Earnings call from KLTR for the time period
Prepared Remarks:
KLTR Stock : Hello everyone and thank you for joining this Kaltura fourth quarter as well as the the full year 2021 conference call for earnings. The content on the webcast is the sole copyrighted property and copyrighted content from Kaltura All rights remain with Kaltura. In the opening remarks and introductions I’m now turning the call on to Erica Mannion at Sapphire investor relations. You are now free to proceed.
Thank you for your time, and good morning. Joining me today in Kaltura is Ron Yekutiel, co-founder, chairman and chief executive officer as well as Yaron Garmazi the chief financial officer. Ron will begin by providing an overview of the results of the fourth quarter and for the full year ending the 31st of December, 2021 and will also discuss the patterns and areas of interest which are likely to affect 2022. Yaron will then go over more in depth the financial results from the fourth quarter as well as for the entire year. He will then review the outlook in the initial quarter of 2022 and the entire year 2022.
Then, we will start the call to answer questions. Be aware that this call includes forward-looking statements as defined by Securities laws of the United States, which include however not limited to statements about Kaltura’s expectations for future financial performance and management’s plans and expectations regarding the company. These statements do not constitute promises or guarantees, and they involve uncertainties and risks that could result in actual results being different substantially from those described here. Certain factors could cause actual results differ from the forward-looking information are described in the section on risk factors in the quarterly Kaltura report on Form 10Q covering the quarter period that ended on September 30th, 2021 and in other periodic SEC filings, such as an annual report of Form 10K for the year that ended on Dec 31, 2021 due to the SEC.
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The forward-looking statements in the conference, as well as answers to your questions are based on expectations as of the date of this call. Kaltura does not undertake any obligation to modify or update these statements, regardless of whether they are the consequence of changes in circumstances or otherwise, unless required by the law. We are going to discuss a non-GAAP financial measurement that is adjusted EBITDA during the call. For a reconciliation of this non-GAAP financial measure to the most directly comparable GAAP metric, please refer to our earnings release, which is available on our website at www.investors.kaltura.com. This is the time to give the call over to Ron.
We appreciate your time, Erica, and thanks to everyone who joined us for the conference call this morning. We announced today on our fourth-quarter revenue of $42.7 million, an increase of 21% over the previous year as well as that our revenue from subscriptions for the period was $38.5 million, an increase of 33% over the previous year and accounted for about 90% of the total revenue. The annualized recurring revenue, also known as ARR, for fourth-quarter totaled $150.8 million, an increase of 29% over the previous year. The percent of net retention in the fourth quarter was at 120%. This was up from 103% for the same period in the year 2020.
We also saw continued improvement in our gross margins year on one, with 63 percent during the quarter, compared to 60 percent in 2020. In addition, our modified EBITDA during the fourth quarter came in at $7.7 million. The fourth quarter concluded the fiscal year that we increased our revenue by 37 percent and our subscription revenues by 39 percent. We also recorded 75% growth year-over-year for customers who have more than $1 million in ARR, and 25 percent growth in the number of customers who have more than $100,000 in ARR.
The growth in 2021 was fueled by our growth from a position of leadership in the market for video content management to the webinar, virtual event and virtual classroom market. This growth was facilitated through the addition of chat and real-time conferencing capabilities to the earlier video-on-demand as well as live streaming technology stack. This was also accompanied by the shift to the power of more use cases outside within the enterprise, in which CMOs are the primary buyers as well as an increase in the market down which broadens our customer base and includes SMEs as well as departments in large companies with the introduction of more self-service and low-touch products. We’re still in the early phases of this strategic expansion of new product markets within the vast enterprise space.
