Q1 2024 KORE Group Holdings Inc Earnings Call Transcript
Key Points
- Kore Group Holdings Inc reported a 15.2% year-over-year increase in first quarter revenue, reaching $76 million.
- IoT connectivity revenue grew by 33% year-over-year, driven by the Trulia IoT acquisition, and now represents 76% of total revenue.
- Adjusted EBITDA for Q1 2024 increased by approximately 11% compared to last year, totaling $14.8 million.
- The company successfully closed an incremental $52 million of TCV in Q1, building upon five years of TCV growth.
- Kore Group Holdings Inc has been named a leader by Gartner in the Magic Quadrant for Managed IoT connectivity services worldwide for the fifth consecutive time.
- IoT Solutions revenue declined by 19% year-over-year due to reduced volumes from a major customer and the decision to turn away low margin hardware deals.
- Total connections decreased by 200,000 from the previous quarter, reflecting deactivations of low RPU connections from a European customer.
- Operating expenses in Q1 2024 increased by $4.8 million or 10.8% compared to Q1 2023, primarily due to headcount related costs from the Twilio IoT acquisition.
- Interest expenses increased year-over-year to $12.9 million due to higher borrowing costs on refinanced debt and preferred stock placement.
- The Dollar Base Net Expansion Rate (DBNER) for the 12 months ended March 31, 2024, was 94%, down from 107% in the prior year, indicating a slowdown in growth from existing customers.
Thank you, greetings, and welcome to the KORE Group Holdings Inc. first quarter 2024 earnings call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Vik Vijay, Vice President, Investor Relations. Thank you, Vik, you may begin.
Thank you, John. On today's call, we will refer to the first quarter 2024 earnings presentation, which will be helpful to follow along with as well as the press release filed this afternoon that details the company's first quarter 2024 results. Both of these can be found on our Investor Relations page at ir.korewireless.com. Finally, a recording of the call will be available on the Investors section of the company's website.
Later today, the company encourages you to review the safe harbor statements risk factors and other disclaimers contained on this slide in today's press release as well as in the company's filings with the Securities and Exchange Commission, which
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