Kornit Digital Reports Fourth Quarter and Full Year 2024 Results

• Fourth quarter revenues of $60.7 million, in line with previous guidance
• Fourth quarter GAAP net income of $2.2 million; non-GAAP net income of $8.7 million
• Successfully delivered positive EBITDA and strong cash flow from operating activities in both Q4 and for the full year 2024
• Breakthrough 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 Maymon

Global Head of Investor Relations

[email protected]  

KORNIT DIGITAL LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
		December 31,			December 31,
		2024			2023
		(Unaudited)			(Audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	35,003		$	39,605
Short-term bank deposit			205,934			235,600
Marketable securities			222,937			57,292
Trade receivables, net			65,459			93,632
Inventory			60,342			67,712
Other accounts receivable and prepaid expenses			25,714			28,546
Total current assets			615,389			522,387
LONG-TERM ASSETS:
Marketable securities			48,086			223,203
Deposits and other long-term assets			10,542			8,209
Severance pay fund			306			283
Property, plant and equipment, net			45,342			50,905
Equipment on lease, net			13,880			-
Operating lease right-of-use assets			19,054			23,782
Intangible assets, net			5,721			7,647
Goodwill			29,164			29,164
Total long-term assets			172,095			343,193
Total assets			787,484			865,580
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables			9,019			6,936
Employees and payroll accruals			13,101			12,121
Deferred revenues and advances from customers			2,339			2,158
Operating lease liabilities			3,311			5,073
Other payables and accrued expenses			16,561			23,814
Total current liabilities			44,331			50,102
LONG-TERM LIABILITIES:
Accrued severance pay			1,051			1,080
Operating lease liabilities			15,065			18,533
Other long-term liabilities			138			198
Total 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 SUBSIDIARIES
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)				(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 SUBSIDIARIES
RECONCILIATION 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 SUBSIDIARIES
CONSOLIDATED 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	)