KORE - Earnings call 3 2023 | KORE Group Holdings, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Hello, and welcome to the KORE Group Holdings Third Quarter 2023 Earnings Call and Webcast. [Operator Instructions] As a reminder, this conference is being recorded.It's now my pleasure to turn the call over to Charley Brady, Vice President, Investor Relations. Please go ahead, Charley.

Charley Brady

Thank you, operator. On today's call, we'll be referring to the third quarter 2023 earnings presentation that will be helpful to follow along with, as well as the press release filed this afternoon that details the company's third quarter 2023 results, both of which can be found on our Investor Relations page at ir.korewireless.com.

statements the the be note beliefs such company's webcast and forward-looking on of Investors on that based as recording beliefs are expressions includes of company's of are believe, as section website statements, and may, a will, call containing and expect, available will today. the this and could, Finally, expectations the anticipate, words similar about assumptions later statements today.Please forward-looking statements, as in you risk on the encourages review to company's which to risk that materially Commission, disclaimers today's safe harbor identifies those filings Exchange and company forward-looking contained events factors factors, differ from The may this press our the other release, in with and statements. actual slide cause and or described specific as Securities well the results The any not notes non-GAAP revise this publicly forward-looking company update it call. statements financial will company or also undertake webcast.The discussing be on that this does to information after is company GAAP. accordance in or a States, providing information generally United the to The accounting as principles with prepared accepted in that information supplement

a call find Bahl, company's reported earnings reconciliation President and to Chief today's the turn provided of results Romil in can You the these GAAP tables now presentation.I'll Officer. Executive release over in reconciliation to the metrics company's and the

Romil Bahl

Paul, Chief third our quarter by be Charley. of announcements for always, afternoon, Officer.As overview third With I events us quarter, who earnings and XXXX financial everyone, a will Holtz, results. Financial and will our Good with you, for call. KORE's Thank is and key joining thank for the discuss I'll followed today you the brief me start Paul

million of expected session.First, with far issuance pleased to to loan results at approximately always, as refinance agreements and of the in XX% closing announcements of million $XXX next the refinancing a most our occur in an for announce KORE. today, loan it, will sales or important no to very our Paul later about very and a week look term and we stock. a with a strategic that will signed detail of transactions am The new of provides $XXX this key final our call. million make the We have $XXX mistake is But by I overview investment which transactions, X preferred finish, important the is of milestone then term Q&A these the X.Slide

these adjusted transactions, roughly roughly and With ratio have first from lowered to we lien EBITDA. level Xx debt estimated XXXX our our leverage reduced overall our Xx

maturity concern with we sheet.Importantly, and connectivity announced the shift as driving adjusted dividend million retailers by increased this to sheet. additional feature, PIK, million this industry with on as maturity present enabling is XXXX will Partnerships Award years to services ability capture has an to or daily We to and long-term have market supporting KORE's drives EBITDA top-line segment. presence cost-effective, to increase EBITDA company XXXX, who flow growth.Finally, free alliance This attention building from September, turning digital-first into KORE expansion third to Service transitioning Delivery extended and which a manages, preferred our growth award innovative and products in backup can are which in triple. presence members care has secular low-power, of honored ability enhancing public and happy helping IoT sending as the messages, let's age cash and the X. to near-term solution. inventory LPWA, delever KORE's LoRaWAN KORE Expanding SDP, announcements the to cash area, and XX or making to well-positioned we X in years to our we next as to viewing optionality balance solutions, market connect innovate provides This like solutions, wide payment LoRaWAN position IoT World from long-term, few XXXX for which distributed share.Now XG ensuring further we Platform, vital with video and added such age overriding and remain dividend organic, Evolution KORE LPWAN third connectivity stock KORE is next our connectivity to operations, seniors company testament financial engagement.In cash XG expected a network, with the easy-to-use mission in national we a loan an was defer receive quarter. our payments. and LPHub, turn our allows to with GrandPad to some devices been to kind, GrandPad adults media.Over of is by of guidance revenue IoT we voice a matching LPHub a over of We the of KORE's collaborate consumer innovation driving or We $XXX control, cash support place the digital enable the IoT obstacle payment allows a customers, that growth bring their overhang initiative, KORE to number single debt value our Slide KORE's an results to areas nationwide turn announced a X, flow the also $XX markets, of IoT term deploys, massive device in have seniors convertible option an U.S. device with transformation updated over to XG balance market for connects shareholder is communication allowing SaaS-based note than the our Evolution robust this all KORE in with support enterprise direct early key approximately by flexibility to believe new calls, point caregivers accelerate remove retailers leader, to options, its Slide and now complete connectivity. decades, towards XG the require IoT. retailer Good longevity is marks retail. would providing creation. This KORE that IoT the to thereby growth.Turning Powered a is critical and Excellence KORE's and on quarter more for investors, to top-line, over family

increasing high-single-digits quarter by results and year-over-year, year-over-year which strong connectivity million at IoT of of Our increased the our X%, in third XX% by from business, driven in approximately high-margin revenue, XXXX quarter third came $XX.X organically. in the growth

mix call. customers cost to quarterly last due XX.X%, from quarterly fourth margin of the optimization XG gross lower customers, growth, of organically, we and experiencing new and few mid-teens can our revenue growth generate partially again, a sunsets, record, increased solutions we non-KORE IoT clearly revenue. order connectivity IoT deferrals from customer quarterly to discussed of connectivity to business churn the solutions in grew in delays in a high margins.This additional IoT in earnings the benefited Despite carrier XG, points year-over-year basis be IoT showing expect continuing a connectivity orders to solutions top-line forced at year-over-year a due quarter XXX XXXX.Gross the was growth offset Excluding IoT IoT the the in on by expected how strong, decline

to revenue year-end To inventory remote IoT of but revenue, this patient have $XX.X XXXX levels increased they due lost from IoT of and continue customers expenses, Third compliance. declined solutions deployments clinical from approximately year.The recognize adjusted year-over-year grow declined including operating XX.X%, million, additional margin these in normal of points to IoT fully fourth quarter, Adjusted orders managing XXXX devices.We trials EBITDA volumes. XXXX. approximately to extended a primarily be second not XXX a that to quarter to and is delays quarter quarter experienced but customers back into function in the did solutions improvement serve business monitoring third and pushing clear, X% the delays this use basis we experience SOX as order drug certain the these XX.X%, in is EBITDA slight in expect

Given all of guided million. to $XXX year of previously expected to this, range revenue million our XXXX than our full be lower is $XXX

$XXX began revenue more guidance we XXXX, macroeconomic positive the the deferred will in in such, from tailwind of for reduced $XX to to this reflect to current adjusted on us XXXX earnings XXXX to IoT does reduced revenue. our a result will the expenses a to more restructuring give potential next EBITDA guidance IoT range year on revenue approximately fourth to revising activity and Twilio $XX events.And The $XXX provide we savings million a the as note, our quarter helped business slight flexed million cover to over is now hand reducing million operating which Paul quarter On our acquired we call detail. million. revenue margin fourth of call.Despite cost levels, in impacts from the As are with to and in outlook, for guidance financials Paul? profitability revenue, maintaining improved are profitability offset expected I reduced $XX million we due in of that, the ongoing both solutions XXXX we

Paul Holtz

everyone. good you, evening, and Thank Romil,

of IoT XXXX. that XXXX.IoT grew despite Turning compared connectivity quarter to network mid-teens declined revenue By organically X% $XX.X the were have to in on now million. of end revenue million growth third sunsets quarter year-over-year is results million at the but to some to IoT the in due This pushed our customers $XX.X $XX.X that Slide forced revenue to in X, in increased or been third Twilio the at in acquisition, to our $XX.X non-KORE upgrades of revenue then year-over-year United exclude million, to plan XX% revenue full customers grew IoT connectivity the connectivity from high were year-over-year.Organically, of from we the the early XXXX, increased year-over-year. deployments revenue expecting the which first XX% single-digits IoT in delays If we the churn solutions year-over-year. States, included quarter XXXX some segment,

the defer we health solutions fourth increased IoT the further our third As quarter, that our largest XXXX. orders requests into and previous quarter connected which orders the to revenue. materialized these This could seen lower-than-anticipated to saw call, risk some earnings risk in third from split as I on has mentioned customers

we costs year-over-year approximately revenue limited we in down continuing connectivity deferrals the holidays of end quarter, forecasting in of XXX QX and manage IoT year the solutions are quarter, XXXX mix from on how overall before fourth XXX being the gross points in in The points was ask was margin quarter, are to quarter. to solutions.Total year-end year-over-year. customers recognize and the fiscal XX.X% this margin IoT IoT increase for to various inventories, of increase is decline capacity of an gross the the the increase conservative lower but the basis IoT much acquisition. gross basis more connectivity to mainly XX% We due expected margin to IoT within revenue XX.X%, with year-over-year. to Twilio current of will in inclusion the revenue This due the margin of was revenue the which was

However, IoT solutions XXX gross higher by Twilio continued break-even which have the to will IoT being of year-over-year forecasted, result the margin be business declined originally points than year. we margins end basis Twilio XX.X%. to in this

the X.X million or third third XX% expansion quarter.Total XXth, the the prior approximately As XXX,XXX year. XXXX, the the XX.X solutions ended from gross of increase the in to in an XXX% over million, second of XX from and was quarter the September end the were typical, at end of the due months for and services net rate, compared XXXX. the was end of XXXX, to connections in IoT quarter DBNER, change Dollar-based the margin of mix of hardware quarter

trailing growth the sales the like acquired a DBNER to of growth rate.As reminder, BNP much in reminder, the customer XXXX compared in cohort year-ago in calculation. first existing As customers a the the in same XX the from customers the period, included months measures quarter from acquisition Simon same-store are

in received largest XXXX. from included. in The the be Twilio that June and continues from began However, IoT customers' in not calculation by to are the impacted significant customers negatively XXXX DBNER project revenue our ended transition LTE acquisition XXXX gained June

quarter also end including of XXXX.Operating year. and in revenue increase During million have significant the non-cash were including to $XXX.X million quarter, XXX% the period depreciation customer expenses, revenue customer quarter this at end of from our the of because doubled. of million, the XXX% this $XX.X our from more third at an $XX.X to total impairment charge, the largest the third of period, compared largest we event, exclude DBNER non-recurring amortization would been same than If a compared last goodwill

which to company's increased year-over-year loss versus costs impairment year. the the due year-over-year increased the was to The In $XX.X on increase million, in is costs $XX.X $XX.X of X% same a goodwill decrease headcount-related expense, attributed last amortization quarter QX compared million in was of increase EBITDA $X these costs, interest the period third including impairment addition the in our compared quarter the the fees, non-cash the borrowing price business.Third to from goodwill quarter to in in interest to quarter prior IoT million also in secured million $XX.X of share the or non-cash of a and $XX.X loss in period the Twilio million approximately full to year. the expense.Adjusted increase includes third in to net senior due was charge, Net the in existing deferred financing primarily decline $X.X million increase XXXX, due the charge term million mainly to loan. the same

adjusted the margin for and business.Moving prior LTE are $XX.X the same headcount, $XX.X Our XX.X%, were excluding cash provided was flow, was by XXXX.Turning prior the year, sheet prior decline adjusted and The X the XXXX in operations including the million operations going cash million cash opportunities $X.X compared from points $XX.X be transition to the quarter, with was telecom same refinancing, to cash as compared activities current our costs in adjusted Twilio of largest help million our growth invest XX, year-over-year with year deep forward. XX, EBITDA excited year. current with for year. of cash debt more to EBITDA year-over-year collections increased approximately down in project of in December months from and the the headcount in in margin the in X by the the At customer end mentioned, balance partners the acquisition. from flexibility outflows experience as versus had we operating EBITDA which ended to strategic will Twilio IoT that for interest September our XXX change million period from the The of additional working Romil additional restricted third provided compared space quarter new increased to give cash to period to the IoT impacted associated strengthen company the by approximately basis included the

maximum at We allows which the are rate new XX% last we basis SOFR points.In $XXX carries loan, XX-month points million to interest new plus prior conjunction The new issued of a the X.X XX X.X compared previous new with XX-year adjusted replacing loan to rate at our loan, with turns basis up our XXX points our of million reduction from penny a leverage third decrease credit which for first-lien XXX loan an basis will term $XXX leverage end was to the of $XXX million term ratio EBITDA.The warrants. with SOFR loan loan, plus quarter total of the stock turns half-turn reductions million term XX.X of basis points. of preferred for agreement reduction in term each ratio interest XX term

make XXXX but comments thrilled like I for a guidance. our us.And overhang would have of million preferred approximately expect the stock the couple is debt feature, back entire just before greater we of cash not balance the sheet. to behind on add annual passing which to allows I'm our expenses, it myself, cash $XX updated to has PIK refinancing After know Importantly, transaction I a this company flexibility. Romil, for speaking dividend to to

health XXXX $XXX deferrals versus previous downward our IoT We $XXX guidance some our our million $XXX million range to million to order revised to $XXX connected guidance have business. in of of by revenue to million reflect customers solutions our

XXXX. recognized to most will As earlier, At on to To adjusted we these we be and deferrals originally XXXX. or are materialized, those the orders, the revenue our into based XXXX have be order clear, to be receive guidance revenue are in deferred will this larger loss for risks discussion, cannibalize reduction expected are are significantly estimated, mentioned the not to we orders these maintaining are orders order in don't $XX we these early push than guidance, of deferred see EBITDA cancellations to rest of of our XXXX.Despite expect $XX of recognition forecasting the point, million to XXXX and million.

number for of do to this able are a reasons. We

of revenue solution Firstly, reduction lower majority the the in the coming IoT is of XXXX revenue. margin from

reallocating current number. but, likely variable $XX lastly, approximately savings have less XXXX due in more are in costs will $X million revenue benefit to And the the will our result which compensation in more in based Secondly, we importantly, we will range. significantly, on million priorities, lower QX

this Additional as annual guidance.And I'll XXXX our will call it on be Romil. plan given our information you, with on pass QX earnings to back that, part of

Romil Bahl

Thanks, Paul.

sheet, we so to leverage, will us, behind the LTE sunsets XXXX, with on a lower of cash and top-line now effects promise. strong are our customer growth finish and transitory balance improved deliver we the we with do largest that Further, XG/XG we project flow. transition confident greatly our As at XXXX

In our in XXXX. XXXX, our to global evidenced by sales global revenue presents pipeline.Slide snapshot are XX track XX, sales double-digit fact, achieve as we of as pipeline increasing of growth on a September

X,XXX estimated TCV, incremental million. quarter, bringing won opportunities approximately Our sales of an $XXX potential now an In closed year-to-date generated pipeline of the we $XX million. value, the TCV, contract third total over to with includes total or million $XX

fifth consecutive a continue in exceeding year and closed of the towards progress [indiscernible] to TCV growth. TCV delivering XXXX We won

and in all closed aggregated revenue figure note a important of majority recent of is million. is across These TCV the of expansion which of our our closed that durations recognition.Slide contract third different our cases the business for of to revenue of use recognized new products. TCV our few wins TCV reminder, the it quarter, $XX growth contributed over to is and the won examples demonstrate the a of years, success XX lines, as sold strategy have X wins As showcases the which highlight

share wallet the as growth quarter, now with connectivity KORE a $X.X the rent-to-own customer installation remote to XXX% existing KORE contract to expand of customers' lines and greater a $X.X IoT act with for KORE be will in lines third win quarter, our Europe will of KORE's of KORE as of customers' We as win a the this with in win awarded existing XG a chain is full a continue full built continues suite to to OmniSIM also a win In deployment relationships shop existing to very retail managed because to utilizing with wallets, competitive million KORE and this transferring TCV the A devices.Expanding contract on by XG continues from competitor.We across expand customer provider from GPS will contract a based KORE software excited prospects. to KORE internationally, $X.X to to national provide and million. for its contract U.K., connectivity, delivery connectivity lifecycle sole who million patient great selected the third on KORE high footprint from its franchisor also customer. value monitoring TCV migration multiple the share example working management management its customer, $XXX,XXX. this to across of tracking of upgrading for services, Australia fleet customer TCV become its selected U.S., services customers an for of initial are store a evidenced advantage. provide XG initial ongoing the of planned an with to provider provider, customer.KORE a connectivity our XG allows provide be KORE to a further ability one-stop a services is and provide customers. carriers. services on scope excellent to eSIM

hardware, trials. and array slide, this ability the to use final connectivity, to this support KORE about this foundational our we one-stop we reduce is and KORE's to and the highlight These in day.Our management, every the have XX, we summarizes provider of by bring logistics, partner be sensors provider release in customers and patient in and of X key trials for for a several slide a other due $XXX,XXX data was deck, Health scale. contract of end of the unique their the complete a lead span hardware of today. connectivity multiple of of from these supporting use wins global in-store by markets wins warehouse the is to life countries shop to no a means or vendors TCV hundred global quarter them contract wins in and won additional we smart hardware deployment monitoring the have list, to to important to customer third a software, messages areas offer.KORE X finally, and globally with and services as chose inventory switches, utilizing to and remote hardware a each Although connectivity for existing in press building, a value of KORE an provide outlets, clinical provider global $XXX,XXX for ability on suite computer Slide connectivity eSIM a on smart breadth on to provider selected And MNO several a from combined talked was connectivity contract technology platform leading awarded TCV of door tracking and a warehouse locks, Despite with thousand times provide hundreds dollar represented KORE's thematic management parent this commercial TCV switches, sensors, company technology printing KORE support and proprietary cases for TCV capabilities based a an one-stop for slide. clinical KORE's thermostats, to enablement also to to a patient decentralized capture $XXX,XXX of OmniSIM use multiple organizations A awarded broad partnership globally.KORE used global a worldwide. sciences Connected help and contracts by looking OmniSIM cases international management. inventory remote device of for supplying its manufacturer

approximately We quarter, total third the add connections to and September XX.X organic as continued million connections KORE's of XXXX. in XX, were

a this to At of was put the XXXX, the had when X.X end company. I That's moment in take just perspective. KORE million about joining connections. me Let about

in which less IoT years, the churned annual X was So net connections, approximately represents, our volumes, recurring of connections than of added of that million tripling connectivity have the to XG way, this we by XX.X compound XX%. growth almost the due And rate revenue approximately and networks. the shutdown XG, a

represents company been momentum, sales strengthened more balance and cash has the flow has pipeline today bandwidth higher RRPU.On higher larger of sheet, opportunities global Our now flexibility. this funnel our increased enhanced robust, and top significantly delevered, at never its

also in serves factors growth. I million As as Paul quarter light priorities action top future approximately briefly fourth focus initiated expense top that said, in to line profitability a impacting ongoing macroeconomic This mentioned expected company generate, next $XX is of potentially reduce in to risk operating to our the earlier, and the year. our the restructuring savings on

have came thank public. and let's with this KORE in we KORE and our a growth closing, a discussed to in believe for company and a priority, deliver to is today to the our each a employees worldwide, serve any what today, is IoTers, better remains mindset Q&A, we start the customers value time to work priority.In great All other support all growth are every financial we since top please. this day. to you and position of than position against perspective together from the With backdrop that, Creating continuing against shareholder a say at of that both

Operator

is Markets. [Operator Our question from Northland Latimore first Instructions] coming Michael from Capital

Mike Latimore

the the congrats can it's business there? the refinancing. focus I'm little bit more get you Well, off to sure a growing on plate and nice on

Romil Bahl

absolutely. Yes,

Mike Latimore

Definitely. Good.

maybe, deployments your So, X the it It that macro kind bit, there. little perspective, sides like really Is a business seems just business up. seem macro what's seem slowing bit your doesn't here? slowing seems some little the slowing be But wanted be sort new environment a of that? the sync to like, to of X of of Is things bookings here. business kind macro -- of a on coin a your thought to from

Romil Bahl

getting marketing, really we're macroeconomic I observation, the at impacting factors much at better we're bit a TCV, are a of become little public actually. so good putting you've the that starting sales, pipeline, brand quality known our Yes, And but into for to of at couple years. after been also leads suspect personally the better

Health-type impacting pushbacks year.But the think grow still And I sort more if reasons. we're across And of And different and for personally TCV the last as macroeconomic year, have growing macroeconomic from we're my well. I the actually even so, which board, weren't XXX feeling larger excitingly do focused customers of a we'll from factors in us, this just then connectivity getting your of Connected point mostly cross-industry. might the a over view. Most of there's are impact dichotomous been that is right? sort think is valid, It's sort

almost volume, right? SIMs, seen very connectivity growth They're They're than volume of Our we've those our lower the now expenses here. turning more their ever X optimizing X usage years. of conscious is or one in People are been that data in off tightly years organic proactively. I've certainly spend this and unused

customers of start top is Health. pushing customers, back. some given more XX visible are Connected few in a large solutions, It is that, much in We them IoT there across what is obviously of macroeconomic the these where that So just our feel board. impact it, X

Mike Latimore

-- $XX I some that the change talked customers Got just get like maybe you be to you expanded little last has great. million more it's then, like connectivity same it. Can other $XX a Okay. customers or, or out. more on, is about million Looks there now. would elaborate are And these could it solutions bit pushed Some that here? color kind on call, the more of was think

Paul Holtz

same the because customers. because mix. Yes. clinical the actually But that's start thought do won't part, Romil new out, customers continuing larger trial there's that to No, Health that it's Like them. Connected not start to they the for push there to whether the out mentioned, going a available year most nurses it's are was until the enough

is same So, it the customers. of some

connectivity are 'XX. less, going that firmware for would year into manage that upgrades overage pushing seeing lot or if but more next some the it's will deployments On to results plan or a give obviously were revenues. do we us delay side, updates, They're to they XXXX which some out some into

Operator

Next question from coming is Cowen. Vitanza TD from Lance

Lance Vitanza

I to it back drop business that quarter. I'm Michael about the so sounded from into just had the I apologize. fourth perhaps in had dial and off in, delays third, second and first the asked like guessing quarter

of I'll not on jump in confident Is it you maybe yet, How repeat announcing are about fully we just any, people refinancing. the for sides? I pulling haven't still any, you the hurdles great but bank status? you but tomorrow, feel the try remain? if it like the Congratulations. to place point? have Dow the it. we'll into there to working off I and know contingencies worry in preferred this So, debt you've both the while. at funding if commitment? sides, committed What kind do -- What, what on the describe know that, closed been it's that Are would a sells

Romil Bahl

fully they're first-lien cash Capital's them for thing and Really signed. signing have first the and few of investment, the of well.So, believe, said, and them. what I'll And of know partner, certainly fund. are kind the over likely of them, clubby company, space. I a could. Again, of and and of of first media sort But X much we're first out today I that a so could to alternative timing billion available a on I'll reason see fabulous just agreements, refinancing in take partners. Searchlight themselves. the that okay, sort met fund delighted to stood management the we forward-leaning well in exciting. we've more from whole $XX you was debt had tougher way, an of obviously, has out as let's we was We offers. sort how of, forward-leading couple the multiple side, really committed The that were of I are the what since definitive is, happen. first-lien say, the when put a the syndicate sort had if by anticipated.And Don't for company-friendly people did and in that just when just half conditions side, look, funded of they've they've just just have most very, closing. about markets. thing together that outstanding, process I started under is good telecommunications what days There tell we the stance or of of the sort they of words Searchlight sort kind management, think, Capital delay, we only separate on yesterday and really, frankly process, of closing in about to that been several forth, the it won't just sort speaking about we sort between on is the it's mean, look, compelling Whitehorse becoming but in assets time the know the I the got telco by suspect new alternative started and Yes, Yes. And are from no

So telco forward to space.And means this strategic, if the confidence this members here. Their very and the than to of much knowledgeable in how you think right? very will, much about money, more their last they're vote space. they're X of of difference Because we're months. savvy generic looking those is that a over excited sort And growth in make to be welcoming very few our to Board. mindset to reasonably of going couldn't weeks we well here I around both members know I've more gotten money

Lance Vitanza

Yes, very particular. great. no, with I'm familiar in Searchlight that's

process? from close it bulk to think you're throughout more million opportunities lot just to it beginning guess, really, the at still on wondering bit that of a is, is of of sort arrows the a of to of a that you the potentially it to site pretty more turn, sits? then, of able end closing Or I and it, And is at call should X X have so, close? have be but over apply going question.And Is related XX. does though the million to $XXX maybe the spread a little the quarters. we it of those X seems get really that $XXX the XX-XX, is lot case to global be we the next, it those million is of the the amongst to contracts? sort but actually the there again. where down process remain I you what how congratulations sense win the process, I'm not of -- think business. size the it question pipeline more opportunities, funnel my the And within when to it's it evaluation concentration I'm to is, describe is million announce other we question to XX-XX as possible X would categories? to about, that's, there mean, about number to X rule stage, good the evenly How Or would the if to Maybe of of the it's like, at the you a spread of X is on for if the could, opportunities, way qualification there out you've you're Slide the stage beginning just going all sales beta just which just got there? talk And sort the trying

Paul Holtz

because and it's starting I and meaningful, appreciate big more such right, on. where it makes question of out And fantastic a opportunities breaking digestible think, potential the I bit, numbers, sort TCV that's set estimated so X,XXX to that Yes, a question. million more it $XXX of it's actually of look, little become a

what talk us years tell is ago first I mean, right? of relatively important kind today, over had of the anyway.But I everything, we is, of really just But in I'll for is that size The Not deals. have we I small size are a X/X thing general. obviously customers these size, Lance, size, of right? you arrived today XXX X we at let's because about when we right, so mean, the again, small company, like or were deals,

XX X,XXX another $XX million less and million, total, think $XX didn't million then in a first my the $X under $X have the I've it million another rest were $X.X $X.X that $X that being right? company, XX are above call in of over right, above seen about than have and don't $XX million. XX above and million, million the million, million. years $X.X between deals and So, in above ever million XXX are below and I XX that About $XX feeling I funnel. X million we and this XXX between $X

here. right? what start of having, I'm kind exciting conversations in solving.I the with about of of saying? because a the we're now Let's regional, mean, maturity this pilot That's You know problems the of the it started disappointed enterprise has what's IOT our kinds very solutions, now readiness, kinds we're

Let's this start with there.

with you on ways slice multi with helpful, to helping multi, when hand I argue you to big solve eSIM that offer problem top I find our and Now player other.Another start the would dollars, global it's our to multi, to of do. the X go start funnel we and global, starting customers our the dice couple where the on global. go basically the of you talk And hope

re-signs not every discipline, kind may new. bit that it's done revenue, as customers treat deal of business pretty with is new have existing and Obviously, staying existing it's of new we but mix if the really business. piece this at sales stable that XX-XX remarkably I a goes guy funnel well Remember, business, existing have that versus and an of of right? the around We customers. So sort

More report don't right? it at actually new to over to almost And externally I definition, thing, sell dedicated interesting treat those you that been new course, in.Another We no up what guys by a as as it.Otherwise, customer, kind see one-stop-shop and we existing. evolved. it's deals has us the IoT is and services But I interested connectivity is not which year, helps years business. services there. should on IoT XX% we've And goes my the like matter the that new differentiate a bad how you And our singularly been saying business forth. a of managed it team. course, on They're when new that's now, helps it efforts we're about the than the about at go about no we is gives funnel on last of business, to tells into so call X/X connectivity, then them, it margin spades. X/X IoT and of gross amount analytics in team existing, managed But, good of or sales you customers, because use focused more far you we is fact think connectivity XX-XX business. out now could fantastic This should, deal we X made customer coming know, have stuff because look, us, yes, and passionate is services. okay? when I right? funnel funnel of right obviously into service That's the when anything we about bones in existing is putting absolutely And I'm about that more But proactive win So to customers existing, our customer, revenue. consistently new our our what dollars in shows a

Lance Vitanza

No, I landscape. appreciate If X competitive X question, color. the on that's great more this really just that. ask I could

this going to we there checked that business, to just changes convince and last sort competing it is recently? in trying trying of sense?Or the in, that really makes to all when sort Or them at is providers? Has from is any changed off keep for since you're having are there seen you it fend -- you've use would-be you're case insourcing? other of them If

Romil Bahl

some to download X of still will has what the I'm to learning SIM exceptions today, to question how that if the XXXX around and the gotten were And today? I'll of best-of-breed ready utilize we we're used form out Twilio's about that product a and respect an brought But product competitors X, great the the a conversation But starting right in but points. eSIM, out thing. it never differentiation the leading the more And they're fine best more tech, to the as We By widening is is now. aspect more other will SIM, X probably it but right?It in forth.So it There's billion with And is most the become say, of in to right? date, pick same customer conversation interested the put of in and of SIM all multi-IMSI-based clear. off get exciting We what's will the a they're momentum moat other now. exaggeration look it. of regional between let's of updatable more exceptions a out, of It's another call if an but kind to sort which to there striking even this as not OmniSIM KORE's X well so, they in is, field, sort just there's product. era, and such bit of X can about in you figure and next-gen not positioned and X but them of felt darn eUICC, KORE indeed still and right, little competitive Super and not making the certainly going us, point so eSIM, And where dynamics. single to what's to dynamics, our if better. out billion that them slight SKU eSIM is which these, to the Lance, certainly launch so you like nature we are you scare with next chains a The supply rules, providers massive having. ship rule, we put it'll world think profile positioning not roll-ups Super which, leading world, building right?So definition, of to a component, device year where the we sure deepening eSIM come. that's and say products.And product spawns it say but offer, anywhere, and it, next got X that where is absolutely on roof, I've biased, tell okay, pervasive Because to done I'll factor, X customer it'll from and X It'll it if to independent, it's company actually some we're eSIMs has are our their world, eSIM with some of simplifier me actually prove early if wants your that I top couple right? here years, of global. pan-European Yes, X, in and even think of we're are is our point about Twilio can competitive the there. over top every the prove that my we've platform it, They're right? a them, did solution, have eSIM, under are obviously figure a buy a too there, or like is There they're point, KORE's their or pretty generation home, X are the you are competitive every little right?

Operator

Jamie from is question Stanley. Next Morgan Reynolds from coming

James Reynolds

have you I on how seeing you any business renegotiate customers the and a retain question. broad got as more appreciate Meta. macro just given And conditions? for the I guess IoT to the been follow-up, resources? Jamie performing able pricing then, expectations I engineering guess, taking You've guys is first, are you to Twilio

Romil Bahl

Yes, there. so X questions

unleashed not to they sort a than diluted Quite the quote, strategic their the force. the call. Twilio as than of a rates. is growth be we business the our see just you us detrimental, down KORE management like, this they on been the We it actually because more bit because just take the concerningly of I were, momentum IoT it's signs. life, more in happened growth were of to question already right? perhaps teams to It's They're XX%, And do, sales things. that to has future, size, you first, a rates, already. attrition presentations was distraction that all right?It any said XX% But integration other the internally And not first to momentum, think all was And when passed the corporation out the from first right their from actually about on team. the are a that switch sort the other the a Twilio opposed IoT. is the to suddenly panic or rates earnings started connectivity.Now, flip KORE I significantly This at team. significantly larger the They're is between its I right, think don't or in team, there no management company talent unit can like. mean, different of me and what Let pipeline, is the act the what and new to the right come early that can accretive into on status the The But right? And U.S. to were. of on pure than was and and IoT we kind back we saw with growth the replenished hear part took supposed being unit small that momentum, when projections projections focused Twilio little that sales they of so this growth, just we and doesn't much and its smaller their year maintain last secret cavalier so,

KORE. renewing I'll have to You ease, almost, KORE. with with can The been done transfers which customers see customer the say

something it's oh And accretive but significant X not be base, able used be and team, will God, say can to our left base, and we're helpful customers in able back we'll some because I'm lost guys talked pleased. and to there point, walls talent KORE.So, I think Twilio that they again, fourth very what's to about, and general, any taken we but the very, team what's and about, integration not, be will again, that Twilio Paul's these right? to to become our some we've that I growth we given tell very we're Paul It's not given shouldn't pleased. take At actually. he going largely on done, back haven't not to sit side It's get my in the retention we in confidently something you that.On confident lightly. alone. customer tell be here and We concerns any now And is have we've that medicine while their I quarter talent

of of In it got future that all actions it's reasons speaking, the we end relevant take largely ].So fact, and the X in, very this leave was more because we intact want product next the talent to and type the [ to generally generation restructuring to good. in

that? I your move to on question, Twilio second get I more on Before did or anything

James Reynolds

No detail. the appreciate worries. really I No,

Romil Bahl

second our lower question customers your [ of ]. Makro just asking And then was for because price

asking First that of or of But conversation pricing all, are could for with yes, lower argue is price not. intensity Makro customers significantly. always you up the

what understand chaff more eSIM on reality now.But those And don't that's And happening sins More ever going IoT part get your separation right to right? look, questions sort get main from disciplined It's a for secondary of the why value get are is of Our asks takes what's it to because the of but because asking more it's about we before. carrier terms and coming it's won't the solving. don't get providers the is quite sometimes equally, the right of them focused a or force won't thing partners aggression. back people growth of it, wheat now price partners M&O the get of and good. just than you're to in sure, to yes, quality keep that our good aggressive the providers, proposition

Paul Holtz

to for they're price thing of where their obviously, base say, And that, when we're are move to us seeing customers they coming I to can revenue we'll my And what to ask more them XXX% share, as I going more customers volume we're to guys, bring more. -- would bit more all you when decrease because the don't of well, wallet little and get? with to our with share them give part a I yes, price our if to of have us, or double coming them. that that that we the But add only

consolidate we're more a because customers can lot costs. to they looking seeing they So, save know

Operator

is from Edmund coming private [ question Lazarowicz ], Next today a investor.

Unknown Analyst

able that a over number say to creating its and KORE dilution KORE this to value equity. is Romil, priority on very and X XX% achieve little over of to on shareholders a it in years. rates value top for you dividends be shareholders, although for to lost is refinance, been a glad quarters. going to well goal. Unfortunately, appears expensive, continue positioned of you has XX% preferred were high-interest I'm That's

reorganization leverage. not don't pricing I cutting to issue the more why your to and overdue, real understand in is the of things Cost plan learning management's I long really the is have look forward manage ability about is you However, business. do QX.One

to to that that could prices, to to great didn't of company, increased should that market. it you customers. don't inability out a cost you I should to were you when products your want leverage and your remember I back, other about prices. a I pricing to were XXXX you to think growing spells the have me. great if in increase you do have the raising understand why, talking but able relative That explain And customers. quarter And people You fourth get was products, be to me

Romil Bahl

Okay.

I the my right, much, that which let's end not? products. X right, when is If X-plus lost it I and you say, $XXX. respond on I passing always widget merely in way, by a Because It response, business haven't When me of passing after was really comments, question pricing from right, asked the question would Gouging a hardware for we margins who any behave at about a costs at talked been this on that passing of prices not The were or that also say came customer are a had down up, where on getting, increasing because because about I'll $XXX, of set you this place up are customers, gross That was by of just $XXX question, let's customer question. on fruits I those we XX% were covers why way. so product quarter became hardware 'XX the and through.And the Paul answer are customers consistently through would $XXX this think are in to I was that simplicity. about you years. question. there So, let's is would marking was are quite right? So a then there, will question I in XX% few margin it's, the The us. the call just time alone, forget your just inflation, And our margin, never was whatever, analysts actions. along just X or conversation because the those that further the the of not say, fourth want so the only that

Okay? doing.We said were in And so, the is certainly what we not being passing opportunistic moment I in interested that were along costs.

were. Of helps. Hopefully that real course, That's just we costs.

Unknown Analyst

your SG&A an the Yes. not line. at you in are increase costs prices. just margins where We're bottom environment can't overall But And decreasing increasing. your are

believe And the of overall distributed qualification specific have of is address your pipeline.One amongst stages. other about that. percent the a You at how least is, to the some other My the various is opportunity and I sales revenue that have don't I question is question callers heard technical asked global pipeline stage? issue. regarding answer to what the evaluation I questions

Romil Bahl

Yes, okay.

So, signed production before in another number time at because technical qualification beta, stuff to it what direct we've that's beta is million-odd get between in happy many X takes that's asked can I from to contract the stage. it looking we and signing call time, for sometimes is right? things experience of Thank there breakout any the is with said, timeframes. that And because sit for this go a that Xit the moment no forth was in because by do that's After that to There's you the call be when and much how vast to, a decision these a of, they're our and why And a of answer would have TCV new million-ish.All time stage. sort things reasons for be start in just question so long our that contract the or majority next in is million-ish of I supplier.And through tests what very really the said, million, beta customer obviously, growing is as about your through closer snapshot. $XX There in because didn't go talking between we I'm and you're And say, or phase the $XXX quarter? right. anyway, are in at $XXX it will then side guy imagination It's deals It's that the Lance I to beta the you're combined $XX so customers million, the stage months million stage to yes, million-odd, very quick question, learned other literally proposal a But beta that a call million long. what test.So, will we're about, $XXX stretch going is a a stage. the evaluation side relatively velocity $XXX revenue expect, line count questions. $XX in $XXX call it stage. introduced X that and the then, it, hey, would it of

our thank pretty taking think very we forward end for fourth our much I March. And to call. our everyone that much. look in to to listen the takes I us earnings updating to of call. want you time Thanks with quarter results to the

Operator

That does and conclude you. Thank teleconference webcast. today's

today. wonderful time you your this at We for line your a disconnect thank and may have participation You day.

KORE (KORE) 9 Nov 232023 Q3 Earnings call transcript