Kornit Digital Ltd. · NASDAQ:KRNT
Kornit Digital — Q3 2020 Earnings Presentation
21 slides from Kornit Digital's earnings presentation, Nov 10, 2020
Slide 1: Kornit Digital Q3 2020 Earnings Call Supporting Slides
© Kornit Digital. All rights reserved. KORNIT DIGITAL (NASDAQ KRNT) Q 3 2020 EARNINGS CALL SUPPORTING SLIDES
Slide 2: Safe Harbor
© Kornit Digital. All rights reserved. SAFE HARBOR This presentation contains forward - looking statements within the meaning of U . S . securities laws . All statements other than statements of historical fact contained in this presentation are forward - looking statements . In some cases,
Slide 3: Our Vision
© Kornit Digital. All rights reserved. | © All rights reserved Kornit Digital 2019 3 OUR VISION CREATE A BETTER WORLD WHERE EVERYBODY CAN BOND , DESIGN AND EXPRESS THEIR IDENTITIES ,
Slide 4: On Today's Call
© Kornit Digital. All rights reserved. Ronen Samuel CEO Guy Avidan CFO Amir Shaked Mandel EVP Corp Dev ON TODAY ’ S CALL
Slide 5: Business Highlights
© Kornit Digital. All rights reserved. BUSINESS HIGHLIGHTS RONEN SAMUEL CEO
Slide 6: Exceeded Expectations for Third Quarter
© Kornit Digital. All rights reserved. • Total revenue of $ 57.4 million, net of $ 2.2 million in warrants related to a global strategic account • Sequential growth of approximately 53 % in Q 3 compared to Q 2 2020 • Year over year growth of approximately 21 % • Strong demand for industrial s
Slide 7: Activity and Business Momentum
© Kornit Digital. All rights reserved. • Partnering with customers to deliver incremental demand for systems, ink and services as we enter holiday season • Engaged in large scale expansion projects in North America • Unique partnership with Delta Apparel and Hot Topics • EMEA experiencing res
Slide 8: Activity and Business Momentum
© Kornit Digital. All rights reserved. • Unprecedented success of the Atlas • Record shipment quarter • Accelerating R&D efforts for next generation of applications • Considerable traction for the Vulcan Plus with customers investing in fleets • Phenomenal momentum for DTF, fueled by transiti
Slide 9: Extremely Well Positioned
© Kornit Digital. All rights reserved. • Seeing strong momentum and entering 2021 with a very strong backlog • Increasing outlook for second half of the year: • From low double - digit year - over - year revenue growth, to 25 % YoY growth • Welcome to our new shareholders • Exciting times for
Slide 10: Financials Highlights
© Kornit Digital. All rights reserved. FINANCIALS HIGHLIGHTS GUY AVIDAN CFO
Slide 11: Quarterly Warrants Impact
© Kornit Digital. All rights reserved. QUARTERLY WARRANTS IMPACT $ in thousands except per share amounts Net of Warrants Impact Warrants Impact K$/BPS/EP S Net of Warrants Impact Warrants Impact K$/BPS/EP S Net of Warrants Impact Warrants Impact K$/BPS/ EPS Revenues $57,392 $2,158 $59,550
Slide 12: Q3 2020 Financial Results
© Kornit Digital. All rights reserved. Q 3 2020 FINANCIAL RESULTS GAAP Non - GAAP Q3 2020 Q3 2019 YoY Change Q3 2020 Q3 2019 YoY Change Total Revenue $57.4 $47.3 $10.1 $ 57.4 $47.3 $10.1 Gross Profit $27.0 $22.2 $4.8 $ 27.6 $22.6 $5.0 Operating Income (Loss) $2.7 $4.1 ($1.4) $ 6.5 $6.2 $0.3 N
Slide 13: Quarterly Revenues
© Kornit Digital. All rights reserved. QUARTERLY REVENUES Geographic Revenue Split • Revenues of $ 57.4 million vs. $ 47.3 million in prior year, an increase of 21.4 % YoY and an increase of 53.3 % QoQ • A global customer accounted for 14.8 % of revenues compared to 20.2 % in prior year • 10
Slide 14: Quarterly Gross Margin and Opex
© Kornit Digital. All rights reserved. QUARTERLY GROSS MARGIN AND OPEX Q3 2020 Q3 2019 Research & Development 13.8% 11.2% Sales & Marketing 13.5% 15.1% General & Administrative 9.6% 8.5% Total Operating Expenses 36.9% 34.8% • Non - GAAP gross margin of 48 . % increased from 47 . 7 % in Q 3
Slide 15: Quarterly P&L KPI
© Kornit Digital. All rights reserved. QUARTERLY P&L KPI Q3 2020 Q3 2019 Non - GAAP Operating Income (Loss) $6.5 $6.2 Non - GAAP Net Income (Loss) $7.7 $6.6 Non - GAAP Diluted EPS $0.18 $0.16 GAAP Net Income (Loss) $3.9 $4.7 GAAP Diluted EPS $0.09 $0.11 Adjusted EBITDA $9.4 $13.1 $ in million
Slide 16: Quarterly Balance Sheet and Cash Flow
© Kornit Digital. All rights reserved. QUARTERLY BALANCE SHEET AND CASH FLOW Cash from Operating Activities Balance Sheet $ in millions $ in millions 20.4 ( 9.2 ) 0.0 Q 3 2020 Q2 2020 Q 3 2019 Q3 2020 Q2 2020 Q3 2019 Cash, Bank Deposits and MK Securities 405.3 237.4 250.4 Accounts Receivab
Slide 17: Warrants Impact and Vesting
© Kornit Digital. All rights reserved. WARRANTS IMPACT AND VESTING * Revenue recognition base impact ** Collection base impact *** During Q 3 2,162,463 of the warrants were exercised
Slide 18: Amazon Warrants Agreement
© Kornit Digital. All rights reserved. AMAZON WARRANTS AGREEMENT • 2 , 932 , 176 warrants to purchase ordinary shares of the Company at an exercise price of $ 13 . 04 were issued to Amazon as a customer incentive . The warrants are subject to vesting as a function of payments for purchased pr
Slide 19: Q4 2020 Guidance
© Kornit Digital. All rights reserved. Q 4 2020 GUIDANCE* *we assume zero impact on revenue and operating margin for the purposes of guidance • Revenue is expected to be between $ million to $ . million • Non - GAAP operating income is expected to be between % to 1 % of re
Slide 20: Our Vision - Thank You
© Kornit Digital. All rights reserved. CREATE A BETTER WORLD WHERE EVERYBODY CAN BOND, DESIGN AND EXPRESS THEIR IDENTITIES, ONE IMPRESSION AT A TIME OUR VISION THANK YOU
Slide 21: Warrants Impact Change in ASU 2019
© Kornit Digital. All rights reserved. WARRANTS IMPACT CHANGE IN ASU 2019 - 08 Q1 2019 Q2 2019 Q3 2019 Q4 2019 2019 GAAP prior to adoptation of ASU 2019-08 38,161 43,890 44,581 48,649 175,281 Warrants impact prior to adoptation of ASU 2019-08 989 2,416 5,143 1,130 9,678 Warrants impact % 2