ATLANTA, April 11, 2024 /PRNewswire/ -- KORE Group Holdings, Inc. (NYSE:KORE) ("KORE" or the "Company"), the global pure-play Internet of Things ("IoT") hyperscaler and provider of IoT Connectivity, Solutions, and Analytics, today reported financial and operational results for the quarter and full year ended December 31, 2023. Company Highlights The Company is providing 2024 revenue guidance in the range of $300 to $305 million and Adjusted EBITDA, a non-GAAP metric1, guidance in a range of $64 to $66 million, reflecting a re-acceleration in IoT Connectivity growth. IoT Connectivity is projected to grow at 20% in 2024. Streamlined operating costs and a strong start to Q1 bolster KORE's confidence in meeting its 2024 outlook. With its five-year transformation complete, KORE will no longer be adjusting one-time transformational investments starting in 2024. On a comparable basis, without these one-time adjustments, which were made in 2023, the Company anticipates full year-over-year Adjusted EBITDA growth of approximately 33% at the midpoint of its guidance range. The Company delivered $72.4 million in revenue in the fourth quarter of 2023, which represented 16% growth year-over-year, powered by a 27% increase in IoT Connectivity revenue, partially offset by the deferrals in its IoT Solutions business. Net loss for the fourth quarter was $33.7 million, a decrease in loss of 52% year-over-year. The Company's Adjusted EBITDA of $13.8 million was down 12% year-over-year. The Company generated an incremental closed-won Total Contract Value (TCV)2 of $28 million in the fourth quarter of 2023, bringing the total closed-won TCV for the year to $115 million. This represents the fifth straight year of closed-won TCV growth. KORE landed its first major Connected Health pre-configured solution win. The Connected Health Telemetry Solution (CHTS) customer is a global healthcare enterprise, and in the first quarter of 2024, the Company finalized this deal with a TCV of $26 million. For this engagement, the Company will be supporting a global home respiratory therapy program for over 65,000 patients, with the customer utilizing KORE's CHTS gateway, device management and configuration, cloud platform and a temporary data repository cloud service. KORE has demonstrated its industry leadership and commitment to innovation by securing its position as a Leader in Gartner's Magic Quadrant for Managed IoT Connectivity Services Worldwide for the fifth consecutive time and receiving the 2023 IoT Excellence Award from TMC and Crossfire Media for its CaaS offerings, including Super SIM, which guarantees optimal coverage, quality, and cost in wireless connectivity. Additionally, KORE is one of six managed IoT connectivity vendors consistently included in Gartner's Peer Insights across all three regions analyzed. "Although 2023 was a challenging year characterized by inventory corrections and fluctuating macroeconomic conditions, I am incredibly proud of everything KORE accomplished over the year. We expanded our connectivity portfolio, strengthened our balance sheet, and streamlined operating costs. While we experienced additional order deferrals in Q4, including from our largest customer, KORE has retained these customers, and we are well-positioned to take advantage of a de-risked 2024. We expect our core connectivity business to grow by double digits organically and by over 20% year-over-year. As our organic growth accelerates, we will remain cost-disciplined, focusing on profitability and EBITDA. With the 2G/3G sunsets and much macro uncertainty behind us, KORE has never been better positioned to capture the opportunity that the decade of IoT brings," said Romil Bahl, President and CEO of KORE.  Financial Performance for the Fourth Quarter of 2023, Compared to the Same Period of 2022: Total revenue increased by 16% to $72.4 million, compared to $62.4 million in the fourth quarter of 2022. IoT Connectivity revenue of $55.3 million increased by 27%, compared to $43.7 million in the fourth quarter of 2022. On an organic basis, IoT Connectivity revenue growth was in the mid-single digits. IoT Solutions revenue declined by 9% to $17.1 million, compared to $18.7 million for the same period one year ago. The decline in IoT Solutions reflects significant deferrals from KORE's top customer, with no shipments in the quarter. Net loss decreased 52% year-over-year to $33.7 million, compared to $68.8 million for the same period one year ago. Adjusted EBITDA decreased 12% year-over-year to $13.8 million from $15.7 million in the fourth quarter of 2022. Financial Performance for Fiscal Year Ending December 31, 2023, Compared to the Same Period of 2022: Revenue increased by 3% to $276.6 million, compared to $268.4 million. IoT Connectivity revenue increased 15% to $202.3 million, compared to $175.9 million. IoT Solutions revenue decreased by 25% to $74.3 million, compared to $92.5 million. The revenue decline in the year was driven by a large deferral in the fourth quarter from KORE's top customer and the LTE transition project completed in the second quarter of 2022. Net loss increased to $167.0 million, compared to $106.2 million in 2022. The Company's annual net loss increased due to higher interest expenses, increased costs due to the acquisition of the Twilio IoT business, a mark-to-market charge on the fair value of certain of the Company's warrants, and one-time costs associated with the Company's debt refinancing. Adjusted EBITDA declined by 11% to $55.6 million, compared to $62.8 million in the comparable period. The decline was due to increases in headcount-related costs, including those from the acquired Twilio IoT business, and higher professional services fees associated with the Company's audit. The tables below summarize the Company's revenue and specific key metrics. Three Months Ended December 31, ($ in thousands) 2023 2022 IoT Connectivity $55.3 76 % $43.7 70 % IoT Solutions $17.1 24 % $18.7 30 % Total Revenue $72.4 100 % $62.4 100 % Period End Total Connections 18.5 million 15.0 million Average Total Connections for the Period 18.7 million 14.2 million Twelve Months Ended December 31 ($ in thousands) 2023 2022 IoT Connectivity $202.3 73 % $175.9 68 % IoT Solutions $74.3 27 % $92.5 32 % Total Revenue $276.6 100 % $286.4 100 % Period End Total Connections 18.5 million 15.0 million Average Total Connections for the Period