Kornit Digital Ltd. · NASDAQ:KRNT
Kornit Digital — Q1 2024 Earnings Presentation
22 slides from Kornit Digital's earnings presentation, May 8, 2024
Slide 1: Kornit Digital First Quarter 2024 Earnings Conference Call
Kornit Digital (NASDAQ: KRNT) First Quarter 2024 Earnings Conference Call Supporting Slides May 8, 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: First Quarter 2024 Recap
First Quarter 2024 Recap ― Revenues of $43.8 million and adjusted EBITDA margin of negative 18% ― Within the guidance range provided in February ― Generated positive cash from operations for the first quarter of 2024, ahead of plan ― Overall, while our market remains challenging, we saw a few positi
Slide 6: Apollo Update
Apollo Update ― Customers gave very positive feedback overall on the Apollo system ― Cemented Apollo as a permanent piece of their production floor ― One of these customers has already placed an order for an additional 4 Apollos, and expects to order another 2 more systems this year for a total of s
Slide 7: Apollo Update Continued
Apollo Update Continued… ― Last week another beta customer placed an order for their second Apollo ― Beyond beta customers, built pipeline of orders from new and existing customers in 2024 ― We have already started to add to our pipeline for 2025 ― We are now working with our contract manufacturers
Slide 8: Pilot All-inclusive Click (AIC) Program
Pilot All-inclusive Click (AIC) Program ― Feedback overall from our industry has been highly positive ― Both new and existing customers expressing their preference for this model ― Introduction of this program, even with its initially limited scope, helped us make progress ― AIC model can solve barr
Slide 9: Direct-to-Fabric Update
Direct-to-Fabric Update ― Strategic pillar of our digital transformation strategy ― Drives revenue diversification across product mix, applications, and geographies ― Saw direct-to-fabric production strong double- digit growth year-over-year in ink and impressions ― We are continuing to progress wit
Slide 10: Atlas MAX Plus Beta Testing
Atlas MAX Plus Beta Testing ― Both increase in productivity of around 15%-20% ― Improvements in production consistency, flexibility, and additional applications ― New MAX Transfer solution announced in FESPA in March ― Solution brings same level of consistency, quality, and sustainability customers
Slide 11: Concluding Remarks
Concluding Remarks ― Macroeconomic conditions remained challenging to start the year, as expected ― Saw several positive signs that our new products and models are resonating well ― We are dedicating attention and resources to ensuring that we have put all necessary pieces in place to deliver on our
Slide 12: Financial Highlights
Financial Highlights Kornit Digital. All Rights Reserved.
Slide 13: Revenues
Revenues ― Q1 2024 revenues were $43.8 million ― Within the guidance range of $43-$48 million ― Consumables grew year-over-year for Q1 2024 ― Again, more than offset by a decline in systems and services sales, as expected Q1 Revenues ($M) Revenues By Region $47.8 12% $43.8 24% 64% 2023 2024 Americas
Slide 14: Gross Margins
Gross Margins ― Q1 2024 non-GAAP gross margin of 37.5% compared to 30.2% in Q1 2023 ― Improvement primarily attributable to a better mix between comparatively higher-margin consumables and systems and lower fixed costs due to restructuring efforts Non-GAAP Gross Margin 37.5% 30.2% 2023 2024 Kornit D
Slide 15: Operating Expenses
Operating Expenses ― Q1 2024 Non-GAAP Operating Expenses: $27.1 million, down from $32.4 million in Q1 2023 ― Reduction in expenses reflects cost-savings and restructuring initiatives ― Included workforce reduction, consolidation of facilities, and phasing-out legacy platforms ― Continue to expect r
Slide 16: P&L KPI's
P&L KPI’s Q1 2023 Q1 2024 Non-GAAP Operating Loss ($18.0) ($10.7) Adjusted EBITDA Loss ($14.7) ($7.8) Non-GAAP Net Loss ($13.4) ($5.3) Non-GAAP Basic/Diluted EPS ($0.27) ($0.11) GAAP Net Loss ($18.9) ($13.2) GAAP Basic/Diluted EPS ($0.38) ($0.28) $ in millions, except per share amounts Kornit Digita
Slide 17: Balance Sheet & Cash Flow
Balance Sheet & Cash Flow ― At quarter end, cash, including bank deposits and marketable securities, was ~$551 million ― Q1 2024 cash generated from operating activities: ~$4.0 million ― Accounts receivable decreased ~$12.9 million from Q4 2023 ― Inventories decreased ~$0.7 million from Q4 2023 ― Tr
Slide 18: Impacts of AIC Pilot Program
Impacts of AIC Pilot Program ― We are encouraged by the response to date of the AIC offering ― Both a higher level of engagement with targeted customers and higher ration of sales closed with AIC model versus our expectations ― Qualified opportunities now in discussion appear likely to convert to or
Slide 19: Share Repurchase Program
Share Repurchase Program ― Repurchased ~424,000 shares for a total of $7.9 million for the fist quarter of 2024 ― Average price paid per share net of fees was $18.55 ― Approximately $11.4 million remains available for share repurchases under program Kornit Digital. All Rights Reserved.
Slide 20: Second Quarter 2024 Guidance
Second Quarter 2024 Guidance ― Q2 2024 Revenues: ― Expected to be in the range of $47 million to $52 million ― Q2 2024 Adjusted EBITDA margin: ― Expected to be in the range of negative 10% to 0% 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 March 31, 2024 2023 (Unaudited) GAAP Revenues $ 43,776 $ 47,778 GAAP Net Loss (13,199) (18,931) Taxes on income 259 194 Financ
Slide 22: Thank You!
Thank You! Kornit Digital. All Rights Reserved.