Kerlink, a provider of IoT solutions, has updated its outlook for 2024. In a market experiencing growth due to private network rollouts, Kerlink offers tailored solutions for companies and local authorities, focusing on energy transition, digitalisation of assets and processes, and operational efficiency and simplicity. Kerlink is optimistic about 2024, aiming for revenue growth of approximately 20% and a positive EBITDA. This positive outlook is a result of a business expansion strategy initiated in the second half of 2023, leveraging its strengths: innovative, high-performance, and secure solutions, productive collaboration within its ecosystem, and reinforcement of its status as a technological innovation leader.
Industrial-grade equipment with unparalleled security features in the market: Kerlink gateways, distinguished by their SecureBoot and SecureStorage features, are among the most advanced in the market. Additionally, Kerlink fully controls the security certificates for its marketed gateways (PKI), making these solutions a choice for many groups where security is paramount (e.g., mobile operators). Kerlink consistently produces carrier-grade gateways following the Group’s ISO processes. These are industrialised in France, certified in over 75 countries, and come with a lifetime guarantee. Their failure rate is below 0.1%. Following the challenging years of “Covid” and shortages in electronic components in 2022, the Group has bolstered its supply chain, ensuring the ability to meet customer demands to the highest standards.
A strategic approach to collaboration with other notable players in the ecosystem to increase business: Recently, Kerlink ensured its gateways are compatible with offers from leading LoRa Network Server (LNS) suppliers. The strategic shift to work alongside these suppliers, rather than in competition, has opened new commercial opportunities for Kerlink, allowing it to offer LNS solutions perfectly suited to the customer’s needs while efficiently managing the network on their behalf.
Redesigned offers to meet the diverse needs of those involved in IoT network deployment projects: As announced in 2023, Kerlink has focused on its core IoT business: designing, implementing, maintaining, and operating IoT products for specific business needs. The company has refreshed its sales catalogue to better align with the diverse deployment needs and companies looking to deploy networks. Kerlink’s offerings now include:
- Access: Providing customers with life-guaranteed gateways.
- Maintain: Offering added-on equipment maintenance and network management services, giving customers access to an advanced monitoring and administration platform.
- Operate: Kerlink’s most comprehensive service, managing the entire network on behalf of businesses, offering dedicated experts and a tailored LNS offering.
The offers’ implementation was strengthened by a business model overhaul, leading to more competitive and stable pricing for Kerlink’s customers, fostering long-term relationships. Customer feedback is overwhelmingly positive: Kerlink’s gateways and services are highly valued for their quality and security.
An expanding Internet of Things market in the verticals: According to Research and Markets, the LoRa market was valued at approximately $5.6 billion in 2023, with an expected growth to $25.5 billion by 2028, driven largely by private network rollouts. Kerlink, a pioneer in this space, has effectively positioned LoRaWAN technology as complementary to cellular technologies, catering to efficient and economical use cases and driving traffic to cellular networks. IoT solutions are addressing the energy transition by digitising assets and processes for companies and local authorities. The vertical markets Kerlink sees as most dynamic for 2024 include Smart Cities, Smart Industry, Smart Agriculture, and Smart Buildings, with the capacity to manage both emerging business needs and large-scale rollouts involving thousands of gateways. Kerlink’s commercial strategy has led to the signing or negotiation of numerous projects, with the order pipeline for 2024 growing by more than 20%.
A leader in technological innovation: Kerlink, known for its innovation, has introduced several new solutions to meet connectivity needs in vertical markets, including the first plug & play gateways with “zero-touch provisioning” and the integration of EDGE technology for efficient data processing. The Group is also preparing to launch a satellite IoT offering, targeting emerging connectivity needs with low Earth orbit satellite constellations for inter-regional tracking and local LoRaWAN networks in restricted environments.
Targets for sustained growth and positive EBITDA: The early results of Kerlink’s business expansion strategy are promising, with new project positions, an increase in consultations and detected opportunities, and a well-filled order book. These factors, combined with an adjusted expense structure in 2023, set Kerlink on course for around 20% revenue growth in 2024 and a positive EBITDA, reaffirming its key role in the IoT space and company transformation processes.
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