Ron Yekutiel: Thank you, Erica, and thank you, everyone, for joining us on the call this morning. Today, we reported total revenue for the fourth quarter of 2023 of $44.5 million, up 1% year-over-year and subscription revenue of $40.8 million, up 3% year-over-year. Adjusted EBITDA for the quarter was $0.8 million. We posted record high total revenues in the fourth quarter, which also marked the fifth consecutive quarter of year-over-year growth. The quarter wrapped up a year where, as we had previously forecasted, we saw increased subscription revenue and growth rates and despite declining professional services revenues, as expected, total revenue growth rates also increased. As for our bottom line, the fourth quarter was also a second consecutive quarter of adjusted EBITDA profitability and a positive cash flow from operations, both for the first time since 2020.

It was also our highest adjusted EBITDA results since the fourth quarter of 2020. This concluded the year with marked bottom line improvements year-over-year, where we posted $2.5 million of adjusted EBITDA losses compared to $28.3 million in the prior year and reduced our cash flow used for operations by $38.5 million from $46.8 million to $8.3 million. As we draw 2023 to a close, we are pleased to have achieved and surpassed our revenue and adjusted EBITDA guidance for the year, delivering on our goal of accelerating revenue growth while also returning to adjusted EBITDA profitability in the past two quarters and has forecasted dramatically improving our cash flows. At that end, we are reaffirming our expectation of posting both a positive adjusted EBITDA and positive cash flow from operations this year.

Moving on to the business update. While bookings and retention results in the fourth quarter continued to be lower than in 2022, we closed more deals achieved higher new bookings and posted a higher gross retention rate than in each of the first three quarters of 2023. In addition, the top of our sales funnel continued to show a sequential increase in the number of qualified leads in the passing quarter. We believe that our differentiated horizontal platform and continuous product portfolio expansion enables our customers to increasingly consolidate many video use cases internally and externally around Kaltura. And by doing so, to reduce their costs and complexities and avoid this joint workflows and content silos. This consolidation brought forth in 2023 larger deals and continued to increase our average customer size as evidenced by record high E&C new logo ARPU and a record high average ARR per customer in 2023, which we believe will help our future growth.

In the fourth quarter, we saw our new event platform [Gartner Tech]. We extended our reach within a pair of global enterprise software giants to support them with our events and webinar offerings, both for internal communication and training as well as external marketing and partner enablement. Additionally, a prominent technology company already leveraging our event platform has substantially broadened the range of events supported by our platform and the leading U.S. automotive company upgraded from Kaltura webcasting to Kaltura events. Datavant webinars, a Fortune 100 financial institution, one of Kaltura's largest and earliest customers have purchased additional accessibility features to further extend the reach and inclusion of their internal video communication.

One of the world's largest restaurant chains expanded its usage and increased its access to Kaltura's product suite capabilities in a very well-known global leader in the direct-to-consumer streaming space, a new customer, selected Kaltura Power its internal video-on-demand portal for employees and partners. In the education sphere, we continued our global expansion by securing a large European university and a prestigious European business school as new customers after conducting successful proof of concept with our product. We also continue to increase the number of end users of our media and telecom platform with our top EMEA customers migrating hundreds of thousands of new households into our Cloud TV service. On the product front, during the fourth quarter, we continued boosting our event platform with roles and permissions, enriched registration reporting an advanced landing page editor and additional features that encourage interactivity of both virtual and in-person audiences.

Our video portal now enables users to seamlessly stitch videos together, and we also improved the user experience and branding options. We added to our video player additional call to action capabilities and enhanced podcast experience and customizable pre and post broadcast fleets. Kaltura real-time conferencing rooms continue to evolve with the launch of our proprietary new white board, which complements existing third-party integrations. We have also introduced simulcast features to improve broadcast quality and network efficiency. On the infrastructure front, we continue to support new regional SaaS cloud and have made strategic investments in enhancing our capabilities around hold-your-own key options, enforcing our commitment to security and data sovereignty.

As for AI, as previously discussed, we believe that we are in the cusp of a transformative era for video-first AI-infused experiences will drive great engagement and improve business results. In the passing quarter, we expanded our AI assistant to provide real-time insights and suggested actions to organizers and presenters during webinars and other events by identifying changes in viewer engagement in real time and initiating actions such as launching relevant quizzes and fold and evoking audience reaction. The AI accelerator program, which we launched last quarter, continued to grow with more technology partners joining and more customers exploring with us the possibilities of AI-powered video experiences and how they can support their interest and needs and boost their business results.

Throughout 2024, we expect to gradually cater to many of their needs and for AI to become an increasingly important part of our offering. As we look ahead to 2024 and beyond, we anticipate a more favorable market environment that is expected to ease budgetary constraints for enterprises, particularly in North America. We believe that enterprises will gradually reinvest in digital technologies, including a video-based experiences for employees, customers and prospects. We believe that this will be fueled by an increasingly hybrid workplace with lesser travel in order to reduce costs and carbon emissions by a growth in the millennial and Gen Z workforce, which is both savvy and reliant on video and by the much greater expected ROI generated by AI infused video experience.

We believe Kaltura provides the most robust, engaging and impactful advanced video-based solutions, powering use cases such as marketing and customer engagement, employee and partner communication and training, student learning and engagement and online entertainment. Beyond this, we believe we are unique in offering a single platform that addresses all these use cases and others to follow. As mentioned, we see the single platform approach not only boosting functionality, reliability and scalability, but also being much more cost effective. While we believe our advantages helped us outperform many of our competitors in the passing challenging year, we believe that will become even more impactful when improved macroeconomic conditions are expected to cause customers to start making longer-term investments to elevate their system's quality, performance and efficiency.

As mentioned, we've already seen this trend affect our entire sales funnel when growing leading demand indicators such as the number of new qualified leads through fueling higher win rates to continue to increase our new logo ARPU and average ARR per customer. In 2024, we will continue to focus on and cater to the growing demand for our event platform from existing and new customers for both internal and external use cases. We plan to continue our expansion down market and increase the size of our commercial sales team that sells low-touch solutions to SMEs and to departments within large enterprises. At that end, while in 2023, we reduced for the first time the size of our sales team to match the lower enterprise budgets and longer sales cycles and to address our profitability goals.

This year, we plan to gradually regrow our sales force. In summary, we wrapped up a tough year with strong macroeconomic-induced headwinds that weighed down our new bookings and gross retention and generated a revenue growth rate that albeit better than last year's guidance than that of the previous year is far below our historical level. We entered 2024 with a robust product offering, a clear strategic direction and a validated go-to-market thesis. With market conditions improving, enterprise spending recovering and new opportunities arising from AI, we believe we are well positioned to capture the increasing demand for video experiences. While we believe we have the right products and market positioning to support faster growth given the still unclear macro conditions and considering last year's outcome, we're thoughtful with our revenue guidance for 2024.

Regardless of our top line growth, we are reaffirming our expectations of posting both a positive adjusted EBITDA and positive cash flow from operations this year. Now before handing it over to Yaron Garmazi, our CFO, to discuss our financial results in more detail, I would like to address his planned transition, which we announced a few weeks ago. First, I'd like to extend to earn our deepest gratitude for his great contributions to the company throughout the past seven years. On commitment to Kaltura's growth and in professional excellence have been invaluable. We wish him success in his next endeavor. As we have shared, iron shall remain CFO until March 1 and will continue to support the company throughout the second quarter to ensure a smooth transition.

We have a saying at Kaltura. Once a Kalturian always a Kalturian. While you one is moving on, you'll be seeing close and will forever remain a partner and friend of the company and me. With that, I am pleased to warm me welcome and briefly introduce to you our soon to be CFO, Mr. John Doherty. John joined us earlier this month and she'll formally take the reins of CFO on March 1. John brings more than three decades of financial and operational experience. Most recently, he served as CFO and COO at Magic Leap. Prior to that, he served as CFO of publicly traded in InterXion until after its $8 billion-plus acquisition. Part of that John held a variety of senior financial and operational roles at Verizon, including Head of Corporate Development and Verizon Ventures, Head of Investor Relations and CFO of multiple large divisions.

I am excited to welcome John to our team. His experience in both financial and corporate development functions of large publicly traded enterprises will greatly contribute to our efforts, including our plans to explore strategic opportunities that advance our commercial goals. Welcome on board, John?

John Doherty: Thank you, Ron, and hello to everyone on the call today. I'm very excited to join Ron and the talented Kaltura team. I firmly believe that Kaltura has the potential for significant growth in an exciting domain and that it is well positioned to lead the market. I'm looking forward to the exciting journey ahead and to getting to know many of you personally soon.

Ron Yekutiel: Thank you, John. And now over to you, Yaron.

Yaron Garmazi: Thank you, Ron, and good morning, everyone. I would like to start off by welcoming John and thanking Ron and the team for the amazing past seven years. My period at Kaltura left me with great learning, close friendship and very found memory. I'm very excited about the road ahead of the company, and I'm confident that it has the right leadership, right product and the right strategy in place to return to a meaningful profitable growth and to lead the market. As Ron said, I shall be supporting John and the company on a full-time basis throughout the second quarter to ensure a smooth transition. As Ron also said once a Kalturian always a Kalturian. Now back to our financial results. As I review the fourth quarter and the full year fiscal year results today, please note that I will be referring to a non-GAAP metric adjusted EBITDA.

A reconciliation of CapEx to non-GAAP financials is included in today's earnings release, which is available on our website at www.investors.kaltura.com. Total revenue for the fourth quarter ended December 31, 2023, was $44.5 million, up 1% year-over-year. Subscription revenue was $40.8 million, up 3% year-over-year, while professional services revenue contributed $3.7 million, down 18% year-over-year. The remaining performance obligations were $185.3 million, up 8% year-over-year, of which we expect to recognize 59% as revenue over the next 12 months. Annualized recurring revenue was $164.7 million, up 3% year-over-year. Our net dollar retention rate was 99% in the fourth quarter, up from 96% in Q4 2022. Within our E&P segment, total revenue for the fourth quarter was $31.6 million, up 5% year-over-year.

Subscription revenue was $30.4 million, up 5% year-over-year, while professional services revenue contributed $1.1 million, up 13% year-over-year. Within our M&T segment, total revenue for the fourth quarter was $12.9 million, down 8% year-over-year. Subscription revenue was $10.4 million, down 2% year-over-year, while professional services revenue contributed $2.5 million, down 27% year-over-year. The gross profit in the quarter was $28.6 million, representing a gross margin of 64%, up from 63% in Q4 2022. Within our E&P segment, gross profit for the fourth quarter was $23 million, representing a gross margin of 73%, up from 70% gross margin in Q4 2022. Within our M&T segment, gross profit for the fourth quarter was $5.6 million, representing a gross margin of 44%, down from 46% gross margin in Q4 2022.

GAAP net loss in the quarter was $12.1 million or $0.09 per diluted share. Adjusted EBITDA for the quarter was $0.8 million, improving from a negative $4.2 million in Q4 of 2022. And now for the full year fiscal year results. Total revenue for the year ended December 31, 2023, was $175.2 million, up 4% year-over-year. Subscription revenue was $162.8 million, up 7% year-over-year, while professional services revenue contributed to $12.4 million, down 24% year-over-year. Within our EE&T segment, total revenue for 2023 was $125.2 million, up 4% year-over-year. Subscription revenue was $120.6 million, up 6% year-over-year, while professional services revenue contributed $4.6 million, down 31% year-over-year. Within our M&T segment, total revenue for 2023 was $50 million, up 3% year-over-year.

Subscription revenue was $42.2 million, up 8% year-over-year, while professional services revenue contributed $7.9 million, down 19% year-over-year. Our net dollar retention rate was 100% in 2023 and was 100% in 2022. GAAP gross profit in 2023 was $112.2 million, representing a gross margin of 64%, up from 63% gross margin in 2022. Subscription revenue gross margin was 73%, down from 74% in 2022. Within our E&P segment gross profit in 2023 was $91.6 million, representing a gross margin of 73%, up from 70% gross margin in 2022. Subscription revenue gross margin was 79%, up from 78% in 2022. Within our MMP segment, gross profit in 2023 was $20.6 million, representing a gross margin of 41%, down from 48% gross margin in 2022. Subscription revenue gross margin was 55%, down from 63% in 2022.

GAAP net loss in 2023 was $46.4 million or $0.34 per diluted share. Adjusted EBITDA in 2023 was negative $2.5 million, improving from a negative of $28.3 million in 2022. Turning to the balance sheet and cash flow. We ended the quarter with $75.2 million in cash and marketable securities. Net cash provided by operating activity was $1.6 million in the quarter compared to $5.8 million net cash used in operating activities in Q4 2022. For the full year 2023, net cash used in operating activity was $8.3 million compared to $46.8 million net cash used in operating activities in 2022. In the fourth quarter, we also entered into a new agreement with our lenders, extending the maturity and amending the certain financial terms and discussing our Form 8-K filed on December 27, 2023.

I would now like to turn to our outlook for the first quarter of 2024 and for the fiscal year ending December 31, 2024. In the first quarter, we expect subscription revenue to range from a 1% decrease to a 1% increase to between $39.9 million and $40.6 million and total revenue to range from a 1% decrease to a 1% increase to between $42.7 million and $43.5 million. We expect an adjusted EBITDA to be between a negative $0.5 million and a positive $0.3 million. For the full year, we expect subscription revenue to range from a 1% decrease to a 1% increase to between $161.2 million and $164.2 million and total revenue to range from a 1% decrease to a 1% increase to between $173.7 million and $176.7 million. We expect adjusted EBITDA to be between $0 million and $1 million.

In summary, due to a tough macro condition and industry headwind, we closed a much slower growth year than usual, albeit better than last year's guidance and that of the previous year. While we believe that we have the right product and market positioning to accelerate growth and that market conditions shall gradually improve, considering the market uncertainty and last year's outcome, we are thoughtful with our guidance for 2024. We are set aside to have achieved our bottom-line accrual and cash flow goal from the passing year and are reaffirming our expectation of posting above positive adjusted EBITDA and the positive cash flow from operations this year. With that, we will open the call for questions. Operator?

See also 25 Safest Cities in Asia to Visit In 2024 and Top 20 Most Valuable Travel Companies in the World.

To continue reading the Q&A session, please click here.