Kaltura Inc (NASDAQ: KLTR)

Sector: Technology Industry: Software - Application CIK: 0001432133
Market Cap 239.85 Mn
P/B 13.52
P/E -13.25
P/S 1.33
ROIC (Qtr) -27.18
Div Yield % 0.00
Rev 1y % (Qtr) -0.97
Total Debt (Qtr) 47.77 Mn
Debt/Equity (Qtr) 2.69

About

Kaltura Inc. (KLTR) operates in the technology industry, offering video experience cloud solutions for various sectors such as technology, financial services, healthcare, and education. The company's mission is to empower any video experience for any organization, providing businesses with the tools to create, manage, and deliver video content across multiple platforms and devices. Kaltura's main business activities revolve around its Video Experience Cloud, a comprehensive solution that caters to different industries and use cases. The cloud includes...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 41.51M provide 5.30x coverage of short-term debt 7.83M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 161.48M provides 3.38x coverage of total debt 47.77M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 14.57M exceeds capital expenditure of 634000 by 22.98x, indicating strong organic growth funding capability.
  • Robust tangible asset base of 161.48M provides 13.75x coverage of working capital 11.74M, indicating strong operational backing.
  • Long-term investments of 11.90M provide solid 1.01x backing of working capital 11.74M, showing strategic capital allocation.

Bear case

  • Investment activities of 642000 provide weak support for R&D spending of 48.11M, which is 0.01x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 15.21M provides insufficient coverage of deferred revenue obligations of 61.09M, which is 0.25x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 15.21M shows concerning coverage of stock compensation expenses of 17.87M, with a 0.85 ratio indicating potential earnings quality issues.
  • Operating earnings of (11.30M) show weak coverage of depreciation charges of 4.61M, with a -2.45 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 14.57M represents just -5.54x of debt issuance (2.63M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Segments Breakdown of Revenue (2024)

Geographical Breakdown of Revenue (2024)

Peer comparison

Companies in the Software - Application
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SAP Sap Se 288.31 Bn 34.60 6.72 10.73 Bn
2 CRM Salesforce, Inc. 248.32 Bn 34.38 6.16 11.14 Bn
3 SHOP Shopify Inc. 212.27 Bn 119.19 19.85 1.12 Bn
4 INTU Intuit Inc. 180.73 Bn 43.89 9.30 6.78 Bn
5 UBER Uber Technologies, Inc 178.38 Bn 10.72 3.60 12.19 Bn
6 NOW ServiceNow, Inc. 146.98 Bn 84.91 11.60 2.40 Bn
7 ADBE Adobe Inc. 144.48 Bn 20.77 6.23 6.64 Bn
8 ADP Automatic Data Processing Inc 108.20 Bn 26.16 5.18 9.77 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.47 2.65
EV to Cash from Ops. EV/CFO 16.65 13.37
EV to Debt EV to Debt 5.30 57.69
EV to EBIT EV/EBIT -22.40 19.12
EV to EBITDA EV/EBITDA -50.46 15.00
EV to Free Cash Flow [EV/FCF] EV/FCF 17.38 14.69
EV to Market Cap EV to Market Cap 1.06 -92.28
EV to Revenue EV/Rev 1.40 4.60
Price to Book Value [P/B] P/B 13.52 4.26
Price to Earnings [P/E] P/E -13.25 -136.90
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -3.95
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.25
Dividend per Basic Share Div per Share (Qtr) 0.00 0.15
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.52
Interest Coverage Int. cover (Qtr) -5.03 -52.32
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 48.71 -259.78
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 12.68 9,763.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.61
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 62.61 -263.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 79.08 56.46
EBIT Growth (1y) % EBIT 1y % (Qtr) 64.87 -225.15
EBT Growth (1y) % EBT 1y % (Qtr) 53.75 -86.10
EPS Growth (1y) % EPS 1y % (Qtr) 53.85 123.84
FCF Growth (1y) % FCF 1y % (Qtr) 75.88 -36.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 9.95 95.08
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.05 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.41 3.75
Current Ratio Curr Ratio (Qtr) 1.12 8.16
Debt to Equity Ratio Debt/Equity (Qtr) 2.69 0.17
Interest Cover Ratio Int Coverage (Qtr) -5.03 -52.32
Times Interest Earned Times Interest Earned (Qtr) -5.03 -52.32
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -3.70 -100.06
EBIT Margin % EBIT Margin % (Qtr) -6.25 -164.24
EBT Margin % EBT Margin % (Qtr) -7.49 -116.94
Gross Margin % Gross Margin % (Qtr) 70.20 58.20
Net Profit Margin % Net Margin % (Qtr) -10.00 -121.65