- First quarter revenues of $47.8 million, according to prior steering
- First quarter GAAP internet lack of $18.9 million; non-GAAP internet lack of $13.4 million
- MAX upgrades drive sturdy quarter for Providers
- Double-digit year-over-year impressions progress from a number of strategic clients
- New Atlas MAX Poly and Direct-to-Material clients added in key textile areas
- Set to showcase new break-through options at June ITMA tradeshow in Milan, Italy
ROSH-HA`AYIN, Israel, Might 10, 2023 (GLOBE NEWSWIRE) — Kornit Digital Ltd. (“Kornit” or “the Firm”) (Nasdaq: KRNT), a worldwide market chief in sustainable, on-demand, digital style
X
and textile manufacturing applied sciences, reported at the moment its outcomes for the primary quarter ended March 31, 2023.
“Promising indicators emerged through the first quarter in sure elements of our enterprise, regardless of the persistent macroeconomic pressures,” mentioned Ronen Samuel, Kornit’s Chief Government Officer. “These indicators included the double-digit year-over-year impressions progress from a number of of our bigger direct-to-garment (DTG) strategic accounts within the personalized design market, and the continued adoption of our MAX expertise. Whereas capability utilization continues to be not optimum, we see immense alternatives unfolding with main demand producing platforms and count on this market to renew progress as general macro circumstances enhance.”
Mr. Samuel continued, “With our MAX expertise because the cornerstone, we’ve been steadily gaining momentum on our technique in focusing on manufacturers, retailers, and their world fulfillers, all of whom will tremendously profit from Kornit’s sustainable on-demand digital options, as a substitute of present analog manufacturing. We had a powerful quarter for Atlas MAX Poly, and continued to strengthen our market-leading place in direct-to-fabric (DTF) with Presto MAX. The progress made within the first quarter affords extra proof factors that our MAX expertise is changing into the business commonplace and a very good resolution that provides prime retail high quality output, elevated productiveness, higher value efficiencies, and new product capabilities and choices.”
Mr. Samuel concluded, “We’re excited to attend the upcoming ITMA tradeshow in Milan, the place we are going to show how
digital manufacturing goes mainstream with sustainable on-demand manufacturing at scale.
We’ll showcase a various vary of recent cutting-edge DTF and DTG options, together with unveiling our extremely anticipated Apollo, which is able to revolutionize markets historically served by analog. These new methods and options considerably prolong the breadth of print purposes and supply ranges of automation by no means earlier than seen in any of the markets we serve.”
First Quarter 2023 Outcomes of Operations
- Complete income for the primary quarter of 2023 was $47.8 million in contrast with $83.3 million within the prior 12 months interval, primarily as a consequence of anticipated decrease methods revenues.
- GAAP gross revenue margin for the primary quarter of 2023 was 27.4% in contrast with 40.1% within the prior 12 months interval. On a non-GAAP foundation, gross revenue margin was 30.2% in contrast with 41.5% within the prior 12 months interval.
- GAAP working bills for the primary quarter of 2023 decreased by 7.7% to $37.2 million in contrast with the prior 12 months interval. On a non-GAAP foundation, working bills additionally decreased by 8.0% to $32.4 million in contrast with the prior 12 months interval.
- GAAP internet loss for the primary quarter of 2023 was $18.9 million, or ($0.38) per primary share, in contrast with internet lack of $5.2 million, or ($0.10) per primary share, for the primary quarter of 2022.
- Non-GAAP internet loss for the primary quarter of 2023 was $13.4 million, or ($0.27) per primary share, in contrast with non-GAAP internet revenue of $0.2 million, or $0.00 per diluted share, for the primary quarter of 2022.
-
Adjusted EBITDA loss for the primary quarter of 2023 was $14.7 million in contrast with adjusted EBITDA of $1.5 million for the primary quarter of 2022. Adjusted EBITDA margin for the primary quarter of 2023 was -30.8% in contrast with 1.8% for the primary quarter of 2022.
Second Quarter 2023 Steerage
For the second quarter of 2023, the Firm expects revenues to be within the vary of $54 million to $59 million and adjusted EBITDA margin between -19% to -27% of income. The steering for income and adjusted EBITDA margin
contains
the impression of the non-cash expense related to the honest worth of the Firm’s warrants.
First Quarter Earnings Convention Name Info
The Firm will host a convention name at the moment at 8:30 a.m. ET, or 3:30 p.m. Israel time, to debate the outcomes, adopted by a question-and-answer session with the investor group.
A dwell webcast of the decision
will be accessed at
ir.kornit.com
. To entry the decision, individuals could dial toll-free at 1-888-886-7786 or 1-416-764-8658. The toll-free Israeli quantity is 1 809 468 221. The convention affirmation code is 79530398.
To take heed to a replay of the convention name, dial toll-free 1-844-512-2921 or 1-412-317-6671 (worldwide) and enter affirmation code 79530398. The telephonic replay can be accessible roughly three hours after the completion of the dwell name till 11:59 pm ET on Wednesday, Might 24, 2023. The decision may even be accessible for replay through the webcast hyperlink on Kornit’s Investor Relations web site.
About Kornit Digital
Kornit Digital Ltd. (NASDAQ: KRNT) is a worldwide market chief in sustainable, on-demand, digital style
x
and textile manufacturing applied sciences. The Firm is writing the working system for style with end-to-end options together with digital printing methods, inks, consumables, and a complete world ecosystem that manages workflows and achievement. Headquartered in Israel with places of work within the USA, Europe, and Asia Pacific, Kornit serves clients in a couple of hundred international locations and states worldwide. To be taught extra about how Kornit Digital is boldly reworking the world of style and textiles, go to
www.kornit.com
.
Ahead Trying Statements
Sure statements on this press launch are “forward-looking statements” throughout the which means of the Non-public Securities Litigation Reform Act of 1995 and different U.S. securities legal guidelines. Ahead-looking statements are characterised by means of forward-looking terminology akin to “will,” “expects,” “anticipates,” “proceed,” “believes,” “ought to,” “meant,” “steering,” “preliminary,” “future,” “deliberate,” or different phrases. These forward-looking statements embody, however will not be restricted to, statements regarding the Firm’s targets, plans and techniques, statements of preliminary or projected outcomes of operations or of monetary situation and all statements that handle actions, occasions, or developments that the Firm intends, expects, initiatives, believes or anticipates will or could happen sooner or later. Ahead-looking statements will not be ensures of future efficiency and are topic to dangers and uncertainties. The Firm has based mostly these forward-looking statements on assumptions and assessments made by its administration in gentle of their expertise and their notion of historic tendencies, present circumstances, anticipated future developments and different elements they imagine to be applicable. Necessary elements that would trigger precise outcomes, developments and enterprise choices to vary materially from these anticipated in these forward-looking statements embody, amongst different issues: the length and severity of present hostile macro-economic headwinds being brought on by supply-chain delays, inflationary pressures, and rising rates of interest, which have been impacting, and should proceed to impression, in an hostile method, the Firm’s operations, monetary place and money flows, partly because of the hostile impression on the Firm’s clients and suppliers; the Firm’s diploma of success in growing, introducing and promoting new or improved merchandise and product enhancements together with particularly the Firm’s Poly Professional and Presto merchandise; the extent of the Firm’s capability to consummate gross sales to giant accounts with multi-system supply plans; the diploma of the Firm’s capability to fill orders for its methods; the extent of the Firm’s capability to extend gross sales of its methods, ink and consumables; the extent of the Firm’s capability to leverage its world infrastructure build-out; the event of the marketplace for digital textile printing; the supply of different ink; competitors; gross sales focus; adjustments to the Firm’s relationships with suppliers; the extent of the Firm’s success in advertising; and people extra elements referred to underneath “Danger Elements” in Merchandise 3.D of the Firm’s Annual Report on Type 20-F for the 12 months ended December 31, 2022, filed with the SEC on March 30, 2023. Any forward-looking statements on this press launch are made as of the date hereof, whether or not because of new info, future occasions or in any other case, besides as required by legislation.
Non-GAAP Dialogue Disclosure
The Firm presents sure non-GAAP monetary measures, on this press launch and within the accompanying convention name to debate the Firm’s quarterly outcomes. These non-GAAP monetary measures replicate changes to corresponding GAAP monetary measures with the intention to exclude the impression of the next: share-based compensation bills; amortization of intangible belongings; acquisition associated bills; restructuring bills; international change variations related to ASC 842; and non-cash deferred tax revenue.
The Firm defines “Adjusted EBITDA” as non-GAAP working revenue (loss), which displays the changes described within the previous paragraph, as additional adjusted to exclude depreciation expense.
The aim of the foregoing non-GAAP monetary measures is to convey the Firm’s efficiency unique of non-cash expenses and different gadgets which might be thought of by administration to be exterior of the Firm’s core working outcomes. These non-GAAP measures are among the many main elements administration makes use of in planning for and forecasting future durations. Moreover, the non-GAAP measures are often used internally to know, handle, and consider the Firm’s enterprise and make working choices, and the Firm believes that they’re helpful to traders as a constant and comparable measure of the continuing efficiency of the Firm’s enterprise. The Firm’s non-GAAP monetary measures will not be meant to be thought of in isolation or as an alternative to comparable GAAP measures and ought to be learn solely along with the Firm’s consolidated monetary statements ready in accordance with GAAP. Moreover, these non-GAAP monetary measures could differ materially from the non-GAAP monetary measures utilized by different firms.
The reconciliation tables included beneath current a reconciliation of our non-GAAP monetary measures to essentially the most instantly comparable GAAP monetary measures.
Investor Contact:
Andrew G. Backman
International Head of Investor Relations
[email protected]
KORNIT DIGITAL LTD. |
|||||||
AND ITS SUBSIDIARIES |
|||||||
CONSOLIDATED BALANCE SHEETS |
|||||||
(U.S. {dollars} in hundreds) |
|||||||
March 31, |
December 31, |
||||||
2023 |
2022 |
||||||
(Unaudited) |
(Audited) |
||||||
ASSETS |
|||||||
CURRENT ASSETS: | |||||||
Money and money equivalents | $ | 352,950 | $ | 104,597 | |||
Brief-term financial institution deposit | 101 | 275,033 | |||||
Marketable securities | 25,948 | 20,380 | |||||
Commerce receivables, internet | 72,968 | 67,360 | |||||
Stock | 92,727 | 89,415 | |||||
Different accounts receivable and pay as you go bills | 21,138 | 22,054 | |||||
Complete present belongings | 565,832 | 578,839 | |||||
LONG-TERM ASSETS: | |||||||
Marketable securities | 244,946 | 245,970 | |||||
Deposits and different long-term belongings | 6,954 | 5,927 | |||||
Severance pay fund | 301 | 274 | |||||
Property, plant and gear, internet | 58,717 | 60,463 | |||||
Working lease right-of-use belongings | 31,910 | 27,139 | |||||
Intangible belongings, internet | 9,233 | 9,890 | |||||
Goodwill | 29,164 | 29,164 | |||||
Complete long-term belongings | 381,225 | 378,827 | |||||
Complete belongings |
947,057 | 957,666 | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|||||||
CURRENT LIABILITIES: | |||||||
Commerce payables | 11,837 | 14,833 | |||||
Workers and payroll accruals | 14,857 | 14,255 | |||||
Deferred revenues and advances from clients | 4,663 | 5,701 | |||||
Working lease liabilities | 4,975 | 4,989 | |||||
Different payables and accrued bills | 30,127 | 25,592 | |||||
Complete present liabilities | 66,459 | 65,370 | |||||
LONG-TERM LIABILITIES: | |||||||
Accrued severance pay | 1,349 | 1,223 | |||||
Working lease liabilities | 25,363 | 21,035 | |||||
Different long-term liabilities | 856 | 1,216 | |||||
Complete long-term liabilities | 27,568 | 23,474 | |||||
SHAREHOLDERS’ EQUITY | 853,030 | 868,822 | |||||
Complete liabilities and shareholders’ fairness |
$ | 947,057 | $ | 957,666 | |||
KORNIT DIGITAL LTD. |
|||||||
AND ITS SUBSIDIARIES |
|||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||
(U.S. {dollars} in hundreds, besides share and per share knowledge) | |||||||
Three Months Ended |
|||||||
March 31, |
|||||||
2023 |
2022 |
||||||
(Unaudited) |
|||||||
Revenues | |||||||
Merchandise | $ | 31,903 | $ | 72,514 | |||
Providers | 15,875 | 10,779 | |||||
Complete revenues | 47,778 | 83,293 | |||||
Value of revenues | |||||||
Merchandise | 20,379 | 39,237 | |||||
Providers | 14,327 | 10,654 | |||||
Complete value of revenues | 34,706 | 49,891 | |||||
Gross revenue | 13,072 | 33,402 | |||||
Working bills: | |||||||
Analysis and improvement, internet | 13,082 | 14,010 | |||||
Gross sales and advertising | 15,183 | 16,531 | |||||
Basic and administrative | 8,948 | 9,766 | |||||
Complete working bills |
37,213 | 40,307 | |||||
Working loss | (24,141 | ) | (6,905 | ) | |||
Monetary revenue, internet | 5,404 | 1,799 | |||||
Loss earlier than taxes on revenue | (18,737 | ) | (5,106 | ) | |||
Taxes on revenue | 194 | 91 | |||||
Internet loss | $ | (18,931 | ) | $ | (5,197 | ) | |
Fundamental loss per share | $ | (0.38 | ) | $ | (0.10 | ) | |
Weighted common variety of shares | |||||||
utilized in computing primary internet loss per share | 49,887,982 | 49,658,028 | |||||
Diluted internet loss per share | $ | (0.38 | ) | $ | (0.10 | ) | |
Weighted common variety of shares | |||||||
utilized in computing diluted internet loss per share | 49,887,982 | 49,658,028 | |||||
KORNIT DIGITAL LTD. |
|||||||||
AND ITS SUBSIDIARIES |
|||||||||
RECONCILIATION OF GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||
(U.S. {dollars} in hundreds, besides share and per share knowledge) | |||||||||
Three Months Ended |
|||||||||
March 31, |
|||||||||
2023 |
2022 |
||||||||
(Unaudited) |
|||||||||
Revenues | $ | 47,778 | $ | 83,293 | |||||
GAAP value of revenues | $ | 34,706 | $ | 49,891 | |||||
Value of product recorded for share-based compensation (1) | (507 | ) | (449 | ) | |||||
Value of service recorded for share-based compensation (1) | (351 | ) | (385 | ) | |||||
Intangible belongings amortization on value of product (3) | (263 | ) | (173 | ) | |||||
Intangible belongings amortization on value of service (3) | (160 | ) | (160 | ) | |||||
Restructuring bills (4) | (89 | ) | – | ||||||
Non-GAAP value of revenues | $ | 33,336 | $ | 48,724 | |||||
GAAP gross revenue | $ | 13,072 | $ | 33,402 | |||||
Gross revenue changes | 1,370 | 1,167 | |||||||
Non-GAAP gross revenue | $ | 14,442 | $ | 34,569 | |||||
GAAP working bills | $ | 37,213 | $ | 40,307 | |||||
Share-based compensation (1) | (4,387 | ) | (4,464 | ) | |||||
Acquisition associated bills (2) | – | (512 | ) | ||||||
Intangible belongings amortization (3) | (188 | ) | (86 | ) | |||||
Restructuring bills (4) | (206 | ) | – | ||||||
Non-GAAP working bills | $ | 32,432 | $ | 35,245 | |||||
GAAP Monetary revenue, internet | $ | 5,404 | $ | 1,799 | |||||
International change variations related to ASC 842 | (376 | ) | (649 | ) | |||||
Non-GAAP Monetary revenue , internet | $ | 5,028 | $ | 1,150 | |||||
GAAP Taxes on revenue | $ | 194 | $ | 91 | |||||
Non-cash deferred tax revenue | 221 | 217 | |||||||
Non-GAAP Taxes on revenue | $ | 415 | $ | 308 | |||||
GAAP internet loss | $ | (18,931 | ) | $ | (5,197 | ) | |||
Share-based compensation (1) | 5,245 | 5,298 | |||||||
Acquisition associated bills (2) | – | 512 | |||||||
Intangible belongings amortization (3) | 611 | 419 | |||||||
Restructuring bills (4) | 295 | – | |||||||
International change variations related to ASC 842 | (376 | ) | (649 | ) | |||||
Non-cash deferred tax revenue | (221 | ) | (217 | ) | |||||
Non-GAAP internet revenue (Loss) | $ | (13,377 | ) | $ | 166 | ||||
GAAP diluted loss per share | $ | (0.38 | ) | $ | (0.10 | ) | |||
Non-GAAP diluted earnings (loss) per share | $ | (0.27 | ) | $ | 0.00 | ||||
Weighted common variety of shares | |||||||||
Shares utilized in computing GAAP diluted internet loss per share | 49,887,982 | 49,658,028 | |||||||
Shares utilized in computing Non-GAAP diluted internet earnings (loss) per share | 49,887,982 | 50,955,776 | |||||||
(1) Share-based compensation | |||||||||
Value of product revenues | $ | 507 | $ | 449 | |||||
Value of service revenues | 351 | 385 | |||||||
Analysis and improvement | 1,351 | 1,189 | |||||||
Gross sales and advertising | 1,363 | 1,809 | |||||||
Basic and administrative | 1,673 | 1,466 | |||||||
$ | 5,245 | $ | 5,298 | ||||||
(2) Acquisition associated bills | |||||||||
Basic and administrative | $ | – | $ | 512 | |||||
$ | – | $ | 512 | ||||||
(3) Intangible belongings amortization | |||||||||
Value of product revenues | $ | 263 | $ | 173 | |||||
Value of service revenues | 160 | 160 | |||||||
Gross sales and advertising | 188 | 86 | |||||||
$ | 611 | $ | 419 | ||||||
(4) Restructuring bills | |||||||||
Value of product revenues | $ | 89 | $ | – | |||||
Analysis and improvement | 20 | – | |||||||
Gross sales and advertising | 186 | – | |||||||
$ | 295 | $ | – | ||||||
KORNIT DIGITAL LTD. |
||||||||
AND ITS SUBSIDIARIES |
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(U.S. {dollars} in hundreds) |
||||||||
Three Months Ended |
||||||||
March 31, |
||||||||
2023 |
2022 |
|||||||
(Unaudited) |
||||||||
Money flows from working actions: |
||||||||
Internet loss | $ | (18,931 | ) | $ | (5,197 | ) | ||
Changes to reconcile internet loss to internet money utilized in working actions: | ||||||||
Depreciation and amortization | 3,873 | 2,580 | ||||||
Truthful worth of warrants deducted from revenues | 2,344 | 8,005 | ||||||
Share-based compensation | 5,245 | 5,298 | ||||||
Amortization of premium and accretion of low cost on marketable securities, internet | 323 | 528 | ||||||
Realized loss on sale and redemption of marketable securities | 40 | 3 | ||||||
Change in working belongings and liabilities: |
||||||||
Commerce receivables, internet | (5,608 | ) | (31,193 | ) | ||||
Different accounts receivables and pay as you go bills | 916 | (2,464 | ) | |||||
Stock | (3,023 | ) | (9,036 | ) | ||||
Working leases right-of-use belongings and liabilities, internet | (457 | ) | (408 | ) | ||||
Deferred taxes | – | (305 | ) | |||||
Deposits and different long run belongings | (1,027 | ) | 6 | |||||
Commerce payables | (1,477 | ) | (7,444 | ) | ||||
Workers and payroll accruals | 737 | (6,470 | ) | |||||
Deferred revenues and advances from clients | (1,038 | ) | (1,471 | ) | ||||
Different payables and accrued bills | 4,340 | 359 | ||||||
Accrued severance pay, internet | 99 | (189 | ) | |||||
Different long-term liabilities | (360 | ) | 316 | |||||
Internet money utilized in working actions | $ | (14,004 | ) | $ | (47,082 | ) | ||
Money flows from investing actions: |
||||||||
Buy of property, plant and gear | $ | (3,278 | ) | $ | (7,462 | ) | ||
Proceeds from (funding in) short-term financial institution deposits, internet | 274,932 | (410,985 | ) | |||||
Proceeds from gross sales and redemption of marketable securities | 4,000 | 445 | ||||||
Proceeds from maturities of marketable securities | 3,572 | 11,922 | ||||||
Funding in marketable securities | (10,024 | ) | (80,894 | ) | ||||
Internet money offered by (utilized in) investing actions | $ | 269,202 | $ | (486,974 | ) | |||
Money flows from financing actions: |
||||||||
Train of worker inventory choices | $ | 42 | $ | 299 | ||||
Funds associated to shares withheld for taxes | (135 | ) | (510 | ) | ||||
Repurchase of odd shares | (6,752 | ) | – | |||||
Internet money utilized in financing actions | $ | (6,845 | ) | $ | (211 | ) | ||
Enhance (lower) in money and money equivalents | $ | 248,353 | $ | (534,267 | ) | |||
Money and money equivalents initially of the interval | 104,597 | 611,551 | ||||||
Money and money equivalents on the finish of the interval | $ | 352,950 | $ | 77,284 | ||||
Non-cash investing and financing actions: | ||||||||
Buy of property and gear on credit score | 173 | 1,292 | ||||||
Stock transferred for use as property and gear | 365 | 697 | ||||||
Property, plant and gear transferred for use as stock | 653 | 4 | ||||||
Receipt on account of shares | – | 63 | ||||||
Lease liabilities arising from acquiring right-of-use belongings | 6,037 | 5,746 | ||||||
KORNIT DIGITAL LTD. |
||||||||
AND ITS SUBSIDIARIES |
||||||||
RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA |
||||||||
(U.S. {dollars} in hundreds, besides share and per share knowledge) | ||||||||
Three Months Ended |
||||||||
March 31, |
||||||||
2023 |
2022 |
|||||||
(Unaudited) |
||||||||
GAAP Revenues | $ | 47,778 | $ | 83,293 | ||||
GAAP Internet Loss | (18,931 | ) | (5,197 | ) | ||||
Taxes on revenue | 194 | 91 | ||||||
Monetary revenue | (5,404 | ) | (1,799 | ) | ||||
Share-based compensation | 5,245 | 5,298 | ||||||
Intangible belongings amortization | 611 | 419 | ||||||
Acquisition associated bills | – | 512 | ||||||
Restructuring bills | 295 | – | ||||||
Non-GAAP Working Loss | (17,990 | ) | (676 | ) | ||||
Depreciation | 3,262 | 2,161 | ||||||
Adjusted EBITDA | $ | (14,728 | ) | $ | 1,485 | |||