Slide 1: Second Quarter 2022 Earnings Conference Call Supporting Slides
KORNIT DIGITAL (NASDAQ: KRNT) Second Quarter 2022 Earnings Conference Call Supporting Slides August 10, 2022 1 © 2022 Kornit Digital. All rights reserved.
Slide 2: Safe Harbor
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, you can identify forward-looking statements by terminolo
Slide 3: On Today's Call
ON TODAY’S CALL Ronen Samuel Alon Rozner Amir Shaked Mandel Andrew Backman Lauri Hanover CEO CFO EVP Corp Dev Global Head of IR Appointed CFO © 2022 Kornit Digital. All rights reserved.
Slide 4: Business Highlights
BUSINESS HIGHLIGHTS RONEN SAMUEL Chief Executive Officer 4 © 2022 Kornit Digital. All rights reserved.
Slide 5: Second Quarter Results
Second Quarter Results • Total revenues were $58.1 million, net of non-cash warrants impact of $4.5 million • In line with preliminary results issued on July 5, 2022 • Shortfall in DTG systems revenues, mainly in the Americas region • Growth impacted by re-calibration of e-commerce, macro headwinds,
Slide 6: Regional Commentary – Good First Half 22' Growth in EMEA and APAC
Regional Commentary – Good First Half 22’ Growth in EMEA and APAC EMEA: • Pipeline for second half of the year improving • Continue to make progress with major brands and retailers including C&A, HYPE, and one of the world’s top five fashion brands that is vertically integrating a number of Atlas Ma
Slide 7: Navigating Current Market Dynamics
Navigating Current Market Dynamics 1 Continue to work with brands, retailers, and fulfillers of all sizes: B2C ONSHORE • Help current and prospective customers better understand operational and financial benefits (same country) of shifting production volumes to Kornit’s on-demand, sustainable, mass
Slide 8: $75 Million Share Repurchase Authorization
$75 Million Share Repurchase Authorization • The Board of Directors has approved the repurchase of up to $75 million of the Company’s ordinary shares • Flexible way to return capital to our shareholders when we see value in our stock • Believe using a portion of the cash on our extremely strong bala
Slide 9: Announces CFO Transition
Announces CFO Transition • Alon Rozner, Chief Financial Officer, will be stepping down from his role in November for personal reasons • Industry veteran Lauri Hanover to join Kornit executive management team as Chief Financial Officer • Has served as member of Kornit’s Board of Directors since 2015
Slide 10: Financial Highlights
FINANCIAL HIGHLIGHTS ALON ROZNER Chief Financial Officer 10 © 2022 Kornit Digital. All rights reserved.
Slide 11: Quarterly Revenues
Quarterly Revenues • Q2 revenues of $58.1 million, net of $4.5 million non-cash warrant impact • Lower DTG systems revenues, mainly in the Americas region, drove shortfall between our May guidance and Q2 results • Top 10 largest accounts represented ~52% of total revenues Revenues By Region 10% 48%
Slide 12: Gross Margins
Gross Margins • Q2 Non-GAAP Gross Margins, net of the impact of the warrants was 38.6% • Lower-than-expected systems revenues, primarily in the Americas region, impacted margins • Anticipate gross margins in the second half of 2022 to improve versus the second quarter • Expect revenues from consumab
Slide 13: Operating Expenses
Operating Expenses • Research and Development expenses increased due to readying multiple new product introductions, such as Atlas MAX Poly and Presto MAX, and continued investments in KornitX • Sales and Marketing expenses increased primarily due to significant go-to-market and branding events, inc
Slide 14: Quarterly P&L KPI
Quarterly P&L KPI Q2 2022 Q2 2021 Non-GAAP Operating Income (Loss) ($18.3) $10.2 Non-GAAP Net Income (Loss) ($15.6) $10.5 Non-GAAP Diluted EPS ($0.31) $0.22 GAAP Net Income (Loss) ($19.5) $5.6 GAAP Diluted (Basic) EPS ($0.39) $0.12 Adjusted EBITDA ($16.1) $11.4 $ in millions except per share amounts
Slide 15: Balance Sheet
Balance Sheet • Receivables decreased as expected due to healthy collections associated with closing sales late in the first quarter • Inventories increased due to systems that are awaiting shipment to one of our customers who is experiencing delays in the completion of their new production facility
Slide 16: Q3 2022 Guidance
Q3 2022 Guidance Revenues • Expect third quarter revenues to be in the range of $66 million to $70 million • Expect fourth quarter revenues to be at similar levels to the third quarter, with a higher mix of consumables Operating Profitability • Expect third quarter Non-GAAP operating margins in the
Slide 17: Q2 2022 Warrants Impact Summary
Q2 2022 Warrants Impact Summary 17 © 2022 Kornit Digital. All rights reserved.
Slide 18: Thank You Q&A
THANK YOU Q&A 18 © 2022Kornit ©2022 KornitDigital. Digital. All Allrights rightsreserved. reserved.