“Promising indicators emerged during the first quarter in certain parts of our business, despite the persistent macroeconomic pressures,” said Ronen Samuel, Kornit’s CEO. “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. Although capacity utilization remains low, we are seeing immense opportunities in the major demand-generating platforms. We anticipate this market will resume growth once macroeconomic conditions improve.
“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,” added Samuel. “We had a strong quarter for Atlas MAX Poly, and continued to strengthen our market-leading 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.”
“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,” Samuel concluded. “We will showcase a diverse range of new cutting-edge DTF and DTG solutions, including unveiling our highly anticipated Apollo, which will revolutionize markets traditionally served by analog. 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.”
The first quarter 2023 total revenue was $48,8 million, down from $83,3 million the year before. This is primarily because of lower expected system revenues. GAAP gross margin was 27.4% for the first three months of 2023 compared to 40.1% the year before. Non-GAAP gross profit margin for the first quarter of 2023 was 30.2%, compared to 41.5% during the previous year.
GAAP loss in the first three months of 2023 totaled $18.9 millions, or $0.38 per share. This compares to a loss of $5.2 million or $0,10 per share for the same period of 2022. In the first quarter 2023, adjusted EBITDA was $1.5m compared to $14.7m in the first quarter 2022. The first quarter’s adjusted EBITDA was -30.8% as opposed to 1.8% the previous quarter.