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1. Company Snapshot

1.a. Company Description

Kaltura, Inc.provides various Software-as-a-Service products and solutions and a Platform-as-a-Service.The company offers video products, such as webinars, virtual events, video sites, and virtual classrooms for video-based communication, collaboration, training, and customer experience; and video industry solutions, such as learning management system video and lecture capture solutions for educational institutions.


It also provides a TV solution that allows to provide OTT advertising and subscription-based live and on-demand TV services for media companies and telecom operators.In addition, the company offers media services, such as APIs, SDKs, and experience components, including live, real-time, and on-demand video creation, ingestion, transcoding, management, search, security, distribution, publishing, engagement, monetization, monitoring, multi-tenancy, and analytics, as well as video and TV content management systems.It serves a range of industries, including financial services, high technology, healthcare, education, public sector, media, and telecommunications.


The company was incorporated in 2006 and is headquartered in New York, New York.

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1.b. Last Insights on KLTR

Kaltura's recent performance was negatively impacted by a lackluster Q4 2024 earnings release, which showed a decline in revenue and a widening loss. The company's guidance for Q1 2025 was also disappointing, with a projected revenue decline. Furthermore, Kaltura's stock repurchase program, announced in March, was a belated attempt to boost investor confidence, but its limited scope of $15 million may not be sufficient to make a significant impact.

1.c. Company Highlights

2. Kaltura's Q3 2025 Earnings: A Strong Performance with AI-Driven Growth

Kaltura reported a total revenue of $43.9 million and subscription revenue of $42 million for Q3 2025, with a record adjusted EBITDA of $4.2 million, representing the ninth consecutive quarter of adjusted EBITDA profitability. The non-GAAP gross margin expanded to 70%, up from 68% in the same quarter last year, driven by the company's focus on high-margin subscription revenue. The non-GAAP net profit was $2 million, and the actual EPS came out at $0.01, beating estimates by a significant margin. The company's cash flow from operations was $9.3 million, in line with forecasts.

Publication Date: Nov -30

📋 Highlights
  • Record Adjusted EBITDA:: Achieved $4.2 million, a 72% YoY increase, marking ninth consecutive profitable quarter.
  • Ethof.ai Acquisition:: Acquired for $27 million to integrate GenAI conversational agents and avatars into video products.
  • Share Repurchase:: Repurchased 9.2% of shares (9.2M stake) for $16.6 million, enhancing shareholder value.
  • EBITDA Guidance Raised:: Full-year adjusted EBITDA now $16.6–17.6 million, up $1.8 million from previous guidance.
  • Strong Cash Position:: Expected $660 million gross cash and $30 million net cash by year-end, with $9.3 million Q3 operating cash flow.

Acquisition of Ethof.ai: A Strategic Move to Enhance AI Capabilities

Kaltura announced the acquisition of Ethof.ai, a deep tech GenAI lab, for a total deal value of approximately $27 million. The acquisition is expected to close in the fourth quarter and will provide Kaltura with conversational AgenTek AI technology and models for real-time photorealistic avatars. The integration of Ethof.ai's technology is expected to enrich Kaltura's offerings, boost its addressable markets, and drive growth in 2026 and beyond.

Financial Guidance and Outlook

Kaltura expects a sequential increase in total revenue for the fourth quarter, driven by new bookings and an improvement in the M&T growth retention rate. The company is guiding for total revenue to be between $45 million and $45.7 million, and subscription revenue to be between $41.6 million and $42.3 million. Kaltura is raising its adjusted EBITDA guidance for the full year to be between $16.6 million and $17.6 million, a $1.8 million increase from the previous guidance.

Valuation Metrics

Using the current valuation metrics, Kaltura's P/S Ratio stands at 1.24, indicating a relatively reasonable valuation compared to its revenue. The EV/EBITDA ratio is -30.6, reflecting the company's profitability and cash generation capabilities. The ROE is -2.89%, but the ROIC is 330.12%, indicating a strong return on invested capital. Analysts estimate next year's revenue growth at 1.3%, which may not fully capture the potential impact of the Ethof.ai acquisition.

Conclusion on Growth Prospects

Kaltura's acquisition of Ethof.ai and its focus on AI-driven growth initiatives are expected to drive growth in 2026 and beyond. The company's commitment to achieving double-digit revenue growth and a rule of 30 combination between revenue growth and adjusted EBITDA margin by 2028 or sooner is ambitious but achievable. With a strong track record of profitability and cash generation, Kaltura is well-positioned to execute on its growth plans.

3. NewsRoom

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Kaltura Recognized in Frost & Sullivan's 2025 Global Enterprise Video Platform Market Report

Nov -24

Source: globenewswire.com

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Acadian Asset Management LLC Buys 697,628 Shares of Kaltura, Inc. $KLTR

Nov -14

Source: defenseworld.net

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Kaltura: Showing Resilience As AI Push Expands

Nov -11

Source: seekingalpha.com

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Kaltura, Inc. (KLTR) Q3 2025 Earnings Call Transcript

Nov -11

Source: seekingalpha.com

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Kaltura Announces Financial Results for Third Quarter 2025

Nov -10

Source: globenewswire.com

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Kaltura acquires eSelf, founded by creator of Snap's AI, in $27M deal

Nov -10

Source: techcrunch.com

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Kaltura Signs Definitive Agreement to Acquire eSelf.ai, a provider of AI-based Interactive Avatars

Nov -10

Source: globenewswire.com

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Kaltura Launches First-of-Its-Kind AI Accessibility Agent To Ensure Title II Compliance for Educational Institutions

Oct -24

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.43%)

6. Segments

Enterprise, Education and Technology

Expected Growth: 4%

Kaltura's 4x growth is driven by its Enterprise segment's increasing demand for video-based communication and training tools. Education segment growth is fueled by institutions adopting video-based learning platforms. Technology advancements in AI-powered video analytics and cloud-based infrastructure enable scalable and secure video management, driving growth in all segments.

Media and Telecom

Expected Growth: 2%

Kaltura's Media and Telecom segment growth is driven by increasing demand for cloud-based video solutions, expansion of OTT services, and rising adoption of 5G networks. Additionally, growing need for remote collaboration and virtual events, fueled by the pandemic, contributes to the segment's growth.

7. Detailed Products

Kaltura Video Platform

A cloud-based video platform for managing, publishing, and distributing video content across multiple devices and platforms.

Kaltura OTT TV

A cloud-based over-the-top (OTT) TV platform for launching and managing TV services across multiple devices and platforms.

Kaltura Virtual Events

A virtual event platform for hosting and managing online events, conferences, and meetings.

Kaltura Learning

A video-based learning platform for creating, managing, and delivering online courses and educational content.

Kaltura MediaSpace

A video portal for managing, publishing, and sharing video content across organizations.

8. Kaltura, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Kaltura's video platform is highly customizable, making it difficult for substitutes to emerge. However, the rise of open-source video platforms and YouTube's growing enterprise features pose a moderate threat.

Bargaining Power Of Customers

Kaltura's customers are largely enterprises and educational institutions, which have limited bargaining power due to their reliance on Kaltura's platform for video management and delivery.

Bargaining Power Of Suppliers

Kaltura's suppliers are primarily cloud infrastructure providers, such as AWS and Google Cloud. The company's diversified supplier base and lack of dependence on a single supplier reduce the bargaining power of suppliers.

Threat Of New Entrants

The video platform market is highly competitive, and new entrants can easily replicate Kaltura's features. The low barriers to entry and the availability of open-source alternatives increase the threat of new entrants.

Intensity Of Rivalry

The video platform market is highly competitive, with established players like Brightcove, Ooyala, and Vimeo. The intense rivalry among players drives innovation and pricing pressure, making it challenging for Kaltura to maintain its market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 54.98%
Debt Cost 5.46%
Equity Weight 45.02%
Equity Cost 7.63%
WACC 6.44%
Leverage 122.14%

11. Quality Control: Kaltura, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
OneSpan

A-Score: 5.3/10

Value: 6.0

Growth: 6.6

Quality: 8.8

Yield: 2.0

Momentum: 5.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Glimpse Group

A-Score: 4.8/10

Value: 7.4

Growth: 6.6

Quality: 4.5

Yield: 0.0

Momentum: 10.0

Volatility: 0.3

1-Year Total Return ->

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Stock-Card
Kaltura

A-Score: 4.3/10

Value: 6.9

Growth: 5.6

Quality: 5.2

Yield: 0.0

Momentum: 6.0

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Bakkt Holdings

A-Score: 4.3/10

Value: 8.4

Growth: 3.7

Quality: 3.9

Yield: 0.0

Momentum: 9.5

Volatility: 0.0

1-Year Total Return ->

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Stock-Card
Cerberus Sentinel

A-Score: 3.4/10

Value: 7.6

Growth: 3.3

Quality: 2.8

Yield: 0.0

Momentum: 6.5

Volatility: 0.3

1-Year Total Return ->

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Stock-Card
Veritone

A-Score: 3.3/10

Value: 6.6

Growth: 3.3

Quality: 3.5

Yield: 0.0

Momentum: 6.5

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.64$

Current Price

1.64$

Potential

-0.00%

Expected Cash-Flows