ATLANTA, August 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 the proposed combination business with Cerberus Telecom Acquisition Corp. (NYSE: CTAC.U, CTAC, CTAC WS) (“CTAC”), the first special purpose acquisition company sponsored by a subsidiary of Cerberus Capital Management, LP (“Cerberus”).
Second quarter 2021 Highlights
- Total revenue rose 19.0% year-on-year to $ 60.7 million, a record in second-quarter revenue performance.
- Revenue generated in KORE’s health-related vertical industry rose 21.6% to $ 23.6 million, compared with $ 19.4 million in the same period last year.
- Revenue from IoT Connectivity rose 15.1% to $ 42.8 million, compared to $ 37.2 million in the same period last year.
- IoT Solutions revenue grew 28.8% to $ 17.9 million, compared to $ 13.9 million in the same period last year.
- Adjusted EBITDA, a non-GAAP metric *, was $ 14.7 million compared to $ 15.5 million in the same period last year, largely due to public company preparatory costs incurred for the first time in 2021, exchange movements foreign exchange and other costs. EBITDA adjusted from year to year until June 30, 2021 exceeded expectations by over $ 1 million and the same period last year by nearly $ 2 million.
“The sales momentum generated last year continues to result in revenue overruns this year, in both areas of business,” said KORE President and CEO Romil Bahl. “Organizations in all industries continue to adopt IoTs to address some of the biggest issues facing society today, including labor shortages, severe drought conditions where IoTs are being deployed immediately so municipalities can detect and mitigate leaks and water loss quickly, and remotely monitor patients, which is a segment of the Related Health market that exhibits high innovation and growth.Business KORE Connected Health benefited from the timely acceleration of a significant project with our client KORE is assisting this client with its critical mission migration to LTE connectivity, from 2G and 3G.We had predicted that this project would be heavily delivered in 2022, but it has moved forward to help further mitigate migration risks.I am pleased to confirm that even without this revenue acceleration in Q2, we would have easily exceeded our forecast expectations for t remujorin “.
Key metrics and recent business highlights
- Total customer connections ** increased to 13.2 million by June 30, 2021, from 10.2 million total connections as of June 30, 2020.
- The 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.
- The revenue mix – IoT Connectivity with IoT Solutions – continues to change and went from 73:27 in Q2 2020 to 71:29 in Q2, 2021, reflecting the accelerated growth of IoT Solutions.
- It continued to provide IoT connectivity services to 3,600 customers globally for the three-month period ended June 30, 2021, most of which are connection-only, representing a significant opportunity to sell additional services.
- At the Mobile World Congress 2021, held in late June in Barcelona, KORE and its client SwoopAero were selected as one of the leading “IoT for Influence” solutions presented to personalities including the King and Prime Minister of Spain and the President of Catalonia.
Bahl continued, “CTAC has announced that it will hold 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 that the KORE team is building a set of world-class capabilities that will enable a ‘connected planet’ over the next 10 to 15 years.The IoT decade has begun with a buzz for KORE, and we are confident that given our start to brilliantly in 2021, we will exceed our full-year revenue forecast. “