On Friday, Needham, a financial services firm, adjusted its outlook on Kaltura, Inc. (NASDAQ: KLTR), reducing the price target to $3.00 from the previous $5.00, while sustaining a Buy rating on the company's stock. Kaltura, known for its video cloud platform, reported first-quarter 2024 results that met expectations and provided guidance indicating flat revenue and EBITDA slightly above breakeven for both the second quarter and the full year of 2024.
Despite a year-over-year increase of 2% in subscription revenue, Kaltura experienced a quarterly deceleration. This slowdown was attributed to a net dollar retention rate that fell to 98%, influenced by down-selling and pricing pressures in the market. However, the company managed to achieve its third consecutive quarter of positive adjusted EBITDA, thanks to its disciplined operating expense management.
Kaltura's commitment to innovation remains evident, with the company continuing to add to its impressive Fortune 500 client list and rolling out new artificial intelligence features across its product lineup.
The company's efforts to stay at the forefront of technology and product offerings are noted despite the challenges it faces in a slow-growth total addressable market (TAM) and the inherent obstacles of a smaller company in establishing channel partnerships.
The value of Kaltura's product and technology stack was highlighted, with Needham seeing it as potentially well-suited for integration with larger enterprise vendors and event operators.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.