Kornit Digital Ltd. · NASDAQ:KRNT
Kornit Digital — Q2 2024 Earnings Presentation
22 slides from Kornit Digital's earnings presentation, Aug 7, 2024
Slide 1: Kornit Digital Second Quarter 2024 Earnings Conference Call
Kornit Digital (NASDAQ: KRNT) Second Quarter 2024 Earnings Conference Call Supporting Slides August 7, 2024 Kornit Digital. All Rights Reserved.
Slide 2: On Today's Call
On Today’s Call Ronen Samuel Lauri Hanover Jared Maymon CEO CFO Investor Relations Kornit Digital. All Rights Reserved.
Slide 3: Safe Harbor
Safe Harbor This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and other U.S. securities laws. Forward-looking statements are characterized by the use of forward-looking terminology such as “will,” “expects,” “anticipate
Slide 4: Business Highlights
Business Highlights Kornit Digital. All Rights Reserved.
Slide 5: Second Quarter 2024 Recap
Second Quarter 2024 Recap ― Revenues of $48.6 million and adjusted EBITDA margin of negative 3.4% ― Within the guidance range provided in May ― Generated positive cash from operations for Q2 2024 ― Continued improvements year-over-year to impressions and consumables sales ― Macroeconomic environment
Slide 6: Apollo Update
Apollo Update ― The system is driving significant improvements to productivity and TCO ― Regarded as the best solution for replacing screen printing for mid-sized runs ― Received several additional orders in Q2, with four on the AIC model ― Pipeline for 2024 remains filled with a mixture of AIC and
Slide 7: All-inclusive Click (AIC) Pilot Program Update
All-inclusive Click (AIC) Pilot Program Update ― AIC removes barriers to entry by eliminating large capital investments and providing predictable unit economics ― AIC provides better visibility for Kornit on revenue, profitability, and cash flow ― Expanded the program from Apollo to the Atlas family
Slide 8: Direct-to-Fabric Update
Direct-to-Fabric Update ― Continues to drive revenue diversification ― Gaining traction in key textile-producing regions ― Viewing India, China, Peru, Portugal, and others as growth drivers for our future in DTF ― Making progress in footwear applications ― Working to have a production-ready footwear
Slide 9: Current View on the Second Half of 2024
CurrentView on the Second Half of 2024 ― Continuing to see signs of improvement ― Anticipating a stronger second half than first half ― Sales to increase by 20-25% in the second half ― Growth to be primarily driven by consumables sales ― Expecting positive EBITDA on a full-year basis and positive op
Slide 10: Announcement of Investor Event
Announcementof Investor Event ― Hosting an Investor Event on September 10th in Las Vegas ― Event to be held in conjunction with participation in Printing United trade show ― Investor Event will feature presentations from members of executive mgmt. ― Event will also feature panels with key customers
Slide 11: Concluding Remarks
Concluding Remarks ― We achieved significant year-over-year improvements to profitability and cash flow ― Despite a challenging backdrop, we continue to see improvements in impressions, consumables, and utilization ― Adding to our pipeline of orders on AIC for both Apollo and Atlas systems ― Stabili
Slide 12: Financial Highlights
Financial Highlights Kornit Digital. All Rights Reserved.
Slide 13: Revenues
Revenues ― Q2 2024 revenues were $48.6 million ― Within the guidance range of $47-$52 million ― Consumables contributed to year-over-year growth for Q2 2024 ― Systems and services sales declined year-over-year, as expected Q2 Revenues ($M) Revenues By Region 10% $56.2 $48.6 24% 66% 2023 2024 America
Slide 14: Gross Margins
Gross Margins ― Q2 2024 non-GAAP gross margin of 48.6% compared to 36.1% in Q2 2023 ― Improvement again attributable to better mix between comparatively higher-margin consumables and systems, as well as reduced fixed costs due to restructuring efforts ― Q2 2024 margin also benefitted from lack of wa
Slide 15: Operating Expenses
Operating Expenses ― Q2 2024 Non-GAAP Operating Expenses: $28.0 million, down from $34.1 million in Q2 2023 ― Reduction reflects cost-savings and restructuring initiatives ― Including workforce reductions, consolidation of facilities, and phasing-out legacy platforms ― OPEX includes ~$1.5 million al
Slide 16: P&L KPI's
P&L KPI’s Q2 2023 Q2 2024 Non-GAAP Operating Loss ($13.8) ($4.3) Adjusted EBITDA Loss ($10.7) ($1.6) Non-GAAP Net Income (Loss) ($7.4) $1.1 Non-GAAP Diluted income (loss) per share ($0.15) $0.02 GAAP Net Loss ($14.3) ($4.9) GAAP Diluted loss per share ($0.29) ($0.10) $ in millions, except per share
Slide 17: Balance Sheet & Cash Flow
Balance Sheet & Cash Flow ― At quarter end, cash, including bank deposits and marketable securities, was ~$554 million ― Q2 2024 cash generated from operating activities: ~$4.5 million ― Accounts receivable decreased ~$1.2 million from Q1 2024 ― Inventories increased ~$3.6 million from Q1 2024 ― Tra
Slide 18: AIC Pilot Program Update
AIC Pilot Program Update ― Interest in our pilot of the AIC offering remains strong ― In Q2 we signed four new Apollo AIC units for delivery towards the end of this year ― Overall, expect to deliver 15 Apollo systems this year, with 10 of those expected on AIC model ― Also began a pilot AIC program
Slide 19: Share Repurchase Program
Share Repurchase Program ― We were subject to a blackout period under our existing trading plan ― Unable to repurchase shares for most of Q2 ― Repurchase activity was limited to ~83,000 shares for Q2 ― Average price paid per share net of fees was $14.32 ― Existing authorization for our share repurch
Slide 20: Third Quarter 2024 Guidance
Third Quarter 2024 Guidance ― Q3 2024 Revenues: ― Expected to be in the range of $48 million to $52 million ― Q3 2024 Adjusted EBITDA margin: ― Expected to be in the range of 1% to 6% of revenue Kornit Digital. All Rights Reserved.
Slide 21: Reconciliation of GAAP Net Income to Adjusted EBITDA
KORNIT DIGITAL LTD. AND ITS SUBSIDIARIES RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA (U.S. dollars in thousands, except share and per share data) Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (Unaudited) (Unaudited) GAAP Revenues $ 48,621 $ 56,199 $ 92,397 $ 103,
Slide 22: Thank You!
Thank You! Kornit Digital. All Rights Reserved.