Textile print technology company Kornit Digital reported a third quarter GAAP operating loss of $21 million as “macro-related headwinds and other pressures” continued to impact customer purchasing decisions.
Kornit Digital Atlas MAX
“Consumables and Services revenues grew nicely from the second quarter, and year-over-year, due to solid demand from our key strategic accounts as they gear up for their peak season, as well as the execution of a major fleet upgrade to Atlas MAX with a large strategic customer,” said Kornit Digital CEO Ronen Samuel (pictured right).
“And while we continue to see good receptivity and interest for our Atlas MAX family of products, macro-related headwinds and other pressures continue to impact customers’ systems purchasing decisions and their projected pace of growth.
“We are a resilient company, with the right strategy, product and service offerings, a pristine balance sheet, and a global team that is energized, dedicated, and focused to move the company forward. We have and will continue to take the necessary steps to return to sustainable, profitable growth.”
Kornit CFO Alon Rozner: “Our infrastructure was built to be profitable at a materially higher revenue run rate. As macro-related and other pressures continue to impact our business in the near-term, we are building upon the decisive expense reductions and other initiatives performed earlier this year to adjust the business to the near-term market environment.”
The company said additional steps to reduce its cost structure would include re-allocating resources to emphasize areas with a higher ROI and further adjusting go-to-market initiatives.
Third Quarter 2022 Results
Third quarter revenues of $66.8 million, net of non-cash warrants impact of $5.6 million.
Third quarter GAAP operating loss of $21.4 million; non-GAAP operating loss of $13.0 million, net of $5.6 million attributed to the non-cash impact of warrants.
Fourth Quarter 2022 Guidance
For the fourth quarter of 2022, the company expects revenue to be in the range of $66 million to $70 million; non-GAAP operating margins to be in the range of -6% to -10% of revenue.