Kornit jumps 20%, worth over $5b, on strong Q4 results

Ronen Samuel  / Photo: Eyal Izhar, Globes

The Israeli digital textile printing solutions company reported a nearly 50% rise in revenue in the fourth quarter and positive first quarter guidance.

Israeli digital textile printing solutions company Kornit Digital (Nasdaq: KRNT) saw its share price jump 19.86% on Wall Street yesterday to a record $116.85, giving a market cap of $5.291 billion, after publishing strong fourth quarter results and positive guidance for the first quarter of 2021.

Based in Rosh Ha'ayin, Kornit produces high-speed industrial inkjet printers, and pigmented ink and chemical products for the garment and apparel, home goods, and textile accessories decorating industry.

Revenue in the fourth quarter was $72.3 million, up 48.6% from the corresponding quarter of 2019, and well above the analysts' expectations of $62 million. GAAP net profit was $5.9 million ($0.12 per share) up from $4.8 million ($0.11 per share) in the fourth quarter of 2019. Non-GAAP net profit for the fourth quarter of 2020 was $11.5 million ($0.24 per share) up from $7.1 million ($0.17 per share) in the fourth quarter of 2019.

Revenue in 2020 was $193 million, up 7.5% from 2019. The company reported a GAAP net loss of $4.8 million for the full year 2020 compared with a net profit of $10.2 million in 2019. Non-GAAP net profit was $9 million ($0.21 per share) in 2020 compared with $19.6 million in 2019. The GAAP loss and lower profit was due to capital remunerations to employees and expenses related to acquisitions.

In the first quarter of 2021, Kornit sees revenue of $61-65 million, well above the analysts' expectations of $54.2 million, and non-GAAP operating margins of 8%-10%.

Kornit Digital CEO Ronen Samuel said, "We delivered record fourth quarter results, exceeding our expectations on revenue growth, profitability, and net cash from operations, capping off a transformative year for Kornit. 2020 is the year in which the textile industry hit an inflection point. The massive leap in e-commerce and the exposed inefficiency of the traditional textile supply chain is accelerating the digital transformation that Kornit is leading. We see new and existing customers significantly expanding production capacity globally, and our recurring consumables business is growing strongly."

He added, "We started 2021 more confident than ever, with accelerating industry tailwinds, an impressive backlog of global expansion projects with strategic accounts that we are in the process of fulfilling, and an extremely robust pipeline. 2021 will be an exciting year for Kornit, filled with strategic initiatives including the launch of new powerful products, introduction of a ground-breaking proprietary 3D textile application that will bring to the market unique embroidery, high-density printing, and vinyl heat transfer effects and significantly expand our addressable market, activity with the world’s largest brands, expansion of our software business line and entry into new market verticals. In 2018 we laid out our management goal to become a $500 million revenue run rate business at the end of 2023, and we are more confident than ever in our ability to achieve this goal ahead of plan."

Published by Globes, Israel business news - en.globes.co.il - on February 18, 2021

© Copyright of Globes Publisher Itonut (1983) Ltd. 2021

Ronen Samuel  / Photo: Eyal Izhar, Globes
Ronen Samuel / Photo: Eyal Izhar, Globes
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