Education
About Us
Working with TipRanks
Follow Us
KORE Group Holdings (KORE)
NYSE:KORE
Top Page
KORE Group Holdings
(NYSE:KORE)
46Neutral
Positive Factors
Cost Efficiency
The company's focus on cost efficiencies and aiming to re-align spend to higher growth areas is encouraging, expecting a $20mm annual run rate cash saving from the RIF announced last quarter.
Revenue Growth
Connectivity delivered revenue growth, rising connections, and higher ARPU, reinforcing its role as KORE's growth engine.
Negative Factors
Balance Sheet
Balance sheet challenges persist.
Growth Visibility
While this quarter's more stable results were encouraging, there is still a need for a clearer line of sight to higher growth.
KORE Group Holdings (KORE) vs. S&P 500 (SPY)
Market Cap
$42.01M
Dividend YieldN/A
Average Volume (3M)14.25K
Price to Earnings (P/E)―
Beta (1Y)0.41
Revenue Growth7.00%
EPS Growth31.92%
CountryUS
Employees600
SectorCommunication Services
Sector Strength74
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-8.47
Shares Outstanding17,008,356
10 Day Avg. Volume8,281
30 Day Avg. Volume14,250
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.15
Price to Cash Flow (P/CF)9.30
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$0.28Price Target Upside-89.02% Downside
Rating ConsensusHold
Number of Analyst Covering1
KORE Group Holdings Business Overview & Revenue Model
Company DescriptionKORE Group Holdings, Inc. provides Internet of Things (IoT) services and solutions worldwide. It offers connectivity, location-based, device solutions, and managed and professional services that are used in the development and support of IoT technology for the Machine-to-Machine market. The company provides Connectivity-as-a-Service; IoT solutions and analytics to fleet tracking companies; and asset monitoring, communications, and industrial IoT services. It serves customers operating in a range of sectors, including healthcare, fleet and vehicle management, asset management, communication services, and industrial/manufacturing. The company was founded in 2002 and is headquartered in Alpharetta, Georgia.
How the Company Makes MoneyKORE Group Holdings primarily makes money through its IoT connectivity services, which provide businesses with the necessary infrastructure to connect their devices across various networks globally. The company generates revenue from subscription fees for its managed IoT connectivity services, where clients pay for the number of connected devices and the data usage. Additionally, KORE earns revenue from its location-based services and IoT security offerings, which include consulting, implementation, and ongoing support services. Strategic partnerships with telecommunications companies and technology providers also play a crucial role in KORE's revenue model, enabling the company to expand its service offerings and access wider markets. The company's focus on delivering comprehensive IoT solutions helps to attract and retain a diverse client base, contributing significantly to its earnings.
KORE Group Holdings Financial Statement Overview
Summary
KORE Group Holdings faces significant financial challenges with negative profitability, leverage issues, and negative equity. Revenue growth is modest, but high operating expenses and debt levels pose substantial risks. Cash flow improvements are a positive sign, but overall financial health remains weak.Income Statement
KORE Group Holdings has shown an increase in total revenue from $276.61 million to $285.23 million in the TTM period, indicating a modest revenue growth rate of 3.11%. However, the company is currently struggling with profitability as evidenced by its negative net profit margin of -47.34% and negative EBIT and EBITDA margins. The gross profit margin stands at 49.74%, which is relatively strong, but the high operating expenses are significantly impacting the bottom line.45
Neutral
Balance Sheet
The balance sheet reveals a concerning financial position with a negative stockholders' equity of $-77.24 million, resulting in a negative equity ratio. The debt-to-equity ratio cannot be calculated due to negative equity, but the substantial total debt of $307.85 million suggests high leverage. The company's financial stability is at risk given the negative equity and high liabilities.30
Negative
Cash Flow
KORE's cash flow statements indicate challenges in liquidity and cash generation, with a negative free cash flow of $-10.42 million and negative operating cash flow of $-3.85 million for the TTM. The free cash flow growth rate is positive when compared to the previous year, but it remains negative, indicating ongoing issues with cash generation relative to expenses. The operating cash flow to net income ratio is negative, highlighting inefficiencies in converting income into cash flow.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 285.23M | 276.61M | 268.45M | 248.22M | 213.76M | 169.15M | Gross Profit |
| 141.91M | 148.05M | 139.29M | 125.99M | 115.83M | 105.49M | EBIT |
| 159.28M | 9.80M | -27.43M | -16.15M | -9.54M | -7.94M | EBITDA |
| -27.42M | -67.27M | -28.07M | 40.04M | 35.46M | 36.53M | Net Income Common Stockholders |
| -134.99M | -167.04M | -105.42M | -24.45M | -35.20M | -23.44M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 8.29M | 27.14M | 34.65M | 85.98M | 10.32M | 8.29M | Total Assets |
| 0.00 | 586.98M | 689.91M | 759.60M | 700.02M | 724.85M | Total Debt |
| 0.00 | 309.52M | 430.34M | 402.90M | 302.93M | 313.24M | Net Debt |
| 8.30M | 282.38M | 395.70M | 316.92M | 292.61M | 304.94M | Total Liabilities |
| 0.00 | 550.01M | 508.46M | 487.46M | 679.80M | 408.61M | Stockholders Equity |
| 316.24M | 36.97M | 181.45M | 272.14M | 20.22M | 316.24M |
| Cash Flow | Free Cash Flow | ||||
| -20.66M | -26.65M | -1.07M | -28.18M | 14.50M | 1.37M | Operating Cash Flow |
| -3.85M | -6.42M | 15.48M | -14.76M | 26.47M | 14.25M | Investing Cash Flow |
| -16.81M | -20.23M | -62.55M | -13.42M | -11.60M | -50.37M | Financing Cash Flow |
| 19.28M | 18.91M | -3.81M | 104.05M | -12.72M | 37.00M |
KORE Group Holdings Technical Analysis
Positive
2.55
Price Trends
2.46
Positive
2.15
Positive
2.23
Positive
Market Momentum
0.03
Positive
54.74
Neutral
53.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KORE, the sentiment is Positive. The current price of 2.55 is above the 20-day moving average (MA) of 2.50, above the 50-day MA of 2.46, and above the 200-day MA of 2.23, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 54.74 is Neutral, neither overbought nor oversold. The STOCH value of 53.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KORE.
KORE Group Holdings Risk Analysis
KORE Group Holdings disclosed 46 risk factors in its most recent earnings report. KORE Group Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
KORE Group Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $46.68M | 10.31 | 24.20% | ― | 7.08% | 59.40% | |
59 Neutral | $27.83B | 1.88 | -18.16% | 4.00% | 2.13% | -44.45% | |
51 Neutral | $52.33M | ― | -129.17% | ― | -20.55% | 57.03% | |
47 Neutral | $41.05M | ― | -47.37% | ― | -5.86% | -4497.25% | |
46 Neutral | $42.01M | ― | 174.77% | ― | 7.00% | 31.92% | |
39 Underperform | $35.52M | ― | -33.05% | ― | -6.51% | -117.84% | |
34 Underperform | $45.83M | ― | -98.64% | ― | -14.67% | 59.39% |
* Communication Services Sector Average
Performance Comparison
KORE
KORE Group Holdings
2.51
-0.98
-28.08%
UONE
Urban One
1.43
-1.07
-42.80%
FLNT
Fluent
2.33
-0.68
-22.59%
IZEA
IZEA Worldwide
2.10
-0.30
-12.50%
UCL
uCloudlink Group
1.24
-0.30
-19.48%
BODI
Beachbody Company
6.37
-3.23
-33.65%
KORE Group Holdings Earnings Call Summary
Earnings Call Date: Nov 19, 2024 | % Change Since: 39.34% | Next Earnings Date: Apr 15, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive developments in IoT Connectivity growth, cost savings from restructuring, and significant customer wins. However, these were tempered by challenges in IoT Solutions revenue decline, adjusted EBITDA reduction, and high debt concerns. The company appears to be on a stable path forward, with improvements in cash flow and operational metrics.Highlights
Growth in IoT Connectivity Revenue
Revenue for IoT Connectivity increased by 3% year-over-year, representing 82% of third quarter revenue. The growth was driven by strong market demand and effective sales strategies.
Increase in Total Contract Value
Closed $32 million in Total Contract Value (TCV) in Q3 2024, with 91% related to IoT Connectivity. Year-to-date closed TCV was $128 million, up from $87 million in the prior year.
Restructuring and Cost Rationalization Completion
Completed restructuring and cost rationalization, generating $20 million in gross run-rate cash savings. This included a 25% workforce reduction and onetime costs of $4 million.
Operational and Financial Improvements
Year-to-date free cash flow improved by $6 million compared to the previous year, despite $1.5 million in onetime severance payments.
Positive Customer Wins Across Industries
Secured significant contracts in asset monitoring, healthcare, smart agriculture, and remote patient monitoring, contributing to strong IoT Connectivity growth.
Lowlights
Decline in IoT Solutions Revenue
IoT Solutions revenue declined by 9% year-over-year due to a strategic shift away from low-profit hardware deals.
Adjusted EBITDA Decline
Adjusted EBITDA decreased by $1.2 million or 8% compared to the prior year due to increased headcount-related expenses.
Restatement of Second Quarter Results
Identified a calculation error in goodwill impairment, leading to a restatement of Q2 results. Revenue, adjusted EBITDA, and cash flows were unaffected.
High Debt Load Concerns
The company has a significant debt load of approximately $470 million, raising concerns about liquidity and the need for refinancing.
Company Guidance
During the Q3 2024 earnings call, KORE Group Holdings reaffirmed and adjusted its guidance based on third-quarter results and fourth-quarter outlook. The company reported a total revenue of $68.9 million, slightly up from the previous year, with IoT Connectivity revenue increasing by 3% to $56.7 million, representing 82% of the total revenue. Adjusted EBITDA stood at $13 million, a slight decrease from $14.2 million in the same quarter last year. Free cash flow remained flat year-over-year for Q3, although it improved by $6 million year-to-date compared to the prior year. The company reported significant growth in Total Contract Value (TCV), closing $32 million in Q3, with 91% attributed to IoT Connectivity. KORE has narrowed its full-year revenue guidance to $280-285 million and adjusted EBITDA guidance to $54-55 million, reflecting strong demand in IoT Connectivity and strategic initiatives. The company highlighted its strategic focus on customer intimacy, profitable growth, and operational excellence as key drivers for future performance.KORE Group Holdings Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
KORE Group Holdings Announces Leadership Reshuffle for 2025
Neutral
Jan 28, 2025
On January 23, 2025, KORE Group Holdings announced an organizational redesign resulting in the departure of Jason Dietrich as Executive Vice President and Chief Revenue Officer, effective January 31, 2025. Jason Dietrich’s exit makes way for Jared Deith, who has been with the company since February 2022 following the acquisition of Business Mobility Partners, Inc. and Simon IoT LLC, to assume the roles of Executive Vice President and Chief Revenue Officer. This change signifies a strategic shift in leadership intended to bolster the company’s operations.
Financial DisclosuresRegulatory Filings and Compliance
KORE Group Delays Q3 2024 Financial Results Release
Neutral
Nov 12, 2024
KORE Group Holdings has announced a delay in releasing its third quarter 2024 financial results and webcast to November 19, 2024, due to the need to restate its second quarter financial statements. This restatement arises from errors in computing a non-cash goodwill impairment charge, though it won’t affect the company’s revenues, cash flows, or Adjusted EBITDA. KORE reassures stakeholders that the adjusted timelines will allow for thorough review and accurate reporting.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.