Kornit Digital (KRNT) 11 May 212021 Q1 Earnings call transcript

Greetings. Welcome to Kornit Digital Limited First Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions]. is conference this note, being recorded. Please now Monica Gould would turn Digital. the host, your to over Investor conference I Relations Kornit for

You may begin.

Digital's Thank welcome conference morning Good first Kornit call. you, earnings quarter everyone XXXX operator. to and

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

statements. required or any a of events result hereof except this March of report or to future statements and Forward-looking as potentially unknown differ events and forward-looking by or materially the XXXX, on differ anticipated based uncertainties to and Commission, no differ reasons as the by Exchange forward-looking many whether the are to factors forward-looking to new Securities which or are results XX-F, implied cause filed made from statements, actual encourage publicly annual the actual materially The law. undertakes and results assumptions to cause as revise XX, and company's you with are company obligation that for information, the subject I results review materially. Form at identifies could expected may including those and those specific from inaccurate risk risks on known update otherwise, statements company's call company's filings that could Any

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

thank outlook earning outstanding Monica exceeded to an call. our for share strong. you, our for start Thank you strong profitability this top on and and We results. year a you evening quarter I'm the is significantly our line us excited guidance and all the with very to joining year first on

As the digital world mass moves is era, And into The accelerate business its on digital and demand of scaling the introducing focused are laser innovation continuous in we textile of on is to business need and sustainable enormous. production. formation the fronts. opportunity our ahead post-pandemic all industry us desperate adoption on

to quarter Atlas quarter and another XX.X steps X.X related by a path are account. for increased another year-over-year revenue global business first ahead rate mass plan. a XXX% of million by Total headed Our XXX to in spread million million experienced results run become to We shipments of production the revenue net of strategic the systems on record Presto. warrants our

we recurring continue on our consumable continue scale to business and services. goals Our to profitability outperform

projects part XXXX Printful its year quarter. began Atlas are that announced last as In March now During on systems this with we discuss out. strategic the the half purchase we more rolling expansion of which expansion the plan of and second during global accounts engagements than rollout multiple major will global XX we

the brands. making in their scale conceive design a digital in digital of that a the growth them print technology global operation digital has to marketplace Printful concepts a segments by mega to demonstrates empowers from and small and creative creating leader natives Kornit As an transformation potential early adopter customers overwhelming taking real. become merging Their of grown

Printful We help the stage are proud to next journey. reach of their

our are parallel We and accounts. goals strategic witnessing expansion across key

this in partnership are and uniquely our designed goals expanded private and world. expects Atlas mega license years. retailers leading a we which example, some largest of the to the tremendous growth. produces supplier to its studios continued apparel new they systems licensed with added label in And This experiencing supplier coming clothing the eight of and an TV As gaming fleet for quarter,

a Presto doubling global shipments global delivered the As execution move the remains the sequentially our into plans. number their strong strategic accelerated we expansion in account, of from fourth systems as of very ambitious for record We phase quarter implementation first quarter.

fourth expression consumable DTF industries. as this quarter the be this can heart fashion build was we're of almost and with success. hand Kornit in momentum the recognition is in celebrated week decor diversity recurring by and encouraged Kornit of more business continue how the from fashion showcased we a brand than a tripled and The home enriched sustainable a XX tremendous of to very More Our vision individual world. hand and designers

the its partnership While globally. brand as created of enter part shared and remarkable event initiative fashion top global was we our goal. is corporate with online week, suppliers momentum primarily the in exciting focused and UK with and event ASOS look Last of this ASOS integrity fashion forward mega the capitals rollout on business fashion building awareness, retailer to this we

teams production react end partnership, to end workflow efficient, this impact micro shift part and enable of implementing in As factory Kornit more to to seasonal demand establish quickly sustainable are process. joint low

all flow. adopt online customer brand. a production into In business our and we the to a Max embroidery, value standard graphic are single of transfer expand of continues on based product significantly density as demand production. unparalleled is with Max and leverage technology with and new workflow demand delivers QX pipeline well chain sizes mega analog to Two our that global combined revolutionary very fulfill customer Scaling native well The retail our existing activity engaged cloud existing net we logos ago, the new process as can strategic production of And of solutions. our in technology, weeks brand capabilities we licensed the announcement grow fashion in marketplaces, digital strategic for partnership Xd and and for heat new of Kornit sizes launch looking strategic textile [indiscernible] this process. waste-free which with apparel printing high quality mega establishes workflow targets digital of replace a the progressing line vinyl workflow our software decoration our of our software on to first unique all online our supply offering. orders, new year as expect embrace We new our for over-achieved to made platform a automate at adopting a scale internal XDi new

significantly the fashion center apparel into like our high of wear. We dramatically fashion technology Max manual the increase lucrative labor expands production the significantly mainstream on categories the into and segments, also addressable introduce expands technology burden robotic and and our professional diverse and of market productivity. reach new to ease of textile automation demand sports, end athleisure patent pending The digital of team

an starting neutral the from new in The with revenue will delivered XXXX. discussed to built line backlog anticipated unlock which start will last systems from new year the initial exceptional beginning line expect revolutionary Atlas Atlas products significant The the see the is coming additional commercially Kornit. of XD our future just with exciting we marks and contribution in to second Max an the Kornit from half to the of be year. first is is we for June summary, is continues quarter carbon year. the available the quarter with sequential product market XDi deliveries in marks the and the of that growth the call, Atlas technology of our earnings upgrade grow. Max first in available which during the In to first segments This quarterly In massive

So growth than subsequent can deliver sequential believe in anticipated. stronger originally we now a we subsequent each of the the quarters we quarters,

we in financial I confident all line like our share you a forward leadership strategy, and position plans, is you to highlights personally dedicated invite remarkable software virtually to more turn position look virtual ever I week us of of goals which over Alon, of for our to Kornit work join longer business the am I in execution and in goals. to our will value next our I next proposition, a for for people. our investor event Before call our term than all additional week. would seeing in

for Now call and the I over closer guidance. to a will to Alon? numbers turn Alon our our look

everyone. and Ronen morning Thanks good

full A on will GAAP basis section and financial non-GAAP the measures website. reconciliation the beginning on the in like results press that as well our include issued available overview, release I discussion you our to to the financial today results. of earlier as Before remind following earnings of non-GAAP is investor a GAAP would

Now the let's dive into financials.

are exceeded our first pleased and the results guidance quarter which very again profitability. once our We strong with top line on

of and of $XX.X our $XX $X.X year-over-year impact guidance ahead revenue warrants. to well increased million, million XXX.X% of the warrants non-cash quarter net was First million excluding impact to $XX of million

accounting achievement Services results for impact by million first of XX.X% expansion was execution projects increase of warrants $X.X and total quarter revenue an driven systems multiple the non-cash production strategic our major record approximately for first year-over-year. and of $X.X of accounts. of DTF were with mass global million of Our revenue quarter DTG XXX.X% net

from in more from revenue The than XXXX. with quarter revenue and revenue. and the of year EMEA XX.X% doubling of was quarter total for XX.X% the of of first accounted than last from quarter Americas the accounting first Revenue strong for first more tripled

experience of customers XX.X% in limitations top to contributed from total of year. our of sales the first rebound the customers for travel quarter revenue. of total And accounted last are that we more which the than quarter for more two XX we and had first pleased XX% continues Asia-Pacific X% While related revenue. In doubled with accounted revenue than COVID

rose GAAP of of year-over-year. of quarter over XX was and Non-GAAP profitability. the margin to in percentage improvement points year-over-year. basis, margin a gross points to impact and XX percentage quarter the in XX.X% Moving net improvement XX%, gross warrants On

profitability. gross production acceleration of first higher attributed significantly mix Our margin is to mass expansion and systems quarter services of continued

discuss Moving OpEx basis. to will non-GAAP items on these I items. our a

additions revenue quarter new of revenue, million materials. the expenses XXXX. accelerated in million, XXXX. to Sales or marketing in innovative in ahead invest products, and revenue and and items growth million to of is first X.X X.X result We supporting XX.X% headcount line The of of continue the or first us. increase million compared investments X.X applications a the business revenue in expenses investment of XX.X% compared in quarter or Development of opportunities or were quarter following to R&D were Each Research the XX.X% use the of of reflect to X.X in and growth. XX.X% accelerate the of the of

expenses tight employees and our related professional and continued employees services, from expenses, first is awareness We of continue The X.X% increase and of quarter. of market of an increase quarter infrastructure. as invest programs, to first revenue year-over-year to and General or of customer budget year is the million control mild leverage first to last to administrative in the a to million, XXX compared in the operational quarter increase of of and headcount, and in employees brand the go were previous XXX quarter facilities or XX scale mainly our We compared ended X.X and facing with additional the in a we X.X G&A revenue, activities. expanding XX.X% XXXX. marketing capabilities, quarter cost reflection

the net For R&D quarter the fully diluted of of fully on the a cash for in million XX.X share EBITDA or Net quarter to first compared million first XX.X XXXX or was mainly of in first was for sales first the X.X profit per for loss our a in we basis EBITDA of XXXX. compared basis X.X basic $X.XX the per or Adjusted XXXX. first million negative quarter the quarter profit by of support or net X.X $X.XX million, XXXX X.X advances. and GAAP $X.XX and continue diluted to adjusted million of compared quarter of share per first will organization provided million to the invest X.X this quarter growing a share basic with was quarter on to compared the including activities million, XXXX. per a XX.X in strong to revenue loss ended customer XXXX. the to remainder of backlogs operating of Non-GAAP business, cash deferred quarter and of $X.XX used million operating share quarter million activities marketing. was XX.X We in in to first net of

to XXXX. to the to We balance in revenue expect continue deferred revenue convert

million marketable compared securities deposits December balance to including million end XX, was XXX.X of bank cash XXXX. XXX.X at quarter Our and as

view the quarter to Turning on our XXXX. second of

continue global massive plan we large to scaling quarter the to to a ended execute of and business. We strategic technology on strong As on opportunities with go with us. great Ronen first market and the backlog and continue the ahead capitalize our discussed to expansion in investing projects momentum roadmap customers in

of and summary been revenue. these past has we XX.X% quarter call as For run ahead XXXX fair virtual we rate to our practice event invite to expect the impact our the very more XXX insight to our our of million in there. attend very in the We million the the we of turn ability warrants on quarter. numbers are are of proud strategy next It of no will will continue results and of our In goal revenue value XX.X% you in I in assume to where our I of QX issued confident investor in and our million the to Ronen. to the now to meet back be to plant. execute I week non-GAAP XX XX income second to into you range of long growth all share seeing operating range look forward be term plans

Alon. open for ready that, call With the Thank are you we to questions.

Citigroup Instructions] Investment answer time, with is Our Please a will Jim Research. question. with your this session. conducting from proceed we Suva question At question first be [Operator and

outlook. Thank and congratulations and really on strong good you, a results

of some the starts the that of that countries recovery kind type the parts countries some to hopefully behavior of it certain back or on those ahead As to you world about of Israel the whether of States, more of regions? those newer Are larger of in solutions trends pandemic at United higher timeline like larger are normalcy are in say consumption? and your your doing post-COVID get the the can of ahead Europe, customers say been talk processes? the be the just they production? machines older in pre-pandemic than it because I'm Israel kind Thank the vaccination wondering the Are looking seems you. ink have has of phasing gotten there Are U.S. using versus site more rates and actions? they they workflow What

and North revenues I in we you coming will Jim Yes. Thank actually hear question. from majority they'll after directly from also where one . of see last years to half Great see one They where so from customers and brands our the into terms hit both demand refer or for retail, and customers more America what advance from of a licensed huge our peak a coming vaccinations a from season. pandemic a ASOS a the year them. they us

in fulfillers, and installed change also order within demand production introduce back. solution Kornit few a ASOS chain brands, base on connect and The into nearshore production working own trends to with workflow. onshore manufacturing to market retails the into the fulfiller, I In retails demand our leveraging this terms and them. licensed but are traction, We months that also see very gateway the custom technology both brands moving our production, the demand licenses of to fulfillers leveraging great or and our workflow, and and as to mentioned supply looking ASOS Kornit customers, we between with with closely is the

Great. Thank And And much. I it. you so congratulations. appreciate

you. Thank

Thank you.

your from question. question Hall next with with Please Our Rod Sachs. proceed Goldman is

question. the a Yes, of check couple hi, guys. Thanks wanted I to for things.

book I just lot like there just number? was you the really wanted Printful sounds It that's And That able you substantial. demand curious systems? to I on check curious sounds for a high? I'm be systems the also think it like what mean, the of could give First I then us But is are build of high. how to backlog a they're for taking. to very is all, outlook

you if could about Thanks. more Printful? wondering little a just bit So talk

Yes.

we backlog And can only we The we we have backlog of the it's XXXX. peak, year. specifying have. specify of is in the the level not I And a ever, entire backlog, So of thing for revenue already terms terms for backlog the have. deferred its in in of that growing. visibility the specifically that are mention We we are orders, strong-strong building backlog

and from successful very they're And terms In mentioned, parts we beginning, capacity. Mexico Barcelona adding other and as Latvia, U.S. many from to of Printful parts. the when years] two they going were the are the they growing together Canada world, tremendously. had working [nine They're and we of and other employees to and

we XX As mentioned, systems. the purchase acquired they Atlas

in just just you it started growth the see the for the in We this of that for beginning is and the entire XXXX Printful. we phase. QX, are implementation believe will going We continue but will implementation

Okay, and the something technology. polypro then I with just check wanted to double you on

think But margin could of still to systems. bit I supplies, supplies as And the it supplies? different ship kind Max out you're there. beginning like that seems same I double other just special calling the start be track for little of this curious story supplies in. and anything on those Thanks. of about those it still there for Are on, Are value summer printer. sort that? to a the you those Are you roll you're on checking, just printers it

Yes.

can going Max we our week Atlas mentioned you poly So is is conference leveraging next technology as Atlas information be unveil bit going are bring breakthrough for I to we for that want to some the are on to leave them believe of consumable. the the and and market are analog the value we And We of that on margin products also poly, more technology are to transform we the both different system is to next bringing it and that will technology. don't the proposition immense. totally This a the value going also actually share I the future to for better market share the which week. a like Max technology. about consumable, it because the on that our different side, from added is are platform. to order, in call we we ink digital we to the leveraging as announced totally -- the roll We within The our investor conference terms this platforms. to on the information Max the technology, going would more on into first Max, calls the workflow. the to Yes, gain going

a Okay, Thanks lot. great.

Thank you.

Blair. next William is from proceed Our question with with Drab your question. Please Brian

Thanks Hi, good morning. my for questions. taking

You that the to during different time. mentioned listening two I'm and the same remarks prepared calls at

apologize clearly. didn't I if So I hear

sequential put You going in $XX you I for terms said that of were XXXX throughout for that? finer means million revenue, be does you than you originally expecting? us a guess second is point expected. I growth what what guidance the quarter think originally And is said? Can you you Can And what year on your better to $XX remind million. to

we're quarterly rate. for the guess, half back something is north run the well So year the of in that, I looking of

quarter we only ahead. are Yes. So guiding you as one Brian know, is

from We guidance. be that mentioned we very be accounts. is strong year. very bigger with We The stronger. becoming strong Whatever a strategic we that beginning going there's also for are a not the had to a to we strong order, is are budget mentioning giving backlog from is that going thought the statements and annual

providing for we this whatever thought, message the at guidance is this year stage. but the So not are we

say third sequential did second fourth? to you to anything from quarter third so about Okay, not growth

gave No, the no, I we just for QX. guidance mentioned

kind get week. above to to still still we'll that the range. Thanks. to guess term even of where the move maybe more I talk around or And next Okay. for help XX Is to one the from about of to? hovering to goal longer point, All then in is gross that's I gross kind high at get margin can mid XX% your you're possible? XX% and trying the level that think right. But this you And expectation margin break was that

terms in of from again, so to is it to now. gross Yes, term going were ourselves margin share all, first see our Alon to goals details long we relate week. where next of in in term we And long going

between margins margin specifically supplies margin. side, committed is quarter highest very-very QX, well the said on the this we to that supplies in you've quarter strong QX, are with is the In year mix on terms you lowest that seen bit But saw of system. in What see We gross the to past. we portion is growth our had gross gross supplies and QX the to impact you even the when seasonality in close you higher margin gross want of XX% this happy to last XXXX. to than terms gross is due which the usually QX, during usually the is in the a can anything? systems growth our lowest of gross also supplies what QX. Alon we as and year the The margin the the the system margin do revenue add you very look are QX versus margin

quantities that the up product improvement continue the is continuous this very one And impacting covered we mix. it the towards The operational QX. the I margin. margin and main to towards where systems had the We is half second we the one the and year more the typically the consumables factors So push of mix mentioned business And two going that have is are margins in high we think second there. as higher this gross a well. I increase and plan leverage you see gross go we

very and in new the product results. on introductions thanks congrats the much, Okay,

Thank you very much Brian.

you. Thank

Stifel. proceed Patrick is question. from with question with next your Please Our Ho

in some mean a chain strong constraints about Ronen how of overall in progresses? really potential very the at supply quarter. any the on start backlog issues you terms managing much the you those of have nice systems year. through as and you congrats the quarter are during situation, you particularly well looking of there I you delivered maybe first talked Thank are and you potential of out any your given how XXXX even off,

I maybe growth the in QX, supplies something to was add and tending quarter just a was mix saw terms before the we like of to Yes, huge supplies from and a between a systems actually want while hardware growth. supplies would in into it record

So that and we see supply supply also we for issue there. strong very as the growth familiar a outside all this chain

So first of all, see impact well in we course negotiated don't have any There availability with cost. issues supplies looking cost. no is don't we We significant advance forward on our for this significant year. impact on any also on

because course, had pressure But any because of on the lead suppliers place this availability for in of a the time with order issue don't entire the orders advance chain well our and supply we very good we year goods. visibility with for stage. at Of there a and is we see

margins. the follow gross from you're up maybe terms aspect it your out posting newer your terms in my in better the in some out mature But hardware perspective of helpful. Great come results at as out. you're become cost it you looking question maybe the solutions. one particularly taking system's Maybe discuss products costs that's and program? Can systems more of As at of more better of

costs describe take of helping efforts costs Can you that. some of long out gross can the margins? that You out term are

Yes.

solution. it. a are where when cost and like and stronger and gross are cutting cost your side? on every can effort both working from which to elements, stronger But, to improve pushing growth growth business, the margin course, on impact our much see we are structure you economical day more cost we element scale, leverage night today, the a overall. on of operational cost But of will anything teams we of there's the course, of Alon Of our

many even good account we results No, systems. see we within driving between operational that had itself. mentioned, results mix that mean, very margin And I chain good is Again in cost we reduction and quantity think on Ronen very see gross and on into when DTF the Again, plans supply within we are taking leverage. the an product DPG. the the systems I

much. you thank Great, very

you. Thank

you. Thank

proceed Our next & your question Please question. is from Company. with with Needham Jim Ricchiuti

Hi, thank you.

areas want are mean, Can comments, expectations? sounds is, that mean, a seeing business. biggest stronger, performing what back drivers for you few that are the little Just faster. it's to I'm exceeding to there highlighted acceleration particular potentially your you're the like about moving being in us go Ronen acceleration particular understand But the it the Presto, what that the board. the in your you're brands are trying I across areas the I give in feel seeing you to business? a better to

So Jim great question.

years. like change mentioned, about products. the to becomes future. e-commerce need those you many-many could that trends becoming drivers we for vehicle would market of and variety People And sit across self. have to is the presence. the see talking chain. for board As we Today, were self supply all a the the people would The future like Consumer expression, main have to you the

to want inventory. have don't You

customers we throw And terms as is both we're our it where bought see today. peak promised season time. profitable our are To move DTG get it into remember, in have to We to peak QX, now. XXXX. in it. we the to selling demand and nobody's and business. want first because business all workflow in installing systems in for are And don't and supplies which We QX. that to manufacturing, profitable service the was look in see in DTF. time And in it already your is to You it XX% growth and you the see have in because of for growing We very we production do designed many tremendously you be so waste the It's on a and that. exactly of

in believe I now that will it we're just many to goals years overall for continue acceleration, and really, of trends mega beginning So the the of driving come.

see back operating a margin is, as made half that Alon as as see higher to guidance product I enough that that able modeling. year? investment people this of in layering in do QX have well support, of a customer of as think development appears the to the and But you be think is think, the in feel obviously for there an as backup, probably you've as scaling? levels to maybe you potentially of higher follow to for think expense do trying than just up. kind on targets you. not the we guidance, is but terms it clearly is gauge specific whether to in at business you the being Or based most growth as about we were This were expense leverage strong question accelerating, looking looking this need higher gave It I operating operating

said leverage you will all well. and we time as margin expansion we on that So the have operating see should

Alon Next operating we share to from business. expect that going term data the margin more is week long

but So more call we want to on don't share that Alon?

keep OpEx mostly are the we and invest to grow R&D we and Yes. and I we in actually investing, and recruitment plans mean, have continue good will to market. strengthening go

across will the the board people it also investing remainder So are we and year. we the continue in recruiting of doing and

quarter. Okay. lot. Thanks the a Congrats for

the to this field into see you are see we to the will and are capture people is, market all line. to market project the of bottom and beginning will have of you but that the very Kornit, leverage R&D to in is only in committed now need we the more our more the important. invest grab in we is you investment investment the infinite from the of We perspective we this And just in X%

again. Got it. Thanks

with with is from Craig-Hallum Our your Group. Greg question. next Capital question proceed Please Palm

it'd the disclose Yes, talking at they has but of about add be this then to have we're shift customers, thanks on customers the this and global many know, more focused know, now, Is Maybe there strategic about I but as how well. providers just we've your you're curious lot, point? and ones? I others? to to thinking from regional this start past, be Printful driver, you congrats major mean, expansion global my one in off, can how dynamic? of I'll curious big a are sort presumably, I'd pretty been

Yes.

by clear, So what plan. let's global clearly strategic mean be define and we

many have we So accounts. strategic global

many, Amazon. but account, refer how are of specification when any to referring this providing we the not are we to And global Okay. strategic

Okay.

strategic refers and are in specifying expanding our globally. but account specifically but expansion this account not the We to we Amazon, see Amazon, strategic global

of going every starting and to Printful So continent. Americas, a expanding great expanding Europe in Latvia, example in Asia also in is to

those guess I the customers of Has much or to looking but out is, has been customers driver? Americas, as recent Got just how of is really guess sort that some before well. maybe to globally growth in versa. kind been expanding they're you. the selling my were as of kind due But more question globally that, now due big commentary branch I of forward going a of for vice I'm that

as mentioned, globally. Yes. It's on expanding our growth. of many I account our influence can big We with, see it accounts, becoming a key strategic

information provide that bit on next will call more a on We our week.

to higher price that of Okay a direct great. big unusually impact other And it's that then strategic? quite then the I variables recent associated at warrant know other the and run impacted Are stock this high, a bit a that and higher stuff. attribution activity global notice Is by there bunch for was rate. most with least than quarter

So it's just curious.

business. Yes, the mean, the high, answer at the day goes same warrant of warrant the then goes direction. business when well, yes. level the to is as I the are linked of to end And the

much. All thanks so Okay, right, make sense.

you. Thank

Thanks.

[Operator CJS question with from with Moore Please our proceed Instructions] Chris is question. Securities. your next And

Hey, good Yes, on maybe start ink. morning. just

here. So as Presto traction really gains

you typical the in the the incubation and usage Just DTF. different? to any revisit Atlas kind DTG compare of the want in would ink versus Presto versus the How margins

ink of Atlas. higher is the use than The the much Yes. on Presto

bit margin the The is those We between versus different compare on markets. the between are on on the our lower two. a more on will margin provide the The and Presto call Atlas. week next that information ink

Got it. as follow And theme. up, just keep on my that

the that sales the a talked in for have math math, of services do you metric follow and So $X of is years. same you can Presto? is for five $X the consumables next Does basic on kind system that past over

For Presto, it that week. we will and more next provide information bigger is on

Ronen. Thanks, right. All it. Appreciate

Thank much. you very

Our proceed Blair. with Brian William from from next Drab question your is Please question.

not sequential question XXXX. with around throughout my or Hi, asked emails, email inbox up seven difficult, Ronen after but about be trying first growth my I I'm lit six to

did If make clients accelerating expected are heard just said, wrong, I opportunity think script, did just they based expected on that call? clarify to to your you than address the it wrong not year, more in than another that the that telling as and heard I was the but only the same say, I least all wanted just that thing wanted well. sequential prepared throughout you we you think growth or previously in that the better growth I script, XXXX I he you heard on we to all prepared I sure at me public And I sequential remarks. throughout exact prepared give given said think in

No, no.

So which heard didn't than before. growth sequential that we this are what will not before right, as quarter. will you be guiding anticipated because you higher one see moving every what regarding year that, the we quarter I the probably share sequential We we mentioned anticipated only for forward

that example, QX higher the would than can higher and we expected had the much thing much market initially right you enter for what probably than see year. guidance when we So now QX same the X The QX. than which what be for for what we for higher to also and we anticipated see expected is

I'm but seems second we third Okay sure to obvious, though, that and correctly. that expect just I want the saying are or we make growth guess to from that quarter that getting sequential quarter the I

quarter down or You wouldn't be the as sequentially, expect you? fourth that would would we third moved quarter year through

providing assume than year, Again, are guidance you like HX say the the but should this. will not would HX. be for higher I we

Yes.

Okay. Thanks for that. clarifying it. Appreciate

you. Thank

will end answer the for to the reached Kornit of Samuel have turn question CEO we of call session. now and And over Ronen the I closing remarks.

So joining to I want us this everyone thank for morning.

with remainder will much. our our exciting week. and execution We first for and very next no hope plans quarter that very virtually expectation results forward strategy, Kornit. less for top believe innovation see event Thank line to our profitability. which groundbreaking of XXXX and be of exceeded growth many sharing you the to We look at you our are upcoming We pleased investor

this disconnect and your concludes may conference you today's And lines.