, up from $120.19 million in 2022 and $118.93 million in 2021. The Media & Telecom segment also experienced growth, with revenue reaching $50.02 million in 2023, compared to $48.62 million in 2022 and $46.08 million in 2021. Overall, the company's total revenue for the year amounted to $175.17 million, up from $168.81 million in 2022 and $165.02 million in 2021.

Strengths

KLTR follows a "land and expand" strategy, aiming to increase customer usage and drive additional purchases over time. The company's Net Dollar Retention Rate for 2023 and 2022 was an impressive 100%, indicating strong customer loyalty and expansion within existing accounts. Additionally, KLTR achieved a 3% growth in Annualized Recurring Revenue in the three months ended December 31, 2023, compared to the same period in 2022. This growth demonstrates the company's ability to generate recurring revenue and maintain customer satisfaction.

Challenges

KLTR faced challenges in revenue growth in the latest quarter. The company experienced a decrease in revenue growth starting from the fourth quarter of 2021, which can be attributed to the post-COVID return to offices and university campuses. The economic slowdown, financial market instability, inflation, interest rate increases, and geopolitical unrest further impacted revenue growth. These factors affected demand for video services, particularly in the enterprise and education sectors, leading to a slowdown in year-on-year revenue growth.

Noteworthy

KLTR witnessed increased demand for its video services during the COVID-19 pandemic, resulting in accelerated revenue growth in 2020 and most of 2021. However, the return to offices and campuses, coupled with economic factors, led to a decline in revenue growth in the latest quarter. It is worth noting that KLTR's revenue is geographically diversified, with the United States accounting for the majority of revenue, followed by Europe, the Middle East, and Africa (EMEA).

Summary

KLTR reported modest revenue growth in the latest quarter, driven by the Enterprise, Education & Technology and Media & Telecom segments. The company's "land and expand" strategy, along with a high Net Dollar Retention Rate and growth in Annualized Recurring Revenue, highlights its ability to retain and expand customer relationships. However, challenges arising from the post-COVID return to offices and campuses, as well as economic factors, impacted revenue growth. KLTR's revenue is geographically diversified, with the United States and EMEA being the primary revenue contributors.

Source documents

Form 10-K  filed on Feb 22, 2024
11 pages scanned

Reference data

Company financials Q4 revenue 44.5M
Analyst estimates Q4 EPS beat by 28.59%
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