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Delaware	20-8128326
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
250 Park Avenue South 10th Floor New York, New York	10003
(Address of principal executive offices)	(Zip Code)

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, $0.0001 par value per share	KLTR	The Nasdaq Stock Market LLC

Large accelerated filer	☐		Accelerated filer	☐
Non-accelerated filer	☒		Smaller reporting company	☐
Emerging growth company	☒

 

While there was not a material impact to the Company’s condensed consolidated financial statements as of and for the three and nine months ended September 30, 2021, these estimates may change, as new events occur and additional information is obtained, as well as other factors related to COVID-19 and its variants that could result in material impacts to the Company’s condensed consolidated financial statements in future reporting periods.

 

Restatement of previously consolidated financial statements

 

The Company has restated its previously issued consolidated financial statements as of the year ended December 31, 2020, to amend the underlying assumptions used in its common stock valuation work. See Note 20 to the consolidated financial statements included in the Company’s Prospectus for further information.

 

Concentration of Risks

 

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, restricted cash and trade receivables.

 

The majority of the Company’s cash, and cash equivalents and restricted cash are invested with major banks in the United States, Israel, and the United Kingdom. Such investments in the United States may be in excess of insured limits and they are not insured in other jurisdictions. In general, these investments may be redeemed upon demand and therefore bear minimal risk.

 

The Company’s trade receivables are geographically dispersed and derived from sales to customers mainly in the United States, Europe, and Asia. Concentration of credit risk with respect to trade receivables is limited by credit limits, ongoing credit evaluation, and account monitoring procedures.

 

Major customer data as a percentage of total revenues:

 

The following table sets forth a customer that represented 10% or more of the Company’s total revenue in each of the periods set forth below:

 

		Three months ended September 30,								Nine months ended September 30,
		2021				2020				2021				2020
		(unaudited)
Customer A (M&T)			10.76	%			10.53	%			*	%			12.05	%

 

*)

Represents an amount that is lower than 10% of the Company’s total revenue.

NOTE 2:

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.)

NOTE 2:

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.)

NOTE 7:

PROVISION FOR INCOME TAXES

 

The Company recognized an income tax expense of $1,497 and $498 for the three months ended September 30, 2021, and 2020, respectively, and $4,749 and $2,404 for the nine months ended September 30, 2021 and 2020, respectively. The tax expense for these periods was primarily attributable to pre-tax foreign earnings. The Company’s effective tax rates of (6)% and (8)% for the three months ended September 30, 2021 and 2020, respectively, and of (12)% and (12)%, for the nine months ended September 30, 2021 and 2020, respectively, differ from the U.S. statutory tax rate primarily due to U.S. losses for which there is no benefit and the tax rate differences between the United States and foreign countries.   The Company has a full valuation allowance on its deferred tax assets. As a result, consistent with the prior year, the Company does not record a tax benefit on its losses because it is more likely than not that the benefit will not be realized.

NOTE 11:    LONG-TERM LOAN

 

In January 2021, the Company refinanced all amounts outstanding under the existing loan agreements as of December 31, 2020, terminated all outstanding commitments, and entered into a new credit agreement (the “Credit Agreement”) with an existing lender, which provides for a new senior secured term loan facility in the aggregate principal amount of $40,000 (the “Term Loan Facility”) and a new senior secured revolving credit facility in the aggregate principal amount of $10,000 (the “Revolving Credit Facility” and, together with the Term Loan Facility, the “Credit Facilities”).

 

In June 2021, the Company entered into an amendment to the Credit Agreement (the “First Amendment”). Pursuant to the First Amendment, the Company borrowed an additional aggregate principal amount of $12,500 and increased commitments under the Revolving Credit Facility to $35,000. Following the effectiveness of the First Amendment, the Company had approximately $12,500 of additional borrowings available thereunder.

 

Borrowings under the Credit Facilities are subject to interest, determined as follows: (a) Eurodollar loans accrue interest at a rate per annum equal to the Eurodollar rate plus a margin of 3.50% (the Eurodollar rate is calculated based on the applicable LIBOR for U.S. dollar deposits, subject to a 1.00% floor, divided by 1.00 minus the maximum effective reserve percentage for Eurocurrency funding), and (b) Alternate Base Rate (“ABR”) loans accrue interest at a rate per annum equal to the ABR plus a margin of 2.50% (ABR is equal to the highest of (i) the prime rate and (ii) the Federal Funds Effective Rate plus 0.50%, subject to a 2.00% floor).

 

The Term Loan Facility is payable in consecutive quarterly installments on the last day of each fiscal quarter in an amount equal to (i) $250 for installments payable on April 1, 2021, through December 31, 2021, (ii) $750 for installments payable on March 31, 2022 through December 31, 2022, and (iii) $1,500 for installments payable on and after March 31, 2023. The remaining unpaid balance on the Term Loan Facility is due and payable on January 14, 2024, together with accrued and unpaid interest on the principal amount to be paid to, but excluding, the payment date. Borrowings under the Revolving Credit Facility do not amortize and are due and payable on January 14, 2024. Amounts outstanding under the Credit Facilities may be voluntarily prepaid at any time and from time to time, in whole or in part, without premium or penalty.

 

As of September 30, 2021, the total future principal payments related to Credit Facilities are as follows:

 

Remaining 2021		$	250
2022			3,000
2023			6,000
2024			52,500
		$	61,750

NOTE 12:

CONVERTIBLE AND REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT)

 

a.

Upon the closing of the Company’s IPO, Series A, B, C, D, D-1 and E of its convertible and redeemable convertible preferred stock automatically converted into 68,325,487 shares of common stock after giving effect to certain adjustments in connection with the 1-to-4.5 forward stock split (the “Stock Split”, see paragraph {d} “Stock Split” within this Note for further information).

 

With respect to Series F redeemable convertible preferred stock, the mechanism of its conversion was determined using a price per share equal to 102% of the offering price of $10.00 per share. As a result, the Company issued 7,937,455 shares of common stock, after giving effect to the Stock Split.

 

As of September 30, 2021, there were no shares of convertible and redeemable convertible preferred stock issued and outstanding.

 

In connection with the IPO, the Company amended and restated its Certificate of Incorporation to change the authorized common stock to 1,000,000,000 shares of common stock, and 20,000,000 shares of preferred stock, all with a par value of $0.0001 per share.

 

Composition of Preferred stock capital of $0.0001 as of December 31, 2020:

 

		December 31, 2020
		Authorized				Issued and outstanding				Aggregate liquidation preference
		Number of shares
Series A Preferred stock			1,043,778				1,043,778			$	1,921
Series B Preferred stock			3,240,085				3,240,085				12,631
Series C Preferred stock			3,434,556				3,403,141				18,110
Series D Preferred stock			2,870,544				2,814,258				17,287
Series D-1 Preferred stock			714,286				714,286				4,354
Series E Preferred stock			4,042,693				3,940,885				40,000
Series F Preferred stock			1,666,667				1,666,667				93,043
Convertible and redeemable convertible Preferred stock			17,012,609				16,823,100			$	187,346

 

On February 3, 2021, SVB Financial Group (“SVB”) converted a Warrant to Purchase Stock issued on February 3, 2011 (the “Series C Warrant”) into shares of the Company’s Series C Convertible Preferred Stock pursuant to the cashless conversion mechanism described in the Series C Warrant. The conversion was exercised for all 31,414 shares covered by the Series C Warrant and resulted in the net issuance of 27,011 shares of the Company’s Series C Convertible Preferred Stock. Pursuant to the terms of the Series C Warrant, the number of net shares issued was determined by dividing (a) the aggregate fair market value of the shares otherwise issuable upon exercise of the Series C Warrant minus the aggregate exercise price of such shares by (b) the fair market value of one share of the Company’s Series C Convertible Preferred Stock.

NOTE 13:

SELECTED STATEMENT OF OPERATIONS DATA

 

		Three months ended September 30,								Nine months ended September 30,
		2021				2020				2021				2020
		(unaudited)
Financial income:
Interest income		$	2			$	-			$	3			$	18
Foreign currency translation adjustment, net			-				-				-				635
			2				-				3				653
Financial expenses:
Bank fees			23				16				504				51
Remeasurement of warrants to fair value			16,822				-				15,046				10,034
Interest expense			766				1,037				2,228				3,062
Foreign currency translation adjustments, net			61				341				335				-
Other			110				131				322				315
			17,782				1,525				18,435				13,462
Financial expenses, net		$	17,780			$	1,525			$	18,432			$	12,809

•

2009: Brought to market our LMS Video solution and began selling to educational institutions

•

2011: Released our Video Portal product and started selling to enterprises

•

2013: Expanded into live video with the launch of our Town Halls product

•

2014: Launched our TV Content Management System for media and telecom companies, following the acquisition of Tvinci Ltd., a leading provider of an OTT TV platform

•

2017: Launched our Lecture Capture solution

•

2018: Launched our Video Messaging product

•

2018: Acquired certain of the assets of Rapt Media, Inc., an interactive personalized video startup

•

2020: Added real time conferencing capabilities to our Media Services following the acquisition of Newrow, Inc., a video conferencing and collaboration platform

•

2020: Released our Webinars, Virtual Events and Meetings products, as well as our Virtual Classroom and TV Solutions

•

Enterprise, Education & Technology: Includes revenues from all of our products, industry solutions for education customers, and Media Services (except for media and telecom customers), as well as associated professional services for those offerings. These solutions are generally sold through our EE&T sales teams. Subscription revenues are primarily generated on a per full-time equivalent basis for on-demand and live products and solutions, per host basis for real-time-conferencing products and solutions, and per participant basis for the Virtual Events product (which intersects on-demand, live, and real-time-conferencing video). Contracts are generally 12 to 24 months in length. Billing is primarily done on an annual basis. The average time it takes to implement EE&T offerings ranges from three to six months.

•

Media & Telecom: Includes revenues from our TV Solution and Media Services for media and telecom customers, as well as associated professional services for those offerings. These offerings are generally sold through our media and telecom sales team. Revenues are generated on a per end-subscriber basis for telecom customers, and on a per video play basis for media customers. Contracts are generally two to five years in length. Billing is generally done on a quarterly or annual basis. It generally takes from nine to 12 months to implement M&T offerings. The upfront resources required for implementation of our Media & Telecom solutions generally exceed those of our other offerings, resulting in a longer period from initial booking to go-live and a higher proportion of professional services revenue as a percentage of overall revenue. Additionally, a higher proportion of revenue comes from customers who choose to license our offerings through private cloud and on-premise deployments, which also impacts our gross margin. In the long-term, we expect the margins for this segment to improve due to the following: increasing the ratio of subscription revenue to professional services with scale, improved efficiencies of both production and professional services costs, and an increase in the proportion of revenues from media customers, which generally entail simpler deployments compared to telecom customers.

		Three Months Ended September 30,								Nine Months Ended September 30,
		2021				2020				2021				2020
		(unaudited)
		(in thousands)
Revenue
Enterprise, Education & Technology		$	30,410			$	21,001			$	87,966			$	56,169
Media & Telecom		$	12,574			$	9,607			$	34,334			$	29,094
Total Revenue		$	42,984			$	30,608			$	122,300			$	85,263
Gross Profit
Enterprise, Education & Technology		$	22,157			$	15,046			$	62,057			$	41,226
Media & Telecom		$	5,660			$	3,048			$	13,872			$	10,319
Total Gross Profit		$	27,817			$	18,094			$	75,929			$	51,545

		For the Three Months Ended September 30,
		2021				2020
		(dollar amounts in thousands)
Annualized Recurring Revenue		$	151,704			$	107,270
Net Dollar Retention Rate			117	%			111	%
Remaining Performance Obligations		$	162,316			$	130,735

•

such measures do not reflect our cash expenditures, or future requirements for capital expenditures or contractual commitments;

•

such measures do not reflect changes in, or cash requirements for, our working capital needs;

•

such measures do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments on our debt;

•

such measures do not reflect our tax expense or the cash requirements to pay our taxes;

•

although depreciation and amortization expense and non-cash stock-based compensation expense are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future and such measures do not reflect any cash requirements for such replacements; and

•

other companies in our industry may calculate such measures differently than we do, thereby further limiting their usefulness as comparative measures.

		Three Months Ended September 30,								Nine Months Ended September 30,
		2021				2020				2021				2020
		(USD in thousands)
Net loss		$	(25,150	)		$	(6,434	)		$	(43,425	)		$	(22,424	)
Financial expenses, net (a)			17,780				1,525				18,432				12,809
Provision for income taxes			1,497				498				4,749				2,404
Depreciation and amortization			594				1,082				1,795				3,177
EBITDA			(5,279	)			(3,329	)			(18,449	)			(4,034	)
Non-cash stock-based compensation expense			3,736				1,033				12,910				2,829
Abandonment costs (b)			-				3,969				-				3,969
Gain on sale of property and equipment (c)			(757	)			-				(757	)			-
Other operating expenses (d)			-				-				1,724				-
Adjusted EBITDA		$	(2,300	)		$	1,673			$	(4,572	)		$	2,764

(a)

The three months ended September 30, 2021 and 2020, and the nine months ended September 30, 2021 and 2020 include $16,822, $0, $15,046 and $10,034 respectively, of remeasurement of warrants to fair value, and $766, $1,037, $2,228 and $3,062 of interest expenses.

(b)

The three and nine months ended September 30, 2020 includes a $3,969 one-time expense related to the abandonment of data center equipment in connection with our transition to a public cloud infrastructure.

(c)

The three and nine months ended September 30, 2021 includes a one-time gain on sale of data center equipment in connection with our transition to a public cloud infrastructure.

(d)

The three and nine months ended September 30, 2021 include other operating expenses related to the forgiveness of loans to certain of our directors and executive officers in connection with the public filing of the registration statement in connection with our IPO.

•

Enterprise, Education & Technology (71% and 69% of revenue for the three months ended September 30, 2021 and 2020, respectively, and 72% and 66% of revenue for the nine months ended September 30, 2021 and 2020, respectively): Our EE&T segment represents revenues from all of our products, industry solutions for education customers, and Media Services (except for M&T customers), as well as associated professional services for those offerings.

•

Media & Telecom (29% and 31% of revenue for the three months ended September 30, 2021 and 2020, respectively, and 28% and 34% of revenue for the nine months ended September 30, 2021 and 2020, respectively): Our M&T segment primarily represents revenues from our TV Solution and Media Services sold to media and telecom customers.

		Three Months Ended September 30,								Period-over-Period Change
		2021				2020				Dollar				Percentage
		(in thousands, except percentages)
Enterprise, Education & Technology revenue:
Subscription revenue		$	27,952			$	19,765			$	8,187				41	%
Professional services revenue			2,458				1,236				1,222				99	%
Total Enterprise, Education & Technology revenue		$	30,410			$	21,001			$	9,409				45	%
Enterprise, Education & Technology gross profit:
Subscription gross profit		$	22,471			$	15,731			$	6,740				43	%
Professional services gross loss			(314	)			(685	)			371				54	%
Total Enterprise, Education & Technology gross profit		$	22,157			$	15,046			$	7,111				47	%

		Three Months Ended September 30,								Period-over-Period Change
		2021				2020				Dollar				Percentage
		(in thousands, except percentages)
Media & Telecom revenue:
Subscription revenue		$	9,723			$	7,123			$	2,600				37	%
Professional services revenue			2,851				2,484				367				15	%
Total Media & Telecom revenue		$	12,574			$	9,607			$	2,967				31	%
Media & Telecom gross profit:
Subscription gross profit		$	5,575			$	3,457			$	2,118				61	%
Professional services gross profit (loss)			85				(409	)			494				121	%
Total Media & Telecom gross profit		$	5,660			$	3,048			$	2,612				86	%

		Three Months Ended September 30,								Period-over-Period Change
		2021				2020				Dollar				Percentage
		(in thousands, except percentages)
Employee compensation		$	9,850			$	5,873			$	3,977				68	%
Subcontractors and Consultants			1,050				751				299				40	%
Other			1,463				651				812				125	%
Total research and development expenses		$	12,363			$	7,275			$	5,088				70	%

		Three Months Ended September 30,								Period-over-Period Change
		2021				2020				Dollar				Percentage
		(in thousands, except percentages)
Employee compensation & commission		$	9,210			$	5,644			$	3,566				63	%
Marketing expenses			1,155				319				836				262	%
Other			892				688				204				30	%
Total selling and marketing expenses		$	11,257			$	6,651			$	4,606				69	%

		Nine Months Ended September 30,								Period-over-Period Change
		2021				2020				Dollar				Percentage
		(in thousands, except percentages)
Enterprise, Education & Technology revenue:
Subscription revenue		$	79,120			$	53,288			$	25,832				48	%
Professional services revenue			8,846				2,881				5,965				207	%
Total Enterprise, Education & Technology revenue		$	87,966			$	56,169			$	31,797				57	%
Enterprise, Education & Technology gross profit:
Subscription gross profit			61,167			$	44,051			$	17,116				39	%
Professional services gross profit (loss)			890				(2,825	)			3,715				132	%
Total Enterprise, Education & Technology gross profit		$	62,057			$	41,226			$	20,831				51	%

		Nine Months Ended September 30,								Period-over-Period Change
		2021				2020				Dollar				Percentage
		(in thousands, except percentages)
Media & Telecom revenue:
Subscription revenue		$	27,363			$	21,773			$	5,590				26	%
Professional services revenue			6,971				7,321				(350	)			(5	)%
Total Media & Telecom revenue		$	34,334			$	29,094			$	5,240				18	%
Media & Telecom gross profit:
Subscription gross profit		$	15,793			$	11,274			$	4,519				40	%
Professional services gross loss			(1,921	)			(955	)			(966	)			(101	)%
Total Media & Telecom gross profit		$	13,872			$	10,319			$	3,553				34	%

		Nine Months Ended September 30,								Period-over-Period Change
		2021				2020				Dollar				Percentage
		(in thousands, except percentages)
Employee compensation		$	28,409			$	16,237			$	12,172				75	%
Subcontractors and Consultants			2,842				2,294				548				24	%
Other			3,799				2,012				1,787				89	%
Total research and development expenses		$	35,050			$	20,543			$	14,507				71	%

		Nine Months Ended September 30,								Period-over-Period Change
		2021				2020				Dollar				Percentage
		(in thousands, except percentages)
Employee compensation & commission		$	26,763			$	16,470			$	10,293				62	%
Marketing expenses			2,661				2,636				25				1	%
Other			2,518				2,345				173				7	%
Total selling and marketing expenses		$	31,942			$	21,451			$	10,491				49	%

		Nine Months Ended September 30,								Period-over-Period Change
		2021				2020				Dollar				Percentage
		(in thousands, except percentages)
Employee compensation		$	20,832			$	9,125			$	11,707				128	%
Professional fees and insurance			2,430				1,094				1,336				122	%
Travel and entertainment			73				158				(85	)			(54	)%
Abandonment of data center equipment			-				3,969				(3,969	)				%
Gain on sale of property and equipment			(757	)			-				(757	)				%
Other			4,879				2,416				2,463				102	%
Total general and administrative expenses		$	27,457			$	16,762			$	10,695				64	%

•

create, issue, incur, assume, become liable in respect of or suffer to exist any debt or liens;

•

consummate any merger, consolidation or amalgamation, or liquidate, wind up or dissolve, or dispose of all or substantially all of our or their respective property or business;

•

dispose of property or, in the case of our subsidiaries, issue or sell any shares of such subsidiary’s capital stock;

•

repay, prepay, redeem, purchase, retire or defease subordinated debt;

•

declare or pay dividends or make certain other restricted payments;

•

make certain investments;

•

enter into transactions with affiliates;

•

enter into new lines of business; and

•

make certain amendments to our or their respective organizational documents or certain material contracts.

		Nine Months Ended September 30,
		2021				2020
		(unaudited)
		(in thousands)
Net cash provided by (used in) operating activities		$	(11,370	)		$	1,720
Net cash used in investing activities			(3,770	)			(1,669	)
Net cash provided by financing activities			166,933				221
Net increase in cash, cash equivalents, and restricted cash			151,793				272
Cash, cash equivalents, and restricted cash at beginning of period			28,355				27,144
Cash, cash equivalents and restricted cash at end of period		$	180,148			$	27,416

•

attract new customers and maintain our relationships with, and increase revenue from, our existing customers;

•

provide excellent customer and end user experiences;

•

maintain the security and reliability of our platform, products and solutions;

•

introduce and grow adoption of our offerings in new markets outside the United States;

•

hire, integrate, train and retain skilled personnel;

•

adequately expand our sales force and distribution channels;

•

continually enhance and improve our platform, products and solutions, including the features, integrations and capabilities we offer, and develop or otherwise introduce new products and solutions;

•

obtain, maintain, protect and enforce intellectual property protection for our platform and technologies;

•

expand into new technologies, industries and use cases;

•

expand and maintain our partner ecosystem;

•

comply with existing and new applicable laws and regulations, including those related to data privacy and security;

•

price our offerings effectively and determine appropriate contract terms;

•

determine the most appropriate investments for our limited resources;

•

successfully compete against established companies and new market entrants; and

•

increase awareness of our brand on a global basis.

•

growing our base of field sales representatives and customer success managers, introducing inside sales and self-serve offerings and distribution channels, and expanding our customer base;

•

extending our product leadership by investing in our Webinars and Meetings products, as well as our Virtual Classroom industry solution, our Virtual Events product, our TV Solution and other recently introduced offerings, as well as by developing new products, expanding our platform into additional industries and enhancing our Media Services offerings with additional core capabilities and technologies;

•

increasing sales within our existing customer base through increased usage of our platform and the cross-selling of additional products and solutions;

•

augmenting our current offerings by increasing the breadth of our technology partnerships and exploring potential transactions that may enhance our capabilities or increase the scope of our technology footprint;

•

continuing to grow our international operations; and

•

general administration, including legal, accounting, and other expenses related to our transition to being a new public company.

•

our ability to attract new customers and increase revenue from our existing customers;

•

the loss of existing customers;

•

subscription renewals, and the timing and terms of such renewals;

•

fluctuations in customer usage from period to period, including as a result of seasonality in our customers’ underlying businesses, which create variability in our cost of revenue;

•

customer satisfaction with our products, solutions, platform capabilities and customer support;

•

mergers and acquisitions or other factors resulting in the consolidation of our customer base;

•

mix of our revenue;

•

our ability to gain new partners and retain existing partners;

•

fluctuations in stock-based compensation expense;

•

decisions by potential customers to purchase competing offerings or develop in-house technologies and solutions as alternatives to our offerings;

•

changes in the spending patterns of our customers;

•

the amount and timing of operating expenses related to the maintenance and expansion of our business and operations, including investments in research and development, sales and marketing, and general and administrative resources;

•

our increasing reliance on a public cloud infrastructure, which will result in higher variable costs compared to our own data centers;

•

network outages;

•

developments or disputes concerning our intellectual property or proprietary rights, our platform, products or solutions, or third-party intellectual property or proprietary rights;

•

negative publicity about our company, our offerings or our partners, including as a result of actual or perceived breaches of, or failures relating to, privacy, data protection or data security;

•

the timing of expenses related to the development or acquisition of technologies or businesses and potential future charges for impairment of goodwill from acquired companies;

•

general economic, industry, and market conditions;

•

the impact of the ongoing pandemic related to COVID-19 and its variants, or any other pandemic, epidemic, outbreak of infectious disease or other global health crises on our business, the businesses of our customers and partners and general economic conditions;

•

the impact of political uncertainty or unrest;

•

changes in our pricing policies or those of our competitors;

•

fluctuations in the growth rate of the markets that our offerings address;

•

seasonality in the underlying businesses of our customers, including budgeting cycles, purchasing practices and usage patterns;

•

the business strengths or weakness of our customers;

•

our ability to collect timely on invoices or receivables;

•

the cost and potential outcomes of future litigation or other disputes;

•

future accounting pronouncements or changes in our accounting policies;

•

our overall effective tax rate, including impacts caused by any reorganization in our corporate tax structure and any new legislation or regulatory developments;

•

our ability to successfully expand our business in the United States and internationally;

•

fluctuations in the mix of on-premise and SaaS/PaaS deployments;

•

fluctuations in foreign currency exchange rates; and

•

the timing and success of new products and solutions introduced by us or our competitors, or any other change in the competitive dynamics of our industry, including consolidation among competitors, customers or partners.

•

breadth and scale of products, solutions and Media Services;

•

ability to provide a cross-organization video platform with multiple interoperable video solutions;

•

ability to support converging experiences across live, real-time and on-demand video;

•

flexibility to build and support custom workflows using video technology;

•

ease of customization and integration with other products;

•

quality of service and customer satisfaction;

•

flexibility of deployment options;

•

ability to innovate quickly;

•

data capabilities, including advanced analytics and AI;

•

enterprise-grade reliability, security and scalability;

•

cost of implementation and ongoing use;

•

brand recognition; and

•

corporate culture.

•

Microsoft/Azure Media Services, Amazon/AWS Media Services and Twilio for our Media Services;

•

Microsoft/Teams and Cisco (through their partnership with Vbrick) for Video Portal, Town Halls and Video Messaging;

•

Zoom, Cisco/Webex and Adobe/Connect for Meetings and Webinars;

•

Intrado and Hopin for Virtual Events;

•

Zoom, Microsoft/Teams and Cisco/Webex for our education solutions; and

•

Synamedia (formerly under Cisco), MediaKind (formerly under Ericsson) and Comcast Technology Solutions for our Media & Telecom Solution.

•

unexpected changes in practices, tariffs, export quotas, custom duties, trade disputes, tax laws and treaties, particularly due to economic tensions and trade negotiations or other trade restrictions;

•

different labor regulations, especially in the European Union, where labor laws are generally more advantageous to employees as compared to the United States, including deemed hourly wage and overtime regulations in these locations;

•

exposure to many evolving stringent and potentially inconsistent laws and regulations relating to privacy, data protection, and information security, particularly in the European Union;

•

changes in a specific country’s or region’s political or economic conditions;

•

risks resulting from the ongoing pandemic related to COVID-19 and its variants, or any other pandemic, epidemic, or outbreak of infectious disease, including uncertainty regarding what measures the U.S. or foreign governments will take in response;

•

risks resulting from changes in currency exchange rates;

•

challenges inherent to efficiently managing an increased number of employees over large geographic distances, including the need to implement appropriate systems, policies, benefits, and compliance programs;

•

difficulties in maintaining our corporate culture with a dispersed workforce;

•

risks relating to the implementation of exchange controls, including restrictions promulgated by the United States Department of the Treasury’s Office of Foreign Assets Control (“OFAC”), and other similar trade protection regulations and measures in the United States or in other jurisdictions;

•

reduced ability to timely collect amounts owed to us by our customers in countries where our recourse may be more limited;

•

slower than anticipated availability and adoption of cloud infrastructures by international businesses, which would increase our on-premise deployments;

•

limitations on our ability to reinvest earnings from operations derived from one country to fund the capital needs of our operations in other countries;

•

potential changes in laws, regulations, and costs affecting our U.K. operations and personnel due to Brexit;

•

limited or unfavorable—including greater difficulty in enforcing—intellectual property protection; and

•

exposure to liabilities under anti-corruption and anti-money laundering laws, including the U.S. Foreign Corrupt Practices Act of 1977, as amended, and similar applicable laws and regulations in other jurisdictions.

•

Any business, technology, product, or solution that we acquire or invest in could under-perform relative to our expectations and the price that we paid or not perform in accordance with our anticipated timetable, or we could fail to operate any such business or deploy any such technology, product, or solution profitably.

•

We may incur or assume significant debt in connection with our acquisitions and other strategic transactions and relationships, which could also cause a deterioration of our credit ratings, result in increased borrowing costs and interest expense, and diminish our future access to the capital markets.

•

Acquisitions and other strategic transactions and relationships could cause our financial results to differ from our own or the investment community’s expectations in any given period, or over the long-term.

•

Pre-closing and post-closing earnings charges could adversely impact operating results in any given period, and the impact may be substantially different from period to period.

•

Acquisitions and other strategic transactions and relationships could create demands on our management, operational resources, and financial and internal control systems that we are unable to effectively address.

•

We could experience difficulty in integrating personnel, operations and financial and other controls and systems and retaining key employees and customers.

•

We may be unable to achieve cost savings or other synergies anticipated in connection with an acquisition or other strategic transaction or relationship.

•

We may assume unknown liabilities, known contingent liabilities that become realized, known liabilities that prove greater than anticipated, internal control deficiencies or exposure to regulatory sanctions resulting from the acquired company’s or investee’s activities and the realization of any of these liabilities or deficiencies may increase our expenses, adversely affect our financial position and/or cause us to fail to meet our public financial reporting obligations.

•

In connection with acquisitions and other strategic transactions and relationships, we often enter into post-closing financial arrangements such as purchase price adjustments, earn-out obligations, and indemnification obligations, which may have unpredictable financial results.

•

As a result of our acquisitions, we have recorded significant goodwill and other assets on our balance sheet and if we are not able to realize the value of these assets, or if the fair value of our investments declines, we may be required to incur impairment charges.

•

We may have interests that diverge from those of our strategic partners and we may not be able to direct the management and operations of the strategic relationship in the manner we believe is most appropriate, exposing us to additional risk.

•

Investing in or making loans to early-stage companies often entails a high degree of risk, and we may not achieve the strategic, technological, financial or commercial benefits we anticipate; we may lose our investment or fail to recoup our loan; or our investment may be illiquid for a greater-than-expected period of time.

•

cease selling or using offerings that incorporate or are otherwise covered by the intellectual property rights that we allegedly infringe, misappropriate, or otherwise violate;

•

make substantial payments for legal fees, settlement payments or other costs or damages, including potentially treble damages if we are found liable for willful infringement;

•

obtain a license to sell or use the relevant technology, which may not be available on reasonable terms or at all, may be non-exclusive and thereby allow our competitors and other parties access to the same technology, and may require the payment of substantial licensing, royalty, or other fees; or

•

redesign the allegedly infringing offerings to avoid infringement, misappropriation, or other violation, which could be costly, time-consuming, or impossible.

•

develop or enhance our platform, products, or solutions;

•

continue to expand our research and development and sales and marketing organizations;

•

acquire complementary technologies, products, or businesses;

•

expand operations in the United States or internationally;

•

hire, train, and retain employees; or

•

respond to competitive pressures or unanticipated working capital requirements.

•

our ability to obtain additional debt or equity financing for working capital, capital expenditures, debt service requirements, acquisitions and general corporate or other purposes may be limited;

•

a portion of our cash flows from operations will be dedicated to the payment of principal and interest on the indebtedness and will not be available for other purposes, including operations, capital expenditures and future business opportunities;

•

certain of our borrowings are at variable rates of interest, exposing us to the risk of increased interest rates;

•

our ability to adjust to changing market conditions may be limited and may place us at a competitive disadvantage compared to less-leveraged competitors; and

•

we may be vulnerable during a downturn in general economic conditions or in our business, or may be unable to carry on capital spending that is important to our growth.

•

create, issue, incur, assume, become liable in respect of or suffer to exist any debt or liens;

•

consummate any merger, consolidation or amalgamation, or liquidate, wind up or dissolve, or dispose of all or substantially all of our or their respective property or business;

•

dispose of property or, in the case of our subsidiaries, issue or sell any shares of such subsidiary’s capital stock;

•

repay, prepay, redeem, purchase, retire, or defease subordinated debt;

•

declare or pay dividends or make certain other restricted payments;

•

make certain investments;

•

enter into transactions with affiliates;

•

enter into new lines of business; and

•

make certain amendments to our or their respective organizational documents or certain material contracts.

•

implement usage-based pricing;

•

discount pricing for competitive products;

•

otherwise materially change their pricing rates or schemes;

•

charge us to deliver our traffic at certain levels or at all;

•

throttle traffic based on its source or type;

•

implement bandwidth caps or other usage restrictions; or

•

otherwise try to monetize or control access to their networks.

•

actual or anticipated changes or fluctuations in our results of operations;

•

the guidance we may provide to analysts and investors from time to time, and any changes in, or our failure to perform in line with, such guidance;

•

announcements by us or our competitors of new offerings or new or terminated contracts, commercial relationships, or capital commitments;

•

industry or financial analyst or investor reaction to our press releases, other public announcements, and filings with the SEC;

•

rumors and market speculation involving us or other companies in our industry;

•

future sales or expected future sales of our common stock;

•

investor perceptions of us and the industries in which we operate;

•

price and volume fluctuations in the overall stock market from time to time;

•

changes in operating performance and stock market valuations of other technology companies generally, or those in our industry in particular;

•

failure of industry or financial analysts to maintain coverage of us, the issuance of new or updated reports or recommendations by any analysts who follow our company, or our failure to meet the expectations of investors;

•

actual or anticipated developments in our business or our competitors’ businesses or the competitive landscape generally;

•

litigation involving us, other companies in our industry or both, or investigations by regulators into our operations or those of our competitors;

•

developments or disputes concerning our intellectual property or proprietary rights or our solutions, or third-party intellectual or proprietary rights;

•

announced or completed acquisitions of businesses or technologies, or other strategic transactions by us or our competitors;

•

actual or perceived breaches of, or failures relating to, privacy, data protection or data security;

•

new laws or regulations or new interpretations of existing laws or regulations applicable to our business;

•

actual or anticipated changes in our management or our board of directors;

•

general economic conditions and slow or negative growth of our target markets; and

•

other events or factors, including those resulting from war, incidents of terrorism or responses to these events.

•

the delegation to our board of directors of the exclusive right to expand the size of our board of directors and to elect directors to fill a vacancy created by any such expansion or the resignation, death or removal of a director, which will prevent stockholders from being able to fill vacancies on our board of directors;

•

the division of our board of directors into three classes, with each class serving staggered three-year terms, which may delay the ability of stockholders to change the membership of a majority of our board of directors;

•

limitations on convening special stockholder meetings, which could make it difficult for our stockholders to adopt desired governance changes;

•

advance notice procedures, which apply for stockholders to nominate candidates for election as directors or to bring matters before an annual meeting of stockholders, which may discourage or deter a potential acquirer from conducting a solicitation of proxies to elect the acquirer’s own slate of directors or otherwise attempting to obtain control of our company;

•

a prohibition on stockholder action by written consent, which means that our stockholders will only be able to take action at a meeting of stockholders;

•

a forum selection clause, which means certain litigation against us can only be brought in Delaware;

•

no authorization of cumulative voting, which limits the ability of minority stockholders to elect director candidates;

•

directors will only be able to be removed for cause and only by the affirmative vote of two-thirds of the then outstanding voting power of our capital stock;

•

certain amendments to our Certificate of Incorporation and Bylaws will require the approval of two-thirds of the then outstanding voting power of our capital stock;

•

the affirmative vote of two-thirds of the then-outstanding voting power of our capital stock, voting as a single class, will be required for stockholders to amend or adopt any provision of our Bylaws; and

•

the authorization of undesignated or “blank check” preferred stock, the terms of which may be established and shares of which may be issued without further action by our stockholders, which could be used to significantly dilute the ownership and voting rights of a hostile acquirer.

•

we are required to have only two years of audited financial statements and only two years of related Management’s Discussion and Analysis of Financial Condition and Results of Operations disclosure;

•

we are not required to engage an auditor to report on our internal controls over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act;

•

we are not required to comply with any requirement that may be adopted by the PCAOB regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and the financial statements (i.e., an auditor discussion and analysis);

•

we are not required to submit certain executive compensation matters to stockholder advisory votes, such as “say-on-pay,” “say-on-frequency” and “say-on-golden parachutes;” and

•

we are not required to disclose certain executive compensation related items such as the correlation between executive compensation and performance and comparisons of the chief executive officer’s compensation to median employee compensation.

		Incorporated by Reference				Filed/
Exhibit Number	Exhibit Description	Form	File No.	Exhibit	Filing Date	Furnished Herewith
3.1	Amended and Restated Certificate of Incorporation of Kaltura, Inc.	8-K	001-40644	3.1	07/23/2021
3.2	Amended and Restated Bylaws of Kaltura, Inc.	8-K	001-40644	3.2	07/23/2021
4.1	Specimen Common Stock Certificate of Kaltura, Inc.	S-1/A	333-253699	4.1	03/23/2021
4.2	Sixth Amended and Restated Investor Rights Agreement, dated as of July 22, 2016, by and among Kaltura, Inc. and each of the investors listed on Exhibit A thereto, as amended.	S-1/A	333-253699	4.2	03/23/2021
4.3	Warrant to Purchase Shares of Common Stock, dated as of March 26, 2020, issued by Kaltura, Inc. to Zarom Holding Limited, as amended	S-1/A	333-253699	4.7	03/23/2021
10.1	Credit Agreement, dated as of January 14, 2021, by and among Kaltura, Inc., the several banks and other financial institutions or entities from time to time party thereto, Silicon Valley Bank, as the Issuing Lender and the Swingline Lender, and SVB, as Administrative Agent, as amended.	S-1/A	333-253699	10.1	07/12/2021
10.2	Kaltura, Inc. 2021 Incentive Award Plan.	S-1/A	333-253699	10.7	03/23/2021
10.3	Form of Stock Option Award Agreement under the Kaltura, Inc. 2021 Incentive Award Plan.	S-1/A	333-253699	10.8	03/23/2021
10.4	Form of Restricted Stock Unit Award under the Kaltura, Inc. 2021 Incentive Award Plan.	S-1/A	333-253699	10.9	03/23/2021
10.5	Kaltura, Inc. Non-Employee Director Compensation Plan.	S-1/A	333-253699	10.17	03/23/2021
10.6	Form of Indemnification Agreement between Kaltura, Inc. and its directors and officers.	S-1/A	333-253699	10.18	03/23/2021
31.1	Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a).					*
31.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a).					*
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350.					**
32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350.					**
101.INS	Inline XBRL Instance Document - the instance document does not appear in the Interactive Data file because its XBRL tags are embedded within the Inline XBRL document					*
101.SCH	Inline XBRL Taxonomy Extension Schema Document					*
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document					*
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document					*
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document					*
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document					*
104	Cover Page Interactive Data File (as formatted as Inline XBRL and contained in Exhibit 101)					*

		KALTURA, INC.
Date: November 04, 2021		By:	/s/ Ron Yekutiel
			Ron Yekutiel
			Chairman and Chief Executive Officer
			(Principal Executive Officer)
Date: November 04, 2021		By:	/s/ Yaron Garmazi
			Yaron Garmazi
			Chief Financial Officer
			(Principal Financial and Accounting Officer)