Kore Group Holdings, Inc. · NYSE:KORE
Kore — Q3 2024 Earnings Presentation
16 slides from Kore's earnings presentation, Nov 19, 2024
Slide 1: Third Quarter 2024 Earnings Presentation
Third Quarter 2024 Earnings Presentation November 19, 2024 1
Slide 2: Forward-Looking Statements and Disclaimers
Forward-Looking Statements Disclaimers Use of Non-GAAP Financial Measures This presentation includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities In addition to our results determined in accordance with GAAP, we believe the following non-G
Slide 3: Q3 2024 Financial Highlights
Q3 2024 Financial Highlights • In this year of transition, the Company continues to stabilize its financial performance as it prioritizes profitable growth and cash flow following completion of its restructuring plan • Overall Q3 performance and Q4 outlook on track with previous guidance for fiscal
Slide 4: 3Q 2024 Business Update
1 We are winning in the market with strong growth in TCV led by new logos in IoT Connectivity Sequential Q over Q growth in Total Connections 2 demonstrates our increased focus in IoT Connectivity is showing early results Customer Intimacy & Operational Excellence 3 initiatives yielding improved cus
Slide 5: Q3 2024 IoT Connectivity Highlights
Q3 2024 IoT Connectivity Highlights IoT Connectivity continues to grow in r evenue, non-GAAP margin and connections Three Months Ending September 30, Nine Months Ending September 30, Connectivity Revenue Connectivity Non-GAAP Connectivity Revenue Connectivity Non-GAAP Margin Margin 56.7 55.2 34.5 34
Slide 6: Q3 2024 Sales Momentum in IoT Connectivity
Q3 2024 Sales Momentum in IoT Connectivity Strong quar ter with TCV $32 million with 91% in IoT Connectivity driving fur ther growth in Connections Three Months Ending September 30, Nine Months Ending September 30, TCV - Closed Won Connectivity TCV - TCV - Closed Won YTD Connectivity TCV - Closed Wo
Slide 7: Q3 2024 New Business Wins
Q3 2024 New Business Wins GLOBAL HIGH VALUE LARGE SMART AGRICULTURE REMOTE PATIENT ASSET MONITORING HEALTHCARE WIN USE CASE MONITORING WIN KORE secured an KORE has been selected to KORE secured an KORE secured a win with a agreement to provide support a large healthcare agreement in the smart leadin
Slide 8: Restructuring Plan Completed
Re s t r u c t u r i n g P l a n C o m p l e t e d Delivered on restructuring objectives and on-track to deliver savings and customer benefits 25% reduction in headcount complete Workforce Additional savings expected from entity rationalization Realignment Accelerated Connectivity development
Slide 9: 2024 Financial Highlights
2024 Financial Highlights Three Months Ended September 30, Nine Months Ended September 30, Variance Variance 2024 2023 Incr / (Decr.) 2024 2023 Incr / (Decr.) Revenue (In millions % % Amount % % % Amount % USD) IoT Connectivity $56.7 82% $55.2 80% $1.5 3% $170.4 80% $147.0 70% $23.3 16% IoT Solution
Slide 10: 2024 Financial Highlights (continued)
2024 Financial Highlights (continued) Three Months Ended September 30, Nine Months Ended September 30, Variances Variances 2024 2023 2024 2023 Incr. / (Decr.) Incr. / (Decr.) ($ in millions) Amount % Amount % Total Revenue $68.9 $68.6 $0.3 0.4% $212.8 $204.1 $8.6 4.2% Operating Expense $43.8 $125.5
Slide 11: Near Term Priorities and Outlook
N e a r Te r m P r i o r i t i e s a n d 2 0 2 4 O u t l o o k 10 Customer Intimacy Profitable Growth Operational Excellence • Expansion of self-service • Upsell and cross sell with our • Reduce cost to serve capabilities for customers existing customers • Investments in KORE network to • Investment
Slide 12: Third Quarter 2024 Earnings Q&A
Third Quarter 2024 Earnings Q&A November 19, 2024 12
Slide 13: Appendix
Appendix KORE.
Slide 14: Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
Re 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 a n d A d j u s t e d E B I T DA Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2024 2023 2024 2023 Net loss $ (19,408) $ (95,361) $ (120,628) $ (133,350) Income tax benefit (412) (3,093) (2,486) (3,957) Int
Slide 15: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
Re 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 Activities to Fr ee Cash Flow Nine Months Ended September 30, (in thousands) 2024 2023 Net cash provided by operating activities $ 7,066 $ 4,493 Purchases of property and equipment (1,944) (3,410) Additions to intangib
Slide 16: Reconciliation of GAAP Margin and Non-GAAP Margin
Re c o n c i l i a t i o n o f G A A P M a r g i n a n d N o n - G A A P Margin Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands) 2024 2023 2024 2023 IoT Connectivity $ % $ % $ % $ % Revenue $ 56,721 $ 55,169 $170,377 $147,042 Cost of revenue, excluding depreciation a