The following is a summary of the Kornit Digital Ltd. (KRNT) Q4 2023 Earnings Call Transcript:
Financial Performance:
Kornit Digital posted Q4 revenues of $56.6 million, achieving breakeven profitability on an adjusted EBITDA basis.
Strong growth was seen in consumable sales throughout 2023 with double-digit year-over-year growth in Q4.
Full-year 2023 revenues stood at $219.8 million, a drop from $271.5 million in the preceding year due to lower system sales.
The non-GAAP gross margin for Q4 improved to 48.6% from the previous year's 36.4%, and the full-year margin was slightly up at 38.4%.
Operating expenses for Q4 and the full year were reduced to $30.1 million and $127.7 million respectively.
Positive EBITDA was achieved in Q4 and cash balance at the end of the quarter was approximately $556 million.
In 2023, the company repurchased approximately 2.7 million shares, spending around $55.8 million.
Business Progress:
Kornit focused on strengthening its product portfolio, expanding the Direct-To-Fabric business, and optimizing the operating model. Significant strides were made in the DTF market with new ink solutions.
The launch of the Apollo platform created an incremental market for Kornit, specifically in bulk apparel segments.
For 2024, the company intends to focus on key growth drivers such as expanding the Direct-to-Fabric business, new segment penetration, and engaging with key demand generators.
It plans to continue the share buyback initiative with about $90 million allocated for Q1 2024.
The company targets new customer types and new market arenas like footwear, technical garments, and home decor. It also plans to expand into new regions such as India, Turkey, Morocco, and Latin America.
Modest revenue growth is expected in 2024 with high visibility for ink and services, but lower visibility for system sales. The company expects to return to consistent profitability due to efficiency measures and restructuring.
More details: Kornit Digital IR
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