Conference Transcript - KLTR 2026-05-13

Ryan Kuntz, Analyst — Needham

All right, great. Good afternoon. Welcome to Needham's 21st Annual Technology, Media, and Consumer Conference. I'm Ryan Kuntz. I cover the optical and broadband sectors here at Needham. Really excited to have Kaltura here today. We're joined by CEO Ron Yucatel. Ron's going to run through some presentations and some really exciting demos of some of the new technology they're working on. We'll have some time for Q&A at the end. So, Ron, take it away.

Ron Yekutiel, Chairman

Brian, thank you so much, and Edem, as always, for your great support. So we're Kultura, a 20-year-old video technology company powering some of the biggest companies on earth with their video experiences. And we've been expanding this year from providing video experiences to powering full, rich, agentic experiences. And I want to show you some of these. You click on the next slide or if I have a clicker, whatever works. So this is the new digital experience platform that we offer today, and it has three layers to it, creation, management, and experiences. We're all about enabling you to create AI-based content, thank you, to manage it in a way that not only managing the rich media assets, but understanding user context, intent, journey orchestration, and integrating that with other systems, and then delivering very rich video experiences that are increasingly becoming also very conversational in nature. If you look at this layered cake that we offer, again, more deeply from content creation, management, and experience, We've moved from left to right over the course of the last 20 years. We started in blue with basic video capturing and streaming and then rich media content management, all the way up to experiences like video portals and LMS integration into schools. And from 2014 to 2020, expanded into television experiences and also into real-time conferences, events, webinars. And now in the last couple of years, with the advent of AI, I've added more AI creation tools. These are systems that understand all the video and are able to slice down snippets of videos, deliver them in context. If you're a student at school, you're going to get the exact few minutes that you want as opposed to the full boring 68-minute lecture. If you're following up on an event and you want to get what you've missed or what you've seen in a highly immersive way, whether we have flashcards or any forum, you're going to get that. What we've done recently is acquire a couple of companies in the last six months as part of this expansion. One was a company called eSelf.ai, and we acquired that late last year, and they added avatar-based technology in two levels, the bottom right and the top right. The bottom right is the ability to create content with avatar. I was going to show you a bit later how it looks, but basically this is the ability to upload a URL, text, video, whatever it is that you have, and then request to create a video out of that. So whether it creates a highlight and a summary or fresh video out of text or a URL context. It's able to do that plus put an avatar that would narrate it. And then that avatar is going to see in a second where the conversational piece could come to life. So you're not only automatically creating a summary of a support document that people could read and understand through video, but you could click and then the avatar comes back. It's like, okay, how can I help you? And you have a conversation with the avatar and it walks you through deeper understanding of that context. We also acquired as of recent a company called PathFactory. And PathFactory is enabling the understanding of content and users and how to provide the right content to the right user in the right time based on the right context, based on the intent of the user, and to create customer journeys. That means that they go from one content to another content to another content, and it maximizes conversion in the funnel. And so what that enabled us is now to have that full layered cake that content is created it knows how to get to the user in the right time the right place the experiences we have a lot of them from video portals to streaming to events but now also conversational avatars that can be sitted everywhere to replace support augment enhance marketeers trainers teachers in all the verticals we are uh we're catering to and then in real time for that flywheel to continue to surface content so we've been working with some of the biggest customers on earth. We got 1,200 customers, including 35% of the top 50 tech companies. We power Adobe and NVIDIA and Amazon and Salesforce around a myriad of different things. And now, again, increasingly now getting into the agentic piece, we power almost 50% of the U.S. R1 schools. Most of your alma mater, as I'm sure, are covered. A lot of regulated industries, the five largest banks in the U.S., biggest insurance companies, big professional services firm, KPMG, PwC, EY, Accenture, and big media and telecoms with television. And over the years, we've been increasing the amount of customers we have in type and form and also in average ARR. In the different markets we're in, we've been leaders for a long time, and now we've entered with the new agentic stuff on the left side, a market that's called conversation automation and agentic engagement. In fact, PathFactory that we just acquired is alongside Sixth Sense and Qualified, both of which are multi-billion qualified was acquired by Salesforce for their SDR-based capabilities. And now we have that in addition to what we offer. So now, for example, when we offer the avatar-based SDR together with all these capabilities, it is also enhanced by technologies that have been leading. But that is on top of leading the video market for a long, long while, top right quadrant for a long time. So again, these are a bit about the markets. The video market have been under pressure in recent years. We've been a great leading technology there, but the entire industry has not continued to grow. A lot of it had compressed and gotten sold, and so we're kind of emerging and growing out of that market. It's not a pivot. It's not a new direction. It is another layer on top of the basic video capabilities that now offer on top of that agentic stuff. So to be clear, if people use this today at school for teaching and learning as the video content for all the schools, now they could say, well, it's not just video content, but you could deliver snippets of that by offering me an avatar-based teacher assistant and avatar-based tutor that also calls on these videos. And so it's continued to be enriching experiences just in a different way. And the same would go for marketeers that used us for events or webinars or video portals or video on the website. Now they can emerge further with the type of tools we have. And the same for folks that use us in the corporate for training and for onboarding and for learning and for communication that could offer all these additional things. So it's really an increment. A bit about our finance, again, has been very slow growth over recent years, but we believe that the growth engines that we have now with not just new products across both the content creation, management, and experience, but a lot more use cases, a lot more mission criticality, and on top of that, new channels and ways to sell because a lot of it is becoming more so self-served so we could get into bigger distribution opportunities and marketplaces, and also enabling to do that on top of the recently acquired customers through PathFactory so they could be cross-sell. So there's just a lot of things that we believe are going to start fueling growth. We said that's the second half of this year. We expect to start seeing more of that and then go forward. So what I want to do now is show you a bit of how this looks like to wet our eyes. And we're going to start with our IR agent. So if you could please thank you with your support at the back. We're going to go to the investor section. and we can just open up just the browser because we got them all ready. So let's just switch to the browser. So, okay, if you're coming to the investors section of our website, where usually all you had was our investor deck, right there on the top left says investor presentation, but now it says with a Gentic avatar. And I'm proud to tell you, you're going to have a very good looking guy that's going to walk you through the deck and we'll be interactive and we'll be able to explain Kultura for you. So let's go ahead and click on that link. let's hit continue and then let's also prove that we know that it's an ai agent

Operator

and let's rock and roll welcome back last time we were on slide five would you like to pick up

Ron Yekutiel, Chairman

there or start fresh from the beginning hey ron let's start from the beginning navigating to slide

Operator

one welcome i'm ron's avatar here to guide you through kaltura's q126 earnings results what aspects of our performance are you most interested in exploring today

Ron Yekutiel, Chairman

Keep going. Go to slide two.

Operator

Navigating to slide two. This slide covers our forward-looking statements and non-gap definitions. Happy to go into detail if you'd like. Otherwise, let's continue. Yeah, no need for legalese. Why don't you go to slide four? Navigating to slide four. This slide provides a quick overview of Kultura. We are a 20-year-old enterprise video platform that has evolved into an agentic digital experience company serving over 1,200 customers. Would you like to dive deeper into our customer base or perhaps our financial highlights?

Ron Yekutiel, Chairman

Yeah, thank you. I'm wondering, recently I saw 800 customers. Now I see 1,200 customers. What

Operator

happened? That's a great observation. The increase to over 1,200 customers is primarily due to our acquisition of PathFactory, which closed on April 1st, 2026. PathFactory brought in approximately 400 customers, including over 100 enterprise clients, expanding our overall customer base. Does that clarify the change for you? Yeah. Do you have a slide about the PathFactory acquisition? Tell me more about it. Navigating to slide eight, we acquired PathFactory for $22 million in cash. This acquisition significantly enhances our platform with content intelligence and journey orchestration capabilities. PathFactory's existing annual recurring revenue is in the teens of millions, and it contributes to our revenue starting in Q2 2026. Would you like to know more about its strategic importance or financial impact?

Ron Yekutiel, Chairman

No, no, let's skip and tell me more about the product. You got some more information about it somewhere?

Operator

Navigating to slide 38, this section provides more details on our product offerings. We have a comprehensive suite of products ranging from video capturing and streaming to AI-rich media generation. Which specific product area are you most interested in exploring?

Ron Yekutiel, Chairman

Yeah, let's go into the PathFactory edition.

Operator

Navigating to slide 44, PathFactory enhances our platform by providing experience, intelligence, and orchestration. It helps organizations understand user intent and orchestrate personalized digital journeys with dynamic, engaging content. Does this align with what you were looking for?

Ron Yekutiel, Chairman

Yeah, you know what, just I'm curious about your quarter two forecast and guidance.

Operator

navigating to slide 33 for the second quarter of 2026 we expect total revenue to be between 45.2

Ron Yekutiel, Chairman

million dollars and you know what we have somebody just stepped in and he speaks uh japanese could

Operator

you switch to japanese please okay thank you ron so let's kill this part of the tab let's on the top just this one perfect and let's go to the next click here so when we generate avatars

Ron Yekutiel, Chairman

we got a studio that could generate a whole bunch of them each one of them if you want to click on the used car salesman if you scroll down on the left you say it says used car salesman on the left on the bar left bar left bar it says used stay there see the left side where it says culture and then it says underneath that slow down used car salesman just click on the word used car salesman. So if I went back, I created this used car salesman and you could define, if you could scroll, you see the knowledge base, you define you're a used car salesman. Your goal is to get a person to hire you to sell this car. If you scroll down, you could define the goals, just scroll on the page. You can see what the goals are, what the information is, if you could share your screen, where you're at, what you're doing. And if you go on and on, there's all that data. It took minutes to basically take any person. By the way, one of these earlier conference, I took somebody's snapshot of his face, took an audio sample. Within five minutes, he was selling cars. I'm not going to show it to you right now, but it was hilarious because I defined be funny, be witty. And the guy went, okay, I could sell cars better than selling cubes of ice to Eskimos. And then he said, okay, show me your car. And showed him a Lamborghini. He said, wow, that's your car. Here's how much you could get for it. It took minutes. I'm not going to do it right now because you need to get a picture of a car or whatever. Let's go to the next one on the top where it says eSelf AI. in the next one. Let's see some more use cases around avatars, and we're going to show you some more things. So let's click this one. So I believe it's a customer care example. Just do allow while

Operator

visiting the site. Hi, I'm Vanessa, your banking support representative. I can help you open a card or check your card limit. How can I assist you today? Oh, hi, Vanessa. Can I check my card limit? To unlock your card in the app, start by opening the app and tapping on the cards option in the main menu from there select credit and debit card to view your linked cards and could you do that in spanish please to unlock your card in the app start by opening the app and tapping

Ron Yekutiel, Chairman

on the cards option in the main menu from there let's kill this demo so we can move on to there's a few other demos i want to show you let's do this one so real estate example i believe and this see how it's woven into databases like video hi there i'm benjamin a real estate expert i'm

Operator

here to help you find the perfect property for you to buy in Portugal. Ready to begin? Yes. Great. First, could you please tell me which city you prefer, Lisbon or Cascais? Lisbon, please. I support all languages spoken today. Lisbon, Lisbon. You can ask me to speak any language, and I will switch to it. Specifically in this conversation, I do not support Hebrew, but some of the other agents do support

Ron Yekutiel, Chairman

Hebrew. Thank you for that information. Maybe you don't hear me, but Lisbon. I am here to assist you. Please let me know. There's just echo in this room with the mic. It's always hard. It should be in front of the computer. It's safer. But click on this one. Let's go to something that could hear better. Click. Let's try this one. Sarah. Hey there. How was reInvent?

Operator

I can help you recap all the key highlights and learn more on AWS. Ready to start? Yes. I'm glad to hear that. To start, here are some of the key highlights from reInvent 2025. Would you like to dive deeper into any of these or would you like to see more highlights?

Ron Yekutiel, Chairman

How about Tranium 3 Ultra Servers?

Operator

Here is a video about Tranium 3 Ultra Servers. Tranium 3 delivers the industry's best price performance for large-scale AI training, offering 4.4 times more compute and 5 times more AI tokens per megawatt than Tranium 2. What other highlights would you like to explore?

Ron Yekutiel, Chairman

Let's go back to the list and do this in Spanish, please.

Operator

Excelente. Aquí tienes algunos de los puntos clave de reInvent 2025.

Ron Yekutiel, Chairman

Okay, let's kill this demo on the top.

Operator

¿Te gustaría profundizar en alguno de ellos?

Ron Yekutiel, Chairman

I'm not going to, you know, but it's a bit hard because there's echo and there's somebody running in the back. I'll just tell you how it generally works. Part of what we do is applications around what you've seen. The application here enables, for example, to do role play and simulations. So you could define a simulation. For example, I'm trying to hire somebody, fire somebody, train for a sales pitch, talk to the board. And you could have the avatars not just ready to do that simulation with you, but you define criterias around how you're going to be tested and evaluated. And then it gives you feedback across the criterias that you define. And then you could continue to improve from any point in the conversation. So it's not just about human interaction. It's also about, as you've seen, connecting it to other experiences. I didn't show you here. There's avatars that are creating graphs, that are creating graphics, that are creating infographics. So it's really about generative UI interaction that is really rich, but it's really interactive. The last tab, and again, it's a bit hard because we've got somebody operating in the back, and thank you for your help. Let's just go to the last tab. I'm not going to show you it right now. Just click on the last one. This is a walkthrough, which you're invited to come to our website to see the content creation piece of what we do. So what you've seen now is the interaction, some of the avatars, but it's really also about creating video in mass. And the way it's done is you could go to any one of our tools and you create videos that are avatar-led, as I said earlier. It takes minutes. It's self-served. You get your videos ready. And then they, imagine, become interactive just like you've seen now. So it's not just about creating video on demand. It's video on demand that turns live. And again, some examples, again, bear in mind that this is a room with Echo and the computer is in a different place. This is not a typical type of a structure, but all of you are invited to play around. By the way, the IR site open to everybody. You could go there, click on the investor deck and talk to my avatar, but you could also talk to a lot of other avatars at Cotera. So thank you so much for your help in the back there. Really, really appreciate it. And let's open up the conversation and see what questions we have.

Ryan Kuntz, Analyst — Needham

Great. Do we have any questions you'd like to lob in? Yep.

Ron Yekutiel, Chairman

yeah thanks for asking so first of all we are taking care of like i said 1200 customers including some of the biggest on earth so we're already there insofar as upsell opportunities we're divided based on both region and vertical we got our ma and apac team and our north american team within that is divided into our main verticals main verticals being tech financial services education media and telecom and then we have the emerging pieces of it that are including healthcare that's emerging and a few other ones given what you've seen here that really open up for the rest. Each one of them has a CSM slash sales team that's taking care of our existing customers and talking to the rest of them. As we have launched these new capabilities and bear in mind that everything you're seeing here is new from this year. So this is not, well, you're not seeing the huge amount of technology that we've built over 20 years that's catering to 180 million worth of business and this comes on top. But these are now hitting the market and the conversations are afoot from the beginning of the year and they're quite exciting we're just actually just now conducted our new york event with 250 registrants at new york city including some of the biggest companies on earth speakers included the biggest banks big huge tech companies and huge players and they're conversing with us i'll give you examples of things that are being discussed and how we're on the way to hopefully monetize them quickly so on the customer experience you're looking at folks that are interested on the top of funnel marketing and account based marketing. So for example, if they run events with Cultura at large, they have all these AWS runs events with Cultura all over the world and they're catering to so many different customers. But now when they follow up on these events, they have all these customers and it's the same. They all get recordings or reinvent and here's what you missed. The idea here is to create a hyper personalized experience and I didn't show you many of the other products that cut the video, deliver the video would have microsites and they could see exactly what they should be seeing given not just the company they work for but the individual who they are what they attended what they didn't attend and then with an avatar they could actually walk them through and talk to them and take them all the way down funnel then it continues on the bottom funnel we have already companies that are interested in launching sdr sales with us so that's full-on sdr and then we have customer enablement and customer training we have some of these big companies talking to us about the new modern way customer training and also employee training but if you talk about customer training instead of having the same for all courses that they need to go and go through the same route it's about hyper personalized learning and it's about the moments of learning so that it's you're not sitting for an hour it's like here's what you need right now because you have a question about a specific topic and when you do the point here is not to give you a long textual or even audio answer but to give you a video that explains what to do it and to have that through an avatar that generates graphics for you in real time so we're embedded into these full-on conversational follow-ups the same insofar as internal we have for onboarding sales enablement is huge people looking to give my salespeople tools in the real time we have one of the companies that has many thousands of sales peoples around the world that are now playing around with this and going through the motion of how do we power salespeople so we are drinking out of a fire hose i'll just give you the example But what we've done now with the quarterly report, we have folks, including a big company that caters, a multi-billion dollar company that caters to a lot of folks around things like this that say, gee, can we take this and maybe automatically convert the quarterly reports or the annual reports into a video and then have an avatar that would walk you through? And can we add this to everybody's decks? People's minds are kind of racing. So we are at the point of a turn. So this is not scaled. here we are each use case has a team each specific but we have enough people that cater to enough customers and enough prospects around enough industries that know how to address this that we're going to bring the first wins throughout the year that are going to be the lighthouse accounts with some of the biggest companies out there so then we can rinse and repeat you know when people ask me well show me validation whatever like look it's early you know we just launched these things that we're in conversation and poc things and there's like three dozen and great discussions with big companies that are about what to do here. But later in the year, we're going to hopefully bring not just the signs of validation, but also revenue. Anything else? Any other questions?

Ryan Kuntz, Analyst — Needham

Yeah, maybe, Ron, you can touch on PathFactory. I mean, this is a lot about Avatar here. Can you touch on what path that puts you on, and is there synergy between the two?

Ron Yekutiel, Chairman

No, 100%. And the reason that you're seeing the interface, like Avatar, it's because PathFactory is more the engine. like somebody takes you to this brand new car the first thing he does is show you the leather seat and then he says okay let's take it for a spin and it's like oh look how beautiful, look how fast, look how capable somewhere along the line they might pop up the hood and show look at this engine right? PathFactory are part of the engine so we like to say that you know we had some things that are adding a face like what we did with eSelf into our agentic rag capabilities etc. They have eyes because they see the screen. You didn't see this, but they read the screen. They could understand a camera. They can interact. But we've been beefing their brains as well. And in order to beef their brains, we brought in PathFactory. So what you're going to see under the hood in a lot of these are increasingly PathFactory logic. So to be very clear, let's say you now have an SDR agent or an ABM agent. The ABM agent understands you and then needs to provide you a certain flow of experience. The ability not just to speak coherently, but to know who you are understand your intent appreciate all the content that's available within the company and create the right process and journey to be able to provide you the best and most engaging experience and then deliver back to the sales force information about what you consumed and based on that what are you probably going to buy and then be able to also tell the marketeers based on everything what is the better content that they should continue to produce or what is yielding better results or what should be then provided to types of companies that are looking for x or y or z that's path factory technology so again it's it's under the hood because again we're not just a interface we have a nice face we're an avatar interface we're the agentic engine obviously we run an llm whether it be at entropic or or gemini and stuff that run underneath but we have our own models speech to text text to speech speech to video but also the on top the orchestration layer and the intent layer and the intelligence layer that runs on top of the llm to be able to make it hyper relevant for the company and so what we have now is early early we we launched at the adobe summit event our very first agentic revenue experience platform that puts it all together and already talking about top of funnel through bottom of funnel through the combination of everything you've seen with pathfactory And gradually, by the end of the year, it wouldn't be the rudimentary plug-in and connection to the two, but will be the full generative UI, future-looking, agentic experiences that are formed in real time, informed by intent, informed by intelligence. So that's what it's going to be.

Ryan Kuntz, Analyst — Needham

That's great, Ron. How about, you know, on the back end here, you talk about sales use cases, marketing, learning. Do you need back-end integrations to make these work into MarTech platforms?

Ron Yekutiel, Chairman

Which is part of why we acquired PathFactories. So they have like two dozen integrations into all of them. We as a work, Kletura has always been bottom-up API-driven. And in fact, the reason people buy Kletura, number one, the full integration between creation, management experience in our conversation and intelligence. So the quality of the products and there is a full stack is you can get the full flywheel effect instead of disparate point solutions, which is a mess. And then you have silos and then you have broken stuff and then you have complexities and then you have redundant cost. But the second reason people take us is because of how deep we go by way of integration into workflows. Because people, what they need is they need a gentified from agent, a gentified workflows. They need video-fied workflows. They don't need another system that would be an island that would create another separate experience, whether it be a video or another agent. They need to connect to their LLM. They need to connect to their marketing stack. They need to connect to their databases, to their CDP. They want to connect to the agents that they've already built. And by the way, we have a whole architecture that we've released already that enables to connect agent to agent and take everything that we have here for people to build agents automatically on Cotura. So everything that was built bottom-up was built to address this deep, deep integration into what people are doing, which is really, really key. By the way, the third reason is, so I said the breadth of what we have. I said the depth of what we have. the fact that we have all these different things also enables to go across multiple use cases with a single platform. It used to be the people said, I'm just into sales enablement. I'm just doing learning and training. I'm just doing marketing. I'm just doing sales. I'm just doing ABM. I'm just at the top of the website. Then you have yourself seven different vendors that are taking care of really the same thing, which is rich agentic experiences for either customers or employees. You need to be that engine to provide that. Obviously, I'd say the fourth reason is the experience by now that we have because this isn't a startup right a lot of folks are talking about the new ai folks coming in and kind of coming strong and look this is not an app this isn't a very simplistic ai thing because it's connected to workflows because it's already crunching and connected to tons of data we got 180 million assets we got 60 petabytes somebody just told me that if you run this beginning to end it'll take you more than 2 000 years to listen to our videos which is kind of around the age of Christ in order to figure out what we are recording and running for some of the biggest organizations on earth so we are already have some sort of a leg in into having or leg up into having all these different assets that we already manage and then being the preferred trusted advisor consultant supporter around rich experiences as it were to some of the biggest companies on earth so there will be different players that will have a right of entry into what we're discussing here we have a very unique approach coming from the video expertise side and what we're doing is novel i could tell you again and again i hear people saying we haven't seen anything of this quality at this breadth of what we do and needless to say if you open up our ticker kltr and you look at how much it's currently traded at and given the video industry this is not atypical because all video stock has gone down to one times revenue or below or at about and then was sold and there was consolidation and people have shown up because that industry has fallen on its favor, right? So investment opportunities, when you have a high potential and also a low entry point, it's for everybody to make their own decision on what valuations are. But the fact is that this is a one-times revenue company. So if we're able to lift our heads and show the growth and become this agentic AI provider around everything you've seen, not just with the great technology that we offer and the four reasons that I said that we make sense, but also on the back of existing amazing customers and data that we already manage, all we need to do is to show some decent growth and you see yourself a very, very undervalued company.

Ryan Kuntz, Analyst — Needham

Well said. Any further questions? Great. Well, thanks, Ron.

Ron Yekutiel, Chairman

Ryan, thank you so much. And thank you, everybody, in need of them. And we're here for you if you need any more questions. Thank you. Beautiful day. Bye-bye.