KORE Group Holdings, Inc.

Greetings. Welcome to the Core Wireless Group's fourth quarter and full year 2021 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note, this conference is being recorded. I will now turn the conference over to your host, Vik Vijay Vigarya. Thank you. You may begin.

Thank you, operator. On today's call, we will be referring to the fourth quarter and full year 2021 earnings presentation that will be helpful to follow along, as well as the press release filed this afternoon that details the company's fourth quarter and full year 2021 results, both of which can be downloaded from the investor relations page at ir.corewireless.com. Finally, a recording of the call will be available on the investor section of the company's website later today. Please note that this webcast includes forward-looking statements, statements about the company's beliefs and expectations containing words such as may, will, could, believe, expect, anticipate, and similar expressions are forward-looking statements and are based on assumptions and beliefs as of today. The company encourages you to review the safe harbor statements, risk factors, and other disclaimers contained on this slide and today's press release, as well as in the company's filings with the Securities and Exchange Commission. which identifies specific risk factors that may cause actual results or events to differ materially from those described in our forward-looking statements. The company does not undertake to publicly update or revise any forward-looking statements after this webcast. The company also notes that on this call, it will be discussing non-GAAP financial information. The company is providing that information as a supplement to information prepared in accordance with accounting principles generally accepted in the United States, or GAAP GAAP. You can find a reconciliation of these metrics to the company's reported GAAP results in the reconciliation tables provided in today's earnings release and presentation. I'll now turn the call over to Romel Bell, the company's president and chief executive officer.

Thank you, Vic. Good afternoon, everyone, and thank you for joining us today for our fourth quarter and full year 2021 earnings call. My name is Romel Bell, and with me is Paul Holtz. I am pleased to announce, in case you missed our press release last week, that Paul, who just celebrated his five-year anniversary at Core and has been serving as interim CFO since November, has been named Core's EVP Chief Financial Officer and Treasurer. My congratulations to you, Paul, and I know our entire team looks forward to partnering with you on our exciting journey ahead. On to the objectives of our call today. First and foremost, we will provide an overview of our financial results for Q4 and full year 2021. I will provide a brief summary of our results, and then Paul will take you through additional detail later in the call. Second, we want to continue to help the market understand what we have built here at CORE. it is clear that as the first pure play IoT company in the public markets, we are not well understood. This is why on our last earnings call, I spent some time introducing the company and providing an overview of our services, our market and growth dynamics, our strategy and competitive positioning, and even shared a customer use case example. Today, I will elaborate on how we are well positioned to take advantage of our tremendous opportunity over the course of the next decade and beyond with world-class intellectual property, or IP. The deep dive topic for this quarter is hence our innovative technology stack and how we enable our customers to build the IoT building blocks that are fundamental to their success. We will then hold a Q&A session to round out the call. Let's look at our fourth quarter and full year 2021. And as summarized on slide four, we recorded strong revenue of $64.3 million. These results continue to be aided by a significant project with our largest customer, which will be substantially complete by the end of Q1 2022. Our full year revenue for 2021 was $248.2 million. up roughly 16% over 2020. Our adjusted EBITDA grew over $2 million 2021 over 2020, despite significant public company costs and increased people costs, which Paul will discuss further. And now let's look at our outlook for 2022. Adjusted EBITDA in the range of $63 to $64 million and revenue in the range of $260 to $265 million is the guidance we are providing today. We now confidently expect to exceed $508 million in revenue for the 2021-22 two-year stack period compared to the $457 million we forecast in our GO public model, which was comprised of $219 million in 2021 and $238 million in 2022. I should also note that this increased revenue expectation comes directly in the face of some of the strongest headwinds facing the industry. The sunsets of 2G and 3G networks are well documented and have impacted our business, as have supply chain constraints and some issues unique to core. Despite these challenges, we continue to deliver good growth even as 5G infrastructure is just beginning to take hold, further brightening our growth prospects over the decade of IoT ahead. It is now time to move into the deep dive topic of our earnings call, a quick overview of our powerful IP story. But let me start with a quick reminder of Core's growth strategy. When we say we are the world's only pure play IoT enabler, That means something specific to us. First, we attack the very complexities that have held back IoT. We help our customers deploy, manage, and scale their IoT solutions with a broad range of services spanning connectivity, solutions, and analytics. The enabler part refers to the fact that we do not deliver end solutions or applications to the end customer or end consumer or patient. Rather, we are a pure B2B company and we enable these business and enterprise customers to provide end solutions. So we are not asking our investors to make a particular bet on any one use case and how we will be the best at it against our competition. Instead, we grow with IoT in general and this is a huge growth market. From 12 billion IoT devices at the end of 2020, to $75 billion by 2030. $9 trillion in value by 2030 is the midpoint of McKinsey's analysis on the IoT market, updated just recently, in fact. And as a reminder of why IoT deployments are so complicated, here on slide six is our seven by seven deployment framework. The colors overlaid showcase how we function as the only pure play enabler of IoT, the one-stop shop. I do not intend to take you through this chart in any detail, but just want to point out that what we are doing is taking every step of this deployment lifecycle and making it more efficient, putting more intelligence into our software, into our platforms, making IoT easy to adopt. Not so much the first two steps, which consulting firms might be involved with, But starting at step three, which is connectivity. Steps four, five, six, which are the set of IoT managed services we have been building out more recently. And finally, step seven, which comprises analytics and represents a huge opportunity for our future. Our technology, our IP, is at the very heart of our value proposition. Without our IP, we cannot deliver our promise. For example, the multi, multi, multi IoT CAS offering doesn't get off the ground without a multi-tenant, multi-carrier, device agnostic and technology agnostic IoT platform. And many of our customers' applications and use cases don't get off the ground without our connectivity as a service. It is just too complicated. So in summary, across connectivity solutions and analytics, we continue to simplify IoT adoption by putting more intelligence into our software and platforms, and that is what I will showcase today. Our technology stack enables our customers with an easy way to assemble and configure the IoT building blocks they need to deploy their end solutions. IoT building blocks start with edge devices depicted at the bottom of this slide. and end with the data being delivered to the IoT applications depicted at the top. Each device needs one or multiple SIM cards. We believe these will increasingly be eSIMs and then iSIMs as companies understand the power of the EUICC standards. And our eSIM offering is branded Core OmniSIM in multiple versions, example OmniSIM Reach and OmniSIM Rush. These connectivity management services are delivered through the combination of three key technology stacks. First, our core one platform, which has seven open, modular, and scalable engines. The seven engines uniquely address the biggest IoT challenges, example data aggregation, data streaming and analytics, rating and billing, network intelligence using metadata, north and southbound integrations, and a robust API UI interface. Importantly, the Core One platform enables us to create services for our customers, but also enables our customers to build their own applications and services. These Core One engines help deliver the world's leading multi-multi-multi connectivity proposition. Multiple devices and technologies in multiple regions and countries in the world with multiple protocols. Second, our HyperCore and eSIM tech stack provides the cellular core network capabilities that enable us and our customers to drive connectivity offerings. Without our own core network, we would not be able to offer our creative multi-IMSI and eSIM global offerings. And further, with our core deployed on a licensed basis, our customers can take control of their own networks and global connectivity needs. And finally, our pre-configured solutions offer customers the ability to jumpstart their IoT journeys and reduce their time to market from an average of 18 to 24 months to 18 to 24 weeks, or even less, if they choose to use the core one-stop shop. These technology stacks are designed to comprehensively deliver world-class IoT technology services to our customers so they can create their own IoT solutions. The key IoT services we provide with our IP are depicted on the right side of the page. Our core IoT CAS offering, including our OmniSim offer, security and network intelligence services, which provide unprecedented visibility to edge devices, data management services that range from ensuring that data is coming off each customer device to transporting said data safely and securely, and in some instances, cleansing and transforming said data. And finally, industry-specific tech services for our connected health and fleet management customers, but also in the form of location-based services, which are becoming ubiquitous in their usage across industries. As shown on slide eight, Core simplifies the complexities involved in harnessing the IoT building blocks that enable customer IoT solutions. Indicated first on this slide are the four key IoT building blocks, hardware, connectivity, data processing, and support and manage services. So how do we help our customers harness these IoT building blocks into solutions? First, with the five services I just reviewed on the last slide. But then we go one step beyond in terms of helping our customers consume these services. We provide a developer ecosystem complete with a developer portal, APIs, and analytics. This self-service mode of consumption is critical to building our enterprise customer base of the future. And that leads to the real purpose of the journey, getting data to the customer applications and driving customer outcomes. As a part of enabling customer outcomes, we facilitate easy integration into other ecosystems such as AWS and Azure. We have and are investing in unique integration technologies that we jointly build with these hyperscaler partners. In a nutshell, our focus has been to build an ecosystem for enterprises and their developers to build their IoT solutions which lead to meaningful business outcomes. whether it is building a cloud-based patient monitoring service or a mobile app for pet tracking. Or it could be integrating the data into an ERP or other back office system to drive operational efficiencies. Bottom line, our IP simplifies the process at the edge so that our customers get to outcomes quickly and easily. When our partners at AWS say edge to outcome, this is what they mean. Slide 9 brings our deep dive to an end today by connecting the dots back to the different ways we enable our customers' IoT solutions. With all of our IP focused on making it easy to deploy IoT building blocks, Core is positioned to drive growth through the decade of IoT. In Core, our customers have a flexible, experienced partner, a company that has been involved in over 10,000 use cases over 20 years. a one-stop shop partner that can help with many parts of an IoT deployment. And now we are investing in pre-configured solutions. So not only can our customers get help from us across the seven steps we saw earlier, but in some use cases now, they can leverage pre-configured solutions built to solve the most difficult and most common challenges in those deployment journeys. Our industry-oriented approach to preconfigured solutions will continue to focus on the highest growth use cases in our focus verticals. Healthcare providers, for example, will be able to quickly deploy powerful connected health solutions. Companies in need of fleet management solutions can quickly harness the capabilities of our core fleet offerings. Final comment here. We believe that as we deploy preconfigured solutions at scale, we will improve the profitability of our IoT solutions business line. With that, I will now hand the call over to Paul to cover the financials in more detail.