Kldiscovery Inc. (KLDI) SEC Filing 10-K Annual Report for the fiscal year ending Saturday, December 31, 2022

Exhibit 99.1

KLDiscovery Inc. Announces Fourth Quarter 2022 Financial Results

Achieves Highest Revenue, Lowest Net Loss and

Highest Adjusted EBITDA in Company History in Fourth Quarter

EDEN PRAIRIE, MN —March 15, 2023 — KLDiscovery Inc. (“KLDiscovery” or the “Company”), a leading global provider of electronic discovery, information governance and data recovery technology solutions, announced today that revenue for the fourth quarter ended December 31, 2022 was $85.8 million versus $82.3 million in the fourth quarter of 2021. Net loss for the fourth quarter of 2022 was $(5.0) million compared to $(7.3) million in the fourth quarter of 2021.

EBITDA1 for the fourth quarter of 2022 was $18.3 million compared to $13.8 million in the fourth quarter of 2021. Adjusted EBITDA1 (which excludes stock-based compensation, acquisition financing and transaction costs and other items as described below) for the fourth quarter of 2022 was $20.4 million compared to $15.3 million in the fourth quarter of 2021, even including planned investments in research and development and sales and marketing.

“We delivered outstanding financial results in the fourth quarter of 2022, despite the challenging macroeconomic environment,” said Christopher Weiler, CEO of KLDiscovery Inc. “In the fourth quarter of 2022, we achieved our best revenue quarter ever with revenue of $85.8 million and our lowest quarter of net loss, which improved by 32% year-over-year year from $(7.3) million to $(5.0) million. We generated our highest ever quarterly EBITDA1 and Adjusted EBITDA1, both growing 33% year-over-year to $18.3 million and $20.4 million respectively. For the full year of 2022, our revenue was $317.4 million, which was slightly less than $320.5 million in 2021, however, when you consider the headwinds we experienced from a difficult macroenvironment, our revenue results in 2022 were an accomplishment punctuated by a record setting Q4. Additionally, in 2022 we continued our investments in technology and sales and marketing while still delivering impressive financial results.”

Mr. Weiler continued. “We achieved our highest quarter of revenue from our Nebula platform, up 23% over the fourth quarter of 2021, as the number of Nebula clients increased 33% year-over-year and the number of Nebula matters accelerated to 1,175. I am glad to see that our efforts throughout 2022 to seek operating efficiencies are contributing to our strong results. Our world-class customer service to our clients combined with our fully integrated technology offering is paying off as revenue acceleration continues into the beginning of 2023. Our Client Portal continues to receive positive customer feedback as we offer the industry’s only comprehensive dashboard with real time matter and portfolio intelligence.”

1 Non-GAAP measure. See “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below for additional information and a reconciliation to the most directly comparable GAAP measure.