Kaltura Announces Stock Repurchase Program

Rhea-AI Summary

Kaltura (NASDAQ: KLTR) has announced a new $15 million stock repurchase program, demonstrating the Board's confidence in the company's long-term strategy and belief in current stock undervaluation. The program will be executed through various means including open market purchases and block trades, funded from existing cash reserves and future cash flows.

Additionally, Kaltura has reaffirmed its guidance for Q1 and full-year 2025. For Q1 2025, the company expects:

• Subscription Revenue growth of 5-7% YoY ($43.4M-$44.2M)
• Total Revenue growth of 2-4% YoY ($45.7M-$46.5M)
• Adjusted EBITDA of $2.5M-$3.5M

Full-year 2025 projections include:

• Subscription Revenue growth of 2-3% YoY ($170.4M-$173.4M)
• Total Revenue growth of 1-2% YoY ($179.9M-$182.9M)
• Adjusted EBITDA of $12.7M-$14.7M

Positive

• $15M stock buyback program authorization shows confidence in company's future
• Company generating positive operating cash flow
• Q1 2025 subscription revenue expected to grow 5-7% YoY
• Projected positive Adjusted EBITDA for both Q1 ($2.5M-$3.5M) and FY2025 ($12.7M-$14.7M)

Negative

• Declining growth rates: Full-year 2025 revenue growth (1-2%) lower than Q1 2025 (2-4%)
• Subscription revenue growth expected to slow from 5-7% in Q1 to 2-3% for full-year 2025

Insights

Financial Analyst

Kaltura's announcement of a $15 million stock repurchase program represents a significant capital allocation decision for this video cloud provider. With a current market cap of $287.4 million, this buyback represents approximately 5.2% of the company's total market value - a substantial commitment that signals management's confidence in their business fundamentals and cash generation capabilities.

The timing is strategically aligned with management's view that KLTR shares are undervalued relative to their long-term opportunity. This assessment comes alongside reaffirmed guidance showing continued, albeit modest, growth trajectory with Q1 subscription revenue expected to grow 5-7% year-over-year to $43.4-44.2 million and full-year subscription revenue growing 2-3% to $170.4-173.4 million.

Particularly notable is Kaltura's positive Adjusted EBITDA forecast of $2.5-3.5 million for Q1 and $12.7-14.7 million for the full year, demonstrating the company's ability to balance growth with improving profitability. The flexible structure of the repurchase program - with no time limit and multiple execution options - gives management optionality to capitalize on market volatility while maintaining financial discipline.

This capital return initiative, combined with maintained operational guidance, represents a balanced approach to shareholder value creation during a period of modest single-digit revenue growth. The move optimizes capital structure while preserving sufficient liquidity for operational needs, as evidenced by management's confidence in funding the program through existing cash, investments, and future cash flows.

NEW YORK, March 21, 2025 (GLOBE NEWSWIRE) -- Kaltura, Inc. (“Kaltura” or the “Company”) (Nasdaq: KLTR), the Video Experience Cloud, today announced that its Board of Directors has authorized a refreshed stock repurchase program for up to $15 million of the Company’s common stock.

“Our renewed repurchase authorization underscores the Board’s continued confidence in our long-term strategy and its belief that our current share price continues to be undervalued relative to our long-term opportunity. We remain confident in our ability to continue to generate positive operating cash flow and are committed to strategically deploying capital where we believe it can generate shareholder value,” said Ron Yekutiel, Kaltura Chairman, President and Chief Executive Officer.

Under the repurchase program, the Company may make repurchases, from time to time, through open market purchases, block trades, in privately negotiated transactions, accelerated stock repurchase transactions, or by other means. Open market repurchases will be structured to occur in accordance with applicable federal securities laws, including within the pricing and volume requirements of Rule 10b-18 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases under this authorization. The volume, timing, and manner of any repurchases will be determined at the Company’s discretion, subject to general market conditions, as well as the Company’s management of capital, general business conditions, other investment opportunities, regulatory requirements and other factors. The repurchase program does not obligate the Company to repurchase any specific amount of common stock, has no time limit, and may be modified, suspended, or discontinued at any time without notice at the discretion of the Board of Directors. The Company currently expects to fund the repurchase program from existing cash and cash equivalents, short-term investments and/or future cash flows.

The Company is also reaffirming its first quarter 2025 and full year 2025 Subscription Revenue, Total Revenue and Adjusted EBITDA guidance as was provided in the Company’s financial results press release for the fourth quarter and full year 2024, dated February 20, 2025.

Financial Outlook:

For the first quarter of 2025, Kaltura expects:

• Subscription Revenue to grow by 5% - 7% year-over-year to between $43.4 million and $44.2 million.
• Total Revenue to grow by 2% - 4% year-over-year to between $45.7 million and $46.5 million.
• Adjusted EBITDA to be in the range of $2.5 million to $3.5 million.
  

For the full year ending December 31, 2025, Kaltura expects:

• Subscription Revenue to grow by 2%-3% year-over-year to between $170.4 million and $173.4 million.
• Total Revenue to grow 1% - 2% year-over-year to between $179.9 million and $182.9 million.
• Adjusted EBITDA to be in the range of $12.7 million to $14.7 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. Adjusted EBITDA is defined as net profit (loss) before financial expenses (income), net, provision for income taxes, and depreciation and amortization expenses, adjusted for the impact of certain non-cash and other items that we believe are not indicative of our core operating performance, such as non-cash stock-based compensation expenses, facility exit and transition costs, restructuring charges and other non-recurring operating expenses. 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 the macro-economic climate trends.

About Kaltura
Kaltura’s mission is to create and power AI-infused hyper-personalized video experiences that boost customer and employee engagement and success. Kaltura’s Video Experience Cloud includes a platform for enterprise and TV content management and a wide array of Gen AI-infused video-first products, including Video Portals, LMS and CMS Video Extensions, Virtual Events and Webinars, Virtual Classrooms, and TV Streaming Applications. Kaltura engages millions of end-users at home, at work, and at school, boosting both customer and employee experiences, including marketing, sales, and customer success; teaching, learning, training and certification; communication and collaboration; and entertainment and monetization. For more information, visit  www.corp.kaltura.com. 

Investor Contacts:
Kaltura
John Doherty
Chief Financial Officer
IR@Kaltura.com

Sapphire Investor Relations
Erica Mannion and Michael Funari
+1 617 542 6180
IR@Kaltura.com

Media Contacts:
Kaltura
Nohar Zmora
pr.team@kaltura.com

Headline Media
Raanan Loew
raanan@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 the methods, amount and timing of, and sources of funding for, repurchases under the stock repurchase program, and the Company’s financial performance, including the Company’s first quarter and full year 2025 financial guidance.

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, the current volatile economic climate and its direct and indirect impact on our business and operations; political, economic, and military conditions in Israel and other geographies; our ability to retain our customers and meet demand; our ability to achieve and maintain profitability; the evolution of the markets for our offerings; our ability to keep pace with technological and competitive developments; risks associated with our use of certain artificial intelligence and machine learning models; our ability to maintain the interoperability of our offerings across devices, operating systems and third-party applications; risks associated with our Application Programming Interfaces, other components in our offerings and other intellectual property;; our ability to compete successfully against current and future competitors; our ability to increase customer revenue; risks related to our approach to revenue recognition; our potential exposure to cybersecurity threats; our compliance with data privacy and data protection laws; our ability to meet our contractual commitments; our reliance on third parties; our ability to retain our key personnel; risks related to our revenue mix and customer base; risks related to our international operations; risks related to potential acquisitions; our ability to generate or raise additional capital; and the other risks under the caption “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, 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.

FAQ

How much is Kaltura's new stock buyback program worth?

Kaltura (KLTR) has authorized a $15 million stock repurchase program.

What are Kaltura's (KLTR) revenue growth projections for Q1 2025?

Kaltura expects Q1 2025 total revenue growth of 2-4% YoY, reaching $45.7M-$46.5M.

What is KLTR's expected Adjusted EBITDA for full-year 2025?

Kaltura projects Adjusted EBITDA of $12.7M-$14.7M for full-year 2025.

How will Kaltura (KLTR) fund the stock repurchase program?

The program will be funded from existing cash and cash equivalents, short-term investments, and/or future cash flows.

What is Kaltura's (KLTR) subscription revenue guidance for 2025?

Kaltura expects subscription revenue to grow 2-3% YoY to between $170.4M-$173.4M in 2025.