Kaleyra, Inc.

Kaleyra, Inc. (NYSE: KLR) is a global provider of mobile communication services for financial institutions and corporations. It also offers simple interfaces and Application Protocol Interfaces (APIs) for various channels, and it keeps its product offering up to date to accommodate new end-user consumer behavior changes and advancements.

Key Highlights

• The company reported a 1.20x increase in revenues to USD 84.03 million in Q3FY21 (ended September 25, 2021) compared to USD 38.27 million in Q3FY20.
• However, KLR witnessed an increase in operating losses to USD 7.46 million in Q3FY21 from USD 4.62 million in Q3FY20.
• The company had USD 106.75 million in cash and cash equivalents (including short term investments) as of September 30, 2021, and USD 232.37 million in total debt, indicating a highly leveraged balance sheet.
• KLR reported a gross margin of 23.3% in Q3FY21 compared to an industry mean of 77.5%, indicating a shallow margin business.
• Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) DMA support levels, indicating a bearish trend.
• The stock has been in the bearish trend for the past nine months and made a new 52 week low today.
• KLR stock price has declined 27.05% and 40.27% in the past six and nine months.

Technical Price Chart (as of January 06, 2022). Analysis by Kalkine

Conclusion: Considering the increase in operating losses, macroeconomic conditions, running at weak margins, leveraged balance sheet, and technical indicators, we recommend an "Avoid" rating on the stock at the current price of USD 8.90, down 4.20% as of January 06, 2022, at 1:41 PM ET.

*The reference data in this report has been partly sourced from REFINITIV.