Kornit Digital Reports First Quarter 2021 Results: Revenue Increased 152% Year-Over-Year
Record Shipments of Mass Production Systems
First quarter revenue grew 152% year-over-year to $66.1 million, net of non-cash warrants impact of $3.1 million- First quarter GAAP operating profit of $3.1 million; non-GAAP operating profit of $6.5 million, in each case net of $3.1 million attributed to the non-cash impact of warrants
- Revenue growth and profitability significantly exceeded expectations
- Executing on major global expansion projects with strategic customers
- Introduction of breakthrough MAX technology and ATLAS MAX establishes new standard for sustainable on-demand textile production
Rosh-Ha`Ayin, Israel – Kornit Digital Ltd., a worldwide market leader in digital textile printing technology, today reported results for the first quarter ended March 31, 2021.
“We are excited to share a strong start to the year and outstanding first quarter results. We significantly exceeded our expectations for revenue and profitability, and our outlook for the year is very strong,” said Ronen Samuel, Kornit Digital’s Chief Executive Officer. “As the world moves into the post-pandemic era, the textile industry is in desperate need to accelerate its mass adoption of digital, sustainable, on-demand production. The business opportunity ahead of us is enormous and we are laser focused on introducing continued innovation and scaling our business on all fronts.”
Mr. Samuel continued, “during the second half of last year we discussed engagements on major global expansion projects with multiple strategic accounts, which we are now rolling out and we continue to build Kornit’s brand recognition in the heart of the fashion and home décor industries. The launch of our Max technology establishes a new standard for on-demand fashion and apparel production and significantly expands our addressable market into lucrative new segments. Our first product release, the ATLAS MAX, is just the beginning of revolutionary future new products coming from the MAX line, which will unlock additional huge market segments. Kornit is in a remarkable position and I am more confident than ever in our value proposition, our leadership position, and our dedicated people, as we take another step on our path to become a $500 million revenue run rate business ahead of plan.”
The following table compares the adverse, non-cash impact that the Company’s outstanding warrants had on the Company’s results of operations during the first quarters of 2021 and 2020, respectively:
First Quarter Warrants Impact
| Three Months Ended | ||||||||||
| March 31, | ||||||||||
| 2021 |
2020 |
|||||||||
| Net of Warrants Impact | Warrants Impact | Net of Warrants Impact | Warrants Impact | |||||||
| Revenue | $66.1M | $3.1M | $26.2M | $0.6M | ||||||
| Non-GAAP Gross Margin | 47.1% | 240bps | 33.0% | 141bps | ||||||
| Non-GAAP Operating Margin | 9.8% | 409bps | (40.1%) | 295bps | ||||||
| Non-GAAP Net Margin | 11.7% | 400bps | (34.0%) | 282bps | ||||||
| Non-GAAP Diluted Earnings Per Share | $0.16 | $0.07 | ($0.22) | $0.02 | ||||||
“We are very pleased with our strong first quarter results, which were driven by a record quarter for mass production system shipments,” said Alon Rozner, Kornit Digital’s Chief Financial Officer. “Our engagements on major global expansion projects with strategic accounts and our growing business with net new accounts continues to drive our backlog to record levels, positioning us very well to execute on our short term and long-term goals.”
First Quarter 2021 Results of Operations
- Total revenue for the first quarter of 2021 was $66.1 million, net of $3.1 million attributed to the non-cash impact of warrants, compared to $26.2 million, net of $0.6 million attributed to the non-cash impact of warrants in the prior year period.
- GAAP net income for the first quarter of 2021 was $5.1 million, or $0.11 per diluted share, compared to net loss of $10.1 million, or $0.25 per basic share, for the first quarter of 2020.
- Non-GAAP net income for the first quarter of 2021 was $7.7 million, or $0.16 per diluted share, net of $0.07 per diluted share attributed to the non-cash impact of warrants, compared to non-GAAP net loss of $8.9 million, or $0.22 per basic share, net of $0.02 per diluted share attributed to the non-cash impact of warrants, for the first quarter of 2020.
Second Quarter 2021 Guidance
The Company will discuss the details of its guidance live during its earnings conference call, which will be available for replay via webcast at ir.kornit.com, as referenced below.
First Quarter 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 for the investment 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. The confirmation code is 13719064.
To listen to a telephonic replay of the conference call, dial toll-free 1-844-512-2921 or +1-412-317-6671 (international) and enter confirmation code 13719064. The telephonic replay will be available beginning at 11:30 a.m. ET on Tuesday, May 11, 2021, until 11:59 p.m. ET on Tuesday, May 25, 2021. The call will also be available for replay via the webcast link on Kornit’s Investor Relations website.
