KORE Reports Second Quarter 2024 Results; Announces Restructuring Plan Focused on Driving Profitable Growth

Core Insights - KORE Group Holdings has appointed Ron Totton as President and CEO, aiming to enhance leadership and operational efficiency during a restructuring phase [3][4][5]. Financial Performance - Q2 2024 revenue was $67.9 million, a 2% decrease from $69.5 million in Q2 2023 [2]. - IoT Connectivity revenue increased by 16% to $55.8 million, while IoT Solutions revenue decreased by 43% to $12.1 million [2]. - The net loss for Q2 2024 was $64.3 million, a 230% increase from a net loss of $19.5 million in Q2 2023, including a non-cash goodwill impairment charge of $45.4 million [2]. - Adjusted EBITDA for Q2 2024 was $11.4 million, down 20% from $14.2 million in Q2 2023 [2]. Restructuring Plan - The restructuring plan is expected to generate gross cash savings of $5 million to $6 million in 2024, with annual savings of $20 million to $22 million thereafter, funded by a one-time severance charge of $4 million to $5 million [9]. - Key components of the restructuring include cost reduction initiatives, workforce realignment with a 25% headcount reduction, and increased investment in high-growth areas [9][10]. Executive Appointments - Bruce Gordon has been appointed as Executive Vice President and COO, focusing on operational efficiencies and innovation [5]. - Jared Deith has been appointed as Executive Vice President, Connected Health, bringing expertise in IoT and a strong track record in the sector [5]. Market Outlook - The company has updated its 2024 financial guidance, expecting revenue between $275 million and $285 million, down from a previous estimate of $300 million to $305 million [12]. - Adjusted EBITDA is now expected to be in the range of $54 million to $56 million, compared to the prior estimate of $64 million to $66 million [12]. Customer Metrics - The average total connections for the period ended June 30, 2024, was 18.5 million, up from 16.5 million in the same period last year [8]. - The company reported a Total Contract Value (TCV) of $44 million for Q2 2024, a 38% increase from $32 million in Q2 2023 [2].