Kaltura, Inc. Common Stock Noble Capital Markets Virtual Equity Investor Conference

Thank you, Jake, and everybody at Noble Capital Markets. Thank you all for joining us today. Looking forward to telling you a little bit about the company, and please follow up with us individually. Let me talk about Kaltura at a glance and jump into a few slides, and then a quick demo, and then Q&A. We're a leading enterprise video SaaS provider, have been around for 20 years. We've expanded in the recent year into providing rich agentic AI experiences. It's giving us a big boost, a lot of excitement around this. You're going to see accolades from the market and the potential of this great technology to boost us forward. Since we're an established business, we have already 1,200 customers, including 25% of the U.S. Fortune 100. We're engaging 10 million people actively every month, sometimes 20, at work, school, and home.

This is a bit about our financials. We've IPO'd in 2021. Our revenue guidance for this year is $184 million with 2% year-over-year. Now is the time to state the entire video technology industry had been stagnant over the last few years post-COVID. A lot of companies have sold out, but they didn't have the potential that Kaltura has to go beyond and add the things I'm going to show you and get back into a blue ocean, which we'll discuss. In recent years, revenue had climbed very moderately. We believe that is about to change. We haven't provided yet guidance for the future, but this is something that you'll see in your own eyes and expecting to take us to a good direction. 97% of our revenue is subscription-based. We have 74% gross margin.

We are operationally profitable with 16.5 latest guidance for adjusted EBITDA after raising it twice. Free cash flow last year, we don't provide guidance, was $13 million. It'll remain positive. It's a stable company, has certain scale of revenue, had slowed down with the entire industry, had done better than others, and is now getting into an exciting place. We have 600 employees around the world. Let me show you a bit what our traditional business was about, and then very quickly move into the exciting new stuff that's synergistic, and then show you a quick demo of the new things. First things that we've been giving for a while is a video content management system. You can see here at the bottom left examples of that.

What it is a system that enables enterprises, whether they're media companies, enterprises, education institutions, to manage all the video on their site. It's uploading, managing, distributing, publishing, engaging, analytics, being able to put it into cross device and create workflows for publishing, the syndication, everything, because media is a very unique data type and you need to manage it in a very unique way. We did not only stop in the regular website internet experiences. We moved to over-the-top TV delivery. Ever since Netflix and the likes have enabled to deliver over-the-internet television, we've enabled systems that manage subscription, that enable long form, that enable live linear. Now big television providers are using Kaltura to deliver television to the living rooms with a clicker.

We do not provide any hardware, set-top boxes, but the heart of the cloud-based SaaS system that manages users, manages content, manages the entirety of the TV and video experiences is Kaltura. On top of these back-end systems that are very robust with many, many APIs getting into the workflows, we have the front-end experiences for users. For example, we have our Video Portal. It's kind of a corporate YouTube, for lack of other words. It enables big organizations, we have many of the largest companies on Earth, putting this so they could run all their videos behind the firewall, divide it into channels and groups so people could find their videos, get down to transcription, down to the spoken word, contribute content in a myriad of different ways, and interact with video with quizzes and interactive capabilities. We've also enabled that to LMSs and CMSs with a big plugin.

For example, schools, many of the R1 schools in the U.S. and around the world are using Kaltura as the core for all their video management. Meaning that you may have live video recording coming from Zoom or Teams, sometimes even Kaltura, but then it comes to our video content management system and is pushed with our LMS integration so that you could consume that within Blackboard, Moodle, Sakai, Canvas. These are the learning systems with our video natively and our functionality natively. Lastly, in 2020, we added our virtual events. We came in with a bang and powered AWS re:Invent at the height of COVID with 600,000 registrants.

This enabled multi-group type session participation, with the ability to manage all of the pre-event preparations, and then during the event engagement, causing people to contribute more and be involved more, lean forward, be active, and then after the event, share all the recordings and create an interactive experience. All that had built a $185 million business for us, but I'm not here to discuss this. It's important to know it's a big established company. What we waited for is for the advent of AI to turn everything that you've heard here into hyper-personalized video experiences, where not everybody will consume the same experience, but given the power of AI, content will be created for every individual, and experiences would be provided for every individual.

Ultimately, this will enable a conversational experience that would drive avatar conversation with video and generative UI, meaning that if you're on the website, the whole website will be formed with information you need, whether it's video first or text in documents and otherwise. We're now enabling that full experience that is personalized, that is interactive, and that is conversational. The first thing that we added is our conversational rich media agents. We acquired a company in November of last year called eSelf, that's their logo on the top there, and we added it to a lot of things we started developing ourself. Now what's happening and being sold this year and getting it the next year is not what you've seen before, but an avatar-first experience that enables people to converse with avatars and move forward into buying, learning, training, et cetera.

The other tool that we have on the right side, following an acquisition we've made of PathFactory earlier this year, enables experience intelligence and orchestration. It understands when people come to a website, what they consume, how they consume it, what order of sequence of content needs to be provided so that people could now interact in a very engaging way with sequences of content. Both of these capabilities enable us to elevate the use cases from where we were before to much more mission-critical with a lot more value. I'll give you a few examples, and then maybe the demo is going to make it a bit more clear. First, in the customer journey, when we power our customers to power their customer journey. Marketing, we used to provide video for the website or video for events.

Now we're talking to folks about event concierges, website concierges, and ABM, account-based marketing concierges. These are avatar people facing that could support individuals, in some cases replace individuals, and enable the full flow from top-of-funnel marketing down to the bottom. To that end, sales. We're now enabling SDRs with our agents and point-of-sale kiosk agents that are able, through an email campaign or within the website or within the point of sale, to have a full conversation with the customer, show them rich content, answer their questions, and then enable them to go and purchase things. The same for customer care around enabling not just the conversation for the care, but generating the rich media content for every individual customer with an avatar-based recorded video or on-demand real-time live conversation with an agent.

Also for field service, we have folks interested to provide remote expert with an agent that understands what's happening in the camera, understands what's happening in the screen, and is able to interact. All these are examples with customer experience journeys. We also have now opportunities for employee journeys. Historically, it was about video for employees, video and events internally. Now it's about enabling full learning and development in the moment, training your staff, enabling salespeople, and enabling also to practice role-play with the avatar as if they're talking to a colleague or as if they're talking to a customer. Internal communication with personalized engagement and personal content, and then help desk to provide personal support. At schools, we've been, again, powering remote learning, but same for all. Now it's about personalized tutoring and about enriching content.

We have discussions with big companies, publishers that have a lot of books, and they're digital books, and they're not interactive. The ability to add an agent and avatar that will talk to the reader and enable to jump to the right place and show them videos and show them additional information, and in some cases also conduct role-play, is hugely valuable. Lastly, where we power people and audiences as we have done in television, everybody had interacted with our tools, but now they have a TV concierge. They have an avatar that speaks to them, enable them to discover content, to engage further. It supports accessibility, it supports monetization. So everything we've done to date is now super boosted, and it's also enabling us to go down market and offer things for smaller customers. These are examples of our customers.

A lot of big names you're going to see here are some of the biggest tech companies on the left, Amazon, Nvidia, Salesforce, Cisco, Oracle, SAP. Regulated industries, the biggest banks in the U.S. and around the world. Big healthcare providers. Professional services, three of the big four. Big manufacturing, automation. Education, half of the R1 schools almost. Media and telecom, 40 million set-top boxes connected to us, and we have quite a few that are north of $1 million a year. This is a recent accolade coming from Gartner saying the following, "Kaltura is the company to beat for video platform services AI," talking about our rapid AI advancements and about the tools that we have and how they're built for governance.