Kore Group Holdings, Inc. · NYSE:KORE
Kore — Q1 2023 Earnings Presentation
21 slides from Kore's earnings presentation, May 9, 2023
Slide 1: First Quarter 2023 Earnings Presentation
First Quarter 2023 Earnings Presentation May 9, 2023 © 2023 © 2023 KORE KORE
Slide 2: Disclaimers
Disclaimers Forward-Looking Statements Use of Non-GAAP Financial Measures This presentation includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private In addition to our results determined in accordance with GAAP, we believe the following non-GAAP measure
Slide 3: Objectives of Our Earnings Call
Objectives of Our Earnings Call Review key Provide financial Answer analyst announcements performance and investor overview and questions key metrics © 2023 KORE 3
Slide 4: Key Announcements
Key Announcements OmniSIMTM SAFE M2M Product of the Year Award KORE’s eSIM solution, KORE OmniSIM™ SAFE was selected as a winner of the M2M Product of the Year by IoT Breakthrough. KORE Named a Magic Quadrant Leader KORE was named a Leader in the 2023 Gartner Magic Quadrant for Managed IoT Connectiv
Slide 5: Summary – Q1 2023 Earnings & 2023 Outlook
Summary – Q1 2023 Earnings & 2023 Outlook Q1 2023 vs. Q1 2022 • Total revenue of $66.0 million vs. $69.0 million (-4%); +6% sequentially from Q4 2022 ‒ IoT Connectivity of $43.5 million vs. $44.1 million (-1%); flat sequentially from Q4 2022 ‒ IoT Solutions revenue of $22.4 million vs. $24.8 million
Slide 6: Financial Highlights
Financial Highlights (Unaudited) Three Months Ended March 31, 2023 2022 Revenue (In millions USD) Revenue % Revenue % IoT Connectivity $43.5 66% $44.1 64% IoT Solutions 22.4 34% 24.8 36% Total revenue $66.0 100% $69.0 100% Gross Margin % IoT Connectivity 65.2% 61.7% IoT Solutions 32.4% 26.0% Overall
Slide 7: Financial Highlights (continued)
Financial Highlights (continued) (Unaudited) Three Months Ended March 31, (In millions USD) 2023 2022 Operating Expense $44.3 $40.9 Operating Loss ($8.7) ($7.2) Net Loss ($18.5) ($11.6) Adj. EBITDA $13.3 $15.3 Net Cash Provided By (Used In) Operating Activities $1.9 ($4.0) Net Cash (Used) In Investi
Slide 8: Long-Term Organic Growth
Long-Term Organic Growth IoT Connectivity Organic Revenue Commentary 2020A-2022A CAGR: 12.7% • KORE has experienced strong organic growth since 2020 $151.6 $165.7 − IoT Connectivity growth has been driven primarily by existing $130.5 customers − IoT Solutions growth has been driven by the organic gr
Slide 9: Global Sales Pipeline as of March 31, 2023
Global Sales Pipeline as of March 31, 2023 Qualification & Technical Evaluation Stage Proposal Stage Total 1,446Pipeline Opportunities Contract Signed Stage $501 million TCV Beta Site Stage Total Closed Won Closed Won $28 million TCV © 2023 KORE 9
Slide 10: Key Business Successes
Key Business Successes 100% wallet share of existing customer Supporting customer growth KORE selected by leader in the advertising market KORE won a contract worth almost $2 million to for OmniSIM™ technology; the unique eSIM solution provide a new remote patient monitoring (RPM) resulted in the cu
Slide 11: Positioned for the Decade of IoT
Positioned for the Decade of IoT as the only Pure-Play IoT Company EVOLUTION ROADMAP 2018 - 2022 2023 2026 2030 Strategy for Begin transformation Acquisition/integration eSIM industry Launched Analytics Broadened industry Healthy revenue “KORE 3.0” finalized of connectivity of Integron; launch of le
Slide 12: Summary Q1'23 Messages and 2023 Outlook
Summary Q1’23 Messages and 2023 Outlook Expanded Increased Global Recession Positioned in gross margin over Added $28 million resistant with high-growth end Sales Pipeline to 500 basis points of TCV 80%+ Recurring markets such as over 1,400 vs. Q1’22 Opportunities Revenues Connected Health Well Posi
Slide 13: Appendix
SILLllliiiiiiiiiiiiiiin: KORE.
Slide 14: Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
Reconciliation of Net Loss to EBITDA and Adjusted EBITDA Three Months Ended March 31, (In millions USD) 2023 2022 Net loss ($18.5) ($11.6) Net loss margin (28.0%) (16.8%) Income tax benefit (0.4) (2.2) Interest Expense 10.2 6.6 Depreciation & Amortization 14.1 13.2 EBITDA 5.5 $6.0 Change in FV of wa
Slide 15: Breakdown of Long-Term Organic Growth
Breakdown of Long-Term Organic Growth IoT Connectivity IoT Solutions FY2020A FY2021A FY2022A FY2020A FY2021A FY2022A Total Total Total Total Total Total Total Revenue (per F/S) $158.8 $169.0 $175.9 Total Revenue (Per F/S) $55.1 $79.4 $92.5 Less: Non-Core Customers ($21.2) ($15.8) ($11.2) Less: #1 Cu
Slide 16: KORE business model: offering high demand IoT services
KORE business model: offering high demand IoT services Product line Products Product description Primary pricing method IoT • IoT connectivity services offered through market leading KORE One IoT platform IoT Connectivity • Our IoT connectivity solutions allow devices to seamlessly and securely conn
Slide 17: IoT use cases are everywhere… deployments are complex
IoT use cases are everywhere… deployments are complex • Sample IoT use cases • Top challenges in IoT deployments Connected Fleet Mgmt. Blood Sugar Monitors Lack of in-house IoT expertise and resources Inability to Challenges in Connected contextualize interoperability Home Security Gas Tank and anal
Slide 18: KORE is building the world's first pure-play IoT enabler
KORE is building the world’s first pure-play IoT enabler What we do for customers... Deploy Manage Scale Connectivity. How Solutions. we do it… Analytics. © 2023 KORE 18
Slide 19: Building a Pure Play IoT Company
Building a Pure Play IoT Company Industry Sectors/Verticals Current Future Connected Health Fleet Management, Remote Monitoring, Connectivity Resellers, IIoT, OEMs, Smart Cities, and IoT-enabled Telematics, Connected Home/Business Security, Failover/Primary, PaaS Smart Utilities etc. Clinical Drug T
Slide 20: Customer IoT Journey
Customer IoT Journey 1 IoT Strategy & End-to-end 2 Technology Evaluation, 3 IoT Connectivity, Device & Data 4 Deployment (forward 5 Operations Management & 6 Sustainment (reverse 7 Analysis & AIoT Security Selection, Dev Management logistics) Support logistics) Business Outcomes/ / Business Outcomes
Slide 21: KORE is the only pure play IoT enabler
KORE is the only pure play IoT enabler IoT Applications Analytics Visualization Enterprises KORE’s customers deliver end-to-end industry solutions. Unencumbered by solution management IoT & Enablement and deployment complexities, these customers can focus on their end customer experience Onboard Con