KRNT - Earnings call transcript Q1 2024

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Operator

Good morning, ladies and gentlemen, and welcome to the Kornit Digital First Quarter 2024 Earnings Conference Call. [Operator Instructions] And this call is being recorded Wednesday, May 8, 2024.I'd now like to turn the conference over to, Jared Maymon, Global Head of Investor Relations. Please go ahead.

Jared Maymon

Thank you, operator. Good day, everyone, and welcome to Kornit Digital's first quarter of 2024 earnings conference call.

of Chief Financial Ronen will Officer.For on first are Hanover, and provide today the Chief Kornit's today's quarter me Executive Samuel; Officer, Lauri comments Joining XXXX. call, Ronen U.S. Securities first XXXX statements Lauri will quarter before of within to begin, the open we remind numbers and we Private provide up Q&A.Before would our meaning outlook for quarter Litigation it I then of second and you other Reform the Act review like that the forward-looking will on made laws securities call. be this These include, relating are of uncertainties to by and those limited to known in and developments not the financial cause occur could differ future.Forward-looking results materially forward-looking that from will address all the or to forward-looking and projected that statements but unknown statements expects subject the implied results to, statements. the statements that risks company's statements plans, operations company condition, strategies, are filings report review actual encourage XX-F XX, by to risk update and could annual company's on identifies SEC cause forward-looking publicly company's you obligation company XXXX, Exchange to the March which with as are specific undertakes and results I on factors with the no the to including Securities statements differ materially.Any the except filed any statements, Form law. made that currently required forward-looking Commission, the

would can Ronen. the turn comparable to I this measures The also posted this the is these Additionally, GAAP Relations non-GAAP release company's now certain found non-GAAP over the most like company call published Investor website.At will company's be reconciliation earnings of call. directly which to to measures on in making on to time, financial Ronen? today, reference measures the the be

Ronen Samuel

margin and in quarter to reported range negative earnings provided to guidance we of welcome the Today, EBITDA XX%, of was continued February. million improvements $XX.X of sales. markets Good pleased I challenging, operations year-over-year cash we signs plan.Overall, XXXX we and is which during to the first adjusted remain QX, everyone, positive and within we saw morning, revenue including of call. our ahead also from impressions, positive generated quarter, that few consumable while utilization, report which our the in am

the We strong beta or our and the of expect us to industry Apollo. addition they as printing placed X expected to piece expect Apollo customer to the mid-size second adding indicated week, addition initial another product an model.First, And These Apollo's programs means positive that these pilot our After on all for systems the year. have end customer beta and Apollo, another Apollo's placed to systems to they beta to Apollo's that this X systems. order planning to This the XXXX, is production This we this on floor. have the X by runs the for for from customers. their is as transition functioning sign customer business order value screen use encouraging is which another the significant digital.Last is Apollo of all-inclusive initial the one customers for cemented permanent both sites. feedback a X new on to on customers the have also a in this, a has reception beta gave in floor.In successfully AIC more in we availability production their announcing by the concluded systems all saw order very click of already overall our and the of January, general an

capacity pipeline a and of for for systems we pipeline's built orders existing of XXXX.As our Apollo and both increase customers, to have now manufacturers working our to the already have new And in XXXX. we a with Beyond result, started beyond. XXXX add strong from beta to are already our customers we contact production

industry pilot last has to Apollo been the we for from our is the this AIC with the model. expressing and announced of feedback helping preference program, factors which positive build the existing the highly pipeline both the new of overall One customers strong quarter.The

even standards, TCO step and initial limited this the success removing that would We in to of its barriers uncertainty unit improving needed not of and traditionally.After with confident organization, our able progress initially barriers overcome we which quality introduction have where and to solutions, scope historically is included improving have the has investment. capital in our to large the been entry advancing These situations customer are we the program to our last make helped economics strong us expansion.

expand us, important, has market program help pilot our the announcement as at in made our predictable customers model FESPA. conversion potential more this macroeconomics especially closely inherent opportunity revenue our core the given Solving and we more our is year, to program to we this which to the Minimum continue give its that in the the key will And field.I we in an us, nature.So a term, transformations solution current than in being entry barriers help strong to and AIC headwinds. new capture due challenging also both to to is us to always model, which our for favorable market these on digital for volatility through would product longer model the expect direct-to-fabric business even like today. monitor this our the our clear the volume of within vision.We been line industry a systems recurring into believe overall, requirements traditional is sight deliver update see on provide we digital and of their also additional us major

plus. of the market, the and feedback revenue new production will year-over-year our to continues application with which our is updates continue to consistency, concentrations.This quarter, be middle our and of productivity both to a conclusion, product placement customer in for geographical and also start same seek the MAX additional of progress the addressable beta digital come quality, Max the key in feedback a Transfer of strong few flexibility, direct-to-fabric the improvements Kornit expected. is The that mix, consistency, to incremental for double-digit certain on the pillar we versatility remarkable footwear applications our strategy in in from initial to sustainability year are applications.One in our direct-to-fabric Kornit we developments.So as are across China opportunity encouraging, report in could and applications production with will customers very saw increase we testing customers our with which XX% continuing to and solution address. in have First, business customers growth in We in impression. products the which we announced this new adds the work served, our to the and our ATLAS to impressions. solution, The our as strategic around brings solution, us I'm you these as we the a drive conditions term.Lastly, that we to diversification customers, remain share challenging complementary for in ink of happy expect medium FESPA for transformation received have expand March. at level encouraging solution as on a that see macroeconomic through We XX% and

we well long-run the the let our necessary place positive that production to on closer put financials our to mission turn and a models me to production attention that and with over for our to transitioning sustainable of signs in look guidance. on-demand first globally.Now, the second call at quarter quarter deliver Lauri Lauri. are forward, ensuring resources we new existing pieces dedicating resonating several all customers.Moving However, both are our and we new and saw products have

Lauri Hanover

Thank and you, Ronen, good to everyone. day

First the quarter $XX.X February. guidance within in revenues were we provided million, range

was which and year-over-year, a margins. more service as grew in decline again consumables by offset expected.Moving quarter, This than sales to systems

initiatives.As year. enable were savings expenses. leverage we improvement we restructuring mix decisive was decrease our the period first return primarily comparatively in our for legacy our and This Total with due to is and gross non-GAAP the million, Included previous growth. a in to quarter the facilities reflects was year-over-year cost a first to and or action we between discussed quarter operating million, cost reduction, a workforce XX.X% expenses our $XX.X expected. margin in expenses XX.X% such, last a to structure margin $X.X The when revenue in to compared higher period meaningful First lower our same non-GAAP and fixed with restructuring and $XX.X reduction align our better took XX.X%, costs year. call, as of from of operating phasing operating $X.X platforms.As out restructuring million of of million a consumables efforts.Looking the attributable charges quarter this consolidation at incurred systems same in last additional restructuring expectations

was the was end improvement full adjusted cash near XX.X% significantly margin securities during for end year loss to this approximately save a million. at EBITDA EBITDA the last of February, range balance, guidance same $XX of We quarter than $X.X year. loss million million expect meaningful versus Adjusted approximately in the quarter of continue adjusted was to XXXX the XXXX negative plan period bank of $XXX quarter reflecting including $XX.X XXXX.First the top provided and year-over-year.Our marketable again, we EBITDA in million in deposits the better first expenses restructuring

in and orders AIC to-date flow collections revenues as commitment expectations. this we to returning the from achievement case, the AIC Also, of now are positive the seen opportunities in in Should by both quarter, the closed sales QX. to the of offering. cash have and is higher with be discussion our ratio strong result the $X was meaning Ronen engagement will a we flow half million. the this similarly it primarily our short-term, to targeted level our second versus year. positive cash of reduce it operations a response qualified underscores likely higher appear generated customers This encouraged of to proportion, model of of convert operating in This focus a There we XXXX.As in the highlighted, higher with a

in committed repurchase our monitoring, this and due are impact managing learning to to from on program cash.Moving large and tightly on pilot to part the share revenues program. short-term We

$X.X to call quarter first We price fees expect guidance. X% be share back share second available XXXX second XX% amount net will paid shares, approximately to Ronen? for of the the under up $XX repurchased the be the to for now our concludes quarter to XXXX, in I per negative EBITDA of and currently With The million For program.Turning over average $XX.XX. revenues to remarks. to open an that, adjusted remains XXX,XXX margin was Approximately between aggregate our Q&A. we spending turn range.That million, of authorized of Ronen previously $XX.X million. for prepared million and $XX it quarter repurchases

Ronen Samuel

to we Lauri. are you, from take Operator, now ready audience. questions Thank the

Operator

of from Your of line first comes Craig-Hallum. Greg the question [Operator Palm Instructions]

Greg Palm

a update then the and AIC year? Have start in start year speaking, the Let's and about for increasing I you maybe of with you talked this you thanks basically your comment, scale utilizing then gives sold out order the X-part a all and question. the is for more Apollo. And of the on Are just model your Next? be just you they of that? this but larger basically what slots? thinking #X, remaining of And one based generally beta And color capacity of clear, But slots feedback? confidence the about sort to customers there. that a to sort this year. are this guess, already later pipeline Is for

Ronen Samuel

refer, to bit a then about the availability. will the I of first Apollo all, and Yes.

the we our for have we are and to that first, all, feedback, totally after. receiving us So, are that of before Apollo really the around excited share the we some going progress of we I from is a understand TAM new Apollo really need we the that customers.First feedback opening about are

For were years, after design. we customized going the

a this And that.So first going This time, customers that massive massive is strategic huge Apollo go are bulk we opportunity to the the to the and using see after intention. the For company we start is have a the forward. opportunity our a apparel. for shift after moving

cemented flow. as very all As X We feedback them. of the the Apollo part production received beta, positive for beta all of the X from

the actually in X is X this a are that by is that, orders we the we customers.As received, this automation, exists productivity, terms customers planet.In better of that of the most requires any the of order getting from shipping from quarter. one First quality, of us for in placed he digital for out already solution another which systems, of solution beta this systems our place one terms than to screen operator. he of the all, breakthrough place it is This already X Apollo, rushing quality, us equal told have this the will only On an productive additional the And another top them year. we are in the there. X feedback or highest far

in placed and next an X year, And days also are have early for discussion top our beta order about So understand third an customer, we to Apollo a place based we already this total, systems that collecting year.Second ago few Apollo. need the talking expect customer, orders. second of we will he he's of on order customer, the customer, next beta to that, with year just them.On

were So And we pipeline open order can looks XXXX.At as look for already we book we customers, have XXXX only not for from strong. the is order, pipeline new promising. already that totally book. very and this very, strong very, say XXXX, existing building and perspective the and really this that very it order that us, stage, looks a the starts for customers for the it's apparel I full XXXX. of see part pipeline to pipeline very from And we're but targeting what The bulk

these We will we be this customers excellence show a game to are in our are center tell join on manufacturer many it's It's all-inclusive working XXXX.I them we're Greg, to click now from changer. in order a multiple which Apollo, the the systems of it customers increase for those drupa to opening game and changer level.As are Apollo the of industry. center year, of inviting for some the the regarding and and beyond, us for weeks Europe parallel systems, we're definitely already can this It's the worldwide game our are the model. on that customers we to with question and delivery acceleration expect model, your production in experience going come And better you, that contact where of are some changer new Kornit. a real a on for event, for X CapEx in opening

Greg Palm

covering way Thanks the with for might lot. do the any I half. to at hinted follow-up the for Great. to AIC, the second some sort Okay. was with and Can a way? talked or that that just quantify second guess affect my know any maybe model model, you everything. in I click of about implications has how

Ronen Samuel

Yes. on I'll touch X areas.

is believe we year. One the see, will the of the second, have we we implication the that that and of this what value AIC that for

So it? to still TAM, really using customers are to but in and the into all-inclusive are intention convert them what of them stage, is so AIC and intention very large to pilot we on used click that printing our They're after model, the it's a model, behind behind increase now it get early customers, The of is is detail, Many long never too digital. much jobs, potential digital. to go runs new digital. analog the to

technologies, to to quality, of looking they're very the range, this but expectation years, all we for them, that barrier really the application customers. now and of TCO we milestone on fit.The of crossed have for introducing program hard meet quality, the market of our the needs of few develop did, to we last them last and worked of the we our ways entry last to digital.In of the terms this print what productivity, in right expanding really those Some is the to further the technology solve believe line

compare uncertainty hoodie of them print. barrier initial that this of know limiting, the analog reducing print, model, One the really every them, investment. every how unique much it entry they initial it of them know it's easy the so impression, cost capital that capital cost exactly the addressing to they With world.It's the of they is will every the economics. taking off risk much it's so how exactly the They investment, to also it for will share

totally opened minimum we and volume, for now are and also traditional they it, for commitment with as volume some we received that that very clear really the we're past committing us in gives that Apollo customers this customers as line course, utilization. as feedback this of a and We better them.This customers couldn't till model new minimum on using model, us, on them model. is a the program.The and provide sight additional us are closed revenue volume that is there the is part some deals, few penetrate, existing now, each them favorable from us It expecting it and specific than revenue is I will Of use this system mentioned, will have model to doors each that of a customers from encouraging. of the with customers the really customer. of from already give predictable more of higher a will It

customers including in revenue. of next and about customers more to in I revenue the where with to than additional actually XXXX, at expect commitment, due what part HX. than you in XX% more us.We we're will higher And is say an today pilot the and the program as between can look We the new our so the ink, at so mentioned, it expecting expect, HX, HX, we if customers. using HX that it's Greg, open, deliver to to in it and they're this quarters year will are as use see in much the higher HX, looking drive utilization course, additional revenue, the to markets of system and you impression will systems Traditionally, be expectations few higher of XX% new program of regarding what I for program, than more and the increase are

in expect in the will XX%.We be XXXX. same HX than higher you saw about HX the also see across to in OpEx, like continue QX, quarters to range all that XX% going in are We to

adjusted promised full positive expect for We call. last year margin, as the EBITDA in also the we

adjusted year cash will be for from positive, we full positive positive margin, We we are be or to be to flow expecting expect EBITDA on the and operations.

and EBITDA, still So from effect, portability, the HX. while to other flow some the operations, there some financial, effects positive, and growth committing we're deliver on cash is the in the the

Operator

Chris Your Securities. next question with comes Moore CJS from

Christopher Moore

Maybe with AIC. we'll the stay

trying model longer-term gross how from impacts perspective, your to just the understand So margins. a

Lauri Hanover

Yes.

to capturing gross didn't of seeing, this least deliver see if first would the margins at we even it that gross we're better the and ensure would we to program program we're into not so of all, So, that hoping have we go down as assumptions look think that same is all margins. can Part model but validate reason we this as a more the those that we pilot at we're going forward. it bolted definitively speak

Christopher Moore

Got about little it's MAX for the of maybe to system, more there? a mentioned the Ronen, the it. Can when any going ATLAS released, you kind around bit be you Plus. talk just expectations specifics and

Ronen Samuel

Yes.

We beta. going at the we're we months So the a are back. say it to few introduced to market in FESPA

feedbacks few running now, We right productivity. very first the are a of encouraging. sites about all, About beta and -- are the

ATLAS and different So and quality is will Plus between on to additional is this production our XX% that customers are a level. and to productivity productivity, customers, the consistency XX% like flexibility running additional -- and it this MAX now.The something beta provide confirmed by

to elements and those of and are So course, quality additional higher level, flexibility application. all a and much we taking consistency of

film the we quality, The use garment. terms solution.Overall, every MAX ATLAS application also a we it's Transfer it and on in are are print that and applications and can that that we complementary and to customers sustainability solution is MAX expect, for are market in for on in is breakthrough bringing, consistency, garment, MAX. directly this on placement you sustainability, are bringing because that mainly main multi-placement to this One we use Transfer. of of what solution a driving to existing MAX a of is the call terms of the a bringing as something this on The our the to mainly differentiator Plus is enables the we on those to ATLAS

doing that to additional and deliver we the upgrading which will from as ATLAS expect more the QX, revenue into upgrades. MAX ATLAS start and We well, expect course, install Plus, ATLAS those HX early base MAX them us we MAX Plus enable to installed for application, have, base, the productivity, more also of

Operator

Our next Brian from line of Blair. question Drab William from comes the

Brian Drab

start that you that just and higher think, prepared to the where reconcile believe, by reconcile versus related you half. half elaborate you I that on could XX% just revenue you just in second AIC that I comment, to total comments your trying be the was me, be Can said half, the Lauri, the some model. made on first to in then, XX% wanted remarks to Lauri's around to those And revenue the for there pressure that second thoughts please? I expect Ronen,

Ronen Samuel

Yes.

the we we is when So, overall. knew and see is for macro overall, exactly perspective, year be started that to from going what the year, year, this a challenging the we

in the higher clear, will revenue systems. from the from will the terms if HX, you of is guiding revenues seeing market new that is, in-consumption, but We the of introducing believe revenue is or introduced HX believe but XX% and we which many -- hand, we those This we much deliver are that take delivering, not into be entering the start model, of our revenue model, be in of we technology. course, and And but each is forecasting from segments. units usually for HX. than we day.So, this new the very will that will the HX that soft, are to initially additional we other we see the So, of of recurring the from seasonality new system, so range we macro XX% one a clicks we're the in We're on all, perspective, business. improved aspects first market still we a the bit to many, HX first expect larger

the all-inclusive, CapEx Some but them the traditional as of on well model. will them be of some on will be

Brian Drab

AIC pressure deliveries of So, units? despite higher that is this XX% having the XX% initial from to

Ronen Samuel

Correct. Correct.

Brian Drab

you for means these more seems correctly? that about up next for I in much it And year full things meaningful more in ramp a expect because, should thinking revenue. mean, you this deliver good pretty Am like and as those that systems, deliver it deliver mean, year 'XX systems means I I systems I that, XXXX,

Ronen Samuel

the will year the deliver us predictability, model. give Absolutely. much the understanding it the they're with is give systems, visibility, start This going stronger a of It XXXX. us will for whole will intention on those what to it clear

Brian Drab

And but those you answer then I XX but caught think is sure it, on this, out as asked not to I'm any months? Greg limitation there I an for your manufacturing units capacity look

Ronen Samuel

So, sorry, Apollo know you know a system. is -- as you new as the

contact ramping them systems we and of So XXXX. the is number earlier. plan We At for for into even XXXX are a already volume, And number units units bring stage, we manufacturing. up our planning number this the trying increase of to are we were the and connected with in specific growth XXXX. accelerate to the of to the manufacturing really

Brian Drab

the States? to please. bulk what planning more, helpful? that customer can of more units, market be are about based Any a by bit you United have little clothing manufacturing? is one what they're serving more would type you mean in X just then And they The And specifics around talk

Ronen Samuel

question, the one. second I'll because Yes, it's start easier an with

customized. not So in printing, the wall, that is analog customized mean in the really the We screen, jobs, be production, used longer-run to bulk by design we market. We're one-off. the what the still only replacing

in we production. run, gear the bulk screen, leader shifting are now design, and it call customized replacing we long entering but to the are We

one we it will So it. disclose of time this at stage, we job that. are to customer customer, is disclosed of for will want the going in and the that I much, I'm type new type after are TAM be going much bigger don't of customer specific and disclose This new sure point after.As it.

prefer that. I answer not on to provide So clear a

Operator

from Our Analyst. of comes the Jim Company from Ricchiuti Research question Needham & line next

Chris Grenga

This is on for Chris Grenga Jim.

with you the the potential for mentioned had You Chinese the opportunity market. footwear saw

and curious seeing the provide maybe some quarter and any Just the you puts by geography. on across regions takes if you this additional of could you're and saw what what color

Ronen Samuel

Okay.

terms the last business, worked in are on few segments our of So, in different diversifying years, we we that the after. going both

And footwear. we're very touched mentioned on were design. you fashion. before, going the apparel, we after focusing decor, technical, home I now And customized As footwear, the much on bulk

terms the technology, also that in technology, We quality, expanded plus, the durability, et big MAX different RSS, We success, of market addressing our Apollo, of type of like those solutions many both Dryer, those on customers. the able support hard the in really MAX, quality, Qualiset, Presto, both being the work customer the terms the cetera. the many, to very

India. potential are the asking, but with in potential We big specific China, and Central Europe. from see We in in this customer new a that will China, growth areas a North Latin of specifically to territories to world.In like type of around us, that for coming we And deliver. America. event customers of entering totally entering the the specific, segment footwear, terms across in were of we're the footwear, see coming Europe retailers We expect brands we see you the America the it becoming and meaningful more course, in

penetrate that new to the more much us And technology, terms in customer, customers. new help and are entering company.We those we of to of today new type in of will in a models are in different segments. geographies diverse We are terms business terms terms of of totally geography,

and light and bright front us. are we happy see today sky that see of where a sky, from really in I'm to now the the we believe So on,

Chris Grenga

to the fielded how the existing economics consumption the or there by thinking to you similar as economics Apollo's time? difference? expect volume shift And are versus would your you incremental you is any platform any what or ATLAS, the Apollo? ink over existing do contribute of versus And mix time, could inks stabilized about field, that over systems an and in when those in of Apollo consider like inks of ink are we And are

Ronen Samuel

a interesting all-inclusive that can stage, the click. both And It's you, the early we very tell first on and an both I Apollo in on question. of all, are

we see way the to careful very how MAX be have Apollo, with ATLAS how the customer of a would much what the printing the I and and magnitude much the printed you. difference, the I'm are customers to a beta on answering click.I need the big on So We on it's average customers tell all-inclusive you can committing very on they're difference. average magnitude

it ATLAS one-to-one of say what or volume compare click least of Plus. and I the comparison X and ink. the MAX than you Apollo, we all-inclusive volume the If impression terms at on terms are And the MAX in in targeting more when on is the times ATLAS volume, to volume

Operator

from Analyst. of comes Erik the Stanley Financial question line next Woodring Morgan Our from

Erik Woodring

guess already into about that kind maybe of we the talked last I'd modest topics for the quarter But brought I on just some half, my to growth. outlook have revenue dig up. peers like of of second the X

Your you're full now year it's decline in that I for so it surprising to revenue very because the pilot going only guidance stage, guess, AIC telling year-over-year. is implies the large. doesn't feel us is

question follow-up, in much to is specific when rest then the actually half my business? AIC look the guess how attribute much the is, we versus revenue year, of I please. And non-AIC the just how the second a I you have So, weakness at can headwind in of

Ronen Samuel

still and we due the working market. going first nicely, on very tough we saw will what early And in close So still It's that it believe continue in all, year. is a softness ink to we impressions in macroeconomics. general, to to we are the because systems QX that HX. AIC it while the for and systems too is all In of going deliver it's we're those see general

that that of that now were sell a to ways all-inclusive Apollo, to Apollo we the also system. of One $X.X around the click.And to planning is million we is understand need do each

year one for each should we enter XXXX that system. the is we what change. that total start how from believe will the see of stronger we that the Apollo, with HX all-inclusive recognizing revenue click we strong come and on you But also moving transition, XXXX there So revenues will I a the this XXXX not pipeline the we and year to all-inclusive much, much short-term are the of substantial the impact will macroeconomics than our seeing that of a the see overall, business. gave the hopefully indication on see, is and and will be HX, substantial we growth with click, to as

Erik Woodring

hear pipeline exactly maybe about we second for to the a to about not Are committed the sure talk, think good just that again, definition how you're make kind just I of these very understand of of sure that understand being order means? orders? about or the get to XXXX, So of non-cancelable pipeline, for about bit pipeline then make I filled And you starting want talking stickiness what converted? but pipeline I to exactly Just that talk we be specific, the some question, want the could define potential pipeline. Can Apollo when when the XXXX. to

Ronen Samuel

commitment verbal of customers the PO. for that order commitment, full, that I'm is already XXXX the from and is books by When have convert it full PO it believe saying pipeline mean of and we a we customers, will it what I in that that, to from is official that some already some seriousness hand,

weeks, all when confidence as high. coming this for fast. saying are process. we But very, the signing XXXX pipeline the few very But on of in We big is in very are full pipeline. is we are our level deals a the It's part

Erik Woodring

environment, long we you it you world standpoint, the help gain comfort just how share? system's this has and what question my that about is possibly is, the than maybe or but understand more And secular? of to perhaps much technology, as of have positive macro back. of can be de-prioritized there priority.So cyclical of rather kind just outside a that weakness technology as Okay. of think much kind maybe this that, type and just for just obviously of lesser of digital about and broader think of the that's how It's concerns is, could consumables, picture utilization this we that, new you're I we me. question, secular but impressions anecdotes a my technology, and could outside from over just Do And Apollo. guess, macro long-term taken any path run, more has to fact bigger maybe become of new forward-looking I lot a how in that a last the just playing about is this commentary is cyclical a and companies it have the related and growth, step about is think is the maybe

Ronen Samuel

an question. excellent That's

the the would I way few the follows. the for of in in larger Look, potential, we in of markets new impressions. much Kornit, last So as like and much last and both customers quarters, bigger worked to entered used it serve, to bigger mentioned markets, answer years, we is of that as number I few for much before, terms than customers to terms totally and

the they really current both come to mostly doesn't the terms to clearly utilization rate customers believe in have.We much customers. capital it constraints very from the trying the improving. that they are see really it's them the lack to of assets increase softness looking in interest can We systems related of and of as install of market, that production, facing, the as overall the our that and see on So utilize some the it base. We potential

know very and we to stronger have those marketplaces that a additional believe that the proposition going we in So that we close in ever today technology. are DTG the after, value is in direct-to-fabric. than both they are We add

would most macroeconomics. So into it refer the I of

Operator

have [Operator a Instructions] from We Barclays. Tavy question Rosner from

Tavy Rosner

I'll apologize. it about short. a AIC. to try question I make have I also the

you so that price perspective, million. Ronen, be mentioned accounting an from that upright the would $X.X First,

amounts? the bundled AIC purchases I and model, service the someone someone if take that's ink recognize how directly. over same many If revenue kind together. years So understand the also would through goes to of you

see take If price, recognized many you sticker AIC? at just to look will over how the years the amount same it the

Ronen Samuel

stage of of are course, understand so So type And information. Tavy, the for first the program. we in and questions, a need the of all, of early modeling clear I on. Those have we

pilot. the end We to of by the are planning share

probably Sometimes QX. of during HX the end the by end,

the the our with see on it about effect are share all to term you detail of we longer NDR We and of forward do business. to planning model and and the how moving do

Tavy Rosner

Okay.

the to focus on I step was call or just I sense. makes which a the of the mean it's of and around I other more the won't around really of which guys remarks products second AIC, have back. Maybe most novelty emphasize the the Apollo just Does granularity. most that taking that focus the was the because So guess same kind were on question, ask Apollo? you of prepared mean, in the

Ronen Samuel

And mentioned is in influence of the big just Apollo. one about a Apollo stuff the each of and volume of revenue. terms has the see potential new you we So that from those

platform. a you So focus MAX, course, this ATLAS to the Plus invest we on we continue MAX now, on to why see and this is mentioned, decided Apollo.Of as ATLAS We this call need. in

in We a Apollo are ATLAS every can and the ATLAS in that customer very, growth there. playing And deliver. also growth, course, even portfolio on Presto can the are I We or generate. why Plus healthy many of supplies midsize mentioned they small have MAX really the terms Apollo. it Presto portfolio.Of the the a strong volume Not There this commit market this playing required digit MAX to play. continue screen customers are and that minimum pipeline the multiple our double to And Plus we strong MAX. very looks a the that doesn't quarter is MAX saw volume Presto required

to used also the the be the Tesoma. we sell DTF, We DTG, continue both starting to but sell dryers, to what are

beta coming with own We we're our the testing. dryers. passed Now

segments, feedback, ATLAS We connected MAX will also we ATLAS interest which developed a we the focusing. an the that the And on positive Poly, the standalone to excellent This dryer Poly.We the we well. Apollo, both there see and are lot are the on also with is And come that in traction MAX drying MAX segment see market. but of solutions ATLAS very receiving have some another solution. the as sports is for these that

Operator

go no time. the Mr. I at There turn this further questions Samuel. would to are Please call back like Ronen to ahead.

Ronen Samuel

your Well, being for much partnership. you thank We very time. here. you appreciate your for Thank

of you very and much, will on to will in you see one-on-one with to We see And very soon, we later soon. all you. a meet you Thank hope discussion. discuss

Operator

concludes Ladies and this Thank today's call. you for gentlemen, participation. conference your

You may now disconnect.

Kornit Digital (KRNT) 8 May 242024 Q1 Earnings call transcript