Kornit Digital reports loss in Q2 results

Second quarter revenues of $56.2 million, in line with previous guidance

Second quarter GAAP net loss of $14.3 million; non-GAAP net loss of $7.4 million Double-digit year-over-year impressions and consumables growth across all regions

Successful ITMA tradeshow in Milan, Italy, securing high-quality leads and providing a healthy pipeline for 2024 and beyond

Company issues third-annual Impact Report highlighting progress on its long-term impact strategy and reaffirming commitment to a more sustainable fashion and textiles industry

Kornit Digital reported its results for the second quarter ended June 30, 2023.

“During the quarter, impressions grew at a double-digit pace year-over-year for the second consecutive quarter, driving a steady improvement in capacity utilisation and strong double-digit consumables revenue growth across our customer segments and throughout all our operating regions,” said Ronen Samuel, Kornit’s Chief Executive Officer. “Services revenues again demonstrated exceptional growth, as during the past year, with customers upgrading to our new MAX technology. While system sales volumes are expected to remain modest in the near term due to continued softness in capital equipment spending and lengthening sales cycles, we have taken actions through various initiatives to diversify our customer base, increase operating efficiencies, and build a healthy pipeline for 2024 and beyond.”

Samuel concluded, “We were pleased with our successful participation in the recent ITMA trade show in Milan, where exceptional customer interest in our innovative solutions generated numerous high-quality leads and sales orders. We remain confident that our strategy, product roadmap, and solid balance sheet position us well to generate meaningful, long-term, profitable growth and; continue to expect to approach break-even on an adjusted EBITDA basis for the fourth quarter of this year and aim to deliver profitable growth for the full year 2024.”

Second Quarter 2023 Results of Operations

Total revenue for the second quarter of 2023 was $56.2 million compared with $58.1 million in the prior year period, due primarily to lower systems revenues.

GAAP gross profit margin for the second quarter of 2023 was 33.3% compared with 35.3% in the prior year. On a non-GAAP basis, the gross profit margin was 36.1% compared with 38.6% for the previous year’s period.

GAAP operating expenses for the second quarter of 2023 decreased by 12.8% to $39.6 million compared with the prior year period. On a non-GAAP basis, operating expenses decreased by 16.3% to $34.1 million compared with the prior year period.

GAAP net loss for the second quarter of 2023 was $14.3 million, or ($0.29) per basic share, compared with net loss of

$19.5 million, or ($0.39) per basic share, for the second quarter of 2022.

Non-GAAP net loss for the second quarter of 2023 was $7.4 million, or ($0.15) per basic share, compared with non-GAAP net loss of $15.6 million, or ($0.31) per basic share, for the second quarter of 2022.

Adjusted EBITDA loss for the second quarter of 2023 was $10.7 million compared with adjusted EBITDA loss of $15.7 million for the second quarter of 2022. Adjusted EBITDA margin for the second quarter of 2023 was -19.1% compared with

-27.1% for the second quarter of 2022.