KALTURA INCKLTR

KALTURA INC Segments Disclosure

10-KFiled Feb 20, 20253 min read
NOTE 13: REPORTABLE SEGMENTS AND GEOGRAPHICAL INFORMATION
Reportable segments
ASC 280, Segment Reporting, establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company's chief operating decision maker is its Chief Executive Officer (“CODM”). The Company's CODM does not regularly review asset information by segments and, therefore, the Company does not report asset information by segment.
The Company organizes its operations in two segments: Enterprise, Education and Technology and Media and Telecom. The Enterprise, Education and Technology segment represents products related to industry solutions for education customers, and media services (except for Media and Telecom customers). The Media and Telecom segment primarily represents TV solutions that are sold to media and telecom operators.
The measurement of the reportable operating segments is based on the same accounting principles applied in these financial statements, which includes certain corporate overhead allocations.

Year Ended
December 31, 2024

Enterprise, Education and TechnologyMedia and TelecomTotal
Revenue$128,704 $50,013 $178,717 
Cost of revenue
Production costs$16,693 $13,973 $30,666 
Compensation10,868 6,464 17,332 
Depreciation and amortization1,354 2,370 3,724 
Other segment items2,861 5,028 7,889 
Total cost of revenue31,776 27,835 59,611 
Gross profit96,928 22,178 119,106 
Operating expenses143,205 
Financial income, net(434)
Provision for income taxes7,650 
Net loss$31,315 


Year Ended
December 31, 2023

Enterprise, Education and TechnologyMedia and TelecomTotal
Revenue$125,154 $50,018 $175,172 
Cost of revenue
Production costs$18,528 $14,771 $33,299 
Compensation11,080 8,876 19,956 
Depreciation and amortization1,022 2,389 3,411 
Other segment items2,900 3,372 6,272 
Total cost of revenue33,530 29,408 62,938 
Gross profit91,624 20,610 112,234 
Operating expenses150,889 
Financial income, net(1,200)
Provision for income taxes8,911 
Net loss$46,366 

Year Ended
December 31, 2022

Enterprise, Education and TechnologyMedia and TelecomTotal
Revenue$120,190 $48,621 $168,811 
Cost of revenue
Production costs18,284 11,385 29,669 
Compensation14,117 10,134 24,251 
Depreciation and amortization765 687 1,452 
Other segment items3,212 3,287 6,499 
Total cost of revenue36,378 25,493 61,871 
Gross profit83,812 23,128 106,940 
Operating expenses163,319 
Financial income, net4,248 
Provision for income taxes7,868 
Net loss$68,495 

Other segment items include costs related to subcontractors and consultants, allocated rent, IT expenses and other general costs.
Geographical information
Revenue by location is determined by the billing address of the customer. Total revenue from external customers on the basis of the Company's geographical areas are as follows:

Year Ended December 31,
202420232022
 United States (“US”) $94,855 $91,319 $91,923 
Europe, the Middle East and Africa (“EMEA”)68,396 65,831 58,026 
Other 15,466 18,022 18,862 
$178,717 $175,172 $168,811 

No other individual country accounted for more than 10% of the Company’s revenue for all periods presented.
The following table presents long-lived assets as of December 31, 2024 and 2023, based on geographical areas which consist of property and equipment, net and operating lease right-of-use assets:


December 31,
20242023
US$10,141 $13,913 
Israel18,253 19,916 
Rest of world104 156 
$28,498 $33,985 

Historical Timeline

Fiscal YearFiled
2024Feb 20, 2025Showing above
2023Feb 22, 2024
2021Feb 25, 2022

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

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