KORE Group Holdings, Inc. ("KORE" or the "Company"), the global pure-play Internet of Things ("IoT") hyperscaler and provider of IoT Connectivity, Solutions, and Analytics, reported financial and operational results for the three and nine months ended September 30, 2024.
Q3 Highlights
- Third quarter 2024 revenue was $68.9 million, a 0.4% increase from $68.6 million in the same period last year.
- A 3% increase in IoT Connectivity revenue of $56.7 million from $55.2 million in the same period last year was driven by organic growth.
- A 9% decrease in IoT Solutions revenue of $12.2 million from $13.5 million in the same period last year was due to the decision to wind down lower margin hardware business.
- Net loss was $19.4 million for the third quarter of 2024, a 80% decrease from a net loss of $95.4 million for the same period a year ago largely due to the goodwill impairment recorded in the third quarter of the previous year.
- Adjusted EBITDA was $13.0 million for the third quarter of 2024, an 8% decrease from $14.2 million for the same period a year ago largely resulting from a $1.5 million reversal of performance-based variable compensation in the third quarter of 2023.
- The Company maintained positive sales momentum this quarter with a closed-won Total Contract Value (TCV)* of $32 million, a 19% increase from $27 million in the same period a year ago, with the majority of the sales being for IoT Connectivity. For the first nine months of 2024, closed-won TCV was $128 million, versus $87 million in 2023 with the majority being for IoT Connectivity.
- Free Cash Flow was negative $5.1 million, an improvement of $6.0 million from the comparative period last year. The current period was impacted by $1.5 million in severance payments relating to the previously announced restructuring plan.
"While our third-quarter top-line performance showed modest growth, our focus on Connectivity offerings is showing results. With an installed base of close to 19 million connections generating an ARPU of about $1 per month we already have a solid foundation of CaaS business to build on," said Ron Totton, President and CEO of KORE. "We have successfully completed our restructuring plan, which included cost reductions, leadership realignment, and operational improvements. These initiatives have enabled investments in our growth priorities and are already delivering traction in connectivity growth and a better customer experience. We are positioning KORE for sustainable, profitable growth."
2024 Financial Outlook
For the 12 months ending December 31, 2024, the Company has tightened its outlook ranges, and its expectations are:
- Revenue in the range of $280 million to $285 million; and
- Adjusted EBITDA in the range of $54 million to $55 million.
Conference Call Details
KORE management will hold a conference call today at 5:00 p.m. Eastern time (2:00 p.m. Pacific time) to discuss its financial results, business highlights and outlook. President and CEO Ron Totton and CFO Paul Holtz will host the call, followed by a question-and-answer session.
Webcast: Link
U.S. dial-in: (877) 407-3039
International dial-in: (215) 268-9922
Conference ID: 13749781
The conference call and a supplemental slide presentation to accompany management's prepared remarks will be available via the webcast link and for download via the investor relations section of the Company's website, ir.korewireless.com.
For the conference call, please dial in 5-10 minutes prior to the start time, and an operator will register your name and organization, or you may register here. If you have difficulty with the conference call, please contact KORE investor relations at (770) 280-0324. A replay of the conference call will be available approximately three hours after the conference call ends. It will remain on the investor relations section of the Company's website for 90 days. An audio replay of the conference call may be accessed by calling (877)-660-6853 or (201)-612-7415 using access code 13747164.
