IoT leader KORE reports second quarter 2021 financial results, including record revenue for second consecutive quarter
Aug 23, 2021
ATLANTA, Aug. 23, 2021 /PRNewswire/ -- KORE, a global leader in Internet of Things ("IoT") solutions and worldwide IoT Connectivity-as-a-Service ("IoT CaaS"), today reported financial and operational results for the second quarter ended June 30, 2021. This is the second consecutive quarter KORE has reported record revenue, as the company prepares to list on the New York Stock Exchange in the third quarter ending September 30, 2021, following the completion of its proposed business combination with Cerberus Telecom Acquisition Corp. (NYSE: CTAC.U, CTAC, CTAC WS) ("CTAC"), the first special purpose acquisition company sponsored by an affiliate of Cerberus Capital Management, L.P. ("Cerberus").
Second Quarter 2021 Financial Highlights
- Total revenue increased 19.0% year-over-year to $60.7 million, a record in second quarter revenue performance.
- Revenue generated in KORE's Connected Health industry vertical increased 21.6% to $23.6 million, compared to $19.4 million in the same prior-year period.
- IoT Connectivity revenue increased 15.1% to $42.8 million, compared to $37.2 million in the same prior-year period.
- IoT Solutions revenue increased 28.8% to $17.9 million, compared to $13.9 million in the same prior-year period.
- Adjusted EBITDA, a non-GAAP metric*, was $14.7 million compared to $15.5 million in the same prior-year period, due primarily to public company preparatory costs incurred for the first time in 2021, foreign exchange movements and other costs. Year-to-date Adjusted EBITDA through June 30, 2021 exceeded expectations by over $1 million and the same prior-year period by almost $2 million.
"The sales momentum generated last year continues to result in revenue outperformance this year, across both lines of business," said KORE President and CEO Romil Bahl. "Organizations in all industries continue to adopt IoT to solve some of the biggest issues society is facing today, including worker shortages, severe drought conditions where IoT is being deployed immediately so that municipalities can detect and mitigate leakages and water loss quickly, and remote patient monitoring, which is a segment of the Connected Health market showcasing innovation and high growth. The KORE Connected Health business benefited from the timing acceleration of a sizeable project with our largest customer. KORE is assisting this customer with its mission-critical migration to LTE connectivity, from 2G and 3G. We anticipated this project would largely be delivered in 2022, but it has moved forward to help the customer further mitigate migration risks. I am pleased to confirm that even without this revenue acceleration in Q2, we would have comfortably exceeded our forecast expectations for the quarter."
Key Metrics and Recent Business Highlights
- Total Customer Connections** increased to 13.2 million as of June 30, 2021, up from 10.2 million Total Connections as of June 30, 2020.
- Dollar-Based Net Expansion Rate (DBNER)** was 113% for the twelve months ended June 30, 2021, compared to 103% for the twelve months ended June 30, 2020.
- Revenue mix - IoT Connectivity to IoT Solutions - continues to shift and went from 73:27 in Q2, 2020 to 71:29 in Q2, 2021, reflecting the accelerated growth of IoT Solutions.
- Continued to provide IoT connectivity services to ~3,600 customers globally for the three- month period ended June 30, 2021, most of which are connectivity only, representing a significant opportunity to cross-sell additional services.
- At Mobile World Congress 2021, held in late June in Barcelona, KORE and its customer SwoopAero were selected as one of the top "IoT for Impact" solutions presented to dignitaries including the King and Prime Minister of Spain, and President of Catalonia.
Bahl continued, "CTAC has announced that it will be holding a special meeting of its shareholders on September 16, 2021 to vote on the proposed business combination with KORE. As we prepare for the CTAC shareholder vote, I am confident the KORE team is building a world-class set of capabilities that will enable a 'connected planet' over the next 10 to 15 years. The decade of IoT has started with a bang for KORE, and we remain confident that given our great start to 2021, we will exceed our revenue forecast for the full year."
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