Kaltura (KLTR) 22 Feb 242023 Q4 Earnings call transcript

Good morning, everyone, and welcome to Kaltura Fourth Quarter and Full Year 2023 Earnings Call. All material contained in the webcast is the sole property and copyright of Kaltura with all rights reserved.

For opening remarks and introductions, I will now turn the call over to Erica Mannion at Sapphire Investor Relations. Please go ahead.

Thank you, and good morning. Kaltura Yaron Yekutiel, and Garmazi, Kaltura's CFO. from Chief Chairman John today incoming Officer; Executive Chief me are Co-Founder, Ron and Doherty, With Financial Officer; the a the and plans and XXXX. the Ron XX, for company's summary trends begin ended December with results will for fourth expected quarter XXXX, of year year of the by followed the outlook for review Yaron results the XXXX, will details then fourth of for quarter of and full first financial the quarter XXXX. and full company's

the required Please adjusted this no we whether filings, are to a risks XX, open your ended to developments for that period a as made to this including call factors statements quarterly and other SEC. EBITDA the forward-looking statements securities to discussing the from cause then or Form These except Form Any those current We neither new expected responses may results XX, materially questions. of on for measure, the quarterly Kaltura conference report results by guarantees this management's results Important meaning limited can for including note, federal future will XX-Q discussed questions, call. financial note found or that the section not and business. to the update result Kaltura's statements here. expectations statements on expectations call be will in promises are on Please XXXX, the statements actual XXXX, but differ nor as law. the them, and revise and report include cause during within be and ended regarding December uncertainties Risk differ and Factors September annual from laws, financial the in call, of as obligation to, forward-looking Kaltura's will year non-GAAP plans forward-looking SEC be XX-K could based fiscal including, involve filed today, that of of actual assumes otherwise, for with

financial metric, our the the non-GAAP is this of www.investors.kaltura.com. GAAP available measure reconciliation refer directly to a at website comparable most to company's For earnings release, on which please

Now over I will the to Ron. call turn

wrapped us you, Erica, we $X.X revenue of revenue you, of X% where, had subscription the declining we quarter, despite also and The XXXX growth. in quarter $XX.X a growth as for thank revenues, revenues up and year-over-year also year-over-year the consecutive rates this revenue We $XX.X expected, total joining EBITDA X% quarter total Today, fourth up as of which year everyone, fourth rates and growth quarter increased. was million, the for reported morning. saw call for the on posted high the of and total million, services up we revenue record year-over-year. Adjusted increased marked subscription fifth professional Thank forecasted, million. quarter previously

since bottom of It cash our the XXXX. for our consecutive of results time first the adjusted highest also from profitability quarter fourth flow was second operations, for fourth line, since also a positive adjusted the quarter was As year-over-year, prior to the $X.X both bottom million EBITDA EBITDA million and $XX.X a cash year for flow XXXX. the and losses our compared $XX.X improvements marked by used This year million $XX.X where EBITDA to from $X.X with concluded adjusted of million. in posted million reduced line operations we quarter

posting reaffirming that both positive this from expectation profitability in cash EBITDA growth accelerating and of our we end, adjusted to and we have our year, we the pleased our are adjusted a EBITDA while for achieved EBITDA X of our the surpassed adjusted revenue positive flow year. improving to cash dramatically At past a forecasted and operations delivering goal close, returning also to As XXXX draw has on revenue quarters guidance are and flows.

Moving the business on to update.

and retention XXXX, higher in achieved the we new bookings closed quarters more of XXXX. While bookings in gross continued and deals retention than higher fourth quarter lower be a of first X posted in to each than the results rate

silos. we Kaltura. sales qualified In show internally continued and as logo our our in customer record in increase top In by growth. differentiated high a a our which quarter, brought our future our enablement. in the to we event larger our partner platform addition, to customer to extended product with and saw communication within them well costs both record XXXX, forth fourth marketing that avoid increase video external joint many ARR complexities to the consolidate support and and quarter. and believe in continuous This a and number as the our leads funnel offerings, to pair increasingly ARPU doing by use horizontal software We size giants will global training [indiscernible]. average and reduce for new XXXX new workflows evidenced internal deals And high expansion our believe cases platform and sequential reach externally portfolio average help as of and continued their customers around the of enterprise content webinar We this so, consolidation and per E&C passing enables events of

features broadened upgraded our automotive events Kaltura Kaltura company the and company substantially of a earliest video inclusion technology by internal already webinars, extend the XXX and have and from platform their Additionally, financial platform accessibility additional to Datavant reach customers range institution, one webcasting of supported communication. of Fortune a leveraging to the event largest purchased our further U.S. leading events. Kaltura's prominent has

video-on-demand to and and a and well-known portal partners. direct-to-consumer successful streaming expanded in in selected school securing as of product. the prestigious global proof customers our leader concept our for European we continued after a employees increased education a chains the new In internal university global restaurant very by sphere, large space, customer, European usage largest with expansion new a business Power Kaltura capabilities its world's the access its suite of Kaltura's product One its conducting

our with our platform Cloud telecom media users customers increase top to continue migrating also our of EMEA households new of of We thousands the and number hundreds TV end of into service.

with we registration page in-person quarter, reporting ] [ and during audiences. boosting encourage roles introductivity and front, product of editor landing platform enriched that event continued our fourth virtual both additional advanced an features permissions, the the and On

and to proprietary broadcast board, to experience enhanced with which additional portal branding seamlessly videos now continue Kaltura and real-time the rooms complements our and conferencing pre added enables we new podcast video to capabilities post and to Our third-party launch and evolve the We together, users of options. player action experience integrations. stitch existing also customizable fleets. our improved video user call white

improve network efficiency. and features introduced also simulcast broadcast have to quality We

commitment continue the and security SaaS sovereignty. in capabilities front, support investments regional we options, to On enhancing key our new cloud data enforcing strategic our infrastructure have hold-your-own and to around made

AI-powered suggested and such and and As will events time discussed, video-first and AI during provide viewer previously engagement other drive for changes AI, great quizzes in identifying launching and the initiating era we AI-infused actions that webinars business for to passing believe organizers we real-time assistant actions by to we relevant and are engagement as as transformative presenters insights quarter, expanded experiences a in results.In grow real more the in AI The of expect to gradually improve more with accelerator cusp our experiences fold audience exploring joining and and their to and their of continued AI partners evoking part their boost interest possibilities results. video to business of technology XXXX, last and reaction. an program, and support us Throughout needs cater can to many increasingly customers for our offering. they become important we we with needs how and of quarter, launched which the

experiences impactful enterprises a more budgetary gradually As we digital costs look anticipate that be that this with ahead enterprises, in to and robust, and cases constraints entertainment. We as communication is video solutions, much an prospects. at the favorable including carbon video-based and partner a expected a engaging North Z and in to by powering video-based emissions we infused travel will provides most increasingly and We employees, hybrid Gen beyond, for is America. marketing customers market and to advanced expected experience. particularly video We believe engagement millennial order by employee and technologies, Kaltura believe reduce the and by which both generated online workforce, and that [indiscernible] ROI the learning environment and XXXX and AI in student lesser greater reinvest for customer engagement, fueled will workplace ease growth by such in use training, believe and

are this, unique these to we offering Beyond addresses believe we use that follow. platform and single cases all in others a

the see platform only functionality, scalability, but we single boosting As cost effective. being much reliability more not also approach mentioned, and

start to efficiency. our are their longer-term improved believe year, we even more of system's we expected challenging the competitors outperform passing when performance our many us and become that conditions to macroeconomic investments will cause quality, believe to in customers impactful helped While elevate advantages making

that strategic mentioned, focus sales sales we indicators force.In the the last such This entire is already capture number we growth new team XXXX enterprise and from rates fueling per a demand our for a for plan historical retention to XXXX, gradually that headwinds affect year's offering, product customer. both event trend for address and low-touch direction use gross and longer to our down with to while our continue sales external level. plan cases. and generated as We opportunities thesis. large macroeconomic-induced increase XXXX, and commercial size of revenue when we through increase win departments year to weighed experiences. seen and the time With a to we and our sells our leading arising internal size guidance to than the In conditions rate on our and albeit qualified the our to well we customers expansion the to enterprise we've positioned AI, of than new better go-to-market new sales video At goals. our higher with regrow of end, leads As increasing within and clear far this up sales existing tough a demand to spending wrapped continue ARPU entered previous that solutions logo average new growing first ARR platform the and are our growing reduced market our recovering strong funnel cater market team robust We in a validated down cycles SMEs bookings match below will to that for to and believe from summary, of improving, and lower enterprises. budgets new profitability that we year the year, demand continue

posting of right growth guidance for adjusted revenue While given XXXX. year's cash a have our we market growth, positioning the positive to both outcome, top and considering we year. and flow of with unclear macro Regardless still the are from our operations line reaffirming products last expectations we conditions support and thoughtful positive believe EBITDA faster this we're our

Now would before our more which Yaron transition, in financial I to his weeks address discuss handing CFO, to like it to planned Garmazi, ago. announced over we few a our results detail,

to past X like to professional to for been extend his success great years. I'd have and Kaltura's On our the the wish First, in excellence growth his deepest in contributions throughout him invaluable. to earn endeavor. company We gratitude commitment next

shall CFO iron support and shared, company a smooth will to March have remain the we quarter continue second to transition. throughout X ensure until the As

We Kaltura. Kalturian. have always at Kalturian a a saying a Once

recently, earlier introduce John me and our one of us large will traded that experience is decades of John and and warm strategic she'll CFO, goals. corporate publicly including to CFO Ventures, functions development that, joined close a I that, to as CFO our the am our friend Development financial welcome Relations of and Leap. me. John X. you of $X John? served and to will Verizon advance With multiple take he and and partner its be formally including in remain CFO seeing enterprises as reins served Part of Prior X Most Doherty. a explore to and pleased company financial to Verizon, Corporate of and excited this he you March and of team. operational that more COO am brings Investor efforts, the Magic Mr. at on contribute until briefly John on, opportunities our experience. month to I board, commercial financial than soon on variety be to While Head publicly our John you'll operational of to traded CFO Welcome greatly Head in large billion-plus moving forever both roles welcome plans of divisions. His senior at of held InterXion after acquisition. and

today. to for call I'm everyone Ron, hello excited you, on I market. very to know firmly it I'm and the well in potential to you looking Thank lead that to positioned an Kaltura exciting has forward and believe the getting soon. and journey is significant that of growth to to Ron talented Kaltura domain personally ahead and the exciting the join the team. many

over you, John. to Yaron. And now you, Thank

the you, found amazing I'm the product like great to by Thank strategy period right Kaltura memory. would left past profitable I to lead confident friendship Ron, My the meaningful good start the close learning, market. very the return excited leadership, of to about I'm and and and a road and ahead at and me right that growth morning, has thanking welcoming the very everyone. in John for it to right company, the and place years. with team Ron X and off

full-time be a and John shall the I basis transition. supporting a throughout to said, Ron smooth the second on quarter company As ensure

also As always Kalturian. a a once said Kalturian Ron

Now to results. financial back our

XX fourth As professional release, in over today's full revenue year-over-year, up the note website million, earnings a is of $XX.X www.investors.kaltura.com. million, up recurring metric available I Total of while revenue is be for I fiscal XX% adjusted A recognize year Annualized up contributed next $XX.X ended up XX% which $XXX.X year-over-year. the quarter which included million, X% today, quarter reconciliation remaining to were services $XXX.X XX, as the year revenue review at year-over-year, year-over-year. year-over-year. million, revenue months. was CapEx to the December performance referring X% our on was non-GAAP XXXX, financials The expect obligations X% and non-GAAP Subscription was X% we please revenue that $X.X fourth down million, EBITDA. will results to

services of segment, from million services XX% up total net negative Adjusted profit million, QX Subscription our million, Subscription $XX.X to the our Our fourth in margin from million, contributed revenue Subscription million, XXXX in XXXX. XXXX. from the rate loss down revenue XX% million, revenue in E&P was gross XX% margin QX revenue up our $XX.X X% quarter, $X.X margin XXXX for million, segment, year year-over-year, the revenue the in $XX.X year-over-year. X% E&P while EE&T segment, professional for EBITDA was million, December XX%, segment, quarter for million, total year-over-year. million, while professional up share. year-over-year. down $XXX.X million, $X.XX margin $XX.X $X.X $XX.X million, services professional up Total net while XX%, QX in XX% $X.X contributed XX% was GAAP X% XXXX. X% dollar M&T Subscription contributed up was Within profit representing $XX.X fiscal year-over-year. total revenue year-over-year. XXXX. professional M&T Subscription for $XXX.X of XX%, XX% quarter revenue million, $X.X in was retention down year-over-year, revenue down million revenue up XXXX. XX% the year-over-year. million, revenue ended gross Within for fourth out XX% of gross Within $X.X fourth $XXX.X from for profit a of And million, Within quarter revenue $XX.X representing year-over-year. X% the $X.X was quarter was contributed QX our X% services year-over-year, X% up improving up segment, M&T quarter XX, million, was gross year-over-year. up for quarter now services was for professional while Within per was revenue a million, while fourth revenue quarter XXXX, year-over-year, our $XX revenue diluted segment, the results. a year-over-year. $X.X gross the our was down was XX% million, $XX QX gross X% $XXX.X year-over-year. Within revenue XX% GAAP X% the fourth year was total up year-over-year, was down for up from in margin contributed gross in was the up was or X% $XX.X full representing a down million, million, year

down Within from was Subscription XXX% margin E&P revenue gross profit Within gross in from MMP million, in margin from up margin was our XX% XX%, $XX.X Subscription segment down Subscription was up loss net gross XXXX. XXXX XXXX of in XX%, XX%, margin XXXX. representing share. down XXXX. million, retention and or was representing a a in of XX%, net was dollar our XXXX. XX% million, GAAP XXXX. gross $XX.X from was gross XXXX. a from diluted was in negative from margin rate was XX% improving profit revenue in a XXXX XX% in $XXX.X gross XXXX in $XX.X XX%, XXX% Our segment, was margin gross in in EBITDA in per gross in XXXX XXXX gross gross gross profit margin revenue XXXX. GAAP in XXXX. Adjusted $X.XX margin in million, $X.X margin was XX% from million negative representing million of gross $XX.X XX% up XX%, of

in Turning the securities. to by with quarter cash to $X.X in flow. and quarter QX cash million ended in $XX.X the compared net in $X.X cash balance operating the sheet activity and We used provided XXXX. million marketable was Net cash operating million activities

revenue lenders, a December XXXX. also For terms the $XX.X and I extending to on Form XXXX. would our the discussing now new amending financial the X% X-K between increase the a agreement million certain and from $XX.X the and a XX, $XX.X filed quarter, our into like with to entered full the used and maturity operating to year in to In total $XX.X of was subscription turn a range to fourth we the XXXX. fiscal XXXX, $X.X increase cash and million compared in we first net activity in and December cash million to net million. ending quarter, XX, million used year operating to $XX.X activities X% million In X% for to our quarter outlook range XXXX expect first revenue X% from a decrease to decrease for between

an $X.X expect $X.X between We negative positive adjusted be million. a to million and a EBITDA

range subscription X% increase X% to million a X% revenue a full $XXX.X decrease a to and between year, million. million $XXX.X million between and from to expect from and $XXX.X total range to the revenue X% to to increase we For decrease a $XXX.X

adjusted million condition year. million. between headwind, tough that summary, In industry a usual, expect $X and a due of previous than the EBITDA closed be year We slower better to we $X guidance than albeit to and last year's macro and growth much

believe the are and growth market that and we we conditions market last product with that thoughtful gradually While improve, the right to uncertainty have market XXXX. our for outcome, shall accelerate positioning year's guidance and we considering

flow We and from have open are the cash to accrual goal are Operator? our year. this adjusted cash passing aside set call expectation operations that, the reaffirming questions. and of With posting we above positive from the bottom-line our for achieved positive and will year flow EBITDA

you. Thank

a session. We [Operator be will question-and-answer Instructions]. now conducting

first with Our Bank. question comes from Matt Niknam Deutsche

last One, of this there? market could more months. when in Maybe then some about referenced couple in see talk of what you terms subscription any the of inflections driving you X, over in competitive I improving terms in of talk seeing if then conditions that just could. have if secondly, revenue? change you And competitive maybe the terms if And you dynamics about backdrop, you positive you're could could just Ron, of confidence and

conditions. first for with one, start the market Let's confidence

relatively it's booking leading that the by the retention years, highest as It year, trends this to demand had coming and are best the Let's and quarter that prior wrap year had we what of way and we flattish, but in past, back was, also quarter last levels had which also we albeit better. indicators. the mentioned, much of

as been a bit it's quarter net tough Again, of quarter a another had booking where going we to So year, in and a before was by come the before. important it year down note from ones that and but year wrapped wait a is improvement. from to right better up the XX%. and our the about bookings than We're it's things headed go, the perspective, see it direction.Also

also the done we which less about As first year XX% the mentioned than that. that is salespeople earlier, actually time had we've before,

And we hasn't invest we -- could we've with the we so demand put and kept more now productivity could more, profitable, we has people. cater down. It and fallen could believe that to become

had the it's We just points qualified So look at our demand, other it's climbed throughout the They to the sequentially about at but continue we gradually by we the to sequentially question come whole year. at your grow, throughout look that the to not And from both the the have have year They down before RFP and the demand. beginning and the had materially, QM ability indicators grown year, But leading up. they cater demand, year. about marketing of leads. submissions also year-over-year. ever grew to the since also

that's rates of lastly, that seen into sign. customer a and average because to win or good the cultural high. customers internal ARPUs all consolidate remained around our we increase continued bigger And have so external. in and on additional strategy products and MRR record per We've And bigger are the this selling point, time all year that deals

have getting the total harder that year people which the still were long us, things are so these the in I enables into the workflows believe going around look offer that there's very a costs all direction. is and to think geared decision. additional look about Kaltura. for term just you than the and It less taking get technology, to talking to to better We're makes comfort was silos, if it's sense, broken always shaken together, cost folks, that more just they it but in mid- just case America in and to because the a that decision a nearsighted I there people North the not in lesser was things to mid- years, conversation ownership. because of because premium make consolidation as in long it right looking term, was things the It for think think, -- I tough them less So But we more said to we Europe, are ready following people moved. people doing and more

tough So slower rates We've we we've And around let's we've we your we're year a at next past, not look to about hopefully, We're competitive To would. talked been question growth year. not in than also again, careful. how and what seen quarter. continues up. second celebrating. said on It's out we have the but pounds change, it difference the climb last seen a delivered material

integration by see and So enables degree scale, the of way we real-time to the the offer, for earlier, we live is X us VOD and that One, breadth for we internal from meaning and of enterprise offer, led external. our mission compliance to differentiators is that depth lead analytics And reasons security, And to that the the as always And to the of strong. more enabling to lot and ability products. a continue continue could comes we've we our of criticality. what APIs and these I reliability, consolidation, the said we engagement last Kaltura. offer main offer that that X/X enable

the We companies. to from to for stronger up win competition results elsewhere. at other have of look the not rates seen year you lower It's end coming

negative your of not of because think relatively have is think these done reason advantages. we rates, shown Matt? public question, that most growth this the And there better we companies year. I Does that out the that if have address lower

yes. does, It

Just one quick follow-up.

or that's cycles, of as Just well terms you maybe in are seeing In those been impacted may of stabilize? of late. be curious sales how shortened terms

that good into out. are to the have Not is are yet. Good the question. pipe in the ones need news But gas come to come going that

So they do come out.

We closing the deals. are

price to that of a As XXXX year pressures, mentioned that the lengthening as to the come our headwinds Too to as at suddenly win this the seen that. and But still year, be so then we've be seeing closing sales significant we're we say have are in and past as the well caused top the of to that the better. off are cycle the pressures, beginning deals. held funnel continuing must mentioned, it's early these rates getting comes grow, is of in what are since year out,

there XXXX. more believe opportunity close deals we be to will So these in

question next Oppenheimer Iwanyc comes from George Our with Co. &

to off what's start luck John. to of and Ron, you, Just best congratulations on ahead,

comments maybe, happen starting us maybe of perspective with sales the So year Can the some off the give on and productivity. when from you're this on kind might Ron, a additions year? perspective what during you hiring those expecting

to do that. Happy Sure.

of So profitable, also last first, to say drop aligning had us can even to not the decent do salespeople We're kept but couple and productivity our broadly has it's year-over-year. always it -- our over years, good. contribute compared ready still profitability the do ability be to the if to as last We force COVID. year, materially But after of but productivity, I we great ready during as had It's way. we sales additional it not we're existing a than it also mentioned, on productivities to with sales metric lesser but growing it's productivities. had is given pre-COVID aligned in And it the quite always been, a XX% the in order as that.

so question? continue And more discussion could address going going outside doing important separately, year. the we market, the of that's XX Does We're inside as But to There's to far going than both your it rather commercial want increase we're sales, of a us. but for it continue that point, because and throughout down order we that's to of magnitude. we're numbers, doing this maybe on magnitude at focus sales, another sales gradually. order be

number, Can what and there perspective seeing it on your did perspective what And Yes. us for decline XXXX? the a expectations Yaron, up basis. an was from maybe on expansion give you but little quarterly expansion you're that year-over-year, are a net bit some on

Yes.

if call So there for XXX% the the Ron right, saw we XXX%, as term, it's will believe than the XXX%. the to see, believe when see at this as we will low that improvement and that first is on we reacceleration and It it rates, XX% that the to for said both normal we see new we see be you that that to of the be previous year, do to all, retention you a are that in better coming was the the But decline we increase X%. We numbers of this bookings the are short the we quarter. before of rate a can XXX. we will least was bookings a was for rates, believe around saw, I was believe fact COVID, able going in obviously, both mentioned, that but an term, short which based the retention in bit and and

Our with question Goldman from Gabriela Sachs. next comes Borges

I share your I normalization, comments color think to detail. wanted qualitative is Any on years macro. How the us? a with to you much on customer reinvest I and ready again. up appreciate of we're follow from conversations wanted your this curve driving understand you is of that are customers that? to the just can what out couple

way. bunch the mission-critical they more here, and we offer solution a with And that understand And said of figure we a us and When services fact There's we're people bought. said, we've can a come bunch is order less, issues, something the to different they end more that new I make that a even intend of bit to could people think a more could was said, we that we love in and happened what to needs. give that in lot integrated offer said, video. tightly systems XXXX, XXXX. and that be of we we first COVID normal that of the powering. few want customized were lot. one a of to just strategic beginning “Listen, out had of we're bought a new whole heard back across video a We a right? time use do there that the consolidate the or doing cases back-to-back more had in Give us thing, fact we'll in the that the thoughts.†their when to X are tailored "Look, And and quarters everybody we

ready Just financial downturn. as to the this impact we us, have was getting

sometimes years, that the said, “Look, So over more a staying impact. vendors, already I later the more. people last right now is have even incumbent just to post-COVID not we of a it's rationale. downturn a not to want price licenses. system, time.†have since the products, years, going ones that the mind that we couple some the but think they're It's FTE-based ideal financial that's bear of main make know Also than saying are switch so we People and main, the the with most internal definitely, X.X And on, if the it's in ever pressures

if as in to there's And letting go so people itself opposed of hiring also also reduction are usage. because then companies pushing against that FTEs is

about need And what so so what And I hearing far. “Look, enough now waited we they're to smarter think we're folks from that be was issue we we do. is saying, the biggest

celebrate. But going yet it's this industry that not XXXX well. in They're to competitive moving to hopefully complex time too It's this that goals. things we're Our be is our about not just guidance in start seeing money plus more want the is cautious our to and done.â€Now spending down, beyond, we're in it's going accepted need and up gradually being there also as and with and still I goals Kaltura. much market, advantage to XXXX there's has interest forward be at and are gone This again. and point,

see that quickly goes. Let's how

providing remind And top deal to it ramp take the full does any to to typically that enablement of does a long the and productivity? And up trading the of close? salesperson go help on productivity [indiscernible]. take on long larger you're to from color of funnel some some typically for for deals to how it and a with the us, sales How the metrics,

one, new On the training salespeople. that the for or third enablement customers is for enablement our

The latter.

Salespeople.

good. Okay,

how very definitely structured in folks and onboarding a start mean, company, the me video-first Let we're with company. into we're I last. we're the

So X. everything we have video

also our that customers, are that's experts an internal and the have us. in We they're also group training ones helping

CSMs, or ramp X salespeople in months outside we we we and that on second question, connected models, that factor the ramp-down our into So to To that for and put ramp for the well. come months to that expectations X modeling that's leads, one first do your careful for most and if our is But some to I salespeople selling in could around in be can get going tell they before. they booking. start booking you when us around hit. our to

and our the markets. It was why sales far is line, Media it sales there. not most the time of as which was E&T longer is telecom, focus varies more on so the And cycle. different between

be you're coming the and years, that X.X a point the quite time it a Back into downtimes, years. enjoyed organic more the even deployment all of growth to that existing It's longer. users logo, If lengthy during long the way takes times significant. are discussion we've, X and within relatively my so, is is then the always could sometimes which have to it profitability customers, new

our thousands, to take but will off bit new to and make to profit. longer customers This make that and longer longer foot to a quarter, we're we added putting of hundreds revenue try the bring hunt gas and

and enterprise the is business, management to But the to come you And which we've low if has cycle, usually started they that year, over beyond there. more have in had touch in large is albeit to given last the XX content shortened. have seeing year, it's elongate. products, more out of side talk industry, go companies more that the the things trends we're internal, to line On it to months somewhere than course major around which which software external, happened moved offer we've of been event X from is as the

definitely it's takes you enough but or I'd the the for we say not talking don't the we to is And deploy I'm So Gabriel? than when average, software It around they price Education if your there's deals -- On time that sometimes have on situation, to XX a cycles actually tell have closer address faster. logos, also that questions, months' about upsell a the exact answer depending way new to Does months, ones. tweener. added time. But months new XX it's learning other year. it's are not that few come in. time statistical in

you detail. Yes, the for thank

question comes next from Our Koontz Needham. Ryan with

there and coming question how terms would that negative John impacts year board. your in kind as welcome you that guidance customers guide? for subscription of to unpack for your Thanks flat, for churn new customers on new part of or versus the on logos On of returning sell and down

actually, the were At we for rates XXXX, we is as what declining QX, see level do of obviously, obviously. on year see the in before. about retention which But at saying point, rate. to retention our are same forecast, you the mentioned, Ron we from in was an First you and you guidance were if when on pressure an that, we'll QX, QX, some much all, and both had on expected booking which than higher increase was time, look comparing improvement see this what booking lower than because

was basis the higher. So

will that we saw we believe what decline start point, will booking very and numbers our to other a before, both hopefully, and the So continued even increasing with trying will to rate, that guidance year, in to we guidance. effect, see see forecast question? the it's improve. a specific of are -- you obviously, this compared the thoughtful this rate as it's really that was retention it second year.And part the at you do be decline, from situation our a And But not for but

downsell around logo. new that, was if you'd I address It could like. versus

months. with the over any not fact happening that start Let's not already we've assumptions are taken the past few that

versus We're going that change. that at better. was only We're service downsell. the that Meaning churn retention get XX% through So from was of expecting or departure churn issues, if would loss expect of ratio we're was forward. currently looking done that rates hope we're any budget issues of majority strengthening. but with albeit seeing, customers associated full the of still not of in and of dollar downsell are price we had it Most any do through also any expecting We're and to full we've assuming last product. a the quarter, to not assuming things continue them assuming remain, initial we're not that we're that things the

that And an we're or what so productivities seen. are aligned. We're MDR assuming would the and upsell that both of less more for trends continue we've assuming

that want the we've year which point, Is the us, specific to of very, so have very want address or be to on cushion And we've to this you seen. you everything thoughtful flattish, that guided kept necessary is any at obviously, this also there for we me the but questions past more given front?

qualification if I renewals? the your No. inside Is That I inside sales follow but that up for Or here, on will sales more is was good, focus. this more on could, on hires? lead

by So most of our managed customers sales. have been outside

Let's look average at the MR.

and customers XXX-ishmillion we of X,XXX-ish have have We revenues.

years, we blow a to we're more doing it's sales. that going inside because corporate medium departmental the small it's coming if that to that large targeting go much of size And touch And over being So for funnel, of as top opportunity the What's based new and and of and $XXX,XXX, new. we've the market last by be the from couple this is typical you not enterprise look But between different at here are of the both also as more enterprises added is And as divide by as through have recent the the average. to well sales median, us us, products us is sales. that therefore, enabling the so, team. renewal. doing the customer is, is happened that we're that the so that's large, It we on around sales.

do kind ARPU. earlier about back thing this of other because the that big size in my we are big, to did our statement of order to one customers coming double-click the on year Now quite opportunities

into in growth we lot and again again. a we multimillion-dollar have by more climbed opportunity, and that We pace and believe that have copy could

if we that renewal the we've more bring And of more automated, going team that this or more to taken very of very team XX% are Xx, the that is have the more the and going outside point, approaches. multimillion somewhere customers numbers. into at actually works we're customers moved which gradually them our around of working X/X and for in revenue, what do usually a So and year address that the have to growth out, figure side and to are this touch renewals is structured lower leave and more on and that's done sales larger high XXx get XX% is

you later, -- to if how we're But to talk maximize optimize So thinking thoughtful more That's sales the how about and the efficiency about that to Thanks like. very Ron. force output. color. we're in great, happy

next Austin JMP. comes question from Citizens Cole Our of Instructions] [Operator

conversations could platform are some of regards was of customers? kind I what and Ron, features AI like from to what with what talk adding about and wondering your the like been recently has to maybe been have those you if just your response

bunch customers for other number that have will out. be continue quarter, our events. come the seeing and also how good that of we We, add We're we did even AIS of vendors offer we the have The said features to worked mentioned how engagement. order quarter they to last features when increased that, and to that we've recommendations event preparing just on in-house acceptance program addition Over on that announce and for before, working we're our that will to accelerator going system that. we're mentioned there. in we added we to our events, work, in the expanded a very real-time increase we And for during and

couple dozen a have We of each.

virtue And is and innovation ecosystem. to it Kaltura because that are flexible so from it to helping is, the connect we that have the bus lot value of be could a more of a folks how add of open

significant in yet, of at customers the not lot around a us revenue. is of all the industries interest in addition, of into In AI that its the are that and It a with immediate process, variety I across fashion. discussions said expressing are turning beginning

provide and that it additive. be of add it to going over we'll info in And what continue costs time, will a and way. lot more we that more and this growth be me, we thing year, videos as videos revenue. think entire the cause more be prices a for think state I industry part what the and will it, provide lot of I be things, it's and part will understands to we're clear into I over is consumed is that contextualized more more a AI one to statistics existing hopefully, monitor created The for will that in could these gradually around how the baked about impacting more to

the and quite folks So a regardless user echo based, value usage it's a of a mentioned, material that. of lot A are monetizes significant that. it, we're as customers, across base, to to equine value-based, I multiple how seeing one the increase way, is whether system going in industries of

needle But mentioned the here's we're quarter one we're moving is as it's revenue. the and of going multiyear to much advancing amount move for So trends. you'd next things there. earlier, It's This how seeing and are come company. say, continued expect it's not a of the the these that

move is which Turrin Fargo. coming the of question, Michael our Wells next with to line We'll on from

comments you vertical geography, see double-click filling click Anything trends. seeing to This what wanted I for some Unger if of some is terms double David around Michael on in I I heard just know in strength. we to wanted the demand but geography? specific could on of Turrin. you're by

it's the situation, throughout side, we're connected the seeing in It's America geo geopolitical bit et year, weaker and in cetera. North the stronger consistent Europe. macro to immediately On current and been a and

are we bit new I that we're these. continuing quickly about education we X extent, on just I way it's mentioned, the the closed a TAM bring couple how across to and demand more the less that mentioned EDU could the issue. convert On quickly Europe, could market bear. much focus. all side, how just the play that which to so been, our last than are earlier, or more the that of telecom, not of so by focused We've median technologies to of a to in vertical than opportunities enterprise, But mentioned even over as size of years, the

in a if are outside it upside increased I to U.S. engaged telecom. of generally that the bunch say situation, customers of of We given of and macro of were America attacking enterprise. the users media Europe in were we're So all. with you, lot I and focus But is most a North conversation in the the can tell most

focus Can about driving you the it the of relates just profitability biggest to business? areas talk of as

Yes, we've first the of improvements over last all, I'm the very done of year. that content

that a massive and adjusted all, surprise second row and before, has was compared a which of flow that great, it going quarter again. year we we know, this the are is do because leap last we past. big you that not yet cash to cash flow the growing we and done same we're years it EBITDA the industry. goals, done We've the still of hit profitability, the revenue time in like at I that demonstrated said to a our we've is first ops, than forward faster have have this, As the What and been our quarter, profitability in the

our was the over last years. we the not competitive few that to important reason moves big the positioning so And ball and expand TAM, we did and the our completing have ARPU that our order in drop made

of to at we time we're So reduce reduce, while but a I cut say more able wouldn't me of move could make and right give -- the and cut we what didn't areas focus, it profitability we that and to we sure we continue to flat, muscle about you and forward turn add I'll bit words Yaron after. couple a grow.Let to thoughts maybe

points. So X important

First short the but of points a in here order see a we to continue it. will not are to gross significant and probably there. term, improvement, In all, get very more you regarding try working improve to few the margin, hard should we

day of for change. it committed from are positive flow year. the invest assumption terms we that start in the in going the post gross to as the fact this mentioned, of are -- marketing But invest In continue will market to on by based Ron we the sales and the to back and mentioned change that under margin. EBITDA we that adjusted see to both the end cash positive operations

you. Thank

of We session. question-and-answer end have our reached the

floor for closing like Ron pass I'd over So remarks. back Yekutiel to to the

and for Thank great your participating questions you, everyone, Yes. for today.

we're tough mentioned, year. been has said market forward. a We're our okay the improve It's same that As guidance our year about the would. macro next a at We directions the year. that And time about that and anything we thoughtful work everything. lead him to going to He's achieved great of a a feeling that there's strengthening welcome we're and his things beyond want passed. and what with to we you, We good Thank partnership joining still I month believe capability John, great us excited year. maze us us and younger quite together lot thank, for have for everybody, ahead day. this and again, beautiful team, with do to the in company. to with the helping are

conclude does you this and gentlemen, teleconference. and We Ladies this may time. at today's your your you participation, for thank disconnect lines