Kornit Digital Ltd (KRNT) Q2 2024 Earnings Call Highlights: Navigating Challenges with ...

GuruFocus News
3 min read

In This Article:

  • Revenue: $48.6 million for Q2 2024.

  • Adjusted EBITDA Margin: Negative 3% for Q2 2024.

  • Non-GAAP Gross Margin: 48.6% for Q2 2024, up from 36.1% in the same period last year.

  • Non-GAAP Operating Expenses: $28 million for Q2 2024, a decrease of 17.9% from $34.1 million in Q2 2023.

  • Adjusted EBITDA Loss: $1.6 million for Q2 2024, improved from a loss of $10.7 million in Q2 2023.

  • Cash Flow from Operations: Positive $4.5 million for Q2 2024.

  • Cash Balance: Approximately $554 million at the end of Q2 2024.

  • Third Quarter Revenue Guidance: Expected to be between $48 million and $52 million.

  • Third Quarter Adjusted EBITDA Margin Guidance: Expected to be in the 1% to 6% range.

Release Date: August 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Kornit Digital Ltd (NASDAQ:KRNT) reported positive cash flow from operations for the third consecutive quarter, indicating improved financial health.

  • The company saw growth in impressions and consumables, suggesting strong utilization of existing capacity by customers.

  • The Apollo system continues to be well-received, with several new orders, indicating strong market demand.

  • The AIC model is gaining traction, providing predictable unit economics for customers and a clearer revenue view for Kornit.

  • Kornit Digital Ltd (NASDAQ:KRNT) expects a stronger second half of 2024, with sales projected to increase by 20% to 25%.

Negative Points

  • The company reported an adjusted EBITDA margin of negative 3%, indicating ongoing profitability challenges.

  • Sales of systems and services declined year-over-year, reflecting potential weaknesses in these segments.

  • The macroeconomic environment remains unstable, delaying investments in capital equipment.

  • An allowance for doubtful debts of approximately $1.5 million was recorded due to a North American customer's bankruptcy filing.

  • The share repurchase program was limited due to a blackout period, and the existing authorization expired in July.

Q & A Highlights

Q: Can you provide an update on the progress of the AIC model with Apollo, and why you are expanding it to Atlas? A: Ronen Samuel, CEO: The AIC model is transformative for the industry, removing barriers to entry by eliminating large initial capital investments. We have signed multiple Apollo systems, with 10 out of 15 expected to be on the AIC model this year. The feedback is positive, leading us to expand the model to Atlas MAX, which targets customers with lower volume needs than Apollo.

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