Kornit Digital reports second-quarter results
Kornit Digital Ltd., a worldwide market leader in digital textile production technologies, reported results for the second quarter ended June 30, 2021.
Total revenue for the second quarter of 2021 was $81.7 million, net of $6.6 million attributed to the non-cash impact of warrants, compared to $37.4 million, net of $0.8 million attributed to the non-cash impact of warrants in the prior-year period, the company said. GAAP net income for the second quarter of 2021 was $5.6 million, compared to a net loss of $4.6 million for the second quarter of 2020.
“Our second-quarter results capped off what was a remarkable first half of the year for Kornit,” said Ronen Samuel, Kornit Digital’s Chief Executive Officer. “The Company executed across the board, delivering on massive global expansion projects with top strategic customers and driving growth from new customers, both in the DTG and DTF product lines. We began shipping our Atlas Max mass production systems after very successful beta testing, and are seeing great momentum for KornitX, as evidenced by our recently announced partnership with Canva, the largest online design software and content provider in the world.
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 second quarter of 2021 and 2020, respectively:
| Second Quarter Warrants Impact | |||||||
| Three Months Ended | |||||||
| June 30, | |||||||
| 2021 | 2020 | ||||||
| Net of Warrants Impact |
Warrants Impact |
Net of Warrants Impact |
Warrants Impact |
||||
| Revenue | $81.7M | $6.6M | $37.4M | $0.8M | |||
| Non-GAAP Gross Margin | 48.2% | 386bps | 44.1% | 123bps | |||
| Non-GAAP Operating Margin | 12.5% | 652bps | (6.8%) | 235bps | |||
| Non-GAAP Net Margin | 12.8% | 649bps | (3.6%) | 228bps | |||
| Non-GAAP Diluted Earnings Per Share | $0.22 | $0.13 | ($0.03) | $0.02 | |||
“We are very pleased with our exceptionally strong second quarter results,” said Alon Rozner, Kornit Digital’s Chief Financial Officer. “All revenue components including mass production systems, consumables and services increased, due in part to continued momentum with our global strategic accounts, while all regions posted year-over-year and sequential growth. Our gross margin expansion was again driven by a favorable product mix shift, as well as continued profitability from our services business, while overall profitability benefited from our scale and operating leverage. We are very proud of our strong second-quarter performance as it further validates our strategy and is a result of all the hard work and dedication of the entire Kornit team.”
In other Kornit Digital news, the company announced the acquisition of all associated assets of Somerville, Massachusetts-based Voxel8. Voxel8’s advanced additive manufacturing technology for textiles allows for digital fabrication of functional features with zonal control of material properties, in addition to utilizing high-performance elastomers adhering to inkjet technology,, according to Kornit.
“Voxel8’s innovative technologies and talent will help us accelerate the execution of our 4.0 strategy to digitize sustainable, on-demand textile production,” said Samuel. “With this advanced and proven 3D technology, we will disrupt the business of fashion, empowering completely new creative decorative concepts and never-before-seen functional textile applications, while exploring new lucrative opportunities in the functional apparel and footwear markets.”