Kaltura, Inc. (“Kaltura” or the “Company”), the video experience
cloud, today announced financial results for the fourth quarter and
full year ended December 31, 2022, as well as outlook for first
quarter and full year 2023.
"In the fourth quarter, we returned to growth and recognized
record subscription and total revenues while reiterating our
commitment to continued improvements in Adjusted EBITDA and
Cash-Flow-From-Operations to achieve break even in 2024," said Ron
Yekutiel, Co-founder, Chairman and Chief Executive Officer of
Kaltura. "Though we continue to be impacted by the macroeconomic
headwinds, we believe we are well positioned to navigate the
challenging financial climate given the breadth of our platform and
our ability to enable our customers to save costs and reduce
complexities by consolidating their fragmented video needs with our
single, flexible, tightly integrated and engaging enterprise-grade
platform."
Fourth Quarter
2022 Financial Highlights:
- Revenue for the fourth quarter of 2022
was $44.1 million, an increase of 3% compared to $42.7 million for
the fourth quarter of 2021.
- Subscription revenue for the fourth quarter of
2022 was $39.6 million, an increase of 3%
compared to $38.5 million for the fourth quarter of 2021.
- Annualized Recurring Revenue (ARR)
was $159.2 million, an increase of 6%
compared to $150.8 million in 2021.
- GAAP Gross profit for
the fourth quarter of 2022 was $27.6 million, representing a gross
margin of 63% compared to a GAAP gross profit of $26.8 million and
gross margin of 63% for the fourth quarter of 2021.
- Non-GAAP Gross
profit for the fourth quarter of 2022 was $28.0
million, representing a non-GAAP gross margin of 64%, compared to a
non-GAAP gross profit of $27.1 million and non-GAAP gross margin of
63% for the fourth quarter of 2021.
- GAAP Operating loss was
$11.4 million for the fourth quarter of 2022, compared to an
operating loss of $12.4 million for the fourth quarter of
2021.
- Non-GAAP Operating
loss was $4.9 million for the fourth quarter of 2022,
compared to a non-GAAP operating loss of $8.1 million for the
fourth quarter of 2021.
- GAAP Net loss was $14.8 million or $0.11
per diluted share for the fourth quarter of 2022, compared to a
GAAP net loss of $15.9 million, or $0.12 per diluted share, for the
fourth quarter of 2021.
- Non-GAAP Net loss was $8.3 million or
$0.06 per diluted share for the fourth quarter of 2022, compared to
a non-GAAP net loss of $11.6 million, or $0.09 per diluted share,
for the fourth quarter of 2021.
- Adjusted EBITDA was $(4.2) million for
the fourth quarter of 2022, compared to adjusted EBITDA of $(7.7)
million for the fourth quarter of 2021.
- Net cash used in operating activities was $5.8
million for the fourth quarter of 2022, compared to $10.7 million
in the fourth quarter of 2021.
Full Year 2022
Financial Highlights:
- Revenue for the full year of 2022 was
$168.8 million, an increase of 2% compared to $165.0 million for
the full year of 2021.
- Subscription revenue for the full year of
2022 was $152.5 million, an increase of 5%
compared to $145.0 million for the full year of 2021.
- GAAP Gross profit for
the full year of 2022 was $106.9 million, representing a gross
margin of 63% compared to a GAAP gross profit of $102.7 million and
gross margin of 62% for the full year of 2021.
- Non-GAAP Gross
profit for the full year of 2022 was $108.7 million,
representing a gross margin of 64% compared to a non-GAAP gross
profit of $104.1 million and gross margin of 63% for the full year
of 2021.
- GAAP Operating loss was
$56.4 million for the full year of 2022, compared to an operating
loss of $32.7 million for the full year of 2021.
- Non-GAAP Operating
loss was $30.3 million for the full year of 2022,
compared to $13.6 million for the full year of 2021.
- GAAP Net loss was $68.5 million or $0.53
per diluted share for the full year of 2022, compared to a GAAP net
loss of $59.4 million, or $0.95 per diluted share, for the full
year of 2021.
- Non-GAAP Net loss was $42.4 million or
$0.33 per diluted share for the full year of 2022, compared to a
non-GAAP net loss of $25.3 million, or $0.22 per diluted share, for
the full year of 2021.
- Adjusted EBITDA was $(28.3) million for
the full year of 2022, compared to Adjusted EBITDA of $(12.2)
million for the full year of 2021.
- Net cash used in operating activities was
$46.8 million for the full year of 2022, compared to $22.1 million
for the full year of 2021.
Recent Business Highlights:
- Closed an upsell deal with a large telecom customer and
completed projects with two additional large telecom
companies.
- Closed several six-digit deals with Enterprise products and
Education solutions and continued to grow the sales pipeline.
- Continued expanding our Events offering from its early adopter
base in tech and financial services to include clients in pharma,
healthcare, manufacturing, market research and education.
- Hosted our second annual Virtually Live! by Kaltura event with
over 5,000 registrants.
- Released new features for our Events and Webinar products,
updated our Player and Player Studio and introduced a new
integration with Webex.
- Executed in January 2023 a cost-cutting plan that downsized 11%
of our workforce.
- Added in January 2023 Mr. Eyal Manor to our board of directors.
Manor, the Chief Product & Engineering Officer at Twilio, was
previously a Vice President & General Manager at Google Cloud
and VP of Engineering at YouTube, and is an expert in enterprise
cloud software, video solutions, and product-led-growth.
Financial Outlook:
For the first quarter of 2023, Kaltura expects:
- Subscription Revenue to grow by 5%-7%
year-over-year to between $38.9 million and $39.6 million.
- Total Revenue to grow by 1.5%-3.5%
year-over-year to between $42.3 million and $43.2 million.
- Adjusted EBITDA to be negative in the range of
$3 million to $4 million.
For the full year ending December 31, 2023, Kaltura
expects:
- Subscription Revenue to grow by 4%-6%
year-over-year to between $158.6 million and $161.7 million.
- Total Revenue to grow by 0%-2% year-over-year
to between $168.8 million and $172.2 million.
- Adjusted EBITDA to be negative in the
range of $5 million to $8 million
The guidance provided above contains forward-looking statements
and actual results may differ materially. Refer to “Forward-Looking
Statements” below for information on the factors that could cause
our actual results to differ materially from these forward-looking
statements. Kaltura has not provided a quantitative reconciliation
of forecasted Adjusted EBITDA to forecasted GAAP net loss within
this press release because the Company is unable, without making
unreasonable efforts, to calculate certain reconciling items with
confidence. The reconciliation for Adjusted EBITDA includes but is
not limited to the following items: stock-based compensation
expenses, depreciation, amortization, financial expenses (income),
net, provision for income tax, and other non-recurring operating
expenses. These items, which could materially affect the
computation of forward-looking GAAP net loss, are inherently
uncertain and depend on various factors, some of which are outside
of the Company’s control. The guidance above is based on the
Company's current expectations relating to COVID-19 and its
variants and the macro-economic climate trends.
Additional information on Kaltura’s reported results, including
a reconciliation of the non-GAAP financial measures to their most
comparable GAAP measures, is included in the financial tables
below.
Conference Call
Kaltura will host a conference call today on February 22,
2023 to review its fourth quarter and full year 2022 financial
results and to discuss its financial outlook.
|
Time: |
8:00 a.m. ET |
|
United States/Canada Toll
Free: |
1-877-407-0789 |
|
International Toll: |
1-201-689-8562 |
|
Conference ID: |
13735996 |
|
|
|
A live webcast will also be available in the
Investor Relations section of Kaltura’s website at:
https://investors.kaltura.com/news-and-events/events
A replay of the webcast will be available in the
Investor Relations section of the company’s web site approximately
two hours after the conclusion of the call and remain available for
approximately 30 calendar days.
About Kaltura
Kaltura’s mission is to power any video
experience for any organization. Our Video Experience Cloud offers
live, real-time, and on-demand video products for enterprises of
all industries, as well as specialized industry solutions,
currently for educational institutions and for media and telecom
companies. Underlying our products and solutions is a broad set of
Media Services that are also used by other cloud platforms and
companies to power video experiences and workflows for their own
products. Kaltura’s Video Experience Cloud is used by leading
brands reaching millions of users, at home, at school and at work,
for communication, collaboration, training, marketing, sales,
customer care, teaching, learning, virtual events, and
entertainment experiences.
Investor Contacts:KalturaYaron GarmaziChief
Financial OfficerIR@Kaltura.com
Sapphire Investor RelationsErica Mannion and Michael Funari+1
617 542 6180IR@Kaltura.com
Media Contacts:KalturaLisa
Bennettpr.team@kaltura.com
Headline MediaRaanan Loewraanan@headline.media+1 347 897
9276
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. All statements contained in this press release
that do not relate to matters of historical fact should be
considered forward-looking statements, including but not limited
to, statements regarding our future financial and operating
performance, including our guidance; our business strategy, plans
and objectives for future operations and our expectations regarding
potential profitability and the timing thereof; the expected effect
of new releases on our business and financial performance; and
general business conditions, including as a result of the pandemic
related to COVID-19 and its variants and the worsening economic
climate, and their impact on our business and financial
results.
In some cases, you can identify forward-looking
statements by terminology such as “aim,” “anticipate,” “assume,”
“believe,” “contemplate,” “continue,” “could,” “due,” “estimate,”
“expect,” “goal,” “intend,” “may,” “objective,” “plan,” “predict,”
“potential,” “positioned,” “seek,” “should,” “target,” “will,”
“would” and other similar expressions that are predictions of or
indicate future events and future trends, or the negative of these
terms or other comparable terminology, although not all
forward-looking statements contain these words. Any forward-looking
statements contained herein are based on our historical performance
and our current plans, estimates and expectations and are not a
representation that such plans, estimates, or expectations will be
achieved. These forward-looking statements represent our
expectations as of the date of this press release. Subsequent
events may cause these expectations to change, and we disclaim any
obligation to update the forward-looking statements in the future,
except as required by law. These forward-looking statements are
subject to known and unknown risks and uncertainties that may cause
actual results to differ materially from our current expectations.
Important factors that could cause actual results to differ
materially from those anticipated in our forward-looking statements
include, but are not limited to, our ability to successfully
execute or achieve the expected benefits of our restructuring plan
and other cost saving measures, our ability to manage and sustain
our rapid growth; our ability to achieve and maintain
profitability; the evolution of the markets for our offerings; the
quarterly fluctuation in our results of operations; our ability to
retain our customers; our ability to keep pace with technological
and competitive developments; our ability to maintain the
interoperability of our offerings across devices, operating systems
and third-party applications; our reliance on third parties; our
ability to retain our key personnel; risks related to our
international operations; our ability to successfully execute or
achieve the benefits of our cost-reduction and re-organization plan
and other cost saving measures; and the other risks under the
caption “Risk Factors” in our Quarterly Report on Form 10-Q for the
quarterly period ended September 30, 2022, filed with the
Securities and Exchange Commission (“SEC”), as such factors may be
updated from time to time in our other filings with the SEC, which
are accessible on the SEC’s website at www.sec.gov and the Investor
Relations page of our website at investors.kaltura.com.
Non-GAAP Financial Measures
Kaltura has provided in this press release and
the accompanying tables measures of financial information that have
not been prepared in accordance with generally accepted accounting
principles in the U.S. ("GAAP"), including non-GAAP gross profit,
non-GAAP gross margin (calculated as a percentage of revenue),
non-GAAP research and development expenses, non-GAAP sales and
marketing expenses, non-GAAP general and administrative expenses,
non-GAAP operating loss, non-GAAP operating margin (calculated as a
percentage of revenue), non-GAAP net loss, non-GAAP net loss per
share and Adjusted EBITDA. Kaltura defines these non-GAAP
financial measures as the respective corresponding GAAP measure,
adjusted for, as applicable: (1) preferred stock accretion and
cumulative undeclared dividends; (2) stock-based compensation; (3)
the amortization of acquired intangibles; (4) other non-recurring
operating expenses; (5) remeasurement of warrants to fair value;
(6) facility exit and transition costs; (7) restructuring charges;
and (8) gain on sale of property and equipment. Kaltura defines
EBITDA as net profit (loss) before financial expenses, net,
provision for income taxes, and depreciation and amortization
expenses. Adjusted EBITDA is defined as EBITDA (as defined above),
adjusted for the impact of certain non-cash and other non-recurring
items that we believe are not indicative of our core operating
performance, such as non-cash stock-based compensation expenses and
other non-recurring operating expenses. We believe these non-GAAP
financial measures provide useful information to management and
investors regarding certain financial and business trends relating
to Kaltura’s financial condition and results of operations. These
non-GAAP metrics are a supplemental measure of our performance, are
not defined by or presented in accordance with GAAP, and should not
be considered in isolation or as an alternative to net profit
(loss) or any other performance measure prepared in accordance with
GAAP. Non-GAAP financial measures are presented because we believe
that they provide useful supplemental information to investors and
analysts regarding our operating performance and are frequently
used by these parties in evaluating companies in our industry. By
presenting these non-GAAP financial measures, we provide a basis
for comparison of our business operations between periods by
excluding items that we do not believe are indicative of our core
operating performance. We believe that investors’ understanding of
our performance is enhanced by including these non-GAAP financial
measures as a reasonable basis for comparing our ongoing results of
operations. Additionally, our management uses these non-GAAP
financial measures as supplemental measures of our performance
because they assist us in comparing the operating performance of
our business on a consistent basis between periods, as described
above. Although we use the non-GAAP financial measures described
above, such measures have significant limitations as analytical
tools and only supplement but do not replace, our financial
statements in accordance with GAAP. See the tables below regarding
reconciliations of these non-GAAP financial measures to the most
directly comparable GAAP measures.
Key Financial and Operating
Metrics
Annualized Recurring Revenue. We use Annualized
Recurring Revenue (“ARR”) as a measure of our revenue trend and an
indicator of our future revenue opportunity from existing recurring
customer contracts. We calculate ARR by annualizing our recurring
revenue for the most recently completed fiscal quarter. Recurring
revenues are generated from SaaS and PaaS subscriptions, as well as
term licenses for software installed on the customer's premises
(“On-Prem”). For the SaaS and PaaS components, we calculate ARR by
annualizing the actual recurring revenue recognized for the latest
fiscal quarter. For the On-Prem component for which revenue
recognition is not ratable across the license term, we calculate
ARR for each contract by dividing the total contract value
(excluding professional services) as of the last day of the
specified period by the number of days in the contract term and
then multiplying by 365. Recurring revenue excludes revenue from
one-time professional services and setup fees. ARR is not adjusted
for the impact of any known or projected future customer
cancellations, upgrades or downgrades or price increases or
decreases. The amount of actual revenue that we recognize over any
12-month period is likely to differ from ARR at the beginning of
that period, sometimes significantly. This may occur due to new
bookings, cancellations, upgrades or downgrades, pending renewals,
foreign exchange rate fluctuations, professional services revenue
and acquisitions or divestitures. ARR should be viewed
independently of revenue as it is an operating metric and is not
intended to be a replacement or forecast of revenue. Our
calculation of ARR may differ from similarly titled metrics
presented by other companies.
Net Dollar Retention Rate. Our Net Dollar
Retention Rate, which we use to measure our success in retaining
and growing recurring revenue from our existing customers, compares
our recognized recurring revenue from a set of customers across
comparable periods. We calculate our Net Dollar Retention Rate for
a given period as the recognized recurring revenue from the latest
reported fiscal quarter from the set of customers whose revenue
existed in the reported fiscal quarter from the prior year (the
numerator), divided by recognized recurring revenue from such
customers for the same fiscal quarter in the prior year
(denominator). For annual periods, we report Net Dollar Retention
Rate as the arithmetic average of the Net Dollar Retention Rate for
all fiscal quarters included in the period. We consider
subdivisions of the same legal entity (for example, divisions of a
parent company or separate campuses that are part of the same state
university system) to be a single customer for purposes of
calculating our Net Dollar Retention Rate. Our calculation of Net
Dollar Retention Rate for any fiscal period includes the positive
recognized recurring revenue impacts of selling new services to
existing customers and the negative recognized recurring revenue
impacts of contraction and attrition among this set of customers.
Our Net Dollar Retention Rate may fluctuate as a result of a number
of factors, including the growing level of our revenue base, the
level of penetration within our customer base, expansion of
products and features, and our ability to retain our customers. Our
calculation of Net Dollar Retention Rate may differ from similarly
titled metrics presented by other companies.
Remaining Performance Obligations. Remaining
Performance Obligations represents the amount of contracted future
revenue that has not yet been delivered, including both
subscription and professional services revenues. Remaining
Performance Obligations consists of both deferred revenue and
contracted non-cancelable amounts that will be invoiced and
recognized in future periods. We expect to recognize 60% of our
Remaining Performance Obligations as revenue over the next 12
months, and the remainder thereafter, in each case, in accordance
with our revenue recognition policy; however, we cannot guarantee
that any portion of our Remaining Performance Obligations will be
recognized as revenue within the timeframe we expect or at all.
Consolidated Balance Sheets (U.S. dollars in thousands;
Unaudited)
|
|
December 31, |
|
|
|
2022 |
|
|
|
2021 |
|
ASSETS |
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
Cash and cash equivalents |
|
$ |
44,625 |
|
|
$ |
143,949 |
|
Marketable securities |
|
|
41,343 |
|
|
|
— |
|
Trade receivables |
|
|
28,786 |
|
|
|
17,509 |
|
Prepaid expenses and other current assets |
|
|
7,521 |
|
|
|
5,110 |
|
Deferred contract acquisition and fulfillment costs, current |
|
|
10,759 |
|
|
|
9,079 |
|
|
|
|
|
|
Total
current assets |
|
|
133,034 |
|
|
|
175,647 |
|
|
|
|
|
|
LONG-TERM ASSETS: |
|
|
|
|
Property and equipment, net |
|
|
15,142 |
|
|
|
9,503 |
|
Other assets, noncurrent |
|
|
3,176 |
|
|
|
2,543 |
|
Deferred contract acquisition and fulfillment costs,
noncurrent |
|
|
21,691 |
|
|
|
22,621 |
|
Operating lease right-of-use assets |
|
|
20,814 |
|
|
|
— |
|
Intangible assets, net |
|
|
1,244 |
|
|
|
1,909 |
|
Goodwill |
|
|
11,070 |
|
|
|
11,070 |
|
|
|
|
|
|
Total
noncurrent assets |
|
|
73,137 |
|
|
|
47,646 |
|
|
|
|
|
|
TOTAL ASSETS |
|
$ |
206,171 |
|
|
$ |
223,293 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
Current portion of long-term loans |
|
|
5,793 |
|
|
|
2,794 |
|
Trade payables |
|
|
9,437 |
|
|
|
6,480 |
|
Employees and payroll accruals |
|
|
14,884 |
|
|
|
18,627 |
|
Accrued expenses and other current liabilities |
|
|
16,527 |
|
|
|
18,496 |
|
Operating lease liabilities |
|
|
2,355 |
|
|
|
— |
|
Deferred revenue, current |
|
|
59,841 |
|
|
|
51,689 |
|
|
|
|
|
|
Total
current liabilities |
|
|
108,837 |
|
|
|
98,086 |
|
|
|
|
|
|
NONCURRENT LIABILITIES: |
|
|
|
|
Deferred revenue, noncurrent |
|
|
1,266 |
|
|
|
1,953 |
|
Long-term loans, net of current portion |
|
|
30,004 |
|
|
|
35,795 |
|
Operating lease liabilities, noncurrent |
|
|
20,697 |
|
|
|
— |
|
Other liabilities, noncurrent |
|
|
2,021 |
|
|
|
2,185 |
|
|
|
|
|
|
Total
noncurrent liabilities |
|
|
53,988 |
|
|
|
39,933 |
|
|
|
|
|
|
TOTAL LIABILITIES |
|
$ |
162,825 |
|
|
$ |
138,019 |
|
STOCKHOLDERS' EQUITY: |
|
|
|
|
Common stock |
|
|
13 |
|
|
|
13 |
|
Treasury stock |
|
|
(4,881 |
) |
|
|
(4,881 |
) |
Additional paid-in
capital |
|
|
439,644 |
|
|
|
412,776 |
|
Accumulated other
comprehensive loss |
|
|
(301 |
) |
|
|
— |
|
Accumulated deficit |
|
|
(391,129 |
) |
|
|
(322,634 |
) |
|
|
|
|
|
Total stockholders'
equity |
|
|
43,346 |
|
|
|
85,274 |
|
|
|
|
|
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
$ |
206,171 |
|
|
$ |
223,293 |
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of Operations (U.S. dollars in
thousands, except for share data; Unaudited)
|
|
Three months endedDecember
31, |
|
Twelve months endedDecember
31, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription |
|
$ |
39,576 |
|
$ |
38,482 |
|
$ |
152,480 |
|
$ |
144,966 |
Professional services |
|
|
4,491 |
|
|
4,234 |
|
|
16,331 |
|
|
20,050 |
|
|
|
|
|
|
|
|
|
Total revenue |
|
|
44,067 |
|
|
42,716 |
|
|
168,811 |
|
|
165,016 |
|
|
|
|
|
|
|
|
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription |
|
|
10,907 |
|
|
10,343 |
|
|
40,099 |
|
|
39,866 |
Professional services |
|
|
5,554 |
|
|
5,600 |
|
|
21,772 |
|
|
22,448 |
|
|
|
|
|
|
|
|
|
Total cost of revenue |
|
|
16,461 |
|
|
15,943 |
|
|
61,871 |
|
|
62,314 |
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
27,606 |
|
|
26,773 |
|
|
106,940 |
|
|
102,702 |
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
14,183 |
|
|
13,326 |
|
|
57,387 |
|
|
48,376 |
Sales and marketing |
|
|
13,208 |
|
|
13,845 |
|
|
59,280 |
|
|
45,788 |
General and
administrative |
|
|
11,226 |
|
|
12,031 |
|
|
45,414 |
|
|
39,489 |
Restructuring |
|
|
354 |
|
|
— |
|
|
1,238 |
|
|
— |
Other operating expenses |
|
|
— |
|
|
— |
|
|
— |
|
|
1,724 |
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
|
38,971 |
|
|
39,202 |
|
|
163,319 |
|
|
135,377 |
|
|
|
|
|
|
|
|
|
Operating loss |
|
|
11,365 |
|
|
12,429 |
|
|
56,379 |
|
|
32,675 |
|
|
|
|
|
|
|
|
|
Financial expenses, net |
|
|
1,302 |
|
|
1,675 |
|
|
4,248 |
|
|
20,106 |
|
|
|
|
|
|
|
|
|
Loss before provision for
income taxes |
|
|
12,667 |
|
|
14,104 |
|
|
60,627 |
|
|
52,781 |
Provision for income
taxes |
|
|
2,112 |
|
|
1,821 |
|
|
7,868 |
|
|
6,570 |
|
|
|
|
|
|
|
|
|
Net loss |
|
|
14,779 |
|
|
15,925 |
|
|
68,495 |
|
|
59,351 |
|
|
|
|
|
|
|
|
|
Preferred stock accretion and
cumulative undeclared dividends |
|
|
— |
|
|
— |
|
|
— |
|
|
8,241 |
|
|
|
|
|
|
|
|
|
Net loss attributable to
common stockholders |
|
$ |
14,779 |
|
$ |
15,925 |
|
$ |
68,495 |
|
$ |
67,592 |
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to common stockholders, basic and diluted |
|
$ |
0.11 |
|
$ |
0.12 |
|
$ |
0.53 |
|
$ |
0.95 |
|
|
|
|
|
|
|
|
|
Weighted average number of
shares used in computing basic and diluted net loss per share
attributable to common stockholders |
|
|
133,521,015 |
|
|
127,465,080 |
|
|
130,366,385 |
|
|
71,073,052 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of Operations (U.S. dollars in
thousands, except for share data; Unaudited)
Stock-based compensation included in above line items:
|
|
Three months ended December 31, |
|
Twelve months ended December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
$ |
319 |
|
$ |
243 |
|
$ |
1,376 |
|
$ |
877 |
Research and development |
|
|
1,033 |
|
|
546 |
|
|
4,268 |
|
|
2,798 |
Sales and marketing |
|
|
741 |
|
|
532 |
|
|
3,711 |
|
|
2,173 |
General and administrative |
|
|
3,721 |
|
|
2,835 |
|
|
14,290 |
|
|
11,217 |
|
|
|
|
|
|
|
|
|
Total |
|
$ |
5,814 |
|
$ |
4,156 |
|
$ |
23,645 |
|
$ |
17,065 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by Segment (U.S. dollars in thousands;
Unaudited):
|
|
Three months ended December 31, |
|
Twelve months ended December
31, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
Enterprise, Education and
Technology |
|
$ |
30,004 |
|
$ |
30,967 |
|
$ |
120,190 |
|
$ |
118,932 |
Media and Telecom |
|
|
14,063 |
|
|
11,749 |
|
|
48,621 |
|
|
46,084 |
|
|
|
|
|
|
|
|
|
Total |
|
$ |
44,067 |
|
$ |
42,716 |
|
$ |
168,811 |
|
$ |
165,016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit by Segment (U.S. dollars in thousands;
Unaudited):
|
|
Three months ended December 31, |
|
Twelve months ended December
31, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
Enterprise, Education and
Technology |
|
$ |
21,127 |
|
$ |
22,140 |
|
$ |
83,812 |
|
$ |
84,196 |
Media and Telecom |
|
|
6,479 |
|
|
4,633 |
|
|
23,128 |
|
|
18,506 |
|
|
|
|
|
|
|
|
|
Total |
|
$ |
27,606 |
|
$ |
26,773 |
|
$ |
106,940 |
|
$ |
102,702 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statement of Cash Flows (U.S. dollars in
thousands; Unaudited)
|
Twelve months ended December 31, |
|
|
2022 |
|
|
|
2021 |
|
Cash flows from operating
activities: |
|
|
|
Net loss |
$ |
(68,495 |
) |
|
$ |
(59,351 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
Depreciation, amortization, and abandonment costs |
|
2,707 |
|
|
|
2,412 |
|
Stock-based compensation expenses |
|
23,645 |
|
|
|
17,065 |
|
Amortization of deferred contract acquisition and fulfillment
costs |
|
10,865 |
|
|
|
8,075 |
|
Change in valuation of warrants to purchase preferred and common
stock |
|
— |
|
|
|
15,046 |
|
Non-cash interest expense (income), net |
|
(146 |
) |
|
|
331 |
|
Non-cash expenses with respect to stockholders’ loans |
|
— |
|
|
|
882 |
|
Loss (gain) on sale of property and equipment |
|
185 |
|
|
|
(757 |
) |
Loss on foreign exchange |
|
1,424 |
|
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
Increase in trade receivables |
|
(11,277 |
) |
|
|
(1,057 |
) |
Decrease (increase) in prepaid expenses and other current assets
and other assets, noncurrent |
|
429 |
|
|
|
(2,299 |
) |
Increase in deferred contract acquisition and fulfillment
costs |
|
(11,558 |
) |
|
|
(18,051 |
) |
Increase in trade payables |
|
3,132 |
|
|
|
3,886 |
|
Increase (decrease) in accrued expenses and other current
liabilities |
|
(1,937 |
) |
|
|
3,756 |
|
Increase (decrease) in employees and payroll accruals |
|
(3,743 |
) |
|
|
2,352 |
|
Increase (decrease) in other liabilities, noncurrent |
|
(51 |
) |
|
|
(675 |
) |
Increase in deferred revenue |
|
7,465 |
|
|
|
6,275 |
|
Operating lease right-of-use assets and lease liabilities, net |
|
527 |
|
|
|
— |
|
|
|
|
|
Net cash used in operating activities |
|
(46,828 |
) |
|
|
(22,110 |
) |
|
|
|
|
Cash flows from investing
activities: |
|
|
|
|
|
|
|
Investment in available-for-sale marketable securities |
|
(60,165 |
) |
|
|
— |
|
Proceeds from maturities of available-for-sale marketable
securities |
|
18,985 |
|
|
|
— |
|
Purchases of property and equipment |
|
(1,218 |
) |
|
|
(1,876 |
) |
Proceeds from sale of property and equipment |
|
— |
|
|
|
757 |
|
Capitalized internal-use software development costs |
|
(4,759 |
) |
|
|
(3,978 |
) |
Investment in restricted bank deposit |
|
(2,600 |
) |
|
|
— |
|
Purchase of intangible assets |
|
— |
|
|
|
(145 |
) |
|
|
|
|
Net cash used in investing activities |
|
(49,757 |
) |
|
|
(5,242 |
) |
|
|
|
|
Cash flows from financing
activities: |
|
|
|
|
|
|
|
Proceeds from initial public offering, net of underwriting
discounts and commissions |
|
— |
|
|
|
160,425 |
|
Payment related to the conversion of Series F redeemable
convertible preferred stock upon initial public offering |
|
— |
|
|
|
(1,569 |
) |
Proceeds from long-term loans, net of debt issuance cost |
|
— |
|
|
|
41,915 |
|
Repayment of long-term loans |
|
(3,000 |
) |
|
|
(51,833 |
) |
Principal payments on finance leases |
|
(136 |
) |
|
|
(1,717 |
) |
Proceeds from exercise of stock options |
|
2,732 |
|
|
|
1,335 |
|
Payment of debt issuance costs |
|
(125 |
) |
|
|
— |
|
Payment of deferred offering costs |
|
— |
|
|
|
(5,188 |
) |
|
|
|
|
Net cash provided by (used in) financing activities |
|
(529 |
) |
|
|
143,368 |
|
|
|
|
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash |
$ |
(1,424 |
) |
|
$ |
— |
|
|
|
|
|
Net increase (decrease) in
cash, cash equivalents and restricted cash |
$ |
(98,538 |
) |
|
$ |
116,016 |
|
Cash, cash equivalents and
restricted cash at the beginning of the year |
|
144,371 |
|
|
|
28,355 |
|
|
|
|
|
Cash, cash equivalents and
restricted cash at the end of the year |
$ |
45,833 |
|
|
$ |
144,371 |
|
|
|
|
|
|
|
|
|
Reconciliation from GAAP to Non-GAAP Results (U.S.
dollars in thousands; Unaudited)
|
|
Three Months |
|
Twelve Months |
|
|
Ended December 31, |
|
Ended December 31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Reconciliation of
gross profit and gross margin |
|
|
|
|
|
|
|
|
GAAP gross
profit |
|
$ |
27,606 |
|
|
$ |
26,773 |
|
|
$ |
106,940 |
|
|
$ |
102,702 |
|
Stock-based compensation expense |
|
|
319 |
|
|
|
243 |
|
|
|
1,376 |
|
|
|
877 |
|
Amortization of acquired intangibles |
|
|
107 |
|
|
|
107 |
|
|
|
426 |
|
|
|
564 |
|
Non-GAAP gross
profit |
|
$ |
28,032 |
|
|
$ |
27,123 |
|
|
$ |
108,742 |
|
|
$ |
104,143 |
|
GAAP gross
margin |
|
|
63 |
% |
|
|
63 |
% |
|
|
63 |
% |
|
|
62 |
% |
Non-GAAP gross
margin |
|
|
64 |
% |
|
|
63 |
% |
|
|
64 |
% |
|
|
63 |
% |
Reconciliation of
operating expenses |
|
|
|
|
|
|
|
|
GAAP research and
development expenses |
|
$ |
14,183 |
|
|
$ |
13,326 |
|
|
$ |
57,387 |
|
|
$ |
48,376 |
|
Stock-based compensation expense |
|
|
1,033 |
|
|
|
546 |
|
|
|
4,268 |
|
|
|
2,798 |
|
Amortization of acquired intangibles |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Non-GAAP research and
development expenses |
|
$ |
13,150 |
|
|
$ |
12,780 |
|
|
$ |
53,119 |
|
|
$ |
45,578 |
|
GAAP sales and
marketing |
|
$ |
13,208 |
|
|
$ |
13,845 |
|
|
$ |
59,280 |
|
|
$ |
45,788 |
|
Stock-based compensation expense |
|
|
741 |
|
|
|
532 |
|
|
|
3,711 |
|
|
|
2,173 |
|
Amortization of acquired intangibles |
|
|
34 |
|
|
|
112 |
|
|
|
239 |
|
|
|
441 |
|
Non-GAAP sales and
marketing expenses |
|
$ |
12,433 |
|
|
$ |
13,201 |
|
|
$ |
55,330 |
|
|
$ |
43,174 |
|
GAAP general and
administrative expenses |
|
$ |
11,226 |
|
|
$ |
12,031 |
|
|
$ |
45,414 |
|
|
$ |
39,489 |
|
Stock-based compensation expense |
|
|
3,721 |
|
|
|
2,835 |
|
|
|
14,290 |
|
|
|
11,217 |
|
Amortization of acquired intangibles |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Facility exit and transition costs |
|
|
156 |
|
|
|
— |
|
|
|
524 |
|
|
|
— |
|
Gain on sale of property and equipment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(757 |
) |
Non-GAAP general and
administrative expenses |
|
$ |
7,349 |
|
|
$ |
9,196 |
|
|
$ |
30,600 |
|
|
$ |
29,029 |
|
Reconciliation of
operating loss and operating margin |
|
|
|
|
|
|
|
|
GAAP operating
loss |
|
$ |
11,365 |
|
|
$ |
12,429 |
|
|
$ |
56,379 |
|
|
$ |
32,675 |
|
Stock-based compensation expense |
|
|
5,814 |
|
|
|
4,156 |
|
|
|
23,645 |
|
|
|
17,065 |
|
Amortization of acquired intangibles |
|
|
141 |
|
|
|
219 |
|
|
|
665 |
|
|
|
1,005 |
|
Restructuring |
|
|
354 |
|
|
|
— |
|
|
|
1,238 |
|
|
|
— |
|
Facility exit and transition costs |
|
|
156 |
|
|
|
— |
|
|
|
524 |
|
|
|
— |
|
Gain on sale of property and equipment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(757 |
) |
Other operating expenses1 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,724 |
|
Non-GAAP operating
loss |
|
$ |
4,900 |
|
|
$ |
8,054 |
|
|
$ |
30,307 |
|
|
$ |
13,638 |
|
GAAP operating
margin |
|
(26) % |
|
(29) % |
|
(33) % |
|
(20) % |
Non-GAAP operating
margin |
|
(11) % |
|
(19) % |
|
(18) % |
|
(8) % |
Reconciliation of net
loss |
|
|
|
|
|
|
|
|
GAAP net loss
attributable to common stockholders |
|
$ |
14,779 |
|
|
$ |
15,925 |
|
|
$ |
68,495 |
|
|
$ |
67,592 |
|
Preferred stock accretion and cumulative undeclared dividends |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8,241 |
|
Stock-based compensation expense |
|
|
5,814 |
|
|
|
4,156 |
|
|
|
23,645 |
|
|
|
17,065 |
|
Amortization of acquired intangibles |
|
|
141 |
|
|
|
219 |
|
|
|
665 |
|
|
|
1,005 |
|
Restructuring |
|
|
354 |
|
|
|
— |
|
|
|
1,238 |
|
|
|
— |
|
Facility exit and transition costs |
|
|
156 |
|
|
|
— |
|
|
|
524 |
|
|
|
— |
|
Gain on sale of property and equipment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(757 |
) |
Other operating expenses1 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,724 |
|
Remeasurement of warrants to fair value |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
15,046 |
|
Non-GAAP loss
attributable to common stockholders |
|
$ |
8,314 |
|
|
$ |
11,550 |
|
|
$ |
42,423 |
|
|
$ |
25,268 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP net loss per share - basic and diluted |
|
$ |
0.06 |
|
|
$ |
0.09 |
|
|
$ |
0.33 |
|
|
$ |
0.22 |
|
|
|
|
|
|
|
|
|
|
Shares used in
non-GAAP per share calculations: |
|
|
|
|
|
|
|
|
GAAP weighted-average shares
used to compute net income per share - basic and diluted |
|
|
133,521,015 |
|
|
|
127,465,080 |
|
|
|
130,366,385 |
|
|
|
71,073,052 |
|
Additional shares giving
effect to conversion of convertible and redeemable convertible
preferred shares at the beginning of the period2 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
42,404,076 |
|
Weighted average
number of ordinary shares outstanding used in computing basic and
diluted net loss per share (non-GAAP) |
|
|
133,521,015 |
|
|
|
127,465,080 |
|
|
|
130,366,385 |
|
|
|
113,477,128 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Other operating expenses in the year ended December 31, 2021
consisted of expenses related to the forgiveness of loans to
certain of our directors and executive officers in connection with
the public filing of the registration statement in connection with
our initial public offering.2 Assumes shares of common stock
outstanding after accounting for the automatic conversion of the
convertible and redeemable convertible preferred stock then
outstanding into shares of common stock at the beginning of the
fiscal year.
Adjusted EBITDA (U.S. dollars in thousands;
Unaudited)
|
Three months ended December 31, |
|
Twelve months ended December 31, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
Net loss |
$ |
(14,779 |
) |
|
$ |
(15,925 |
) |
|
$ |
(68,495 |
) |
|
$ |
(59,351 |
) |
Financial expenses, net
(a) |
|
1,302 |
|
|
|
1,675 |
|
|
|
4,248 |
|
|
|
20,106 |
|
Provision for income
taxes |
|
2,112 |
|
|
|
1,821 |
|
|
|
7,868 |
|
|
|
6,570 |
|
Depreciation and
amortization |
|
833 |
|
|
|
617 |
|
|
|
2,707 |
|
|
|
2,412 |
|
EBITDA |
|
(10,532 |
) |
|
|
(11,812 |
) |
|
|
(53,672 |
) |
|
|
(30,263 |
) |
Non-cash stock-based
compensation expense |
|
5,814 |
|
|
|
4,156 |
|
|
|
23,645 |
|
|
|
17,065 |
|
Gain on sale of property and
equipment (b) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(757 |
) |
Other operating expenses
(c) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,724 |
|
Facility exit and transition
costs (d) |
|
156 |
|
|
|
— |
|
|
|
524 |
|
|
|
— |
|
Restructuring (e) |
|
354 |
|
|
|
— |
|
|
|
1,238 |
|
|
|
— |
|
Adjusted
EBITDA |
$ |
(4,208 |
) |
|
$ |
(7,656 |
) |
|
$ |
(28,265 |
) |
|
$ |
(12,231 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) The three months ended December
31, 2022 and 2021, and the twelve months ended December 31,
2022 and 2021 include $720, $751, $2,301 and $2,979, respectively,
of interest expenses. The twelve months ended December 31,
2021 include $15,046 remeasurement of warrants to fair value.
(b) The year ended December 31,
2021 includes a gain on sale of data center equipment in connection
with our transition to public cloud infrastructure.
(c) Other operating expenses in the
year ended December 31, 2021 consisted of expenses related to the
forgiveness of loans to certain of our directors and executive
officers in connection with the public filing of the registration
statement in connection with our initial public
offering.(d) Facility exit and
transition costs for the year ended December 31, 2022 include
losses from sale of fixed assets and other costs associated with
moving to our temporary office in
Israel.(e) The year ended
December 31, 2022, include one-time employee termination
benefits incurred in connection with our reorganization plan in
2022.
Reported KPIs
|
|
December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
(U.S. dollars amounts in thousands) |
Annualized Recurring
Revenue |
|
$ |
159,238 |
|
$ |
150,800 |
Remaining Performance
Obligations |
|
$ |
171,660 |
|
$ |
185,484 |
|
|
Three months ended December 31, |
|
|
2022 |
|
|
2021 |
|
Net Dollar Retention Rate |
|
96 |
% |
|
120 |
% |
Kaltura (NASDAQ:KLTR)
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