Digital textile print technology manufacturer Kornit Digital said 'continued supply chain turmoil' in the textile industry contributed to a Q4 loss of $35.4m and a full year 2022 GAAP net loss of $79.1m.
Kornit Digital's Apollo DTG system
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| Ronen Samuel CEO Kornit Digital |
“There is no doubt that 2022 was a very difficult year for us, our customers and the global fashion and textile industry,” said Kornit’s CEO Ronen Samuel.
“We took decisive actions throughout the year to adjust operations to reflect market conditions and are positioning ourselves to return to sustainable, profitable growth.
“A solid peak season drove fourth quarter growth in consumables and services revenues.
“In 2023 we will focus on three key areas including: returning to profitability; successfully launching the Apollo and scaling KornitX. We believe Kornit continues to be best positioned to lead the retail supply chain transformation of the fashion and textile industry, enabling us to meaningfully scale the business and achieve our long-term financial objectives.”
Fourth Quarter 2022 Results of Operations
- Total revenue for the fourth quarter of 2022 was $63.3 million, net of $4.3 million attributed to the non-cash impact of warrants, compared to $87.5 million, net of $7.9 million attributed to the non-cash impact of warrants in the prior year period.
- GAAP net loss for the fourth quarter of 2022 was $35.4 million, or ($0.71) per basic share, compared to net income of $1.0 million, or $0.02 per diluted share, for the fourth quarter of 2021.
- Non-GAAP net loss for the fourth quarter of 2022 was $6.6 million, or ($0.13) per basic share, net of $0.09 per basic share attributed to the non-cash impact of warrants, compared to non-GAAP net income of $6.4 million, or $0.13 per diluted share, net of $0.16 per diluted share attributed to the non-cash impact of warrants, for the fourth quarter of 2021.
Full-Year 2022 Results of Operations
- Total revenue for the full-year 2022 was $271.5 million, net of $22.5 million attributed to the non-cash impact of warrants, compared to $322.0 million, net of $25.4 million attributed to the non-cash impact of warrants in the prior year period.
- GAAP net loss for the full-year 2022 was $79.1 million, or ($1.58) per basic share, compared to net income of $15.5 million, or $0.32 per diluted share, for the full-year 2021.
- Non-GAAP net loss for the full-year 2022 was $32.6 million, or ($0.65) per basic share, net of $0.45 per basic share attributed to the non-cash impact of warrants, compared to non-GAAP net income of $36.1 million, or $0.74 per diluted share, net of $0.52 per diluted share attributed to the non-cash impact of warrants, for the full-year 2021.
Kornit’s chief financial officer Lauri Hanover said: "I am pleased to have a more active role with the company and be part of this journey to transform the textile industry. In the fourth quarter, we started to realize benefits from the actions taken to adjust our business operations to the current market dynamics. We will continue to reallocate resources to higher ROI projects that further position the company for sustainable, long-term, profitable growth.”
Kornit Digital Ltd. (NASDAQ: KRNT) is a global market leader in digital textile production technologies. Headquartered in Israel with offices in the USA, Europe, and Asia Pacific, Kornit serves customers in more than one hundred countries and states worldwide. www.kornit.com
Kornit Digital is represented in Australia and New Zealand by Kissel + Wolf
