By Connor Hart
Shares of KORE Group Holdings jumped after the company said it completed its restructuring plan and posted higher-than-expected revenue in the third quarter.
The stock rose 28%, to $2.35, in after-hours trading Tuesday. Shares, which ended the regular session down 7.1% at $1.83, have fallen nearly 63% since the beginning of the year.
The company, which delivers internet-of-things solutions and services, narrowed its net loss to $19.4 million from $95.4 million in last year's quarter, which was hurt by a goodwill impairment.
Revenue edged 0.4% higher to $68.9 million, ahead of the $68 million that analysts surveyed by FactSet expected.
Connectivity revenue increased 3% to $56.7 million, driven by organic growth. This gain offset solutions revenue, which fell 9% to $12.2 million, primarily due to the decision to wind down the company's lower-margin hardware business, it said.
Chief Executive Ron Totton said the company during the quarter completed its restructuring plan, which included cost reductions, leadership realignments and operational improvements.
"These initiatives have enabled investments in our growth priorities and are already delivering traction in connectivity growth and a better customer experience," he said.
KORE narrowed its outlook for the year, now expecting revenue between $280 million and $285 million, as well as adjusted earnings between interest, taxes, depreciation and amortization between $54 million and $55 million. During its second-quarter report, the company lowered its revenue outlook to between $275 million and $285 million, as well as its adjusted Ebitda forecast to between $54 million and $56 million.
Analysts are expecting revenue of $280.9 million and adjusted Ebitda of $55.1 million, according to FactSet.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
November 19, 2024 18:38 ET (23:38 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
Comments