Kornit Digital (KRNT) The 44th Annual William Blair Growth Stock Conference summary

Market trends and industry transformation

• The $2.5 trillion textile fashion industry is undergoing rapid transformation, driven by demand for onshore/nearshore production and fast response to trends.

• Short production runs and SKU proliferation are replacing long-run manufacturing due to consumer desire for uniqueness and rapid trend changes.

• Sustainability is a major focus, with new regulations targeting water use and waste; 30% of apparel produced in Asia is unsold and landfilled.

• On-demand production is emerging as the solution, shifting from forecast-based to order-based manufacturing.

Company positioning and financial outlook

• Over 1,200 global customers and a strong balance sheet with $550M in cash; positive cash flow in Q4 and Q1, with profitability expected for full-year 2024.

• Operating expenses reduced from $35M to $26M per quarter, expected to remain stable through 2024.

• Recurring revenue now represents about 70% of total, with a clear focus on expanding this through new business models.

Technology innovation and product evolution

• MAX technology enables digital print quality and durability on par or better than analog screen printing, opening access to the retail and brand markets.

• Product portfolio now includes high-speed Apollo and Atlas MAX printers, supporting both direct-to-garment and direct-to-fabric applications.

• The Apollo printer can produce 400 garments per hour, replacing multiple analog carousels and significantly reducing labor.