Israeli video cloud management company Kaltura has filed a revised prospectus with the US Securities and Exchange Commission (SEC), setting the terms for its Initial Public Offering (IPO) on Nasdaq at a valuation of $2 billion. The company, which develops and markets video management systems for businesses and media organizations plans to issue shares at $14-$16 per share.
Kaltura plans to raise $244-278 million with the underwriters having an option to buy shares worth $49-56 million. At the same time, the company's existing shareholders will sell shares worth $85-98 million. In the prospectus, Kaltura says that it will use some of the capital raised for acquisitions of companies or technologies as well as general business purposes such as working capital, R&D expenses, and marketing and sales activities.
Founded in 2006, Kaltura has raised $156 million, according to IVC. All the company's major shareholders will be selling shares in the IPO including Kaltura's founders chairman and CEO Ron Yekutiel, president Dr. Michal Tsur, Dr. Shay David, and Eran Etam. If the shares are sold at the mid-range of $15 million, Yekutiel will sell shares for $16.3 million and be left with a 5% stake worth $97.2 million.
This is a second exit for Tsur who founded data security company Cyota in 1999 together with partners including Naftali Bennett and which was sold to RSA for $145 million in 2005. Tsur will sell shares for $9 million and remain with a $77.7 million stake. David will sell shares for $3.8 million and remain with a $71.8 million stake and Etam will sell shares for $3.9 million and remain with a $71.1 million stake.
Kaltura's biggest shareholder .406 Ventures will sell shares for $13.2 million and remain with a 13.2% stake and Nexus India will sell shares for $12 million. Other shareholders including Intel Capital will each sell shares for several million dollars.
Kaltura's revenue grew by 23.7% to $120 million, and that in each quarter last year revenue grew in comparison with the previous quarter. Revenue breaks down into revenue from subscriptions and revenue from professional services. The gross margin on subscriptions is 72.6%, whereas professional services generated a gross loss, although a smaller one than in 2019. In 2020, subscriptions revenue grew by 22.8% to $104 million. Growth in professional services revenue was higher, at 29.7%, to a total of $16.4 million.
Kaltura is not profitable, and in 2020 it posted an operating loss of $8.1 million, which compares with an operating loss of $2.8 million in 2019. The wider loss was a result of a rise in operating expenditures. The bottom line in 2020 was a net loss of $38.7 million, following a net loss of $15.6 million in 2019.
Published by Globes, Israel business news - en.globes.co.il - on March 24, 2021
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