KORE(KORE) - 2024 Q3 - Quarterly Results

Financial Performance - Third quarter 2024 revenue was $68.9 million, a 0.4$68.6 million in the same period last year[3] - Net loss for Q3 2024 was $19.4 million, an 80$95.4 million in the same period last year[4] - Adjusted EBITDA for Q3 2024 was $13.0 million, an 8$14.2 million in the same period last year[4] - KORE Group Holdings reported a net loss of $19.4 million for Q3 2024, compared to a net loss of$95.4 million in Q3 2023[34] - Adjusted EBITDA for Q3 2024 was $12.99 million, down from$14.16 million in Q3 2023, reflecting a decrease of approximately 8.5%[34] - The company generated $7.07 million in net cash from operating activities for the nine months ended September 30, 2024, compared to$4.49 million in the same period of 2023[36] - Free cash flow for the nine months ended September 30, 2024, was negative $5.11 million, an improvement from negative$11.1 million in the prior year[36] Revenue Breakdown - IoT Connectivity revenue increased by 3% to $56.7 million, while IoT Solutions revenue decreased by 9$12.2 million due to winding down lower margin hardware business[3] - Average Revenue Per User (ARPU) was approximately $1.01 per month, up from$0.98 in the same period last year[9] - The company maintained a DBNER of 95% for Q3 2024, slightly down from 96% in the same period last year[9] - Closed-won Total Contract Value (TCV) for Q3 2024 was $32 million, a 19$27 million in the same period last year[5] Future Outlook - For the 12 months ending December 31, 2024, the company expects revenue in the range of $280 million to$285 million and Adjusted EBITDA in the range of $54 million to$55 million[12] - KORE anticipates future revenue growth and profitability from its restructuring plan, with guidance for 2024 yet to be fully detailed[31] Operational Changes - Integration-related restructuring costs amounted to $5.57 million in Q3 2024, compared to$3.01 million in Q3 2023, indicating increased expenses related to acquisitions[34] - The company is actively pursuing the integration of Twilio's IoT business, which is expected to enhance operational performance and efficiency[31] Interest and Expenses - The company reported a significant increase in interest expense, totaling $13.06 million in Q3 2024, compared to$10.62 million in Q3 2023[34] Strategic Focus - KORE's total contract value (TCV) of signed contracts and potential revenue opportunities is a key focus for future growth, although specific figures were not disclosed[31] - KORE's management emphasizes the importance of navigating risks related to competition and market conditions as part of their strategic outlook[31]