KALTURA INC

Previous wording

Contracts in this segment generally extend for two to five years, with billing performed on either a quarterly or annual basis. Implementation of TV offerings typically requires six to 12 months, with upfront resource requirements generally higher than those for our other offerings. Consequently, there is an extended period from initial booking to go‑live, accompanied by a higher proportion of professional services revenue relative to overall revenue. Additionally, a greater share of revenue in this segment is derived from customers licensing our offerings through private cloud and on‑premise deployments, which has an impact on our gross margin.

Current wording

•Media & Telecom: The M&T segment includes revenue from our Entertainment & Monetization use cases, along with the associated professional services. For customers of our telecom TVCMS and TV Streaming Applications, revenue is recognized primarily on a per end‑subscriber basis, while media customers leveraging our Online Video Platform are billed on a platform usage‑license basis. Contracts in this segment generally extend for two to five years, with billing performed on either a quarterly or annual basis. Implementation of TV offerings typically requires six to 12 months, with upfront resource requirements generally higher than those for our other offerings. Consequently, there is an extended period from initial booking to go‑live, accompanied by a higher proportion of professional services revenue relative to overall revenue. Additionally, a greater share of revenue in this segment is derived from customers licensing our offerings through private cloud and on‑premise deployments, which has an impact on our gross margin.

Previous wording

Reflected below is a summary of reportable segment revenue and reportable segment gross profit for the three months ended March 31, 2025 and 2024.

Current wording

Reflected below is a summary of reportable segment revenue and reportable segment gross profit for the three and six months ended June 30, 2025 and 2024.

Previous wording

We employ a "land and expand strategy" with the aim of having our customers increase their usage of our offerings and/or purchase additional offerings over time. For the three months ended March 31, 2025 and 2024, our Net Dollar Retention Rate was 107% and 98%, respectively. We grew our Annualized Recurring Revenue (as defined below), by 7% in the three months ended March 31, 2025, compared to the three months ended March 31, 2024, demonstrating our ability to land new customers with higher spending levels and increase revenue from our existing customers.

Current wording

We employ a "land and expand strategy" with the aim of having our customers increase their usage of our offerings and/or purchase additional offerings over time. Our Net Dollar Retention Rate (as defined below) measures our success in retaining and growing recurring revenue from our existing customers over a given period. For the three months ended June 30, 2025 and 2024, our Net Dollar Retention Rate was 101% and 98%, respectively. We grew our Annualized Recurring Revenue (as defined below) by 3% in the three months ended June 30, 2025, compared to the three months ended June 30, 2024, demonstrating our ability to land new customers with higher spending levels and increase revenue from our existing customers.

Previous wording

Many of our customers run multiple Kaltura products for various use cases, ranging from employee training and collaboration to external marketing and virtual events. By cross-selling and upselling additional solutions—such as our newly introduced Gen AI-powered capabilities and expanded application suites—we aim to drive higher usage and expand overall revenue. Sustained customer adoption and usage growth are also supported by strong integration, ongoing support, and a commitment to evolving security and compliance requirements. We are focused on increasing sales within our existing customer base through increased usage of our platform and the cross-selling of additional products and solutions. For the three months ended March 31, 2025, our Net Dollar Retention Rate was 107%. In order for us to increase revenue within our customer base, we will need to maintain engineering-level customer support and continue to introduce new products and features as well as innovative new use cases that are tailored to our customers' needs.

Current wording

Many of our customers run multiple Kaltura products for various use cases, ranging from employee training and collaboration to external marketing and virtual events. By cross-selling and upselling additional solutions — such as our newly introduced Gen AI-powered capabilities and expanded application suites — we aim to drive higher usage and expand overall revenue. Our strong integration, ongoing support, and a commitment to evolving security and compliance requirements also helps us support sustained customer adoption and usage growth. We are focused on increasing sales within our existing customer base through increased usage of our platform and the cross-selling of additional products and solutions. For the three months ended June 30, 2025, our Net Dollar Retention Rate was 101%. In order for us to increase revenue within our customer base, we will need to maintain engineering-level customer support and continue to introduce new products and features as well as innovative new use cases that are tailored to our customers' needs.

Previous wording

Although we have invested significantly in our business to date, we believe that we still have a significant market opportunity ahead of us. We intend to continue to make investments to support the growth and expansion of our business and to increase revenue. We believe there is a significant opportunity to continue our growth. We expect that our cost of revenue and operating expenses will fluctuate.

Current wording

Although we have invested significantly in our business to date, we believe that we still have a significant market opportunity ahead of us. We intend to continue to make investments to support the growth and expansion of our business and to increase revenue. We believe there is a significant opportunity to continue our growth. We expect that our cost of revenue and operating expenses will fluctuate over time.

Previous wording

Our Net Dollar Retention Rate, which we use to measure our success in retaining and growing recurring revenue from our existing customers, compares our recognized recurring revenue from a set of customers across comparable periods. We calculate our Net Dollar Retention Rate for a given period as the recognized recurring revenue from the latest reported fiscal quarter from the set of customers whose revenue existed in the reported fiscal quarter from the prior year (the numerator), divided by recognized recurring revenue from such customers for the same fiscal quarter in the prior year (denominator). For annual periods, we report Net Dollar Retention Rate as the arithmetic average of the Net Dollar Retention Rate for all fiscal quarters included in the period.

Current wording

Our Net Dollar Retention Rate, which we use to measure our success in retaining and growing recurring revenue from our existing customers, compares our recognized recurring revenue from a set of customers across comparable periods. We calculate our Net Dollar Retention Rate for a given period as the recognized recurring revenue from the latest reported fiscal quarter from the set of customers whose revenue existed in the reported fiscal quarter from the prior year (the numerator), divided by recognized recurring revenue from such customers for the same fiscal quarter in the prior year (denominator). For annual periods, we report Net Dollar Retention Rate as the arithmetic average of the Net Dollar Retention Rate for all fiscal quarters included in the period. We consider subdivisions of the same legal entity (for example, divisions of a parent company or separate campuses that are part of the same state university system) ,as well as Value-add Resellers (“VARs”) (meaning resellers that directly manage the relationship with the customer) and the customers they manage, to be a single customer for purposes of calculating our Net Dollar Retention Rate. Our calculation of Net Dollar Retention Rate for any fiscal period includes the positive recognized recurring revenue impacts of selling new services to existing customers and the negative recognized recurring revenue impacts of contraction and attrition among this set of customers. Our Net Dollar Retention Rate may fluctuate as a result of a number of factors, including the growing level of our revenue base, the level of penetration within our customer base, expansion of products and features, and our ability to retain our customers. Our calculation of Net Dollar Retention Rate may differ from similarly titled metrics presented by other companies.

Previous wording

Remaining Performance Obligations represents the amount of contracted future revenue that has not yet been delivered, including both subscription and professional services revenues. Remaining Performance Obligations consists of both deferred revenue and contracted non-cancelable amounts that will be invoiced and recognized in future periods. As of March 31, 2025, our Remaining Performance Obligations was $184.9 million, which consists of both billed consideration in the amount of $53.9 million and unbilled consideration in the amount of $130.9 million that we expect to invoice and recognize in future periods. We expect to recognize 59% of our Remaining Performance Obligations as revenue over the next 12 months and the remainder over the next four years, in each case, in accordance with our revenue recognition policy.

Current wording

Remaining Performance Obligations represents the amount of contracted future revenue that has not yet been delivered, including both subscription and professional services revenues. Remaining Performance Obligations consists of both deferred revenue and contracted non-cancelable amounts that will be invoiced and recognized in future periods. As of June 30, 2025, our Remaining Performance Obligations was $188.1 million, which consists of both billed consideration in the amount of $55.1 million and unbilled consideration in the amount of $133.0 million that we expect to invoice and recognize in future periods.

Previous wording

We define EBITDA as net profit (loss) before interest expense, net, provision for income taxes and depreciation and amortization expenses. Adjusted EBITDA is defined as EBITDA (as defined above), adjusted for the impact of certain non-cash and other items that we believe are not indicative of our core operating performance, such as non-cash stock-based compensation expenses and war-related expenses.

Current wording

We define EBITDA as net profit (loss) before financial expenses (income), net, provision for income taxes and depreciation and amortization expenses. Adjusted EBITDA is defined as EBITDA (as defined above), adjusted for the impact of certain non-cash and other items that we believe are not indicative of our core operating performance, such as non-cash stock-based compensation expenses, war-related expenses and certain professional, consulting and other expenses associated with strategic initiatives.

Previous wording

EBITDA and Adjusted EBITDA are supplemental measures of our performance, are not defined by or presented in accordance with GAAP, and should not be considered in isolation or as an alternative to net profit (loss) or any other performance measure prepared in accordance with GAAP.

Current wording

EBITDA and Adjusted EBITDA are supplemental measure of our performance, are not defined by or presented in accordance with GAAP, and should not be considered in isolation or as an alternative to net profit (loss) or any other performance measure prepared in accordance with GAAP

Previous wording

(a)The three months ended March 31, 2025 and 2024 included $609 and $704 respectively, of interest expenses and $896 and $818 respectively, of interest income.

Current wording

(a)The three months ended June 30, 2025 and 2024, and the six months ended June 30, 2025 and 2024 include $602, $702, $1,210 and $1,406, respectively, of interest expenses and $737, $790, $1,632 and $1,608, respectively of interest income.

Previous wording

(b)The three months ended March 31, 2024 included costs related to conflicts in Israel, attributable to temporary relocation of key employees from Israel for business continuity purposes, purchase of emergency equipment for key employees for business continuity purposes, and charitable donations to communities directly impacted by the war.

Current wording

(c)The three and six months ended June 30, 2024 include costs related to conflicts in Israel, attributable to temporary relocation of key employees from Israel for business continuity purposes, purchase of emergency equipment for key employees for business continuity purposes, and charitable donation to communities directly impacted by the war.

Previous wording

Our revenues are mainly comprised of revenue from SaaS and PaaS subscriptions. SaaS and PaaS subscriptions provide access to our Video Experience Cloud which powers all types of video experiences: live, real-time, and on-demand video. We provide access to our platform either as a cloud-based service, which represent most of our SaaS and PaaS subscriptions, or, less commonly, as a term license to On-Prem software. Revenue from SaaS and PaaS subscriptions is recognized ratably over the time of the subscription, beginning from the date on which the customer is granted access to our Video Experience Cloud. Revenue from the sale of a term license is recognized at a point in time in which the license is delivered to the customer. Revenue from post-contract services (“PCS”) included in On-Prem deals is recognized ratably over the period of the PCS.

Current wording

Our revenues are mainly comprised of revenue from SaaS and PaaS subscriptions. SaaS and PaaS subscriptions provide access to our Video Experience Cloud which powers all types of video experiences: live, real-time, and on-demand video. We provide access to our platform either as a cloud-based service, which represent most of our SaaS and PaaS subscriptions, or, less commonly, as a term license to software installed on the customer's premises. Revenue from SaaS and PaaS subscriptions is recognized ratably over the time of the subscription, beginning from the date on which the customer is granted access to our Video Experience Cloud. Revenue from the sale of a term license is recognized at a point in time in which the license is delivered to the customer. Revenue from post-contract services ("PCS") included in On-Prem deals is recognized ratably over the period of the PCS.

Previous wording

Cost of revenue decreased in absolute dollars from the three months ended March 31, 2024 to the three months ended March 31, 2025. For the three months ended March 31, 2025 and 2024, our cost of revenue was $14,248 and $16,173, respectively.

Current wording

Cost of revenue decreased in absolute dollars in the three and six months ended June 30, 2025 from the three and six months ended June 30, 2024. For the three months ended June 30, 2025 and 2024, and for the six months ended June 30, 2025 and 2024, our cost of revenue was $13,243, $15,356, $27,491 and $31,529, respectively.

Previous wording

For the three months ended March 31, 2025 and 2024, our gross margins were 70% (77% for subscriptions and (81)% for professional services) and 64% (72% for subscriptions and (32)% for professional services), respectively.

Current wording

For the three months ended June 30, 2025 and 2024, our gross margins were 70% (77% for subscriptions and (73)% for professional services) and 65% (74% for subscriptions and (49)% for professional services), respectively. For the six months ended June 30, 2025 and 2024, our gross margins were 70% (77% for subscriptions and (77)% for professional services) and 64% (73% for subscriptions and (40)% for professional services), respectively.

Previous wording

The following table summarizes key components of our results of operations for the periods presented. The period-to-period comparisons of our historical results are not necessarily indicative of the results that may be expected in the future.

Current wording

The following tables summarize key components of our results of operations for the periods presented. The period-to-period comparisons of our historical results are not necessarily indicative of the results that may be expected in the future.

Previous wording

•Enterprise, Education & Technology (73% and 72% of revenue for the three months ended March 31, 2025 and 2024, 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.

Current wording

•Enterprise, Education & Technology (75% and 70% of revenue for the three months ended June 30, 2025 and 2024, respectively, and 74% and 71% for the six months ended June 30, 2025 and 2024): 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.

Previous wording

•Media & Telecom (27% and 28% of revenue for the three months ended March 31, 2025 and 2024, respectively): Our M&T segment primarily represents revenues from our TV Solution and Media Services sold to media and telecom customers.

Current wording

•Media & Telecom (25% and 30% of revenue for the three months ended June 30, 2025 and 2024, respectively, and 26% and 29% for the six months ended June 30, 2025 and 2024): Our M&T segment primarily represents revenues from our TV Solution and Media Services sold to media and telecom customers.

Previous wording

Total M&T revenue increased by $0.2 million, or 2%, to $12.6 million for the three months ended March 31, 2025, from $12.3 million for the three months ended March 31, 2024. The increase is mainly attributable to a revenue increase from existing customers.

Current wording

EE&T revenue increased by $2.3 million, or 7%, to $33.2 million for the three months ended June 30, 2025, from $31.0 million for the three months ended June 30, 2024. The increase is mainly attributable to a $1.3 million increase in revenue from new customers, and $1.0 million from existing customers.

Previous wording

EE&T professional services revenue decreased by $1.0 million, or 55%, to $0.8 million for the three months ended March 31, 2025, from $1.8 million for the three months ended March 31, 2024. The decrease in professional services revenue mainly reflects the transition of certain development projects to ongoing support and maintenance, now recognized as subscription revenue.

Current wording

EE&T professional services revenue decreased by $0.5 million, or 44%, to $0.7 million for the three months ended June 30, 2025, from $1.2 million for the three months ended June 30, 2024. The decrease in professional services revenue mainly reflects the transition of certain development projects to ongoing support and maintenance, now recognized as subscription revenue.

Previous wording

Total EE&T gross profit increased by $3.0 million, or 13%, to $26.6 million for the three months ended March 31, 2025, from $23.6 million for the three months ended March 31, 2024. This increase was mainly due to a $2.0 million increase in revenue and reduction in production costs, which is a result of improved efficiency.

Current wording

EE&T gross profit increased by $2.9 million, or 13%, to $25.9 million for the three months ended June 30, 2025, from $22.9 million for the three months ended June 30, 2024. This increase was mainly due to the increase in revenue and reduction in production costs, which is a result of improved efficiency.

Previous wording

EE&T professional services gross loss increased by $0.7 million, or 110%, to $1.3 million for the three months ended March 31, 2025, from $0.6 million for the three months ended March 31, 2024.

Current wording

EE&T professional services gross loss increased by $0.5 million, or 45%, to $1.5 million for the three months ended June 30, 2025, from $1.0 million for the three months ended June 30, 2024.

Previous wording

M&T professional services revenue decreased by $0.6 million, or 31%, to $1.3 million for the three months ended March 31, 2025, from $1.8 million for the three months ended March 31, 2024.

Current wording

M&T professional services revenue decreased by $0.4 million, or 23%, to $1.4 million for the three months ended June 30, 2025, from $1.8 million for the three months ended June 30, 2024.

Previous wording

M&T subscription revenue increased by $0.8 million, or 7%, to $11.3 million for the three months ended March 31, 2025, from $10.5 million for the three months ended March 31, 2024.

Current wording

M&T subscription gross profit decreased by $0.8 million, or 13%, to $5.4 million for the three months ended June 30, 2025, from $6.2 million for the three months ended June 30, 2024.

Previous wording

M&T professional services gross loss decreased by $0.2 million, or 32%, to $0.4 million for the three months ended March 31, 2025, from $0.5 million for the three months ended March 31, 2024.

Current wording

M&T professional services gross loss decreased by $0.4 million, or 97%, to $0.0 million for the three months ended June 30, 2025, from $0.4 million for the three months ended June 30, 2024.

Previous wording

Financial income, net increased by $3.3 million, or 220%, to $1.8 million income for the three months ended March 31, 2025, from $1.5 million expense for the three months ended March 31, 2024. The increase was primarily due to exchange rate differences.

Current wording

Financial expense (income), net decreased by $5.6 million, or 552%, to $4.6 million expense for the three months ended June 30, 2025, from $1.0 million income for the three months ended June 30, 2024. The decrease was primarily due to $5.5 million related to exchange rate differences.

Previous wording

Provision for income taxes decreased by $1.0 million, or 42%, to $1.3 million for the three months ended March 31, 2025, from $2.3 million for the three months ended March 31, 2024, primarily due to decreased tax liability related to income generated by our subsidiaries organized under the laws of Israel and the United Kingdom.

Current wording

Provision for income taxes decreased by $2.0 million or 83%, to $0.4 million for the three months ended June 30, 2025, from $2.5 million for the three months ended June 30, 2024 primarily due to decreased tax liability related to income generated by our subsidiaries organized under the laws of Israel and the United Kingdom.

Previous wording

Total EE&T revenue increased by $2.0 million, or 6%, to $34.4 million for the three months ended March 31, 2025, from $32.4 million for the three months ended March 31, 2024. This increase was due to a $1.2 million increase in revenue from new customers, and $0.8 million increase in revenue from existing customers.

Current wording

Total EE&T revenue increased by $4.3 million, or 7%, to $67.7 million for the six months ended June 30, 2025, from $63.4 million for the six months ended June 30, 2024. The increase is mainly attributable to a $2.2 million increase in revenue from new customers and $2.1 million increase in revenue from existing customers.

Previous wording

EE&T subscription revenue increased by $3.0 million, or 10%, to $33.6 million for the three months ended March 31, 2025, from $30.7 million for the three months ended March 31, 2024.

Current wording

EE&T subscription revenue increased by $5.8 million, or 10%, to $66.2 million for the six months ended June 30, 2025, from $60.4 million for the six months ended June 30, 2024.

Previous wording

EE&T subscription gross profit increased by $3.7 million, or 15%, to $27.9 million for the three months ended March 31, 2025, from $24.2 million for the three months ended March 31, 2024.

Current wording

EE&T subscription gross profit increased by $7.1 million, or 15%, to $55.3 million for the six months ended June 30, 2025, from $48.2 million for the six months ended June 30, 2024.

Previous wording

Research and development expenses slightly increased by $0.1 million, or 1%, to $12.1 million for the three months ended March 31, 2025, from $12.0 million for the three months ended March 31, 2024.

Current wording

M&T subscription gross profit increased by $0.1 million, or 1%, to $11.9 million for the six months ended June 30, 2025, from $11.8 million for the six months ended June 30, 2024.

Previous wording

Sales and marketing expenses slightly increased by $0.1 million, or 1%, to $11.9 million for the three months ended March 31, 2025, from $11.8 million for the three months ended March 31, 2024.

Current wording

Sales and marketing expenses slightly decreased by $0.2 million, or 1%, to $23.4 million for the six months ended June 30, 2025, from $23.6 million for the six months ended June 30, 2024.

Previous wording

General and administrative expenses decreased by $1.8 million to $10.3 million for the three months ended March 31, 2025, from $12.1 million for the three months ended March 31, 2024. The decrease was primarily due to a $1.3 million one-time expense in 2024 associated with terminating commitments with a cloud hosting service provider, a $0.8 million decrease in compensation expenses, primarily reflects lower stock-based compensation costs, largely driven by the full recognition of high fair value options and RSUs granted in December 2021, which were fully expensed prior to 2025, a $0.1 million decrease in professional fees and insurance and a $0.1 million decrease in subcontractors and consultants expenses.

Current wording

General and administrative expenses decreased by $4.3 million, or 17%, to $21.2 million for the six months ended June 30, 2025, from $25.5 million for the six months ended June 30, 2024. The decrease was primarily due to a $4.4 million reduction in compensation costs, mainly driven by expense acceleration recognized in the comparative period in connection with the cancellation of unvested market-based equity awards granted to the Chief Executive Officer, and by lower stock-based compensation costs, largely reflecting the full recognition of high fair value options and RSUs granted in December 2021, which were fully expensed prior to 2025. The decrease also reflects a $1.3 million one-time expense in 2024 associated with the termination of commitments with a cloud hosting service provider, partially offset by a $1.6 million increase in corporate adjustment costs, mainly due to professional, consulting, and other costs associated with strategic initiatives.

Previous wording

If necessary, we may borrow funds under our Revolving Credit Facility to finance our liquidity requirements, subject to customary borrowing conditions. To the extent additional funds are necessary to meet our long-term liquidity needs as we continue to execute our business strategy, we anticipate that they will be obtained through the incurrence of additional indebtedness, additional equity financings or a combination of these potential sources of funds; however, such financing may not be available on favorable terms, or at all. In particular, the current global economic volatility, including due to uncertainty around U.S. and foreign tariffs and other trade barriers, rising inflation and interest rates, price increases and supply chain issues, and various other factors, has resulted in, and may continue to result in, significant disruption of global financial markets, reducing our ability to access capital. Our ability to access capital may also be impacted by political, economic, and military conditions in Israel, including the current security situation or any escalation of conflicts with Israel, and in other regions in which we operate, or changes in the business environment in those regions. If we are unable to raise additional funds when desired, our business, financial condition and results of operations could be adversely affected.

Current wording

If necessary, we may borrow funds under our Revolving Credit Facility to finance our liquidity requirements, subject to customary borrowing conditions. To the extent additional funds are necessary to meet our long-term liquidity needs as we continue to execute our business strategy, we anticipate that they will be obtained through the incurrence of additional indebtedness, additional equity financings or a combination of these potential sources of funds; however, such financing may not be available on favorable terms, or at all. In particular, the current global economic volatility, including due to uncertainty around U.S. and foreign tariffs and other trade barriers, rising inflation and uncertainty with respect to interest rates, price increases and supply chain issues, and various other factors, has resulted in, and may continue to result in, significant disruption of global financial markets, reducing our ability to access capital. Our ability to access capital may also be impacted by political, economic, and military conditions in Israel, including the current security situation or any escalation of conflicts with Israel, and in other regions in which we operate, or changes in the business environment in those regions. If we are unable to raise additional funds when desired, our business, financial condition and results of operations could be adversely affected.

Previous wording

In 2024, the Company’s Board of Directors authorized a stock repurchase program of the Company’s outstanding common stock (the “2024 Repurchase Program”), which provided for repurchases up to a total of $5.0 million thereunder. Subsequently, in March 2025, the Board approved a new repurchase program (the “2025 Repurchase Program”), providing for repurchases up to a total of $15,000 thereunder, which superseded the 2024 Repurchase Program. Under the 2025 Repurchase Program, the Company may make repurchases, from time to time, through open market purchases, block trades, in privately negotiated transactions, accelerated stock repurchase transactions, or by other means. The Company may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases under this authorization. The volume, timing, and manner of any repurchases will be determined at the Company’s discretion, subject to general market conditions, as well as the Company’s management of capital, general business conditions, other investment opportunities, regulatory requirements and other factors. The 2025 Repurchase Program does not obligate the Company to repurchase any specific amount of common stock, has no time limit, and may be modified, suspended, or discontinued at any time without notice at the discretion of the Board of Directors.

Current wording

In 2024, the Company’s Board of Directors authorized a stock repurchase program of the Company’s outstanding common stock (the “2024 Repurchase Program”), which provided for repurchases up to a total of $5.0 million thereunder. Subsequently, in March 2025, the Board approved a new repurchase program (the “2025 Repurchase Program”), providing for repurchases up to a total of $15.0 million thereunder, which superseded the 2024 Repurchase Program. Under the 2025 Repurchase Program, the Company may make repurchases, from time to time, through open market purchases, block trades, in privately negotiated transactions, accelerated stock repurchase transactions, or by other means. The Company may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases under this authorization. The volume, timing, and manner of any repurchases will be determined at the Company’s discretion, subject to general market conditions, as well as the Company’s management of capital, general business conditions, other investment opportunities, regulatory requirements and other factors. The 2025 Repurchase Program does not obligate the Company to repurchase any specific amount of common stock, has no time limit, and may be modified, suspended, or discontinued at any time without notice at the discretion of the Board of Directors.

Previous wording

During the three months ended March 31, 2025, the Company repurchased 1,175,109 shares of common stock at a weighted average price of $1.94 per share (excluding broker and transaction fees of approximately $35 thousand). As of March 31, 2025, the Company had remaining authorization under the 2025 Repurchase Program to repurchase common stock up to an aggregate amount of approximately $14.1 million, subject to satisfying required conditions under the Companies Law and Companies Regulations. See Part II, Item 2 “Purchases of Equity Securities by the Issuer or Affiliated Purchaser" of this Quarterly Report on Form 10-Q for further information.

Current wording

During the three months ended June 30, 2025, the Company repurchased 3,468,731 shares of common stock at a weighted average price of $2.07 per share (excluding broker and transaction fees of $0.1 million). As of June 30, 2025, the Company had remaining authorization under the 2025 Repurchase Program to repurchase common stock up to an aggregate amount of approximately $6.9 million, subject to satisfying required conditions under the Companies Law and Companies Regulations. See Part II, Item 2 “Purchases of Equity Securities by the Issuer or Affiliated Purchaser" of this Quarterly Report on Form 10-Q for further information.

Previous wording

In July 2024, we entered into an amendment to the Credit Agreement with an existing lender, in connection with our repurchase programs, which updated the aggregate amount of permitted Restricted Payments (as defined in the Credit Agreement, which term includes, among others, the repurchase of the Company’s outstanding common stock) and conditions for making such payments.

Current wording

In July 2024, we entered into an amendment to the Credit Agreement with an existing lender, in connection with our 2024 Repurchase Program, which updated the aggregate amount of permitted Restricted Payments (as defined in the Credit Agreement; which term includes, among others, repurchases of the Company’s outstanding common stock) and conditions for making such payments.

Previous wording

In March 2025, the Company entered into another amendment to the Credit Agreement, also in connection with our repurchase programs, which provided for, among other things, an increase to the aggregate amount of permitted Restricted Payments and updates to the conditions for making such payments.

Current wording

In March 2025, the Company entered into another amendment to the Credit Agreement, in connection with the 2025 Repurchase Program, which provided for, among other things, an increase to the aggregate amount of permitted Restricted Payments and updates to the conditions for making such payments.

Previous wording

The Term Loan Facility is payable in consecutive quarterly installments on the last day of each fiscal quarter in an amount equal to (i) $0.4 million for installments payable on December 31, 2023 (deferred to January 9, 2024), through September 30, 2024, (ii) $0.7 million for installments payable on December 31, 2024 through September 30, 2025, and (iii) $1.3 million for installments payable on and after December 31, 2025. The remaining unpaid balance on the Term Loan Facility is due and payable on December 21, 2026, together with accrued and unpaid interest on the principal amount to be paid to, but excluding, the payment date.

Current wording

The Term Loan Facility is payable in consecutive quarterly installments on the last day of each fiscal quarter in an amount equal to (i) $0.4 million for installments payable on December 31, 2023 (deferred to January 9, 2024), through September 30, 2024, (ii) $0.7 million for installments payable on December 31, 2024 ($0.2 million of the amount deferred to January 2025), through September 30, 2025, and (iii) $1.3 million for installments payable on and after December 31, 2025. The remaining unpaid balance on the Term Loan Facility is due and payable on December 21, 2026, together with accrued and unpaid interest on the principal amount to be paid to, but excluding, the payment date.

Previous wording

As of March 31, 2025, we had no balance outstanding under the Revolving Credit Facility and the total revolving commitment of $25.0 million remains available for future borrowings. As of March 31, 2025, we had approximately $31.7 million of borrowings outstanding under the Term Loan Facility.

Current wording

As of June 30, 2025, we had no balance outstanding under the Revolving Credit Facility and the total revolving commitment of $25.0 million remains available for future borrowings. As of June 30, 2025, we had approximately $31.0 million of borrowings outstanding under the Term Loan Facility.

Previous wording

Net cash used in operating activities of $1.1 million for the three months ended March 31, 2024, was primarily due to $11.1 million incremental net loss, adjusted for non-cash charges of $10.1 million, and net cash outflows of $0.2 million due to changes in our operating assets and liabilities. Non-cash charges primarily consisted of depreciation and amortization of $1.3 million, stock-based compensation expenses of $6.5 million, amortization of deferred contract acquisitions and fulfillment costs of $2.9 million, partially offset by non-cash interest income, net of $0.3 million. The main drivers of net cash outflows were derived from the changes in operating assets and liabilities and were related to a decrease in deferred revenue of $8.6 million, increase in deferred contract acquisition and fulfillment cost of $1.1 million, an increase of $0.6 million in prepaid expenses and other current assets and other assets and net change in operating lease right of use assets and lease liabilities of $0.4 million, partially offset by an increase in trade payables of $4.4 million, a decrease in trade receivables of $5.5 million and an aggregate increase in employees accruals, and accrued expenses and other liabilities of $0.6 million.

Current wording

Net cash provided by operating activities of $1.6 million for the six months ended June 30, 2025, was primarily due to $8.9 million incremental net loss, adjusted for non-cash charges of $16.0 million, and net cash outflows of $5.5 million due to changes in our operating assets and liabilities. Non-cash charges primarily consisted of depreciation and amortization of $2.3 million, stock-based compensation expenses of $8.6 million and amortization of deferred contract acquisitions and fulfillment costs of $5.7 million partially offset by non-cash interest income, net of $0.2 million. The main drivers of net cash outflows were derived from the changes in operating assets and liabilities and were related to a decrease in deferred revenue of $8.1 million, an increase in trade receivables of $1.3 million, an increase in deferred contract acquisition and fulfillment cost of $2.0 million, an aggregate decrease in employees accruals, and accrued expenses and other liabilities of $1.2 million and an increase of $0.1 million in prepaid expenses and other current assets and other assets, partially offset by, an increase in trade payables of $6.1 million and net change in operating right-of-use asset and lease liability of $1.1 million.