Overview

* Kaltura ( KLTR ) Q2 revenue rises 1% yr/yr, beating analyst expectations, per LSEG data

* Adjusted net profit for Q2 beats consensus, marking a turnaround from last year

* Co initiates reorganization plan, including 10% workforce reduction for efficiency

Outlook

* Kaltura ( KLTR ) expects Q3 subscription revenue between $40.8 mln and $41.6 mln

* Company projects Q3 total revenue between $42.8 mln and $43.6 mln

* Kaltura ( KLTR ) anticipates full-year subscription revenue between $170.9 mln and $172.9 mln

* Company forecasts full-year adjusted EBITDA between $14.5 mln and $16.0 mln

Result Drivers

* AI PRODUCTS - Initial sales of AI products contributed to sequential increase in new bookings, per CEO Ron Yekutiel

* REORGANIZATION PLAN - Co initiated a reorganization plan, including a 10% workforce reduction, to enhance efficiency and productivity, with expected cost savings of $2.6 mln for the remainder of 2025

* GROSS MARGIN IMPROVEMENT - GAAP gross margin improved to 70% from 65% in Q2 2024, driven by improved operational efficiencies

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $44.50 $43.70

Revenue mln mln (5

Analysts

)

Q2 Beat $2.50 -$925,00

Adjusted mln 0 (4

Net Analysts

Income )

Q2 Net -$7.80

Income mln

Q2 Beat $3 mln $950,000

Adjusted (4

Operatin Analysts

g Income )

Q2 70.0%

Adjusted

Gross

Margin

Q2 -$2.80

Operatin mln

g Income

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the software peer group is "buy."

* Wall Street's median 12-month price target for Kaltura Inc ( KLTR ) is $3.25, about 47.4% above its August 6 closing price of $1.71

* The stock recently traded at 38 times the next 12-month earnings vs. a P/E of 57 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)