Israeli-founded video software startup Kaltura Inc has filed a prospectus with the US Securities and Exchange Commission in a bid to raise at least $100 million in an initial public offering in 2021 on the Nasdaq.
The share sale would value the firm at over $1 billion, Calcalist financial website said.
The firm, founded in 2006 and headquartered in New York with an R&D center in Ramat Gan, Israel, provides organizations with turnkey solutions that allow them to immediately upload, deploy, serve, and publicize video content, either on the internet or within an organization.
In the filing, Kaltura said that at end 2020, it had $120 million in revenue after it posted double digit sales growth, year on year, in all four of the quarters. The firm had some 1,000 customers and 15 million authenticated users.
For 2020, the company posted a net loss of $38.7 million, which grew from a net loss of $15.6 million in 2019.
Goldman Sachs, which led a $50 million financing round in Kaltura in 2016, will be leading the planned IPO, the filing said.
Kaltura’s video technology — a software as a service product — is used by enterprises, media companies, service providers and educational institutions around the world to provide live, real-time and on-demand video experiences. Customers include media giants HBO, Warner Brothers and Paramount; Bank of America and Intel; and educational institutions such as Stanford and Columbia.
“Video is everywhere,” Kaltura said in its prospectus. “It has become a driving force for online interactions and engagement, and has revolutionized how we communicate, work, learn, and entertain.”
Businesses and other organizations are increasingly turning to video solutions to better engage with customers and employees, the prospectus said.
The company plans to continue expanding video services with new products and industry solutions; seeks to increase its sales and marketing investment to “capture the significant market opportunity ahead,” and plans to increase its sales team, invest in self-serve products and partnerships to expand the firm’s presence with smaller customers across all industries.
According to Cisco’s Visual Networking Index, 82% of the world’s internet traffic will be video by 2022, the filing said.
“We estimate that our total addressable market in 2020 is approximately $55 billion, including approximately $39 billion from the real-time-conferencing market,” the prospectus said.
The company has a “history of losses,” however, and “may not be able to achieve or maintain profitability,” the prospectus said in the risk factors listed by the firm. The ongoing COVID-19 outbreak could also adversely affect the business, and the markets for the firm’s offerings “are new and evolving and may develop more slowly or differently than we expect.”
“Our future success depends on the growth and expansion of these markets and our ability to adapt and respond effectively to evolving market conditions,” the prospectus said.
Founders are Ron Yekutiel, Shay David, Eran Etam, and Michal Tsur.
According to the database of Start-Up Nation Central, Kaltura has raised some $166 million to date from investors including Goldman Sachs Private Capital Investing, Intel Capital, Nokia Growth Partners, Silicon Valley Bank.
Analysts have been saying that Kaltura was poised for an IPO since 2014. In 2017, Calcalist reported that the firm was gearing up for an IPO in 2018.