Earnings call transcript Q1 2023

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Operator

Greetings, and welcome to the KORE Group Holdings First Quarter 2023 Earnings Call. [Operator Instructions]. Please note that this conference is being recorded.

I will now turn the conference over to our host, Charley Brady, Vice President, Investor Relations. Thank you.

begin. may You

Charley Brady

release On which first operator. helpful we'll referring Investor XXXX at the be follow the page that Thank first Relations be company's XXXX today's found earnings the quarter press as well quarter with both be this presentation to afternoon along details of you, results, as call, filed can that ir.korewireless.com. to the will on

website beliefs section later the of will available assumptions of call expect, this the are similar beliefs Investors includes as about company's containing of anticipate Please Finally, statements, a recording on expressions believe, and as such forward-looking webcast today. on be will, that and note statements the and could, statements words today. based and may, forward-looking the expectations company's are

you and Commission, encourages materially and this on risk actual in the from with the disclaimers may to that safe in forward-looking company's as as those results review statements. specific slide other and cause or to our differ well Exchange harbor events filings factors, which Securities company identifies statements, risk contained factors today's described release press The the

does not forward-looking after notes publicly information in in is company accepted the webcast. as supplement update undertake or information a statements financial also be accordance revise GAAP. to generally that prepared this The any company discussing United will principles The call. to this I with non-GAAP company on The States information or providing accounting that

and of tables in reported results reconciliation GAAP find provided a company's reconciliation release earnings in You metrics these the to can today's the presentation.

and to Romil Chief the call Executive the Bahl, now over company's turn President Officer. I'll

Romil Bahl

quarter is thank everyone, afternoon, you Financial our today joining Officer. KORE's Chief With Paul me Good call. for earnings for Charlie. you, XXXX us Holtz, and Thank first

followed a session. we with financial a finish the with will Paul, the announcements and from start key Q&A first will As our results, of overview and events by brief quarter, who I'll always, discuss

presents will X quarter, some which I Slide the from first highlight. briefly key announcements

zero-touch been secured OmniSIM pleased First, the global the a by GSMA with to recognition we winner of unique for are our KORE effectively industry-leading announce challenges customers. connectivity faced allows our provisioning in to manner Year has products standards. a This MXM underscores device-agnostic, Breakthrough. KORE and our of developing KORE capabilities meet the pairs by by the IoT challenges carrier of address This OmniSIM eSIM massive selected Safe as customers global secure use IoT Safe cases. to commitment that that Product the

understanding a testament named been row year and in as cutting-edge by and being fourth to This is unwavering to a empower year expectations. highlights to the in creating Quadrant connectivity. satisfaction recognized that goals. customer leader innovation for recognition dedication commitment This marks a that KORE customers' meet its a simplify leader and customers exceed our achieve Consistently complexities the to solutions and needs Gartner our customer IoT in Magic has our of IoT their

IoT care can managing with behind objectives providing focus IoT for With and organizations go, solution our support it support MODGo the MODGo, to are deployment their of manage, IoT provides their complexities take we entire SaaS single management. visibility order IoT while for deploy a that scenes. ecosystem. excited the further MODGo, To a the makes business solution we customers comprehensive device to customers, and logistics core and on on launch of our easy

of quarter as from X. a expected, XXXX above X%. Slide of fourth largest to increasing X%, first the the declined We financial XXXX revenue our Now by quarter quarter XXXX, at to on start forecast, revenue customers non-KORE On the our XG, and let's sequentially quarter transition with first comparison and significant difficult guidance LTE and in in solid had highest first from to quarter XXXX a approximately had revenue to customer. revenue project turn XG the approximately our a due results coming primarily basis, and which year-over-year was

revenue is LTE quarter XXXX, growth approximately increased project guidance XXXX just upper Absent first single revenue X% of the digits. year-over-year, at in of pre-Twilio mid-to-high revenue the transition our end which

XXXX Our project the by comparison the be quarter LTE second smaller. year-over-year will will last transition substantially the impact and impacted be quarterly revenue

the for LTE our third volumes XX% as XXX carrier quarterly project points the largest and margin to from lower-margin sequential increased optimization absence beginning growth and the continue expect remainder of costs our revenue customer. of we transition of basis growth year-over-year quarter. We XXXX to year-over-year Gross in benefit with

XXXX, quarter compared of the XX.X% from and year-ago adjusted adjusted XX.X% was quarter. first million EBITDA XXXX of quarter margin EBITDA to XX% in $XX.X First the declined

to First by XXXX and do XXXX higher-than-normal increased adjusted impacted by quarter the was first temporarily costs compared repeat. and of expect to EBITDA quarter of accounting costs we headcount that not audit

we the adjusted on our earnings guidance call weeks We a and quarter provided revenue fourth are XXXX EBITDA just ago. reiterating few XXXX

of guidance revenue $XXX to expect $XXX our resulting mid-teens, the We million. grow to range million in in revenue

of This the growth and remains U.S. customer, we the business track which million in the in from also partial project a largest on IoT can from contribution we includes sunsets of base customers. more impact year at the confident for the than June replace which XG our $XX transition and X It XG addition our new LTE are includes and from the Twilio's the acquisition closing. business,

$XX EBITDA margin to adjusted million of are EBITDA million approximately Our and adjusted of XX% $XX unchanged. also guidance

more the to Paul I call cover financials that, With will now the hand in detail. Paul? over to

Paul Holtz

afternoon, and Thank you, everyone. Romil, good

important think that into QX worth milestones reached I in XXXX. two our results, mentioning it's were getting Before

successful of included going calculation. acquisition. February, the anniversary our in customers now BNP-Simon are one-year DBNER growth we celebrated in of very our First, organic part forward and These are our

are associated the us, with and which network migrations of growth to sunset finally organic of customers the these happy we the side officially going show the in of other behind headwinds States. the the us I'm XG allows true sunsets impact Secondly, business from reached the XG, our non-KORE our say to United forward.

to first $XX quarter X, million quarter-over-quarter. XXXX, results. revenue sequentially $XX our to of first year-over-year to X.X% X% quarter declined Slide but the in up compared turning On million Now

previously the communicated, to quarter expected of QX revenue represented fourth we trough XXXX the sequentially, a XXXX near-term and which increase As delivered.

By connectivity flat X% segment, IoT revenue million $XX.X year-over-year was and decreased of quarter-over-quarter.

Removing grew the and of X% As the they connectivity mentioned masked customer of as existing who XG to quarter-over-quarter. growth XG effects X% connectivity longer of organic beginning non-KORE customers the of the non-KORE sunsets no existed lower of migrated was above, and approximately XXXX our IoT as year-over-year churning revenue pricing cohort. the LTE, customers throughout the by IoT impact revenue estimated negative XXXX and to

by was put our decline first IoT Solutions’ transition perspective, the largest accounted XX% year-over-year revenue as the IoT over To $XX.X in the LTE million the revenue in million. revenue transition comparison for year-over-year of quarter customer. difficult project the to $X declined project to XXXX included this Solutions quarter at LTE The driven related first XXXX, significant in of revenue.

transition would Excluding project IoT increased XX% approximately year-over-year. have LTE the Solutions revenue revenue,

the year-over-year, of was XX%, in and gross quarter. flat XXX points basis increase prior XXXX QX margin remained with an Total

the connectivity fourth and quarter XX also to from back of last margins basis in the margins XXXX. the points were IoT we points increased For basis sequentially QX gross quarters, XX.X% experience of XXX went highest XXXX. gross two since approximately public year-over-year

of XX.X% and have lower-margin IoT the prior over $X four the any to from was was year-over-year at highest for the our the LTE increase basis by in since IoT sequentially of by costs. revenues of XXX transition year. went points we million XXX our the QX in connectivity largest range, last quarter continued points gross customer stable absence public. gross margin level driven margins quarters and The in the increased remained optimization mainly XX% driven the carrier versus Solutions basis

an Total were the connections the of $XXX,XXX of end quarter XXXX. to of compared million, quarter of end first fourth approximately increase at the $XX.X

Some higher see focus bandwidth the also to due in on continues bring customers company cases, deployments continue more chain which existing revenue to and but to use delays higher lower connections. issues supply hardware

months March the DBNER for to XX, or was rate, year. prior the XXXX, expansion net in compared XXX% XX Dollar-based XXX% ended

XX the customer existing same-store same the a is growth year-ago a which period, growth reminder, like the trailing sales to compared rep. the DBNER measures in As from months cohort in customers

anniversary the calculation. BNP in mentioned now and with acquisition the Simon the As happening customers included are earlier, this these quarter,

to year-over-year the DBNER be continues LTE revenue from impacted transition customer. project by our largest

end largest of of of the same DBNER Excluding the depreciation from XXX% the last X% an quarter at total to and customer, $XX.X million, would been period have the the in compared quarter first expenses, revenue $X.X year. compared quarter at amortization or XXX% first were increase including million the Operating XXXX. to our of end

costs. $X.X expenses in operating to compensation, increases amortization, headcount was Excluding headcount These higher noncash million. its and stock-based million D&O like items The depreciation, $X.X partially were associated increase offset costs. by attributed insurance and cost lower increased

First the increased interest amortization to expense, our due fees costs quarter increased including to year-over-year loan. borrowing financing million secured deferred senior $XX.X term of on

be expense $XX.X approximately quarter to million $XX will We per expect XXXX. interest million in

year. mainly the $XX.X lower to in of million EBITDA The loss was $XX.X income $XX.X approximately compared $X expense in a year-over-year tax the last quarter higher due period the year. XX% to was quarter in increase prior Adjusted same million, in was million loss first Net compared net the in and period first million the same to benefits. interest decline or

margin year. in Our quarter prior adjusted XXX the the points the basis period in current approximately EBITDA to down XX.X%, was same compared

throughout to year-end nonrecurring, million for the professional headcount future. we XXXX This We expect service to view additional fees was costs the higher XX-K. due service professional not due most and to related in but as do them higher the approximately part, the to also from reporting $X in fees repeat the and related Form audit XXXX, hiring

cash quarter At compared December in million the backstop related as million. the to Moving million made payments first in months used to Cash to the bonus in provided in to the to in of the of period the mill. end compared change prior flow. due $XX.X QX operations $XX.X mainly prior year. was The XXXX. to million cash the compared XX, primarily to three approximately the the This XX, same less of being payments $X XXXX same change operations for ended related This XXXX, year. quarter, is annual interest by cash was was timing March $X

passing of to IoT discuss it quickly years. wanted solutions over both growth the to past back connectivity and Romil, our IoT organic I to Prior in couple

XG/XG Going much us. and transition finally will the U.S. customers all like largest our picture be behind as churning non-KORE headwinds from LTE be clearer customers project this forward, the should sunsets, adjustments

the have IoT Slide solutions. IoT We growth connectivity to and for X separately added organic show

on detailed annual has are the compound items last after IoT rate the this Slide of X.X%. for appendix in was had Over XX.X%, XX Both growth three presentation. of IoT while a the adjusting years, connectivity Solutions various

we estimated to revenue it have While million high grow fill of an single organically over mid- the we unadjusted expect both on And to continue that, basis Romil. $XX I'll with digits. to still in XXXX, to to pass in back an segments

Romil Bahl

Thanks, Paul.

discussing our generate pipeline sharing March we and XXXX. of our been this going on began double-digit to sales remain As track of story. Slide as call level global X, On we have transitory you that pipeline growth a on highlight we recently can net sales our present organic statistics. earnings we of we snapshot growth, the of a see, XX, effects are since To public, bookings

quarter, toward will and we exceeds $XXX year, opportunities closed we million. accomplish pipeline that sales If the TCV to solid year level value, X potential driving TCV, focused estimated it off we generated exceeds In of contract $XX we XXXX be year-end in metric TCV. total TCV, million over with of a so XXXX X are our of a are the sales a key or on of to start consecutive Our fifth now first of $XXX this, million. closed the X,XXX growth

for our Slide at XX wins closed KORE, our was to success to of customer. the the company for over few a traction which there TCV, the These OmniSIM key and contributed products. in contract driver potential showcases growth added our transfer quarter is to highlight wins market first of to expansion strategy of growth gain of of one cases and million. leading and future a the continues use KORE to the advertising recent examples their million all decision a business $XX North in new demonstrate TCV that in $XX technology this the American of

$X KORE unique APIs. MNO this Furthermore, the eSIM as customer on enables winning customer approximately XXXX. monitoring of TCV second the to profiles from a an Our million remote online use logistics manage in a a and single in solution to utilize for RPM ability or quarter with provide to new a launching forward health was successful edge contract them well and reverse multiple service patient device hardware, a and as connected connectivity, of

potential a provide has complete XXXX in size contract. are that a multiple and key to of to projects ability winning additional also was driver expected the is This KORE's evaluating similar the use or in KORE connected solution demonstrate begin deployment. of with the solution a win customer that competition CHTS and adoption itself differentiating our how health is CHTS. telemetry from of This the complexities reduce IoT of preconfigured solutions the

products these announce chain KORE access provide with potential our XG XXX our over to and penetrate markets selected to unique that diverse services demands This has involves to highlights the with and This been excited to adapt of major to also locations scalability ability restaurant fixed has of industries. as the TCV and double. are a wireless over technology to contract as the locations. various upgrading services $X well We a opportunity to million

of customer Lastly, Their expanding in with Department KORE personal Affairs. be the Veterans KORE support connectivity. response will emergency U.S. multiyear to to support U.S. device member be a mPERS will any available customers in veterans. headquartered business the the a system, helping U.S. and managed our to the Australia signing charge contract of their KORE providing after To or mobile of role proud a VA is play to free solution, the mPERS in is

our for building ongoing create new ability of our continue to robust contract as recent customers for In footprint strategy to and use our shareholders. underscores into wins on example grow KORE's enter achievements as they KORE's these growth success and innovate, support expanding global forward in grow cases new This and markets. to is we our our We expanding products. an conclusion, illustrate these value to look commitment and

from customers. familiar. is connectivity road outlines a IoT solutions which holistic our our IoT am embracing to delivering our evolution of solely are XX It sure comprehensive many transformation Slide map, I of you for providing approach,

witnessing product diverse computing, and are IoT. growth expanded the offerings customers driven capabilities IoT, of we are by IoT and seeking to as power our and such adoption, we As harness massive the to advancements who accelerating have landscape, evolution our XG needs of the the edge of meet

they opportunity helping Data The from of volume complexities represents the sense our deployment, amount significant of make IoT analytics flowing the are are network, is broader of of global generating the main As solutions. capabilities. through building out their information Cloud we we reason customers increasingly tremendous we monetization reduce new IoT and IoT data our KORE the a are

our offerings. a Although it component a becoming growing small analytics is of product key business and today, is of our part

and of empowers devices, to platform data customers connected valuable Our informed vast from by derive amounts generated insights enabling to the them decisions operations. make optimize

a surge solutions. efficiency we and With our the the massive acceleration XG deployments, anticipate adoption, in capability IoT enhancing of further of

have analytics improving latency leading ultimately and to experiences. processing capabilities, integral improved edge components and computing edge user become reducing Additionally, for

years, with a tool. IoT become paired powerful several AI next the will Over

over this the tap synergy We Slide begun XX, will into to good year-over-year believe allow segments. expansion on we gross XXX new into revenue our leaning reach which quarterly and the margin included growth by are as and us points. of solid expand have IoT AI or already to first of off new quarter markets with we year sequential and Finishing results, start to AIoT, a basis

opportunities of work TCV Our over with pipeline $X.X dedication over a increased global and team's to $XX million hard and generated TCV our sales in X,XXX billion.

well end with such economic markets prepared focus cases, which use markets we company and than as some and health uncertainties. new navigate to to expansion revenue, earlier. high-growth maintain are recession-resistant XX% on connected a We of I As more recurring mentioned

and current pipeline, we remainder our revenue optimistic performance of on and guidance the the remain Based our about year. for EBITDA

to to and In IoTs to commitment around the delivering coming our customers. KORE a appreciation work, our world, all look ahead employees hard to for our the quarters. dedication want KORE their as continues to value the loyalty, shareholders top Our to continued convey be I and we to closing, my priority

With start Q&A. that, let's the

Operator

comes Instructions] Our first TD Lance with Cowen. [Operator Vitanza question from

Lance Vitanza

that question. quarter. Romil, And And good. underlying Thanks with if perhaps I Hi, causing my quite to IoT quite corporate users that expectations? to thanks. bit start Nice been or And like you defer growth meeting macro But your overall Is sluggish? visible. that is and Or environment you describe growth environment. sort perhaps deployments? taking said, a some potential for the pace deployments? on has would I'd the of the cancel are corporate perhaps the corporate delay KORE's sensing job is you the adjust hear really or you is of performance how that customers, still being even murky that

Romil Bahl

end for Look, great we've of deploy Lance. the et supply in, that their of some and a is hard light certain constraints where that's although, and where customers may the grow still sort devices where segments, to and -- supply issues Thank Yes, caution again, tunnel. ending from they're the of kicking it's question. macro get you. we been But chain at cetera. in or the tell be customers, hear conservatism to our sort chain seeing, and

anecdotal I'm of conversation That seen guidance we our right? in doing say we're real proof that is haven't enough what there reiterating, which into of delighted today, worry on out at $XX will line to get came see million mid- single hole, sort we that top said put the and to and high. the right? and sort all year the to overcome or said, sort So, to We even about will of we twice

better quarter that. actually than first did The

stuff X%. you're take you out our at already saw, the largest As you customer, one-time LTE just if at

the double, stuff, add digits. to in organically, solid I'm double other grow then in low low it's you're go either start yet of but If a funnel, wins. the and say good kind not there of the ready year, the out we'll slowing -- use aggressive there, good but in about automation-oriented certainly, efficiency-oriented to good those activity replaced cases. the kinds down being by are top-line growth-oriented you some conversations solutions

like to really year potential that we we're this be more So, knew cautious was already coming need there not we into macro effects going feeling year. were some the to we be than that given

Lance Vitanza

Page terms of of what growth rates sort on release, and quantifying which the a could confirm you nice my wondering would press of them in started if of you -- kind out laying to thought just did job next the three of dollar actually And factors really go he for to like LTE. the is the been. the question, did have X amounts actually you I'm the I

not You the but it increased only have X%, LTE called $X.X you that was would normalized an impact. said revenue would million out have

and And low do revenue the for IoT could to for I'm then I mid-single to wondering much numbers even just rate. larger that myself, in growth do customers digits the the terms you attempted if I getting but non-KORE Solutions that of than because was

to So, low excuse I larger much number. I'm getting a mid-teens, -- me, be must

So, could you step me through those numbers?

Romil Bahl

Yes.

and this. -- So on will keep me Paul

Just trail, Is Paul? right about that $X.X million.

Paul Holtz

the was we've But the in X.X% the then it Page XX. about deck, pricing $XXX,XXX. can LTE customers the numbers on you And actually in appendix got Yes. see non-KORE was year-over-year the yes, and slide on the

non-KORE IoT project, than the nothing transition -- the the IoT There's there. You other There's customers side on adjust LTE of there's in no solutions. solutions things. mentioned something to

is sort range of doing. -- math if of kind but think was the go to from the XX% I X% I X.XX-ish the X.X%, you So less you right, X.X-ish add of the

Lance Vitanza

Great.

Any the apologize, timing look And missed on however, I update I acquisition or super just that. on could think is helpful. that status? favorable you. And want the have the this, Twilio on to increase there anticipation -- of come? there? Now, the no, perhaps KORE, in net that's TCV, update respect maybe investment and you sort impact at been but might just Thank to you to me the with is transaction? do you of just then that in the still any of Or that has sort the that,

Romil Bahl

the We I Look, signals two and the are thing synergies right team -- all to to that as the direction think in think, team, as to and and X it's conviction for agreed the that on a month. of I three on this combination welcoming before and their as the any close targeted forward this week, X customers. had We're Yes. the calls talked about place. getting close looking benefits And come, I the company but to certainly remain done cadence leadership and was June I'll us we've close thing say, the morning. seems it running, we're a a all one June that to or date like

Operator

comes question Capital. next Northland from Mike Our with Latimore

Aditya Dagaonkar

Could This trending, the is you of been me the ARPU? color Aditya for give some on ARPU been Has year? organic on behalf Latimore. how especially stable has Mike it this

Romil Bahl

Yes.

speaking, largely stability million impact. see we this were anything, But with did on year. we strongly much creep bandwidth we if starting XG, be year continue say had ARPU, And in our the XG expect think we're to XX cases I more seen to higher expected we fact, to earnings actually, that the momentum because in. necessarily wouldn't ago, right? going for I feel ago, to X.X use months XXXX over didn't XX in were away that it that that higher us And said that personally or made typically have that months we that bet I at ago, pressures flat SIMs have with still I call would ARPU. up a of

in that to mid our bandwidth high off. any I'll focus be But you there commentary let could connectivity speaking, focus our long on make the the want. stability you upside if encouraged term, generally continue to pay very color ARPU Paul, by continues in and on and And believe and

Paul Holtz

existing increases it's a I ARPU. were ARPU on the XG we've cases. seen. year, are of at bandwidth even are Nothing than, here yes, that a newer potential higher seeing sunsets Obviously, with the agree organic add leading during the using data Yes. again, some to But use the use connections -- typically basis, are this because a lot of an more customers for really we XG, other that we're cases and different bandwidth than higher to customer-by-customer ARPU perspective that's seeing higher that from the on higher

very encouraging seeing it's that So, we're forward. going

Aditya Dagaonkar

All also some for right. the And could you give how been Eastern? the has pipeline color on

Romil Bahl

The there of pipeline on tremendous and are us. I understand flexibility a right, KORE a can that Look customer-facing begin reaction, leading you, it OmniSIM Eastern. are the proposition tell Aditya I'll isn't sort seeing when of of that doesn't think We with presenting, conversation, customer really kind we with provides campaigning eSIM, they the market reaction right?

we been we aren't we fact, include do obviously, lot and IoT to close, cetera. et In closed haven't customers remain the yet yet with Twilio's a until obviously competitors able because

they've But of are some heard opportunity very customers that have sort by and in of calls to cross-sell them. their forward even of on early what have into encouraged KORE looking been with been introduction OmniSIM the us, several

marketplace, out Now that But XX% all the will the about that are total whatever more only are will said, connections to be in mean, very are still will eSIM XX-odd three encouraging. expect of our obviously the out five be small, conversations million be. today. XX% I there years, I it right? than of connections there, our volumes

Operator

comes next Meta question from Morgan Marshall Our with Stanley.

Meta Marshall

the question expectations? on compared a to IoT performing and Mary these Simon I acquisitions. is have This are How acquisitions BNP forMeta Marshall. on

Paul Holtz

talked very those the one-year the not quarter. be to they've know numbers continue going and anniversary, in that we year, we for perform been we're above typically our well expectations, breaking in separately. about -- as So, throughout our expectations, But last current to they here they were out

Operator

comes next [Operator with question from Walter Piecyk Instructions] Our LightShed.

Walter Piecyk

Thanks.

I EBITDA I assuming elevation be think take would guidance SG&A being and is you're in think the if I'm I doing the that look -- your that, hiring down, the revenue I down. comments EBITDA the get guess, But at might but margin doing gross clean order up some and stuff this implies you your if come about accountants like, some to I think your to math in and coming had you expecting contraction. right, of mentioned then the guidance, that of to wrong, SG&A

So, is SG&A what EBITDA? wrong? just are I doing answer that I should think -- other numbers as the be gross moving and I margin like your is there just we be the guidance within might EBITDA -- Or the am math sandbagging there suspect higher? to would not parts the Or about on -- am why

Romil Bahl

Yes. Walter. Thanks,

So, a trying let me -- I to guess of color. add bit I'm

compliant steady-state finance First, anticipated and the been have headcount, been EBITDA right, gross we investing side things. the right? on and so deference, margin, So, organic margin a KORE bit and those towards just revenue, on on fully building and of and And all get gross accounting in improvements. sales we have side, both to public ready

services that QX largely happened was extra delayed, we a process fees were cost saw, in we or you here the on million all from with the and where largely, of improvement the sort just last year. QX The So kept surprise or have headcount us flat the would gross in largely, and table professional margin slightly put that same cetera. place that as that accounting filing we dollar-odd that, think, our onetime anyway, difference et was relatively

We don't will repeat. think that

comes we dilutive we Twilio took QX guidance. that's by don't about an actually improve right? EBITDA get there, the isn't To point in, will get this think it year. multiple don't because higher? if So, Remember, why unit you your do once four, EBITDA and EBITDA just We

and in this forth, and the part But year. why other be it they margins on improving that here taking obviously less missing it was work year because gross next last EBITDA of of In where terms so what you're sort fact, might on losses, we're was, of be will immediately double-digit it than their going that negative be better much will to accretive better. isn't

Walter Piecyk

think precisely missed. what I that's I probably

That gross So you so opportunities was can what Twilio, just -- is improving be just the forward. bringing their that refresh well you're for the as a gross the my on? their refresh Or you to that as thing think might components terms I you going the that improvements was combination have just kind of margin improve margin of memory it said in that of the missed? in entity OpEx of

Romil Bahl

on taking Certainly, of as support of a improve a kind last have of that team year wasn't we XXXX, over full finance years, for company, everybody because when Yes. not et the We're global of as the they the few performance business of right? their have OpEx least, that cetera. all in we a Twilio really Also, investing right, a on to part smaller their on. their from team, the their will or on heavily as -- and ready had taking well, last Twilio we we're staff, not portion full-flight function not take year, any that that

MNO I we're not line. So, off we're would like looking prudent profit yet been, not say, we're better be power reach, taking negotiating that getting, with more improvement and any will going -- improvements cost forward that But this far massive people. do and margin relationships, on tremendous we've synergy largely so our opportunities obviously number are on. we of have side the leverage fact our sure losses everybody the year. and We in gross The on making gross driven those to we're the greater of the given

we can way. our we closer it think would a process be the than will while to margins to we go them get multiyear get So, to there, other

Walter Piecyk

kind driving seems separately, slow and to And the market phones terrestrial obviously in dialogue then game things this moving which a cost this be you're and what relative very because fast fast to of just space of to space seem terms, be the in I things. in iPhones, be directed of embedded the you're might for into terms lot device. But Qualcomm's embracing on guess down of getting end componentry it. to the of used side and Android there's

satellite to this You I have constellations, other on. looking take think,

to is it scale of just but there's kind not when market customers a the and -- terms phones, for hitting really that you have incremental component I'm -- Or guys. like those nice start space, pour conversations just -- I of with if to integrating seems IoT you're has curious be in your mean into over to if this going it in?

had you market evolving? you've how on if or discussions preliminary that curious that Just any see

Romil Bahl

migrate that has it's when admittedly we leadership good position sort a ourselves which last cellular begin lot, to -- of And e-SIM, stuff. question, right, and cellular we the really of focus, Yes, sort that our the ask getting one do unlicensed over few a terrestrial years, which is and actually. right, been

right. it's way, the don't not by anything with do we Now satellite, like

with likes have We of satellite Intelsat partners and several and relationships the others.

a it's were so, And been required.

bear. We those bring in will to

from chain for while, going supply some and ocean to to tracking I'm containers going COVID enabling a be on deliver you're need tracking if or vaccinations the remote to I'm drones So, can satellite from delivering we those but it's have so -- and a and we of and parts solutions, those and world the not of certainly new -- portion revenue solutioning been we connection. significant satellite

private space come and XG-type can some and had several Board we're these dialogues the from players. We our relationships provide into unique some enabled closely. networks of relationships think these players things satellites encouraging this really watching interesting some with other us of So, We've by in space.

business to there. say, it's a strategy market, on the during like at would our we every it's there. like put you a every And opportunities. ROI, months, years. We phone few and market, other Walt, in like try resources IoT, right, the consumer there's based matter of where fail And we market prioritize by cycle right, we we planning So, look year, sit each six time certainly, exactly the back, go before always,

So, my XXXX. resources not that, is we guess XXXX. moving year, will hopefully -- if towards more be sorry, next

Operator

questions no are at this management closing hand remarks. to I'll for it back time. There further

Romil Bahl

second our forward everyone, to with taking August you updating and call. We to results August. sorry, the for you, time May, you, earnings listen look Diego, our to thank quarter -- Thank in

Operator

Thank a you. evening. Have disconnect. We conclude conference. All parties may today's great

KORE (KORE) 9 May 232023 Q1 Earnings call transcript