Kore Group Holdings, Inc. · NYSE:KORE
Kore — Q2 2024 Earnings Presentation
16 slides from Kore's earnings presentation, Aug 15, 2024
Slide 1: Second Quarter 2024 Earnings Presentation
Second Quarter 2024 Earnings Presentation August 15, 2024 © 2024 © KORE 1 2024 KORE
Slide 2: Disclaimers
Disclaimers Forward-Looking Statements transformation, and foreign currency transaction gains and losses. EBITDA, Adjusted EBITDA and Adjusted EBITDA margin This presentation includes certain statements that are not historical facts but are forward-looking statements for purposes of are intended as
Slide 3: KORE Second Quarter 2024 Earnings - Call Objectives
KORE Second Quarter 2024 Earnings - Call Objectives Review of 90- Restructuring Financial Q&A Session day Priorities Plan Review © 2024 KORE 3
Slide 4: 90-Day Priorities from First Quarter Call and Our Findings
90-Day Priorities from First Quarter Call and Our Findings Engage in ongoing dialogue with Initial Impressions Confirmed 1. core stakeholder groups including key customers ✓ Large addressable market ✓ Best-in-class offering with growing customer demand ✓ Very deep and experienced workforce Evaluate
Slide 5: KORE Restructuring Plan
KORE Restructuring Plan Cost reduction initiatives 1. Reduce operating expenses, streamline processes, and reduce discretionary spending Workforce realignment 2024 cash 2. 25% staff reduction including employees and contractors savings of $5mm - $6mm with FY run-rate Focus on innovation and investme
Slide 6: Q2 Financial Highlights
Q2 Financial Highlights Revenue of $67.9mm, essentially flat year-over-year IoT Connectivity $55.8mm up 16% IoT Solutions $12.1mm down 43% Adjusted EBITDA of $11.4mm Down 20% based on increased operating expenses Free Cash Flow of ($0.1)mm Up $5.9mm from ($6.0)mm in prior year © 2024 KORE 6
Slide 7: Global Sales Pipeline as of June 30, 2024
Global Sales Pipeline as of June 30, 2024 Qualification & Technical Evaluation Stage Total Closed Won TCV continues positive momentum up $12mm from the same quarter Proposal Stage last year for a total of Total $96mm for the first six 1,148Pipeline Opportunities months of 2024 Contract Signed Stage
Slide 8: Key Business Successes
Key Business Successes 1. New Market and AI-driven Use Case 2. Large Enterprise Win KORE secured an agreement in a new market with an AI driven KORE has been selected by one of the world’s largest Food & software platform focused on asset management across the Beverage manufacturers to support globa
Slide 9: Guidance Revision
Guidance Revision Previous Revised 2024 Revenue Outlook $300mm-305mm $275mm-285mm 2024 Adjusted EBITDA Target $64mm-66mm $54mm-56mm Revision reflects delayed launch of a new Connected Health customer (now scheduled for 2025), increasingly cost-conscious customer behavior and slower purchasing cycles
Slide 10: 2024 Financial Highlights
2024 Financial Highlights Three Months Ended June 30, Six Months Ended June 30, Variance Variance 2024 2023 Incr / (Decr.) 2024 2023 Incr / (Decr.) Revenue (In millions USD) % % Amount % % % Amount % IoT Connectivity $55.8 82% $48.3 69% $7.5 16% $113.7 79% $91.9 70% $21.8 24% IoT Solutions $12.1 18%
Slide 11: 2024 Financial Highlights (continued)
2024 Financial Highlights (continued) Three Months Ended June 30, Six Months Ended June 30, Variances Variances 2024 2023 2024 2023 Incr. / (Decr.) Incr. / (Decr.) (In millions USD) Amount % Amount % Total Revenue $67.9 $69.5 ($1.7) -2.4% $143.8 $135.5 $8.3 6.2% Operating Expense $95.8 $47.4 $48.4 1
Slide 12: Summary Q2 2024 Messages
Summary Q2 2024 Messages Large and growing Double-digit IoT Added $44 million Restructuring plan Re-investing the TAM connectivity growth of Closed Won TCV to yield substantial savings, in excess of $12 shows continued in the quarter, up savings, with a focus on the billion annually momentum for the
Slide 13: © 2024 KORE
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Slide 14: Appendix
Appendix © 2024 KORE 14
Slide 15: Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
Reconciliation of Net Loss to EBITDA and Adjusted EBITDA Three Months Ended June 30, Six Months Ended June 30, (in milllons USD) 2024 2023 2024 2023 Net loss (64.30) (19.50) (81.89) (37.99) Income tax benefit (1.44) (0.50) (1.86) (0.86) Interest Expense, net 12.65 10.41 25.29 20.60 Depreciation & Am
Slide 16: Reconciliation of Net Cash from Operating Activities to Free Cash Flow
Reconciliation of Net Cash Provided/(Used) in Operating Activities - Continuing Operations to Free Cash Flow Three Months Ended June 30, Six Months Ended June 30, (in milllons USD) 2024 2023 2024 2023 Net cash provided by/(used) operating activites $ 4.0 $ (0.6) $ 5.9 $ 1.3 Subtract: Purchases of pr