Kore Group Holdings, Inc. · NYSE:KORE
Kore — Q1 2025 Earnings Presentation
20 slides from Kore's earnings presentation, May 15, 2025
Slide 1: First Quarter 2025 Earnings Presentation
First Qu ar ter 2 025 Earn ings P resen tation May 15, 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements Di scl aime rs This presentation includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. KORE's actual results may differ from their expectations, estimates and projections and conseq
Slide 3: Use of Non-GAAP Financial Measures
Di scl aime rs Use of Non-GAAP Financial Measures In conjunction with net loss calculated in accordance with GAAP, we also use EBITDA and Adjusted EBITDA (as well as Adjusted EBITDA as a percentage of revenue), free cash flow, and Non-GAAP Profit and Non-GAAP Margin to evaluate our ongoing operation
Slide 4: Presentation Outline
1 Q1 2025 Business Highlights 2 Q1 2025 Financial Results P r ese nt a tio n 3 Q&A Outline 4
Slide 5: Q1 2025 Business Highlights
1 Solid operating performance with growth in operating and free cash flow marking two consecutive quarters of positive cash flow 2 Connectivity growth as we approach 20 million Total Connections 3 Solid improvement in IoT Solutions Non-GAAP Margin Q 1 2 02 5 B us ine ss Hig h lig ht s 4 Executing on
Slide 6: Q1 2025 Highlights
Q1 2025 Highlights • Revenue of $72.1 million decreased $3.9 million • Net Loss was $14.9 million reduced by $2.7 million • Adjusted EBITDA as % of Revenue increased by 60 basis points to 20.0% • Cash Flow from Operations improved by $1.0 million to $2.9 million • Free Cash Flow improved by $3.4 mil
Slide 7: Connections Growth
Connections Growth • Total Connections were up 8% to 19.8 million as new and existing customer Connections continue to grow • IoT Connectivity revenue declined $4.0 million largely as we wind down low margin products and due to unusual high usage spikes for a few customers in the prior year period •
Slide 8: Introducing Connectivity eARR
Int roducing Conne ctivi ty eAR R • Move to Estimated Annual Recurring Revenue (eARR) 1 to better illustrate to management and investors recurring nature of Connectivity business model and improve forecasting and planning • Pipeline growth in all geographies led by the Americas and Connected Health
Slide 9: Value Proposition Winning Across Verticals
Va l u e P r o p o s i t i o n W i n n i n g a c r o s s Ve r t i c a l s C LOU D GLO BAL HVAC MUL TI-NATIONAL IOT R EMOTE PATIENT C OMMU NI CATIO NS MANUFACTU RER ALL IANC E MO NITOR ING PLATFOR M • Streamlined, all-in-one • Robust connectivity features • Reliable, high-performance • Ability to del
Slide 10: KORE's Value Creation Plan Guides Our Journey
KO R E ’s Va l u e C r e a t i o n P l a n G u i d e s o u r J o u r n ey Vision Mission To be the trusted global leader in IoT Connectivity To empower our customers to deliver transformative Solutions for over 100,000,000+ connected devices, solutions that deliver impactful outcomes to the enabling
Slide 11: Q1 2025 Financial Results
Q1 2025 Financial Results 11
Slide 12: Q1 2025 Financial Results
Q 1 2 0 2 5 F i n a n c i al R e s u l t s Three Months Ended March 31, Variance 2025 2024 Incr / (Decr.) Revenue (In millions USD) % % Amount % IoT Connectivity $53.9 75% $57.9 76% ($4.0) (6.9%) IoT Solutions $18.2 25% $18.1 24% $0.1 0.7% Total Revenue $72.1 100% $76.0 100% ($3.9) (5.1%) Non-GAAP M
Slide 13: Q1 2025 Results (continued)
Q 1 2 0 2 5 Re s u l t s ( c o n t i n u e d ) Three Months Ended March 31, Variances 2025 2024 Incr. / (Decr.) (In millions USD) Amount % Total Revenue $72.1 $76.0 ($3.9) (5.1%) Operating Expense $41.6 $49.1 ($7.5) (15.3%) Operating Loss ($2.5) ($7.4) ($4.9) (66.7%) Net Loss ($14.9) ($17.6) ($2.7)
Slide 14: 2025 Guidance Maintained
2025 Guidance Maintained 10 2025 Revenue 2025 Adjusted EBITDA 2025 Free Cash Flow $288mm-298mm $62mm-67mm $10mm-14mm YOY*: 2% YOY*: 19% YOY*: 443% Guidance reiterated as we execute on KORE’s Value Creation Plan *midpoint 14
Slide 15: Execution Driving Strong Financial Performance
E x e c u t i o n D r i v i n g S t r o n g F i n a n c i a l Pe r f o r m an c e Revenue Adjusted EBITDA Free Cash Flow $400M $70M 16% 64.5 $20M 6% $350M $15M 12.0 $60M 55.6 293 53.1 $10M 145% $300M 277 285 $50M $5M $250M $0M $40M $200M -$5M -3.5 $30M -$10M $150M $20M -$15M $100M -$20M $50M $10M -$
Slide 16: Q&A
Q&A 16
Slide 17: Appendix | Supplemental Information
Appendix | Supplemental Information 17
Slide 18: Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
R e c o n c i l i a t i o n o f N e t L o s s t o E B I T DA an d A d j u s t e d E B I T DA Three Months Ended March 31, (in thousands) 2025 2024 Net loss $ (14,908) $ (17,587) Income tax expense (benefit) 1,109 (420) Interest expense, net 12,833 12,640 Depreciation and amortization 13,911 13,606 E
Slide 19: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
R e c o n c i l i a t i o n o f N e t C a s h P r ov i d e d b y O p e r a t i n g Acti viti es t o Fr ee C ash Flow Three Months Ended March 31, (in thousands) 2025 2024 Net cash provided by operating activities $ 2,874 $ 1,904 Purchases of property and equipment (126) (877) Additions to intangible
Slide 20: Reconciliation of Gross Margin and Non-GAAP Margin
R e c o n c i l i a t i o n o f G r o s s M ar g i n a n d N o n - G A A P M a r g i n Three Months Ended March 31, ($ in thousands) 2025 2024 IoT Connectivity Revenue $ 53,917 $ 57,844 Cost of revenue, excluding depreciation and amortization 22,216 22,676 Depreciation and amortization in cost of re