JMP raises Kaltura stock price target to $4 from $3

Published 21/02/2025, 10:56
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On Friday, JMP Securities analyst Patrick Walravens increased the price target on (NASDAQ:KLTR) shares of Kaltura , Inc. to $4.00, up from the previous $3.00, while reaffirming a Market Outperform rating. The revision follows Kaltura’s fourth-quarter earnings report which surpassed expectations. With a current market capitalization of $370 million, InvestingPro data shows the company maintains a FAIR overall Financial Health Score of 2.15.

Kaltura reported an adjusted EBITDA of $2.7 million, outperforming the consensus estimate of $1.1 million. The company’s revenue reached $45.6 million, exceeding the predicted $44.4 million and marking a year-over-year increase of 3%, which is an acceleration from the 2% growth observed in the previous quarter. According to InvestingPro data, while showing improving metrics, the company still faces profitability challenges with a negative EBITDA of $19.04 million over the last twelve months.

The company also saw a rise in its committed remaining performance obligations (cRPO) to $118 million, an 8% increase compared to the same period last year and double the 4% growth anticipated by Citizens. Moreover, Kaltura’s net revenue retention (NRR) rate improved to 103%, up from 101% in the last quarter, indicating strong new bookings and gross retention.

Despite these positive results, Kaltura’s billings slightly declined by 4% year-over-year to $45.5 million, narrowly missing the consensus estimate of $45.7 million. Following the report, Kaltura’s stock experienced a drop of approximately 3% intraday. However, the company’s shares have still risen roughly 13% year to date, outperforming the Russell 3000’s 4% increase over the same period. InvestingPro analysis reveals an impressive 69% return over the past year, though the stock trades at a notable Price/Book ratio of 15x. Get access to 6 more exclusive ProTips and comprehensive valuation metrics with InvestingPro’s detailed research report.

In other recent news, Kaltura, Inc. reported its fourth-quarter 2024 earnings, exceeding expectations with an EPS of -$0.01, compared to the forecasted -$0.018. The company’s revenue also surpassed projections, reaching $45.6 million against the anticipated $44.32 million. This revenue growth was driven by a 6% increase in subscription revenue, with total revenue seeing a 3% rise year-over-year. Kaltura’s gross margin improved significantly to 71%, up from 64% the previous year, highlighting operational efficiencies. The company also launched new AI-driven products and features, contributing to its innovation portfolio. Looking ahead, Kaltura has provided a positive revenue guidance for 2025, with expectations for subscription revenue to increase by 2-3%. The company aims to double its adjusted EBITDA margin in 2025, indicating a strong focus on profitability. These developments reflect Kaltura’s strategic execution and market positioning, as noted by CEO Ron Yucatel and CFO John Doherty during their earnings call.

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