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Kornit Digital Reports Fourth Quarter and Full Year 2024 Results

1. Q4 2024 revenue hits $60.7 million, a year-over-year increase. 2. Kornit reports positive EBITDA and strong cash flow for 2024. 3. The Apollo platform delivered significant enhancements in production. 4. Full-year net loss reduced from $64.4M in 2023 to $16.8M.

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$28.2502/13 02:05 PM EDTLatest Updated
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Why Bullish?

Strong quarterly performance and reduced losses indicate recovery. A similar past example includes when improved earnings led to stock price increases.

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Key financial metrics reflect recovery and growth potential, significantly influencing investor decisions.

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Immediate results bolster market confidence, influencing short-term investor sentiment. Historical price movements show quick responses to positive earnings reports.

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KRNT
February 12, 2025 07:15 ET  | Source: Kornit Digital Ltd Fourth quarter revenues of $60.7 million, in line with previous guidanceFourth quarter GAAP net income of $2.2 million; non-GAAP net income of $8.7 millionSuccessfully delivered positive EBITDA and strong cash flow from operating activities in both Q4 and for the full year 2024Breakthrough innovations and continued momentum across our markets set the stage for profitable growth in 2025 ROSH-HA`AYIN, Israel, Feb. 12, 2025 (GLOBE NEWSWIRE) -- Kornit Digital Ltd. (“Kornit” or the “Company”) (Nasdaq: KRNT), a global leader in sustainable, on-demand, digital fashion and textile production technologies, today reported its results for the fourth quarter and full year ended December 31, 2024. “Our fourth quarter performance was fueled by a successful peak season and growing impressions across our key customers,” said Ronen Samuel, Kornit’s Chief Executive Officer. “One of the most exciting highlights of Q4 was the Apollo platform’s performance. Having delivered 15 Apollo systems throughout the year, with most becoming fully operational during this critical period, customer feedback has been excellent, reinforcing Apollo’s role as a key enabler of mass-scale digital production.” Mr. Samuel continued that “at the beginning of 2024, we set clear objectives: return to positive EBITDA, generate meaningful cash flow, and establish a scalable, disciplined model that fuels long-term expansion. Thanks to the dedicated efforts of our teams, I am pleased to report that we not only delivered on these goals but also introduced game-changing innovations, strengthened our market position, and expanded into new strategic adjacencies.” Mr. Samuel concluded, “As we stated in our last call, 2025 is about execution—translating the strong foundation built in 2024 into scalable, profitable growth, strengthening our market leadership and driving the industry forward with our innovative solutions and business models.” Fourth Quarter 2024 Results of Operations Total revenue for the fourth quarter of 2024 was $60.7 million compared with $56.6 million in the prior year period, due primarily to growth in products revenue.GAAP gross profit margin for the fourth quarter of 2024 was 51.3% compared with 25.8% in the prior year period. On a non-GAAP basis, gross profit margin was 55.1% compared with 48.6% in the prior year period.GAAP operating expenses for the fourth quarter of 2024 were $32.3 million compared with $42.4 million in the prior year period. On a non-GAAP basis, operating expenses decreased by 6.9% to $28.0 million compared with the prior year period.GAAP net income for the fourth quarter of 2024 was $2.2 million, or $0.05 basic and diluted per share, compared with net loss of $22.9 million, or ($0.48) basic and diluted per share, for the fourth quarter of 2023.Non-GAAP net income for the fourth quarter of 2024 was $8.7 million, or $0.18 basic and diluted per share, compared with non-GAAP net income of $3.8 million, or $0.08 per basic share, for the fourth quarter of 2023.Adjusted EBITDA for the fourth quarter of 2024 was $8.4 million compared with adjusted EBITDA of $0.2 million for the fourth quarter of 2023. Adjusted EBITDA margin for the fourth quarter of 2024 was 13.8% compared with 0.3% for the fourth quarter of 2023. Full Year 2024 Results of Operations Total revenue for the full year 2024 was $203.8 million compared with $219.8 million in the prior year, due primarily to lower systems revenue.GAAP gross profit margin for the full year 2024 was 45.0% compared with 30.5% in the prior year. On a non-GAAP basis, gross profit margin was 48.6% compared with 38.4% in the prior year.GAAP operating expenses for the full year 2024 were $129.1 million compared with $154.5 million in the prior year. On a non-GAAP basis, operating expenses decreased by 14.0% to $109.8 million compared with the prior year.GAAP net loss for the full year 2024 was $16.8 million, or ($0.35) basic and diluted per share, compared with net loss of $64.4 million, or ($1.31) basic and diluted per share, for the full year 2023.Non-GAAP net income for the full year 2024 was $10.1 million, or non-GAAP basic and diluted net income per share was $0.21 and $0.20, respectively, compared with non-GAAP net loss of $20.4 million, or ($0.42) basic and diluted per share, for the full year 2023.Adjusted EBITDA for the full year 2024 was $0.3 million compared with adjusted EBITDA loss of $30.9 million for the full year 2023. Adjusted EBITDA margin for the full year 2024 was 0.2% compared with –14.0% for the full year 2023. First Quarter 2025 Guidance For the first quarter of 2025, the Company expects revenues to be in the range of $45.5 million to $49.5 million and adjusted EBITDA margin between –9% to –4% of revenue. Fourth Quarter and Full Year 2024 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 investor 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. To listen to a replay of the conference call, dial toll-free 1-844-512-2921 or 1-412-317-6671 and enter confirmation code 13751316. The telephone replay will be available approximately three hours after the completion of the live call until 11:59 pm ET on February 26, 2025. The call will also be available for replay via the webcast link on Kornit’s Investor Relations website. About Kornit Digital Kornit Digital (NASDAQ: KRNT) is a worldwide market leader in sustainable, on-demand, digital fashion, and textile production technologies. The company offers end-to-end solutions including digital printing systems, inks, consumables, software, and fulfillment services through its global fulfillment network. Headquartered in Israel with offices in the USA, Europe, and Asia Pacific, Kornit Digital serves customers in more than 100 countries and states worldwide. To learn more about how Kornit Digital is boldly transforming the world of fashion and textiles, visit www.kornit.com. Forward Looking Statements Certain statements in this press release are “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,” “anticipates,” “continue,” “believes,” “should,” “intended,” “guidance,” “preliminary,” “future,” “planned,” or other words. These forward-looking statements include, but are not limited to, statements relating to the Company’s objectives, plans and strategies, statements of preliminary or projected results of operations or of financial condition and all statements that address activities, events, or developments that the Company intends, expects, projects, believes or anticipates will or may occur in the future. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. The Company has based these forward-looking statements on assumptions and assessments made by its management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Important factors that could cause actual results, developments and business decisions to differ materially from those anticipated in these forward-looking statements include, among other things: the duration and severity of adverse macro-economic headwinds that were caused by inflationary pressures and higher interest rates, which have impacted, and may continue to impact, in an adverse manner, the Company’s operations, financial position and cash flows, in part due to the adverse impact on the Company’s customers and suppliers; the Company’s degree of success in developing, introducing and selling new or improved products and product enhancements including specifically the Company’s Poly Pro and Presto products, and the Company’s Apollo direct-to-garment platform; the extent of the Company’s ability to consummate sales to large accounts with multi-system delivery plans; the degree of the Company’s ability to fill orders for its systems and consumables; the extent of the Company’s ability to increase sales of its systems, ink and consumables; the extent of the Company’s ability to leverage its global infrastructure build-out; the development of the market for digital textile printing; the availability of alternative ink; competition; sales concentration; changes to the Company’s relationships with suppliers; the extent of the Company’s success in marketing; and those additional factors referred to under “Risk Factors” in Item 3.D of the Company’s Annual Report on Form 20-F for the year ended December 31, 2023, filed with the SEC on March 28, 2024. Any forward-looking statements in this press release are made as of the date hereof, whether as a result of new information, future events or otherwise, except as required by law. Non-GAAP Discussion Disclosure The Company presents certain non-GAAP financial measures, in this press release and in the accompanying conference call to discuss the Company’s quarterly results. These non-GAAP financial measures reflect adjustments to corresponding GAAP financial measures in order to exclude the impact of the following: share-based compensation expenses; amortization of intangible assets; restructuring expenses; foreign exchange differences associated with ASC 842; and non-cash deferred tax income. The Company defines “Adjusted EBITDA” as non-GAAP operating income (loss), which reflects the adjustments described in the preceding paragraph, as further adjusted to exclude depreciation expense. The purpose of the foregoing non-GAAP financial measures is to convey the Company’s performance exclusive of non-cash charges and other items that are considered by management to be outside of the Company’s core operating results. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Furthermore, the non-GAAP measures are regularly used internally to understand, manage, and evaluate the Company’s business and make operating decisions, and the Company believes that they are useful to investors as a consistent and comparable measure of the ongoing performance of the Company’s business. The Company’s non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with the Company’s consolidated financial statements prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies. The reconciliation tables included below present a reconciliation of our non-GAAP financial measures to the most directly comparable GAAP financial measures. Investor Contact:Jared MaymonGlobal Head of Investor RelationsJared.Maymon@Kornit.com        KORNIT DIGITAL LTD.AND ITS SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(U.S. dollars in thousands)   December 31, December 31,   2024  2023  (Unaudited) (Audited)ASSETS    CURRENT ASSETS:    Cash and cash equivalents $35,003 $39,605Short-term bank deposit  205,934  235,600Marketable securities  222,937  57,292Trade receivables, net  65,459  93,632Inventory  60,342  67,712Other accounts receivable and prepaid expenses  25,714  28,546Total current assets  615,389  522,387     LONG-TERM ASSETS:    Marketable securities  48,086  223,203Deposits and other long-term assets  10,542  8,209Severance pay fund  306  283Property, plant and equipment, net  45,342  50,905Equipment on lease, net  13,880  -Operating lease right-of-use assets  19,054  23,782Intangible assets, net  5,721  7,647Goodwill  29,164  29,164Total long-term assets  172,095  343,193     Total assets  787,484  865,580     LIABILITIES AND SHAREHOLDERS' EQUITY    CURRENT LIABILITIES:    Trade payables  9,019  6,936Employees and payroll accruals  13,101  12,121Deferred revenues and advances from customers  2,339  2,158Operating lease liabilities  3,311  5,073Other payables and accrued expenses  16,561  23,814Total current liabilities  44,331  50,102     LONG-TERM LIABILITIES:    Accrued severance pay  1,051  1,080Operating lease liabilities  15,065  18,533Other long-term liabilities  138  198Total long-term liabilities  16,254  19,811     SHAREHOLDERS' EQUITY  726,899  795,667     Total liabilities and shareholders' equity $787,484 $865,580         KORNIT DIGITAL LTD.AND ITS SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS(U.S. dollars in thousands, except share and per share data)  Three Months Ended Year Ended December 31, December 31,  2024   2023   2024   2023  (Unaudited) (Unaudited) (Audited)        Revenues       Products$47,711  $43,573  $148,086  $161,045 Services 12,985   13,012   55,739   58,741 Total revenues 60,696   56,585   203,825   219,786         Cost of revenues       Products 18,088   23,125   61,697   91,516 Services 11,479   18,888   50,366   61,313 Total cost of revenues 29,567   42,013   112,063   152,829         Gross profit   31,129   14,572   91,762   66,957         Operating expenses:       Research and development, net 9,781   12,033   41,578   50,060 Sales and marketing 15,200   17,909   58,413   66,836 General and administrative 7,358   12,449   29,086   37,592 Total operating expenses 32,339   42,391   129,077   154,488         Operating loss (1,210)  (27,819)  (37,315)  (87,531)        Financial income, net 3,849   5,424   22,350   24,150 Income (loss) before taxes on income  2,639   (22,395)  (14,965)  (63,381)        Taxes on income  423   539   1,835   970 Net income (loss)$2,216  $(22,934) $(16,800) $(64,351)        Basic income (loss) per share$0.05  $(0.48) $(0.35) $(1.31)                Weighted average number of shares       used in computing basic net income (loss) per share 47,180,390   48,231,916   47,482,820   49,160,266                 Diluted income (loss) per share$0.05  $(0.48) $(0.35) $(1.31)                Weighted average number of shares       used in computing diluted net income (loss) per share 48,222,449   48,231,916   47,482,820   49,160,266      KORNIT DIGITAL LTD.AND ITS SUBSIDIARIESRECONCILIATION OF GAAP TO NON-GAAP  CONSOLIDATED STATEMENTS OF OPERATIONS(U.S. dollars in thousands, except share and per share data)            Three Months Ended Year Ended  December 31, December 31,   2024   2023   2024   2023   (Unaudited) (Unaudited)         Revenues$60,696  $56,585  $203,825  $219,786                   GAAP cost of revenues$29,567  $42,013  $112,063  $152,829 Cost of product recorded for share-based compensation (1) (524)  (545)  (2,018)  (2,356)Cost of service recorded for share-based compensation (1) (409)  (447)  (1,703)  (1,758)Intangible assets amortization on cost of product (2) (176)  (260)  (936)  (1,053)Intangible assets amortization on cost of service (2) (160)  (160)  (640)  (640)Restructuring expenses (3) (1,067)  (11,501)  (1,981)  (11,590)Non-GAAP cost of revenues$27,231  $29,100  $104,785  $135,432                   GAAP gross profit$31,129  $14,572  $91,762  $66,957 Gross profit adjustments 2,336   12,913   7,278   17,397 Non-GAAP gross profit$33,465  $27,485  $99,040  $84,354                   GAAP operating expenses $32,339  $42,391  $129,077  $154,488 Share-based compensation (1) (4,151)  (4,653)  (18,035)  (18,475)Intangible assets amortization (2) (88)  (93)  (350)  (550)Restructuring expenses (3) (105)  (7,579)  (862)  (7,785) Non-GAAP operating expenses $27,995  $30,066  $109,830  $127,678                   GAAP Financial income, net $3,849  $5,424  $22,350  $24,150 Foreign exchange losses associated with ASC 842 (169)  1,579   388   378 Non-GAAP Financial income, net$3,680  $7,003  $22,738  $24,528                   GAAP Taxes on income $423  $539  $1,835  $970 Non-cash deferred tax income  -   88   -   666 Non-GAAP Taxes on income $423  $627  $1,835  $1,636                   GAAP Net income (loss)$2,216  $(22,934) $(16,800) $(64,351)Share-based compensation (1) 5,084   5,645   21,756   22,589 Intangible assets amortization (2) 424   513   1,926   2,243 Restructuring expenses (3) 1,172   19,080   2,843   19,375 Foreign exchange losses associated with ASC 842 (169)  1,579   388   378 Non-cash deferred tax income -   (88)  -   (666)Non-GAAP net income (loss)$8,727  $3,795  $10,113  $(20,432)         GAAP diluted income (loss) per share$0.05  $(0.48) $(0.35) $(1.31)         Non-GAAP diluted income (loss) per share$0.18  $0.08  $0.20  $(0.42)         Weighted average number of shares                Shares used in computing GAAP diluted net income (loss) per share 48,222,449   48,231,916   47,482,820   49,160,266          Shares used in computing Non-GAAP diluted net income (loss) per share 49,868,143   50,094,714   49,341,794   49,160,266                   (1) Share-based compensation        Cost of product revenues$524  $545  $2,018  $2,356  Cost of service revenues 409   447   1,703   1,758  Research and development  1,255   1,329   5,310   5,759  Sales and marketing 1,212   1,635   6,228   6,689  General and administrative 1,684   1,689   6,497   6,027   $5,084  $5,645  $21,756  $22,589 (2) Intangible assets amortization         Cost of product revenues$176  $260  $936  $1,053  Cost of service revenues 160   160   640   640  Sales and marketing 88   93   350   550   $424  $513  $1,926  $2,243          (3) Restructuring expenses        Cost of product revenues$818  $5,569  $1,683  $5,658  Cost of service revenues 249   5,932   298   5,932  Research and development  -   860   235   880  Sales and marketing -   2,744   190   2,930  General and administrative 105   3,975   437   3,975   $1,172  $19,080  $2,843  $19,375          KORNIT DIGITAL LTD.AND ITS SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS (U.S. dollars in thousands)     Three Months Ended Year Ended December 31, December 31,  2024   2023   2024   2023  (Unaudited) (Unaudited)Cash flows from operating activities:               Net income (loss)$2,216  $(22,934) $(16,800) $(64,351)Adjustments to reconcile net loss to net cash used in operating activities:       Depreciation and amortization 3,313   3,287   13,047   14,700 Restructuring and other charges 1,172   19,080   1,172   19,080 Fair value of warrants deducted from revenues -   4,841   3,273   13,842 Share-based compensation 5,084   5,645   21,756   22,589 Amortization of premium and accretion of discount on marketable securities, net (230)  83   (389)  756 Realized loss on sale and redemption of marketable securities (45)  93   (164)  134 Change in operating assets and liabilities:       Trade receivables, net 8,673   6,557   28,173   (19,220)Other accounts receivables and prepaid expenses 1,795   (5,040)  2,832   (6,492)Inventory 2,875   4,521   3,005   11,028 Operating leases right-of-use assets and liabilities, net  (266)  1,544   (502)  (179)Deposits and other long term assets  (674)  (103)  (2,333)  (2,282)Trade payables 3,856   (2,902)  2,150   (6,491)Employees and payroll accruals 1,020   (2,294)  2,456   (1,089)Deferred revenues and advances from customers 798   (1,339)  181   (4,990)Other payables and accrued expenses (2,950)  (8,357)  (9,020)  (10,547)Accrued severance pay, net 6   (14)  (52)  (152)Other long-term liabilities  20   (74)  (60)  (1,018)Net cash provided by (used in) operating activities 26,663   2,594   48,725   (34,682)        Cash flows from investing activities:               Purchase of property, plant and equipment (897)  (934)  (4,394)  (7,006)Production of equipment for lease to customers (1,023)  -   (10,746)  - Proceeds from (investment in) short-term bank deposits, net (36,533)  (15,505)  29,666   39,433 Proceeds from sales and redemption of marketable securities 12,500   -   22,994   7,240 Proceeds from maturities of marketable securities 12,012   6,300   56,641   20,522 Investment in marketable securities (16,772)  (9,526)  (62,673)  (33,977)Net cash provided by (used in) investing activities (30,713)  (19,665)  31,488   26,212                 Cash flows from financing activities:               Exercise of employee stock options  594   -   716   293 Payments related to shares withheld for taxes  (402)  (608)  (1,476)  (1,045)Repurchase of ordinary shares (75,000)  (19,004)  (84,055)  (55,770)Net cash used in financing activities (74,808)  (19,612)  (84,815)  (56,522)                        Decrease in cash and cash equivalents (78,858)  (36,683)  (4,602)  (64,992)Cash and cash equivalents at the beginning of the period 113,861   76,288   39,605   104,597 Cash and cash equivalents at the end of the period$35,003  $39,605  $35,003  $39,605                         Non-cash investing and financing activities:               Purchase of property and equipment on credit  247   314   247   314 Inventory transferred to be used as property and equipment and Equipment on lease 3,156   -   4,732   531 Property, plant and equipment transferred to be used as inventory 47   131   367   865 Lease liabilities arising from obtaining right-of-use assets 623   (2,875)  (448)  2,934      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 Year Ended  December 31, December 31,   2024   2023   2024   2023   (Unaudited) (Unaudited)         GAAP Revenues $60,696  $56,585  $203,825  $219,786          GAAP Net income (loss)   2,216   (22,934)  (16,800)  (64,351)Taxes on income  423   539   1,835   970 Financial income  (3,849)  (5,424)  (22,350)  (24,150)Share-based compensation  5,084   5,645   21,756   22,589 Intangible assets amortization  424   513   1,926   2,243 Restructuring expenses  1,172   19,080   2,843   19,375  Non-GAAP Operating income (loss)   5,470   (2,581)  (10,790)  (43,324)Depreciation  2,889   2,774   11,121   12,457 Adjusted EBITDA $8,359  $193  $331  $(30,867)

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