KORE Group Holdings, Inc.

Greetings and welcome to the Core Group Holdings first quarter 2023 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 that this conference is being recorded. I will now turn the conference over to our host, Charlie Brady, Vice President, Investor Relations. Thank you. You may begin.

Thank you, operator. On today's call, we'll be referring to the first quarter 2023 earnings presentation that will be helpful to follow along with, as well as the press release filed this afternoon that details the company's first quarter 2023 results, both of which can be found on 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 identified 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 it will be discussing non-GAAP financial information on this call. 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. 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 Romo Bauer, the company's president and chief executive officer.

Thank you, Charlie. Good afternoon, everyone, and thank you for joining us today. for our first quarter 2023 earnings call. With me is Paul Holtz, Core's Chief Financial Officer. As always, I'll start with a brief overview of the key events and announcements from the first quarter, followed by Paul, who will discuss our financial results, and we will finish with a Q&A session. Slide four presents some key announcements from the first quarter, which I will briefly highlight. First, we are pleased to announce that Core OmniSIM Safe has been selected as a winner of the M2M Product of the Year by IoT Breakthrough. This recognition underscores our commitment to developing products that effectively address the unique challenges faced by our customers. Core OmniSIM pairs global zero-touch provisioning capabilities with our industry-leading eSIM, secured by the GSMA Safe Standards. This allows core customers to meet the challenges of global connectivity in a carrier and device agnostic secure manner for massive IoT use cases. Consistently being recognized as a leader in customer satisfaction and innovation is a testament to our commitment to meet and exceed customer expectations. This year marks the fourth year in a row that core has been named a leader by Gartner in its magic quadrant for IoT connectivity. This recognition highlights our unwavering dedication to understanding our customers' needs and creating cutting edge solutions that simplify the complexities of IoT and empower customers to achieve their goals. To further support our customers, we are excited to launch ModGo, a fast solution that provides comprehensive visibility and support for IoT device deployment and logistics management. ModGo makes it easy to manage, order, and deploy IoT on the go, providing organizations with a single solution for managing their entire IoT ecosystem. With ModGo, our customers can focus on their core business objectives while we take care of the complexities of IoT behind the scenes. Now, let's turn to our first quarter financial results and 2023 guidance on slide five. We had a solid start to 2023 with first quarter revenue coming in above our forecast, and as expected, increasing sequentially from the fourth quarter by approximately 6%. On a year-over-year basis, revenue declined approximately 4%, primarily due to a difficult comparison to the first quarter of 2022, which was the highest quarter of non-core customer and 2G, 3G revenue in 2022, and had significant revenue from the LTE transition project at our largest customer. Absent just the LTE transition project revenue in 2022, first quarter 2023 revenue increased approximately 9% year over year, which is at the upper end of our pre-Twilio revenue growth guidance of mid to high single digits. Our 2023 second quarter will be the last quarterly year-over-year comparison impacted by the LTE transition project revenue, and the impact will be substantially smaller. We expect sequential quarterly revenue growth for the remainder of 2023 and year-over-year growth beginning in the third quarter. Gross margin increased 518 basis points year-over-year to 54% as we continue to benefit from optimization of our carrier costs and the absence of lower margin LTE transition project volumes with our largest customer. First quarter 2023 adjusted EBITDA of $13.3 million declined 13% from the first quarter of 2022, and adjusted EBITDA margin was 20.2% compared to 22.2% in the year-ago quarter. First quarter 2023 adjusted EBITDA was impacted by increased headcount costs compared to the first quarter of 2022 and by temporarily higher than normal audit and accounting costs that we do not expect to repeat. We are reiterating the 2023 revenue and adjusted EBITDA guidance we provided on our 2022 fourth quarter earnings call just a few weeks ago. We expect revenue to grow in the mid-teens, resulting in our revenue guidance range of $300 to $310 million. This includes the partial year contribution from the acquisition of Twilio's IoT business, which remains on track for a June 1st closing. It also includes the $24 million impact from the 2G and 3G sunsets in the U.S. and the LTE transition project at our largest customer, which we are confident we can more than replace from growth in our base business and the addition of new customers. Our adjusted EBITDA guidance of $60 to $62 million and adjusted EBITDA margin of approximately 20% are also unchanged. With that, I will now hand the call over to Paul to cover the financials in more detail. Paul?