ATLANTA, July 8, 2024 /PRNewswire/ -- KORE Group Holdings, Inc. (NYSE:KORE) ("KORE," the "Company," "we" or "our), a global leader in Internet of Things ("IoT") Solutions and pioneering IoT hyperscaler, announced that Bruce Gordon has joined as Executive Vice President and Chief Operating Officer (COO), effective July 2, 2024. In connection with his employment, the Company made a grant to Gordon of an aggregate of 100,000 restricted stock units ("RSUs"), where each RSU represents the right to receive one sh ...

The primary goal of the reverse stock split is to increase the per share market price of the Company's common stock to meet the minimum per share price requirement for continued listing on the NYSE. The reverse stock split was approved by the Company's stockholders at its annual meeting of stockholders held on June 12, 2024. On June 21, 2024, the Company's Board of Directors approved the reverse stock split at the ratio of 1-for-5. Continental Stock Transfer & Trust ("Continental"), the Company's transfer a ...

Revenue Performance - Total revenue for the three months ended March 31, 2024, was $75.975 million, representing a 15% increase from $65.975 million in the same period of 2023[93]. - Revenue from IoT Connectivity services increased by approximately $14.3 million, or 33%, driven primarily by the acquisition of Twilio's IoT business[95]. - Revenue from IoT Solutions declined by approximately $4.3 million, or 19%, primarily due to reduced demand from major customers[96]. - Services revenue growth of approximately $12.1 million was driven by new customer business and increased connectivity utilization[93]. Cost Analysis - Cost of services increased by $7.4 million, or 44.8%, primarily due to additional carrier costs related to the Twilio acquisition[98]. - Cost of products decreased by $3.5 million, or 25.5%, due to lower hardware sales volume from existing IoT Solutions customers[100]. - Overall blended cost of revenue as a percentage of revenue was 55.0% for the three months ended March 31, 2024, compared to 54.0% in the same period of 2023[99]. - The cost of IoT Connectivity increased by $7.5 million, or 49.6%, primarily due to additional carrier costs and increased connectivity consumption[100]. - The cost of IoT Solutions decreased by $3.6 million, or 23.9%, primarily due to lower costs associated with reduced revenue from existing customers[102]. Operating Expenses - Selling, general, and administrative (SG&A) expenses increased by $5,526 thousand, or 18%, from $30,011 thousand in Q1 2023 to $35,537 thousand in Q1 2024, primarily due to higher salaries, benefits, and increased license and subscription costs[104]. - There were no SG&A expenses incurred with affiliates in Q1 2024, a decrease of 100% from $189 thousand in Q1 2023, following the termination of a technical assistance services agreement[105]. Financial Performance - EBITDA for Q1 2024 was $8,239 thousand, an increase from $5,461 thousand in Q1 2023, while Adjusted EBITDA rose to $14,757 thousand from $13,328 thousand[110]. - The Dollar-Based Net Expansion Rate (DBNER) decreased to 94% for the twelve months ended March 31, 2024, down from 107% for the same period in 2023, primarily due to reduced IoT solutions revenue from certain customers[120]. Debt and Financing - As of March 31, 2024, total long-term debt and other borrowings, net, amounted to $295,984 thousand, a slight decrease from $296,109 thousand as of December 31, 2023[125]. - The Company entered into a credit agreement with WhiteHorse Capital Management, consisting of a senior secured term loan of $185 million and a revolving credit facility of $25 million, effective November 15, 2023[126]. - Principal payments of approximately $0.5 million are due on the last business day of each quarter, with the maturity date of the Credit Facilities set for November 15, 2028[127]. - The Credit Facilities are secured by substantially all of the Company's subsidiaries' assets and are subject to customary financial covenants, including Total Net Leverage Ratio and First Lien Net Leverage Ratio[129]. - The Total Net Leverage Ratio is set at 6.25:1.00 for the quarterly periods ending March 31, 2024, and June 30, 2024, decreasing to 5.25:1.00 for periods ending December 31, 2025, and thereafter[131]. - The Backstop Notes consist of $95.1 million in senior unsecured exchangeable notes due 2028, with a second tranche of $24.9 million issued later[132]. - The Backstop Notes bear interest at a rate of 5.50% per annum, with the potential to exchange into approximately 9.6 million shares of common stock at a Base Exchange Rate of $12.50 per share[133]. - The Company has authorized 35,000,000 shares of preferred stock, with 152,857 shares of Series A-1 preferred stock issued, mandatorily redeemable for cash on November 15, 2033[136]. - The Series A-1 preferred stock accrues dividends at a rate of 13% per year, compounded and payable quarterly, with approximately $7.6 million in interest liability currently owed[139][144]. Cash Flow - Cash provided by operating activities for the three months ended March 31, 2024, was $1.904 million, a slight decrease from $1.915 million in 2023[140]. - Cash used in investing activities for the three months ended March 31, 2024, was $4.685 million, primarily for investments in internally developed software and property and equipment[142]. - Cash used in financing activities for the three months ended March 31, 2024, was $1.180 million, mainly due to scheduled principal payments on the Term Loan[143]. - The Company had a total of $46.3 million in purchase commitments payable that were not recorded as liabilities on the balance sheet as of March 31, 2024[145]. - The Company plans to defer cash payment of interest on the Series A-1 preferred stock to preserve cash for other purposes[144]. Market Environment - The overall macroeconomic environment remains challenging, with high interest rates and persistent inflation impacting business demand for IoT solutions[88]. - The sales funnel as of March 31, 2024, included over 1,190 opportunities with an estimated potential Total Contract Value (TCV) of over $422 million, compared to over 1,400 opportunities with a TCV of over $500 million as of March 31, 2023[122].

[Executive Summary & Q1 2024 Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Q1%202024%20Highlights) [Company Overview and Strategic Focus](index=1&type=section&id=Company%20Overview%20and%20Strategic%20Focus) KORE, a global pure-play Internet of Things (IoT) hyperscaler, reported solid first quarter 2024 results, driven by strategic investments in IoT Connectivity and organic growth. The interim CEO emphasized a dual focus on prioritizing growth opportunities and optimizing operational performance to enhance stockholder value - KORE Group Holdings, Inc. is a global pure-play Internet of Things (IoT) hyperscaler and provider of IoT Connectivity, Solutions, and Analytics[2](index=2&type=chunk) - Interim President and CEO Ron Totton highlighted solid Q1 results, attributing them to investments in IoT Connectivity and organic growth, and stated a priority to optimize operational performance and pursue growth opportunities to increase stockholder value[4](index=4&type=chunk) [First Quarter 2024 Financial and Operational Highlights](index=1&type=section&id=First%20Quarter%202024%20Financial%20and%20Operational%20Highlights) KORE achieved a **15.2%** year-over-year revenue increase in Q1 2024, reaching **$76.0 million**, primarily fueled by a **33%** surge in IoT Connectivity revenue. The company also saw a reduction in net loss and an increase in Adjusted EBITDA, alongside a strong sales quarter with **$52 million** in closed-won Total Contract Value (TCV) Q1 2024 Financial and Operational Highlights | Metric | Q1 2024 | Q1 2023 | Change (%) | | :-------------------------- | :---------- | :---------- | :--------- | | Revenue | $76.0 million | $66.0 million | 15.2% | | IoT Connectivity Revenue | $57.9 million | $43.5 million | 33% | | IoT Solutions Revenue | $18.1 million | $22.4 million | -19% | | Net Loss | $(17.6) million | $(18.5) million | -4.9% | | Adjusted EBITDA | $14.8 million | $13.3 million | 10.7% | | Closed-won Total Contract Value (TCV) | $52 million | $28 million | 85.7% | - IoT Solutions revenue decline was attributed to the timing of shipments to top customers and a strategic decision to reduce lower-margin hardware deals to improve working capital[5](index=5&type=chunk) - Closed-won Total Contract Value (TCV) included a **$26 million** Connected Health contract[5](index=5&type=chunk) [2024 Financial Outlook](index=1&type=section&id=2024%20Financial%20Outlook) KORE reaffirms its full-year 2024 financial guidance, projecting revenue between **$300M** and **$305M** and Adjusted EBITDA between **$64M** and **$66M**, anticipating a re-acceleration in IoT Connectivity growth to high-teens percentage rates Full Year 2024 Financial Guidance | Metric | Guidance Range | | :---------------- | :------------- | | Revenue | $300M - $305M | | Adjusted EBITDA | $64M - $66M | - IoT Connectivity revenue is projected to grow at a percentage rate in the high teens in 2024[5](index=5&type=chunk) [Detailed Financial Results](index=2&type=section&id=Detailed%20Financial%20Results) [Revenue and Key Metrics Summary](index=2&type=section&id=Revenue%20and%20Key%20Metrics%20Summary) For Q1 2024, KORE's total revenue was **$76.0 million**, with IoT Connectivity accounting for **76%** (**$57.9 million**) and IoT Solutions for **24%** (**$18.1 million**). The company reported **18.3 million** total connections at period end and a Dollar-Based Net Expansion Rate (DBNER) of **94%** Three Months Ended March 31, 2024 vs. 2023 | ($ in millions) | 2024 | % of Total | 2023 | % of Total | | :-------------------------- | :--- | :--------- | :--- | :--------- | | IoT Connectivity | $57.9 | 76% | $43.5 | 66% | | IoT Solutions | $18.1 | 24% | $22.4 | 34% | | **Total Revenue** | **$76.0** | **100%** | **$66.0** | **100%** | | Period End Total Connections | 18.3 million | | 15.1 million | | | Average Total Connections for the Period | 18.1 million | | 15.1 million | | | DBNER | 94% | | 107% | | [Company Information](index=3&type=section&id=Company%20Information) [About KORE](index=3&type=section&id=About%20KORE) KORE positions itself as a pioneer, leader, and trusted advisor in delivering mission-critical IoT solutions and services. The company aims to simplify the complexity of IoT, enabling organizations to improve operational and business results through its deep expertise, global reach, purpose-built solutions, and agile deployment - KORE is a pioneer, leader, and trusted advisor delivering mission-critical IoT solutions and services[12](index=12&type=chunk) - The company empowers organizations to improve operational and business results by simplifying the complexity of IoT through its deep knowledge, global reach, purpose-built solutions, and deployment agility[12](index=12&type=chunk) [Non-GAAP Financial Measures & Key Metric Definitions](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Key%20Metric%20Definitions) [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) KORE utilizes non-GAAP financial measures, specifically EBITDA and Adjusted EBITDA, as supplemental tools to evaluate operational performance and for internal planning. While useful for assessing trends and comparing with peers, these measures are not GAAP-compliant and should not be considered in isolation, especially given the difficulty in providing forward-looking GAAP reconciliations - EBITDA is defined as net income (loss) before other non-operating expenses or income, income tax expense or benefit, and depreciation and amortization[14](index=14&type=chunk) - Adjusted EBITDA further adjusts EBITDA for unusual and significant items such as stock-based compensation, integration and acquisition-related charges, and foreign currency transaction gains and losses, which management views as distorting operating results[14](index=14&type=chunk) - Non-GAAP measures are supplemental and should not be considered in isolation or as a substitute for GAAP results; forward-looking GAAP equivalents and reconciliations are not provided due to uncertainty and potential variability of reconciling items[15](index=15&type=chunk)[16](index=16&type=chunk) [Key Metric Definitions](index=4&type=section&id=Key%20Metrics) KORE employs specific key metrics—Number of Customer Connections, DBNER, and Total Contract Value (TCV)—to gauge business performance, identify trends, alleviate financial projections, and inform strategic decisions. The company notes that its calculation methods for these metrics may differ from those used by other entities - KORE reviews a number of metrics to measure performance, identify trends, prepare financial projections, and make strategic decisions, acknowledging that their calculation may differ from other companies[17](index=17&type=chunk) [Number of Customer Connections](index=4&type=section&id=Number%20of%20Customer%20Connections) The 'Total Number of Connections at Period End' encompasses all IoT Connectivity services connections, including eSIMs, but excludes certain mobile carrier licensed platform connections. This metric, along with 'Average Connections Count for the Period,' serves as a primary indicator for management and investors to assess business growth on a SIM and/or device basis - The 'Total Number of Connections at Period End' includes all IoT Connectivity services connections, including eSIMs, but excludes certain connections where mobile carriers license KORE's subscription management platform[18](index=18&type=chunk) - These metrics are the principal measures used by management and investors to assess the growth of the business on a periodic, SIM, and/or device-based perspective[19](index=19&type=chunk) [DBNER (Dollar-Based Net Expansion Rate)](index=4&type=section&id=DBNER) DBNER measures the combined impact of cross-sales, customer retention, and growth from KORE's existing 'go-forward' customers. It is calculated by dividing current period revenue from this cohort by their revenue from one year prior, specifically excluding revenue from new customers and 'non-go-forward' customers to focus on 'same store' growth and retention - DBNER tracks the combined effect of cross-sales of IoT Solutions to existing customers, customer retention, and the growth of existing business[20](index=20&type=chunk) - It is calculated by dividing revenue for a given period from existing go-forward customers by the revenue from the same customers for the same period one year prior[20](index=20&type=chunk) - DBNER is used by management as a measure of growth of existing customers ('same store' growth) and customer retention, explicitly excluding new customer wins and declines from non-go-forward customers[23](index=23&type=chunk)[24](index=24&type=chunk) [Total Contract Value (TCV)](index=5&type=section&id=Total%20Contract%20Value%20(TCV)) Total Contract Value (TCV) represents KORE's estimated value of a revenue opportunity. For IoT Connectivity, TCV is calculated as **forty** times the estimated revenue for the twelfth month of production. For IoT Solutions, it is either the actual total expected revenue or, for longer-term programmatic recurring revenue, the calculated value for the first **36 months** of the delivery period - Total Contract Value (TCV) represents KORE's estimated value of a revenue opportunity[25](index=25&type=chunk) - TCV for IoT Connectivity is calculated by multiplying by **forty** the estimated revenue expected to be generated during the twelfth month of production[25](index=25&type=chunk) - TCV for IoT Solutions is either the actual total expected revenue opportunity or, for longer-term 'programmatically recurring revenue' programs, calculated for the first **36 months** of the delivery period[25](index=25&type=chunk) [Legal & Investor Information](index=5&type=section&id=Legal%20%26%20Investor%20Information) [Cautionary Note on Forward-Looking Statements](index=5&type=section&id=Cautionary%20Note%20on%20Forward-Looking%20Statements) This section serves as a cautionary note regarding forward-looking statements within the press release, highlighting that they are subject to various risks and uncertainties, including economic conditions, integration challenges, and competitive pressures. Actual events may differ materially from these statements, and KORE explicitly disclaims any obligation to update them - The press release includes forward-looking statements subject to risks and uncertainties, provided for illustrative purposes only and not as guarantees of future events[26](index=26&type=chunk) - Risks include general economic, financial, legal, political, and business conditions, potential effects of COVID-19, risks related to business rollout and milestones, integration of acquired companies, and the ability to realize TCV as revenue[26](index=26&type=chunk) - KORE specifically disclaims any obligation to update these forward-looking statements, and undue reliance should not be placed upon them[26](index=26&type=chunk)[27](index=27&type=chunk) [Investor Contact](index=6&type=section&id=KORE%20Investor%20Contact) This section provides the contact details for KORE's Vice President of Investor Relations, Corporate Development and Strategy, Vik Vijayvergiya, for investor inquiries - Investor contact is Vik Vijayvergiya, Vice President, IR, Corporate Development and Strategy, reachable at vvijayvergiya@korewireless.com or (770) 280-0324[28](index=28&type=chunk) [Financial Reconciliations](index=7&type=section&id=Financial%20Reconciliations) [Reconciliation of Net Loss to Adjusted EBITDA](index=7&type=section&id=RECONCILIATION%20OF%20NET%20LOSS%20TO%20ADJUSTED%20EBITDA) This unaudited table presents the reconciliation of KORE's net loss to EBITDA and Adjusted EBITDA for the three months ended March 31, 2024, and 2023, detailing adjustments for items such as income tax benefit, interest expense, depreciation, stock-based compensation, and integration-related restructuring costs Reconciliation of Net Loss to Adjusted EBITDA (Unaudited) | (in thousands) | 2024 | 2023 | | :---------------------------------- | :--------- | :--------- | | Net loss | $(17,587) | $(18,490) | | Income tax benefit | $(420) | $(369) | | Interest expense, net | $12,640 | $10,195 | | Depreciation and amortization | $13,606 | $14,125 | | **EBITDA** | **$8,239** | **$5,461** | | Change in fair value of warrant liability | $(2,321) | $(3) | | Transformation expenses | — | $1,864 | | Acquisition costs | — | $3,207 | | Integration-related restructuring costs | $4,573 | — | | Stock-based compensation | $2,708 | $2,570 | | Foreign currency loss | $1,344 | $112 | | Other (1) | $214 | $117 | | **Adjusted EBITDA** | **$14,757** | **$13,328** | (1) "Other" adjustments are comprised of adjustments for certain indirect or non-income based taxes

ATLANTA, May 9, 2024 /PRNewswire/ -- KORE Group Holdings, Inc. (NYSE: KORE) ("KORE" or the "Company"), the global pure-play Internet of Things ("IoT") hyperscaler, and provider of IoT Connectivity, Solutions and Analytics announced that on May 15, 2024, after the U.S. market closes it will release its financial results for the first quarter of 2024. KORE will host a live webcast, followed by a question-and-answer period the same day at 5:00 p.m. Eastern time (2:00 p.m. Pacific time) to discuss the financial ...

Romil Bahl to step down and Ronald Totton named as Interim President and CEO ATLANTA, April 29, 2024 /PRNewswire/ -- KORE Group Holdings, Inc. (NYSE: KORE) ("KORE," the "Company," "we" or "our"), a global leader in Internet of Things ("IoT") Solutions and pioneering IoT hyperscaler, and provider of IoT Connectivity, Solutions and Analytics, announced today that Romil Bahl will be stepping down as President and Chief Executive Officer and that the Company's Board of Directors (the "Board") has named Ronald T ...

Revenue Performance - IoT Connectivity revenue increased by approximately $26.5 million, primarily driven by the acquisition of Twilio's IoT business, along with organic growth and increased connectivity consumption [307]. - IoT Solutions revenue declined by approximately $18.3 million due to reduced demand from major customers and the completion of a significant LTE transition project [308]. - Total revenue for the year ended December 31, 2023, was $276.61 million, an increase of 3% from $268.45 million in 2022 [417]. - Service revenue increased to $212.65 million, up 12.5% from $188.99 million in the previous year [417]. - Product revenue decreased to $63.97 million, down 19.5% from $79.46 million in 2022 [417]. - The estimated potential Total Contract Value (TCV) in the sales funnel increased to over $545 million as of December 31, 2023, compared to $434 million in 2022, reflecting a growth of approximately 25.6% [354]. Financial Metrics - Adjusted EBITDA for the year ended December 31, 2023, was $55.6 million, down from $62.8 million in 2022 [321]. - The net loss for the year was $167.04 million, compared to a net loss of $106.20 million in 2022, representing a 57% increase in losses [417]. - Basic and diluted loss per share for 2023 was $1.99, compared to $1.40 in 2022 [417]. - Total operating expenses for 2023 were $266.81 million, compared to $224.67 million in 2022, reflecting a 19% increase [417]. - The Company recorded a goodwill impairment loss of $78.3 million in Q3 2023, following a loss of $58.1 million in Q4 2022 [368]. Cost Management - Total cost of revenue for the year ended December 31, 2023, was $128.6 million, a slight decrease of $0.6 million compared to $129.2 million in 2022 [311]. - Selling, general, and administrative expenses decreased due to the termination of certain agreements, resulting in reduced costs for technical assistance and office lease [318]. - Selling, general, and administrative expenses incurred with affiliates decreased by 86% year-over-year, from $2.6 million in 2022 to $372,000 in 2023 [345]. - The cost of services as a percentage of revenue decreased from 64.4% in 2022 to 61.2% in 2023, attributed to the lower margin services from the Twilio acquisition [311]. Debt and Equity - The Company's total long-term debt and other borrowings, net, decreased to $296.1 million in 2023 from $413.9 million in 2022, a reduction of approximately 28.4% [357]. - The company entered into a stock purchase agreement to repurchase 5,000,000 shares of common stock for approximately $2.9 million, completed on December 13, 2023 [303]. - The maturity date of the Credit Facilities is November 15, 2028, with principal payments of approximately $0.5 million due quarterly [333]. - Cash provided by financing activities was $18.9 million in 2023, compared to cash used of $4.7 million in 2022 [364]. Asset and Liability Changes - Total assets decreased to $586.98 million in 2023 from $688.68 million in 2022, a decline of approximately 15% [415]. - Total liabilities increased to $550.01 million in 2023, up from $508.01 million in 2022, indicating a rise of about 8.3% [415]. - Stockholders' equity significantly decreased to $36.97 million in 2023 from $180.67 million in 2022, a drop of approximately 79.6% [415]. Cash Flow - For the year ended December 31, 2023, cash used in operating activities was $6.4 million, a decrease from $16.4 million in 2022 [342]. - Net cash used in operating activities was $(6,419,000) in 2023, a decrease from $16,356,000 provided in 2022 [420]. - Net cash used in investing activities decreased to $(20,230,000) in 2023 from $(62,547,000) in 2022 [420]. - The company reported a net decrease in cash and restricted cash of $(7,570,000) for the year, compared to $(51,336,000) in 2022 [420]. Goodwill and Impairment - The company reported a goodwill impairment of $78.26 million in 2023, compared to $58.07 million in 2022 [417]. - Goodwill is tested for impairment annually on October 1 or when circumstances indicate that the carrying amount may not be recoverable [465]. - Goodwill impairment was recorded at $78,257,000 in 2023, up from $58,074,000 in the previous year [420]. Operational Insights - The total number of connections increased by approximately 3.3 million as of December 31, 2023, largely due to the acquisition of Twilio's IoT business [326]. - The total number of connections at period end increased to 18.5 million in 2023 from 15.0 million in 2022, representing a growth of approximately 23.3% [352]. - The average connections count for the period rose to 17.3 million in 2023, up from 15.2 million in 2022, indicating a year-over-year increase of about 13.8% [352]. - The Company has determined it operates in one operating segment, with financial information reviewed on a consolidated basis [467]. Revenue Recognition - Revenue from IoT Connectivity consists of monthly recurring charges (MRCs) and overage/usage charges, with contracts generally being short-term in nature [469]. - The Company recognizes revenue for MRCs and overage/usage charges over time as performance obligations are satisfied, typically starting when an enrolled device is activated [469]. - Contract liabilities, or deferred revenue, are recorded when the Company receives consideration in advance of performing a service, primarily related to connectivity monthly recurring charges [499]. - The Company estimates the transaction price based on expected amounts to be received, which may include fixed or variable consideration [497]. - Product sales to IoT Connectivity customers are recognized when control is transferred, typically upon shipment of the product [495]. Accounting Policies - The Company applies ASC 606, which includes costs of connectivity, hardware products, materials, and direct labor in the cost of revenue [523]. - The Company capitalizes certain costs of platform and software applications developed for internal use as intangible assets, amortized over their useful lives [485]. - The Company does not accrue for contingent losses that are considered reasonably possible but not probable, disclosing the range of such losses if estimable [491]. - The Company plans to change its method of depreciation for long-lived assets to the straight-line method effective January 1, 2024 [426].

ATLANTA, April 12, 2024 /PRNewswire/ -- KORE Group Holdings, Inc. (NYSE: KORE) ("KORE" or the "Company") is providing this press release to correct clerical errors in tables contained in the press release filed on April 11, 2024 regarding (i) previously reported Average Total Connections for fiscal year 2022, (ii) previously reported revenue for fiscal year 2022, (iii) reported change in fair value of warrant liability, loss on debt extinguishment and integration-related restructuring costs for the quarter ...

ATLANTA, April 11, 2024 /PRNewswire/ -- KORE Group Holdings, Inc. (NYSE: 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, 2023. Company Highlights The Company is providing 2024 revenue guidance in the range of $300 to $305 million and Adjusted EBITDA, a non-GAAP metric1, guidance in a range of $64 to $66 mil ...

Financial Data and Key Metrics Changes - Third quarter revenue increased by 4% year-over-year to $68.6 million compared to $66.1 million in Q3 2022 [12] - Adjusted EBITDA for Q3 2023 was $14.2 million, a decline of approximately 6% year-over-year [30] - Adjusted EBITDA margin decreased by 220 basis points to 20.6% from 22.8% in the prior year [10][30] - The company revised its 2023 revenue guidance down to a range of $280 million to $290 million from the previous range of $300 million to $310 million [24][59] Business Line Data and Key Metrics Changes - IoT Connectivity revenue increased by 27% year-over-year to $55.2 million, including the first full quarter of revenue from the Twilio IoT acquisition [12][22] - IoT Solutions revenue declined by 41% year-over-year to $13.4 million due to customer order deferrals [26] - Gross margin for IoT Solutions decreased by 174 basis points year-over-year to 26.9% [27] Market Data and Key Metrics Changes - Total connections at the end of Q3 2023 reached 18.9 million, an increase of over 300,000 from Q2 2023 [54] - The dollar-based net expansion rate (DBNER) for the 12 months ended September 30, 2023, was 96%, down from 100% in the prior year [14] Company Strategy and Development Direction - The company announced a refinancing of approximately $300 million term loan, reducing the first lien leverage ratio from roughly 5x to 3x estimated adjusted EBITDA [6][31] - KORE is focusing on driving organic top-line and adjusted EBITDA growth while removing debt overhang concerns [7] - The company is reallocating costs based on current priorities, expecting approximately $10 million in operating expense savings in 2024 [34][67] Management's Comments on Operating Environment and Future Outlook - Management noted that the macroeconomic environment is impacting deployments, particularly among larger Connected Health customers [44][97] - Despite order deferrals, the company expects year-over-year revenue growth in Q4 2023 [50] - Management expressed confidence in achieving double-digit revenue growth in 2024, supported by an increasing global sales pipeline [61] Other Important Information - KORE received a 2023 IoT Evolution LPWAN Excellence Award for its innovative LoRaWAN solution, KORE LPHub [21] - The company is collaborating with GrandPad to support seniors with IoT connectivity solutions [8] Q&A Session Summary Question: How is the macro environment affecting business deployments? - Management acknowledged that while the macro environment is slowing some deployments, new business bookings remain strong, particularly among larger Connected Health customers [44] Question: Can you elaborate on the order deferrals? - Management indicated that the order deferrals primarily involve the same larger Connected Health customers, with some pushing deployments into 2024 due to various operational challenges [74] Question: What is the status of the refinancing? - Management confirmed that the refinancing is fully committed and expected to close shortly, with no anticipated conditions remaining [101] Question: How is the Twilio IoT business performing? - Management reported that the Twilio IoT business is performing below initial expectations but is expected to regain momentum as the integration progresses [112]