Kornit Digital Looks Forward To Achieving Profitable Growth As It Reports Third Quarter 2023 Results

PRESS ROOM

13 Nov

Written By Debbie Mckeegan

Highlights

Third quarter revenues of $59.2 million, in line with previous guidance
Third quarter GAAP net loss of $8.2 million; non-GAAP net loss of $3.4 million
Impressions and consumables revenues both continued to grow year-over-year
System sales increased quarter-over-quarter on continued conversion of ITMA orders
Company operations have not been materially impacted by the security situation in Israel

ROSH-HA'AYIN, Israel, Nov. 08, 2023 -- Kornit Digital Ltd. (“Kornit” or the “Company”) (Nasdaq: KRNT), a worldwide market leader in sustainable, on-demand, digital fashionX and textile production technologies, reported today its results for the third quarter ended September 30, 2023.

“We delivered third quarter revenues within our guidance range, despite a challenging macroeconomic environment. Our consumables sales grew year-over-year, while system sales improved sequentially as we continued to convert orders from ITMA,” said Ronen Samuel, Kornit’s Chief Executive Officer. “We also saw further growth in our direct-to-fabric solutions, resulting in one of the strongest quarters for Presto system sales. Interest in our Atlas MAX Poly system has also been robust, especially in the sports and athleisure market."

"During the quarter, we successfully installed our initial Apollo beta systems, which have received highly encouraging feedback and demonstrated solid uptime, yield, and unit economics. We continue to target general availability for Apollo in the first quarter of 2024 and are building a strong pipeline of both existing and new customers,” Mr. Samuel concluded, “Looking ahead, we are taking proactive measures to further diversify our customer base, expand into key textile-producing regions, and resume overall sales growth, while also focusing on enhancing operating efficiencies across the entire company. Our plan includes approaching breakeven on an adjusted EBITDA basis during the fourth quarter and achieving profitable growth for the full year in 2024.”

Third Quarter 2023 Results Of Operations

Total revenue for the third quarter of 2023 was $59.2 million compared with $66.8 million in the prior year period, due primarily to lower systems revenues.
GAAP gross profit margin for the third quarter of 2023 was 34.8% compared with 32.1% in the prior year period. On a non-GAAP basis, gross profit margin was 37.4% compared with 35.5% in the prior year period.
GAAP operating expenses for the third quarter of 2023 decreased by 17.6% to $35.3 million compared with the prior year period. On a non-GAAP basis, operating expenses decreased by 15.3% to $31.1 million compared with the prior year period.
GAAP net loss for the third quarter of 2023 was $8.2 million, or ($0.17) per basic share, compared with net loss of $19.0 million, or ($0.38) per basic share, for the third quarter of 2022.
Non-GAAP net loss for the third quarter of 2023 was $3.4 million, or ($0.07) per basic share, compared with non-GAAP net loss of $10.7 million, or ($0.21) per basic share, for the third quarter of 2022.
Adjusted EBITDA loss for the third quarter of 2023 was $5.6 million compared with adjusted EBITDA loss of $10.5 million for the third quarter of 2022. Adjusted EBITDA margin for the third quarter of 2023 was -9.5% compared with -15.7% for the third quarter of 2022.

Fourth Quarter 2023 Guidance

For the fourth quarter of 2023, the Company expects revenues to be in the range of $55 million to $60 million and adjusted EBITDA margin between -6% to 0% of revenue.

The guidance for revenue and adjusted EBITDA margin includes the impact of the non-cash expense associated with the fair value of the Company’s warrants..

About Kornit Digital

Kornit Digital (NASDAQ: KRNT) is a worldwide market leader in sustainable, on-demand, digital fashionx and textile production technologies.

The Company is writing the operating system for fashion with end-to-end solutions including digital printing systems, inks, consumables, and an entire global ecosystem that manages workflows and fulfillment.

Headquartered in Israel with offices in the USA, Europe, and Asia Pacific, Kornit Digital serves customers in more than 100 countries and states worldwide.

Learn more