KORE Group (KORE) Q1 2025 Earnings Call May 15, 2025 05:00 PM ET Speaker0 Greetings, and welcome to Core Group Holdings Incorporated First Quarter twenty twenty five Earnings Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. Please note that this conference is being recorded. I will now turn the conference over to your host, Vic Vigeberghia, Vice President of Investor Relations and Corporate Development. Thank you. You may begi ...

F i r s t Q u a r t e r 2 0 2 5 E a r n i n g s P r e s e n t a t i o n May 15, 2025 Di scl aime rs Use of Projections This presentation also contains certain financial forecasts of KORE. KORE's independent auditors have not studied, reviewed, compiled or performed any procedures with respect to the projections for the purpose of their inclusion in this presentation, and accordingly, neither of them has expressed an opinion or provided any other form of assurance with respect thereto for the purpose of this ...

KORE Group (KORE) Q4 2024 Earnings Call April 30, 2025 05:00 PM ET Company Participants Vik Vijayvergiya - Vice President, Investor RelationsRonald Totton - President & CEOPaul Holtz - Executive VP, CFO & Treasurer Conference Call Participants Lance Vitanza - MD & Senior AnalystScott Searle - Managing Director, Senior Research Analyst Operator Greetings, and welcome to the Core Group Holdings Fourth Quarter twenty twenty four Earnings Call. As a reminder, this conference is being recorded. It is now my plea ...

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]