- In line with previous guidance, first quarter revenues were $47.8 millions.
- First quarter GAAP Net Loss of $18.9 Million; non-GAAP Net Loss of $13.4 millions
- MAX upgrades drive strong quarter for Services
- Impressions grow by double digits from strategic customers
- Atlas MAX Poly and Direct to Fabric customers are added to key textile regions
- The ITMA Tradeshow in Milan will feature new solutions and breakthroughs.
ROSH-HA`AYIN, Israel — Kornit Digital Ltd. (“Kornit” or “the Company”), a worldwide market leader in sustainable, on-demand, digital fashionX and textile production technologies, reported today its results for the first quarter ended March 31, 2023.
“Promising indicators emerged during the first quarter in certain parts of our business, despite the persistent macroeconomic pressures,” said Ronen Samuel, Kornit’s Chief Executive Officer. “These indicators included the double-digit year-over-year impressions growth from several of our larger direct-to-garment (DTG) strategic accounts in the customized design market, and the continued adoption of our MAX technology. While capacity utilization is still not optimal, we see immense opportunities unfolding with major demand generating platforms and expect this market to resume growth as overall macro conditions improve.”
Mr. Samuel continued, “With our MAX technology as the cornerstone, we’ve been steadily gaining momentum on our strategy in targeting brands, retailers, and their global fulfillers, all of whom will greatly benefit from Kornit’s sustainable on-demand digital solutions, instead of existing analog production. Atlas MAX Poly enjoyed a successful quarter. We also continued to solidify our leadership position in Direct-to-Fabric (DTF), with Presto MAX. The progress made in the first quarter offers additional proof points that our MAX technology is becoming the industry standard and an excellent solution that offers top retail quality output, increased productivity, better cost efficiencies, and new product capabilities and offerings.”
Mr. Samuel concluded, “We are excited to attend the upcoming ITMA tradeshow in Milan, where we will demonstrate how digital production goes mainstream with sustainable on-demand manufacturing at scale. We will demonstrate a variety of new DTF and DTG cutting-edge solutions, including our highly anticipated Apollo that will revolutionize the markets traditionally served by analogue. These new systems and solutions significantly extend the breadth of print applications and offer levels of automation never before seen in any of the markets we serve.”
First Quarter 2023 Operations Results
Total revenue in the first quarter 2023 will be $47.8M, compared to $83.3M the previous year. This is primarily because of lower expected system revenues.
GAAP gross profits margins for the first quarter 2023 were 27.4%, compared to 40.1% during the same period in the prior-year. Non-GAAP, the gross profit margin in 2023 was 30,2% as opposed to 41.5% for the same period last year.
GAAP operating costs for the first quarter 2023 were down 7.7% on $37.2 million, compared with last year’s period. Operating expenses on a non GAAP basis also decreased by 8 % to $32.4 million in comparison with the previous year period.
GAAP loss was $18.9m, or $0.38 per share. This compares to a net loss of $5m, or $0,10 per share for the first three months of 2022.
Non-GAAP loss of $13.4 million for the first three months of 2023, or ($0.27) for each basic share. This compares to a non-GAAP income of $0.00 for each diluted share for the first three months of 2022.
The adjusted EBITDA loss in the first quarter 2023 was $14.7 Million compared to $1.5 million in the first quarter 2022. The adjusted EBITDA margin in the first quarter 2023 was -30.8%, compared to 1.8% in the first quarter 2022.
Second Quarter 2023 Guidance
The Company expects revenue to be between $54 and $59 millions for the second half of 2023. It also expects an adjusted EBITDA of -19% – -27%. 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.
First Quarter Earnings conference Call Information
The Company will hold a conference at 8:30 am today. ET, or at 3:30 PM Israel time, the company will discuss its results. This will be followed by an investor question and answer session.
The live webcast can be accessed via ir.kornit.com. Participants can dial 1-888-886 7786 or 1-416-764 8658 to access the call. The Israeli toll-free number is 1-809-468-221. The confirmation code for the conference is 79530398.
For a replay, dial 1-844-512-3021 (toll-free) or 1-412-317-66671 (international). Enter confirmation code 79530398. The telephonic recording will be available for approximately three hours following the conclusion of the call. It will remain available until 11:59 PM ET on Wednesday May 24, 2023. The call will also be available for replay via the webcast link on Kornit’s Investor Relations website.
Visit www.kornit.com for more information on how Kornit Digital has boldly transformed the world of fashion, textiles and design.