- First quarter revenues of $47.8 million, in keeping with prior steering
- First quarter GAAP internet lack of $18.9 million; non-GAAP internet lack of $13.4 million
- MAX upgrades drive robust quarter for Companies
- 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, Could 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 present 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 Govt 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 custom-made design market, and the continued adoption of our MAX know-how. Whereas capability utilization remains to be not optimum, we see immense alternatives unfolding with main demand producing platforms and anticipate this market to renew progress as general macro circumstances enhance.”
Mr. Samuel continued, “With our MAX know-how because the cornerstone, we’ve been steadily gaining momentum on our technique in concentrating on manufacturers, retailers, and their world fulfillers, all of whom will vastly 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 gives further proof factors that our MAX know-how is turning into the trade customary and a very good resolution that provides high retail high quality output, elevated productiveness, higher price efficiencies, and new product capabilities and choices.”
Mr. Samuel concluded, “We’re excited to attend the upcoming ITMA tradeshow in Milan, the place we’ll show how
digital manufacturing goes mainstream with sustainable on-demand manufacturing at scale.
We’ll showcase a various vary of latest 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 lengthen the breadth of print functions and supply ranges of automation by no means earlier than seen in any of the markets we serve.”
First Quarter 2023 Outcomes of Operations
- Whole income for the primary quarter of 2023 was $47.8 million in contrast with $83.3 million within the prior yr interval, primarily as a result 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 yr interval. On a non-GAAP foundation, gross revenue margin was 30.2% in contrast with 41.5% within the prior yr interval.
- GAAP working bills for the primary quarter of 2023 decreased by 7.7% to $37.2 million in contrast with the prior yr interval. On a non-GAAP foundation, working bills additionally decreased by 8.0% to $32.4 million in contrast with the prior yr interval.
- GAAP internet loss for the primary quarter of 2023 was $18.9 million, or ($0.38) per fundamental share, in contrast with internet lack of $5.2 million, or ($0.10) per fundamental 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 fundamental share, in contrast with non-GAAP internet earnings 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
consists of
the affect 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 present 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 stay webcast of the decision
may be accessed at
ir.kornit.com
. To entry the decision, members might 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 will likely be accessible roughly three hours after the completion of the stay name till 11:59 pm ET on Wednesday, Could 24, 2023. The decision may even be accessible for replay by way of 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 multiple hundred nations and states worldwide. To study extra about how Kornit Digital is boldly remodeling the world of style and textiles, go to
www.kornit.com
.
Ahead Trying Statements
Sure statements on this press launch are “forward-looking statements” inside the that means of the Non-public Securities Litigation Reform Act of 1995 and different U.S. securities legal guidelines. Ahead-looking statements are characterised by way of forward-looking terminology comparable to “will,” “expects,” “anticipates,” “proceed,” “believes,” “ought to,” “supposed,” “steering,” “preliminary,” “future,” “deliberate,” or different phrases. These forward-looking statements embody, however usually are not restricted to, statements referring to the Firm’s goals, plans and techniques, statements of preliminary or projected outcomes of operations or of monetary situation and all statements that deal with actions, occasions, or developments that the Firm intends, expects, tasks, believes or anticipates will or might happen sooner or later. Ahead-looking statements usually are not ensures of future efficiency and are topic to dangers and uncertainties. The Firm has primarily based these forward-looking statements on assumptions and assessments made by its administration in mild of their expertise and their notion of historic traits, present circumstances, anticipated future developments and different elements they imagine to be acceptable. Vital elements that might trigger precise outcomes, developments and enterprise selections to vary materially from these anticipated in these forward-looking statements embody, amongst different issues: the length and severity of present adversarial 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 affect, in an adversarial method, the Firm’s operations, monetary place and money flows, partially because of the adversarial affect on the Firm’s clients and suppliers; the Firm’s diploma of success in creating, 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 capacity to consummate gross sales to massive accounts with multi-system supply plans; the diploma of the Firm’s capacity to fill orders for its methods; the extent of the Firm’s capacity to extend gross sales of its methods, ink and consumables; the extent of the Firm’s capacity to leverage its world infrastructure build-out; the event of the marketplace for digital textile printing; the supply of other ink; competitors; gross sales focus; adjustments to the Firm’s relationships with suppliers; the extent of the Firm’s success in advertising; and people further elements referred to beneath “Danger Components” in Merchandise 3.D of the Firm’s Annual Report on Kind 20-F for the yr 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 data, 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 mirror changes to corresponding GAAP monetary measures to be able to exclude the affect of the next: share-based compensation bills; amortization of intangible belongings; acquisition associated bills; restructuring bills; overseas alternate variations related to ASC 842; and non-cash deferred tax earnings.
The Firm defines “Adjusted EBITDA” as non-GAAP working earnings (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 fees and different objects which can be thought of by administration to be outdoors of the Firm’s core working outcomes. These non-GAAP measures are among the many major 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 selections, and the Firm believes that they’re helpful to buyers as a constant and comparable measure of the continuing efficiency of the Firm’s enterprise. The Firm’s non-GAAP monetary measures usually are not meant to be thought of in isolation or as an alternative to comparable GAAP measures and ought to be learn solely along side the Firm’s consolidated monetary statements ready in accordance with GAAP. Moreover, these non-GAAP monetary measures might differ materially from the non-GAAP monetary measures utilized by different corporations.
The reconciliation tables included beneath current a reconciliation of our non-GAAP monetary measures to probably the most immediately comparable GAAP monetary measures.
Investor Contact:
Andrew G. Backman
World Head of Investor Relations
[email protected]
KORNIT DIGITAL LTD. |
|||||||
AND ITS SUBSIDIARIES |
|||||||
CONSOLIDATED BALANCE SHEETS |
|||||||
(U.S. {dollars} in 1000’s) |
|||||||
March 31, |
December 31, |
||||||
2023 |
2022 |
||||||
(Unaudited) |
(Audited) |
||||||
ASSETS |
|||||||
CURRENT ASSETS: | |||||||
Money and money equivalents | $ | 352,950 | $ | 104,597 | |||
Quick-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 | |||||
Whole 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 | |||||
Whole long-term belongings | 381,225 | 378,827 | |||||
Whole 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 | |||||
Whole 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 | |||||
Whole long-term liabilities | 27,568 | 23,474 | |||||
SHAREHOLDERS’ EQUITY | 853,030 | 868,822 | |||||
Whole liabilities and shareholders’ fairness |
$ | 947,057 | $ | 957,666 | |||
KORNIT DIGITAL LTD. |
|||||||
AND ITS SUBSIDIARIES |
|||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||
(U.S. {dollars} in 1000’s, besides share and per share information) | |||||||
Three Months Ended |
|||||||
March 31, |
|||||||
2023 |
2022 |
||||||
(Unaudited) |
|||||||
Revenues | |||||||
Merchandise | $ | 31,903 | $ | 72,514 | |||
Companies | 15,875 | 10,779 | |||||
Whole revenues | 47,778 | 83,293 | |||||
Price of revenues | |||||||
Merchandise | 20,379 | 39,237 | |||||
Companies | 14,327 | 10,654 | |||||
Whole price 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 | |||||
Common and administrative | 8,948 | 9,766 | |||||
Whole working bills |
37,213 | 40,307 | |||||
Working loss | (24,141 | ) | (6,905 | ) | |||
Monetary earnings, internet | 5,404 | 1,799 | |||||
Loss earlier than taxes on earnings | (18,737 | ) | (5,106 | ) | |||
Taxes on earnings | 194 | 91 | |||||
Internet loss | $ | (18,931 | ) | $ | (5,197 | ) | |
Fundamental loss per share | $ | (0.38 | ) | $ | (0.10 | ) | |
Weighted common variety of shares | |||||||
utilized in computing fundamental 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 1000’s, besides share and per share information) | |||||||||
Three Months Ended |
|||||||||
March 31, |
|||||||||
2023 |
2022 |
||||||||
(Unaudited) |
|||||||||
Revenues | $ | 47,778 | $ | 83,293 | |||||
GAAP price of revenues | $ | 34,706 | $ | 49,891 | |||||
Price of product recorded for share-based compensation (1) | (507 | ) | (449 | ) | |||||
Price of service recorded for share-based compensation (1) | (351 | ) | (385 | ) | |||||
Intangible belongings amortization on price of product (3) | (263 | ) | (173 | ) | |||||
Intangible belongings amortization on price of service (3) | (160 | ) | (160 | ) | |||||
Restructuring bills (4) | (89 | ) | – | ||||||
Non-GAAP price 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 earnings, internet | $ | 5,404 | $ | 1,799 | |||||
Overseas alternate variations related to ASC 842 | (376 | ) | (649 | ) | |||||
Non-GAAP Monetary earnings , internet | $ | 5,028 | $ | 1,150 | |||||
GAAP Taxes on earnings | $ | 194 | $ | 91 | |||||
Non-cash deferred tax earnings | 221 | 217 | |||||||
Non-GAAP Taxes on earnings | $ | 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 | – | |||||||
Overseas alternate variations related to ASC 842 | (376 | ) | (649 | ) | |||||
Non-cash deferred tax earnings | (221 | ) | (217 | ) | |||||
Non-GAAP internet earnings (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 | |||||||||
Price of product revenues | $ | 507 | $ | 449 | |||||
Price of service revenues | 351 | 385 | |||||||
Analysis and improvement | 1,351 | 1,189 | |||||||
Gross sales and advertising | 1,363 | 1,809 | |||||||
Common and administrative | 1,673 | 1,466 | |||||||
$ | 5,245 | $ | 5,298 | ||||||
(2) Acquisition associated bills | |||||||||
Common and administrative | $ | – | $ | 512 | |||||
$ | – | $ | 512 | ||||||
(3) Intangible belongings amortization | |||||||||
Price of product revenues | $ | 263 | $ | 173 | |||||
Price of service revenues | 160 | 160 | |||||||
Gross sales and advertising | 188 | 86 | |||||||
$ | 611 | $ | 419 | ||||||
(4) Restructuring bills | |||||||||
Price 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 1000’s) |
||||||||
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 | ||||||
Honest 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 supplied 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 bizarre 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 at the start 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 1000’s, besides share and per share information) | ||||||||
Three Months Ended |
||||||||
March 31, |
||||||||
2023 |
2022 |
|||||||
(Unaudited) |
||||||||
GAAP Revenues | $ | 47,778 | $ | 83,293 | ||||
GAAP Internet Loss | (18,931 | ) | (5,197 | ) | ||||
Taxes on earnings | 194 | 91 | ||||||
Monetary earnings | (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 | |||