Kornit Digital Reports First Quarter 2023 Results

• First quarter revenues of $47.8 million, consistent with prior steering
• First quarter GAAP web lack of $18.9 million; non-GAAP web lack of $13.4 million
• MAX upgrades drive sturdy quarter for Providers
• Double-digit year-over-year impressions progress from a number of strategic prospects
• New Atlas MAX Poly and Direct-to-Material prospects added in key textile areas
• Set to showcase new break-through options at June ITMA tradeshow in Milan, Italy

ROSH-HA`AYIN, Israel, Might 10, 2023 (GLOBE NEWSWIRE) — Kornit Digital Ltd. (“Kornit” or “the Firm”) (Nasdaq: KRNT), a worldwide market chief in sustainable, on-demand, digital style

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and textile manufacturing applied sciences, reported at the moment its outcomes for the primary quarter ended March 31, 2023.

“Promising indicators emerged throughout the first quarter in sure elements of our enterprise, regardless of the persistent macroeconomic pressures,” stated Ronen Samuel, Kornit’s Chief Government Officer. “These indicators included the double-digit year-over-year impressions progress from a number of of our bigger direct-to-garment (DTG) strategic accounts within the personalized design market, and the continued adoption of our MAX know-how. Whereas capability utilization continues to be not optimum, we see immense alternatives unfolding with main demand producing platforms and count on this market to renew progress as general macro situations enhance.”

Mr. Samuel continued, “With our MAX know-how because the cornerstone, we’ve been steadily gaining momentum on our technique in focusing on manufacturers, retailers, and their international fulfillers, all of whom will drastically profit from Kornit’s sustainable on-demand digital options, as a substitute of current analog manufacturing. We had a robust quarter for Atlas MAX Poly, and continued to strengthen our market-leading place in direct-to-fabric (DTF) with Presto MAX. The progress made within the first quarter provides extra proof factors that our MAX know-how is turning into the trade customary and a very good resolution that provides prime retail high quality output, elevated productiveness, higher value efficiencies, and new product capabilities and choices.”

Mr. Samuel concluded, “We’re excited to attend the upcoming ITMA tradeshow in Milan, the place we’ll reveal how


digital manufacturing goes mainstream with sustainable on-demand manufacturing at scale.


We are going to showcase a various vary of recent cutting-edge DTF and DTG options, together with unveiling our extremely anticipated Apollo, which can revolutionize markets historically served by analog. These new methods and options considerably lengthen the breadth of print purposes and supply ranges of automation by no means earlier than seen in any of the markets we serve.”

First Quarter 2023 Outcomes of Operations

• Complete income for the primary quarter of 2023 was $47.8 million in contrast with $83.3 million within the prior yr interval, primarily because of anticipated decrease methods revenues.
• GAAP gross revenue margin for the primary quarter of 2023 was 27.4% in contrast with 40.1% within the prior yr interval. On a non-GAAP foundation, gross revenue margin was 30.2% in contrast with 41.5% within the prior yr interval.
• GAAP working bills for the primary quarter of 2023 decreased by 7.7% to $37.2 million in contrast with the prior yr interval. On a non-GAAP foundation, working bills additionally decreased by 8.0% to $32.4 million in contrast with the prior yr interval.
• GAAP web loss for the primary quarter of 2023 was $18.9 million, or ($0.38) per fundamental share, in contrast with web lack of $5.2 million, or ($0.10) per fundamental share, for the primary quarter of 2022.
• Non-GAAP web loss for the primary quarter of 2023 was $13.4 million, or ($0.27) per fundamental share, in contrast with non-GAAP web revenue of $0.2 million, or $0.00 per diluted share, for the primary quarter of 2022.
• Adjusted EBITDA loss for the primary quarter of 2023 was $14.7 million in contrast with adjusted EBITDA of $1.5 million for the primary quarter of 2022. Adjusted EBITDA margin for the primary quarter of 2023 was -30.8% in contrast with 1.8% for the primary quarter of 2022.
  

Second Quarter 2023 Steerage

For the second quarter of 2023, the Firm expects revenues to be within the vary of $54 million to $59 million and adjusted EBITDA margin between -19% to -27% of income. The steering for income and adjusted EBITDA margin

contains

the affect of the non-cash expense related to the honest worth of the Firm’s warrants.

First Quarter Earnings Convention Name Data

The Firm will host a convention name at the moment at 8:30 a.m. ET, or 3:30 p.m. Israel time, to debate the outcomes, adopted by a question-and-answer session with the investor group.

A reside webcast of the decision

may be accessed at

ir.kornit.com

. To entry the decision, contributors might dial toll-free at 1-888-886-7786 or 1-416-764-8658. The toll-free Israeli quantity is 1 809 468 221. The convention affirmation code is 79530398.

To take heed to a replay of the convention name, dial toll-free 1-844-512-2921 or 1-412-317-6671 (worldwide) and enter affirmation code 79530398. The telephonic replay will likely be obtainable roughly three hours after the completion of the reside name till 11:59 pm ET on Wednesday, Might 24, 2023. The decision may also be obtainable for replay through the webcast hyperlink on Kornit’s Investor Relations web site.

About Kornit Digital

Kornit Digital Ltd. (NASDAQ: KRNT) is a worldwide market chief in sustainable, on-demand, digital style

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and textile manufacturing applied sciences. The Firm is writing the working system for style with end-to-end options together with digital printing methods, inks, consumables, and a whole international ecosystem that manages workflows and achievement. Headquartered in Israel with workplaces within the USA, Europe, and Asia Pacific, Kornit serves prospects in multiple hundred international locations and states worldwide. To study extra about how Kornit Digital is boldly remodeling the world of style and textiles, go to

www.kornit.com

.

Ahead Wanting Statements

Sure statements on this press launch are “forward-looking statements” inside the which means of the Non-public Securities Litigation Reform Act of 1995 and different U.S. securities legal guidelines. Ahead-looking statements are characterised by way of forward-looking terminology akin to “will,” “expects,” “anticipates,” “proceed,” “believes,” “ought to,” “meant,” “steering,” “preliminary,” “future,” “deliberate,” or different phrases. These forward-looking statements embrace, however aren’t restricted to, statements regarding the Firm’s goals, plans and techniques, statements of preliminary or projected outcomes of operations or of economic situation and all statements that deal with actions, occasions, or developments that the Firm intends, expects, initiatives, believes or anticipates will or might happen sooner or later. Ahead-looking statements aren’t ensures of future efficiency and are topic to dangers and uncertainties. The Firm has based mostly these forward-looking statements on assumptions and assessments made by its administration in mild of their expertise and their notion of historic traits, present situations, anticipated future developments and different components they imagine to be acceptable. Essential components that would trigger precise outcomes, developments and enterprise selections to vary materially from these anticipated in these forward-looking statements embrace, amongst different issues: the period and severity of present hostile macro-economic headwinds being attributable to supply-chain delays, inflationary pressures, and rising rates of interest, which have been impacting, and should proceed to affect, in an hostile method, the Firm’s operations, monetary place and money flows, partly because of the hostile affect on the Firm’s prospects and suppliers; the Firm’s diploma of success in growing, introducing and promoting new or improved merchandise and product enhancements together with particularly the Firm’s Poly Professional and Presto merchandise; the extent of the Firm’s skill to consummate gross sales to massive accounts with multi-system supply plans; the diploma of the Firm’s skill to fill orders for its methods; the extent of the Firm’s skill to extend gross sales of its methods, ink and consumables; the extent of the Firm’s skill to leverage its international infrastructure build-out; the event of the marketplace for digital textile printing; the supply of other ink; competitors; gross sales focus; adjustments to the Firm’s relationships with suppliers; the extent of the Firm’s success in advertising and marketing; and people extra components referred to beneath “Danger Elements” in Merchandise 3.D of the Firm’s Annual Report on Type 20-F for the yr ended December 31, 2022, filed with the SEC on March 30, 2023. Any forward-looking statements on this press launch are made as of the date hereof, whether or not because of new info, future occasions or in any other case, besides as required by regulation.

Non-GAAP Dialogue Disclosure

The Firm presents sure non-GAAP monetary measures, on this press launch and within the accompanying convention name to debate the Firm’s quarterly outcomes. These non-GAAP monetary measures mirror changes to corresponding GAAP monetary measures in an effort to exclude the affect of the next: share-based compensation bills; amortization of intangible belongings; acquisition associated bills; restructuring bills; international change variations related to ASC 842; and non-cash deferred tax revenue.

The Firm defines “Adjusted EBITDA” as non-GAAP working revenue (loss), which displays the changes described within the previous paragraph, as additional adjusted to exclude depreciation expense.

The aim of the foregoing non-GAAP monetary measures is to convey the Firm’s efficiency unique of non-cash prices and different gadgets which are thought of by administration to be exterior of the Firm’s core working outcomes. These non-GAAP measures are among the many main components administration makes use of in planning for and forecasting future durations. Moreover, the non-GAAP measures are often used internally to grasp, handle, and consider the Firm’s enterprise and make working selections, and the Firm believes that they’re helpful to buyers as a constant and comparable measure of the continued efficiency of the Firm’s enterprise. The Firm’s non-GAAP monetary measures aren’t meant to be thought of in isolation or as an alternative choice to comparable GAAP measures and must be learn solely along side the Firm’s consolidated monetary statements ready in accordance with GAAP. Moreover, these non-GAAP monetary measures might differ materially from the non-GAAP monetary measures utilized by different corporations.

The reconciliation tables included under current a reconciliation of our non-GAAP monetary measures to essentially the most straight comparable GAAP monetary measures.

Investor Contact:


Andrew G. Backman

International Head of Investor Relations

[email protected]