KORE Reports Fourth Quarter and Full Year 2024 Results

PR Newswire

ATLANTA, April 30, 2025

Delivering Growth in Connections, IoT Connectivity Revenue, Cash from Operations and Free Cash Flow

ATLANTA, April 30, 2025 /PRNewswire/ -- KORE Group Holdings, Inc. $(KORE)$ ("KORE" or the "Company"), the global pure-play Internet of Things ("IoT") hyperscaler and provider of IoT Connectivity, Solutions, and Analytics, today reported financial and operational results for the quarter and full year ended December 31, 2024.

2024 Company Highlights

   -- Revenue was $286.1 million. IoT Connectivity revenue increased by $24.5 
      million, or 12% year over year 
 
   -- Total Number of Connections1 increased 1.2 million to end the year at a 
      total of 19.7 million 
 
   -- KORE completed its restructuring plan that is delivering over $20 million 
      in annual run-rate savings 
 
   -- Cash provided by operating activities improved $16.3 million year over 
      year and was $9.9 million 
 
   -- Free Cash Flow improved $23.1 million year over year and was $1.6 million 
      in the fourth quarter 

"During 2024, we made significant changes to our operating model focusing on customer intimacy, operational excellence and profitable growth, which has led to significant financial improvement in the business. We rationalized our product portfolio, invested heavily in our Connectivity offering, improved free cash flow, and streamlined operating costs," said Ron Totton, President and CEO of KORE.

"We are also pleased to have added 1,200,000 IoT Connections in 2024 which is the result of new customers, while growing our share of wallet with existing customers. I would like to thank everyone at KORE for embracing our new customer-centric philosophy as we position KORE for further growth," continued Totton.

Fourth Quarter Consolidated Financial Results

   -- Revenue for the fourth quarter of 2024 was $73.3 million compared to 
      $72.5 million for the fourth quarter of 2023, up $0.8 million, or 1.1%. 
      This was due to growth of $1.1 million in IoT Connectivity revenue to 
      $56.5 million, partially offset by a decline of $0.3 million in IoT 
      Solutions revenue to $16.8 million. 
 
   -- Net loss for the fourth quarter of 2024 was $25.4 million, compared to 
      $33.7 million for the fourth quarter of 2023, an improvement of $8.3 
      million or 24.6%. Adjusted EBITDA for the fourth quarter of 2024 was 
      $14.0 million, compared to $13.8 million for the fourth quarter of 2023, 
      an improvement of $0.2 million, or 1.1%. 
 
   -- Cash provided by operating activities for the fourth quarter of 2024 was 
      $2.8 million, up $13.8 million compared to the fourth quarter of 2023. 
 
   -- Free cash flow for the fourth quarter of 2024 was $1.6 million, compared 
      to ($15.5) million in the fourth quarter of 2023. 

Full Year Consolidated Financial Results

   -- Revenue for the full year totaled $286.1 million, compared to $276.6 
      million one year ago, an increase of $9.5 million, or 3.4%. This increase 
      was due to growth of $24.5 million in IoT Connectivity revenue to $226.9 
      million, partially offset by a decline of $15.0 million in IoT Solutions 
      revenue to $59.2 million. 
 
   -- Net Loss for the full year was $146.1 million, compared to $167.0 million 
      one year ago, an improvement of $20.9 million, or 12.5%. 
 
   -- Adjusted EBITDA for the full year was $53.1 million, compared to $55.6 
      million a year ago, a decline of $2.5 million, or 4.5%. 
 
   -- Cash provided by operating activities was $9.9 million for the full year, 
      an improvement of $16.3 million year over year. 
 
   -- Free cash flow was $(3.5) million for the full year, an improvement of 
      $23.1 million year over year. 

The tables below summarize the Company's revenue and specific key metrics.

 
                               Three Months Ended December 31, 
($ in thousands)                2024                      2023 
                      ------------------------  ------------------------ 
IoT Connectivity      $            56.5   77 %  $            55.4   76 % 
IoT Solutions         $            16.8   23 %  $            17.1   24 % 
                      -----------------  -----  -----------------  ----- 
Total Revenue         $            73.3  100 %  $            72.5  100 % 
                      =================  =====  =================  ===== 
 
Total Number of 
 Connections at 
 Period End                 19.7 million              18.5 million 
Average Connections 
 Count for the 
 Period                     19.6 million              18.7 million 
 
                               Twelve Months Ended December 31, 
                      -------------------------------------------------- 
($ in thousands)                2024                      2023 
                      ------------------------  ------------------------ 
IoT Connectivity       $          226.9   79 %   $          202.4   73 % 
IoT Solutions         $            59.2   21 %  $            74.2   27 % 
                      -----------------  -----  -----------------  ----- 
Total Revenue          $          286.1  100 %   $          276.6  100 % 
                      =================  =====  =================  ===== 
 
Total Number of 
 Connections at 
 Period End                 19.7 million              18.5 million 
Average Connections 
 Count for the 
 Period                     18.7 million              17.3 million 
 

Fourth Quarter 2024 Key Metrics and Business Successes

   -- KORE's Total Connections2 were approximately 19.7 million as of December 
      31, 2024, an increase of 0.9 million from the third quarter of 2024 and 
      an increase of 1.2 million from the same period in 2023. 
 
   -- KORE had several notable new business wins in the fourth quarter with 
      closed-won TCV of $29.3 million, of which $9.4 million was related to 
      Connectivity. 
 
   -- DBNER3 was 95% for the twelve months ending December 31, 2024, compared 
      to 96% for the twelve months ending December 31, 2023. 
 
________________________________ 
1 See "Key Metrics" below for definitions. 
2 See "Key Metrics" below for definitions. 
3 See "Key Metrics" below for definitions. 
 

2025 Financial Outlook

For the twelve months ending December 31, 2025, the Company expects the following:

   -- Revenue in the range of $288 million to $298 million; 
 
   -- Adjusted EBITDA in the range of $62 million to $67 million; and 
 
   -- Free Cash Flow in the range of $10 million to $14 million. 

Conference Call Details

KORE management will hold a conference call today at 5:00 p.m. Eastern time (2:00 p.m. Pacific time) to discuss its financial results, business highlights, and outlook. President and CEO Ron Totton and CFO Paul Holtz will host the call, followed by a question-and-answer session.

Webcast: link

U.S. dial-in: (877) 407-3039

International dial-in: (215) 268-9922

Conference ID: 13752519

The conference call and a supplemental slide presentation to accompany management's prepared remarks will be available via the webcast link and for download via the investor relations section of the Company's website, ir.korewireless.com.

For the conference call, please dial in 5-10 minutes prior to the start time, and an operator will register your name and organization, or you may register link. If you have difficulty with the conference call, please contact KORE investor relations at (678) 392-2386. A replay of the conference call will be available approximately three hours after the conference call ends. It will remain on the investor relations section of the Company's website for 90 days. An audio replay of the conference call may be accessed by calling (877)-660-6853 or (201)-612-7415 using access code 13752519.

About KORE

KORE is a pioneer, leader, and trusted advisor delivering mission-critical IoT solutions and services. We empower organizations of all sizes to improve operational and business results by simplifying the complexity of IoT. Our deep IoT knowledge and experience, global reach, purpose-built solutions, and deployment agility accelerate and materially impact our customers' business outcomes. For more information, visit www.korewireless.com.

Non-GAAP Financial Measures

In addition to our results as determined in accordance with GAAP, we believe the following non-GAAP measures are useful in evaluating our operational performance. We use the following non-GAAP financial information to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that non-GAAP financial information, when taken collectively, may be helpful to investors in assessing our operating performance.

EBITDA and Adjusted EBITDA

"EBITDA" is defined as net income (loss) before other non-operating expenses or income, income tax expense or benefit, and depreciation and amortization. "Adjusted EBITDA" is defined as EBITDA adjusted for unusual and other significant items that management views as distorting the operating results from period to period. Such adjustments may include stock-based compensation, integration and acquisition-related charges, tangible and intangible asset impairment charges, certain contingent liability reversals, transformation, and foreign currency transaction gains and losses. EBITDA and Adjusted EBITDA are intended as supplemental measures of our performance that are neither required by nor presented in accordance with GAAP. We believe that the use of EBITDA and Adjusted EBITDA provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company's financial measures with those of comparable companies, which may present similar non-GAAP financial measures to investors. However, you should be aware that when evaluating EBITDA and Adjusted EBITDA, we may incur future expenses similar to those excluded when calculating these measures. In addition, our

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