Kaltura (KLTR) Pushes Toward Profit and Platform Expansion, Needham Stays Bullish

Kaltura Inc. (NASDAQ:KLTR) is one of the 10 best debt-free IT penny stocks to buy. On May 8, Needham’s Ryan Koontz reaffirmed his Buy rating on Kaltura, holding firm on a $3 price target. His positive outlook was based on the company’s strong first-quarter performance and encouraging strategic progress.

The company reported strong growth in subscription revenue and posted its highest operating margin since 2020. Several key deals closed during the period, lifting core financial metrics compared to the prior year.

Kaltura (KLTR) Pushes Toward Profit and Platform Expansion, Needham Stays Bullish

A large flat-screen TV streaming video from a video hosting platform.

While management expects a slight revenue dip in the second quarter due to customer churn, they left full-year guidance unchanged, a sign they remain confident in their roadmap and execution.

Regarding the long-term goals, Koontz highlighted the company’s aim to double EBITDA by fiscal 2026. It is also targeting to achieve the “Rule of 30,” a widely used benchmark in the software industry which indicates a good balance between growth and profitability. These goals suggest a shift toward stronger operational discipline.

He also noted that better execution, and further consolidation in the enterprise video space could strengthen Kaltura’s competitive edge.

Kaltura Inc. (NASDAQ:KLTR) provides a cloud-based video platform that powers real-time, on-demand, and live video experiences for enterprises, educational institutions, and media companies.

While we acknowledge the potential of KLTR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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