X
View results on a new page

    Kornit Digital Reports Record Fourth Quarter and Full-Year 2021 Results

    February 15, 2022
    • Record fourth quarter revenue of $87.5 million, net of non-cash warrants impact of $7.9 million; Full-Year 2021 revenue up 67% year-over-year to $322.0 million, net of non-cash warrants impact of $25.4 million
    • Fourth quarter GAAP net income of $1.0 million; Full-Year 2021 GAAP net income of $15.5 million
    • Fourth quarter Non-GAAP net income of $6.4 million, net of non-cash warrants impact of $7.9 million; Full-Year 2021 Non-GAAP net income of $36.1 million, net of non-cash warrants impact of $25.4 million
    • Fourth quarter cash from operations of $9.3 million; Full-Year 2021 cash from operations of $52.5 million
    • Record quarter for consumables and services, driven by a strong peak season
    • Strong system sales in fourth quarter with ATLAS MAX exceeding expectations
    • Entering 2022 with very strong backlog and visibility
    • Major new product introductions starting in first quarter 2022

    ROSH-HA`AYIN, Israel, Feb. 15, 2022 (GLOBE NEWSWIRE) -- Kornit Digital Ltd. (NASDAQ: KRNT), a worldwide market leader in sustainable, on-demand, digital fashionx and textile production technologies, reported today results for the fourth quarter and full year ended December 31, 2021.

    “2021 was a pivotal year for Kornit,” said Ronen Samuel, Kornit Digital’s Chief Executive Officer. “What we accomplished this past quarter, and over the entire year, reflects outstanding execution on the huge market opportunity we are pursuing and the strength of our unique business model. The mega trends that have been fueling our business are intensifying, traditional textile supply chains are completely broken at this point, and the need for digital on-demand, sustainable production continues accelerating.”

    Mr. Samuel added, “We enter 2022 for what will be one of the busiest and most exciting years in the history of Kornit; a year with strong growth and a remarkable pipeline of ground-breaking new product introductions, starting already in the first quarter. We have never been in a better position as a company and we are extremely confident in our ability to meet our $1B revenue goal by 2026, if not before.”

    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 fourth quarters of 2021 and 2020, respectively:

    Fourth Quarter Warrants Impact
     
     Three Months Ended 
     December 31, 
     2021 2020
     Net of
    Warrants
    Impact
     Warrants
    Impact
     Net of
    Warrants
    Impact
     Warrants
    Impact
            
    Revenue$87.5M $7.9M $72.3M $1.8M
    Non-GAAP Gross Margin49.6% 4.2% 51.8% 1.2%
    Non-GAAP Operating Margin5.8% 7.7% 16.3% 2.1%
    Non-GAAP Net Margin7.3% 7.6% 16.0% 2.0%
    Non-GAAP Diluted Earnings Per Share$0.13 $0.16 $0.24 $0.04

    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 full-years 2021 and 2020, respectively:

    Full-Year Warrants Impact
     Year Ended
     December 31,
     2021 2020
     Net of
    Warrants
    Impact
     Warrants
    Impact
     Net of
    Warrants
    Impact
     Warrants
    Impact
            
    Revenue$322.0M $25.4M $193.3M $5.4M
    Non-GAAP Gross Margin48.2% 3.8% 46.7% 1.4%
    Non-GAAP Operating Margin9.4% 6.6% 2.7% 2.6%
    Non-GAAP Net Margin11.2% 6.5% 4.7% 2.5%
    Non-GAAP Diluted Earnings Per Share$0.74 $0.51 $0.21 $0.12

    “We ended 2021 with an outstanding fourth quarter and entered 2022 with a strong backlog and pipeline,” said Alon Rozner, Kornit Digital’s Chief Financial Officer. “We generated record cash flow from operations in 2021, successfully navigated global supply chain pressures, and delivered on our commitments to our customers. We continue to invest in the business to capitalize on the enormous opportunities we see and to accelerate growth. Our good visibility into the business, combined with our experienced team, gives us the confidence that we can deliver on our commitments for the balance of 2022 and into 2023.”

    Fourth Quarter 2021 Results of Operations

    • Total revenue for the fourth quarter of 2021 was $87.5 million, net of $7.9 million attributed to the non-cash impact of warrants, compared to $72.3 million, net of $1.8 million attributed to the non-cash impact of warrants in the prior year period.

    • GAAP net income for the fourth quarter of 2021 was $1.0 million, or $0.02 per diluted share, compared to $5.9 million, or $0.12 per share, for the fourth quarter of 2020.

    • Non-GAAP net income for the fourth quarter of 2021 was $6.4 million, or $0.13 per diluted share, net of $0.16 per diluted share attributed to the non-cash impact of warrants, compared to non-GAAP net profit of $11.5 million, or $0.24 per diluted share, net of $0.04 per diluted share attributed to the non-cash impact of warrants, for the fourth quarter of 2020.

    Full-Year 2021 Results of Operations

    • Total revenue for the full-year 2021 revenue was $322.0 million, net of $25.4 million attributed to the non-cash impact of warrants, compared to $193.3 million, net of $5.4 million attributed to the non-cash impact of warrants in the prior year period.
    • GAAP net income for the full-year 2021 was $15.5 million, or $0.32 per diluted share, compared to net loss of $4.8 million, or $0.11 per basic share, for the full-year 2020.
    • Non-GAAP net income for the full-year 2021 was $36.1 million, or $0.74 per diluted share, net of $0.51 per diluted share attributed to the non-cash impact of warrants, compared to $9.0 million, or $0.21 per diluted share, net of $0.12 per diluted share attributed to the non-cash impact of warrants, for the full-year 2020.

    First Quarter 2022 Guidance

    For the first quarter of 2022, the Company expects revenue to be in the range of $87 million to $91 million, and non-GAAP operating income to be in the range of 7% to 9% of revenue, and EBITDA Margins to be in the range of 9% to 11%. Consistent with past practice, this guidance excludes the impact of the fair value of issued warrants in the quarter.

    The Company noted it expects higher operating margins in the second, third, and fourth quarters of 2022 versus the first quarter, and operating margins in the second half quarters to be in the mid-teens.

    Fourth Quarter and Full-Year 2021 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 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 13726556

    To listen to a replay of the conference call, dial toll-free 1-844-512-2921 or +1-412-317-6671 (international) and enter confirmation code 13726556. The telephonic replay will be available beginning at 11:30 a.m. ET on Tuesday, February 15, 2022, until 11:59 p.m. ET on Tuesday, March 1, 2022. The call will also be available for replay via the webcast link on Kornit’s Investor Relations website.

    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 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; 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 Kornit’s systems; the extent of the Company’s ability to continue to increase sales of Kornit’s systems, ink and consumables; the extent of the Company’s ability to leverage Kornit’s 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; the duration and severity of, and the degree of recovery from, the global COVID-19 pandemic, which could potentially impact once again, in a material adverse manner, the Company’s operations, financial position and cash flows, and those of the Company’s customers and suppliers; 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, 2020, filed with the U.S. Securities and Exchange Commission, or SEC, on March 25, 2021, and to be described in Item 3.D of the Company's Annual Report on Form 20-F for the year ended December 31, 2021, which is expected to be filed with the SEC in March 2022. 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.

    The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Kornit urges investors to review the reconciliation of non-GAAP financial measures to the comparable GAAP financial measures included below, and not to rely on any single financial measures to evaluate its business. A reconciliation for non-GAAP operating income guidance set forth above is not provided because, as forward-looking statements, such reconciliation is not available without unreasonable effort due to the high variability, complexity, and difficulty of estimating certain items such as charges to share-based compensation expense and currency fluctuations which could have an impact on its consolidated results. Kornit believes the information provided is useful to investors because it can be considered in the context of Kornit’s historical disclosures of this measure.

    Non-GAAP Discussion Disclosure

    Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude the impact of share-based compensation expenses, acquisition related expenses, foreign exchange differences associated with ASC 842, amortization of acquired intangible assets, and the related tax effect of the foregoing. The purpose of such adjustments is to provide an indication of 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. However, 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.

    About Kornit

    Kornit Digital (NASDAQ: KRNT) is a worldwide market leader in sustainable, on-demand, digital fashionx and textile production technologies. The company is writing the operating system for fashion with end-to-end solutions including digital printing systems, inks, consumables, and an entire global ecosystem that manages workflows and fulfillment. 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.

     
    KORNIT DIGITAL LTD.
    AND ITS SUBSIDIARIES
    CONSOLIDATED BALANCE SHEETS
    (U.S. dollars in thousands)
      December 31,December 31,
       2021  2020
      (Unaudited)
       
    ASSETS      
    CURRENT ASSETS:      
    Cash and cash equivalents $611,551 $125,777
    Short-term bank deposit  9,168  224,804
    Marketable securities  28,116  13,718
    Trade receivables, net  49,797  51,566
    Inventory  63,017  52,487
    Other accounts receivable and prepaid expenses 14,863  9,178
    Total current assets  776,512  477,530
           
    LONG-TERM ASSETS:      
    Marketable securities $149,269 $71,636
    Deposits and other long-term assets  856  395
    Severance pay fund  357  337
    Deferred taxes  9,551  5,096
    Property,plant and equipment, net  45,046  29,255
    Operating lease right-of-use assets  25,155  21,053
    Intangible assets, net  10,063  7,221
    Goodwill  25,447  16,466
    Total long-term assets  265,744  151,459
           
    Total assets $1,042,256 $628,989
           
    LIABILITIES AND SHAREHOLDERS' EQUITY     
    CURRENT LIABILITIES:      
    Trade payables $47,617 $32,016
    Employees and payroll accruals  22,482  15,022
    Deferred revenues and advances from customers 5,401  27,019
    Operating lease liabilities  5,058  3,957
    Other payables and accrued expenses  17,499  11,613
    Total current liabilities  98,057  89,627
           
    LONG-TERM LIABILITIES:      
    Accrued severance pay $1,543 $1,214
    Operating lease liabilities  21,900  18,688
    Other long-term liabilities  1,203  443
    Total long-term liabilities  24,646  20,345
           
    SHAREHOLDERS' EQUITY  919,553  519,017
           
    Total liabilities and shareholders' equity $1,042,256 $628,989
           


    KORNIT DIGITAL LTD.
    AND ITS SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (U.S. dollars in thousands, except share and per share data)
            
     Year Ended Three Months Ended
     December 31, December 31,
      2021   2020   2021   2020 
     (Unaudited)   (Unaudited)
            
    Revenues       
    Products$282,637  $164,918  $75,955  $61,382 
    Services 39,369   28,413   11,593   10,909 
    Total revenues 322,006   193,331   87,548   72,291 
            
    Cost of revenues       
    Products 132,730   75,040   34,273   24,923 
    Services 37,365   30,490   10,888   10,424 
    Total cost of revenues 170,095   105,530   45,161   35,347 
            
    Gross profit 151,911   87,801   42,387   36,944 
            
    Operating expenses:       
    Research and development, net 43,729   31,464   12,993   9,251 
    Sales and marketing 58,752   36,405   18,036   11,030 
    General and administrative 36,637   26,661   11,665   7,704 
    Total operating expenses 139,118   94,530   42,694   27,985 
    Operating income (loss) 12,793   (6,729)  (307)  8,959 
    Financial income (expenses), net 2,599   3,498   (36)  (929)
    Income (loss) before taxes on income (tax benefit) 15,392   (3,231)  (343)  8,030 
            
    Taxes on income (benefit) (135)  1,552   (1,297)  2,129 
    Net income (loss)$15,527  $(4,783) $954  $5,901 
            
    Basic net income (loss) per share$0.33  $(0.11) $0.02  $0.13 
            
    Weighted average number of shares       
    used in computing basic net       
    income (loss) per share 47,079,358   42,286,275   47,778,868   45,941,153 
            
            
    Diluted net income (loss) per share$0.32  $(0.11) $0.02  $0.12 
            
    Weighted average number of shares       
    used in computing diluted       
    net income (loss) per share 48,600,095   42,286,275   48,926,240   47,226,835 
            


    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)
              
      Year Ended  Three Months Ended
      December 31,  December 31,
       2021   2020    2021   2020 
      (Unaudited)  (Unaudited)
              
    Revenues$322,006  $193,331   $87,548  $72,291 
              
              
    GAAP cost of revenues$170,095  $105,530   $45,161  $35,347 
    Cost of product recorded for share-based compensation (1) (1,355)  (1,056)   (355)  (284)
    Cost of service recorded for share-based compensation (1) (1,105)  (771)   (355)  (203)
    Intangible assets amortization on cost of product (3) (337)  (100)   (176)  (25)
    Intangible assets amortization on cost of service (3) (640)  -    (160)  - 
    Coronavirus one time impact (4) -   (520)   -   - 
    Non-GAAP cost of revenues$166,658  $103,083   $44,115  $34,835 
              
              
    GAAP gross profit$151,911  $87,801   $42,387  $36,944 
    Gross profit adjustments 3,437   2,447    1,046   512 
    Non-GAAP gross profit$155,348  $90,248   $43,433  $37,456 
              
              
    GAAP operating expenses$139,118  $94,530   $42,694  $27,985 
    Share-based compensation (1) (12,673)  (8,209)   (3,454)  (2,239)
    Acquisition related expenses (2) (960)  (648)   (766)  - 
    Intangible assets amortization (3) (433)  (712)   (97)  (90)
    Coronavirus one time impact (4) -   69    -   - 
    Non-GAAP operating expenses$125,052  $85,030   $38,377  $25,656 
              
              
    GAAP Financial income (expenses), net$2,599  $3,498   $(36) $(929)
    Foreign exchange losses associated with ASC 842 336   1,320    638   1,292 
    Non-GAAP Financial income , net$2,935  $4,818   $602  $363 
              
              
    GAAP Taxes on income (benefit)$(135) $1,552   $(1,297) $2,129 
    Tax effect on to the above non-GAAP adjustments 302   706    2,256   360 
    Deferred tax benefit based on an Israeli statutory tax rate (3,035)  (1,259)   (1,675)  (1,869)
    Non-GAAP Taxes on income (benefit)$(2,868) $999   $(716) $620 
              
              
    GAAP net income (loss)$15,527  $(4,783)  $954  $5,901 
    Share-based compensation (1) 15,133   10,036    4,164   2,726 
    Acquisition related expenses (2) 960   648    766   - 
    Intangible assets amortization (3) 1,410   812    433   115 
    Coronavirus one time impact (4) -   451    -   - 
    Foreign exchange losses associated with ASC 842 336   1,320    638   1,292 
    Tax effect of the above non-GAAP adjustments (302)  (706)   (2,256)  (360)
    Deferred tax benefit at the Israeli statutory tax rate 3,035   1,259    1,675   1,869 
    Non-GAAP net income$36,099  $9,037   $6,374  $11,543 
              
    GAAP diluted earning (loss) per share$0.32  $(0.11)  $0.02  $0.12 
              
    Non-GAAP diluted earning per share$0.74  $0.21   $0.13  $0.24 
              
    Weighted average number of shares        
              
    Shares used in computing GAAP diluted net earning (loss) per share 48,600,095   42,286,275    48,926,240   47,226,835 
              
    Shares used in computing Non-GAAP diluted net earning (loss) per share 48,836,435   43,712,110    49,163,475   47,556,867 
              
              
    (1) Share-based compensation        
     Cost of product revenues$1,355  $1,056   $355  $284 
     Cost of service revenues 1,105   771    355   203 
     Research and development 2,685   1,712    875   469 
     Selling and marketing 5,005   2,893    1,354   743 
     General and administrative 4,983   3,604    1,225   1,027 
       15,133   10,036    4,164   2,726 
    (2) Acquisition related expenses        
     General and administrative$960  $648   $766  $- 
       960   648    766   - 
    (3) Intangible assets amortization        
     Cost of product revenues$337  $100   $176  $25 
     Cost of service revenues 640   -    160   - 
     Research and development -   350    -   35 
     Selling and marketing 433   362    97   55 
       1,410   812    433   115 
              
    (4) Coronavirus one time impact        
     Cost of product revenues$-  $527   $-  $- 
     Cost of service revenues -   (7)   -   - 
     Research and development -   (57)   -   - 
     Selling and marketing -   (1)   -   - 
     General and administrative -   (11)   -   - 
       -   451    -   - 
              


    KORNIT DIGITAL LTD.
    AND ITS SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (U.S. dollars in thousands)
     
     Twelve Months Ended Three Months Ended
     December 31, December 31,
      2021   2020   2021   2020 
     (Unaudited)   (Unaudited)
    Cash flows from operating activities:       
            
    Net income (loss)$15,527  $(4,783) $954  $5,901 
    Adjustments to reconcile net income (loss) to net cash provided by operating activities:       
    Depreciation and amortization 6,967   4,711   2,022   1,300 
    Fair value of warrants deducted from revenues 25,423   5,366   7,855   1,802 
    Share-based compensation 15,133   10,036   4,164   2,726 
    Amortization of premium and accretion of discount on marketable securities, net 1,279   395   2,899   147 
    Realized gain on sale of marketable securities (32)  (503)  -   - 
    Change in operating assets and liabilities:       
    Trade receivables, net 1,782   (9,529)  69   (1,596)
    Other accounts receivables and prepaid expenses (5,303)  (2,333)  (3,450)  (718)
    Inventory (13,128)  (15,827)  (9,363)  (6,298)
    Operating leases right-of-use assets and liabilities, net 211   1,265   608   1,265 
    Deferred taxes (4,280)  2,177   (2,414)  3,000 
    Deposits and other long term assets (110)  54   (34)  16 
    Trade payables 14,034   6,864   16,434   6,293 
    Employees and payroll accruals 9,698   6,366   820   2,048 
    Deferred revenues and advances from customers (21,668)  24,286   (6,318)  16,623 
    Other payables and accrued expenses 5,862   4,822   (4,617)  2,702 
    Accrued severance pay, net 309   143   201   62 
    Other long - term liabilities 760   (877)  (496)  (925)
    Loss from sale and disposal of property, plant and Equipment -   139   -   64 
    Foreign currency translation loss on inter company balances with foreign subsidiaries -   (362)  -   (68)
            
    Net cash provided by operating activities 52,464   32,410   9,334   34,344 
            
    Cash flows from investing activities:       
            
    Purchase of property, plant and equipment$(15,301) $(13,489) $(5,877) $(2,731)
    Investment in equity securities (351)  -   (351)  - 
    Acquisition of intangible assets and capitalization of software development costs (130)  (121)  (130)  - 
    Proceeds from sale of property, plant and equipment -   4   -   - 
    Cash paid in connection with acquisition, net of cash acquired (14,991)  (15,535)  -   (476)
    Investment in (proceeds from) bank deposits 215,636   (129,804)  231,935   (172,996)
    Proceeds from sale of marketable securities 1,000   58,532   -   - 
    Proceeds from maturity of marketable securities 13,526   21,706   4,222   1,700 
    Investment in marketable securities (110,458)  (35,923)  (66,148)  (17,381)
            
    Net cash provided by (used in) investing activities 88,931   (114,630)  163,651   (191,884)
            
            
    Cash flows from financing activities:       
            
    Proceeds from public offering, net of issuance cost$341,799  $162,720  $341,799  $- 
    Payment of deferred issuance cost -   (739)  -   (739)
    Exercise of employee stock options 4,818   5,660   677   718 
    Payments related to shares withheld for taxes (2,238)  (596)  (576)  (514)
    Net cash provided by financing activities 344,379   167,045   341,900   (535)
            
            
            
    Foreign currency translation adjustments on cash and cash equivalents$-  $209  $-  $172 
    Increase (decrease) in cash and cash equivalents 485,774   85,034   514,885   (157,903)
    Cash and cash equivalents at the beginning of the period 125,777   40,743   96,668   283,680 
    Cash and cash equivalents at the end of the period 611,551   125,777   611,552   125,777 
            
            
            
    Non-cash investing and financing activities:       
            
    Purchase of property and equipment on credit 2,461   1,904   2,461   1,904 
    Inventory transferred to be used as property and equipment 2,621   990   1,690   167 
    Property, plant and equipment transferred to be used as inventory 4   115   -   64 
    Acquisition costs on credit 73   -   -   - 
    Receipt on account of shares 44   2,929   (94)  160 
    Lease liabilities arising from obtaining right-of-use assets 5,688   -   4,170   - 
            

    Investor Contact:                                                        
    Andrew G. Backman
    Global Head of Investor Relations
    andrew.backman@kornit.com


    Contact Investor Relations

     

    Andrew G. Backman
    Global Head of Investor Relations
    Phone: 201-608-5882 [ext: 3882]
    E-mail: Andrew.Backman@kornit.com