Kaleyra, Inc.

Kaleyra reported first-quarter revenue of $83.6 million, up from $80.5 million in the year-ago quarter; on a constant-currency basis, revenue was $85.7 million, up 6%. Gross profit was $21.1 million versus $17.7 million a year ago, and gross margin was 25.2% versus 22% a year ago. Net loss improved to $10 million, or $0.76 per share, compared with a net loss of $13.2 million, or $1.09 per share, in Q1 2022. Adjusted EBITDA was $5.3 million versus $6.2 million a year ago. Cash and cash equivalents plus short-term investments were $75.5 million at quarter-end, down from $78.6 million at December 31, 2022. For Q2, the company guided to revenue of $80 million to $84 million versus $81.1 million in Q2 2022, and reiterated it expects revenue to grow in 2023 versus 2022.

Dario Calogero emphasized that the quarter reflected resilience, better mix, and continued execution on Kaleyra’s value-creation plan. He highlighted the company’s move toward higher-margin delivery channels, its global connectivity footprint, and the launch of its messaging service on Oracle Cloud Infrastructure as signs of strategic momentum. His tone was positive but measured, repeatedly framing the outlook as prudent given the environment and seasonality.

Giacomo Dall'Aglio walked through the quarter’s improvement in profitability metrics, citing $83.6 million of revenue, $21.1 million of gross profit, 25.2% gross margin, $10 million of net loss, and $5.3 million of adjusted EBITDA. He said the gross margin improvement came mainly from better product and geographic mix and that the first quarter produced the first positive EBITDA since Q1 2021, reflecting the cost-reduction program launched in late 2022. He also said cash and cash equivalents plus short-term investments were $75.5 million at quarter-end, and reiterated program goals including more than 15% reduction in monthly cash payroll cost in 2023, improved operating cash flow by year-end, and continued R&D investment.

Analysts focused on what drove the stronger gross margin, the revenue mix between SMS and higher-value offerings, and whether Q2 could be down sequentially despite normal seasonal patterns. Management said non-messaging revenue from voice, video, TCR, and WhatsApp is increasing, and that the company is moving toward an 80/20 mix target. On seasonality, Dario said Q1 and Q2 are typically the low seasons, with more than 55% of revenue historically coming in the second half, and he described the Q2 range as prudent in a tough environment.