Kornit Digital Reports First Quarter 2023 Results

• First quarter revenues of $47.8 million, according to prior steering
• First quarter GAAP internet lack of $18.9 million; non-GAAP internet lack of $13.4 million
• MAX upgrades drive sturdy quarter for Providers
• Double-digit year-over-year impressions development from a number of strategic prospects
• New Atlas MAX Poly and Direct-to-Material prospects 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 this time its outcomes for the primary quarter ended March 31, 2023.

“Promising indicators emerged in the course of the first quarter in sure elements of our enterprise, regardless of the persistent macroeconomic pressures,” stated Ronen Samuel, Kornit’s Chief Govt Officer. “These indicators included the double-digit year-over-year impressions development 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 continues to be not optimum, we see immense alternatives unfolding with main demand producing platforms and anticipate this market to renew development as total 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 international fulfillers, all of whom will significantly profit from Kornit’s sustainable on-demand digital options, as an alternative of present analog manufacturing. We had a robust 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 presents extra proof factors that our MAX know-how is changing into the business commonplace and a very good resolution that provides prime 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 exhibit how digital manufacturing goes mainstream with sustainable on-demand manufacturing at scale. We are going to 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

• Complete 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 primary share, in contrast with internet lack of $5.2 million, or ($0.10) per primary 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 primary 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 Steering

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 contains the affect of the non-cash expense related to the truthful worth of the Firm’s warrants.

First Quarter Earnings Convention Name Data

The Firm will host a convention name at this time 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 neighborhood.

A reside webcast of the decision could be accessed at ir.kornit.com. To entry the decision, contributors 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 hearken 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 can be obtainable roughly three hours after the completion of the reside name till 11:59 pm ET on Wednesday, Could 24, 2023. The decision will even be obtainable for replay through 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 whole international ecosystem that manages workflows and achievement. Headquartered in Israel with workplaces within the USA, Europe, and Asia Pacific, Kornit serves prospects in multiple hundred international locations and states worldwide. To be taught 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” throughout 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 corresponding to “will,” “expects,” “anticipates,” “proceed,” “believes,” “ought to,” “supposed,” “steering,” “preliminary,” “future,” “deliberate,” or different phrases. These forward-looking statements embrace, however will not be restricted to, statements referring to the Firm’s aims, plans and methods, statements of preliminary or projected outcomes of operations or of economic situation and all statements that handle actions, occasions, or developments that the Firm intends, expects, initiatives, believes or anticipates will or might happen sooner or later. Ahead-looking statements will not be 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 components they consider to be acceptable. Essential components that would trigger precise outcomes, developments and enterprise selections to vary materially from these anticipated in these forward-looking statements embrace, amongst different issues: the length and severity of present hostile macro-economic headwinds being attributable to supply-chain delays, inflationary pressures, and rising rates of interest, which have been impacting, and should proceed to affect, in an hostile method, the Firm’s operations, monetary place and money flows, partially because of the hostile affect on the Firm’s prospects 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 capability to consummate gross sales to giant accounts with multi-system supply plans; the diploma of the Firm’s capability to fill orders for its methods; the extent of the Firm’s capability to extend gross sales of its methods, ink and consumables; the extent of the Firm’s capability to leverage its international infrastructure build-out; the event of the marketplace for digital textile printing; the provision of different ink; competitors; gross sales focus; adjustments to the Firm’s relationships with suppliers; the extent of the Firm’s success in advertising; and people extra components referred to underneath “Danger Elements” in Merchandise 3.D of the Firm’s Annual Report on Type 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 on account of new data, future occasions or in any other case, besides as required by regulation.

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 so as to exclude the affect of the next: share-based compensation bills; amortization of intangible property; 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-about by administration to be exterior of the Firm’s core working outcomes. These non-GAAP measures are among the many main components administration makes use of in planning for and forecasting future durations. Moreover, the non-GAAP measures are usually used internally to grasp, handle, and consider the Firm’s enterprise and make working selections, and the Firm believes that they’re helpful to traders as a constant and comparable measure of the continuing efficiency of the Firm’s enterprise. The Firm’s non-GAAP monetary measures will not be meant to be thought-about in isolation or as an alternative to comparable GAAP measures and must be learn solely along with 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 firms.

The reconciliation tables included beneath current a reconciliation of our non-GAAP monetary measures to essentially the most instantly comparable GAAP monetary measures.

Investor Contact:
Andrew G. Backman
World Head of Investor Relations
[email protected]