KORE Earnings Prediction
The chart below shows how KORE performed 10 days before and after its earnings report, based on data from the past quarters. Typically, KORE sees a +11.29% change in stock price 10 days leading up to the earnings, and a +4.43% change 10 days following the report. On the earnings day itself, the stock moves by -3.54%. This data can give you a slight idea of what to expect for the next quarter's release.
KORE Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
68.92M
0.42%
1.55%
Gross Margin
34.80%
3.05%
-2.41%
Operating Margin
-0.08%
-99.17%
-99.29%
Net Margin
-28.16%
-79.73%
-70.28%
EPS
-1.00
-81.82%
-94.05%
No Data Available
KORE Earnings Analysis
KORE Group Holdings, Inc. Corporation (KORE.N) Earnings Conference Call
Positive
Q3 Revenue Increase: Total revenue for the third quarter increased 0.4% year-over-year to $68.9 million.
IoT Connectivity Revenue Increase: IoT Connectivity revenue of $56.7 million increased 3% year-over-year and represented 82% of third quarter revenue, up from 80% in the prior year.
Connection Growth Metrics: Total connections at the end of the third quarter were 18.8 million, an increase of 100,000 year-over-year, and increased 300,000 from last quarter.
ARPU Increase Due to Data Usage: Average revenue per user per month (ARPU) for the current quarter was $1.01 compared to $0.98 in Q3 2023, reflecting higher data consumption from high-bandwidth use cases.
Operational Cash Increase: Cash provided by operations for the nine months ended September 30, 2024 was approximately $7.1 million, up from $4.5 million provided by operations in the prior year period.
Negative
Adjusted EBITDA Decline: Adjusted EBITDA was $13 million, down from $14.2 million in the same quarter last year, largely due to a $1.5 million reversal of performance-based compensation in Q3 of 2023.
Minimal Revenue Growth: Total revenue for the third quarter increased by only 0.4% year-over-year to $68.9 million, indicating minimal growth.
IoT Solutions Revenue Decline: IoT Solutions revenue declined by 9% year-over-year to $12.2 million, or 18% of third quarter revenue, reflecting a significant drop in this segment.
Operating Expenses Decrease: Operating expenses increased to $43.8 million, a decrease of $81.7 million or 65% compared to Q3 2023, primarily due to a non-cash goodwill impairment charge of $78.3 million in the prior year quarter.
Reduced Net Loss: Net loss in the third quarter was $19.4 million compared to $95.4 million in the prior year, indicating a substantial decrease in losses but still reflecting ongoing financial challenges.
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KORE Earning Call Sentiment
KORE Group Holdings, Inc. (KORE) Q3 2024 Earnings Call Transcript
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KORE.N
5.05%Positive
The earnings call highlights concerns such as competitive pressures, supply chain challenges, and increased interest expenses, leading to a downward revision in revenue and EBITDA guidance. Despite some positive aspects like improved cash flow and restructuring savings, the lack of a share repurchase program and unclear responses in the Q&A, particularly regarding liquidity and debt restructuring, contribute to a negative sentiment. The negative aspects outweigh the positives, predicting a stock price movement in the negative range over the next two weeks.
