# EDGAR Filing Document

**Accession Number:** 0001432133
**File Stem:** 0001432133-25-000084
**Filing Date:** 2025-8
**Character Count:** 46208
**Document Hash:** 45b49ca5f7c65b4812cc789c36bc7a43
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001432133-25-000084.hdr.sgml**: 20250807

**ACCESSION NUMBER**: 0001432133-25-000084

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20250807

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250807

**DATE AS OF CHANGE**: 20250807

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** KALTURA INC
- **CENTRAL INDEX KEY:** 0001432133
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-PREPACKAGED SOFTWARE [7372]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 208128326
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-40644
- **FILM NUMBER:** 251191509

**BUSINESS ADDRESS:**
- **STREET 1:** 250 PARK AVENUE SOUTH
- **STREET 2:** 10TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10003
- **BUSINESS PHONE:** 646 262-9144

**MAIL ADDRESS:**
- **STREET 1:** 250 PARK AVENUE SOUTH
- **STREET 2:** 10TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10003

?xml version='1.0' encoding='ASCII'? kltr-20250807

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

**FORM 8-K** 

**CURRENT REPORT** 

**PURSUANT TO SECTION 13 OR 15(d)** 

**OF THE SECURITIES EXCHANGE ACT OF 1934** 

**Date of report (Date of earliest event reported): August 7, 2025**

**Kaltura, Inc.** 

**(Exact Name of Registrant as Specified in its Charter)** 

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-40644** | **20-8128326** |
| **(State or Other Jurisdiction**<br>**of Incorporation)** | **(Commission**<br>**File Number)** | **(IRS Employer**<br>**Identification No.)** |

---

**860 Broadway**

**3rd Floor**

**New York, New York 10003**

**(Address of Principal Executive Offices) (Zip Code)** 

**(646) 290-5445**

**(Registrant's telephone number, including area code)** 

**N/A**

**(Former Name or Former Address, if Changed Since Last Report)** 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425).

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12).

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)).

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)).

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading**<br>**Symbols** | **Name of each exchange**<br>**on which registered** |
| **Common stock, par value $0.0001 per share** | **KLTR** | **The Nasdaq Stock Market LLC** |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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**Item 2.02. Results of Operations and Financial Condition.**

On August 7, 2025, Kaltura, Inc. (the "Company") issued a press release announcing its financial results for the quarter ended June 30, 2025. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information contained in this Item 2.02, including Exhibit 99.1 hereto, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing made by the Company under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filings, unless expressly incorporated by specific reference in such filing.

**Item 9.01. Financial Statements and Exhibits.** 

(d) <u>Exhibits</u>.

---

| | | |
|:---|:---|:---|
| **Exhibit No.** | | **Description** |
| 99.1 | | <u>[Press Release dated August 0](kaltura-q2x2025earningsrel.htm)[7](kaltura-q2x2025earningsrel.htm)[, 202](kaltura-q2x2025earningsrel.htm)[5](kaltura-q2x2025earningsrel.htm)</u> |
| e | Co | Co |
| 104 | | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

------

**<u>SIGNATURE</u>**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | |
|:---|:---|
| KALTURA, INC. | KALTURA, INC. |
| By: | /s/ John Doherty |
| Name: | John Doherty |
| Title: | Chief Financial Officer |

---

Date: August 7, 2025

## Exhibit 99.1

**Exhibit 99.1**

![image_0.jpg](image_0.jpg)

**Kaltura Announces Financial Results for Second Quarter 2025**

NEW YORK, August 7, 2025 -- Kaltura, Inc. (Nasdaq: KLTR, "Kaltura" or the "Company"), the Video Experience Cloud, today announced financial results for the second quarter ended June 30, 2025, as well as outlook for the third quarter and full year 2025.

"We exceeded the upper end of all our second quarter guidance ranges, delivering record non-GAAP net profit, an adjusted EBITDA profit that matched last quarter's record high, and strongest second-quarter operating cash flow since 2020," said Ron Yekutiel, Co-founder, Chairman, President, and CEO of Kaltura. "New bookings increased sequentially and included initial sales of our AI products. We enter the second half of the year with a robust pipeline and continue to project growth in new bookings, supported by deeper customer consolidation around our platform and the growing adoption of our AI-powered offerings."

Yekutiel added, "We've initiated a reorganization plan that includes, among other measures, a workforce reduction of approximately 10%, aimed at realigning our operations to boost efficiency and productivity. These changes are part of a longer-term strategy, already embedded in our plans, to double adjusted EBITDA in 2026 and return to being a 'Rule of 30' company by or before 2028 - through a combination of double-digit revenue growth and improved adjusted EBITDA margin."

**Second Quarter 2025 Financial Highlights:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;**Revenue** for the second quarter of 2025 was $44.5 million, an increase of 1% compared to $44.0 million for the second quarter of 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;**Subscription Revenue** for the second quarter of 2025 was $42.4 million, an increase of 3% compared to $41.0 million for the second quarter of 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;**Annualized Recurring Revenue (ARR)** for the second quarter of 2025 was $170.4 million, an increase of 3% compared to $165.2 million for the second quarter of 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;**GAAP Gross profit** for the second quarter of 2025 was $31.2 million, representing a gross margin of 70% compared to a GAAP gross profit of $28.7 million and gross margin of 65% for the second quarter of 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;**Non-GAAP Gross profit** for the second quarter of 2025 was $31.3 million, representing a non-GAAP gross margin of 70%, compared to a non-GAAP gross profit of $29.0 million and non-GAAP gross margin of 66% for the second quarter of 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;**GAAP Operating loss** was $2.8 million for the second quarter of 2025, compared to an operating loss of $8.6 million for the second quarter of 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;**Non-GAAP Operating profit** was $3.0 million for the second quarter of 2025, compared to a non-GAAP operating profit of $0.5 million for the second quarter of 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;**GAAP Net loss** was $7.8 million or $0.05 per diluted share for the second quarter of 2025, compared to a GAAP net loss of $10.0 million, or $0.07 per diluted share, for the second quarter of 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;**Non-GAAP Net profit** was $2.5 million or $0.01 per diluted share for the second quarter of 2025, compared to a non-GAAP net loss of $2.1 million, or $0.01 per diluted share, for the second quarter of 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;**Adjusted EBITDA** was $4.1 million for the second quarter of 2025, compared to adjusted EBITDA of $1.6 million for the second quarter of 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;**Net Cash Provided by Operating Activities** was $2.7 million for the second quarter of 2025, compared to $1.6 million Net Cash Used in Operating Activities for the second quarter of 2024.

------

**Second Quarter 2025 Business Highlights:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Business Momentum**: Closed 21 new six-figure deals across a diverse range of industries including technology, banking, financial services, manufacturing, pharma, education, and media & telecom. Signed our first three AI-driven deals featuring Content Lab and Genie, marking an early milestone in our AI monetization journey. Our AI sales pipeline now includes over 100 qualified opportunities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Retention**: Achieved a third consecutive quarter of year-over-year improvement in Net Dollar Retention (NDR), and a fourth consecutive quarter above 100%, signaling continued customer expansion and satisfaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Industry Recognition and Awards:** Recognized as a Leader by IDC in their inaugural MarketScape for AI-Enabled Enterprise Video Platforms. Class Genie was awarded 'e-Learning Innovation of the Year' at the 7th Annual EdTech Breakthrough Awards. Our Virtual Events & Webinars platform earned five Gold Awards at the 2025 Eventex Awards—including Best Event AI Technology, Best New Event Technology, Best Audience Engagement Technology, Best Event Analytics, and Best Virtual Event Platform.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Customer Engagement:** Hosted 'Kaltura Connect on the Road 2025' events in New York, San Francisco, and London, alongside our 'Kaltura Connect in Education' events series across Europe and the U.S. Additional education-focused events are planned for later this year in Europe and the Asia-Pacific region - details available on our website.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Organizational Realignment to Drive Efficiency and Scale:** Initiated a company-wide reorganization to enhance productivity, streamline operations, and capture synergies. As part of this effort, all engineering resources have been unified under a single R&D organization, and Customer Experience and Sales have been consolidated into one go-to-market team—both of which now support our M&T and EE&T business segments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Headcount Adjustment and Expense Optimization**: The reorganization includes a reduction of approximately 10% of our workforce. We expect to realize cost savings starting later in the third quarter. The reorganization will primarily impact engineering, professional services, and administrative spend. Our sales and marketing budget remains intact, with expectations for gradual growth to support pipeline momentum. Ongoing investments in automation and AI-driven efficiency are already delivering measurable benefits and are expected to continue contributing to cost savings and scalability across the organization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Financial Impact of Reorganization:** Total savings from workforce reductions associated with the reorganization expected for the balance of 2025 is approximately $2.6 million, which translates to $8.5 million on an annualized basis, strengthening our financial position moving forward. The total one-time charge related to the reorganization is expected to be approximately $0.7 million in the third quarter of 2025.

**Financial Outlook:**

For the third quarter of 2025, Kaltura expects:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Subscription Revenue** to be between $40.8 million and $41.6 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Total Revenue** to be between $42.8 million and $43.6 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Adjusted EBITDA** to be between $1.5 million to $2.5 million.

For the full year ending December 31, 2025, Kaltura expects:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Subscription Revenue** to be between $170.9 million and $172.9 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Total Revenue** to be between $180.4 million and $182.4 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Adjusted EBITDA** to be in the range of $14.5 million to $16.0 million.

The guidance provided above contains forward-looking statements and actual results may differ materially. Refer to "Forward-Looking Statements" below for information on the factors that could cause our actual results to differ materially from these forward-looking statements. Kaltura has not provided a quantitative reconciliation of forecasted Adjusted EBITDA to forecasted GAAP net loss within this press release because the Company is unable, without making unreasonable efforts, to calculate certain reconciling items with confidence. The reconciliation for Adjusted EBITDA includes but is not limited to the following items: stock-based compensation expenses, depreciation, amortization, financial expenses (income), net, provision for income tax, and other non-recurring operating expenses. These items, which could materially affect the computation of forward-looking GAAP net loss, are inherently uncertain and depend on various factors, some of which are outside of the Company's control. The guidance above is based on the Company's current expectations relating to the macro-economic climate trends.

Additional information on Kaltura's reported results, including a reconciliation of the non-GAAP financial measures to their most comparable GAAP measures, is included in the financial tables below.

------

**Investor Deck**

Our second quarter and full year 2025 Investor Deck has been posted in the investor relations page on our website at: www.investors.kaltura.com.

**Conference Call**

Kaltura will host a conference call today on August 7, 2025 to review its second quarter 2025 financial results and to discuss its financial outlook.

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| | |
|:---|:---|
| Time: | 8:00 a.m. ET |
| United States/Canada Toll Free: | 1-877-300-8521 |
| International Toll: | 1-412-317-6026 |

---

A live webcast will also be available in the Investor Relations section of Kaltura's website at: https://investors.kaltura.com/news-and-events/events

A replay of the webcast will be available in the Investor Relations section of the company's web site approximately two hours after the conclusion of the call and remain available for approximately 30 calendar days.

**About Kaltura**

Kaltura's mission is to create and power AI-infused hyper-personalized video experiences that boost customer and employee engagement and success. Kaltura's AI Video Experience Cloud includes a platform for enterprise and TV content management and a wide array of Gen AI-infused video-first products, including Video Portals, LMS and CMS Video Extensions, Virtual Events and Webinars, Virtual Classrooms, and TV Streaming Applications. Kaltura engages millions of end-users at home, at work, and at school, boosting both customer and employee experiences, including marketing, sales, and customer success; teaching, learning, training and certification; communication and collaboration; and entertainment, and monetization. For more information, visit www.corp.kaltura.com.

**Investor Contacts:**

Kaltura

John Doherty

Chief Financial Officer

IR@Kaltura.com

Sapphire Investor Relations

Erica Mannion and Michael Funari

+1 617 542 6180

IR@Kaltura.com

**Media Contacts:**

Kaltura

Nohar Zmora

pr.team@kaltura.com

Headline Media

Raanan Loew

raanan@headline.media

+1 347 897 9276

**Forward-Looking Statements**

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including but not limited to, statements regarding our future financial and operating performance, including our guidance and long-term targets; our business strategy, plans and objectives for future operations; including our cost saving initiatives; the timing and impact of our reorganization plan; expectations with respect to our products and capabilities, including the adoption and performance of our new AI-driven technologies; our expectations regarding potential profitability and growth; and general economic, business and industry conditions, including expectations with respect to trends in customer consolidation and corporate spending.

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In some cases, you can identify forward-looking statements by terminology such as "aim," "anticipate," "assume," "believe," "contemplate," "continue," "could," "due," "estimate," "expect," "goal," "intend," "may," "objective," "plan," "predict," "potential," "positioned," "seek," "should," "target," "will," "would" and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Any forward-looking statements contained herein are based on our historical performance and our current plans, estimates and expectations and are not a representation that such plans, estimates, or expectations will be achieved. These forward-looking statements represent our expectations as of the date of this press release. Subsequent events may cause these expectations to change, and we disclaim any obligation to update the forward-looking statements in the future, except as required by law. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially from our current expectations.

Important factors that could cause actual results to differ materially from those anticipated in our forward-looking statements include, but are not limited to, the current volatile economic climate and its direct and indirect impact on our business and operations; political, economic, and military conditions in Israel and other geographies; our ability to retain our customers and meet demand; our ability to achieve and maintain profitability; the evolution of the markets for our offerings; our ability to keep pace with technological and competitive developments; risks associated with our use of certain artificial intelligence and machine learning models; our ability to maintain the interoperability of our offerings across devices, operating systems and third-party applications; risks associated with our Application Programming Interfaces, other components in our offerings and other intellectual property; our ability to compete successfully against current and future competitors; our ability to increase customer revenue; risks related to our approach to revenue recognition; our potential exposure to cybersecurity threats; our compliance with data privacy and data protection laws; our ability to meet our contractual commitments; our reliance on third parties; our ability to retain our key personnel; risks related to revenue mix and customer base; risks related to our international operations; risks related to potential acquisitions; our ability to generate or raise additional capital; and the other risks under the caption "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the Securities and Exchange Commission ("SEC"), as such factors may be updated from time to time in our other filings with the SEC, which are accessible on the SEC's website at www.sec.gov and the Investor Relations page of our website at investors.kaltura.com.

**Non-GAAP Financial Measures**

Kaltura has provided in this press release and the accompanying tables measures of financial information that have not been prepared in accordance with generally accepted accounting principles in the U.S. ("GAAP"), including non-GAAP gross profit, non-GAAP gross margin (calculated as a percentage of revenue), non-GAAP research and development expenses, non-GAAP sales and marketing expenses, non-GAAP general and administrative expenses, non-GAAP operating profit (loss), non-GAAP operating margin (calculated as a percentage of revenue), non-GAAP net income (loss), non-GAAP net income (loss) per share and Adjusted EBITDA.

Beginning with the second quarter, non-GAAP Net Income was adjusted for gains or losses from foreign currency translation adjustments, with the recent fluctuation of the U.S dollar, specifically against the Israeli Shekel and less certainty in the global economic environment, Kaltura believes that this change will provide a better reflection of its overall operating performance on an adjusted net income (loss) basis.

Kaltura defines these non-GAAP financial measures as the respective corresponding GAAP measure, adjusted for, as applicable: (1) stock-based compensation expense; (2) the amortization of acquired intangibles; and (3) strategic initiatives costs, (4) war-related costs, and (5) foreign currency translation adjustments loss (gain). Kaltura defines 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 and certain non-recurring operating expenses. We believe these non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends relating to Kaltura's financial condition and results of operations. These non-GAAP metrics are a 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. Non-GAAP financial measures 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 these non-GAAP financial measures, 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 these non-GAAP financial measures as supplemental measures of our performance because they assist us in comparing the operating performance of our business on a consistent basis between periods, as described above. Although we use the non-GAAP financial measures described above, such measures have significant limitations as analytical tools and only supplement but do not replace, our financial statements in accordance with GAAP. See the tables below regarding reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures

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**Key Financial and Operating Metrics**

*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.

*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. We expect to recognize 61% of our Remaining Performance Obligations as revenue over the next 12 months, and the remainder over a period of four years, in each case, in accordance with our revenue recognition policy; however, we cannot guarantee that any portion of our Remaining Performance Obligations will be recognized as revenue within the timeframe we expect or at all.

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**Consolidated Balance Sheets (U.S. dollars in thousands)**

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| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| | **June 30, 2025** | **December 31, 2024** |
| | **(Unaudited)** | |
| **ASSETS** | | |
| CURRENT ASSETS: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $35446 | $33059 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marketable securities | 35756 | 48275 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade receivables | 21241 | 19978 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 12306 | 9481 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred contract acquisition and fulfillment costs, current | 9670 | 10765 |
| <u>Total current assets</u> | 114419 | 121558 |
| LONG-TERM ASSETS: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marketable securities | 4132 | 3379 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property and equipment, net | 14279 | 16190 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets, noncurrent | 3438 | 2983 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred contract acquisition and fulfillment costs, noncurrent | 10778 | 13605 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease right-of-use assets | 11242 | 12308 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intangible assets, net | 89 | 212 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill | 11070 | 11070 |
| <u>Total noncurrent assets</u> | 55028 | 59747 |
| **TOTAL ASSETS** | $169447 | $181305 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| CURRENT LIABILITIES: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current portion of long-term loans | $4423 | $3110 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade payables | 9188 | 3265 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employees and payroll accruals | 14083 | 15399 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | 12466 | 14262 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | 2734 | 2504 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue, current | 55075 | 63123 |
| <u>Total current liabilities</u> | 97969 | 101663 |
| &nbsp;&nbsp;NONCURRENT LIABILITIES: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue, noncurrent | 47 | 67 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term loans, net of current portion | 26616 | 29153 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities, noncurrent | 15032 | 15263 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities, noncurrent | 12829 | 10772 |
| <u>Total noncurrent liabilities</u> | 54524 | 55255 |
| **TOTAL LIABILITIES** | $152493 | $156918 |
| STOCKHOLDERS' EQUITY: |  |  |
| Common stock | 17 | 15 |
| Treasury stock  | (17396) | (7801) |
| Additional paid-in capital | 508106 | 500024 |
| Accumulated other comprehensive loss | 3906 | 959 |
| Accumulated deficit | (477679) | (468810) |
| Total stockholders' equity | 16954 | 24387 |
| **TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY** | $169447 | $181305 |

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**Consolidated Statements of Operations (U.S. dollars in thousands, except for share data)**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
| <u>Revenue:</u> |  |  |  |  |
| Subscription | $42384 | $41014 | $87290 | $82184 |
| Professional services | 2078 | 3018 | 4156 | 6629 |
| <u>Total revenue</u> | 44462 | 44032 | 91446 | 88813 |
| <u>Cost of revenue:</u> |  |  |  |  |
| Subscription | 9642 | 10861 | 20129 | 22262 |
| Professional services | 3601 | 4495 | 7362 | 9267 |
| <u>Total cost of revenue</u> | 13243 | 15356 | 27491 | 31529 |
| Gross profit | 31219 | 28676 | 63955 | 57284 |
| <u>Operating expenses:</u> |  |  |  |  |
| Research and development | 11568 | 12029 | 23656 | 24034 |
| Sales and marketing | 11519 | 11780 | 23442 | 23592 |
| General and administrative | 10889 | 13417 | 21191 | 25498 |
| <u>Total operating expenses</u> | 33976 | 37226 | 68289 | 73124 |
| <u>Operating loss</u> | 2757 | 8550 | 4334 | 15840 |
| Financial expense (income), net | 4569 | (1010) | 2766 | 488 |
| <u>Loss before provision for income taxes</u> | 7326 | 7540 | 7100 | 16328 |
| Provision for income taxes | 424 | 2464 | 1769 | 4772 |
| Net loss | 7750 | 10004 | 8869 | 21100 |
| Net loss per share attributable to common stockholders, basic and diluted | $0.05 | $0.07 | $0.06 | $0.14 |
| Weighted average number of shares used in computing basic and diluted net loss per share attributable to common stockholders | 153536740 | 147607504 | 153771875 | 145939847 |

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Stock-based compensation included in above line items:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
|  | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
| Cost of revenue | $119 | $263 | $247 | $547 |
| Research and development | 760 | 1158 | 1609 | 2329 |
| Sales and marketing | 383 | 729 | 815 | 1499 |
| General and administrative | 2829 | 6752 | 5953 | 11054 |
| Total | $4091 | $8902 | $8624 | $15429 |

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**Revenue by Segment (U.S. dollars in thousands):**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
|  | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
| Enterprise, Education and Technology | $33242 | $30965 | $67658 | $63405 |
| Media and Telecom | 11220 | 13067 | 23788 | 25408 |
| Total | $44462 | $44032 | $91446 | $88813 |

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**Gross Profit by Segment (U.S. dollars in thousands):**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
|  | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
| Enterprise, Education and Technology | $25867 | $22932 | $52435 | $46488 |
| Media and Telecom | 5352 | 5744 | 11520 | 10796 |
| Total | $31219 | $28676 | $63955 | $57284 |

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**Consolidated Statement of Cash Flows (U.S. dollars in thousands)**

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| | | |
|:---|:---|:---|
| | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** |
|  | **(Unaudited)** | **(Unaudited)** |
| <u>Cash flows from operating activities:</u> |  |  |
| &nbsp;&nbsp;Net loss | $(8869) | $(21100) |
| &nbsp;&nbsp;Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 2279 | 2585 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expenses | 8624 | 15429 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred contract acquisition and fulfillment costs | 5746 | 5731 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-cash interest income, net | (194) | (593) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Losses (Gain) on foreign exchange | (487) | 132 |
| &nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease (Increase) in trade receivables | (1263) | 1196 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in prepaid expenses and other current assets and other assets, noncurrent | (98) | (34) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in deferred contract acquisition and fulfillment costs | (2001) | (2497) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in trade payables | 6101 | 3447 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in accrued expenses and other current liabilities | (1552) | 1967 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in employees and payroll accruals | (1316) | (903) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (Decrease) in other liabilities, noncurrent | 1643 | (33) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in deferred revenue | (8068) | (7195) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease right-of-use assets and lease liabilities, net | 1065 | (883) |
| &nbsp;&nbsp;Net cash provided by (used in) operating activities | 1610 | (2751) |
| <u>Cash flows from investing activities:</u> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment in available-for-sale marketable securities | (30436) | (19392) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from maturities of available-for-sale marketable securities | 42484 | 21482 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of property and equipment | (423) | (327) |
| &nbsp;&nbsp;Net cash provided by investing activities | 11625 | 1763 |
| <u>Cash flows from financing activities:</u> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayment of long-term loans | (1531) | (1313) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from exercise of stock options | 2849 | 177 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash settlement of equity classified share-based payment awards | (3089) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment of debt issuance costs |  | (10) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repurchase of common stock | (9595) | (85) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in prepayments for repurchase of common stock | 31 | (65) |
| &nbsp;&nbsp;Net cash used in financing activities | (11335) | (1296) |
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 487 | (132) |
| Net increase (decrease) in cash, cash equivalents and restricted cash | 2387 | (2416) |
| Cash, cash equivalents and restricted cash at the beginning of the period | 33159 | 36784 |
| Cash, cash equivalents and restricted cash at the end of the period | $35546 | $34368 |

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**Reconciliation from GAAP to Non-GAAP Results (U.S. dollars in thousands)**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Reconciliation of gross profit and gross margin** |  |  |  |  |
| **GAAP gross profit** | $31219 | $28676 | $63955 | $57284 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | 119 | 263 | 247 | 547 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of acquired intangibles |  | 106 | 98 | 213 |
| **Non-GAAP gross profit** | $31338 | $29045 | $64300 | $58044 |
| **GAAP gross margin** | 70% | 65% | 70% | 64% |
| **Non-GAAP gross margin** | 70% | 66% | 70% | 65% |
| **Reconciliation of operating expenses** |  |  |  |  |
| **GAAP research and development expenses** | $11568 | $12029 | $23656 | $24034 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | 760 | 1158 | 1609 | 2329 |
| **Non-GAAP research and development expenses** | $10808 | $10871 | $22047 | $21705 |
| **GAAP sales and marketing** | $11519 | $11780 | $23442 | $23592 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | 383 | 729 | 815 | 1499 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of acquired intangibles | 12 | 13 | 25 | 26 |
| **Non-GAAP sales and marketing expenses** | $11124 | $11038 | $22602 | $22067 |
| **GAAP general and administrative expenses** | $10889 | $13417 | $21191 | $25498 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | 2829 | 6752 | 5953 | 11054 |
| &nbsp;&nbsp;&nbsp;&nbsp;Strategic initiatives<sup>(b)</sup> | 1632 |  | 1632 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;War related costs<sup>(c)</sup> |  | 1 |  | 22 |
| **Non-GAAP general and administrative expenses** | $6428 | $6664 | $13606 | $14422 |
| **Reconciliation of operating income (loss) and operating margin** |  |  |  |  |
| **GAAP operating loss** | $(2757) | $(8550) | $(4334) | $(15840) |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | 4091 | 8902 | 8624 | 15429 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of acquired intangibles | 12 | 119 | 123 | 239 |
| &nbsp;&nbsp;&nbsp;&nbsp;Strategic initiatives<sup>(b)</sup> | 1632 |  | 1632 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;War related costs<sup>(c)</sup> |  | 1 |  | 22 |
| **Non-GAAP operating profit (loss)** | $2978 | $472 | $6045 | $(150) |
| **GAAP operating margin** | (6)% | (19)% | (5)% | (18)% |
| **Non-GAAP operating margin** | 7% | 1% | 7% | —% |
| **Reconciliation of net loss** |  |  |  |  |
| **GAAP net loss attributable to common stockholders** | $(7750) | $(10004) | $(8869) | $(21100) |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | 4091 | 8902 | 8624 | 15429 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of acquired intangibles | 12 | 119 | 123 | 239 |
| &nbsp;&nbsp;&nbsp;&nbsp;Strategic initiatives<sup>(b)</sup> | 1632 |  | 1632 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;War related costs<sup>(c)</sup> |  | 1 |  | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation adjustments loss (gain) <sup>(d)</sup> | 4464 | (1068) | 2892 | 497 |
| **Non-GAAP net profit (loss) attributable to common stockholders** | $2449 | $(2050) | $4402 | $(4913) |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-GAAP net earnings (loss) per share - basic  | $0.02 | $(0.01) | $0.03 | $(0.03) |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-GAAP net earnings (loss) per share - diluted | $0.01 | $(0.01) | $0.03 | $(0.03) |
| **Reconciliation of weighted average number of shares outstanding:** |  |  |  |  |
| Weighted-average number of shares used in calculating GAAP and Non-GAAP net earnings (loss) per share, basic | 153536740 | 147607504 | 153771875 | 145939847 |
| Effect of dilutive shares used in calculating Non-GAAP net earnings (loss) per share, diluted <sup>(e)</sup> | 12681956 |  | 10186719 |  |
| Weighted-average number of shares used in calculating Non-GAAP net earnings (loss) per share, diluted | 166218696 | 147607504 | 163958594 | 145939847 |

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**Adjusted EBITDA (U.S. dollars in thousands)**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Net loss | $(7750) | $(10004) | $(8869) | $(21100) |
| Financial expense (income), net <sup>(a)</sup> | 4569 | (1010) | 2766 | 488 |
| Provision for income taxes | 424 | 2464 | 1769 | 4772 |
| Depreciation and amortization  | 1094 | 1279 | 2279 | 2585 |
| EBITDA | (1663) | (7271) | (2055) | (13255) |
| Non-cash stock-based compensation expense | 4091 | 8902 | 8624 | 15429 |
| Strategic initiatives <sup>(b)</sup> | 1632 |  | 1632 |  |
| War related costs <sup>(c)</sup> |  | 1 |  | 22 |
| **Adjusted EBITDA** | $4060 | $1632 | $8201 | $2196 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The three months ended June 30, 2025 and 2024, and the six months ended June 30, 2025 and 2024 include $602, $702, $1,210 and $1,406, respectively, of interest expenses and $737, $790, $1,632 and $1,608, respectively, of interest income.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Strategic initiatives for the three and six months ended June 30, 2025 include professional, consulting and other costs associated with strategic initiatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The three and six months ended June 30, 2024 includes 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Represents gains or losses from foreign currency translation adjustments related to the remeasurement of monetary assets and liabilities to the Company's functional currency, using exchange rates in effect as of the end of the reporting period

.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)The effect of these dilutive shares was not included in the GAAP calculation of diluted net loss per share for the three and six months ended June 30, 2025 and 2024 because the effect would have been anti-dilutive

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**Reported KPIs**

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| | | |
|:---|:---|:---|
| | **As of June 30,** | **As of June 30,** |
| | **2025** | **2024** |
| | **(U.S. dollars, amounts in thousands)** | **(U.S. dollars, amounts in thousands)** |
| Annualized Recurring Revenue&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; | $170364 | $165167 |
| Remaining Performance Obligations  | $188124 | $177751 |

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| | | |
|:---|:---|:---|
| | **<br>Three Months Ended June 30,** | **<br>Three Months Ended June 30,** |
| | **2025** | **2024** |
| Net Dollar Retention Rate&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; | 101% | 98% |

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<br>