Kornit Digital (KRNT) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $48.6 million, matching guidance, with adjusted EBITDA margin at -3% and year-over-year growth in impressions and consumables.

• Achieved third consecutive quarter of positive operating cash flow, reflecting cost-saving measures.

• The All-Inclusive Click (AIC) model and Apollo system are gaining traction, with several new orders, expanded pilots, and positive customer feedback.

• Direct-to-fabric segment shows momentum, especially in Asia Pacific, with expansion into new applications like footwear.

• GAAP net loss narrowed to $4.9 million from $14.3 million in Q2 2023; non-GAAP net income reached $1.1 million versus a $7.4 million loss last year.

Financial highlights

• Q2 revenue was $48.6 million, within the $47–$52 million guidance range, with non-GAAP gross margin improving to 48.6% from 36.1% year-over-year.

• Non-GAAP operating expenses fell 17.9% year-over-year to $28 million, reflecting restructuring and lower marketing spend.

• Adjusted EBITDA loss narrowed to $1.6 million from $10.7 million a year ago; margin at -3.4%, near the high end of guidance.

• Positive operating cash flow of $4.5 million in Q2; cash and equivalents at June 30, 2024, were $22.5 million.

• Total current assets at quarter end were $603.2 million.

Outlook and guidance

• Q3 2024 revenue expected between $48–$52 million; adjusted EBITDA margin forecasted at 1%–6%.

• H2 2024 sales anticipated to increase 20–25% over H1, mainly from consumables growth.

• Full-year 2024 expected to deliver positive adjusted EBITDA and positive operating cash flow.

• Impact from AIC model installations to ramp in Q4 and become more significant in 2025.

• Long-term business plans and capital allocation strategy to be discussed at September 10 investor event.