Podcast: KORE Revenue Model Distinct Differentiator

Transcript

The KORE revenue model is a is a real competitive differentiator for us because of how much recurring revenue we have. And the kind of predictability we have in the business, there's really limited chances of surprises on the downside and, you know, surprising investors, which is what will make us such a high-quality public company in the first place. 2020 saw 91 plus percent recurring revenue as an example. And roughly, on average, the next three years, we have about 90% revenue visibility. And again, that's just an astounding set of numbers and set of stability for a leadership team to have, for us to have, and then of course, for investors to have if they choose to invest in core. So why is that? Why do we have a 91 plus percent recurring revenue model? Well, the simple truth of the matter is that when we deploy SIM cards and devices, as we help connect our customers deploy their end-to-end IoT solutions, we are near guaranteed to receive the revenue from that device for the lifetime of that device. And that lifetime, used to be about seven to 10 years, and it keeps getting longer as battery life battery technologies improve. As the time period of the of the lifecycle of the of the device increases, our stickiness is actually going to get longer. So one final explanation point of why that is the case, a truck roll as we call it in this industry to send a truck and a crew out there to change a SIM card can cost from $100 to as much as $200 per SIM change, based on whether you're trying to make an appointment in a home or, you know, wherever that changes to be made the complexity of the device that has to be taken apart to access the SIM card and so forth. And to save some 10, 20, 30 cents of RPU a month, you're just not going to spend $100 to $200 there is no business case for it, which is why we are, as I say, near guaranteed to get revenue from that device for the lifetime of that device. And again, today we count on seven to 10 years. But frankly, that's being conservative because that lifetime is increasing. So those are the things that make it you know, a true competitive differentiator for KORE is the revenue model, the recurring revenue and the strength of the business model, which actually is, as I come to an end of the answer I’ll add, over the pandemic, we beat our pre-pandemic budget by about 7%. Again, showing the resilience in the business model and the very high quality