Kaltura's Nasdaq IPO postponed due to low demand

Kaltura executives: Sergei Liakhovetsky, Yehiam Shinder,  Michal Tsur, Ron Yekutiel, Nuno Sanches, Sigal Srur,Yaron Garmazi  credit: Micha Lobaton

The Israeli cloud video company's offering has been delayed, according to market sources, because it was unable to obtain the valuation it was seeking.

Israeli video cloud management company Kaltura has postponed the initial public offering (IPO) on Nasdaq that it had planned for today, until an unspecified date. The IPO has not been canceled, but according to market sources, delayed due to lower than expected demand at the valuation the company was seeking.

The company filed a prospectus last week, in which it set terms to raise $244-278 million, at a company valuation of $2 billion. In the prospectus, the company said that it would use the funds 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, which has raised $156 million to date according to IVC, develops and markets video management systems for businesses and media organizations.

According to its prospectus, 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.

Published by Globes, Israel business news - en.globes.co.il - on April 1, 2021

© Copyright of Globes Publisher Itonut (1983) Ltd. 2021

Kaltura executives: Sergei Liakhovetsky, Yehiam Shinder,  Michal Tsur, Ron Yekutiel, Nuno Sanches, Sigal Srur,Yaron Garmazi  credit: Micha Lobaton
Kaltura executives: Sergei Liakhovetsky, Yehiam Shinder, Michal Tsur, Ron Yekutiel, Nuno Sanches, Sigal Srur,Yaron Garmazi credit: Micha Lobaton
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