Kornit Digital Reports Fourth Quarter and Full Year 2024 Results

Associated Press

12-02-2025

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.
Jared Maymon
[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
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
Non-GAAP Operating income (loss) 5,470 (2,581) (10,790) (43,324)
Depreciation 2,889 2,774 11,121 12,457