Kornit Digital Q3 Earnings and Revenues Beat Estimates
Image By Courtesy of KORNIT DIGITAL
Rosh Ha'ayin, Israel, November 6, 2024 – Kornit Digital Ltd. (“Kornit” or the “Company”) (Nasdaq: KRNT), a global leader in sustainable, on-demand digital fashion and textile production technologies, today announced its financial results for the third quarter ended September 30, 2024.
This quarterly report represents an earnings surprise of 37.50%.
A quarter ago, it was expected that this digital textile printer would post a loss of $0.01 per share when it actually produced earnings of $0.02, delivering a surprise of 300%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Financial Highlights
Revenue: Third quarter revenues totaled $50.7 million, aligning with previous guidance.
Profit Margins: GAAP gross profit margin rose to 47.7%, compared to 34.8% in the same period last year. On a non-GAAP basis, gross profit margin increased to 50.3% from 37.4% year-over-year.
Net Income: GAAP net loss was reduced to $0.9 million, or ($0.02) per basic share, from $8.2 million, or ($0.17) per basic share, in 2023. Non-GAAP net income reached $5.5 million, or $0.11 per diluted share, up from a non-GAAP net loss of $3.4 million last year.
EBITDA: Adjusted EBITDA was $1.5 million, marking a return to profitability with a margin of 2.9%, compared to an adjusted EBITDA loss of $5.6 million and a margin of -9.5% in the prior year.
CEO Statement
“I am very pleased with the operational progress we achieved this quarter. We delivered gross margin expansion, returned to adjusted EBITDA profitability, and maintained positive cash generation as planned,” said Ronen Samuel, Kornit’s Chief Executive Officer. “Our unmatched Apollo and MAX-powered products, coupled with our revamped go-to-market strategy and All-Inclusive-Click model, are broadening our market reach. We've welcomed new customers like Print Palace and Custom Ink, who are transitioning from traditional screen printing to our digital direct-to-garment solutions. Our core market is also showing signs of a growth-focused mindset, as evidenced by Monster Digital, Mad Engine Global, and DO Apparel expanding their on-demand digital production fleets with Kornit.”
Looking Ahead
For the fourth quarter of 2024, Kornit anticipates revenues between $58 million and $63 million and an adjusted EBITDA margin ranging from 12% to 16%.
The Company is strategically positioned to enter 2025 with a robust product lineup and a clear focus on executing its growth plan unveiled at the Investor Event in September.
About Kornit Digital
Kornit Digital (NASDAQ: KRNT) is a leading provider of sustainable, on-demand, digital fashion, and textile production technologies, offering comprehensive solutions from digital printing systems to software and fulfillment services.
Headquartered in Israel and serving customers in over 100 countries, Kornit is dedicated to transforming the fashion and textile industries with eco-friendly and innovative technologies.
