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Kaltura's Return On Invested Capital Insights

Kaltura (NASDAQ:KLTR) brought in sales totaling $41.72 million during Q1 according to data provided by Benzinga Pro. However, earnings decreased 6.28%, resulting in a loss of $16.93 million.

Benzinga · 06/09/2022 10:10

Kaltura (NASDAQ:KLTR) brought in sales totaling $41.72 million during Q1 according to data provided by Benzinga Pro. However, earnings decreased 6.28%, resulting in a loss of $16.93 million. In Q4, Kaltura brought in $42.72 million in sales but lost $15.93 million in earnings.

Why Is ROIC Significant?

Return on Invested Capital is a measure of yearly pre-tax profit relative to capital invested by a business. Changes in earnings and sales indicate shifts in a company's ROIC. A higher ROIC is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROIC suggests the opposite. In Q1, Kaltura posted an ROIC of -12.99%.

Keep in mind, while ROIC is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future.

Return on Invested Capital is a measure of yearly pre-tax profit relative to capital invested by a business. Changes in earnings and sales indicate shifts in a company's ROIC. A higher ROIC is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROIC suggests the opposite. In Q1, Kaltura posted an ROIC of -12.99%.

Keep in mind, while ROIC is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future.

For Kaltura, a negative ROIC ratio of -12.99% suggests that management may not be effectively allocating their capital. Effective capital allocation is a positive indicator that a company will achieve more durable success and favorable long-term returns; poor capital allocation can be a leech on the performance of a company over time.

Analyst Predictions

Kaltura reported Q1 earnings per share at $-0.09/share, which beat analyst predictions of $-0.11/share.

This article was generated by Benzinga's automated content engine and reviewed by an editor.