Financial Data and Key Metrics Changes - The company reported total revenue for Q4 2024 of CAD 73.3 million, an increase of CAD 0.8 million or 1% year over year [20] - Adjusted EBITDA for Q4 was CAD 14 million, an increase of CAD 0.2 million or approximately 1.1% compared to the prior year [27] - Free cash flow for Q4 was positive CAD 1.6 million, a significant improvement from negative CAD 15.5 million in the prior year [30] - For the full year 2024, total revenue increased CAD 9.5 million or 3% to CAD 286.1 million [21] - The net loss for Q4 was CAD 25.4 million, an improvement from CAD 33.6 million in the prior year [26] Business Line Data and Key Metrics Changes - IoT connectivity revenue for Q4 was CAD 56.5 million, up 2% year over year, representing 77% of total revenue [20] - IoT Solutions revenue declined 2% year over year to CAD 16.8 million, accounting for 23% of total revenue [20] - For the full year, IoT connectivity revenue increased 12% to CAD 226.9 million, representing 79% of total revenue [21] - Non-GAAP IoT connectivity margin was up 300 basis points year over year to 59.3% [21] - Non-GAAP IoT Solutions margin increased 1,500 basis points year over year to 48.1% [21] Market Data and Key Metrics Changes - Total connections at the end of Q4 were 19.7 million, an increase of 1.2 million year over year [6] - Average revenue per user (ARPU) for Q4 was $0.97, down from $0.99 in Q4 2023 [23] - The company expects the IoT market to grow rapidly, with connected devices projected to surpass 96 billion by 2030, growing at a CAGR of over 20% [15] Company Strategy and Development Direction - The company is focused on operational excellence and has launched several AI projects to drive efficiency and support profitable growth [7] - The shift from total contract value (TCV) to estimated annual recurring revenue (EARR) is aimed at better illustrating the recurring revenue business model [11] - The company is committed to delivering innovative high-value solutions that drive growth and success for customers [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about 2025, expecting revenue growth driven by IoT connections and improvements in adjusted EBITDA and free cash flow [34] - The company is mindful of evolving tariff policies that could create uncertainty for customers, but believes its recurring revenue model provides insulation against these pressures [34] - Guidance for 2025 includes revenue in the range of CAD 288 million to CAD 298 million, reflecting a 2% year-over-year growth [35] Other Important Information - Operating expenses in Q4 increased by CAD 4.8 million or 9.7% year over year, primarily due to unrealized foreign exchange losses [25] - The company plans to continue focusing on profitable growth while rationalizing unprofitable contracts and product lines [47] Q&A Session Summary Question: What were the drivers of connections and ARPU? - Management noted that the increase in connections came from low ARPU cases, which were not present for the full quarter, leading to a decrease in ARPU [40][41] Question: Is the low ARPU indicative of market development? - Management indicated that while low ARPU cases contributed to growth, they are not the only source of demand, with growth also seen in connected health and retail sectors [44] Question: What is the guidance for 2025 regarding hardware? - Management stated that they do not expect significant growth or decline in IoT Solutions, and they are moving away from lower-margin hardware deals [63] Question: Are customers slowing down their deployments? - Management has not seen a slowdown in customer demand but is being cautious due to potential tariff impacts [71] Question: How does AI factor into product evolution? - Management highlighted active conversations with customers about using AI to leverage collected data for better decision-making and new revenue streams [80] Question: What are the debt coverage targets? - Management indicated there is no specific target for debt coverage but emphasized a focus on improving cash flows and potentially paying down debt as cash flow improves [83]

Revenue Performance - Total revenue for the year ended December 31, 2024, was $286.1 million, representing a 3% increase from $276.6 million in 2023[170] - Revenue from IoT Connectivity services increased by approximately $24.5 million, or 12%, to $226.9 million in 2024, driven by the acquisition of Twilio's IoT business[173] - Revenue from IoT Solutions decreased by approximately $15.0 million, or 20%, to $59.2 million in 2024, primarily due to reduced demand from major customers[174] - Services revenue increased by approximately $21.6 million, or 10%, to $234.2 million in 2024, largely attributed to new customer business and increased connectivity utilization[171] - Revenue from IoT Connectivity for 2024 was $226,853 thousand, up from $202,393 thousand in 2023, with a gross margin of 41.0%[199] - Revenue from IoT Solutions for 2024 was $59,234 thousand, down from $74,217 thousand in 2023, with a gross margin of 31.4%[199] Cost and Expenses - Cost of revenue decreased by 2% to $126.2 million in 2024, with a notable decrease in the cost of products by approximately $13.5 million, or 29%[176] - Selling, general, and administrative (SG&A) expenses increased by approximately $10.8 million, or 8%, to $140.0 million in 2024, driven by higher personnel-related costs[180] Profitability Metrics - Net loss for the year ended December 31, 2024, was $146,076 thousand, an improvement from a net loss of $167,042 thousand in 2023[190] - Adjusted EBITDA for 2024 was $53,138 thousand, slightly down from $55,550 thousand in 2023[190] - Non-GAAP Profit for 2024 was $161,089 thousand, representing a Non-GAAP Margin of 56.3%, compared to $148,150 thousand and 53.6% in 2023[199] Cash Flow and Liquidity - Free cash flow for 2024 was $(3,549) thousand, an improvement from $(26,649) thousand in 2023[193] - For the year ended December 31, 2024, net cash provided by operating activities was approximately $9.9 million, a significant improvement from a net cash used of $6.4 million in 2023[236] - Cash used in investing activities for 2024 was $13.5 million, compared to $20.2 million in 2023, primarily for investments in property, equipment, and internally developed software[238] - As of December 31, 2024, the company had approximately $19.4 million in cash on hand, reflecting its liquidity position[242] - The company plans to defer cash payments of dividends on the Series A-1 preferred stock to preserve cash for other purposes[240] Debt and Financing - Total long-term debt and other borrowings, net, was $295.661 million as of December 31, 2024, compared to $296.109 million as of December 31, 2023[219] - The Company has a senior secured term loan of $183.150 million and backstop notes of $120 million as of December 31, 2024[219] - The Credit Facilities have a maturity date of November 15, 2028, with principal payments of approximately $0.5 million due quarterly[221] - The Series A-1 preferred stock has a liquidation preference of $1,000 per share, with a total carrying amount of $142.776 million as of December 31, 2024[231] - The Company issued the Backstop Notes at a rate of 5.50% per annum, due September 30, 2028[226] - The Total Net Leverage Ratio must not exceed 5.75:1.00 for the quarterly periods ended September 30, 2024, and December 31, 2024[224] - The Company has identified sources of financing that are believed to be adequate for meeting both short-term and long-term liquidity needs[218] Operational Insights - The company anticipates stable revenue from Connectivity verticals, while IoT Managed Services may experience volatility due to macroeconomic conditions[166] - The company has contracted with a new third-party administrator for 2025, expected to reduce administration costs on a per-employee basis[184] - KORE's DBNER was 95% for the twelve months ended December 31, 2024, down from 96% for the same period in 2023, indicating slightly more revenue from new customer wins[212] - The sales funnel included over 1,062 opportunities with an estimated potential TCV of over $312 million as of December 31, 2024, compared to over 1,600 opportunities with a TCV of over $545 million as of December 31, 2023[214] - The company plans to focus on strategic acquisitions and operational improvements to enhance liquidity and growth[192] Accounting and Valuation - EBITDA and Adjusted EBITDA metrics are utilized to evaluate ongoing operations, with adjustments made for unusual and significant items[187][189] - The company expects quarter-to-quarter GAAP earnings volatility due to various accounting estimates and assumptions, which may impact reported earnings[244] - The company recorded a goodwill impairment loss of $65.9 million in the second quarter of 2024 and $78.3 million in the third quarter of 2023, indicating ongoing challenges in asset valuation[250] Connection Metrics - Total Number of Connections increased to 19.7 million as of December 31, 2024, up from 18.5 million in 2023[206] - Average Connections Count for 2024 was 18.7 million, compared to 17.3 million in 2023[206] - ARPU was $0.97 for the three months ended December 31, 2024, down from $0.99 for the same period in 2023[216] Purchase Commitments - The total purchase commitments payable as of December 31, 2024, amounted to $58.0 million, with a significant reduction in the Google Cloud Platform commitment from $22.0 million to $10.9 million, or approximately 50.5%[241]

Revenue Performance - Revenue for Q4 2024 was $73.3 million, a 1.1% increase from $72.5 million in Q4 2023, driven by a $1.1 million growth in IoT Connectivity revenue[5] - Full year revenue totaled $286.1 million, up $9.5 million or 3.4% from $276.6 million in 2023, with IoT Connectivity revenue increasing by $24.5 million to $226.9 million[9] - KORE's total revenue for the year ended December 31, 2024, was $146,076,000, down from $167,042,000 in 2023[38] - The company expects revenue for 2025 to be in the range of $288 million to $298 million[14] Financial Loss and Improvement - Net loss for Q4 2024 improved to $25.4 million, a reduction of 24.6% compared to $33.7 million in Q4 2023[9] - KORE Group Holdings reported a net loss of $25,448,000 for Q4 2024, an improvement from a net loss of $33,692,000 in Q4 2023[38] - The company incurred a goodwill impairment loss of $65,861,000 for the year ended December 31, 2024[38] Cash Flow and EBITDA - Adjusted EBITDA for Q4 2024 was $14.0 million, a slight increase of 1.1% from $13.8 million in Q4 2023[9] - Adjusted EBITDA for Q4 2024 was $13,976,000, slightly up from $13,824,000 in Q4 2023[38] - Free Cash Flow for Q4 2024 was $1.6 million, a significant improvement from a negative $15.5 million in Q4 2023[9] - Free cash flow for Q4 2024 was $1,562,000, compared to a negative free cash flow of $15,546,000 in Q4 2023[39] - Total cash provided by operating activities for Q4 2024 was $2,840,000, a significant recovery from a cash used of $10,912,000 in Q4 2023[39] Operational Metrics - The total number of IoT Connections increased by 1.2 million to 19.7 million by the end of 2024[4] - The Dollar-Based Net Expansion Rate (DBNER) for the twelve months ending December 31, 2024, was 95%, down from 96% in the previous year[11] - KORE's average revenue per user (ARPU) is a key metric for assessing revenue generation per connection, calculated on a quarterly basis[33][34] Restructuring and Future Outlook - KORE completed its restructuring plan, resulting in over $20 million in annual run-rate savings[5] - Notable new business wins in Q4 included closed-won Total Contract Value (TCV) of $29.3 million, with $9.4 million related to Connectivity[13] - The company anticipates future revenue growth and operational efficiency improvements as part of its restructuring plan[35] - KORE's integration-related restructuring costs for the year were $19,159,000, compared to $16,532,000 in 2023[38] - The company reported a change in fair value of warrant liability of $2,309,000 for Q4 2024[38]

F o u r t h Q u a r t e r 2 0 2 4 E a r n i n g s P r e s e n t a t i o n April 30, 2025 1 Disclaimers Forward-Looking Statements 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 consequently, you should not rely on these forward-looking statements as predictions of future events. Forward-looking statements ...

Core Insights - KORE Group Holdings, Inc. reported significant financial improvements in 2024, driven by a focus on customer intimacy, operational excellence, and profitable growth [3][4] - The company added 1.2 million IoT connections in 2024, reaching a total of 19.7 million connections by year-end [4][11] - KORE's revenue for the full year was $286.1 million, a 3.4% increase from $276.6 million in 2023, primarily due to a $24.5 million increase in IoT Connectivity revenue [9][10] Financial Performance - Fourth quarter revenue was $73.3 million, up 1.1% from $72.5 million in the same quarter of 2023, with IoT Connectivity revenue increasing to $56.5 million [10] - For the full year, IoT Connectivity revenue reached $226.9 million, a 12% increase year-over-year, while IoT Solutions revenue declined to $59.2 million [9][11] - The net loss for the fourth quarter improved to $25.4 million from $33.7 million in the previous year, marking a 24.6% reduction [10] Cash Flow and Operational Metrics - Cash provided by operating activities for the fourth quarter was $2.8 million, an increase of $13.8 million compared to the same quarter in 2023 [10] - Free cash flow improved significantly to $1.6 million in the fourth quarter, compared to a negative $15.5 million in the same period of 2023 [10] - The company completed its restructuring plan, resulting in over $20 million in annual run-rate savings [9] Future Outlook - For the twelve months ending December 31, 2025, KORE expects revenue in the range of $288 million to $298 million, with Adjusted EBITDA projected between $62 million and $67 million [19]

Core Viewpoint - KORE Group Holdings, Inc. has received a notice from the NYSE regarding non-compliance due to the late filing of its Annual Report on Form 10-K for the fiscal year ended December 31, 2024 [1][2]. Group 1: Compliance and Filing Status - The NYSE notice indicates that KORE has six months from April 15, 2025, to regain compliance by filing the Form 10-K with the SEC [2]. - If KORE fails to file within the six-month period, the NYSE may grant an extension of up to six additional months at its discretion [2]. - The company anticipates filing the Form 10-K by April 30, 2025, due to the need for additional time and resources for financial reporting [3]. Group 2: Company Overview - KORE is recognized as a leader in IoT solutions, providing critical services that help organizations improve operational and business results [4]. - The company emphasizes its deep IoT knowledge, global reach, and purpose-built solutions to enhance customer business outcomes [4].

Core Insights - KORE Group Holdings and Banzai International are emerging tech companies positioned to benefit from the growing AI service industry, expected to experience substantial growth over the next five years [1] - KORE Group Holdings is focused on the IoT industry, which is projected to grow at a high teens CAGR over the next five to ten years, driven by the increase in connected devices and advancements in 5G technology [2][3] - Banzai International is well-positioned for a potential takeover, particularly by CRM companies looking to enhance their AI-assisted services, with a strong partnership already established with Salesforce [7][8] KORE Group Holdings - KORE Group Holdings operates in various sectors including healthcare, fleet management, and industrial production, with a forecast to cover over 19 million connected devices by 2025 [3] - The company is expected to see incremental top-line growth in fiscal 2025, with acceleration anticipated in 2026 and 2027, although current analyst coverage is limited [4] - Institutional ownership is significant, with a 50% institutional ratio, indicating strong support despite dwindling analyst coverage [5] Banzai International - Banzai International's stock has shown a notable increase, with a current price of $1.22, reflecting a 16.19% rise [7] - The company offers a range of services including a webinar platform and AI-powered tools, with a consensus forecast for nearly 90% revenue growth in fiscal 2025 [10] - Institutional ownership is nearly 100%, and there is a bullish sentiment among analysts, with one rating the stock as a Buy and projecting a 1000% upside [11]

Core Points - KORE Group Holdings, Inc. has postponed the release of its financial results for the fourth quarter and full year ended December 31, 2024, which was originally scheduled for April 15, 2025 [1][2] - The new expected date for the financial results release is after market close on April 30, 2025, along with the filing of its Annual Report on Form 10-K [1][2] - A live webcast conference call to discuss the financial results is scheduled for April 30, 2025, at 5:00 p.m. Eastern Daylight Time [2] Company Overview - KORE is recognized as a leader in providing mission-critical IoT solutions and services, aimed at simplifying the complexity of IoT for organizations of all sizes [3] - The company emphasizes its deep IoT knowledge, global reach, and purpose-built solutions to enhance operational and business results for its customers [3]

Core Insights - KORE Group Holdings, Inc. will release its financial results for Q4 2024 and the full year 2024 on April 15, 2025, after U.S. market closing [1] - A live webcast will be hosted on the same day at 5:00 p.m. Eastern time to discuss the financial results, followed by a Q&A session [1] Company Overview - KORE is recognized as a pioneer and leader in delivering mission-critical IoT solutions and services, aimed at simplifying the complexity of IoT for organizations of all sizes [2] - The company emphasizes its deep IoT knowledge, global reach, purpose-built solutions, and deployment agility to enhance operational and business results for its customers [2]

Core Insights - KORE Group Holdings, Inc. has appointed Jared Deith as Executive Vice President and Chief Revenue Officer, aiming to drive transformative growth in the IoT market [1][2][3] - Deith's previous role as Executive Vice President, Connected Health will be consolidated with his new responsibilities as CRO, indicating a strategic organizational redesign [2][3] - The CEO of KORE, Ron Totton, emphasized Deith's leadership qualities and customer focus, which are expected to enhance KORE's position in the IoT space [3] Company Overview - KORE is recognized as a leader in IoT solutions, providing critical services that help organizations improve operational and business outcomes [4] - The company aims to simplify the complexity of IoT through its deep knowledge, global reach, and purpose-built solutions [4]