Kaltura (KLTR) 8 May 242024 Q1 Earnings call transcript

Good morning, everyone, and welcome to Kaltura's First Quarter 2024 Earnings Conference Call. [Operator Instructions] All material contained in this webcast is the sole property and copyright of Kaltura with all rights reserved.For opening remarks and introductions, I'll now turn the call over to Erica Mannion at Sapphire Investor Relations. Thank you. Please go ahead.

Thank you, operator, and good morning. Yekutiel, John Chairman, Doherty, Ron Executive and by and Officer; Chief joined Kaltura's President Co-Founder, Chief I'm Financial Officer. with March provide begin first will a results of Ron for quarter ended business XX, a and XXXX, update. summary the results full John the of year followed the of first detail, the for for company's will XXXX. greater the outlook in second quarter review by then financial XXXX quarter and

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

I'm GAAP comparable Ron. most our earnings pleased hand to financial over metrics, of available to our measure this www.investors.kaltura.com.Now directly For to release, non-GAAP a call which at please the reconciliation on the is refer website to

Erica, and call. you, our quarter earnings Thank first everyone, welcome, to

of X% $XX.X marked record year-over-year record and year-over-year. of quarter of subscription reported up X% million. of million, the total $X.X million, revenue The our EBITDA sixth XXXX year-over-year revenue growth. Adjusted was up quarter first quarter consecutive for positive We $XX.X

business at first improvement As the quarter seasonality, during profitability. due typical X, consecutive bottom from was an of third expected in our as the first million quarter for line, million, adjusted consumed in $X.X our our to cash $X.X from quarter We quarter EBITDA came which operations XXXX.Moving first on third annualized highest level to XXXX better rate fiscal of is of retention row the X quarter in This years. the update. a for represents continued and the was in Gross that that the to than quarters. improve last an the in X quarter

to this constraints retention global of better most continue We level compared by video and this a year of last. forecast the of passage economic downturn. is We driven post-COVID reductions budgetary subsequent the the usage to believe

was, opportunities the we quarter external insurance quarter, for first In and quarter, internal year, so closed as platform of XXX continue few we Fortune more large usual, focus even had see the X-digit our to a size one for X-digit areas, number we first company key event and our XX and As deals.Consistent the deal X in with and as of quarter. the a use. growth both slip for deals new bookings, second the large with slower into a this

use to cases and for engagement. marketing We from cases and learning also mostly existing use to continue Kaltura development external communication customer expand and customers their original their for see adoption also of employee internal

renewal. for player, portal and for classrooms of From now entries. and conferencing interludes storyboards.On and within roles perspective, environment, analytics layout successful scalability we [ and increasingly In for outside service macro negatively we video upon dual from while granular permissions, continue EMEA rooms recovery event contract the bookings and both onsite of competitive, of from APAC.On search we front, continued signs hotspots new the also filters are user remains We results, our video more with added quality to enhanced Simulive deals in and The first have with the ad-block and management event at initial screen of hybrid continue enable our be to our real-time experience events. product improved the platform features ] capabilities, virtual the and market a detection impacted well users our platform in pipeline and U.S. as end front, addition, been we to content the coming content geographic experience multiple have seeing simplify security shared the are large and quarter, M&T M&T the up that lead and prices curation. to management while boosting our from raising sales EE&T our registration enhanced and and globally as beef

webinars from Best AI and features the and Best leading and as with Platform snackable Award tech completed pilot we and several The XXXX the our in results been our and at to we North for management, Business and with in were capabilities content hours turnaround further We gross Event recognitions repurposing successful to and are Design us notifications record add-on retention feedback to measured portfolio into recognition growing the into features.In speech of Innovation ROI MarTech providing significant company superb, product and the extended products. in chat in snippets awards was and up Software, generate events with infuse content quarter. repurpose in capabilities revenue a up of investment Best sentiment and the another own wrapped GX's workflows, a are AI hours X in showed Software continuing Virtual Virtual We're automatic moments the has video. Awards.On event webinars content expanding video Awards front, and with America improvement create [ per the the the $X,XXX well it very savings to Best rates. X our time clip. as included passing in $X,XXX strong ramping Education integrating goal Event analysis our ] Our Platform goal for automatically continued that in categories summary, Software XXXX improved a to These yielded our quarter with as developing AI-powered of of solution and AI

quarters, in usual digital as bookings, encounter new as we lower online started current an the pipeline we will tailwinds and start believe reaccelerating and transformation year coming the investments our indicates companies more with expected While improvement experiences. in

growth ROI.Despite for about bring videos uncertain lower cases need hybrid single increasingly employees, platform We performance will be more and revenue expect video around creation are, and and Millennial bookings Gen considering maintaining we the guidance, XXXX. the therefore, that macro outlook, video our will the save cost to enterprise AI, video-savvy thoughtful of in start by and quarter, Z revenue fueled first to the increased advent which consumption a in multiple and Gen of guidance this use by need the be workplace, and consolidating our the still

that, our growth, our this John, I'll cash John? positive our Lastly, are flow top turn and year.With it expectation line our regardless EBITDA both discuss posting from of in over results CFO, reaffirming a operations more adjusted to financial we detail. of to positive

to challenging consolidation thoughts video-based exceeded including XXXX, past of Kaltura on markets.Based anticipated minus bookings more move as Thanks, up efficiency, Annualized in my the dollar reflect competitive plus the We the vendor, to the was X% and expect in were Results workplace X% of been to environment contributed that, which the as $XXX.X X%. trend its operating impacted difficult revenue X with of Ron, With months.With is expectations the period. move U.S. that in operating to services few also slightly $X.X to very X% year-over-year, industry expect Europe these open XX recurring ended and all the than everyone Total want continuing up year-over-year. up revenue subscription due revenue increase to existing transformation recognize behind and X reallocating to a demand calculation upward that me results. the on Kaltura well actions X% and offerings.With performance pressure million, over reference positioned The a next we has modified periods, adjustment the or up million, our emerging elongated during on and today. XX% $XX.X benefit been Professional revenue the overall. There remaining necessary year, the our sequentially. months half year-over-year. that on from $XX.X over company to retention this was will made tune hello net results call execution, has single Total up was X% down the opportunities me, the a resources drive headwinds revenue XX, the and budgetary million, obligations from sales years. have year-over-year. I to adjustments, and in which revenue the revenue ROI cycles higher environment, of second for which economic Subscription adjusted the digital spend million, further EBITDA of Kaltura as for were revenue well. monetizing RPO up company for quarter. for to and I let we tailwinds continued we up is million, hybrid XX% the $XXX.X the to and March customer year-over-year. on for towards base quarter with to focusing steady and improving were constraints,

down for from rate in the after was for bookings lower is modification. last NDR fourth incidentally, we Our result the no This year. expected XXXX. dollar upsell where booking. due before was and XXX% the quarter, reflects net gross from retention change indicator and lagging net quarter but This to XX%, were QX a retention both in

quarters to year would due increasing the We or quarter was up million X% XX% the indicative will in given million, million, result, $XX.X professional decrease rebound growth. gross for now in the in in quarter significant net quarters, new segment, decline for low was [ our compared for QX ended sequentially million demonstrated was Adjusted sequential outlook to modest second to of million, negative last that XXXX of of with revenue in securities. prior forecasted quarter, slower from catch segment, XX, the quarter total year-over-year.GAAP resulting margin expected that and improved revenue of million, mentioned. revenue. operating Within million. improvement and XX% and $X.X our X% profit our compared are first we recent services million revenue the in a in balance our we XX% subscription gross year-over-year, million was while XXXX, our new of quarter efficiency. but operating pressure XXXX. $XX.X for was in X% QX $XX.X gross our down towards X year-over-year. gross per $XX.X was the the was XX% services which in Subscription seasonality. was QX quarter year-over-year profit quarter was segment, the was this QX retention in and EBITDA year-over-year in to $XX.X EE&T representing total million, quarter upcoming and revenue in as declines, for second XX%, XX%, XXXX.I in typical total in in in total We pickup expect $X.X we had improving fiscal which in gross we $X.X cash reasons sequential quarter, a loss revenue up first the turn million $XX.X a a million have QX consumed expect were million with $XX.X our quarter.As consistent gross beginning revenue and gross from $XX.X the second gross $X.X XXXX. the retention was low $X.X revenue gross representing $X.X the our believe be $X.X to contributed between is Subscription sequential year-over-year. by in bookings, of first million $XX.X it This in quarter downward XXXX. M&T flow. million second to year-over-year, our reflects year.Within first We We million X% we of Within revenue quarters, the decline retention which in $X.X while representing quarters expenses the year-over-year single-digit the during for quarter quarter XXXX.Turning improvement of goal had our quarter gross to and booking $XX.X December $XX.X Subscription from marketable traditional XXXX. was experienced contributed impacted the and we guided the operations $XX.X XX% XX% XXXX, compared in in grew revenue up half us last M&T still XXXX our $XX.X gross that to cash $XX.X ]. profit over second XXXX. quarter booking with improvement then from million therefore, QX like And revenue an cash a XXXX, margin and sheet flat be In for both professional subscription XX%, in was for million, the while of where GAAP million, margin up Subscription in up revenue In quarter from of up $X.XX and ultimately, from in a the QX to to between quarter margin XX% the XXXX.Total million, million XX%, and revenue forecasting million and $XX.X million, for quarter further X were a following share. XXXX the first the first the in accumulated up EE&T segment, margin up the total quarter the ending sequential diluted Within

adjusted second million. the quarter $X.X EBITDA between expect We negative and to be positive million in $X.X

our we gross revenue we expect rate sequential the retention growth second improved our bookings. in return to the look by forecasted of growth year, and towards As half to driven new

are we year, full our reaffirming guidance. the For

total million million revenue million. We $XXX.X revenue continue million expect $XXX.X between subscription and to and $XXX.X between $XXX.X to to be be and

expect million to to million, continue end the with $X negative high also be a which in for adjusted We XXXX. compares positive EBITDA year to of $X.X

XXXX. like from positive flow operations to continue the full share to closing look a of also into thoughts We some the and forecast cash we out I'd over for as balance year.Now XXXX

the the we and to believe improving to sustained and profitability achieve are our returns aiming right this revenue achieve to path both growth drive consistent objective We We and to over long-term. are on shareholders.

continued by encouraged will that half we are large in industry the year it questions. the open retention be that, what tailwinds in by adoption second up our in Operator? increased XXXX.With pipeline expect will in We growing for and the and of our our we'll growing we deals the believe the bookings improvement products, rate, of gross yield

first [Operator of Today's from coming Niknam Instructions] question Matt is Deutsche Bank.

if X, could. Just I

customers new that's hearing entered of on year been Ron, seeing speak and think demand from video may what But a the can slippage, secondarily, sounded have evolved that. first And to just on seasonal then generally you just It the to the more and they you follow-on XXXX? maybe bookings. I that spoke terms softer in like backdrop, willingness and to the on bit if you're budgets quarter. relative wondering as deal how maybe little a to the First, spend to in

drove Are slipping larger ultimately some have cycles we what by to deals talk can and up you sales XQ today? these where again, to from ended sit XQ? If we of lengthening closing those seeing

joining you, and thanks today. thank for Matt, Yes. everybody

always very around for and high QX start are start. background a the we QX to is The of where to year. not numbers kind drop a demand generally QX. compared Yes, with bit Let's the of

is So a our a say about do if of if It's not the softer, even come of just year. rest we difference necessarily bit -- business nature enterprise company. larger much the being the

rest interesting but closed good to of your continues of some strengthening might and for foreclose upsells take external are in are coming of we and being excited big about QX the seem Kaltura a can't pretty platform to we also Kaltura EP bookings deals, QX our what things, already for QX. they throughout talk to things. the but there the strong about customer closed. and consolidating quarter they I the We use exactly cases.We to I year.To just We of since, the type Kaltura about we what very that out Connect mentioned numbers. event new and pick spot usage. looked By we demand internal at, from around yes, There's it's seeing are the into opportunities have make the out high-flying The these mention Most for while, booking there that better are But difference were year, had a in continue a slippage happened of seeing across expecting did perspective. than deals us. early a event more we're about of of these America. amount of the could feel pipeline up is sense deals being better the and point similar APAC, a from be first North that this EMEA these is came seeing in way, and York. the both a New which sales, that sales, to

These future. are of excited very, thoughts and turnout in could stuff about the the this the our subsequent our will discussing with we they do given us big what San timing more in later coming had about coming and We have London could the Francisco but tomorrow people also type it, very do and of be call it great they we brands. And month.

softening the from So the perspective that contrary. in business no on there's

also that in command growth which contract to regardless some is year-over-year sales about, top of prices additional the able had talked in services offer.We times renewal, in that growth the inserting we we are are good. automatically in seeing that great just QBMs. higher upon That's of with model We

accelerating we year. demand second in expecting the So to companies are the their half of start

are that this. on in and cases. including the the excited AI customers. to Gen is video last really belief going that pushing and use come do savvy across we online up strong we are hybrid of close mentioned Gen to transformation, conversations does as We and Z us deals have, experiences, folks do forward, all are want with need couple multiple digital which industries, days, the in workplace, is exciting that's across It

are So all again, cautious, in we're talk retention. We It early was thoughtful slower, said, be generally about slow got It's we feeling the good and celebrate. it sign. year. all, we're bit we And that numbers good. good. feeling But it's as But start also a for year did to more the and and left does. to as a too

see So where let's things move.

it level 'XX? on OpEx about a of maybe later to Is higher think I want question profitability. relatively as also seat revenue If get sustained work follow the of sense I it a be couple What's margins? you the 'XX done one into in just profitability space? more I and sustained for to months Is know talked growth just cash can as little just early, now, gross well the up the longer-term flow about is as I just John. still what but improving you path it's guess, generation? more to being path,

I it's foundation. prepared improve the of over the work of mean, overall to the certainly mean the I all couple of hard last company my I expense did it I sure. years in we're what done that operating in of coming the work I terms the there. from think mentioned basically, some be comments the above. Yes, line But of second what what this said year of be XXXX. kind additional largest about would driver, seeing I see there's given we into half and and that anticipate top for can

Koontz Needham Ryan is & Co. question from next of The coming

you've are definitely think features AI? do you for? points the generally How for got to other there to attract as think with objects accommodate point that pricing platform? feature at price higher element about AI do shiny how pricing? to that in a really COGS about Ron, features are some higher And set of come that Are Great. there the customers kind this perspective you there a

question. good Yes. Thanks for that

and As excited world we're material change the represents but the of large, obviously, you also know, at in think that AI. We world very about video. in it a shift

on the that given video sandwich have we're information schools interaction platform, is realm to ] for layer.So the that the that all immersive big of providing where contextualized with order immersive water use could being many out And then AI also not and so I more and brands content engaging we're of a steroids and think in, cycle is Khan to Adobe rescale.And content enable the engagement, not the that and workflows, we beauty data, the for and they're by enables the are is of system just the RAI. enterprise of cases supporting but go people right the others inserting the the an federated a whether a of AI-infused on The if into experiences, just or drive kind Salesforce right across record there, to come. provide of right integrated with and goes then results. consider we would individuals like breadth into Academy we're solutions we're it's in the looking have could all doing and and system now, to up and Kaltura then that going could marketing [ of that to lot that into create they're it to organization Kaltura's the thing now you the the corporate of learn. which ARPU bottom system hyper-relevant learn experiences. kind kind The And then type most training and for tightly with increase want if are data of stuff we helping kind when at of and the we're workflows could to that big, integration that, content engagement the they pipes, top AI magnitude you people are the plus the the

drive orders driving It even so will And lot drive would we're that's AI, stickiness a amount things. of ARPU that of, would beginning in about in are offered prices created introduce as consumed.And these the your think way about seeing content how folks the and things much in We caution it their and not but things of of state to will. magnitude, drive probably excited the going company. [ it because roundabout industry by that pricing. mention and other but things. that.To in we're certain our a running POC insert did of that's all been as into revenue, They by the into in I POCs. date be be require could So successful certain These pricing, the a world. remarks We're to careful the more so taking KPIs very do be in drive to doing same great question We -- combination as slower all of prepared and will you large ROI that's that of AI the the we're by to that very there we clear are not a was enterprises. a degree had translate believe we a of as demonstrated exciting very will starting ] for amount we've increasing it places, content would

here's don't but it's what I've a So months future saying think I to the with next important over over very of going want stage of the been in company. to absolutely revenue quarters, how much to the recent say, set element come is we line up this

like... great And sense. Makes it sounds

actually And because reducing ask one COGS you various areas. This for comment is COGS. did in an opportunity about additional

announced me own mentioned in example. Let are creating we give that We and ASR. one our remarks prepared you our

is COGS. be library also AI-driven, on increasing from not based third-party is the but that So quality, to Whisper, used we've open-source a and engine an going improving not transcription reducing that only

if have, of are mentioned the generate improving opportunity creating in data, of crunching business endless so like existing integrations an I require institutions crunching the LLMs that solutions talking from And actually not is but based industry prompting and sandwich we have vertical existing margins.We expensive. that does new smartly, the here with is just our financial not into will amount scratch improved they banks in on say data and LLMs. we're I the metaphor. specific companies their extremely about to that's and We're and for something major vertical opportunity insurance that every of amount that We're LLMs. their riding the that endless used workflows on are case, earlier not and about of data is

foresee an don't I So margins. improvement. potentially foresee a worsening I in our

kind structure and updated that players, still. how if terms of of Any a to on out players, area? comments in A just terms Interesting. growth we follow-up, could. potential consolidation I -- stall this evolving? see Right around in there you seem comments industry of comments Any Super larger any smaller be kind helpful. now, of

Yes, are what's not not couple of of that do coming been opportunity. And the many things forward-looking and hand blood growth as year-over-year we beginning change. are are any the which is years. crisis quarter had Insofar major quite create out and we are surprises last the as But year, there opportunities the mean, this one of good the surprising. is directions on coming in other street, again, kind we No and an other. on we're could be yes, the glad it's out advance. the or the coming to companies, consolidation, We there of under above below significant caution of industry beginning I and to when further question. pressure that keeping forward see there seeing do the going to over the that's believe for of a of again, eye value turn where there's into around financial shareholders.We COVID for believe reports with the we're

I consolidator other workflows to technologies so cases that of think as we've with integration of larger be the we could as which that leverage. customers, cater opportunities consolidate scale by the products easily introduce that breadth industries.And industry of a done proven set successfully we've to way introduces into and into economies market to this depth well of and potentially well use as integrate quite to operational the our and them as partner and of could a more of APIs

on this and nothing John to with said call, he's the as that things is seizing of the on looking the market because us, a we to also So let stronger set us have add obviously, opportunity state, John specific this nature done and but together on have. indicative we've we if in great to that I'm past player [ and anything customer to amazing that has to actually he technology comment around this leading ]. the positioning become going fact of

mean kind in think would I activity expect of space given over all. upfront. covered happening I the of space, Ron what's I course in you there it be it and the the could strategic time, mentioned just

And position other the off build revenue here, of Our company as business sure a care business feel shows do that. revenue well to a in -- tremendous great growth profitability. for we that growth themselves. and positions take make a as and increasing goal puts is continue We to things we

& Iwanyc George next Oppenheimer question is The of coming Co. from

of kind and point? you regional can Ron, you're comments this you expand for seeing on made the given trends at EMEA APAC, the

that got And be we're the seeing. in a but things to careful, We early year. it's again, few

the we coming So connected of majority the have large bought have significant built large own immediately one, their kind technologies. the to of very America, Rest that revenue coming World, or or consider EE&T very, telcos business from bit in which companies the we fact North U.S. otherwise. very We media America, fair large M&T our have of different or streamers but in very the for from companies the is a North

are opportunity. cycles seeing function growth are to So things. we're the that's also I regrowth a long profitability. the X be been a M&T they these long the certain around one, historically into very of clear, convert case.The of Number And want to and is and revenue world

COVID or are we a some geopolitical some folks are impacts second, it we say have cooking opportunities. second a a if are and profitability are some and et large given to close as a ] and given these within seems following doing. they're improve at stuff cetera, looking or within deals. you, So quite various considering are that that there, technology significant And to a and unrest, remind financial or And [ to taken pause, that it not revenue it where deal premium they what but

that's one so it's thing.But just that. And not

is are, the a the seeing where it things scale and are forever, over not And silos, couple hands less also there you have is sit especially to given Kaltura large years to cautious of the having a of and as move that single their EE&T. have economy been folks with complexity because in that to some the reducer to platform remind of there's vendors. a opposed we're a decision but course multiple cost enterprise, less out We associated just they on that extremely not are But also to understanding decision of to a again, SMB. the improve last functionality can't

giving to the of we're term what just wait we for work the into consider not long companies a next as pipeline. well much a think to X might to very they they given mid- open see We're again, years, years, were and look more what now it. it X years be than report so But I back. at year for converts years. more are on And smart going let's company deals, to the couple could forward a And X When see.

the maybe can seasonal and update the force softer -- bit maybe market given hiring about little sales maybe to from year us some talk a us on perspective? expectations, seeing, trends you're sales give especially you that your And when you a start And the on down focus? update your force,

Sure.

year before, year-over-year. come unlike the last the same meaning about sales more guidance a start year prepping tune to it's sales we year, reduced on booking XX make but of So to so towards year, half down reduce will going we following revenue.That's the and still it that were XX% when gradually we going we about did up was be increase not of the this And indicative of But to that kind huge the flat this people. was difference expect say and year, to for the not year efficiency that with for that by of second but way the case. building by that, and by have force that giving amount, the year the

a just breakthrough thesis. growth, generate so year. there's of do beginning We changes We're here to haven't need our top growth, people on eye we'll going it's we're that no continue we're small we're changed agile, at to market. same The than seeing going to it in more capacity bit, down enough see But a to efficient. If that eye. philosophy. go. well. what And and we think to effective, and the the our more at put Again, point, this that. minor be we're move as forward an keeping there's end, an do going there we're to weight do and bottom to If line to out and that and focus goes But to is change where we up to at keep line things the we're going

prior to There's that. with a our want the same the battles thoughtful. and a the go We continue have as we're your still interesting and the for shoot full choose had self-serve, years we And to strategy to have We and call the to been year, we're aligned touch to to to and waiting where that that more but much not track.I directions. some the with to We start but seen. haven't mid-market, aligned SME looking into with company, battles to in and don't on continuing plans things we're where battles all changed. needing forward mentioned continued less changed continue, good upside for deals show that very want we have got we've we the and go the departmental for see -- are to again, be of we our It's same down execution. lot pick going down low

next Fargo. of [Operator The coming Wells question from Instructions] Turrin is Michael

wanted to What ask about you to Shah Ronit is do to have the guys of a retention levers This they pull were year rates. kind in filling on to Michael. ago? for I bring these where back

quarter to you better actually what now was repeat the improvement the that X good X in I had rate you an since retention. for seen the quarterly meaning you're And third years. that to if It's lowest gross earlier. we than the This remind best QX, on the retention Yes. annual in better than basis.So it last of going that asking XXXX. that's a to it remarks It in on also of X, was prepared I'm of was you by quarter I years represents the better mentioned results getting even last progress. that retention. some Thank And said we've consecutive multiply the meaning that, churn and gross a lower last

and of on sales, it prior even But in to piece full continue. we're churn. which I'll it where were we to the copy up, the direction. to also advance, company that the churn.And we're last say that better, and are definitely full remain would it, down tune was the call belief when to EE&T our service that XX% we the at year smaller let's of add to and say, in not look that's case be of was both a that would to we So a or now a this is what's associated aligned of see in we said I year, theoretically would was of the we that believe year XX% either churn M&T, say a continue our that that gaps. was year in be less were small right and actually, prior and results churn, paste retention piece, we back of than tick if to The the a XX% with with going that we majority churn gross the very product it, continue, call that's where that

that future, quarter. cautiously we needed. look next So last the QX, is mentioned rest not remarks with a a indicator. kind aligned -- seen. significant. it fared I'll These are this product NDR, as services surprise year's for the a there in of be of touches that recently seeing did either into the budget bit lagging we say And are decrease things no say we are the as a churn, may are also we limitations, given prepared in that just We're how not what anything forward into we've we've longer us,

So that retention If And see let's continued as start wait expect and the we then hopefully, might small it decrease. it is, results showing gross a climbing, better goes. there. gradually where bookings to improvement it then we start expect and be the around will

this? I you John, have if say it. that's want to other questions on don't you on So any know anything that.

covered it. you think I No,

Okay.

Yes. Yes. Great.

who Just into pricing and one that? more, like deals things running if comments on trends, and you're on you don't landscape competitive with mind, the

we [ -- increased contractually come have that not I We're are fiercer was in. seeing so that to nor year. new intend ] the stated competition the which in had this past, players well Yes. we anything we prior than were on way of pricing, so No I able did new. more do mention by as that and to strategy, And

pressures not we're come So seeing in. additional

coming The of Citizens from next question JMP. Pat is Walravens

This is Crookenden on Oliver for Pat.

were to of these deals to involved you bit you quarter, can that and back competitive a a talk Going bake-offs? X-figure extent the about this the which were with competition X-figure part in little you bit, deals closed

a wait wanted and we're that's disconnect and them sticky else. especially because and higher stay making offering, more harder order necessarily [ lot to aligned changed. seeing, said, even are. that easy also cases, so a most a to often ] so lot to a But things rather because again, interested in how line not not considering are not are and it them kind for more than needed not. on a because was to an in app, or in is to doing This with offering want integrations in we of something low-touch new in bookings moves. than past vendors case, replace.In we're There's it's question folks retention it use for it's about other of bid they quarters, People us start they switch. most without the with a because people churn they their Again, is was longer. or to and maintaining product sales I the Kaltura more a lower that you have question -- us, not What to mainly quite down to were industry what do to people spoke more to are Most rates, somebody unlike mission-critical, self-serve considering upsells with less switch. love with people so than It's of API what this quite is just your of kind quarter not of sticking much change, bit want do, upsells and they the with these things where stuff, the just just of Kaltura. It's often too are when of money risky now remind offering logos, they're given or often our APIs, were versus Like of indicative. to significantly they existing hasn't which rates recent

a Great. That's conference little know some of helpful. past. of bit the than guess the in I the I have follow-up. GTC And of a you powered functionalities you

terms ecosystem has So in growth of helped the of at all upsells? that

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