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目錄
 
美國
證券交易委員會
華盛頓特區 20549
 
表格 10-Q
 
(標記一)
☒
根據美國證券交易法第13或15(d)條規定提交的季度報告
截至季度結束日期的財務報告2024年9月30日
或

☐根據1934年證券交易法第13或15(d)節的規定進行的過渡報告
過渡期爲___________至____________
委員會備案號碼：001-40644
Kaltura，Inc。
85-3306396
 
 
特拉華州
20-8128326
（國家或其他管轄區的
公司成立或組織）
（IRS僱主
唯一識別號碼）

860 Broadway
3rd Floor
紐約, 紐約
10003
，（主要行政辦公地址）(郵政編碼)
 
公司電話號碼，包括區號：（646) 290-5445

N/A

（前名稱、地址及財政年度，如果自上次報告以來有更改）
 
在法案第12(b)條的規定下注冊的證券：
 
每一類的名稱交易標誌在其上註冊的交易所的名稱
，每股面值$0.0001
KLTR
The 納斯達克資本市場證券交易所 LLC
請用√標記表示，申報人（1）在過去12個月內（或申報人要求提交此類報告的較短週期內）是否已提交1934年證券交易所法規定的第13條或第15(d)條規定要提交的所有報告，並且（2）在過去90天內是否受到該報告要求的約束。 Yes ☒ 否 ☐

請在複選框旁標示，表明註冊者在過去12個月期間（或者註冊者要求提交此類文件的較短期間內）是否按照S-t條例第405條規定提交了每一個互動數據文件。 Yes ☒ 否 ☐

請勾選標記以說明註冊人是大型快速申報人、加速申報人、非加速申報人、較小的報告公司還是新興成長型公司。請查看《交易所法》第120億.2條中「大型快速申報人」、「加速申報人」、「較小的報告公司」和「新興成長型公司」的定義。
大型加速報告人☐加速文件提交人
☒
非加速文件提交人☐較小的報告公司
☐
新興成長公司
☒
如果是新興成長型企業，請勾選複選標記，表明註冊者已選擇不使用延長過渡期來符合根據證券交易法第13(a)條規定提供的任何新財務會計準則。 ☐

請通過複選標記指示註冊申報人是否爲殼公司（定義見《交易所法》120億.2條）。 是 ☐ 否 ☒

截至2024年11月1日，註冊公司普通股每股面值0.0001美元的股份數量爲 149,695,319


目錄


目錄
 
第一部分財務信息 
項目1。
事項二
第3項。
事項4。
第II部分 其他信息
項目1。
項目1A。
事項二
第3項。
事項4。
項目5。
項目6。



目錄
前瞻性聲明

本季度的10-Q表格中包含前瞻性陳述。我們打算使這些前瞻性陳述受到1933年修訂版《證券法》第27A條和1934年修訂版《交易所法》第21E條中有關前瞻性聲明的安全港規定的保護，並非歷史事實的其他所有聲明可能屬於前瞻性聲明。在某些情況下，您可以通過諸如「可能」、「將」、「應當」、「期望」、「計劃」、「預期」、「可能」、「打算」、「目標」、「項目」、「考慮」、「相信」、「估計」、「預測」、「潛力」或「繼續」等術語來識別前瞻性陳述或這些術語的否定形式或其他類似表達。本季度10-Q表格中包含的前瞻性聲明包括但不限於有關我們未來經營業績和財務狀況、行業和業務趨勢、以股票爲基礎的薪酬、營業收入確認、業務策略和計劃以及市場增長的聲明。
本季度報告中的前瞻性聲明僅爲預測。我們在很大程度上基於對未來事件和財務趨勢的當前假設、期望和預測，我們認爲這些可能會影響我們的業務、財務狀況和運營結果。前瞻性聲明涉及已知和未知的風險、不確定性和其他重要因素，可能導致我們的實際結果、績效或成就與前瞻性聲明中暗示的任何未來結果、績效或成就有實質不同，包括但不限於以下內容：

•我們可能無法成功評估或減輕當前動盪的經濟環境，以及對我們的業務和運營，包括客戶和供應商的直接和間接影響，也無法準確預測全球經濟目前的不穩定狀況的持續時間和深度，並採取正確或足夠的措施來解決。

•以色列的政治、經濟和軍工-半導體情況，比如目前與哈馬斯和真主黨的衝突，可能會在很大程度上對我們的業務產生不利影響；

•我們對現有客戶需求的依賴以及受客戶需求變化影響的暴露，如果我們失去一個或多個重要客戶，或客戶帶來的營業收入減少，包括由於我們無法控制的原因，將使我們難以評估當前業務和未來前景，可能增加我們的業務、財務狀況、經營成果和增長前景受到不利影響的風險；

•我們有虧損的歷史，可能無法實現或維持盈利能力；

•我們未來的成功取決於我們產品的市場增長和擴張，這些市場不斷髮展，可能會比我們預期的增長更慢或發展方式不同，而且還取決於我們能否有效地適應和應對不斷變化的市場條件；

•如果我們無法跟上技術和競爭發展的步伐，無法開發或者推出新產品、解決方案和對現有產品進行升級，我們的產品可能變得更不具市場吸引力、更不具競爭力，甚至過時，對我們的業務、財務狀況和運營結果造成不利影響；

•我們可能面臨與我們使用某些人工智能（"AI"）和機器學習模型相關的風險，包括生成式人工智能（"生成AI"或"GenAI"）以及遵守圍繞人工智能開發和使用的不斷髮展的監管框架；

•如果我們不能在設備、操作系統和第三方應用程序之間保持互操作性，並且無法與第三方科技合作伙伴保持並拓展關係，將我們的產品與他們的產品和解決方案集成（反之亦然），我們的業務、財務狀況和運營結果可能會受到不利影響；
1

目錄
•我們的應用程序編程接口（API）和其他元件中的部分內容在我們的產品中是根據開源許可證向公衆授權的，這可能會對我們的產品商業化能力和知識產權保護產生負面影響；

•我們所競爭的市場尚處蓬勃發展和高度分散的狀態，可能無法成功地與現有和未來的競爭對手競爭，其中一些擁有比我們更豐富的財務、技術和其他資源，或者能夠提供捆綁式的服務和解決方案，可能更具吸引力，從而使他們能夠更好地與我們競爭，結果可能會損害我們的業務、財務狀況和經營業績；

•如果我們無法增加新客戶的訂閱銷售、擴展現有客戶的訂閱產品或提高他們訂閱的價值，或者讓他們以對我們有經濟利益的條款續訂訂閱，我們的未來營業收入和經營結果將受到不利影響；

•烏克蘭、俄羅斯及其他國家的政治、經濟與軍事狀況，俄羅斯入侵烏克蘭後的地緣政治不穩定性，以及中東和海灣地區的敵對狀態及其對全球交易和金融市場的可能影響，或我們運營的其他地域板塊中的此類及其他條件，或這些地區商業環境的變化，可能會對我們的業務產生重大且不利的影響；

•我們在相關訂閱期間內識別出大部分的營業收入，因此，銷售的下滑或上升並不會立即完全反映在我們的運營結果中；

•網絡或信息科技安防的違規事件增加以及網絡攻擊活動的增加，提高了我們面臨網絡安全威脅的風險，這可能對我們的業務產生不利影響；

•數據隱私、數據保護和數字運營韌性法律正在快速發展，這帶來了日益增長的合規挑戰。此外，如果我們或我們的第三方服務提供商遭遇安防-半導體漏洞、數據丟失或其他安全問題，包括如果未經授權的第三方獲得了我們客戶的數據，我們的聲譽可能受到損害，對我們平台、產品和解決方案的需求可能減少，我們可能會承擔巨額責任；

•我們通常在客戶協議下提供服務水平承諾，並提供客戶支持。如果我們未能滿足這些合同承諾，我們可能需要爲未來的服務提供信用，面臨合同終止並退還預付款項，被收取罰款，或在未來期間客戶續訂減少，這些都會降低我們的營業收入，並對我們的業務、財務控件和運營結果產生不利影響；

•我們依賴第三方，包括美國以外的第三方，來進行一些我們的軟件開發、質量保證、運營和客戶壓力位；

•我們依賴於我們的管理團隊和其他關鍵員工，失去一名或多名員工或無法吸引和保留高技能員工可能會對我們的業務產生不利影響；

•未能有效地開發和擴展我們的營銷和銷售能力，或者未能維持或擴展我們的國際業務，可能會損害我們增加客戶基礎和實現更廣泛市場接受我們產品的能力；

2

目錄
•我們預計我們的營業收入結構會隨着時間而變化，這可能會對我們的毛利率和經營成果產生負面影響；

•我們的國際業務和擴展使我們面臨風險；

•我們的一部分營業收入來自對政府實體的銷售，這些銷售面臨許多挑戰和風險；

•如果我們無法以可接受的速率或價格完成收購，也無法實現預期目標，以及進入其他支持我們長期策略的戰略交易和關係，那麼我們的增長率和普通股的交易價格可能會受到負面影響；

•涉及我們平台、產品或解決方案的真實或感知的缺陷、缺陷、安全漏洞、錯誤或其他性能故障可能導致我們失去營業收入、損害我們的聲譽，並使我們面臨責任。

•未能保護我們的專有科技，或未能獲得、維持、保護和執行足夠廣泛的知識產權，可能會對我們的業務、財務控件和運營結果造成重大損害；

•我們未能籌集到更多資金或產生擴大運營和投資新產品所需的重要資本，可能會降低我們的競爭能力，並對我們的業務產生不利影響；
和
•在我們於2024年2月22日向證券交易委員會（「SEC」）提交的2023年度10-K表格年報的第一部分，第1A項「風險因素」中討論的其他重要因素。

本季度10-Q表格中的前瞻性陳述是基於截至本季度10-Q表格日期可獲得的信息，雖然我們相信這些信息爲這些陳述提供了合理的基礎，但這些信息可能是有限或不完整的，我們的陳述不應被解讀爲我們針對所有可能相關信息進行了詳盡的調查或審查。這些陳述本質上是不確定的，投資者應被告誡不要過度依賴這些陳述。
您應該閱讀本季度報告10-Q表格及我們在此季度報告10-Q表格中引用的文件，並作爲本季度報告10-Q表格附錄提交，理解我們的實際未來結果、活動水平、表現和成就可能與我們預期有實質性差異。我們用這些警示性聲明限定我們所有的前瞻性陳述。這些前瞻性陳述僅反映截至本季度報告10-Q表格日期的情況。除非適用法律要求，否則我們不打算公開更新或修訂本季度報告10-Q表格中包含的任何前瞻性陳述，無論是由於任何新信息、未來事件還是其他原因。
在本季度報告表格10-Q中，除非另有說明或上下文需要，否則對「卡爾圖拉」、「公司」、「我們」、「我們」和「我們的」進行引用時，指的是卡爾圖拉公司及其合併的子公司。


3
目錄
第一部分——財務信息

項目 1. 基本報表
KALTURA, INC. 及其子公司
簡化合並資產負債表
(除股數和每股數據外，金額以千美元計算)
(未經審計)
2024年9月30日2023年12月31日
資產
流動資產:
現金及現金等價物$36,840 $36,684 
可售證券40,873 32,692 
應收賬款22,646 23,312 
預付款項及其他流動資產7,916 8,410 
延遲合同獲取和履行成本，當前10,274 10,636 
總流動資產118,549 111,734 
長期資產：
可售證券2,229 5,844 
物業及設備（淨額）17,062 20,113 
其他非流動資產2,916 3,100 
其他遞延合同獲取和履行費用，非流動13,766 17,314 
經營租賃使用權資產12,659 13,872 
無形資產，淨值332 689 
商譽11,070 11,070 
總非流動資產60,034 72,002 
總資產$178,583 $183,736 
負債及股東權益
流動負債：
長期借款 應付票據$2,499 $1,612 
應付貿易款5,819 3,629 
員工及薪資應計12,005 12,651 
應計費用和其他流動負債20,138 17,279 
經營租賃負債，流動2,448 2,374 
遞延收入，流動63,214 62,364 
總流動負債106,123 99,909 
長期負債:
非流動遞延收入78 369 
長期貸款，減去當前部分30,481 33,047 
經營租賃負債，非流動15,652 17,796 
其他負債，非流動負債2,108 2,295 
長期負債總額48,319 53,507 
總負債$154,442 $153,416 
附帶說明是壓縮合並基本報表不可分割的一部分
4
目錄
KALTURA, INC.及其子公司
簡化合並資產負債表
(除股數和每股數據外，金額以千美元計算)
(未經審計)
2024年9月30日2023年12月31日
承諾與或有事項（附註8）
股東權益：
優先股，$0.0001 每股面值， 20,000,000 截至2024年9月30日和2023年12月31日的授權股份； 0 截至2024年9月30日和2023年12月31日已發行和流通的股份
— — 
普通股，$0.0001 每股面值， 1,000,000,000 截至2024年9月30日和2023年12月31日的授權股份； 159,090,120 和 150,274,107 截至2024年9月30日和2023年12月31日發行的股份，分別爲； 149,646,001 和 142,588,917 截至2024年9月30日和2023年12月31日的流通股，分別爲
15 14 
國庫股票 –
9,444,119 和 7,685,190 普通股股份，$0.0001 截至2024年9月30日和2023年12月31日的每股面值
(7,114)(4,881)
額外實收資本493,148 471,635 
累計其他綜合收益297 1,047 
累計虧損(462,205)(437,495)
股東權益總額24,141 30,320 
總負債和股東權益$178,583 $183,736 

附註是簡明合併財務報表的組成部分。


5
目錄
KALTURA, INC.及其子公司
簡明合併經營報表
(除股數和每股數據外，金額以千美元計算)
(未經審計)



截至9月30日的三個月 截至9月30日的九個月
2024202320242023
營業收入:
訂閱$42,085 $40,847 $124,267 $121,962 
專業服務2,210 2,695 8,841 8,732 
總營業收入44,295 43,542 133,108 130,694 
營業成本：
訂閱10,437 11,004 32,699 33,106 
專業服務4,317 4,839 13,584 14,001 
總成本費用14,754 15,843 46,283 47,107 
毛利潤29,541 27,699 86,825 83,587 
營業費用：
研究和開發12,427 12,558 36,460 39,663 
銷售和市場營銷11,830 11,683 35,421 36,489 
一般管理費用9,750 11,767 35,250 36,298 
重組 — 5 — 973 
總營業費用34,007 36,013 107,131 113,423 
運營損失4,466 8,314 20,306 29,836 
財務收入，淨額(2,160)(95)(1,672)(3,047)
稅前損失2,306 8,219 18,634 26,789 
所得稅準備1,304 2,507 6,076 7,510 
淨損失3,610 10,726 24,710 34,299 
歸屬於普通股股東的每股淨虧損，基本和攤薄$0.02 $0.08 $0.17 $0.25 
在計算歸屬於普通股股東的每股淨虧損時使用的加權平均股數，基本和攤薄149,306,274 139,186,364 147,074,320 137,033,800 

隨附的說明是壓縮合並基本報表的一個組成部分。
6
目錄
KALTURA, INC.及其子公司
簡化合並綜合虧損表
(以千美元計，除了每股數據)
(未經審計)

截至9月30日的三個月 截至9月30日的九個月
2024202320242023
淨損失$3,610 $10,726 $24,710 $34,299 
其他全面收益（損失）：
現金流套期工具的未實現淨收益（損失）567 (445)(768)(536)
可供出售市場證券的未實現淨收益113 24 18 155 
其他綜合收益（損失）680 (421)(750)(381)
綜合損失$2,930 $11,147 $25,460 $34,680 

隨附的說明是壓縮合並基本報表的一個組成部分。


7
目錄
KALTURA, INC.及其子公司
濃縮合並股東權益表
美金（千美元，以外的股份數據）
(未經審計)
普通股庫存股額外實收資本累計其他綜合收益（損失）累計虧損股東權益總額
號碼金額號碼金額
截至2024年7月1日的餘額149,204,916 $15 7,751,795 $(4,966)$487,406 $(383)$(458,595)$23,477 
基於股票的補償— — — — 5,715 — — 5,715 
回購普通股(1,692,324)— 1,692,324 (2,148)— — — (2,148)
行使期權時發行普通股，以及限制性股票單位的歸屬2,133,409 — — — 27 — — 27 
其他綜合收益— — — — — 680 — 680 
淨損失— — — — — — (3,610)(3,610)
截至2024年9月30日的餘額149,646,001 $15 9,444,119 $(7,114)$493,148 $297 $(462,205)$24,141 

普通股庫存股額外實收資本累計其他綜合損失累計虧損股東權益總額
號碼金額號碼金額
截至2023年7月1日的餘額137,793,478 $13 7,685,190 $(4,881)$455,354 $(261)$(414,702)$35,523 
基於股票的補償— — — — 7,512 — — 7,512 
行使期權和限制性股票單位的授予所發行的普通股2,481,611 — — — 289 — — 289 
其他綜合損失
— — — — — (421)— (421)
淨損失— — — — — — (10,726)(10,726)
截至2023年9月30日的餘額140,275,089 $13 7,685,190 $(4,881)$463,155 $(682)$(425,428)$32,177 
隨附的說明是壓縮合並基本報表的一個組成部分。

8
目錄
KALTURA, INC.及其子公司
濃縮合並股東權益表
美金（千美元，以外的股份數據）
(未經審計)
普通股庫存股額外實收資本累計其他綜合收益（損失）累計虧損股東權益總額
號碼金額號碼金額
截至2024年1月1日的餘額142,588,917 $14 7,685,190 $(4,881)$471,635 $1,047 $(437,495)$30,320 
基於股票的補償— — — — 21,336 — — 21,336 
回購普通股(1,758,929)— 1,758,929 (2,233)— — — (2,233)
根據期權行使而發行普通股，以及限制性股票單位的歸屬8,816,013 1 — — 177 — — 178 
其他綜合損失— — — — — (750)— (750)
淨損失— — — — — — (24,710)(24,710)
截至2024年9月30日的餘額149,646,001 $15 9,444,119 $(7,114)$493,148 $297 $(462,205)$24,141 

普通股庫存股額外實收資本累計其他綜合損失累計虧損股東權益總額
號碼金額號碼金額
截至2023年1月1日的餘額134,564,429 $13 7,685,190 $(4,881)$439,644 $(301)$(391,129)$43,346 
基於股票的補償— — — — 22,471 — — 22,471 
行使期權時發行普通股，以及限制性股票單位的歸屬5,710,660 — — — 1,040 — — 1,040 
其他綜合損失
— — — — — (381)— (381)
淨損失— — — — — — (34,299)(34,299)
截至2023年9月30日的餘額140,275,089 $13 7,685,190 $(4,881)$463,155 $(682)$(425,428)$32,177 
隨附的說明是壓縮合並基本報表的一個組成部分。
9
目錄
KALTURA, INC. 及其子公司
簡明合併現金流量表
以千計的美元
(未經審計)
截至9月30日的九個月
20242023
經營活動產生的現金流：
淨損失$(24,710)$(34,299)
調整淨虧損與經營活動提供的（使用的）淨現金進行對賬：
折舊和攤銷3,834 3,409 
股票基於薪酬費用21,065 21,956 
遞延合同獲取及履行成本的攤銷8,550 8,774 
非現金利息收入，淨額(713)(705)
匯率期貨收益(285)(439)
經營資產和負債的變動：
應收賬款減少666 6,921 
預付費用和其他流動資產及其他非流動資產增加(73)(193)
遞延合同獲取和履行成本增加(4,367)(4,853)
應付賬款增加（減少）2,182 (5,575)
應計費用和其他流動負債增加2,742 91 
員工及工資應計減少(646)(2,504)
其他負債的增加（減少），非當前(27)411 
遞延收入的增加（減少）559 (1,285)
經營租賃使用權資產和租賃負債，淨額(857)(1,613)
經營活動產生的淨現金（使用）7,920 (9,904)
投資活動的現金流：
對可供出售的市場證券的投資(37,745)(33,609)
出售和到期的可供出售市場證券的收益33,982 38,976 
購買房產和設備(421)(1,792)
資本化內部使用的軟件— (1,493)
對受限銀行存款的投資— (1,001)
投資活動提供的（使用的）淨現金(4,184)1,081 
融資活動產生的現金流:
長期貸款的償還(1,750)(4,500)
股票期權行使所獲收益245 1,224 
債務發行成本的支付(10)— 
回購普通股(2,233)— 
回購普通股票的帳戶支付(117)— 
融資活動所使用的淨現金(3,865)(3,276)
匯率變化對現金、現金等價物和受限現金的影響285 439 
現金、現金等價物和受限現金的淨增加（減少）156 (11,660)
期初現金、現金等價物和限制性現金36,784 45,833 
期末現金、現金等價物和限制性現金$36,940 $34,173 
隨附的說明是壓縮合並基本報表的一個組成部分。
10
目錄
KALTURA, INC. 及其子公司
簡明合併現金流量表
以千計的美元
(未經審計)

截至9月30日的九個月
20242023
補充非現金活動的披露：
以信貸方式購買物業、設備和內部使用的軟件$51 $699 
待處理的期權行使收益$8 $96 
資本化的基於股票的薪酬成本 $464 $552 
現金流信息的補充披露
支付的所得稅，淨額$3,432 $3,182 
支付的利息$2,080 $2,242 
現金及現金等價物和限制性現金與合併資產負債表的對賬
現金及現金等價物$36,840 $34,073 
包括在其他資產中的限制性現金，非流動100 100 
現金、現金等價物及限制現金總額$36,940 $34,173 
    
隨附的說明是壓縮合並基本報表的一個組成部分。
11
目錄
KALTURA, INC. 及其子公司
簡化合並財務報表附註
以千計的美國美元（除分享和每股數據外）
(未經審計)
注意 1： 一般
業務描述
Kaltura, Inc.（連同其子公司統稱爲「公司」）於2006年10月成立，並於2007年1月開始運營。公司的業務分爲兩個主要部門，即企業、教育和科技（「EE&T」）以及媒體和電信（「M&T」）。公司開發了一個平台用於視頻創建、管理和協作。公司的平台使企業、教育機構和其他組織能夠以低成本推出先進的在線視頻體驗，包括超電視（「OTT」）電視、雲電視、網頁視頻出版、基於視頻的教學、學習與培訓、基於視頻的營銷以及基於視頻的協作。公司的核心產品包括各種軟件即服務（「SaaS-雲計算」）產品和解決方案，以及平台即服務（「PaaS-雲計算」）。
注2： 編制基礎和重要會計政策摘要
合併財務報表和呈現基礎
附帶的未經審核的簡要合併基本報表是根據美國普遍接受的會計原則（「U.S. GAAP」）以及證券交易委員會（「SEC」）關於中期財務報告的適用規則和規定編制的。
截至2023年12月31日的合併資產負債表源於截至該日期的經過審計的合併基本報表，但不包括所有披露，包括根據美國通用會計準則（U.S. GAAP）年度報告要求的某些附註。根據這些規則和規定，通常包含在按照美國通用會計準則編制的基本報表中的某些信息和附註披露已被縮減或省略。因此，這些未經審計的壓縮合並基本報表應與截至2023年12月31日的經過審計的合併基本報表及其相關附註一起閱讀，這些信息包含在公司於2024年2月22日向證券交易委員會（SEC）提交的2023年年度報告（Form 10-K）中。
根據管理層的觀點，未經審計的簡明合併基本報表已按照年度合併基本報表的相同基礎編制，並進行正常的調整，以便公正地展示截至2024年9月30日公司財務狀況，以及截至2024年和2023年9月30日的公司的合併運營成果、股東權益和現金流量。2024年9月30日結束的三個月和九個月的結果，並不一定表明預計到2024年12月31日全年結束時的結果，或任何其他未來的中期或年度時期。
估計的使用
按照美國通用會計準則編制基本報表需要管理層做出估計、判斷和假設，這些估計、判斷和假設會影響合併基本報表及相關附註中報告的金額。公司會持續評估其假設，包括與或有事項、所得稅不確定性、經營租賃的增量借款利率、金融資產和負債的公允價值（包括衍生品的公允價值）、無形資產的公允價值和使用壽命以及在應用營業收入確認政策時使用的估計相關的假設。公司將這些估計基於歷史和預期結果、趨勢以及在特定情況下認爲合理的各種其他假設，包括對未來事件的假設。實際結果可能會與這些估計存在差異。
信用風險集中度
可能使公司面臨信用風險集中情況的金融工具主要包括現金及現金等價物、可交易證券、受限制現金和應收賬款。
12
目錄
KALTURA, INC. 及其子公司
簡化合並財務報表附註
以千計的美國美元（除分享和每股數據外）
(未經審計)
公司的大部分及其子公司的現金及現金等價物和受限現金都投資於以色列、英國和美國的主要銀行。這些在美國的投資可能超過保險限額，並且在其他地區不受保險保障。然而，通常情況下，這些投資可以根據要求贖回，因此風險極小。
公司的應收賬款在地理上分散，主要來自對美國、歐洲和亞洲客戶的銷售。對應收賬款的信用風險集中通過信用額度、持續的信用評估和帳戶監控程序得到了限制。
主要客戶數據佔總收入的百分比：
下表列出了在下面各個期間內佔公司總營業收入10%或以上的客戶：
截至9月30日的三個月截至9月30日的九個月
2024202320242023
客戶A（M&T）10.80 %10.43 %10.80 %10.50 %
重大會計政策和估計
公司重要的會計政策在截至2023年12月31日的年度報告第10-K表格的第2附註中進行了討論，該報告於2024年2月22日提交給SEC。在截至2024年9月30日的九個月內，除以下所述外，這些政策沒有發生重大變化。
最近採納的聲明
作爲一家「新興成長公司」，《創業公司啓動法案》（"JOBS Act"）允許公司推遲採用適用於公公司新的或修訂的會計公告，直到這些公告適用於私營公司。公司已選擇在JOBS Act下使用這一延長過渡期。下面討論的採用日期反映了這一選擇。
近期會計指導方針尚未採用
2023年11月，財務會計準則委員會（FASB）發佈了會計準則更新（ASU）第2023-07號，分部報告（主題280）：可報告分部披露的改進，要求在年度和中期基礎上披露重大分部費用和其他分部項目，並在中期內提供關於可報告分部的利潤或損失和資產的所有年度必需披露。新標準適用於2023年12月15日後開始的財政年度，以及2024年12月15日後開始的財政年度內的中期，並允許提前採用。公司目前正在評估採用該標準的影響。
2023年12月，金融會計準則委員會發布了會計準則更新（「ASU」）2023-09，「所得稅 - 所得稅披露的改進」，要求對某些所得稅披露進行增強和進一步透明，特別是稅率調和和已支付的所得稅。該ASU自2024年12月15日後開始的財年起生效，採用前瞻性基礎，允許回溯應用。公司目前正在評估該標準實施的影響。
13
目錄
KALTURA, INC. 及其子公司
簡化合並財務報表附註
以千計的美國美元（除分享和每股數據外）
(未經審計)
注意 3: 來自客戶合同的收入
營業收入的分解
下表按類別展示了分拆的營業收入：
截至2024年9月30日的三個月
企業、教育和科技媒體和電信
金額收入百分比金額收入百分比
訂閱 $31,495 97.4 %$10,590 88.6 %
專業服務846 2.6 %1,364 11.4 %
$32,341 100 %$11,954 100 %

截至2023年9月30日的三個月
企業、教育和科技媒體和電信
金額收入百分比金額收入百分比
訂閱 $30,043 96.6 %$10,804 86.8 %
專業服務1,052 3.4 %1,643 13.2 %
$31,095 100 %$12,447 100 %


截至2024年9月的九個月
企業、教育和科技媒體和電信
金額收入百分比金額收入百分比
訂閱 $91,920 96.0 %$32,347 86.6 %
專業服務3,826 4.0 %5,015 13.4 %
$95,746 100 %$37,362 100 %
14
Table of Contents
KALTURA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars in thousands (except share and per share data)
(unaudited)
Nine Months Ended September 30, 2023
Enterprise, Education & TechnologyMedia and Telecom
AmountPercentage of revenueAmountPercentage of revenue
Subscription $90,175 96.4 %$31,787 85.7 %
Professional services3,408 3.6 %5,324 14.3 %
$93,583 100 %$37,111 100 %
The following tables summarize revenue by region based on the billing address of customers:
Three Months Ended September 30,
20242023
AmountPercentage of revenueAmountPercentage of revenue
United States (“US”)$23,899 54.0 %$22,394 51.4 %
Europe, the Middle East and Africa ("EMEA")16,157 36.5 %15,938 36.6 %
Other4,239 9.5 %5,210 12.0 %
$44,295 100 %$43,542 100 %

Nine Months Ended September 30,
20242023
AmountPercentage of revenueAmountPercentage of revenue
United States (“US”)$70,752 53.2 %$68,355 52.3 %
Europe, the Middle East and Africa ("EMEA")50,561 38.0 %48,461 37.1 %
Other11,795 8.8 %13,878 10.6 %
$133,108 100 %$130,694 100 %
Remaining Performance Obligations
Remaining performance obligations represent the amount of contracted future revenue that has not yet been recognized, including both deferred revenue and contracted amounts that will be invoiced and recognized as revenue in future periods. As of September 30, 2024, the aggregate amount of the transaction price allocated to remaining performance obligations was $187,846, which consists of both billed consideration in the amount of $63,292 and unbilled consideration in the amount of $124,554 that the Company expects to recognize as revenue but that was not yet recognized on the balance sheet. The Company expects to recognize 59% of its remaining performance obligations as revenue over the next 12 months and the remainder thereafter.

15
Table of Contents
KALTURA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars in thousands (except share and per share data)
(unaudited)
Costs to Obtain a Contract
The following table represents a roll forward of costs to obtain a contract:

Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Beginning balance $22,002 $25,485 $24,210 $26,928 
Additions to deferred contract acquisition costs during the period2,027 1,690 4,833 5,238 
Amortization of deferred contract acquisition costs(2,512)(2,478)(7,526)(7,469)
Ending balance$21,517 $24,697 $21,517 $24,697 
Deferred contract acquisition costs, current$9,171 $8,943 $9,171 $8,943 
Deferred contract acquisition costs, noncurrent12,346 15,754 12,346 15,754 
Total deferred costs to obtain a contract$21,517 $24,697 $21,517 $24,697 
Costs to Fulfill a Contract
The following table represents a roll forward of costs to fulfill a contract:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Beginning balance$2,908 $4,626 $3,740 $5,523 
Additions to deferred costs to fulfill a contract during the period— — — — 
Amortization of deferred costs to fulfill a contract(385)(445)(1,217)(1,342)
Ending balance$2,523 $4,181 $2,523 $4,181 
Deferred fulfillment costs, current1,103 1,658 1,103 1,658 
Deferred fulfillment costs, noncurrent1,420 2,523 1,420 2,523 
Total deferred costs to fulfill a contract$2,523 $4,181 $2,523 $4,181 

NOTE 4: MARKETABLE SECURITIES
The following is a summary of available-for-sale marketable securities as of September 30, 2024 and December 31, 2023:
September 30, 2024
Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Available-for-sale – matures within one year:
Corporate bonds$19,515 $34 $(1)$19,548 
Agency bonds1,501 1 — 1,502 
U.S. Treasury18,345 34 — 18,379 
Commercial paper1,444 1 (1)1,444 
40,805 70 (2)40,873 
Available-for-sale – matures after one year:
Corporate bonds1,678 — — 1,678 
Agency bonds551 — — 551 
2,229 — — 2,229 
Total$43,034 $70 $(2)$43,102 
December 31, 2023
Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Available-for-sale – matures within one year:
Corporate bonds$6,985 $4 $— $6,989 
U.S. Treasury8,795 17 — 8,812 
Commercial paper8,855 — (5)8,850 
Agency bonds8,037 9 (5)8,041 
32,672 30 (10)32,692 
Available-for-sale – matures after one year:
Corporate bonds2,944 14 — 2,958 
U.S. Treasury2,869 17 — 2,886 
5,813 31 — 5,844 
Total$38,485 $61 $(10)$38,536 
As of September 30, 2024 and December 31, 2023, the Company did not record an allowance for credit losses for its available-for-sale marketable debt securities and all of the gross unrealized losses of the Company's marketable securities have been in a continuous loss position for less than 12 months. There were no gains or losses from available-for-sale marketable securities that were reclassified out of accumulated other comprehensive income during the periods presented.
16
Table of Contents
KALTURA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars in thousands (except share and per share data)
(unaudited)
NOTE 5: FAIR VALUE MEASUREMENTS
In accordance with ASC 820, the Company measures its cash equivalents and marketable securities at fair value using the market approach valuation technique. Cash equivalents and marketable securities are classified within Level 1 or Level 2 because these assets are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. Foreign currency derivative contracts are classified within the Level 2 value hierarchy, as the valuation inputs are based on quoted prices and market observable data of similar instruments.
The following table sets forth the Company’s assets and liabilities that were measured at fair value as of September 30, 2024 and December 31, 2023 by level within the fair value hierarchy:

Fair Value Measurements As Of
DescriptionFair Value HierarchySeptember 30, 2024December 31, 2023
Measured at fair value on a recurring basis:
Assets:
Cash equivalents:
Money market fundsLevel 1$23,613 $18,745 
Short-term marketable securities:
Corporate bondsLevel 2$19,548 $6,989 
U.S. TreasuryLevel 2$18,379 $8,812 
Commercial paperLevel 2$1,444 $8,850 
Agency bondsLevel 2$1,502 $8,041 
Long-term marketable securities:
Corporate bondsLevel 2$551 $2,958 
Agency bondsLevel 2$1,678 $2,886 
Prepaid expenses and other current assets:
Restricted bank depositsLevel 2$3,397 $3,397 
Options and forward contracts designated as hedging instruments Level 2$311 $998 
Other assets, noncurrent:
Restricted bank depositLevel 2$1,002 $1,025 
Liabilities:
Derivative instruments liability included in accrued expenses and other current liabilities:
Options and forward contracts designated as hedging instruments  Level 2$80 $— 
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KALTURA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars in thousands (except share and per share data)
(unaudited)
NOTE 6: DERIVATIVES AND HEDGING
The Company entered into forward, put and call option contracts to hedge certain forecasted payroll costs denominated in NIS against exchange rate fluctuations of the U.S. dollar for a period of up to twelve months. The Company recorded the cash flows associated with these derivatives under operating activities. The Company does not use derivative instruments for trading or speculative purposes.
Notional Amount of Foreign Currency Contracts
The Company had outstanding contracts designated as hedging instruments in the aggregate notional amount of $31,328 as of September 30, 2024 and $15,093 as of December 31, 2023. The fair value of the Company’s outstanding contracts amounted to a liability of $80 as of September 30, 2024 and to an asset of $311 and $998 as of September 30, 2024 and December 31, 2023, respectively. These liabilities and assets were recorded under accrued expenses and other current liabilities and prepaid expenses and other current assets, respectively. Losses of $110 and $427 were reclassified from accumulated other comprehensive losses during the three months ended September 30, 2024, and 2023, respectively. Gains of $702 and losses of $1,599 were reclassified from accumulated other comprehensive losses during the nine months ended September 30, 2024 and 2023, respectively. These losses and gains were reclassified from accumulated other comprehensive loss when the related expenses were incurred.
Effect of Foreign Currency Contracts on the Condensed Consolidated Statements of Operations
The effect of foreign currency contracts on the condensed consolidated statements of operations during the three and nine months ended September 30, 2024 and 2023 were as follows:
Condensed Statement of Operations Location:Three Months Ended September 30, 2024Three Months Ended September 30, 2023Nine Months Ended September 30, 2024Nine Months Ended September 30, 2023
Cost of revenue$16 $60 $(106)$222 
Research and development57 225 (361)835 
Sales and marketing13 53 (95)206 
General and administrative18 89 (145)308 
Restructuring— — — 28 
Total$104 $427 $(707)$1,599 

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KALTURA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars in thousands (except share and per share data)
(unaudited)
NOTE 7: LEASES
The Company leases its office facilities under non-cancelable agreements that expire at various dates through November 2027. The Company has a lease agreement for offices in Israel which includes two extension options for five years each. The Company estimates that it is reasonably certain that it will exercise the option for the first extension period. Therefore, for the purposes of determining the amount of the expense and the value of the right of use asset and lease liability according to ASC 842, the Company determined that the lease term would end in November 2032.
Components of operating lease expense were as follows:
Three Months Ended September 30, 2024Three Months Ended September 30, 2023Nine Months Ended September 30, 2024Nine Months Ended September 30, 2023
Operating lease cost$702 $700 $2,071 $2,188 
Short-term lease cost— — — 154 
Variable lease cost49 18 119 58 
Total$751 $718 $2,190 $2,400 
Supplementary cash flow information related to operating leases was as follows:
Three Months Ended September 30, 2024Three Months Ended September 30, 2023Nine Months Ended September 30, 2024Nine Months Ended September 30, 2023
Cash paid for operating leases$1,068 $987 $2,332 $2,464 
As of September 30, 2024, the weighted-average discount rate is 4.6% and the weighted-average remaining term is approximately 7 years. Maturities of the Company’s operating lease liabilities as of September 30, 2024 were as follows:
Year Ending December 31,
2024 (Remainder)$771 
20253,068 
20263,130 
20272,698 
20282,318 
20292,318 
2030 and thereafter6,016 
Total operating lease payments20,319 
Less: imputed interest2,219 
Total operating lease liabilities$18,100 
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KALTURA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars in thousands (except share and per share data)
(unaudited)
NOTE 8: COMMITMENTS AND CONTINGENCIES
Purchase Commitments
The Company has entered into various non-cancelable agreements with third-party providers for use of mainly cloud and other services, under which it committed to minimum and fixed purchases through the year ending December 31, 2026. The following table presents details of the aggregate future non-cancelable purchase commitments under such agreements as of September 30, 2024:
Year Ending December 31,
2024 (Remainder)7,888 
202527,872 
202628,557 
Total purchase commitment$64,317 
During the nine months ended September 30, 2024, the Company has accelerated expenses in the amount of $1,312 related to its minimum commitment with one of its cloud hosting service due to the Company's decision not to utilize the provider's cloud service. Such expenses were recorded under general and administrative expenses in the consolidated statement of operations.
Litigation
The Company is occasionally a party to claims or litigation in the normal course of the business. The Company does not believe that it is a party to any pending legal proceeding that is likely to have a material adverse effect on its business, financial condition, or results of operations.

NOTE 9: CONDENSED CONSOLIDATED BALANCE SHEET COMPONENTS
Prepaid expenses and other current assets
Prepaid expenses and other current assets consisted of the following:

September 30, 2024December 31, 2023
Prepaid expenses$3,424 $2,656 
Restricted bank deposits3,397 3,397 
Derivative instrument311 998 
Other current assets784 1,359 
$7,916 $8,410 

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KALTURA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars in thousands (except share and per share data)
(unaudited)
Property and Equipment, net
Composition of property and equipment is as follows:

September 30, 2024December 31, 2023
Cost:
Computers and peripheral equipment$4,148 $3,802 
Office furniture and equipment2,241 2,183 
Leasehold improvements7,286 7,267 
Finance leases of computers and peripheral equipment253 253 
Internal use software13,755 13,755 
27,683 27,260 
Accumulated depreciation(10,621)(7,147)
Depreciated cost$17,062 $20,113 

Depreciation expenses for the three months ended September 30, 2024 and 2023, and for the nine months ended September 30, 2024 and 2023 were $1,134, $1,128, $3,477 and $2,973, respectively.
Other assets, noncurrent
September 30, 2024December 31, 2023
Restricted cash$100 $100 
Severance pay fund1,526 1,685 
Restricted deposit1,002 1,025 
Other288 290 
$2,916 $3,100 
Accrued expenses and other current liabilities
September 30, 2024December 31, 2023
Accrued expenses$5,141 $4,353 
Accrued taxes13,925 11,755 
Derivative instruments80 — 
Other current liabilities992 1,171 
$20,138 $17,279 
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KALTURA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars in thousands (except share and per share data)
(unaudited)
NOTE 10: GOODWILL AND INTANGIBLE ASSETS
There were no impairment charges to goodwill during the periods presented.
The carrying amounts and accumulated amortization expenses of the intangible assets, as of September 30, 2024 and December 31, 2023, were as follows:
September 30, 2024December 31, 2023
Weighted average remaining useful life (in years)BalanceBalance
Gross carrying amount:
Technology0.50$4,700 $4,700 
Customer relationship2.502,419 2,419 
7,119 7,119 
Accumulated amortization and impairments:
Technology(4,496)(4,177)
Customer relationship(2,291)(2,253)
(6,787)(6,430)
Intangible assets, net$332 $689 
During the three months ended September 30, 2024 and 2023, and the nine months ended September 30, 2024 and 2023, the Company recorded amortization expenses in the amount of $120, $120, $357 and $436, respectively, included in cost of revenue and sales and marketing expenses in the consolidated statements of operations.
The estimated future amortization expense of intangible assets as of September 30, 2024, is as follows:
Year Ending December 31,
2024 (Remainder)$120 
2025148 
202650 
202714 
$332 

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KALTURA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars in thousands (except share and per share data)
(unaudited)
NOTE 11: INCOME TAXES
The Company recognized an income tax expense of $1,304, $2,507, $6,076 and $7,510 for the three and nine months ended September 30, 2024 and 2023, respectively. The tax expense for these periods was primarily attributable to pre-tax foreign earnings. The Company’s effective tax rates of (57)%, (31)%, (33)% and (28)% for the three and nine months ended September 30, 2024 and 2023, respectively, differ from the U.S. statutory tax rate primarily due to U.S. losses for which there is no benefit and the tax rate differences between the U.S. and foreign countries.
The Company has a full valuation allowance on its deferred tax assets. Deferred tax liability is from indefinite life goodwill intangibles. Management currently believes that it is more likely than not that the deferred tax regarding the tax loss carry forwards and other temporary differences will not be realized in the foreseeable future in the U.S.
NOTE 12: NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS
The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders for the periods presented:
Three Months Ended September 30, Nine Months Ended September 30,
2024202320242023
Numerator:
Net loss$3,610 $10,726 $24,710 $34,299 
Total loss attributable to common stockholders$3,610 $10,726 $24,710 $34,299 
Denominator:
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted149,306,274139,186,364147,074,320137,033,800
Net loss per share attributable to common stockholders, basic and diluted$0.02 $0.08 $0.17 $0.25 

Instruments potentially exercisable for common stock that were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive are as follows:
As of September 30,
20242023
Outstanding stock options and RSUs32,080,69036,370,904



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KALTURA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars in thousands (except share and per share data)
(unaudited)

NOTE 13: REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION
Reportable segments
ASC 280, Segment Reporting, establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company's chief operating decision maker ("CODM") is its Chief Executive Officer. The Company's CODM does not regularly review asset information by segments and, therefore, the Company does not report asset information by segment.
The Company organizes its operations in two segments: Enterprise, Education and Technology and Media and Telecom. The Enterprise, Education and Technology segment represents products related to industry solutions for education customers, and media services (except for Media and Telecom customers). The Media and Telecom segment primarily represents TV solutions that are sold to media and telecom operators.
The measurement of the reportable operating segments is based on the same accounting principles applied in these financial statements, which includes certain corporate overhead allocations.
Three Months Ended September 30, 2024
Enterprise, Education and TechnologyMedia and TelecomTotal
Revenue$32,341 $11,954 $44,295 
Gross profit$24,539 $5,002 $29,541 
Operating expenses34,007 
Financial income, net(2,160)
Provision for income taxes1,304 
Net loss$3,610 

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KALTURA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars in thousands (except share and per share data)
(unaudited)
Three Months Ended September 30, 2023
Enterprise, Education and TechnologyMedia and TelecomTotal
Revenue$31,095 $12,447 $43,542 
Gross profit$22,762 $4,937 $27,699 
Operating expenses36,013 
Financial income, net(95)
Provision for income taxes2,507 
Net loss$10,726 

Nine Months Ended September 30, 2024
Enterprise, Education and TechnologyMedia and TelecomTotal
Revenue$95,746 $37,362 $133,108 
Gross profit$71,026 $15,799 $86,825 
Operating expenses107,131 
Financial income, net(1,672)
Provision for income taxes6,076 
Net loss$24,710 

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KALTURA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars in thousands (except share and per share data)
(unaudited)
Nine Months Ended September 30, 2023
Enterprise, Education and TechnologyMedia and TelecomTotal
Revenue$93,583 $37,111 $130,694 
Gross profit$68,625 $14,962 $83,587 
Operating expenses113,423 
Financial income, net(3,047)
Provision for income taxes7,510 
Net loss$34,299 

Geographical information
See Note 3 for disaggregated revenue by geographic region.

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KALTURA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars in thousands (except share and per share data)
(unaudited)
NOTE 14: LOAN
In January 2021, the Company refinanced all amounts outstanding under the then-existing loan agreements, terminated all outstanding commitments, and entered into a new credit agreement (the “Credit Agreement”) with an existing lender, which provides for a new senior secured term loan facility in the aggregate principal amount of $40,000 (the “Term Loan Facility”) and a new senior secured revolving credit facility in the aggregate principal amount of $10,000 (the “Revolving Credit Facility” and, together with the Term Loan Facility, the “Credit Facilities”), which subsequently has been amended according to the Company's needs and other developments.
In May 2023, the Company entered into an amendment (the "Fourth Amendment") to the then-existing Credit Agreement to replace the London Interbank Offered Rate (“LIBOR”) with the Secured Overnight Financing Rate (“SOFR”) as the benchmark rate under the Credit Agreement. Prior to the Fourth Amendment, borrowings under the Credit Agreement would bear interest, at the Company's election, at (a) the Eurodollar Rate (as defined in the Credit Agreement as in effect prior to the Fourth Amendment) plus a margin of 3.50% or (b) Alternative Base Rate (“ABR”) (as defined in the Credit Agreement) plus a margin of 2.50%.
In December 2023, the Company entered into a new amendment to the then-existing Credit Agreement (the “Fifth Amendment”), which provides for a new term loan facility in the aggregate principal amount of $35,000, while the commitments under the Revolving Credit Facility decreased to $25,000.
In July 2024, the Company entered into a new amendment to the then-existing Credit Agreement in connection with our Repurchase Program (as defined below), which updated the aggregate amount of permitted Restricted Payments (as defined in the Credit Agreement; which term includes, among others, repurchase of the Company’s outstanding common stock) and conditions for making such payments (see Note 15 for further information).
Following the effectiveness of the Fifth Amendment, borrowings under the Credit Facilities are subject to interest, determined as follows: (a) SOFR loans accrue interest at a rate per annum equal to Term SOFR (as defined in the Credit Agreement) plus 0.10% per annum plus a margin of 2.50% (the Adjusted Term SOFR (as defined in the Credit Agreement) is subject to a 1.00% floor), and (b) ABR loans accrue interest at a rate per annum equal to the ABR plus a margin of 1.50% (ABR is equal to the highest of (i) the prime rate and (ii) the Federal Funds Effective Rate plus 0.50%, subject to a 2.00% floor). As of September 30, 2024, the current rate of interest under the Credit Facilities was equal to a rate per annum of 7.23%, consisting of 4.96% (the 3-month SOFR rate as of September 30, 2024), 0.10% credit spread adjustment and the margin of 2.50%.
The Term Loan Facility is payable in consecutive quarterly installments on the last day of each fiscal quarter in an amount equal to (i) $438 for installments payable on December 31, 2023 (deferred to January 9, 2024) through September 30, 2024, (ii) $656 for installments payable on December 31, 2024 through September 30, 2025, and (iii) $1,313 for installments payable on and after December 31, 2025. The remaining unpaid balance on the Term Loan Facility is due and payable on December 21, 2026, together with accrued and unpaid interest on the principal amount to be paid to, but excluding, the payment date. Amounts outstanding under the Credit Facilities may be voluntarily prepaid at any time and from time to time, in whole or in part, without premium or penalty.

Under the terms of the Credit Facilities, the Company is obligated to maintain compliance with certain covenants as defined therein. As of September 30, 2024, the Company met these covenants.
The aggregate principal annual maturities according to the Credit Facilities agreements are as follows:
Year Ending December 31,
2024 (Remainder)$656 
20253,281 
202629,313 
$33,250 
The carrying amounts of the loans approximate their fair value.
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KALTURA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars in thousands (except share and per share data)
(unaudited)
NOTE 15: STOCKHOLDERS' EQUITY AND EQUITY INCENTIVE PLANS
Equity Incentive Plans
On January 1, 2024, the number of shares of common stock authorized for issuance under the 2021 Incentive Award Plan (the “2021 Plan”) automatically increased by 7,129,446 shares pursuant to the terms of the 2021 Plan.
Stock Options
A summary of the Company's stock option activity with respect to options granted under the 2021 Plan is as follows:

Number of Options
Weighted
Average exercise price
Weighted remaining contractual term (years)Aggregate
Intrinsic
Value








Outstanding as of January 1, 2024

22,933,058$4.99 6.29$5,378 


Granted

— $— 
Exercised

(813,110)$0.22 $842 
Forfeited

(4,771,369)$12.35 
Outstanding as of September 30, 2024

17,348,579$3.19 4.53$1,341 


Exercisable options at end of the period

17,110,629$3.17 4.50$1,341 

RSUs
The following table summarizes the RSU activity with respect to the 2021 Plan for the nine months ended September 30, 2024:


RSUs
Outstanding

Weighted Average
Grant Date Fair
Value per Share
Outstanding as of December 31, 2023

11,199,265$2.24
RSUs granted

13,616,089$1.45
RSUs vested

(8,002,903)$2.12
RSUs forfeited

(2,080,340)$1.96
Unvested and Outstanding as of September 30, 2024

14,732,111$1.63

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KALTURA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars in thousands (except share and per share data)
(unaudited)
Stock-Based Compensation Expense
The stock-based compensation expense by line item in the accompanying consolidated statement of operations is summarized as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Cost of revenue$259 $295 $807 $827 
Research and development1,268 1,162 3,597 3,439 
Sales and marketing684 776 2,183 2,347 
General and administrative3,424 5,137 14,478 15,343 
Total expenses$5,635 $7,370 $21,065 $21,956 

As of September 30, 2024, there were $20,126 of total unrecognized compensation costs related to non-vested stock-based compensation arrangements granted under the Company's equity incentive plans. These costs are expected to be recognized over a weighted-average period of 1.67 years.
Shares Reserved for Future Issuance
The Company has the following common stock reserved for future issuance under the 2021 Plan:
September 30, 2024
Outstanding options17,348,579 
Outstanding RSUs14,732,111 
Shares reserved under 2021 Plan3,886,203 
Total35,966,893 
Stock Repurchase Program
On June 11, 2024, the Company’s board of directors authorized a stock repurchase program of the Company’s outstanding common stock for up to $5,000 of the Company’s common stock (the "Repurchase Program"). 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. 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.
During the three months ended September 30, 2024, the Company repurchased 1,692,324 shares of common stock at an average price of $1.24 per share (excluding broker and transaction fees of $53). As of September 30, 2024, the Company had remaining authorization under the Repurchase Program to repurchase common stock up to an aggregate amount of $2,820, subject to satisfying required conditions under the Companies Law and Companies Regulations.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars in thousands (except share and per share data)
(unaudited)
NOTE 16: SELECTED STATEMENTS OF OPERATIONS DATA
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Financial income:
Interest income$845 $689 $2,453 $1,813 
Foreign currency translation adjustments, net2,144 410 1,647 4,402 
2,989 1,099 4,100 6,215 
Financial expenses:
Bank fees35 28 103 115 
Interest expense725 789 2,131 2,400 
Other69 187 194 653 
829 1,004 2,428 3,168 
Financial income, net$(2,160)$(95)$(1,672)$(3,047)

NOTE 17: ACCUMULATED OTHER COMPREHENSIVE INCOME
The following table summarizes the changes in accumulated other comprehensive income (loss) by component, net of tax (AOCI), during the nine months ended September 30, 2024 and 2023:
Net Unrealized Gains on Available-for-Sale Securities InstrumentsNet Unrealized Gains (Losses) on Derivatives Designated as Hedging InstrumentsTotal
Balance as of December 31, 2023;$49 $998 $1,047 
Other comprehensive income (loss) before reclassifications18 (66)(48)
Net realized gains reclassified from accumulated other comprehensive income— (702)(702)
Other comprehensive income (loss)18 (768)(750)
Balance as of September 30, 2024$67 $230 $297 

The following table summarizes the changes in accumulated other comprehensive loss (income) by component, net of tax, during the nine months ended September 30, 2023.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars in thousands (except share and per share data)
(unaudited)
Net Unrealized Gains (Losses) on Available-for-Sale Securities InstrumentsNet Unrealized Gains (Losses) on Derivatives Designated as Hedging InstrumentsTotal
Balance as of December 31, 2022;$(181)$(120)$(301)
Other comprehensive income (loss) before reclassifications155 (2,166)(2,011)
Net realized losses reclassified from accumulated other comprehensive income — 1,630 1,630 
Other comprehensive income (loss)155 (536)(381)
Balance as of September 30, 2023$(26)$(656)$(682)

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 22, 2024 (the "2023 10-K"). This discussion contains forward-looking statements based upon current plans, expectations and beliefs involving risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth in Part I, Item 1A, “Risk Factors” of our 2023 10-K and elsewhere in this Quarterly Report on Form 10-Q.
Overview
Our mission is to power any video experience, for any organization. Our Video Experience Cloud powers live, real-time, and on-demand video for webinars, events, virtual classrooms, and video sites. We also offer robust Application Programming Interfaces ("APIs") and industry solutions predominantly for education and media and telecom. Our Video Experience Cloud is used by leading brands across all industries, reaching millions of users, at home, at school and at work, for communication, collaboration, marketing, sales, customer care, learning, and entertainment experiences. With our flexible offerings, customers can experience the benefits of video across a wide range of use cases, while customizing their deployments to meet their individual, dynamic needs.
Our business was founded in 2006.
We generate revenue primarily through the sale of Software-as-a-Service (“SaaS”) and Platform-as-a-Service (“PaaS”) subscriptions, and additional revenue from term license subscriptions. We also generate revenue through the sale of professional services associated with the implementation of deployments for new and existing customers.
We organize our business into two reporting segments: (i) Enterprise, Education, and Technology (“EE&T”); and (ii) Media and Telecom (“M&T”). These segments share a common underlying platform consisting of our API-based architecture, as well as unified product development, operations, and administrative resources.
•Enterprise, Education & Technology: Includes revenue from all of our products, industry solutions for education customers, and Media Services (except for Media and Telecom customers), as well as associated professional services for those offerings. Subscription revenues are primarily generated on a per full-time equivalent basis for on-demand and live products and solutions, per host basis for real-time-conferencing products and solutions, and per participant basis for Events product (which intersects on-demand, live, and real-time-conferencing video). Contracts are generally 12 to 24 months in length. Billing is primarily done on an annual basis.
•Media & Telecom: Includes revenue from our TV Solution and Media Services for media and telecom customers, as well as associated professional services for those offerings. Revenues are generated on a per end-subscriber basis for telecom customers, and on a per video play basis for media customers. Contracts are generally two to five years in length. Billing is generally done on a quarterly or annual basis. It generally takes from six to twelve months to implement M&T offerings. The upfront resources required for implementation of our Media & Telecom solutions generally exceed those of our other offerings, resulting in a longer period from initial booking to go-live and a higher proportion of professional services revenue as a percentage of overall revenue. Additionally, a higher proportion of revenue comes from customers who choose to license our offerings through private cloud and on-premise deployments, which also impacts our gross margin.
Reflected below is a summary of reportable segment revenue and reportable segment gross profit for the three and nine months ended September 30, 2024 and 2023.
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Three Months Ended September 30, Nine Months Ended September 30,
2024202320242023
(in thousands)
Revenue
Enterprise, Education & Technology$32,341 $31,095 $95,746 $93,583 
Media & Telecom11,954 12,447 37,362 37,111 
Total Revenue$44,295 $43,542 $133,108 $130,694 
Gross Profit
Enterprise, Education & Technology$24,539 $22,762 $71,026 $68,625 
Media & Telecom5,002 4,937 15,799 14,962 
Total Gross Profit$29,541 $27,699 $86,825 $83,587 
We employ a "land and expand strategy" with the aim of having our customers increase their usage of our offerings and/or purchase additional offerings over time. Our Net Dollar Retention Rate (as defined below) measures our success in retaining and growing recurring revenue from our existing customers over a given period. For the three months ended September 30, 2024 and 2023, our Net Dollar Retention Rate was 101% and 101%, respectively. We grew our Annualized Recurring Revenue (as defined below) by 4% in three months ended September 30, 2024, compared to three months ended September 30, 2023, demonstrating our ability to land new customers with higher spending levels and increase revenue from our existing customers.
For any given year, a large majority of our revenue comes from existing customers, with whom we are in active dialogue and tend to have visibility into their expected usage of our offerings.
We focus our selling efforts on large organizations and sell our solutions primarily through direct sales teams and account teams. In addition, we are continuing to expand our ability to serve smaller customers with our self-serve offerings, as well as focusing on inside sales for the SMB segment.
Key Factors Affecting Our Performance
Expansion of our Platform
We believe our platform is ideally suited for expansion across solutions, industries, and use cases. For example, in 2020, we entered the real-time conferencing market with the introduction of our Virtual and Hybrid Events, Webinars, and Online Learning products, focusing on learning, training, events, and marketing. Since then, we expanded the capabilities of our Virtual & Hybrid Events product to support a broader range of event types and use cases, fitted them to also address low-touch and self-serve sales and introduced a set of GenAI powered capabilities that increase the productivity in creating content and setting up events and also foster user engagement. We believe these products present a significant long-term opportunity, and we intend to harness our growing presence with them. Additionally, we will continue to invest in new video products for training, communication and collaboration, sales, marketing, and customer care, as we extend our platform into more industries.
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Acquiring New Customers
We are focused on continuing to grow the number of customers that use our solutions. Our focus remains on bringing in new customers from enterprise accounts, as well as expanding our small and medium enterprise ("SME") offerings that can be sold by inside-sales teams. We also continue to provide our self-serve offering that can be purchased completely online, which also serves as a demand generation engine for our low-touch and enterprise offerings. We believe this will enable us to efficiently acquire smaller customers across all industries over time – expanding beyond enterprises into SMEs, beyond universities into K-12 schools, beyond tier 1 media and telecom companies to tier 2 and 3 media and telecom companies, and beyond providing Media Services to large technology companies to also addressing smaller technology firms and startups.
Increasing Revenue from Existing Customers
We are focused on increasing sales within our existing customer base through increased usage of our platform and the cross-selling of additional products and solutions. For the three months ended September 30, 2024, our Net Dollar Retention Rate was 101%. In order for us to increase revenue within our customer base, we will need to maintain engineering-level customer support and continue to introduce new products and features as well as innovative new use cases that are tailored to our customers' needs.
Continued Investment in Growth
Although we have invested significantly in our business to date, we believe that we still have a significant market opportunity ahead of us. We intend to continue to make investments to support the growth and expansion of our business and to increase revenue. We believe there is a significant opportunity to continue our growth. We expect that our cost of revenue and operating expenses will fluctuate over time.

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Key Financial and Operating Metrics
We measure our business using both financial and operating metrics. We use these metrics to assess the progress of our business, make decisions on where to allocate capital, time, and technology investments, and assess the near-term and long-term performance of our business. The key financial and operating metrics we use are:
Three Months Ended September 30,
20242023
(in thousands, except percentages)
Annualized Recurring Revenue$168,879 $163,069 
Net Dollar Retention Rate101 %101 %
Remaining Performance Obligations$187,846 $163,995 
Annualized Recurring Revenue
We use Annualized Recurring Revenue ("ARR") as a measure of our revenue trend and an indicator of our future revenue opportunity from existing recurring customer contracts. We calculate ARR by annualizing our recurring revenue for the most recently completed fiscal quarter. Recurring revenues are generated from SaaS and PaaS subscriptions, as well as term licenses for software installed on the customer’s premises (“On-Prem”). For the SaaS and PaaS components, we calculate ARR by annualizing the actual recurring revenue recognized for the latest fiscal quarter. For the On-Prem components for which revenue recognition is not ratable across the license term, we calculate ARR for each contract by dividing the total contract value (excluding professional services) as of the last day of the specified period by the number of days in the contract term and then multiplying by 365. Recurring revenue excludes revenue from one-time professional services and setup fees. ARR is not adjusted for the impact of any known or projected future customer cancellations, upgrades or downgrades, or price increases or decreases.
The amount of actual revenue that we recognize over any 12-month period is likely to differ from ARR at the beginning of that period, sometimes significantly. This may occur due to new bookings, cancellations, upgrades or downgrades, pending renewals, professional services revenue, foreign exchange rate fluctuations and acquisitions or divestitures. ARR should be viewed independently of revenue as it is an operating metric and is not intended to be a replacement or forecast of revenue. Our calculation of ARR may differ from similarly titled metrics presented by other companies.
Net Dollar Retention Rate
Our Net Dollar Retention Rate, which we use to measure our success in retaining and growing recurring revenue from our existing customers, compares our recognized recurring revenue from a set of customers across comparable periods. We calculate our Net Dollar Retention Rate for a given period as the recognized recurring revenue from the latest reported fiscal quarter from the set of customers whose revenue existed in the reported fiscal quarter from the prior year (the numerator), divided by recognized recurring revenue from such customers for the same fiscal quarter in the prior year (denominator). For annual periods, we report Net Dollar Retention Rate as the arithmetic average of the Net Dollar Retention Rate for all fiscal quarters included in the period.
We consider subdivisions of the same legal entity (for example, divisions of a parent company or separate campuses that are part of the same state university system) as well as Value-add Resellers (“VARs”) (meaning resellers that directly manage the relationship with the customer) and the customers they manage, to be a single customer for purposes of calculating our Net Dollar Retention Rate. Our calculation of Net Dollar Retention Rate for any fiscal period includes the positive recognized recurring revenue impacts of selling new services to existing customers and the negative recognized recurring revenue impacts of contraction and attrition among this set of customers. Our Net Dollar Retention Rate may fluctuate as a result of a number of factors, including the growing level of our revenue base, the level of penetration within our customer base, expansion of products and features, and our ability to retain our customers. Our calculation of Net Dollar Retention Rate may differ from similarly titled metrics presented by other companies.
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Remaining Performance Obligations
Remaining Performance Obligations represents the amount of contracted future revenue that has not yet been delivered, including both subscription and professional services revenues. Remaining Performance Obligations consists of both deferred revenue and contracted non-cancelable amounts that will be invoiced and recognized in future periods. As of September 30, 2024, our Remaining Performance Obligations was $187.8 million, which consists of both billed consideration in the amount of $63.3 million and unbilled consideration in the amount of $124.6 million that we expect to invoice and recognize in future periods.
We expect to recognize 59% of our Remaining Performance Obligations as revenue over the next 12 months and the remainder thereafter, in each case, in accordance with our revenue recognition policy.
Non-GAAP Financial Measures
In addition to our results determined in accordance with GAAP, we believe that EBITDA and Adjusted EBITDA, non-GAAP financial measures, are useful in evaluating the performance of our business.
We define EBITDA as net profit (loss) before financial expenses (income), net, provision for income taxes and depreciation and amortization expenses. Adjusted EBITDA is defined as EBITDA (as defined above), 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
EBITDA and Adjusted EBITDA are supplemental measure of our performance, are not defined by or presented in accordance with GAAP, and should not be considered in isolation or as an alternative to net profit (loss) or any other performance measure prepared in accordance with GAAP. EBITDA and Adjusted EBITDA are presented because we believe that they provide useful supplemental information to investors and analysts regarding our operating performance and are frequently used by these parties in evaluating companies in our industry. By presenting EBITDA and Adjusted EBITDA, we provide a basis for comparison of our business operations between periods by excluding items that we do not believe are indicative of our core operating performance. We believe that investors’ understanding of our performance is enhanced by including these non-GAAP financial measures as a reasonable basis for comparing our ongoing results of operations. Additionally, our management uses Adjusted EBITDA as a supplemental measure of our performance because it assists us in comparing the operating performance of our business on a consistent basis between periods, as described above.
Although we use EBITDA and Adjusted EBITDA, as described above, EBITDA and Adjusted EBITDA, have significant limitations as analytical tools. Some of these limitations include:
•such measures do not reflect our cash expenditures, or future requirements for capital expenditures or contractual commitments;
•such measures do not reflect changes in, or cash requirements for, our working capital needs;
•such measures do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments on our debt;
•such measures do not reflect our tax expense or the cash requirements to pay our taxes;
•although depreciation and amortization expense and non-cash stock-based compensation expense are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future and such measures do not reflect any cash requirements for such replacements; and
•other companies in our industry may calculate such measures differently than we do, thereby further limiting their usefulness as comparative measures.
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Due to these limitations, EBITDA and Adjusted EBITDA should not be considered as measures of discretionary cash available to us to invest in the growth of our business. We compensate for these limitations by relying primarily on our GAAP results and using these non-GAAP measures only supplementally. Adjusted EBITDA includes an adjustment for non-cash stock-based compensation expenses. It is reasonable to expect that this item will occur in future periods. However, we believe this adjustment is appropriate because the amount recognized can vary significantly from period to period, does not directly relate to the ongoing operations of our business, and complicates comparisons of our internal operating results between periods and with the operating results of other companies over time. Each of the normal recurring adjustments and other adjustments described above help to provide management with a measure of our core operating performance over time by removing items that are not related to day-to-day operations. Nevertheless, because of the limitations described above, management does not view EBITDA, or Adjusted EBITDA in isolation and also uses other measures, such as revenue, operating loss, and net loss, to measure operating performance.
The following table reconciles EBITDA and Adjusted EBITDA to the most directly comparable GAAP financial performance measure, which is net loss:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
(in thousands)
Net loss $(3,610)$(10,726)$(24,710)$(34,299)
Financial income, net (a)
(2,160)(95)(1,672)(3,047)
Provision for income taxes 1,304 2,507 6,076 7,510 
Depreciation and amortization 1,254 1,248 3,834 3,409 
EBITDA (3,212)(7,066)(16,472)(26,427)
Non-cash stock-based compensation expense 5,635 7,370 21,065 21,956 
Facility exit and transition costs (b)
— — — 154 
Restructuring (c)
— 5 — 973 
War related costs (d)
— — 22 — 
Adjusted EBITDA $2,423 $309 $4,615 $(3,344)

(a)The three months ended September 30, 2024 and 2023, and the nine months ended September 30, 2024 and 2023, include $725, $789, $2,131 and $2,400 respectively, of interest expenses.
(b)Facility exit and transition costs for the nine months ended September 30, 2023, include losses from sale of fixed assets and other costs associated with moving to our temporary office in Israel.
(c)The three and nine months ended September 30, 2023 include one-time employee termination benefits incurred in connection with the 2023 Reorganization Plan and the 2022 Restructuring Plan.
(d)The nine months ended September 30, 2024 include costs related to conflicts in Israel, attributable to temporary relocation of key employees from Israel for business continuity purposes, purchase of emergency equipment for key employees for business continuity purposes, and charitable donation to communities directly impacted by the war.

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Components of Our Results of Operations
Revenue
Subscriptions
Our revenues are mainly comprised of revenue from SaaS and PaaS subscriptions. SaaS and PaaS subscriptions provide access to our Video Experience Cloud which powers all types of video experiences: live, real-time, and on-demand video. We provide access to our platform either as a cloud-based service, which represent most of our SaaS and PaaS subscriptions, or, less commonly, as a term license to software installed on the customer's premises. Revenue from SaaS and PaaS subscriptions is recognized ratably over the time of the subscription, beginning from the date on which the customer is granted access to our Video Experience Cloud. Revenue from the sale of a term license is recognized at a point in time in which the license is delivered to the customer. Revenue from post-contract services ("PCS") included in On-Prem deals is recognized ratably over the period of the PCS.
Professional Services
Our revenue also includes professional services, which consist of consulting, integration and customization services, technical solution services and training related to our video experience. In some of our arrangements, professional services are accounted for as a separate performance obligation, and revenue is recognized upon rendering of the service.
In some of our SaaS and PaaS subscriptions, we determined that the professional services are solely set up activities that do not transfer goods or services to the customer and therefore are not accounted for as a separate performance obligation and are recognized ratably over the time of the subscription.
Cost of Revenue
Cost of subscription revenue consists primarily of employee-related costs including payroll, benefits and stock-based compensation expense for operations and customer support teams, costs of cloud hosting providers and other third-party service providers, amortization of capitalized software development costs and acquired technology and allocated overhead costs.
Cost of professional services consists primarily of personnel costs of our professional services organization, including payroll, benefits, and stock-based compensation expense, allocated overhead costs and other third-party service providers.
The costs associated with providing professional services are significantly higher as a percentage of related revenue than the costs associated with delivering our subscriptions due to the labor costs of providing professional services. As such, the implementation and professional services costs relating to an arrangement with a new customer are more significant than the costs to renew an existing customer’s license and support arrangement.
For the three months ended September 30, 2024 and 2023, and for the nine months ended September 30, 2024 and 2023, our cost of revenue was $14,754, $15,843, $46,283 and $47,107, respectively.
Gross Margins
Gross margins have been, and will continue to be, affected by a variety of factors, including the average sales price of our products and services, volume growth, the mix of revenue between SaaS and PaaS subscriptions, software licenses, maintenance and support and professional services, onboarding of new media and telecom customers, hosting of major virtual events and changes in cloud infrastructure and personnel costs.
In particular, the gross margins in our M&T segment have been negatively impacted due to the resources required for implementation of our TV Solution and Media Services for TV experiences, which generally exceed those of our other offerings, resulting in a longer period from initial booking to go-live and a higher proportion of professional services revenue as a percentage of overall revenue.
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Additionally, a higher proportion of revenue comes from customers who choose to license our offerings through private cloud and on-premise deployments, which also impacts our gross margin. In the long-term, we expect the margins for this segment to improve due to the following: expected increase in the ratio of subscription revenue to professional services with scale, improved efficiencies of both production and professional services costs, and an increase in the proportion of revenues from media customers, which generally entail simpler deployments compared to telecom customers. However, in the near and medium term, our gross margins in our M&T segment are expected to vary from period to period based on the onboarding of new customers, as well as the timing and aggregate usage of our solutions by such customers.
For the three and nine months ended September 30, 2024 and 2023, gross margins improved slightly overall, driven by strong subscription performance, particularly in the EE&T segment.
For the three months ended September 30, 2024 and 2023, our gross margins were 67% (75% for subscriptions and (95)% for professional services) and 64% (73% for subscriptions and (80)% for professional services), respectively. For the nine months ended September 30, 2024 and 2023, our gross margins were 65% (74% for subscriptions and (54)% for professional services) and 64% (73% for subscriptions and (60)% for professional services), respectively.
For our EE&T segment, gross margins for the three months ended September 30, 2024 and 2023, were 76% (82% for subscription and (154)% for professional services), and 73% (79% for subscription and (105)% for professional services), respectively. For the nine months ended September 30, 2024 and 2023, our gross margins were 74% (81% for subscriptions and (78)% for professional services) and 73% (79% for subscriptions and (73)% for professional services), respectively.
For our M&T segment, gross margins for the three months ended September 30, 2024 and 2023 were 42% (55% for subscriptions and (59)% for professional services) and 40% (55% for subscriptions and (63)% for professional services), respectively. For the nine months ended September 30, 2024 and 2023, our gross margins were 42% (54% for subscription and (35)% for professional services) and 40% (56% for subscription and (52)% for professional services), respectively.
Research and Development
Our research and development expenses consist primarily of costs incurred for personnel-related expenses for our technical staff, including salaries and other direct personnel-related costs. Additional expenses include consulting and professional fees for third-party development resources and software subscriptions. We expect our research and development expenses generally to remain constant as a percentage of revenue for the near and medium-term, as we continue to dedicate substantial resources to develop, improve, and expand the functionality of our solutions. Subsequent costs incurred for the development of future upgrades and enhancements, which are expected to result in additional functionality, may qualify for capitalization under internal-use software and therefore may cause research and development expenses to fluctuate.
Sales and Marketing Expenses
Our sales and marketing expenses consist primarily of personnel related costs for our sales and marketing functions, including salaries and other direct personnel-related costs, such as sales commissions. Additional expenses include marketing program costs and amortization of acquired customer relationships intangible assets. We expect our sales and marketing expenses to be relatively stable on an absolute dollar basis.
General and Administrative Expenses
Our general and administrative expenses consist primarily of personnel-related costs for our executive, finance, human resources, information technology, and legal functions, including salaries and other direct personnel-related costs. We expect our general and administrative expenses to be relatively stable both on an absolute dollar basis and as a percentage of revenue for the near and medium-term.
We allocate overhead costs such as rent, utilities, and supplies to all departments based on relative headcount to each operating expense category.
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Financial Income, Net
Financial income, net consists of interest expense accrued or paid on our indebtedness, net of interest income earned on our cash balances and marketable securities. Financial income, net also includes foreign exchange gains and losses and bank fees.
We expect interest expenses to vary each reporting period depending on the amount of outstanding indebtedness and prevailing interest rates.
We expect interest income will vary in each reporting period depending on our average cash and marketable securities balances during the period and applicable interest rates.
Provision for Income Taxes
We are subject to taxes in the United States as well as other tax jurisdictions or countries in which we conduct business. Earnings from our non-U.S. activities are subject to local country income tax and may be subject to current U.S. income tax. Due to cumulative losses, we maintain a valuation allowance against our deferred tax assets. We consider all available evidence, both positive and negative, in assessing the extent to which a valuation allowance should be applied against our deferred tax assets. Realization of our U.S. deferred tax assets depends upon future earnings, the timing and amount of which are uncertain. Our effective tax rate is affected by tax rates in foreign jurisdictions and the relative amounts of income we earn in those jurisdictions, as well as non-deductible expenses, such as share-based compensation, and changes in our valuation allowance.
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Results of Operations
The following tables summarize key components of our results of operations for the periods presented. The period-to-period comparisons of our historical results are not necessarily indicative of the results that may be expected in the future.
Three Months Ended September 30,Period-over-Period ChangeNine Months Ended September 30,Period-over-Period Change
20242023DollarPercentage20242023DollarPercentage
(in thousands, except percentages)(in thousands, except percentages)
Revenue:
Enterprise, Education & Technology $32,341 $31,095 $1,246 4 %$95,746 $93,583 $2,163 2 %
Media & Telecom 11,954 12,447 (493)(4)%37,362 37,111 251 1 %
Total revenue 44,295 43,542 753 2 %133,108 130,694 2,414 2 %
Cost of revenue 14,754 15,843 (1,089)(7)%46,283 47,107 (824)(2)%
Total gross profit 29,541 27,699 1,842 7 %86,825 83,587 3,238 4 %
Operating expenses:
Research and development expenses12,427 12,558 (131)(1)%36,460 39,663 (3,203)(8)%
Sales and marketing expenses 11,830 11,683 147 1 %35,421 36,489 (1,068)(3)%
General and administrative expenses 9,750 11,767 (2,017)(17)%35,250 36,298 (1,048)(3)%
Restructuring— 5 (5)NM— 973 (973)NM
Total operating expenses 34,007 36,013 (2,006)(6)%107,131 113,423 (6,292)(6)%
Loss from operations 4,466 8,314 (3,848)(46)%20,306 29,836 (9,530)(32)%
Financial income, net (2,160)(95)(2,065)2174 %(1,672)(3,047)1,375 (45)%
Loss before provision for income taxes 2,306 8,219 (5,913)(72)%18,634 26,789 (8,155)(30)%
Provision for income taxes 1,304 2,507 (1,203)(48)%6,076 7,510 (1,434)(19)%
Net loss $3,610 $10,726 $(7,116)(66)%$24,710 $34,299 $(9,589)(28)%

Segments
We manage and report operating results through two reportable segments.
•Enterprise, Education & Technology (73% and 71% of revenue for the three months ended September 30, 2024 and 2023, respectively, and 72% for each of the nine months ended September 30, 2024 and 2023): Our EE&T segment represents revenues from all of our products, industry solutions for education customers, and Media Services (except for M&T customers), as well as associated professional services for those offerings.
•Media & Telecom (27% and 29% of revenue for the three months ended September 30, 2024 and 2023, respectively, and 28% for each of the nine months ended September 30, 2024 and 2023): Our M&T segment primarily represents revenues from our TV Solution and Media Services sold to media and telecom customers.
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Comparison of the three months ended September 30, 2024 and 2023
Enterprise, Education & Technology
The following table presents our EE&T segment revenue and gross profit (loss) for the periods indicated:
Three Months Ended September 30,Period-over-Period Change
20242023DollarPercentage
(in thousands, except percentages)
Enterprise, Education & Technology revenue:
    Subscription revenue$31,495 $30,043 $1,452 5 %
    Professional services revenue846 1,052 (206)(20)%
Total Enterprise, Education & Technology revenue$32,341 $31,095 $1,246 4 %
Enterprise, Education & Technology gross profit (loss):
    Subscription gross profit$25,841 $23,866 $1,975 8 %
    Professional services gross loss(1,302)(1,104)(198)18 %
Total Enterprise, Education & Technology gross profit$24,539 $22,762 $1,777 8 %
Enterprise, Education & Technology Revenue
Total EE&T revenue increased by $1.2 million, or 4%, to $32.3 million for the three months ended September 30, 2024, from $31.1 million for the three months ended September 30, 2023. The increase is mainly attributable to a $1.0 million increase in revenue generated from new customers, and $0.2 million increase in revenue from existing customers.
EE&T subscription revenue increased by $1.5 million, or 5%, to $31.5 million for the three months ended September 30, 2024, from $30.0 million for the three months ended September 30, 2023.
EE&T professional services revenue decreased by $0.2 million, or 20%, to $0.8 million for the three months ended September 30, 2024, from $1.1 million for the three months ended September 30, 2023.
Enterprise, Education & Technology Gross Profit
EE&T gross profit increased by $1.8 million, or 8%, to $24.5 million for the three months ended September 30, 2024, from $22.8 million for the three months ended September 30, 2023. This increase was mainly due to a $1.2 million increase in revenue and reduction in production costs, which is a result of improved efficiency.
EE&T subscription gross profit increased by $2.0 million, or 8%, to $25.8 million for the three months ended September 30, 2024, from $23.9 million for the three months ended September 30, 2023.
EE&T professional services gross loss increased by $0.2 million, or 18%, to a gross loss of $1.3 million for the three months ended September 30, 2024, from a gross loss of $1.1 million for the three months ended September 30, 2023. The Increase was primarily due to a reduction in professional services revenue.



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Media & Telecom
The following table presents our M&T segment revenue and gross profit for the periods indicated:
Three Months Ended September 30,Period-over-Period Change
20242023DollarPercentage
(in thousands, except percentages)
Media & Telecom revenue:
    Subscription revenue$10,590 $10,804 $(214)(2)%
    Professional services revenue1,364 1,643 (279)(17)%
Total Media & Telecom revenue$11,954 $12,447 $(493)(4)%
Media & Telecom gross profit:
    Subscription gross profit $5,807 $5,977 $(170)(3)%
    Professional services gross loss(805)(1,040)235 23 %
Total Media & Telecom gross profit$5,002 $4,937 $65 1 %
Media & Telecom Revenue
M&T revenue decreased by $0.5 million, or 4%, to $12.0 million for the three months ended September 30, 2024, from $12.4 million for the three months ended September 30, 2023. The decrease is mainly attributable to a $0.5 million decrease in revenue from existing customers.
M&T subscription revenue decreased by $0.2 million, or 2%, to $10.6 million for the three months ended September 30, 2024, from $10.8 million for the three months ended September 30, 2023.
M&T professional services revenue decreased by $0.3 million, or 17%, to $1.4 million for the three months ended September 30, 2024, from $1.6 million for the three months ended September 30, 2023.
Media & Telecom Gross Profit
M&T gross profit increased by $0.1 million, or 1%, to $5.0 million for the three months ended September 30, 2024, from $4.9 million for the three months ended September 30, 2023.
M&T subscription gross profit decreased by $0.2 million, or 3%, to $5.8 million for the three months ended September 30, 2024, from $6.0 million for the three months ended September 30, 2023.
M&T professional services gross loss decreased by $0.2 million, or 23%, to a gross loss of $0.8 million for the three months ended September 30, 2024, from a gross loss of $1.0 million for the three months ended September 30, 2023.
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Operating Expenses
Research and Development expenses
Three Months Ended September 30,Period-over-Period Change
20242023DollarPercentage
(in thousands, except percentages)
Employee compensation $8,650 $8,440 $210 2 %
Subcontractors and consultants 1,753 1,832 (79)-4 %
IT related1,194 1,406 (212)-15 %
Other 830 880 (50)-6 %
Total research and development expenses $12,427 $12,558 $(131)-1 %
Research and development expenses decreased by $0.1 million, or 1%, to $12.4 million for the three months ended September 30, 2024, from $12.6 million for the three months ended September 30, 2023. The decrease is primarily due to lower IT related expenses.
Sales and Marketing expenses
Three Months Ended September 30,Period-over-Period Change
20242023DollarPercentage
(in thousands, except percentages)
Employee compensation & commission $9,729 $9,380 $349 4 %
Marketing expenses 832 947 (115)(12)%
Travel and entertainment 246 391 (145)(37)%
Other 1,023 965 58 6 %
Total sales and marketing expenses $11,830 $11,683 $147 1 %
Sales and marketing expenses increased by $0.1 million, or 1%, to $11.8 million for the three months ended September 30, 2024, from $11.7 million for the three months ended September 30, 2023. The increase was primarily due to a $0.3 million increase in compensation, offset by a $0.1 million decrease in marketing related expenses mainly due to more efficient advertising expense management and lower travel expenses.
General and Administrative expenses
Three Months Ended September 30,Period-over-Period Change
20242023DollarPercentage
(in thousands, except percentages)
Employee compensation $6,876 $8,677 $(1,801)(21)%
Professional fees and insurance 1,115 980 135 14 %
Subcontractors and consultants 337 225 112 50 %
Travel and entertainment 195 222 (27)(12)%
Other 1,227 1,663 (436)(26)%
Total general and administrative expenses 9,750 11,767 (2,017)(17)%

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General and administrative expenses decreased by $2.0 million, or 17%, to $9.8 million for the three months ended September 30, 2024, from $11.8 million for the three months ended September 30, 2023. The decrease was primarily due to a $1.8 million decrease in compensation costs. The majority of this decrease is attributed to lower stock-based compensation expenses related to the cancellation of market-based equity awards previously granted to the Chief Executive Officer. These expenses were recognized for the three months ended September 30, 2023, but were accelerated in the three months ended June 30, 2024. Additionally, the decrease is also due to lower compensation costs as a result of Executive departures in the first quarter of 2024.
Financial Income, net
Financial Income, net increased by $2.1 million, to $2.2 million for the three months ended September 30, 2024, from $0.1 million for the three months ended September 30, 2023. The increase was primarily due to $1.7 million related to exchange rate differences, along with an additional $0.2 million interest income associated with our investments.
Provision for Income Taxes
Provision for income taxes decreased by $1.2 million, or 48%, to $1.3 million for the three months ended September 30, 2024, from $2.5 million for the three months ended September 30, 2023, primarily due to decreased tax liability related to income generated by our subsidiaries organized under the laws of Israel and UK.
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Comparison of the nine months ended September 30, 2024 and 2023
Enterprise, Education & Technology
The following table presents our EE&T segment revenue and gross profit (loss) for the periods indicated:
Nine Months Ended September 30,Period-over-Period Change
20242023DollarPercentage
(in thousands, except percentages)
Enterprise, Education & Technology revenue:
    Subscription revenue$91,920 $90,175 $1,745 2 %
    Professional services revenue3,826 3,408 418 12 %
Total Enterprise, Education & Technology revenue$95,746 $93,583 $2,163 2 %
Enterprise, Education & Technology gross profit:
    Subscription gross profit$74,001 $71,105 $2,896 4 %
    Professional services gross profit (loss)(2,975)(2,480)(495)20 %
Total Enterprise, Education & Technology gross profit$71,026 $68,625 $2,401 3 %
Enterprise, Education & Technology Revenue
Total EE&T revenue increased by $2.2 million, or 2%, to $95.7 million for the nine months ended September 30, 2024, from $93.6 million for the nine months ended September 30, 2023. The increase is mainly attributable to a $2.5 million increase in revenue from new customers partially offset by a $0.3 million decrease in revenue from existing customers.
EE&T subscription revenue increased by $1.7 million, or 2%, to $91.9 million for the nine months ended September 30, 2024, from $90.2 million for the nine months ended September 30, 2023.
EE&T professional services revenue increased by $0.4 million, or 12%, to $3.8 million for the nine months ended September 30, 2024 from $3.4 million for the nine months ended September 30, 2023.

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Enterprise, Education & Technology Gross Profit
EE&T gross profit increased by $2.4 million, or 3%, to $71.0 million for the nine months ended September 30, 2024, from $68.6 million for the nine months ended September 30, 2023. This increase was mainly due to a $2.2 million increase in revenue.
EE&T subscription gross profit increased by $2.9 million, or 4%, to $74.0 million for the nine months ended September 30, 2024, from $71.1 million for the nine months ended September 30, 2023.
EE&T professional services gross loss increased by $0.5 million, or 20%, to a gross loss of $3.0 million for the nine months ended September 30, 2024, from a gross loss of $2.5 million for the nine months ended September 30, 2023.
Media & Telecom
The following table presents our M&T segment revenue and gross profit for the periods indicated:
Nine Months Ended September 30,Period-over-Period Change
20242023DollarPercentage
(in thousands, except percentages)
Media & Telecom revenue:
    Subscription revenue$32,347 $31,787 $560 2 %
    Professional services revenue5,015 5,324 (309)(6)%
Total Media & Telecom revenue$37,362 $37,111 $251 1 %
Media & Telecom gross profit:
    Subscription gross profit$17,567 $17,751 $(184)(1)%
    Professional services gross loss(1,768)(2,789)1,021 37 %
Total Media & Telecom gross profit$15,799 $14,962 $837 6 %

Media & Telecom Revenue
M&T revenue increased by $0.3 million, or 1%, to $37.4 million for the nine months ended September 30, 2024, from $37.1 million for the nine months ended September 30, 2023. The increase is mainly attributable to revenue from existing customers.
M&T subscription revenue increased by $0.6 million, or 2%, to $32.3 million for the nine months ended September 30, 2024, from $31.8 million for the nine months ended September 30, 2023.
M&T professional services revenue decreased by $0.3 million, or 6%, to $5.0 million for the nine months ended September 30, 2024, from $5.3 million for the nine months ended September 30, 2023.
Media & Telecom Gross Profit
M&T gross profit increased by $0.8 million, or 6%, to $15.8 million for the nine months ended September 30, 2024, from $15.0 million for the nine months ended September 30, 2023. This increase was mainly due to increase in revenue and improved operational efficiencies.
M&T subscription gross profit decreased by $0.2 million, or 1%, to $17.6 million for the nine months ended September 30, 2024, from $17.8 million for the nine months ended September 30, 2023.
M&T professional services gross loss decreased by $1.0 million, or 37%, to $1.8 million for the nine months ended September 30, 2024, from $2.8 million for the nine months ended September 30, 2023.
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Operating Expenses
Research and Development expenses
Nine Months Ended September 30,Period-over-Period Change
20242023DollarPercentage
(in thousands, except percentages)
Employee compensation $25,205 $27,791 — $(2,586)(9)%
Subcontractors and consultants 5,211 4,815 396 8 %
IT related3,703 4,519 (816)(18)%
Other 2,341 2,538 (197)(8)%
Total research and development expenses $36,460 $39,663 $(3,203)(8)%
Research and development expenses decreased by $3.2 million, or 8%, to $36.5 million for the nine months ended September 30, 2024, from $39.7 million for the nine months ended September 30, 2023. The decrease was primarily due to a $2.6 million decrease in compensation expenses, which mainly related to lower headcount and to a $0.8 million decrease in IT related expenses.
Sales and Marketing expenses
Nine Months Ended September 30,Period-over-Period Change
20242023DollarPercentage
(in thousands, except percentages)
Employee compensation & commission $28,818 $29,515 $(697)(2)%
Marketing expenses 2,570 3,007 (437)(15)%
Travel and entertainment 818 1,226 (408)(33)%
Other 3,215 2,741 474 17 %
Total sales and marketing expenses $35,421 $36,489 $(1,068)(3)%
Sales and marketing expenses decreased by $1.1 million, or 3%, to $35.4 million for the nine months ended September 30, 2024, from $36.5 million for the nine months ended September 30, 2023. The decrease was primarily due to a $0.7 million decrease in compensation which mainly related to lower headcount, and a $0.4 million decrease in marketing related expenses.
General and Administrative expenses
Nine Months Ended September 30,Period-over-Period Change
20242023DollarPercentage
(in thousands, except percentages)
Employee compensation $25,217 $26,590 $(1,373)(5)%
Professional fees and insurance 3,249 3,558 (309)(9)%
Subcontractors and consultants 918 847 71 8 %
Travel and entertainment 590 649 (59)(9)%
Unused cloud hosting commitment expense1,312 — 1,312 NM
Other 3,964 4,654 (690)(15)%
Total general and administrative expenses $35,250 $36,298 $(1,048)(3)%
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General and administrative expenses decreased by $1.0 million, or 3%, to $35.3 million for the nine months ended September 30, 2024, from $36.3 million for the nine months ended September 30, 2023. The decrease was primarily due to a $1.4 million decrease in compensation costs related mainly to cancellation of market based equity awards previously granted to the Chief Executive Officer and Executive departures in the firs quarter of 2024. a $0.3 million decrease in professional fees and insurance mainly due to lower insurance costs and a $0.7 million decrease in other expenses related mainly to welfare and training expenses, partially offset by $1.3 million unused one-time expense associated with terminating commitments with a cloud hosting service provider.
Financial Income, net
Financial income, net decreased by $1.4 million to $1.7 million for the nine months ended September 30, 2024, from $3.0 million for the nine months ended September 30, 2023. The decrease was primarily due to a decrease of $2.8 million related to exchange rate differences partially offset by $0.9 million of higher interest income associated with our investments.
Provision for Income Taxes
Provision for income taxes decreased by $1.4 million, or 19%, to $6.1 million for the nine months ended September 30, 2024, from $7.5 million for the nine months ended September 30, 2023 primarily due to decreased tax liability related to income generated by our subsidiaries organized under the laws of Israel and UK.
Liquidity and Capital Resources
Overview
Since our inception, we have financed our operations primarily through net cash provided by operating activities, equity issuances, and borrowings under our long-term debt arrangements. Our primary requirements for liquidity and capital are to finance working capital, capital expenditures and general corporate purposes. Our principal sources of liquidity are expected to be our cash on hand and borrowings available under our Revolving Credit Facility. As of September 30, 2024, we had no balance outstanding under the Revolving Credit Facility and the total revolving commitment of $25.0 million is available for future borrowings.
We believe that our net cash provided by operating activities, cash on hand, and availability under our Revolving Credit Facility will be adequate to meet our operating, investing, and financing needs for at least the next 12 months. Our future capital requirements will depend on many factors, including our revenue growth, the timing and extent of investments to support such growth, the expansion of sales and marketing activities, increases in general and administrative costs and many other factors as described under Part I, Item 1A. “Risk Factors” of our 2023 10-K, and “—Key Factors Affecting Our Performance.” above. In addition, our cash and cash equivalents are maintained at financial institutions in amounts that exceed federally insured limits. In the event of failure of any of the financial institutions where we maintain our cash and cash equivalents, there can be no assurance that we will be able to access uninsured funds in a timely manner or at all.
If necessary, we may borrow funds under our Revolving Credit Facility to finance our liquidity requirements, subject to customary borrowing conditions. To the extent additional funds are necessary to meet our long-term liquidity needs as we continue to execute our business strategy, we anticipate that they will be obtained through the incurrence of additional indebtedness, additional equity financings or a combination of these potential sources of funds; however, such financing may not be available on favorable terms, or at all. In particular, the current global economic volatility, rising inflation and interest rates, price increases, decrease in our customers' spend or available budget, and the ongoing conflict between Russia and Ukraine, have resulted in, and may continue to result in, significant disruption of global financial markets, reducing our ability to access capital. Our ability to access capital may also be impacted by political, economic, and military conditions in Israel, including the current security situation or any escalation of conflicts with Israel, and in other regions in which we operate, or changes in the business environment in those regions. If we are unable to raise additional funds when desired, our business, financial condition and results of operations could be adversely affected.



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Repurchase Program
On June 11, 2024, the Company’s board of directors authorized a stock repurchase program of the Company’s outstanding common stock for up to $5.0 million of the Company’s common stock (the "Repurchase Program"). 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. 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.
During the nine months ended September 30, 2024, the Company repurchased 1,758,929 shares of common stock at an average price of $1.24 per share (excluding broker and transaction fees of $53). As of September 30, 2024, the Company had remaining authorization under the Repurchase Program to repurchase common stock up to an aggregate amount of $2.8 million, subject to satisfying required conditions under the Companies Law and Companies Regulations.
Credit Facilities
In January 2021, we entered into a new credit agreement (as amended, the “Credit Agreement”) with one of our existing lenders, which provides for a new senior secured term loan facility in the aggregate principal amount of $40.0 million (the “Term Loan Facility”) and a new senior secured revolving credit facility in the aggregate principal amount of $10.0 million (the “Revolving Credit Facility” and, together with the Term Loan Facility, the “Credit Facilities”), which thereafter were extended and amended to align our business needs and other developments. In December 2023, we refinanced all amounts outstanding under the then-existing Credit Agreement, and entered into a new amendment to the credit agreement (the “Fifth Amendment”) with an existing lender, which provides for an additional term loan facility of $3.5 million in addition to the existing $31.5 million in term loans outstanding immediately prior to the Fifth Amendment. Commitments under the Revolving Credit Facility decreased to $25.0 million
In July 2024, we entered into an amendment to the Credit Agreement with an existing lender, in connection with our Repurchase Program (as defined herein), which updated the aggregate amount of permitted Restricted Payments (as defined in the Credit Agreement; which term include, among others, repurchase of the Company’s outstanding common stock) and conditions for making such payments.
The amount available for borrowing under the Revolving Credit Facility is limited to a borrowing base, which is equal to the product of (a) 500% (which will automatically reduce to 350% on the date the Term Loan Facility is repaid in full), multiplied by (b) monthly Recurring Revenue for the most recently ended monthly period, multiplied by (c) the Retention Rate (in each case, as defined in the Credit Agreement).
The Revolving Credit Facility includes a sub-facility for letters of credit in the aggregate availability amount of $10.0 million and a swingline sub-facility in the aggregate availability amount of $5.0 million, each of which reduces borrowing availability under the Revolving Credit Facility.
Borrowings under the Credit Facilities bear interest, determined as follows: (a) SOFR loans accrue interest at a rate per annum equal to Term SOFR (as defined in the Credit Agreement) plus 0.10% per annum plus a margin of 2.50% (the Adjusted Term SOFR (as defined in the Credit Agreement) is subject to a 1.00% floor), and (b) ABR loans accrue interest at a rate per annum equal to the ABR plus a margin of 1.50% (ABR is equal to the highest of (i) the prime rate and (ii) the Federal Funds Effective Rate plus 0.50%, subject to a 2.00% floor). As of September 30, 2024, the current rate of interest under the Credit Facilities was equal to a rate per annum of 7.23%, consisting of 4.63% (the 3-month SOFR rate as of September 30, 2024), 0.10% credit spread adjustment and the margin of 2.50%.
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We are required to prepay amounts outstanding under the Term Loan Facility with 100% of the net cash proceeds of any indebtedness incurred by us or any of our subsidiaries other than certain permitted indebtedness. In addition, we are required to prepay amounts outstanding under the Credit Facilities with the net cash proceeds of any Asset Sale or Recovery Event (each as defined in the Credit Agreement), subject to certain limited reinvestment rights.
Amounts outstanding under the Credit Facilities may be voluntarily prepaid at any time and from time to time, in whole or in part, without premium or penalty. All voluntary prepayments (other than ABR loans borrowed under the Revolving Credit Facility) must be accompanied by accrued and unpaid interest on the principal amount being prepaid and customary “breakage” costs, if any, with respect to prepayments of SOFR loans.
The Term Loan Facility is payable in consecutive quarterly installments on the last day of each fiscal quarter in an amount equal to (i) $437,500 for installments payable on December 31, 2023 (deferred to January 9, 2024), through September 30, 2024, (ii) $656,250 for installments payable on December 31, 2024 through September 30, 2025, and (iii) $1,312,500 for installments payable on and after December 31, 2025. The remaining unpaid balance on the Term Loan Facility is due and payable on December 21, 2026, together with accrued and unpaid interest on the principal amount to be paid to, but excluding, the payment date.

Our obligations under the Credit Facilities are currently guaranteed by Kaltura Europe Limited, and are required to be guaranteed by all of our future direct and indirect subsidiaries other than certain excluded subsidiaries and immaterial foreign subsidiaries. Our obligations and those of Kaltura Europe Limited are, and the obligations of any future guarantors are required to be, secured by a first priority lien on substantially all of our respective assets.
The Credit Agreement contains a number of covenants that, among other things and subject to certain exceptions, restrict our ability, and the ability of our subsidiaries, to:
•create, issue, incur, assume, become liable in respect of or suffer to exist any debt or liens;
•consummate any merger, consolidation or amalgamation, or liquidate, wind up or dissolve, or dispose of all or substantially all of our or their respective property or business;
•dispose of property or, in the case of our subsidiaries, issue or sell any shares of such subsidiary’s capital stock;
•repay, prepay, redeem, purchase, retire or defease subordinated debt;
•declare or pay dividends or make certain other restricted payments;
•make certain investments;
•enter into transactions with affiliates;
•enter into new lines of business; and
•make certain amendments to our or their respective organizational documents or certain material contracts.
The Credit Agreement also contains certain financial covenants that require us to maintain (i) a minimum amount of Consolidated Adjusted EBITDA (as defined in the Credit Agreement) as of the last day of each fiscal quarter (which minimum amount increased through the fiscal quarter ended December 31, 2023) (the “Adjusted EBITDA Covenant”), and (ii) Liquidity (as defined in the Credit Agreement) of at least $20.0 million as of the last day of any calendar month. We were in compliance with these covenants as of September 30, 2024.
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The Credit Agreement also contains certain customary representations and warranties and affirmative covenants, and certain reporting obligations. In addition, the lenders under the Credit Facilities will be permitted to accelerate all outstanding borrowings and other obligations, terminate outstanding commitments and exercise other specified remedies upon the occurrence of certain events of default (subject to certain grace periods and exceptions), which include, among other things, payment defaults, breaches of representations and warranties, covenant defaults, certain cross-defaults and cross-accelerations to other indebtedness, certain events of bankruptcy and insolvency, certain judgments and Change of Control events (as defined in the Credit Agreement).
As of September 30, 2024, we had no balance outstanding under the Revolving Credit Facility and the total revolving commitment of $25.0 million remains available for future borrowings. As of September 30, 2024, we had approximately $33.3 million of borrowing under the Term Loan Facility.
Cash Flows
The following table summarizes our cash flows for the periods presented:
Nine Months Ended September 30,
20242023
(in thousands)
Net cash provided by (used in) operating activities
$7,920 $(9,904)
Net cash provided by (used in) investing activities(4,184)1,081 
Net cash used in financing activities(3,865)(3,276)
Effect of exchange rate changes on cash, cash equivalents and restricted cash285 439 
Net increase (decrease) in cash, cash equivalents, and restricted cash156 (11,660)
Cash, cash equivalents, and restricted cash at beginning of period36,784 45,833 
Cash, cash equivalents and restricted cash at end of period$36,940 $34,173 
Operating Activities
Net cash flows provided by operating activities increased by $17.8 million for the nine months ended September 30, 2024, as compared to the nine months ended September 30, 2023.
Net cash provided by operating activities of $7.9 million for nine months ended September 30, 2024, was primarily due to $24.7 million incremental net loss, offset for non-cash adjustments totaling $32.5 million, and net cash inflows of $0.2 million due to changes in operating assets and liabilities. Non-cash charges primarily consisted of depreciation and amortization of $3.8 million, stock-based compensation expenses of $21.1 million and amortization of deferred contract acquisitions and fulfillment costs of $8.6 million. Changes in operating assets and liabilities primarily consisted of increase in trade payables of $2.2 million, a total increase in employee accruals, accrued expenses, and other liabilities of $2.1 million, a decrease in trade receivables of $0.7 million and an increase in deferred revenue of $0.6 million. These trends were partially offset by an increase in deferred contract acquisition and fulfillment costs of $4.4 million and a net change in operating right-of-use assets and lease liabilities of $0.9 million.
Net cash used in operating activities of $9.9 million for nine months ended September 30, 2023, was primarily due to $34.3 million incremental net loss, adjusted for non-cash charges of $33.0 million, and net cash outflows of $8.6 million due to changes in our operating assets and liabilities. Non-cash charges primarily consisted of depreciation and amortization of $3.4 million, stock-based compensation expenses of $22.0 million and amortization of deferred contract acquisitions and fulfillment costs of $8.8 million. The main drivers of net cash outflows were derived from the changes in operating assets and liabilities and were related to a decrease of trade payable of $5.6 million, an increase of deferred contract acquisition and fulfillment cost of $4.9 million, an aggregate decrease in employees accruals, accrued expenses and other liabilities of $2.4 million and a decrease in deferred revenue of $1.3 million, partially offset by a decrease of receivables of $6.9 million.
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Investing Activities
Net cash flows used in investing activities decreased by $5.3 million for the nine months ended September 30, 2024, as compared to the nine months ended September 30, 2023.
Net cash used in investing activities amounted to $4.2 million for the nine months ended September 30, 2024. This was primarily due to an an increase in proceeds from maturities of available-for-sale marketable securities of $34.0 million.
Net cash provided by investing activities amounted to $1.1 million for the nine months ended September 30, 2023. This was primarily due to $39.0 million in sales and maturities of available-for-sale marketable securities, partially offset by $1.5 million for capitalized internal use software, $33.6 million in investments in available-for-sale marketable securities, $1.0 million in investments in a bank deposit, and $1.8 million in capital expenditures
Financing Activities
Net cash flows used in financing activities increased by $0.6 million for the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023.
Net cash used in financing activities of $3.9 million for the nine months ended September 30, 2024 was primarily due to repayment of long-term loans of $1.8 million, $2.2 million repurchase of common stock and $0.1 million payments on account of repurchase of common stock, offset by $0.2 million due to proceeds from the exercise of stock options.
Net cash used in financing activities of $3.3 million for the nine months ended September 30, 2023 was primarily due to the repayment of long-term loans totaling $4.5 million, which was partially offset by proceeds of $1.2 million from the exercise of stock options.
Contractual Obligations and Commitments
Our principal commitments consist of obligations under operating and finance leases, purchase obligations with third-party providers for the use of cloud hosting and other services and outstanding debt. There were no material changes to our commitments and contractual obligations during the nine months ended September 30, 2024 from the commitments and contractual obligations disclosed in Part II, Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations," of our 2023 10-K. For further information on our commitments and contractual obligations, refer also to Note 7, Note 8 and Note 14 of the notes to our unaudited condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q.
Critical Accounting Policies and Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Our management believes that the estimates, judgment and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates.
Our critical accounting policies and estimates were disclosed in Part II, Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations," of our 2023 10-K. There have been no significant changes to these policies and estimates during the nine months ended September 30, 2024.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
We are exposed to market risk from changes in exchange rates, interest rates and inflation. All of these market risks arise in the ordinary course of business, as we do not engage in speculative trading activities. The following analysis provides additional information regarding these risks.

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Foreign Currency and Exchange Risk
Our revenue and expenses are primarily denominated in U.S. dollars. Our functional currency is the U.S. dollar. Our sales are mainly denominated in U.S. dollars and Euros. A significant portion of our operating costs are in Israel, consisting principally of salaries and related personnel expenses, and facility expenses, which are denominated in NIS. This foreign currency exposure gives rise to market risk associated with exchange rate movements of the U.S. dollar against the NIS and Euros. Furthermore, we anticipate that a significant portion of our expenses will continue to be denominated in NIS as well as that a significant portion of our revenue will continue to be denominated in Euros.
To reduce the impact of foreign currency exchange risks associated with forecasted future cash flows and certain existing assets and liabilities and the volatility in our consolidated statements of operations, we established a hedging program. Currently, our hedging activity relates to U.S. dollar/NIS exchange rate exposure. We do not intend to enter into derivative instruments for trading or speculative purposes. We account for our derivative instruments as either assets or liabilities and carry them at fair value in the consolidated balance sheets. The accounting for changes in the fair value of the derivative depends on the intended use of the derivative and the resulting designation. Our hedging activities are expected to reduce but not eliminate the impact of currency exchange rate movements.
A hypothetical 10% change in foreign currency exchange rates applicable to our business would have had an impact on our results for the nine months ended September 30, 2024, of $1.4 million due to NIS (after considering cash-flow hedges) and $3.6 million due to Euros.
Interest Rate Risk
As of September 30, 2024, we had outstanding floating rate debt obligations of $33.0 million (consisting of the outstanding principal balance under our credit facilities). Accordingly, fluctuations in market interest rates may increase or decrease our interest expense which will, in turn, increase or decrease our net income and cash flow. We seek to manage exposure to adverse interest rate changes through our normal operating and financing activities. At this time, we do not use derivative instruments to mitigate our interest rate risk. A hypothetical 10% change in interest rates during the periods presented would not have a material impact on our results for the nine months ended September 30, 2024.
Impact of Inflation
While it is difficult to accurately measure the impact of inflation due to the imprecise nature of the estimates required, we do not believe inflation has had a material effect on our historical results of operations and financial condition. However, if our costs were to become subject to significant inflationary pressures, we may not be able to fully offset higher costs through price increases or other corrective measures, and our inability or failure to do so could adversely affect our business, financial condition, and results of operations.
Item 4. Controls and Procedures.
Limitations on effectiveness of controls and procedures
In designing and evaluating our disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.
In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply judgment in evaluating the benefits of possible controls and procedures relative to their costs.
Evaluation of disclosure controls and procedures
Our management, with the participation and supervision of our Chief Executive Officer and our Chief Financial Officer, have evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that as of such date, our disclosure controls and procedures were effective at the reasonable assurance level.
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Changes in internal control over financial reporting
There were no changes in our internal control over financial reporting identified in connection with the evaluation required by Rule 13a-15(d) and 15d-15(d) of the Exchange Act that occurred during the period covered by this Quarterly Report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
From time to time, we are involved in various legal proceedings arising from the normal course of business activities. We are not presently a party to any litigation the outcome of which, we believe, if determined adversely to us, would individually or taken together have a material adverse effect on our business, operating results, cash flows or financial condition. Defending such proceedings is costly and can impose a significant burden on management and employees. We may receive unfavorable preliminary or interim rulings in the course of litigation, and there can be no assurances that favorable final outcomes will be obtained.
Item 1A. Risk Factors.
There have been no material changes from the risk factors previously disclosed in our 2023 10-K.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Purchases of Equity Securities by the Issuer or Affiliated Purchaser
The following table presents information with respect to the Company’s purchases of its common stock during the three months ended September 30, 2024:

PeriodTotal Number of Shares Purchased (1)Average Price Paid Per ShareTotal Number of Shares Purchased as Part of Publicly Announced Plans or ProgramsApproximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in Thousands)
July 1, 2024 to July 31, 2024
817,329 $1.22 817,329 $3,914 
August 1, 2024 to August 31, 2024
521,710 $1.23 521,710 $3,273 
September 1, 2024 to September 30, 2024
353,285 $1.27 353,285 $2,820 
Total1,692,324 1,692,324 

(1) On June 11, 2024, the Company’s board of directors authorized a stock repurchase program of the Company’s outstanding common stock for up to $5 million of the Company’s common stock (the “Repurchase Program”). 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. 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.




Use of Proceeds
On July 23, 2021, we completed our IPO, in which we issued and sold 15,000,000 shares of our common stock at a price to the public of $10.00 per share. On August 6, 2021, we issued and sold an additional 2,250,000 shares of our common stock at a price of $10.00 per share in connection with the underwriters’ exercise in full of their option to purchase additional shares of our common stock. All shares sold were registered pursuant to a registration statement on Form S-1 (File No. 333- 253699), as amended (the “Registration Statement”), declared effective by the SEC on July 20, 2021. Other than as reported in Part I, Item 5, “Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities” in our 2023 10-K, there has been no material change in the expected use of the net proceeds from our IPO as described in the Registration Statement.
Item 3. Defaults Upon Senior Securities.
None.
Item 4. Mine Safety Disclosures.
Not applicable.
Item 5. Other Information.
During the three months ended September 30, 2024, the following directors and officers of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K:
Director/Sec. 16 OfficerAction
Date Adopted
Total Shares to be Sold
 Termination Date
Rule 10b5-1*Non-Rule 10b5-1**
Eynav AzariaTerminate22-May-24845,969—05-Aug-24
* Intended to satisfy the affirmative defense of Rule 10b5-1(c)
** Not intended to satisfy the affirmative defense of Rule 10b5-1(c)
Item 6. Exhibits
The documents listed below are incorporated by reference or are filed with this Quarterly Report on Form 10-Q, in each case as indicated below.
Incorporated by Reference
Exhibit NumberExhibit DescriptionFormFile No.ExhibitFiling DateFiled/Furnished Herewith
3.18-K001-406443.107/23/2021
3.2

8-K001-406443.108/08/2022
3.38-K001-406443.207/23/2021
55

4.1S-1/A333-2536994.103/23/2021
4.2S-1/A333-2536994.203/23/2021
10.1
10-Q
001-40644
4.3
08/08/2024
31.1*
31.2*
32.1**
32.2**
101.INSInline XBRL Instance Document - the instance document does not appear in the Interactive Data file because its XBRL tags are embedded within the Inline XBRL document*
101.SCHInline XBRL Taxonomy Extension Schema Document*


101.CALInline XBRL Taxonomy Extension Calculation Linkbase Document*
101.DEFInline XBRL Taxonomy Extension Definition Linkbase Document*
101.LABInline XBRL Taxonomy Extension Label Linkbase Document*
101.PREInline XBRL Taxonomy Extension Presentation Linkbase Document*
104Cover Page Interactive Data File (as formatted as Inline XBRL and contained in Exhibit 101)*


*    Filed herewith.
**    Furnished herewith.


SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
  KALTURA, INC.
    
Date: November 6, 2024
 By:
/s/ Ron Yekutiel
   Ron Yekutiel
   
Chairman, President and Chief Executive Officer
(Principal Executive Officer)
Date: November 6, 2024
By:
/s/ John Doherty
John Doherty
Chief Financial Officer
(Principal Financial and Accounting Officer)