Okay, so welcome to the Sidoti Virtual Microcap Conference, and thank you for joining us today. I'm Anja Soderstrom, Senior Equity Analyst here at Sidoti, and as I mentioned, next up we have Kaltura Inc., KLTR, and we have Ron Yekutiel. He's the Chairman, President, and CEO of Kaltura. He will be giving a presentation, an overview of the company, and that will be followed by a Q&A session. And if you would like to participate, you can submit your question at the bottom of your screen, and we will address the questions following the presentation. And with that, I'm happy to hand it over to you, Ron. Welcome. Thank you, Anja. Thank you so much to you and the Sidoti team, and good morning to everybody that's joined. Again, my name is Ron Yekutiel, Co-founder, Chairman, CEO of Kaltura. And what I'm going to do now is I'm going to tell you a little bit about the history of the company, but much more interesting, I'm going to tell you of the most exciting last step that we've made in the world of immersive virtual agents. And you're going to look at conversational avatars, and I'm going to demonstrate that to you and show you why it is so disruptive. And that is our latest chapter. But before I do that, let me go back and tell you a bit about the background of the company and what are the products we've been selling all the way to date. Kaltura has been around since 2006, and we started off as a video management platform and gradually moved to create more and more advanced video experiences for enterprises. As you can see, so we have some of the largest corporations in the world. We've built $180 million of business around doing so profitable. And what we deliver are content management systems for video. You can see at the bottom piece of it on the left side for online and on the right side for over-the-top television delivery. And then a breadth of five groups of products on the left, video portal for corporates. That's kind of a white label YouTube where organizations behind their firewall, single sign-on, have an environment where all their employees could watch videos, share videos, create content. Then there's plug-ins into learning environments, mostly higher ed, but also corporate, where half the universities in the U.S. are using us to manage all of their video contents. You'd have a Zoom or a Teams record stuff, but then it will come to us, and we will push it into the actual learning workflow. In 2020, we also added things pertaining to real-time conversations. We added virtual events. In fact, the very first AWS re:Invent during COVID, 600,000 participants was on Kaltura, and video was on Kaltura. So we were very strong at that point to enable people to go online for large events. And we did the same for classrooms to turn into completely virtual and also applications that go together with our TV. At the bottom, you can see the three markets that we've been catering to over the years between enterprise video content management and on that video platform. That's a light blue, virtual events and webinars, and cloud software. In recent years, we started adding AI capabilities. We were seeing here an example of a product we call Genie. What Genie does, it enables individual users to write a question about anything and to get a video first response that breaks down the monolith of videos to hyper-targeted videos that are down to seconds and minutes that are relevant for each individual. So if you're at Harvard, instead of getting the entire Harvard database, you get exactly what you need, plus automatic quizzing, as you can see here. So it helps create really targeted, hyper-personalized video experiences with the advent of AI. More things that we've added around AI, for example, at our virtual events, you can now see if people are engaged and if not, take action. How do you take action? You could come and say, "Okay, I want to create a poll," and then it gives you a recommended poll in real time if you're the one talking, and then you could look at the engagement rate. You could look at the statistics. You could be behind the scenes, after, during, and look at what people interacted with, and apropos after, you could take everything that you had created and create snippets and clips for follow-ons because different individuals would like to have different follow-ons after, and we have an automated tool that enables you to create clips based on topics, based on segmentation of customers, and to deliver these hyper-targeted clips after. Again, the advent of AI enabled us to cram together the creation, distribution, and publishing of videos into very quick tools that enable us to deliver hyper-personalized, hyper-targeted, and we're seeing that help drive demand. Over the years, we've been winning a lot of awards. In fact, the most recent analysis of our market that came out from Frost & Sullivan a couple of months ago again has us at the top right quadrant in a market that had folks like Brightcove and Vimeo and the rest of them. So we're the number one player in this game. The problem is, which we're going to look at our financials, is that this entire industry, the video industry, has flattened. There are some companies that have gone down after COVID. Some remain up a little bit, single digit like us, but it's not significant growth like we've had historically for various reasons. After COVID, financially, there were some issues, and there was some overpurchasing during the time of COVID. There was also further commoditization by folks like Microsoft and folks like Zoom. So the fact that we're the number one technology in the world and we're able to sell more and do more and do better and add AI and create more things is nice, but it doesn't bring us back to growing 20%-30% or being a Rule of 30 company, which is why we're going to share in a second what's happening right now while we're on our way for what we believe would be that acceleration. But before that, we've been able to amass some of the brightest and best companies in the world. We have 30% of the top 50 technology companies using our products in an enterprise sales fashion. These are hundreds of thousands of users, millions a year. Our biggest customer is $20 million. Second biggest is close to $10 million. So these are significant enterprise sales, CIOs, CMOs, big leaders. We have the likes of Amazon and Adobe and NVIDIA and Salesforce and Oracle and SAP. We have 50% of the R1 universities. We got huge banks, the five largest in the U.S. and many around the world, biggest consulting firms, biggest media companies. We power TV over the top for the likes of Vodafone. And if you look at the bottom piece, they're growing year by year, and they're spending more money, and they're using more products because they're consolidating on this platform that has a lot of different things. They use this for a lot of different use cases, whether it's marketing, whether it's teaching or learning, whether it's communication collaboration. By the way, the three of them on the left group together in our reports under what we call the enterprise education and tech segment. And then we also have the media and telecom use cases. So covering quite a lot of grounds with our products insofar as internal use in the company for employees and external use in the company for their customers. And before we talk about the newest innovation and why this is disruptive, this is why people over the years have been using Kaltura. It is because we have very data insight AI capabilities around action analytics, agentic workflows, what you're going to see in a second with our disruption around our avatars and generative personalized UI. We have amazing APIs that run deep into the workflows. We got a unified platform that runs wide, and we have a very enterprisable platform that fits the enterprise, all of which is why we were top right quadrant all these years in our industry, and along came the age of immersive virtual agents, so now we're going to talk about what is happening now with Kaltura and why this base of $100 million of business and profitable company is now a leaping point for us to do the next move. We all know that the world is filled with agents. Now, this agentic move is something everybody's doing. The area we're going forward is what's called immersive virtual agents, so the agents are not regular back office workflow agents. These are agents that are fulfilling roles, fulfilling positions, helping support roles in an immersive way. You're going to see examples, but the immersive way, first and foremost, is the agent has a face. It has hands. It has ears. It sees what you do. It speaks to what you do. You could share the screen, and it also pulls on videos and delivers snippets. So it's a very immersive experience. Let me run a video first that shows you about a new mission statement. Used to be power any video experience. Now it's to power immersive virtual agents and experiences for organizations. We're still selling everything you just heard. In fact, we're adding the agents on top of it, but we're also selling standalone agents, people that want to add agents into their website or into their internal operations. Let's have a quick video, and then you're going to see a demo. A new kind of connection is emerging where communication becomes responsive, alive, and intelligent. Now, for the first time, that intelligence takes form with a face, a voice, eyes, and ears. Kaltura's AI Video Experience Cloud is evolving, expanding the Genie family into real-time conversational agents. These aren't chatbots. They're agentic avatars, photorealistic, multilingual, and hyper-personalized. We listen, see, speak, and respond in real time. We don't just deliver information. We engage. Built on the foundation Kaltura has perfected: video at enterprise scale, secure, integrated, and intelligent. Our virtual agents go beyond conversation. They show. They draw on rich media, avatar-based, AI-generated video content, dynamic visuals, and contextual information to connect language, motion, and meaning. With deep intelligence across every frame, every interaction, and every experience, they understand context and act on it in real time. And they don't work alone. These agents are deeply integrated into enterprise workflows, connecting with CX and EX systems, data sources, and business tools to serve, assist, and amplify across every customer and employee journey. They elevate, not replace, taking the routine so humans can think, create, and connect. Technology and people advancing together. Offered within Kaltura's video experience products and as standalone self-serve experiences embeddable into any website or application, they deliver intelligence wherever interaction happens. They qualify leads. They guide customers. They train employees. They teach students. They engage viewers. They bring organizations to life through conversations that feel human and real. From global enterprises to growing teams. Enabling real-time connection that's emotional and measurable. Kaltura, powering immersive virtual agents and experiences for organizations. You've seen a short little video. Let's see a demo, and let's have a talk with Tamara. But before I do this, we need to stop sharing and reshare, given how this app is set up here. So it's going to take me a few seconds. So let's do that. Okey doke. So you should be seeing my screen. And we're going to have a conversation with a live avatar. So these are conversational avatars. This is our technology. We have the models for speech to text, text to speech, speech to video, elements around the LLM, albeit that we're using, of course, at the core off-the-shelf LLMs. And then it knows how to pull on different assets from Kaltura that are also specific around video and around image creation. I'm going to show you some of these. Let's start with this, which is just an example. Amazon is a customer of ours. We power a bunch of their events. So this is an example of how such a company could use avatars to be able to have a follow-on experience to one of their events. You may have a slight delay because this is on Zoom. Bear in mind that if you have that directly without Zoom, you'll have even a better experience. Let's go ahead and do that. Second here. Hey there. How was re:Invent? I can help you recap all the key highlights and learn more on AWS. Ready to start? Absolutely. Please tell me about Matt Garman's keynote. Matt Garman's keynote at re:Invent 2025 covered several exciting announcements. Here are some of the highlights. Would you like to dive deeper into any of these? Oh, that's great. Can you talk about Trainium 3 Ultra servers, please? Absolutely. The Trainium 3 Ultra servers are a major advancement. They feature the very first 3-nanometer AI chip in the AWS cloud, delivering the industry's best practices for AI. You know what? Somebody just came here from Japan. Could you please switch to Japanese? And can you show me the list of topics in Japanese, please? Thank you so much. Could you please switch to Hindi, please, and also the text? Okay. I'm going to kill this, and I'm going to show another example from the real estate industry, and how this could be used to create this very personal feeling for sales, in this case, selling real estate. Hi there. I'm Rachel, a real estate expert from Porta da Frente. Ready to start? Yes, Rachel. Great. Which city are you interested in, Lisbon or Cascais? Lisbon, please. Thank you. How many bedrooms are you looking for? Two. Perfect. What is your budget in euros? EUR 1 million. Let me find the right apartment for you in Lisbon with two bedrooms and a budget of EUR 1 million. I found a lovely apartment in Lisbon for you. It has two bedrooms, two bathrooms, and a total area of 105 square meters. The price is EUR 710,000. Would you like to do a virtual tour of this property? Yeah, just show me the kitchen, please. I'd like to see the kitchen. Let's take a look at the kitchen. This space features a modern design with a kitchen island, perfect for cooking and entertaining. I'm going to stop this. Let's just look very quickly on teaching, for example, math, and look at the interactivity here. Hi, I'm Kevin, your math teacher. Ready to start the lesson? Yes, Kevin. Let's simplify a fraction together. I have one in mind. Let's work through it step by step. What do you need, Kevin? Give me something harder. Give me three digits, please. No problem. Let's try this one. Can you solve this on your own, or do you need my help? I need your help, please. No problem at all. Let's start by thinking about what the greatest common divisor, or GCD, is for the numbers 125 and 100. Do you remember what the GCD is? I don't know. Five? Maybe it's five. That's a great start. Okay. No. Is it five? Was I right? You're on the right track. Five is a common factor, but it's not the greatest common divisor. The GCD is the largest number that divides into both 125 [crosstalk] and 100. It's 25, right? Excellent. 25 is indeed the greatest common divisor. Okay. One last example, and I think you get the gist. Let's use something that we need to share a screen for, and I'm just going to pick a website, maybe Sotheby's. Hi, I'm André, your IT support specialist. Could you please let me know what issue you're experiencing today? Hi, André. Could I share my screen, please, so you can help me out? Yes, I can definitely help you out once you share your screen. Are you ready to share your screen now? Yeah, let's go ahead and do that. Great. I am ready when you are. Can you start screen sharing so I can see what you see? Yes, I'm sharing my screen right now. Can you see it? Yes, I can see your screen. It looks like you have a web page open with a pop-up for the January conference. Is there something specific about this page or pop-up that you need help with? Yeah, I'll kill the pop-up. Let me do that, and what do you see in the background? What website is this? In the background, I see the Sidoti & Company LLC website. Is there something specific you'd like to know or do on this website? What can you tell me about Sidoti, please? I am sorry, but I do not see any mention of Tsunori on the screen. No, no. Sidoti. Sidoti. S-I-D-O-T-I, the website. Thanks for clarifying. I see that Sidoti & Company is an investment firm, as indicated on the web page. All right. Thank you. What would you like to know about? Stop here. I think we get this. Last thing I'm going to show you, you could create these avatars. Obviously, we work with some of the biggest companies on Earth, and the idea is to integrate that to create marketing, sales, training, onboardings, augment people, support them in workflows, connect it to their systems at the back end. Very robust. But by the way, from a PLG motion, this could be done in seconds. You could create an avatar at your face, add your audio, and then define the rules and what it is you wanted to do within seconds. We just did, and I'm not going to show you for personal reasons. One of the investment backers that we met last week said he's passionate about cars. We turned him into a used car salesman, and he was just unbelievably funny in how he was pitching cars and did an amazing job, including sharing the screen, looking at the car, checking the web, seeing how much it should cost, and all that. So it's extremely engaging. Let me stop again sharing. Come back to our slide deck. It'll be two seconds. Okay. Back to the deck. So you've seen this talk with Tamara where we could have agents that are supporting us for recruiting, onboarding, training, and so much more. Really, this is the last kind of move that we've made from being a content management company into kind of very interactive video experiences into ultimately now getting into these immersive agents that are generating user interface in real time in a way that turns us not into a supportive role within customer and employee experience where we provide videos for learning or marketing or sales. It turns us into a full system that provides customer and employee experience. And so when we, for example, could be now a marketer that is a video-first marketer, but we become a full-blown marketer. So the size of that market is dramatically higher. There's vertical applications. We have a lot of inbound. There's other companies that are in various angles that are touching areas that we're at that are definitely worth a lot. Starting from the VOD avatar world, to be clear, this is conversational avatars. There's very few companies that are doing this. Definitely a quality folks, including the biggest companies on earth, claim that this is the best technology out there at the moment. But if you look at those that are creating avatars from VOD, like Synthesia, they recently got an acquisition offer by Adobe for $3 billion and said no for, and then raised capital at $4 billion from Alphabet. On the full agentic world, when you're adding a face with a brain, you have folks like Qualified that recently were acquired by Salesforce. It's definitely an interesting area. And we're coming with $180 million in revenue, amazing customers, great technology, differentiated technology into a market that's quite exciting. But that being said, when you look back, this is the revenue, right? We've been growing up until COVID. It's been flattish since. We are, depending on how you look at the Media and Telecom versus not, both businesses are relatively flat. We did come back to being profitable. When When we IPO'd the company in 2021, we started investing in the future. When we saw where the market was going, we shifted. We're now coming back to generating cash from operations, generating cash flow, and increasing our Adjusted EBITDA margins to positive nice numbers, and when you look into the future, we're expecting to continue to grow our gross margins as we have in recent years, and also ultimately to come north of where we are now to both double-digit growth as well as a Rule of 30, which we're gradually coming back to towards, but we believe that by 2028 or before, we're going to be back at that point. I want to sum up so we have enough time for Q&A and what we see as the investment thesis. Number one, leading tech. We have been a leading enterprise video platform, top-ranked quadrant, but that market kind of slowed down. And now, when we're coming into this new world of agentic avatars, not only are we with the cutting-edge technology, we're the only public company in this space. And that speaks to any form of avatars out there offering. So that's quite unique for a public investor. We have a large and growing TAM, not only historically across all these different areas, but now moving from what was a video market to a full-blown agents market and CX and EX market. We have these amazing customers, long-tenor, diversified, and now we could upsell them a lot. I would argue that the valuations, and you should judge for yourself, what are the multiples on revenue? What are the multiples on Adjusted EBITDA? They're definitely similar to the entire industry of video. But if one thinks that this is a means for an end to make a significant leap going forward, given what you've seen, that's definitely a very depressed valuation. That's it. Open for Q&A if there are any, but thank you again for your time and your interest, and enjoy the rest of the conference. Thank you so much, Ron. That was a very good overview, a very interesting and cool company. Yes, so for the audience, if you have a question, you can submit it at the Q&A function at the bottom of your screen. So I have some questions lined up here. Is there research that shows users would prefer to have a video avatar rather than just speaking with an AI agent? Yeah, yeah. So there's various ones that people are reaching out. And the first is, but let me go back. You know when Bell came out with telephones, you needed to put advertising out there of reach out and touch someone, right? And when chatbots first came in, people thought, "No, that doesn't, you know, nobody's going to want to use chatbots." When audio bots came out, people thought, why would you use audio bots? Right? When you had video conferencing initially, people thought, "Well, why wouldn't you just use telephony? Why would you use video conferencing?" And right now, look, we're using faces. We're using video all the time. There are many use cases where there is a need to have this feeling of a conversation with a person, whether because ultimately you're going to have another conversation with another person, this is just kind of a warm-up or a training, or whether because there's a need for having this trust relationship. Healthcare, for example, when you have before or after surgery, here's what's going to happen, here's what happened after. So it's just a much more engaging and rich environment. And the other thing to note is it's not just about the avatar. It's a conversational flow. We're offering also the audio together with the video, and you can downgrade it, but also the delivery of the snippets and the content, the immediately generated content. We have many other demos of how we weave in immediately generated images and graphs and tables and information and putting it all under the agentic umbrella. So you consider in a very video-fied or a very rich media agent. Now, again, is it going to be 100% of the market? No, but the world of agents is so huge that even if it's 10%, 15%, 20% of the market, they want to do video, let alone if it's much higher. That's a huge part of the market. And lastly, I would just add on the VOD avatars, it's really not even part of the agentic. It's content creation. If you're creating videos with the technology, and we're going to launch this later this year, the complementary capabilities like Synthesia, then it's a content creation move. That in itself could generate a lot of money and connect it to our platform where people are already using us for content management and distribution, then adding content creation tools, even if they're not interactive and agentic, just a quick way to create a lot of videos is extremely, extremely beneficial. Thank you. And you talked a little bit about how you've been investing in growth and now you're returning towards profitability. I think you have guided or you reported Adjusted EBITDA profitability. When do you expect to be GAAP profitable, and what does your cash flow generation look like? We did not give forward-looking guidance into next year. We will absolutely do so soon. But if you look at the passing year, the non-GAAP has been already touching positive, and the GAAP is getting closer and closer. So we could expect continued improvements, and we should get into the right direction there. As for cash generation, like I said, we are already generating cash flow both from operations and free cash flow. And so we expect that to continue to do well. Again, this company is not about generating value through profitability. It's about securing value through profitability because we are absolutely looking at rekindling and reharnessing growth. We're investing in, as you can see, the moves that we've made here and the type of technologies we have out there and the significant augmentation and increases of our go-to-market motions and product offerings are set to bring us back to significant growth. At the same time, we're not doing that at the expense of not growing and/or shrinking and/or having negative profits. We believe we should and can be doing both. We like being a quote-unquote "and" company, both growth and profitability. We're headed to that direction. Things might change. We might fire ourselves in the future when we're growing very nicely, and people are going to say, "You know what? Given the growth ticker, maybe it could be even less profitable for the time being, so you could grow even more." I don't know. I don't know what the future holds. But for where we are at the moment, we're making sure that we do both sides. Okay. Thank you. And what does your pipeline look like? And so what the conversion and the sales cycles have they changed recently or over time? We don't provide specific metrics, but to give you a feel for the business is generally a large enterprise business, right? We're not doing SMBs. We're not doing self-serve, albeit that part of this new stuff that we're launching now, we expect to start putting out there tools that are both PLG, product-led growth, self-serve, as well as DLG, developer-led growth, so an SDK, a software development kit of the agentic avatars, so things like this are going to come. They're going to be a lot more automatically sold. And also, we'll have a good net dollar retention, we believe, because people could come in, use them, and start growing them. But putting that aside, when you look at all these different products that we offer, the cycles are generally somewhere between three months to one year. The median telecom could be longer, could be a year and a half because these are very large projects [that] require a lot of time and effort. That's what we report on them separately. They also require different time to deploy, sometimes lower gross margin. These are large enterprise cycles, and the tickets are high, as I mentioned. To your question about direction, we now, in recent years, again, the video market has slowed down for everybody and anybody. We've done relatively better, but it's been a bit of a slower market. We're seeing a lot of interest in this. The quote-unquote "success rate" of reaching out initially and getting people to say, "Oh, this is exciting. I want to hear more," has jumped radically. People are excited. Now, how quickly are we going to convert that into revenue bookings and all that remains to be seen. We're definitely not providing guidance on it yet, but we're optimistic that we're heading in the right direction. Okay. And can you just touch on your balance sheet and how you're funded and if you're going to need capital? Yeah. So we have about $60 million of gross cash, and there's about $30 million in debt. We have a bigger loan that we could potentially tap into with a revolver that could go up. So right now, we have $30 million in net debt, and we're generating our net cash, $30 million net cash, $60 million gross cash minus $30 million debt. And we're generating cash. So we don't have any cash issue, and we have our plans very careful as to our use of proceeds and our growth direction, and that should be fine. And obviously, in the right time, in the right place, we can make additional decisions pertaining to that, but this is where we are. Okay, and can you also talk about, have you seen pricing pressure at all due to AI or? Not due to AI. Again, on the video realm in recent years, it's been a more pressured market for everybody. Now, when we're talking about entry in this new world, it's such a brave new world, and the offerings we're talking about, that we're not seeing price pressures there. On the contrary, we think that because we're bringing more value and we could add these on top of our core platform, then it gives us more power as a vendor to maintain. I think we've done a better job than most other companies in our own industry. But yes, it remains to be seen what's going to happen in this new agentic world that we're entering. And also, how integrated are you with your customers? How sticky is it? And what does the contracts normally look like? Yeah, relatively sticky. I mean, our gross retentions are hovered anywhere between kind of mid-80s% to high-80s%. And depending on the market, if you look just on the ENT market, it's also north of 90% on the gross retention side. But generally, when they use us as their content management system for all things content, then everything resides at Kaltura. Of course, we run it on AWS, but we manage it for folks. Changing it is a fair amount of investment, and there's a lot of effort that's required to do migrations. So we're relatively sticky. Okay. Thank you. Actually, out of time. So before I hand it over to you for some closing remarks, I want to thank you, Ron, and everyone in the audience who participated. I know you have a pretty full one-on-one schedule, but if anyone in the audience would like to catch up with the management team after this presentation, you can reach out to us at Sidoti or the company directly, and I'm sure we can squeeze you in somehow either with a conference or outside of the conference. And with that, I'll hand it over to you, Ron, for some closing remarks. No, thank you. I just want to thank you, Anja, and the team at Sidoti, and for all of you for your time and interest, and to remind what's unique in this story. This is a company that's starting at $180 million as a leader in a market with amazing, amazing customers and great strategy to have great enterprise sales, but the market's somewhat dried up around video, but is now leapfrogging into this new agentic world with a very unique, immersive agentic offering that is currently best of breed in its quality, and so the opportunity is quite significant. We're not starting from ground zero. We're starting from a high floor given where we are, the agreements that we have, the relationships that we have. We could sell it within our products, align with our products. It's a unique asset. There's no other public market assets around this area. We're getting into a larger TAM with the CX and EX, and we're excited for the future and looking forward to having further conversations. Okay. Great. Thank you. Thank you, everyone. Awesome. Have a beautiful day. Take care. Take care.