Kornit Digital Ltd. · NASDAQ:KRNT

Kornit Digital — Q4 2020 Earnings Presentation

26 slides from Kornit Digital's earnings presentation, Feb 16, 2021

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: Our Vision
OUR VISION CREATE A BETTER WORLD WHERE EVERYBODY CAN BOND, DESIGN AND EXPRESS THEIR IDENTITIES, ONE IMPRESSION AT A TIME ©2021 Kornit Digital. All rights reserved. 3 | ©3All rights reserved Kornit Digital 2019
Slide 6: Exceeded Expectation for Fourth Quarter
EXCEEDED EXPECTATION FOR FOURTH QUARTER • Outstanding Fourth Quarter significantly exceeding guidance for top line and profitability • Transformative year in Kornit’s history • Inflection point in the textile industry • More confident than ever in ability to achieve management goal of becoming a $50
Slide 7: Activity and Business Momentum
ACTIVITY AND BUSINESS MOMENTUM • E-comm and online marketplaces continue to boom across verticals • Key and regional accounts adding multiple Atlases, Vulcans and AVHDs • Healthy mix of new vs. existing accounts • Presto is a game-changer, engagement with manufacturers for top fashion brands continu
Slide 8: Activity and Business Momentum
ACTIVITY AND BUSINESS MOMENTUM • Enabled customers to have an incredibly successful peak season • Staggering year-over-year growth of recurring consumables business • Services outperform on growth and profitability • Proud with execution of customer success teams • New business line leveraging strat
Slide 9: Starting 2021 Stronger Than Ever
STARTING 2021 STRONGER THAN EVER • Accelerating industry tailwinds • Impressive backlog and robust pipeline • Significant strategic initiatives in 2021: – Launch of powerful new products – Launch breakthrough automation technology – Introduction of ground-breaking 3D textile application bringing uni
Slide 12: Discover Business Unusual
DISCOVER BI|SINESS UNUSUAL
Slide 13: Starting 2021 Stronger Than Ever
STARTING 2021 STRONGER THAN EVER More confident than ever in our ability to execute on the massive opportunity ahead of us Kornit’s initiatives will further disrupt the industry fueling growth and profitability well beyond 2021 13 © 2021 Kornit Digital. All rights reserved. ©2021
Slide 16: Q4 2020 Financial Results
Q4 2020 FINANCIAL RESULTS GAAP Non-GAAP YoY Q4 2020 Q4 2019 YoY Change Q4 2020 Q4 2019 Change Total Revenue $72.3 $48.7 $23.6 $72.3 $48.7 $23.6 Gross Profit $36.9 $24.0 $12.9 $37.5 $24.4 $13.1 Operating Income $9.0 $3.3 $5.7 $11.8 $5.8 $6.0 Net Income $5.9 $4.8 $1.1 $11.5 $7.1 $4.4 Diluted EPS $0.12
Slide 17: Quarterly Warrants Impact
QUARTERLY WARRANTS IMPACT Q4 2020 Q3 2020 Q4 2019 Net of Net of Warrants Warrants Impact Net of Warrants Warrants Impact Warrants Impact Warrants Impact K$/BPS/EPS Impact K$/BPS/EPS K$/BPS/EPS Impact Revenues $72,291 $1,801 $74,092 $57,392 $2,158 $59,550 $48,650 $1,131 $49,781 Gross Profit $37,456 $
Slide 18: Quarterly Revenues
QUARTERLY REVENUES • Revenues of $72.3 million vs. $48.7 million in prior year, an increase of 48.6% YoY and an increase of 26.0% QoQ • Service revenues of $10.9 million accounting for 15.1% of revenues compared to $6.4 in prior year • 10 largest accounts represented 62.1% of revenues compared to 41
Slide 19: Quarterly Gross Margin and Opex
QUARTERLY GROSS MARGIN AND OPEX • Non-GAAP gross margin of 51.8% increased from 50.2% in Q4 2019 • Non-GAAP operating expenses of $25.7 million increased 38.0% year over year Q4 2020 Q4 2019 Research & Development 12.1% 11.6% Sales & Marketing 14.2% 17.4% General & Administrative 9.2% 9.2% Total Ope
Slide 20: Quarterly P&L KPI
QUARTERLY P&L KPI Q4 2020 Q4 2019 Non-GAAP Operating Income (Loss) $11.8 $7.0 Non-GAAP Net Income (Loss) $11.5 $8.2 Non-GAAP Diluted EPS $0.24 $0.19 GAAP Net Income (Loss) $5.9 $4.8 GAAP Diluted EPS $0.12 $0.11 Adjusted EBITDA $14.8 $7.8 $ in millions except per share amounts 20 ©2021 Kornit Digital
Slide 21: Quarterly Balance Sheet and Cash Flow
QUARTERLY BALANCE SHEET AND CASH FLOW Balance Sheet Cash from Operating Activities Q4 2020 Q3 2020 Q4 2019 34.3 Cash & Cash Equivalents $435.9 $405.3 $263.7 Accounts Recievable $51.6 $49.7 $40.5 20.6 Inventory $52.5 $46.3 $37.5 14.9 Trade Payable $32.0 $24.8 $23.4 Net Working Capital $387.9 $388.7 $
Slide 22: Annual Warrants Impact
ANNUAL WARRANTS IMPACT Y2020 Y2019 Net of Warrants Warrants Impact Net of Warrants Warrants Impact Impact K$/BPS/EPS Impact K$/BPS/EPS Revenues $193,331 $5,366 $198,697 $179,866 $5,094 $184,960 Gross Profit $90,248 $95,614 $86,146 $91,240 Gross Margin 46.7% 144 BPS 48.1% 47.9% 144 BPS 49.3% Operatin
Slide 23: Warrants Impact and Vesting
WARRANTS IMPACT AND VESTING Warrants Impact* Warrants Vesting** 2.27 19.96 18.16 1.83 1.72 16.00 1.61 15.16 14.60 13.46 1.28 1.20 11.04 1.11 10.06 1.03 9.50 8.12 0.86 6.46 0.66 0.60 0.60 0.55 4.93 4.97 0.51 4.38 4.53 0.44 2.03 2.97 0.34 0.34 0.34 0.33 2.03 2.43 2.16 1.80 0.26 1.49 1.66 1.39 0.170.17
Slide 24: Amazon Warrants Agreement
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 products and services of up to $150 million beginning on
Slide 25: Q1 2021 Guidance
Q1 2021 GUIDANCE* • Revenue is expected to be between $61.0 million to $65.0 million • Non-GAAP operating income is expected to be between 8% to 10% of revenue *we assume zero impact of warrants on revenue and operating margin for the purposes of guidance 25 ©2021 Kornit Digital. All rights reserved

Kornit Digital — Q4 2020 Earnings Presentation on 6ix

Kornit Digital — Q4 2020 Earnings Presentation

Slide 1: Kornit Digital Q4 2020 Earnings Call Supporting Slides

Slide 2: Safe Harbor

Slide 3: Our Vision

Slide 4: On Today's Call

Slide 5: Business Highlights

Slide 6: Exceeded Expectation for Fourth Quarter

Slide 7: Activity and Business Momentum

Slide 8: Activity and Business Momentum

Slide 9: Starting 2021 Stronger Than Ever

Slide 10: 2021 Kornit Digital. All rights reserved.

Slide 11: © 2020 Kornit Digital. All rights reserved.

Slide 12: Discover Business Unusual

Slide 13: Starting 2021 Stronger Than Ever

Slide 14: Welcome Alon Rozner

Slide 15: Financials Highlights

Slide 16: Q4 2020 Financial Results

Slide 17: Quarterly Warrants Impact

Slide 18: Quarterly Revenues

Slide 19: Quarterly Gross Margin and Opex

Slide 20: Quarterly P&L KPI

Slide 21: Quarterly Balance Sheet and Cash Flow

Slide 22: Annual Warrants Impact

Slide 23: Warrants Impact and Vesting

Slide 24: Amazon Warrants Agreement

Slide 25: Q1 2021 Guidance

Slide 26: Thank You