KORE Group Holdings, Inc.

Hello and welcome to the Core Group Holdings 4th Quarter 2023 Earnings Call and Webcast. As a reminder, this conference is being recorded. It is now my pleasure to turn the call over to David Freund, Manager M&A. Please go ahead, David.

Thank you, Operator. On today's call, we will refer to the 4th Quarter 2023 earnings presentation, which will be helpful to follow along with, as well as the press release filed this morning that details the company's 4th Quarter 2023 results. Both of these can be found on our investor relations page at ir.corewireless.com. Finally, a recording of the call will be available in the investor section of the company's website later today. The company encourages you to review the safe harbor statement, risk factors, and other disclaimers contained on this slide and today's press release, as well as in the company's filings with the Security and Exchange Commission, which identify specific risk factors that may cause actual results or events that do differ materially from those described in our four looking statements. The company does not undertake to publicly update or revise any forward-looking statement 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 their reconciliation tables provided in today's earnings release and presentation. I'll now turn the call over to Amol Bell, the company's president and chief executive officer.

Thank you, David. Good morning, everyone. Thank you for joining us for our fourth quarter and full year 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 for the fourth quarter. Paul will then review our financial results, And then we will review our sales pipeline, key wins, and a summary of how we view the year ahead. We will finish with a Q&A session. Slide four presents some key announcements from the fourth quarter. First, we launched a pioneering eSIM-powered medical alert device in collaboration with Medical Guardian. This device is designed to facilitate active aging as defined by the World Health Organization. This revolutionary technology overcomes the challenges of limited carrier flexibility and coverage, enabling network switching to optimize connectivity across different regions and operational phases and enabling optimal 24 by 7 connectivity. This medical alert device leverages CORE's industry-leading connectivity services. CORE's eSIM optimizes opportunities for health, participation, and security for aging adults, enabling end users to age with dignity. This innovation shows how revolutionary IoT is in addressing some of society's most daunting obstacles, in this case, an aging global population, and how IoT can enable a better world. IoT for good, as our purpose statement says here at CORE. We continue to receive recognition from numerous industry analysts and publications for our in-class connectivity products. For instance, Gartner recognized Core as a managed IoT connectivity services worldwide leader for the fifth consecutive year. Core's CAS offerings, including SuperSim, also received the 2023 IoT Excellence Award from TMC and Crossfire Media. This recognition cements our unwavering reputation for understanding our customers' needs and creating cutting-edge solutions that simplify the complexities of IoT and empower our customers to achieve their goals. The Gartner Magic Quadrant leadership is especially encouraging since we improved our position in the leaders' quadrant, even as large, well-known carriers and competitors dropped out. And also, on the vision and strategy dimension, CORE is now firmly among the top three providers globally. As evidence of our industry-leading strategy, and specifically with respect to our investments in pre-configured solutions, in the first quarter of 2024, we landed our first major connected health telemetry solution, or CHTS, pre-configured solution win. This $26 million TCV achievement will have CORE supporting global home respiratory therapy to over 65,000 patients. The solution involves managing the capture, secure transmission, and delivery of home ventilator and oxygen concentrator data telemetry to the patient's care team. This customer will utilize CORE's CHTS gateway device management and configuration cloud platform, and the CHTS temporary data repository cloud service. The customer will map their existing patient engagement and support workflows to CORE's CHTS cloud to enable the care delivery teams to configure, install, and monitor their home respiratory therapy for thousands of ventilators and oxygen concentrators. This win demonstrates CORE's ability to streamline the IoT deployment of a complex medical device with our integrated, secure, and regulatorily compliant cellular connectivity and data routing infrastructure. These capabilities enable continuous healthcare monitoring from the comfort of patients' homes, significantly improving patient outcomes and comfort. Now let's look at our fourth quarter financial results on slide five. Core's fourth quarter revenue of $72.4 million increased 16% year over year, driven by an acceleration in high-margin IoT connectivity, which was up 27% year over year. A decline in low-margin IoT solutions revenue partially offset this growth in IoT connectivity. While double-digit top-line growth in Q4 is impressive, we should note that these results were below our expectations due to additional unexpected customer order deferrals in Q4, including those from our largest customer. While these deferrals impacted both IoT connectivity and IoT solutions, solutions experienced the greater impact due to customer managing year-end inventory levels and further delays in remote patient monitoring and clinical drug trial deployments. Reiterating what we said last quarter, these orders and customers have not been lost. We fully expect to continue to serve these customers in 2024 and beyond. That said, during our 2024 business planning process and partially in response to the lumpy characteristics of hardware revenue in our maturing IoT solutions business line, we have decided as a company to reduce our exposure to low margin hardware revenue. Going forward, we will only accept hardware orders that are essential to winning a customer contract. This decision resulted in a reduction in our TCB pipeline and obviously a lower projection of IoT solutions revenue in 2024. However, this marginal short-term headwind is more than offset by the increased predictability, visibility, and profitability improvement that shrinking our reliance on hardware will deliver in 2024 and into the future. Further, we expect growing momentum in Core's IoT connectivity business to more than offset any one-time headwinds resulting from this decision. On this point, before handing the call to Paul to cover the financials in more detail, I wanted to touch on our outlook for 2024. At a high level, with 2G, 3G sunsets and the worst of macro uncertainty behind us, we expect a re-acceleration in our high-margin IoT connectivity business to be Core's primary growth driver in 2024. This growth will offset a decline in low-margin IoT solutions revenue and drive year-over-year revenue growth and, more substantially, exciting double-digit growth in adjusted EBITDA. Overall, we expect 2024 revenue to be between $300 and $305 million, with adjusted EBITDA between 64 and 66 million. I will provide more color on our 2024 outlook later in the call. But with that said, Paul, over to you.