KRNT - Earnings call transcript Q2 2024

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Operator

Good morning, ladies and gentlemen, and welcome to the Kornit Digital Second Quarter 2024 Earnings Conference Call. [Operator Instructions] This call is being recorded on Wednesday, August 7, 2024. I would now like to turn the conference over to Mr. Jared Maymon, Global Head of Investor Relations.

Jared Maymon

Thank you, operator. welcome Call. Digital's and XXXX Quarter everyone, Conference Earnings day, to Second Kornit of Good

today Chief me Kornit's Joining are Chief Lauri Samuel; Financial Hanover, and Officer. Executive Officer, Ronen

second review the Q&A. quarter Ronen comments will outlook, For third provide second XXXX. it before today's then on we numbers call, open the will Lauri quarter our provide quarter and of for up

but of Securities will limited of within would and the operations include, Act in we remind statements occur forward-looking of to securities that statements statements I U.S. results this company's condition, will financial relating XXXX developments forward-looking and all like made the the future. statements begin, to are not Litigation the or laws that Private projected Before expects that you meaning on plans, company Reform strategies, address These other be to the call.

those required could to Commission, statements. uncertainties to company's Forward-looking are company's law. factors differ unknown risks review undertakes Exchange March to the Form identifies statements materially. Any risk which SEC by actual to and filings publicly that obligation differ report no statements made statements on from annual by results the as to and the with XX-F could are Securities cause results forward-looking known on encourage you implied and that XX, forward-looking currently, except including specific the and cause company subject filed materially I the with XXXX, the any update forward-looking

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

Ronen Samuel

range million generated call. of we Thanks, EBITDA Jared. efficiencies quarter reported XXXX to we and third conference second $XX.X marking pleased our welcome which flow we and from positive consecutive year-over-year May. I'm and reflects EBITDA is negative provided to in margin that quarter, Good second last our the the of cash an the earnings in positive implemented Today, X%, everyone, we cash our guidance flow. morning, announce adjusted cost revenue boost to saving several improved quarter cash the from The over quarters. measures of operations within

increase is our impressions view During unstable of environment the continue the second equipment, the on-demand we to adapting, to in becoming the an quarter, improve our our results SKUs delaying Despite Speed, and our and are driving stabilize remaining on-time in our growth industry. in macroeconomic in to delivery, shift witnessing that we again we and supporting and year. fashion utilize of second we a customers are the growth variety At saw crucial. ability production just This this Kornit, capital not half capacity. consumable, are investments pivotal in available are business leading.

predictable Apollos these of customers the our model. we market, designed significant received help as Apollo of model ownership. pipeline dynamic improvements driving large removes believe barriers initial printing model through for released customers additional capital customers. We changer AIC deals, This ordered with and and view X by QX, productivity for It volatility in several our screen cost. robust unit Two us. is both the and is and AIC on a the existing for working cost several years. with revenues, Simultaneously, is mid-sized in continues and recently In and will actively for model are regarded solutions Apollo this over experienced cash how a profitability, innovative The XXXX for our pipeline and each offer we runs. best in customers clearer be as solutions groundbreaking our these eliminating with XXXX total solution have CapEx Our past Kornit given they especially our economics, specifically of times. market to new valuable the we investment the in program for to are game know the AIC to and well-received succeed AIC much flow, impression exactly providing with which are replacing system. The entry orders is

our Like positive we the feedback the traction customers, the the existing piloting model, model, to and is feedback our both potential and from Atlas Atlas this model MAX pipeline and initial on gaining of momentum. AIC strong MAX with AIC receiving is Apollo orders system. decided we AIC have new the begin Given seen model quarter and the strong

Moving Direct-to-Fabric. to

This are traction Portugal and quarter, Pacific. in key regions, in Asia growth in as as we textile-production viewed India, to particularly see such future regions drivers for Key our Direct-to-Fabric. China, Peru, continue significant

developing working progress making footwear are quarters. solution in industry, coming to a are the we and diligently in have for production ready for the we applications Additionally,

the XX%, Given compared sequential expected these primarily second first, stronger driven to to a trends, to by increase in consumables. growth sales we with by anticipate half continue XX% to

allocation our few and on-demand fashion customers next in in quarters, including hold on roadmap, the in We the will will experiences their that Vegas also on strategy, and we the of participation in the at will expect have full plan adjusted our September positive of with in the to a Printing we our investor Trade the event, this sizable investor It XXXX. our year since conjunction excited Day positive over XXth market event operating will our product share feature we Las on be entirely our flow topics a who generators, direction key years. This announce the XXXX. I'm recent all-inclusive demand Show. many for event At event cash expand EBITDA Investor for discussed market. outlook first capital an United and basis go-to-market program, on the long-term to strategy,

will cash also see continued orders hope consumable, in an second demo person, second and there. In business eye in link. growing significant are the we who flow a the in show the beyond. Click improvement in year-over-year registration the those generation. see and our enabling All-Inclusive For of and enhancements, a quarter, XXXX the conclusion, half we improve achieved are profitability and of you Apollo environment, utilization. tour to an and improvement invitation to attend Please system. Apollo P&L with the impressions, macroeconomic of the floor We official Despite to new These and us and challenging able stabilize combined backlog offer interest to model, during of out in we keep for

call to for closer look Lauri at third turn over guidance me let the and Lauri? a QX our Now quarter. results the for

Lauri Hanover

you, everyone. Thank Ronen, to good and day

guidance the quarter $XX in we $XX were May. range Second of $XX.X provided revenues million million, million to within

This as quarter, to growth, systems consumables contributed year-over-year expected. sales services while declined and

margins. to Moving

non-GAAP that our products conclusion period and strategic first compared global higher purchases the between in largest restructuring benefited as is fixed $XXX in same our with covered primarily the is as systems a agreement, reduced year. again margin better once gross and note of quarter to warrant costs account. existing efforts. It from important the XX.X% second million of margin quarter mix which tranche of year-over-year by XX.X% the The was last also services improvement margin our to consumables well comparatively Second attributable to due

include warrants. to not this As any impact to services quarter related and existing Per $XXX an products new purchases this did from those eligible categorized business such, million would warrants. expenses as be agreement, up of for

phasing last decrease The of year. million, in a expenses. including our significant repeat quarter expenses platforms. operating a that reduction, expenses marketing show, the non-GAAP did savings second remember last operating $X.X workforce year restructuring trade our in Total at Also, second meaningful expenses XX.X% the out of $XX quarter or were and which consolidation at facilities, not reflects included Looking same with million this cost from and associated period quarter. ITMA legacy our $XX.X the million initiatives, participation of reduction a

allowance the related customer Code. XXXX. approximately U.S. event, North operating of petitions lower million operating to debts to continue expenses year non-GAAP versus this Bankruptcy voluntary XXXX under $X.X the $XX filed to this million Despite Chapter full for approximately Lastly, includes quarter's year an of XX target a full doubtful American that we expense be

profitability. to Moving

in EBITDA to adjusted than is the EBITDA May, improvement end EBITDA quarter negative the for margin was quarter $X.X of of continuing was X% the X.X%, high meaningful significantly better loss negative in we million loss same year-over-year. second million, year. range the XXXX again of Adjusted $XX.X XX% to provided of a Second reflect adjusted which last the guidance near period

robust balance, quarter-end Our our marketable $XXX balance million. and with increasing approximately sheet securities deposits bank including remains to cash

savings cost remain million. $X.X cash We again operating During of the once full XXXX. generating strong focused flow our the second benefits positive year with of on restructuring we from focus quarter, a reflects positive on generated for achievement initiatives, coupled the This operations and cash flow collections.

the the family the expecting for Apollo of the As favorable our the feedback systems, signed Click, deliver customers Ronen expect and we on currently of to towards begin In we AIC piloting end of program the and highlighted, offering decision quarter, be pilot new interest of the year. for response we this XX this those this on AIC to in year, we Atlas remains X of units AIC, we program, model. are delivery second systems the strong. target Apollo Based All-Inclusive the made received XX quarter. Overall, to AIC encouraging from

the our in from a For the that generated a our to over in the investor an of of upfront we on rather model again customer time at plan impressions sale. AIC, produces Atlas to family system at September. I'd like provide update progress time revenue than systems on emphasize the is event AIC

begin such, on model this XXXX. the year the these systems towards to AIC benefits and ramp into shipped of will of end P&L As

expect As revenue Apollo approximately these of a annually. million agreements generate we each $X reminder, to AIC of

shares existing were share a blackout unable repurchase under repurchase for XXb-XX were quarter. plan Moving our trading second to and period of to program. our subject the We most to

XX,XXX limited a purchase repurchases activity our shares The paid authorization As approximately expired recently share changed an share in regarding Israeli approval price process program net $XX.XX. July. our was share per at of The well. of existing average result, repurchase for to as fees

We are new currently this navigating process.

XXth. updating mentioned, the investor capital As forward on strategy event upcoming allocation investor look we our to September our community at planned for Ronen

quarter up X% I Ronen? third range. That million expect $XX X% turn to remarks. Turning the adjusted of be the concludes to in currently $XX With for XXXX for Q&A. to revenues it third that, over call guidance. open and our between be to now Ronen EBITDA to prepared margin million, will quarter to and We the back

Ronen Samuel

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

Operator

from Group. Capital question Craig-Hallum Palm Instructions] comes line [Operator first the from Mr. Greg Our of

Greg Palm

seeing Atlas you're with AIC bit with But that what more maybe customer decision? customers, starting to confidence the if to an can more on certain this maybe does model, do broadening importantly, Maybe Apollo? type little weren't program is you right you that this initially And potential of you this a moving us with? of progress you're expecting out gives this maybe give with now update just mean

Ronen Samuel

changer remind are with is this new for markets industry. encouraging. bring we to game And program AIC are initial The a volume To customers penetrate Kornit. were this into we that targeting receiving incremental from very model everyone, the feedback and

today, Lauri we have Apollos. signed on -- of As multiple we mentioned, as

to All-Inclusive that systems, hear XX will customers they of on our from benefit planning year. XX is this see about are We systems the be massive this deliver this XX we Out for program. Click. What Apollos

massive need cash the barrier Kornit. predictable unit in aligning to profitability It capital to and provide removes them for They entry. for this revenues view it with all, invest economics. Also, revenues, can investment don't allocate the benefit beginning. for this investment their large They stuff, other expenses of the for and a amount the clears is flow. First for

taken more expect This the We more actually starting will more will be We XX% it QX revenue. it. that each one The basis P&L next will and of is in unit in more, XX on and generate Apollos and are to assume be annual will impression year, revenue. on that account that be produce to CapEx terms each going an the program. Think impressions about of for into AIC produce into $X that ink versus install more year. million to it going very needs meaningful this of them we about

it high. for very, minimum we decided also minimum commitment cannot Atlas and with The don't Those commit reason massive are the the So is Atlas decided customers Apollo have MAX going that open MAX open why that's solution. to are and right for many a receiving have we we enough because positive, in MAX. we the is it customer volume after is meeting very that feedback volume to therefore, the the high Atlas have too customers commitment, some a is Apollo. that to addressed the the minimum is they

to and consumable mainly screen a now, replacement and And of right and have of volumes the again, we will we are So customers. type everyone, portfolio incremental volume revenue remind different moving to address of forward. and going which solutions market, Kornit after impression the accelerate for approaching different growth

Greg Palm

Appreciate on the And That's to it. strategic you situation, just Got helpful. all did your that. in generate clear, then just from be the quarter. revenue warrant global

Is But impact forward, or only if Did purchases the you'll saying right? going you'll that new that? on you confirm a could that warrant receive are understand you have -- I the are systems? If right? only

Ronen Samuel

Yes.

see fleet in MAX than global of see We the in, later. course, see supply. and the of as mentioned To they growing And growing we it our hopefully, increased regarding supplies also previous strategic upgrade. -- their get nicely. they fleets impressions. now growth these we'll XXXX, very results the for remind And they the in looking very, So in customers, first the were consumption We sooner I of everyone, growth of impression. call, are all, and

the was warrant, the tranche it's existing the terms strategic up products customer $XXX tranche. completed In And million. the million. to first about strategic of -- first to customer global products our and second And is agreement warrant it the up and about was new $XXX tranche with our

will new they to products, will the product as buy then go they able continue second Apollos the account the utilize and with i.e., to global Prestos, strategic if or tranche. So be But well. current grow

Greg Palm

relationship like obviously really solid Okay. still said based QX? But what on to the and it sounds be for clear, is you growing

Ronen Samuel

Absolutely. Absolutely.

Operator

Needham. Your the Mr. from James comes line next from of question

Chris Grenga

This is Chris Jim. Grenga for on

could expect, upon in there? what I'm difference or elaborate the see there's any Direct-to-Garment, cadence more If systems pace the between about difference bit there, recovering, curious to spoke a Direct-to-Fabric. you just seeing You if you're about whether you and recovery of any Direct-to-Fabric?

Ronen Samuel

demand the moving of Yes. Certainly, we is Totally customers. Direct-to-Garment fashion type and there in on-demand choosing the of event market on-demand. And different be and is that the a overall the the this see between Direct-to-Fabric. is markets massive fashion Overall, is to to consumer difference that is theme what retailers, hear will different crucial. on-time also market event shorter we is to speed shorter, of -- today going to have. What of like SKUs. that and The to the investor is we SKUs getting Variety market brands, are delivery have and from lifespan generators more would is crucial. product every and

of reflects Direct-to-Fabric moving and shorter driving both onshore. also offshore nearshore our the can is see in business, Direct-to-Garment and in production runs. And course, it to we to all So DTG, business. from This, of also

So going and excitement are value on actually to the the the we unique industry. see applications which Direct-to-Fabric, that we is bring huge value after can new

industry massive it's footwear very and analog quite it's produced. in that is manual and One the This being and is footwear. of them way mentioned growing, we that it's

to market. We disrupt this potential have the

producers, of excitement. brands We are there's with terms a few both in lot and major this fulfiller market, working in of and

are are going prove coming a to other the exciting after. finalize it's that to and solution the We it standard to in that the it in verticals launch planning industry, quarters. There to our and we process scale we of are are meeting

are one One into to vertical, September. during of investor decor, dive them and another event them is going is we technical home in our deep

and being much only the much to runs. needs specific customers focusing like analog and we in in the really Those a can faster utilizing going in continue both Portugal. are territories deliver process, producing longer able we Of in terms SKUs a time, runs, longer are countries there. start that design, sustainable like the speed fabrics of print China, run like for versus the also system much We products to shorter the are there, more reactive and into fashion. replacing way market, in seeing we to our on see and growth And India, relative course, to focusing larger Peru, the

Chris Grenga

expectation second for to had your be you revenues in And XX%, up XX%. reiterated the Great. half

least the QX right, that, my growth at midpoint year-over-year. to doing a So I'm return if estimate, shows be this will

had half the consumables You increase continue expectation sequentially the year. your mentioned for for to back to of

to Just you what on wondering could QX. that expectation there. could return in that the Is if if the all-in you see for you driven? consumables does wondering of -- click? growth elaborate Just on Is also include elaborate that impact

Ronen Samuel

Yes.

we gave for what mentioned we have -- So guidance, and for indication HX. course, we of the gave QX,

in to see for now indication clearly HX, growth revenue HX. of terms right mentioned XX% versus we of we very a that about XX% In

very year quarters. continue positive and we are We to that the for coming deliver to be to cash full said clearly positive the planning also for flow EBITDA

in is this financials. of So terms the

the In will of the growth major that it a we're growth expecting, the terms ink. of part of come from

As that other ink in stronger usual, of seasonality and stronger terms much HX business than is any the QX quarter. HX than is of our much

you impact the growth in to of supplies both continue QX So will QX. and see of the the

to going margin You in both of have QX. for systems improvement a we deliver in and expect that, that sight we QX to gross of in top in in QX. And good some them see and QX of should are on line

in United, orders for event come We in impact we QX of QX, QX. end in in the as for of important the front units installing us the start planning have are it -- collect Printing an that which meaningful and planning September, but those the to the now QX right of and those is which And we the impact and well you All-Inclusive QX will XXXX. of seeing will Click QX, of during are impact of units to install

Operator

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

Brian Drab

slightly just on last the sales around to point wanted guidance. discussion question and a finer just that put I last maybe

here half that a the the second half. -- XX% if a are then [ -- my little ] in And gave second us to up So for $XXX do to we'd quarter. But understanding enough [ XX% and of us sales first given dollars the over you've math. million $XXX ] to half, numbers third range the for have some you from that's guidance

looking quarter million fourth for the that is So I we're at from want a $XX $XX to that significant quarter it? that sales I at step-up in just and you're And guess, just from math sure in make third ranges you million. doing you're about. looking fourth to with Am doing spoke math reasons Ronen, that I the to quarter, line how right

Ronen Samuel

Yes, the will to growth math less repeat from side again, most is I like come ink the system that correct. from side. the And of would and the

time Although mentioned, we all-inclusive, I cannot will recognizing of the systems, We're, generated. few the over the be system on it. them recognize of impression, course, we as the we're will on install which click being installing on when a quite

Brian Drab

into move year you I'm in first then that might might like momentum? that have that this have building then you'll, you you units on into downtick revenue a it typical we and you're you putting the see how quarter. Or just you're we Okay. that course, feeling comment because -- do XXXX and about dynamic be into And any different the and as seasonal you'll feel as go of market further base this wondering -- orders. more you AIC from XXXX, now, the make have can

Ronen Samuel

So it's about too early XXXX. to discuss

how view in detail view share our In get how to see at we the share the growing the event. we you in and high we it to going are are our the longer-term all-inclusive a coming going of see all course, we of do years. from going do we level, now, longer-term into with month to Of and are

event, to recurring, the forward. is Of to course, move going are into model, the a share let's it we going into will direction the our one, which of which you be SaaS-based and moving investor the intention XXXX. start leave an beginning is But seeing more business important of to impact to

Brian Drab

analog and the then example And how are you only for companies a that develop just this across the can getting us use printing do because AIC, couple an printers where you -- you and screen give business Okay. historically And important, I with only screen think are or you that's maybe working? of on, across more? their And can seeing of historically? so comment Apollo the is examples attention

Ronen Samuel

Yes.

moving first them screen few forward closed traditional the of And printers screen with is have digital no already all, So printers, We we very absolutely. a of which answer the digital. introduced are experience. investment. pipeline with but with some they to is that quality think first productivity, they and, the initial didn't the They of about cost heard the it, don't course, there, being -- of strong

the on terms and quality better many of like shorter. the limit. technology, interest. close. getting will the to Now event, meeting totally that, every much, we're are market, that quality, many, of all, needs need screen, in lot to than to And many make the lengths analog. Apollo, It's And the different photographic technology, screen surprising to see them design, and of are you good a starting is the the have a of with come job door of only potential MAX The our a doing fabrics much that those event. versus top one the operator. Many first to this And really And a we investor actually opening that reaching we sense design, screen. of printers. And is productivity run in reaction we door almost a machine, of the

We with will customers. panel have also a

So Apollo. some to moving the volume analog from really of them to digital

now Apollo one deliver the really the going are productivity systems. both we -- is year TCO on to to this XX know, that operator it's changer, game model, we in intention calls of And last system mentioned AIC terms -- a barrier. And you previous reduced the the terms and run in as and only So with quality. -- of both combining we manpower

it XXXX, of double good. looks collecting the systems Next of year, we the for planning already and number very, into are orders market. the We're to very Apollo

make promised deliver. now issue need to that demand. We this We At I not looks is product see what is the up. to ramp the need right the it -- that fantastic. to deliver sure So stage,

Brian Drab

want to my agreements. name have strategic, sensitive also people And of -- on and But some -- using hitting questions lost may Amazon. track XXX congrats in times just it's just saying to $XXX warrant mentioned of close by I in the like, just congrats global million cumulative sales with you're these but on this, the to but

As Greg, And real regarding I I get it questions think, the to business a on with alluded your -- how often -- is. global strategic that's customer milestone.

$XXX So congrats on hitting million.

Ronen Samuel

much. you very Thank

Operator

Your the Woodring comes of Mr. Morgan from from next question Stanley. line Erik

Erik Woodring

just touch to that specific. I even the again, here, to on focused a on maybe have of X, more be just number questions XQ are

what Ronen, adjusted think, of roughly consensus. recent effectively to context quarter ITMA digits. Obviously, EBITDA at midpoint an from in the year-over-year growth guiding is below double in of a perhaps the since and significant December improvement margin guiding XX% I especially you're low performance, the

have from What and down? that or gain that us I we of today, should why following that call, whether and in about covering a in look I and then that talking now, issues follow-up. the those XX guide can on at be that days and additional have won't an confidence all that here say, from guidance help we believe we analysts the sit we take And we further macro are we're comments commentary, guess, As guidance? guidance company, us away your

Ronen Samuel

market the But utilization getting business addressing. follows. very a question. a through excellent addressing design. years, the We of a is different business of customized were the customized to went This were that was will we design. an most I Kornit, X.X tough Look, put today we way the direct big level. and of change mainly finally, it on Kornit it's The in No, as our top

confident. about new replacement, But versus bit We decor, know the cetera. et totally be about if Let's it's the are home addressing the if this it will year, sports, markets what? And talking past fashion, talk future. maybe you screen the the if it's it's a

XX of year. the year? in we to So year, the what beginning did beginning we the we In this are deliver said this say going of that Apollos

we are are a ever are deliver have already in disruptive most This we is We product focusing we said? AIC we we the maybe market. What XX We It's of there system collecting and this full a of beginning confidence will model it. XXXX. about that on in remember the the And X product, that's confusion. spending in else that the out beginning to said for was going lot the started orders be I and now all-inclusive. been of talking Apollo year. breakthrough of on

for of be are Atlas. We of year very beginning say clearly to can on will said the we delivering are is going incremental we of million or we opening entered in continue the Apollos we the range more that that And the that in new probably markets, to year Now $XXX the costs year. XX that the we be to this an so all-inclusive. cut into it's and successful our and volume OpEx

are We tracking it.

EBITDA, to the the lower beginning this onetime margin. We will Although to this see flow positive. quarter, to to can in are for that, costs, OpEx the year. And and quarter, full that. XX%, said And see and that year, are we we gross going improvement delivered and will we said be improve year our to that improve in we margin and be relating impact And we million be positive QX are costs are had negative the it also gross cash delivering in we the this and an going you year In you for quarter-by-quarter. QX. committing are EBITDA the we that we we are entire a also of going still last on versus year cutting that said year this we $XX will

You can see the improvement.

more of the will see PLUS, becoming will a are quarter. We market our it utilization PLUS to of utilization system the customer that though impact even to take impression we utilization we amount the Atlas MAX -- million MAX and quarter, by the clearly had with and it's better, improve this that that of breakeven we this see you $X.X of onetime it. Atlas for we and upgrading the the the believe all, we MAX said first them If system, of of customers the and Quarter-by-quarter, additional capacity. to is Atlas or ink, amount the the providing the

we that Atlas we QX said are to between bring QX. technology, for and a which amount upgrade this And MAX PLUS it. going in are release have upgraded we customers, the to to units utilization quarter, another we the to XX% We and substantial and continue even XX% of our further to going MAX planning deliver of is to

So the I record our are see think the track that gave quarters, to you few last we that we're here market. met we from that what we executing to that In saying. guidance the team the

I'm hopefully, deliver to will we what market. confident and are to the that So we saying continue hopeful

Erik Woodring

an And delivering said you my feedback was again, honest That would you what on. are A right. lot is, of you're answer. you deliver,

set point made And just high was to want the you maybe too That sure follow-up. so of make have to I the been expectations my the not just that that progress year. a all question. Maybe of have so this -- on mask

just that -- form back think just of XXth I'm there's can will allocation the Israeli save in process at the of you Can will how can buyback, details of or authorization the terms it us of we now go that's me. least that some most to. all capital September, on increase Just courts, Day to change, I asking on we're maybe maybe so I a you'll looking the mechanically estimates understand Investor And to for take allocation get which forward on September but you plans we for make the that timeline the not of -- realize maybe maybe the your capital your about get all how simply authorization, if by XX. getting for we'll updated it that for timeline initially approval much would think necessarily help

Lauri Hanover

that Let me question. take

cetera. XX-day et regulations, period, a existing new first the We All second is notification regulation mentioned. So with of of longer during notification, remain. approval. et a expired the And other I the quarter, there as elements for need authorization our all, have still repurchase cetera, a no court

are you you application now this in navigating capital forward And more strategy a be process. we share we noted, with September. So to looking comprehensive as will

Operator

question next Securities. from Moore Chris from Your line the Mr. of comes CJS

Christopher Moore

get for to a back maybe moment. AIC So

reasonable annual $X the in kind give $X minimum? of for million a million gross Apollo. range So that on -- you Any revenue margin can

Ronen Samuel

our So margin not model all, September. such share information the as good of in at in our if build you gross as all-inclusive first we to CapEx least the way will that the be the What on model, more intention, can assume that event is better. a in

-- event. investor meeting the it So you the during the during will see results of

Christopher Moore

there helpful. of Got -- it. with a that? Atlas MAX, the That's in terms revenue AIC minimum with number the is And revenue associated a

Ronen Samuel

event. Yes, it of we share at will the course, and

prefer the now, it are stage. pilot at I right this we starting As to keep confidential

in share the it September. will event at We

Christopher Moore

is? Apollo? to much come Is that more And going Apollo down, the kind to less issue it. different from profile, you're more terms -- of Got AIC. on MAX not the trying you're that there. Is customer that the AIC, the interest understand in of -- rates through is even the Just Apollo you the that with is since an typical who of that talking cost is walked customer what the the to be as approaching

Ronen Samuel

Yes, it's different.

they retailers need -- to volumes shorter and that with from Apollo, focusing they're we deliver course, are have runs, to big digital analog market. them move to screen in they getting need Of and because speed the on addressing printers that shorter and massive they to big

the potential about for hundreds customers talking are Apollo. We of

the X cover time quality meet with like again, ROI move market, to There, With customers. they that potential and some into volume X they targeting or thousands are and screen have would volume to better printers entire smaller much of digital, speed, the of sales about to and manpower. Atlas or the we MAX, are we talking only might less

on month is differentiators. provide this much the more a now. the we event And again will in So details from

Christopher Moore

model of guessing category there years out? is kind with more is AIC. range of obviously, I'm just thing, which obviously, a and the to last Is as couple the great one And in well. more recurring overall a or it. a percentage Got of in revenue this of target, revenue changing falls revenue, terms recurring -- that But

Ronen Samuel

event. on share it more We right I cannot details now. will share the

and model course, will we internally, have and all Of the we high with a have of internally we model you. the share targets of level

Operator

this time. final further Mr. call comments. Ronen Officer, questions at to no for Samuel, like the over I'd closing now turn are There Executive back Chief to

Ronen Samuel

Yes.

So first of all, thank call. you all for joining today's

event we earnings to Vegas. September I relating the give this we call like this in XX investor released on would the disconnect, announcement and Before the just attention to again remind everyone in to morning and to

will We there. really allocation, going key great a will see be how see customers. and be with strategy, many our forward, the beneficial. with about with will we lot our planned much more. the details. We customers, panel It We're of moving generators. have technologies. capital to of There market a day going market We're do talk hope main There discuss the go-to-market to you much, be situation, there AIC, to future

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Operator

Well, ladies We concludes great please participating for for ask a hope and have and gentlemen, conference you your day. lines. today. that all call you you thank this disconnect our I

Kornit Digital (KRNT) 7 Aug 242024 Q2 Earnings call transcript