Kornit Digital Ltd. · NASDAQ:KRNT
Kornit Digital — Q4 2021 Earnings Presentation
23 slides from Kornit Digital's earnings presentation, Feb 15, 2022
Slide 1: Kornit Digital Fourth Quarter & Full Year 2021 Earnings Call
KORNIT DIGITAL (NASDAQ: KRNT) Fourth Quarter & Full Year 2021 Earnings Conference Call Supporting Slides February 15, 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 CEO CFO EVP Corp Dev Global Head of IR 3 2022 Kornit ©2022 © Kornit Digital. Digital. All All rights rights reserved.
Slide 4: Business Highlights
BUSINESS HIGHLIGHTS RONEN SAMUEL Chief Executive Officer 4 ©2022 Kornit Digital. All rights reserved.
Slide 5: Ending an Excellent Year, Entering One of the Busiest Years
ENDING AN EXCELLENT YEAR ENTERING ONE OF THE BUSIEST, MOST EXCITING YEARS IN OUR ©2022 Kornit Digital. All rights reserved. HISTORY
Slide 6: Pivotal Year
PIVOTAL YEAR • Outstanding execution across the board • Over 65% year-over-year revenue growth • Shipped large number of mass production systems, fueling growth of recurring revenues for years to come • Systems sales grew over 100% • Recurring consumables and service revenues grew over 30% • Deliver
Slide 7: Record Q4 2021
• Exceeded high-end of top line guidance RECORD • Revenue of $87.5 million, net of $7.9 million in warrants related Q42021 to a global strategic account. • Exceptional peak season • Gross margin expansion vs. Q420 • Operating margin in-line with guidance • Ended quarter with strong backlog and robus
Slide 8: Starting 2022 with Outstanding Momentum
STARTING 2022 WITH • Mega trends intensifying in magnitude • Digital fashion and apparel outpacing overall e-comm growth OUTSTANDING • Brands, designers, creators all looking to monetize digital traffic MOMENTUM • Traditional supply chains completely broken and unreliable • Transformation to digital
Slide 9: Starting 2022 with Outstanding Momentum: Products
• Strong backlog of orders for ATLAS MAX, upgrades STARTING 2022 throughout 2022 and into 2023 WITH • Atlas Poly will be a game-changer, unleashing massive untapped demand OUTSTANDING • QUEST and Konnect software releases MOMENTUM • Unveiling next generation DTG platform in 2H22, changing industry b
Slide 10: Plan to Take Kornit X to an Entirely New Level
PLAN TO TAKE • Scaling Global Fulfillment Network (GFN) KORNIT X TO AN • Investing in tech layers of the platform ENTIRELY NEW • Enriching our front-end offering LEVEL • Striking strategic alliances with mega-demand generators 10 ©2022 Kornit Digital. All rights reserved.
Slide 11: Connecting the Virtual and Physical Worlds, Web 3.0 and Metaverse
APRIL MAY CONNECTING THE VIRTUAL AND PHYSICAL WORLDS, IN THE FAST- APPROACHING ERAS OF WEB 3.0 AND THE METAVERSE 11 ©2022 Kornit Digital. All rights reserved.
Slide 12: Kornit Has Never Been in a Stronger Position
KORNIT HAS NEVER BEEN IN A STRONGER POSITION • Fundamentals are excellent • Market opportunity is endless • Competitive position is unmatched • Extremely confident in ability to meet $1B revenue goal by 2026, if not before 12 ©2022 Kornit Digital. All rights reserved.
Slide 13: Financial Highlights
FINANCIAL HIGHLIGHTS ALON ROZNER Chief Financial Officer 13 ©2022 Kornit Digital. All rights reserved.
Slide 14: Quarterly and Annual Revenues
QUARTERLY AND ANNUAL REVENUES • Q4 revenue of $87.5 million, net of $7.9 million non-cash warrant impact vs. $72.3 million in prior year • Strong quarter for systems; record quarter for service and consumables • Service revenue of $11.6 million; 13.2% of total revenue • 10 largest accounts represent
Slide 15: Gross Margin
GROSS MARGIN • Q4 Non-GAAP gross margins, net of the impact of the warrants, came in at 49.6% • We expect Gross Margins to improve longer-term given: GM (%) 48.2% • Ongoing shift to higher mix of mass production systems • Profitability leverage in our growing recurring consumables business 46.7% • O
Slide 16: Looking at the Supply Chain
LOOKING AT THE SUPPLY CHAIN • Confidence in our ability to deliver on our commitments for the balance of 2022 and into 2023 • Macro pressures have increased cost in certain areas • Been able to mitigate some of this impact through cost reduction projects and securing raw materials and production slo
Slide 17: Opex
OPEX • We will continue to invest in the business in 2022, as we see vast opportunities for growth that will lead to long-term acceleration in revenues Non GAAP Operating Expenses (% of Revenue) Q4 2021 Q4 2020 • R&D was up due to continued investments in production floor innovations and NPIs Resear
Slide 18: Quarterly and Annual Profitability
QUARTERLY AND ANNUAL PROFITABILITY Non-GAAP Operating Profit (M$) Q4 2021 Q4 2020 30.3 Non-GAAP Operating $5.1 $11.8 Income (Loss) Non-GAAP Net Income $6.4 $11.5 (Loss) Non-GAAP Diluted EPS $0.13 $0.24 $1.0 $5.9 5.2 GAAP Net Income (Loss) GAAP Diluted EPS $0.02 $0.12 Adjusted EBITDA $14.6 $14.5 2020
Slide 19: Balance Sheet and Cash Flow
BALANCE SHEET AND CASH FLOW Balance Sheet Cash from Operating Activities ($M) 52.5 Q4 2021 Q3 2021 Q4 2020 Cash, Deposits & Marketable Securities $798.1 $457.5 $435.9 32.4 Accounts Receivable $49.8 $49.9 $51.6 Inventory $63.0 $55.3 $52.5 Trade Payable $47.6 $30.6 $32.0 Net Working Capital $678.5 $38
Slide 20: Q1 2022 Guidance
Q1 2022 GUIDANCE • For the first quarter of 2022, the Company expects revenue to be in the range of $87 million to $91 million • NON-GAAP operating income to be in the range of 7% to 9% of revenue • EBITDA Margins to be in the range of 9% to 11% • Expects higher operating margins in the second, thir
Slide 21: Q4 2021 Warrants Impact
Q4 2021 WARRANTS IMPACT 21 ©2022 Kornit Digital. All rights reserved.
Slide 22: Annual Warrants Impact
ANNUAL WARRANTS IMPACT FY 2021 FY 2020 Net of Net of Warrants Warrants Warrants Warrants Impact Impact Impact Impact Revenue $322.0M $25.4M $193.3M $5.4M Non-GAAP Gross 48.2% 3.8% 46.7% 1.4% Margin Non-GAAP Operating 9.4% 6.6% 2.7% 2.6% Margin Non-GAAP Net Margin 11.2% 6.5% 4.7% 2.5% Non-GAAP Dilute
Slide 23: Thank You, Q&A
THANK YOU Q&A OUR VISION CREATE A BETTER WORLD WHERE EVERYBODY CAN BOND, DESIGN AND EXPRESS THEIR IDENTITIES, ONE IMPRESSION AT A TIME ©2022 Kornit Digital. All rights reserved.