ATLANTA – KORE Group Holdings, Inc. (NYSE:KORE), a global provider in communication services, has announced a reverse stock split of its common stock, which is set to take effect at the start of next month. The move, approved by the company's Board of Directors following a green light from stockholders earlier this month, aims to reclassify every five shares into one.
The reverse stock split, which will commence at 12:01 a.m. Eastern Time on July 1, 2024, was approved by shareholders at the Annual Meeting on June 12, 2024, and subsequently by the Board on June 20, 2024, at a ratio of 1-for-5. This action is part of an amendment to the company's Amended and Restated Certificate of Incorporation, as detailed in a filing with the Securities and Exchange Commission.
This news comes from a recent SEC filing by the company and represents a significant change for stockholders and potential investors. The information provided is based on statements made by KORE Group Holdings, Inc. in their regulatory filings.
In other recent news, KORE Group Holdings has reported significant growth in its Q1 2024 earnings and revenue. The company's revenue surged to $76 million, a 15.2% increase from the previous year, largely due to a 33% increase in IoT connectivity revenue, which reached $57.9 million. On the other hand, IoT Solutions revenue saw a 19% decline, settling at $18.1 million. Despite this, KORE managed to narrow its net loss to $17.6 million.
In addition to these financial results, KORE highlighted a robust global sales pipeline, featuring nearly 1200 opportunities with a potential total contract value of $422 million. The company is also expecting double-digit organic growth, supplemented by growth from the Twilio (NYSE:TWLO) IoT acquisition.
The company, however, noted an increase in operating expenses by $4.8 million, primarily due to costs associated with the Twilio IoT acquisition and higher borrowing costs. Aiming to be cash flow positive by the end of the year, KORE is focusing on high bandwidth deals for future growth, particularly in the healthcare and fleet sectors.
These are the recent developments in KORE Group Holdings.
InvestingPro Insights
As KORE Group Holdings, Inc. (NYSE:KORE) navigates through its strategic initiatives, including the recent reverse stock split, the company's financial health and market performance remain a focal point for investors. Here are some InvestingPro Insights that may shed light on the company's current situation:
InvestingPro Tips:
- KORE operates with a significant debt burden, which is an important consideration for investors given the company's aim to be cash flow positive by the end of the year.
- The management's aggressive share buyback activity suggests confidence in the company's future, which could be a positive signal to investors.
InvestingPro Data:
- Market Cap (Adjusted): The company's market capitalization stands at $44.51 million, reflecting the market's current valuation of the company.
- P/E Ratio (Adjusted) Last Twelve Months as of Q1 2024: KORE's P/E ratio is -0.37, indicating that the company is not currently profitable.
- Revenue Growth (Quarterly) Q1 2024: The company has reported a revenue growth of 15.16%, aligning with the reported increase in IoT connectivity revenue.
These insights, along with additional tips that can be found on InvestingPro, may help investors to better understand the potential risks and opportunities associated with KORE Group Holdings. For a deeper analysis, visit https://www.investing.com/pro/KORE and remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 17 additional InvestingPro Tips available for KORE, offering a comprehensive outlook on the company's financial health and stock performance.
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