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Kornit Digital Reports First Quarter 2022 Results

Press release from the issuing company

  • First quarter revenues of $83.3 million, net of non-cash warrants impact of $8.0 million; up 26% year-over-year
  • First quarter GAAP operating loss of $6.9 million; Non-GAAP operating loss of $0.7 million, net of $8.0 million attributed to the non-cash impact of warrants
  • Exceptional quarter for Presto and overall systems sales
  • Excellent adoption and feedback for Atlas Max
  • Record quarter in Asia Pacific; Strong performance in EMEA and Americas
  • Ground-breaking new product introductions unveiled at Kornit Fashion Week - Tel Aviv including Atlas MAX Poly and Kornit Apollo
  • Gearing up for Kornit Fashion Week – London – May 15th – 17th, and FESPA Berlin

ROSH-HA'AYIN, Israel-- Kornit Digital Ltd., a worldwide market leader in sustainable, on-demand, digital fashionx and textile production technologies, reported today results for the first quarter ended March 31, 2022.

“We are pleased to have delivered a good start to the year and are excited about our tremendous period of ground-breaking new product introductions,” said Ronen Samuel, Kornit Digital’s Chief Executive Officer. “During the quarter, we made significant progress with some of the largest and most respected global brands and retailers, supported our global strategic account with major expansion and capacity initiatives, and introduced some of the most innovative and disruptive systems and solutions to the market.”

Mr. Samuel concluded, “The tailwinds driving the industry to on-demand sustainable production are intensifying with an accelerated level of focus to shifting a substantial amount of impressions to nearshore, short-medium run production, addressing evolving online and retail business models. We believe our unmatched portfolio of mass-production MAX solutions, including our recently announced Kornit Apollo - all powered by our unique KornitX platform – place Kornit in a great position to capitalize on these evolving and accelerating market opportunities and trends. While we are certainly not immune to overall macro-economic headwinds and near-term volatility, which we see impacting our second quarter growth, we continue to expect to deliver, ahead of plan, on the $125 million run-rate business we originally targeted for the fourth quarter 2023 and remain confident in our journey to become a billion-dollar business in 2026.”

The following table compares the adverse, non-cash impact that the Company’s outstanding warrants had on the Company’s results of operations during the first quarters of 2022 and 2021, respectively:

First Quarter Warrants Impact
     
  Three Months Ended
  March 31,
  2022   2021
  Net of Warrants Impact   Warrants Impact   Net of Warrants Impact   Warrants Impact
               
Revenue   $83.3M       $8.0M       $66.1M       $3.1M  
Non-GAAP Gross Margin   41.5 %     5.1 %     47.1 %     2.4 %
Non-GAAP Operating Margin   (0.8 %)     8.8 %     9.8 %     4.1 %
Non-GAAP Net Margin   0.2 %     8.8 %     11.7 %     4.0 %
Non-GAAP Diluted Earnings Per Share $ 0.00     $ 0.16     $ 0.16     $ 0.07  
                               

“During the first quarter, we saw good diversification across the business and strong revenue performance in all regions,” said Alon Rozner, Kornit Digital’s Chief Financial Officer. “With a pipeline of opportunities, we continue to strategically invest in the business to support our new industry leading product initiatives and go-to-market strategies to generate profitable, long-term growth. Given our proactive supply chain initiatives, we remain confident in our ability to deliver on all our 2022 customer commitments and continue to leverage our strong balance sheet to secure 2023 requirements.”

First Quarter 2022 Results of Operations

Total revenue for the first quarter of 2022 was $83.3 million, net of $8.0 million attributed to the non-cash impact of warrants, compared to $66.1 million, net of $3.1 million attributed to the non-cash impact of warrants in the prior year period.

GAAP net loss for the first quarter of 2022 was $5.2 million, or $0.10 per basic share, compared to net income of $5.1 million, or $0.11 per share, for the first quarter of 2021.

Non-GAAP net income for the first quarter of 2022 was $0.2 million, or $0.00 per diluted share, net of $0.16 per diluted share attributed to the non-cash impact of warrants, compared to non-GAAP net income of $7.7 million, or $0.16 per diluted share, net of $0.07 per diluted share attributed to the non-cash impact of warrants, for the first quarter of 2021.
Second Quarter 2022 Guidance

For the second quarter of 2022, the Company expects revenue to be in the range of $85 million to $95 million; non-GAAP operating income to be in the range of -2% to +2% of revenue; EBITDA Margins to be in the range of 0% to 4%. Consistent with past practice, this guidance excludes the impact of the fair value of issued warrants in the quarter.

The Company expects revenues in the third and fourth quarters to be stronger than the second quarter. The Company further expects higher operating margins in the second half of the year, with operating margins in the third and fourth quarters in the low to mid-teens.

First Quarter Earnings Conference Call Information

The Company will host a conference call today at 8:30 a.m. ET, or 3:30 p.m. Israel time, to discuss the results, followed by a question-and-answer session with the investment community.

A live webcast of the call can be accessed at ir.kornit.com. To access the call, participants may dial toll-free at 1-877-407-0792 or +1-201-689-8263. The toll-free Israeli number is 1-809-406-247. The conference confirmation code is 13729422.

To listen to a replay of the conference call, dial toll-free 1-844-512-2921 or +1-412-317-6671 (international) and enter confirmation code 13729422. The telephonic replay will be available approximately two hours after the completion of the live call, 11:59 p.m. ET on Wednesday, May 25, 2022. The call will also be available for replay via the webcast link on Kornit’s Investor Relations website

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