- Kaltura’s ROIC of 330.12% significantly exceeds its WACC of 8.45%, indicating exceptional capital efficiency.
- Competitors like Similarweb Ltd., WalkMe Ltd., and Riskified Ltd. display negative ROIC to WACC ratios, highlighting their struggles in capital utilization.
Kaltura, Inc. (NASDAQ:KLTR) is a leading provider of video platform as a service, catering to businesses, educational institutions, and media companies. Operating in a competitive digital solutions landscape, Kaltura stands out with its financial performance against peers like Similarweb Ltd., WalkMe Ltd., Taboola.com Ltd., Outbrain Inc., and Riskified Ltd.
Kaltura’s ROIC of 330.12% is remarkably high, especially when compared to its WACC of 8.45%. This demonstrates Kaltura’s ability to generate substantial returns on its invested capital, far exceeding the cost of that capital. The ROIC to WACC ratio of 39.05 further underscores Kaltura’s efficiency in utilizing its capital to generate profits, positioning it as a standout performer in its industry.
In contrast, Similarweb Ltd. has a negative ROIC of -25.52% against a WACC of 8.72%, resulting in a ROIC to WACC ratio of -2.92. This suggests that Similarweb is not generating sufficient returns to cover its cost of capital, indicating inefficiency in its capital utilization. Similarly, WalkMe Ltd. and Riskified Ltd. also show negative ROIC to WACC ratios of -1.26 and -1.45, respectively, reflecting challenges in achieving profitability relative to their capital costs.
Taboola.com Ltd. presents a more favorable picture among Kaltura’s peers, with a positive ROIC of 4.67% and a WACC of 8.79%, leading to a ROIC to WACC ratio of 0.53. Although this is the highest among the peers listed, it still falls short of Kaltura’s impressive ratio. Outbrain Inc. also struggles with a negative ROIC of -3.44% and a WACC of 10.35%, resulting in a ROIC to WACC ratio of -0.33, further emphasizing the challenges faced by Kaltura’s competitors in achieving efficient capital utilization.
