Published On: Wed, May 5th, 2021

Kaltura Ready for Another Try at an IPO

The company canceled a March IPO at the last minute.

Kaltura Executive Team — Company Photo

Kaltura, an Israeli startup which provides live and on-demand video SaaS solutions, has decided to try again for an initial public offering. The company has filed again for a NASDAQ IPO, but did not reveal the share price it was planning to charge and what total valuation the company was expecting.

Founded in 2006 by its President Michal Tsur and CEO Ron Yekutiel, Kaltura offers a video platform, video management, video publishing, video streaming, interactive video, media management, media distribution, video portals, video players, video solutions, online video, mobile video, video conferencing, video communication, online meetings, meeting solutions, webinars, town halls, lecture capture, cloud tv, OTT TV, video cloud, video platform as a service, media services, vpaas, podcasting, and video messaging services.

Kaltura provides live and on-demand video SaaS solutions to thousands of organizations around the world, engaging hundreds of millions of viewers at home, at work, and at school. This is especially important during the Coronavirus crisis as the shutdowns have required countless people to work remotely. And with schools closed kids are learning from home.

It’s been a roller coaster ride for Kaltura so far this year. It first looked to a $1 billion IPO. Then it said it would be valued at $2 billion. And then in March the company pulled its offering at the last minute because it would not have gotten nearly as much as it wanted per share sold.

The company planned to raise $244-278 million, for a $2 billion valuation. The underwriters had the option to buy shares worth $49-56 million. Shares were expected to sell at 14-$16. The company expected to have 123.1 million shares outstanding after its IPO is completed. Goldman Sachs and BofA Securities were the lead underwriters. Kaltura’s existing shareholders were to sell shares worth $85-98 million.

So what will IPO 2.0 look like for Kaltura? Will it need to drop its share prices and sell fewer shares and will its eventual valuation be lower? And if so by how much?

Well there is good news for Kaltura which may be why it has decided to try again so soon. Globes reports that the new prospectus filed by Kaltura with the SEC shows strong result in Q1 2021. Its revenue was $37.7 million, up 45.6% from the corresponding quarter of 2020. The revenue included $32.3 million from subscribers and $5.4 million from professional services, almost double that of the first quarter of 2020.

While operational loss grew to $8.6 million from $3.9 million in the first quarter of 2020, this can be explained by the Covid crisis. The company recorded a net loss of $15.6 million in the first quarter of 2021, compared with a loss of $5 million in the first quarter of 2020.

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