Slide 1: Third Quarter 2024 Earnings Conference Call Supporting Slides
Kornit Digital. All Rights Reserved. Kornit Digital. All Rights Reserved. Kornit Digital (NASDAQ: KRNT) Third Quarter 2024 Earnings Conference Call Supporting Slides November 6, 2024 Kornit Digital. All Rights Reserved.
Slide 2: On Today's Call
Kornit Digital. All Rights Reserved. On Today’s Call Ronen Samuel CEO Lauri Hanover CFO Jared Maymon Investor Relations
Slide 3: Safe Harbor
Kornit Digital. All Rights Reserved. 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 ter
Slide 4: Business Highlights
Kornit Digital. All Rights Reserved. Business Highlights
Slide 5: Third Quarter 2024 Recap
Kornit Digital. All Rights Reserved. ― Revenues of $ 50.7 million and adjusted EBITDA margin of 2.9 % ― Within the guidance range provided in August ― Generated positive cash from operations for Q 2024 ― Gross margin improved significantly year - over - year, climbing to upwards of 50 % Third Quar
Slide 6: Market update
Kornit Digital. All Rights Reserved. ― Traditionally analog - centric producers are realizing the benefits of speed, creativity, and sustainability ― Apollo coupled with AIC is driving the shift ― 12 out of 15 Apollos have been shipped this year ― The remainder is scheduled for deployment before the
Slide 7: All-Inclusive Click (AIC) Pilot Program Recap & Update
Kornit Digital. All Rights Reserved. ― Directly addresses a multi - billion impression market of longer runs ― Removes barriers to entry and provides a predictable cost structure ― Shipped a number of Atlas MAX units on the model in addition to the 12 Apollos YTD ― Remain on track to ship 30 Apollos
Slide 8: Additional Positive Signals from Q3
Kornit Digital. All Rights Reserved. ― During the quarter, we upgraded some of the Atlas fleet of our global strategic account to the Atlas MAX ― Advancing and seeing momentum in R2R, especially in the footwear market ― In China, we made additional progress with new and existing customers ― A strate
Slide 9: Fourth Quarter & H2 View
Kornit Digital. All Rights Reserved. ― Now entering the peak season in Q4, and the market is showing signs of improvement ― Improvement is validated by strong consumables ordering, and systems orders from Q3 planned to be delivered in Q4 ― Better visibility paired with the growing momentum of AIC &
Slide 10: Concluding Remarks
Kornit Digital. All Rights Reserved. ― We are seeing signs of stabilization and recovery which are building confidence in our ability to achieve profitable growth ― Kornit is well - positioned to lead the digital transformation with the right products and model ― Expecting to deliver strong value fo
Slide 11: Financial Highlights
Kornit Digital. All Rights Reserved. Financial Highlights
Slide 12: Q3 2024 Revenues
Kornit Digital. All Rights Reserved. ― Q ʦ 2024 revenues were $ ʨʣ . ʪ million ― Within the guidance range of $ ʧʫ - $ 52 million ― Systems sales declined year - over - year, as expected ― Consumables sales and impressions grew year - over - year Revenues $59.2 $50.7 Q3 Revenues ($M) 2023 2024 64% 2
Slide 13: Gross Margins
Kornit Digital. All Rights Reserved. ― Q3 2024 non - GAAP gross margin of 50.3% compared to 37.4% in Q3 2023 ― Improvement again attributable to better mix between comparatively higher - margin consumables and systems ― Q3 2024 margin also benefitted from lack of warrant expense, as the first tranch
Slide 14: Non-GAAP Operating Expenses
Kornit Digital. All Rights Reserved. ― Q3 2024 Non - GAAP Operating Expenses: $26.8 million, down from $31.1 million in Q3 2023 ― Reduction reflects cost - savings and restructuring initiatives ― Including workforce reductions, consolidation of facilities, and phasing - out legacy platforms ― We con
Slide 15: P&L KPIs
Kornit Digital. All Rights Reserved. P&L KPI’s Q3 2024 Q3 2023 ($1.3) ($9.0) Non - GAAP Operating Loss $1.5 ($5.6) Adjusted EBITDA (Loss) $5.5 ($3.4) Non - GAAP Net Income (Loss) $0.11 ($0.07) Non - GAAP Diluted income (loss) per share ($0.9) ($8.2) GAAP Net Loss ($0.02) ($0.17) GAAP Diluted loss pe
Slide 16: Balance Sheet & Cash Flow
Kornit Digital. All Rights Reserved. ― At quarter end, cash, including bank deposits and marketable securities, was ~$561 million ― Q3 2024 cash generated from operating activities: ~$13.6 million ― Q3 2024 free cash flow of ~$3.1 million ― Accounts receivable decreased ~$5.3 million from Q2 2024 ―
Slide 17: Share Repurchase Program
Kornit Digital. All Rights Reserved. ― According to Israeli law, we were subject to a 30 - day waiting period ― The end of this 30 - day period landed within our Q3 blackout window ― We will be able to begin execution of the new $100m program following the conclusion of the blackout period Share Rep
Slide 18: AIC Pilot Program Update
Kornit Digital. All Rights Reserved. ― We are on track to ship 15 Apollo systems in 2024, with 10 on the AIC model ― These systems will provide a solid base of recurring revenue as we move into 2025 ― Looking ahead to 2025, we expect to ship 30 Apollo systems ― Of the 30 systems, we expected 20 to b
Slide 19: Fourth Quarter 2024 Guidance
Kornit Digital. All Rights Reserved. ― Q4 2024 Revenues: ― Expected to be in the range of $58 million to $63 million ― Q4 2024 Adjusted EBITDA margin: ― Expected to be in the range of 12% to 16% of revenue Fourth Quarter 2024 Guidance
Slide 20: Kornit Digital. All Rights Reserved.
Kornit Digital. All Rights Reserved.
Slide 21: Thank You!
Kornit Digital. All Rights Reserved. Thank You!