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 quarter and full year ended December 31, 2024.
2024 Company Highlights
- Revenue was $286.1 million. IoT Connectivity revenue increased by $24.5 million, or 12% year over year
- Total Number of Connectionsincreased 1.2 million to end the year at a total of 19.7 million
- KORE completed its restructuring plan that is delivering over $20 million in annual run-rate savings
- Cash provided by operating activities improved $16.3 million year over year and was $9.9 million
- Free Cash Flow improved $23.1 million year over year and was $1.6 million in the fourth quarter
"During 2024, we made significant changes to our operating model focusing on customer intimacy, operational excellence and profitable growth, which has led to significant financial improvement in the business. We rationalized our product portfolio, invested heavily in our Connectivity offering, improved free cash flow, and streamlined operating costs," said Ron Totton, President and CEO of KORE.
"We are also pleased to have added 1,200,000 IoT Connections in 2024 which is the result of new customers, while growing our share of wallet with existing customers. I would like to thank everyone at KORE for embracing our new customer-centric philosophy as we position KORE for further growth," continued Totton.
Fourth Quarter Consolidated Financial Results
- Revenue for the fourth quarter of 2024 was $73.3 million compared to $72.5 million for the fourth quarter of 2023, up $0.8 million, or 1.1%. This was due to growth of $1.1 million in IoT Connectivity revenue to $56.5 million, partially offset by a decline of $0.3 million in IoT Solutions revenue to $16.8 million.
- Net loss for the fourth quarter of 2024 was $25.4 million, compared to $33.7 million for the fourth quarter of 2023, an improvement of $8.3 million or 24.6%. Adjusted EBITDA for the fourth quarter of 2024 was $14.0 million, compared to $13.8 million for the fourth quarter of 2023, an improvement of $0.2 million, or 1.1%.
- Cash provided by operating activities for the fourth quarter of 2024 was $2.8 million, up $13.8 million compared to the fourth quarter of 2023.
- Free cash flow for the fourth quarter of 2024 was $1.6 million, compared to ($15.5) million in the fourth quarter of 2023.
Full Year Consolidated Financial Results
- Revenue for the full year totaled $286.1 million, compared to $276.6 million one year ago, an increase of $9.5 million, or 3.4%. This increase was due to growth of $24.5 million in IoT Connectivity revenue to $226.9 million, partially offset by a decline of $15.0 million in IoT Solutions revenue to $59.2 million.
- Net Loss for the full year was $146.1 million, compared to $167.0 million one year ago, an improvement of $20.9 million, or 12.5%.
- Adjusted EBITDA for the full year was $53.1 million, compared to $55.6 million a year ago, a decline of $2.5 million, or 4.5%.
- Cash provided by operating activities was $9.9 million for the full year, an improvement of $16.3 million year over year.
- Free cash flow was $(3.5) million for the full year, an improvement of $23.1 million year over year.
Fourth Quarter 2024 Key Metrics and Business Successes
- KORE's Total Connectionswere approximately 19.7 million as of December 31, 2024, an increase of 0.9 million from the third quarter of 2024 and an increase of 1.2 million from the same period in 2023.
- KORE had several notable new business wins in the fourth quarter with closed-won TCV of $29.3 million, of which $9.4 million was related to Connectivity.
- DBNERwas 95% for the twelve months ending December 31, 2024, compared to 96% for the twelve months ending December 31, 2023.
2025 Financial Outlook
For the twelve months ending December 31, 2025, the Company expects the following:
- Revenue in the range of $288 million to $298 million;
- Adjusted EBITDA in the range of $62 million to $67 million; and
- Free Cash Flow in the range of $10 million to $14 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: 13752519
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 link. If you have difficulty with the conference call, please contact KORE investor relations at (678) 392-2386. 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 13752519.
