Kore Group Holdings, Inc. · NYSE:KORE
Kore — Q3 2023 Earnings Presentation
20 slides from Kore's earnings presentation, Nov 9, 2023
Slide 1: Third Quarter 2023 Earnings Presentation
Third Quarter 2023 Earnings Presentation November 9, 2023 © 2023 © 2023 KORE KORE 1
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 Announcement: KORE's Refinance Transaction
Key Announcement: KORE’s Refinance Transaction • KORE announces it has signed a definitive agreement for a $150 million strategic investment in the form of preferred stock from Searchlight Capital, allowing for reduction of our term loan indebtedness from ~$304 million to $185 million • Searchlight
Slide 5: Other Key Announcements
Other Key Announcements Empowering Digital Transformation in Retail KORE is increasing its presence in the distributed enterprise customer target segment by collaborating with a national retailer to empower its digital transition with 5G connectivity. This marks a turning point for retail as 5G conn
Slide 6: Summary – Q3 2023 Earnings & Revised 2023 Outlook
Summary – Q3 2023 Earnings & Revised 2023 Outlook Q3 2023 vs. Q3 2022 • Total revenue of $68.6 million vs. $66.1 million (+4%); -1% sequentially from Q2 2023 ‒ IoT Connectivity of $55.2 million vs. $43.4 million (+27%); +14% sequentially from Q2 2023 ‒ IoT Solutions revenue of $13.4 million vs. $22.
Slide 7: Financial Highlights
Financial Highlights (Unaudited) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Revenue (In millions USD) Revenue % Revenue % Revenue % Revenue % IoT Connectivity $55.2 80% $43.4 66% $147.0 72% $133.5 65% IoT Solutions 13.4 20% 22.7 34% 57.1 28% 72.5
Slide 8: Financial Highlights (continued)
Financial Highlights (continued) (Unaudited) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, (In millions USD) 2023 2022 2023 2022 Operating Expense $125.5 $42.6 $217.2 $126.6 Operating Loss ($87.9) ($8.0) ($106.1) ($21.1) Net Loss ($95.4) ($14.3) ($133.4) ($36.6) Adj. E
Slide 9: Summary of Refinancing Transaction
Summary of Refinancing Transaction (in Millions) Pre-Transaction Capital Structure Post-Transaction Capital Structure Investment Structure $300.2M First Lien Term Loan at SOFR +550bps $185M First Lien Term Loan at SOFR +650bps $150M Preferred Equity, 13% Coupon (Cash or PIK) Total Common Shares Outs
Slide 10: Global Sales Pipeline as of September 30, 2023
Global Sales Pipeline as of September 30, 2023 Qualification & Technical Evaluation Stage Proposal Stage Total 1,679Pipeline Opportunities Contract Signed Stage $740 million TCV Beta Site Stage Total Closed Won Closed Won $27 million TCV © 2023 KORE 10
Slide 11: Key Business Successes
Key Business Successes Increasing Share of Wallet Cross-Selling IoT Solutions with the A Remote Patient Monitoring (RPM) company KORE One-Stop-Shop selected KORE as the sole provider of eSIM KORE won a $6.2 million TCV contract with a national Connectivity across the US, UK, and Europe. The retail c
Slide 12: Summary Q3 2023 Messages and 2023 Outlook
Summary Q3 2023 Messages and 2023 Outlook Added over 300k Added $27 million Increased Global Deleveraged Reducing 2024 Organic of TCV bringing Sales Pipeline to Balance Sheet and Operating Connections year-to-date TCV to almost 1,700 Increased Cash Expenses by Total Connections $87 million opportuni
Slide 13: Appendix
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Slide 14: Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
Reconciliation of Net Loss to EBITDA and Adjusted EBITDA (Unaudited) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, (In millions USD) 2023 2022 2023 2022 Net loss ($95.4) ($14.3) ($133.4) ($36.6) Net loss margin (139.1%) (21.6%) (65.3%) (17.8%) Income tax benefit (3.1)
Slide 15: 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 con
Slide 16: 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 17: 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 17
Slide 18: 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 19: 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 20: 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