Kornit Digital Ltd.

Greetings and welcome to Corentin Digital's third quarter 2020 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note, this conference is being recorded. I would now like to turn the conference over to your host, Kelsey Turcotte of the Blue Shirt Group. Thank you. You may proceed.

Thank you, operator. Good afternoon everyone and welcome to Cornet Digital's third quarter 2020 earnings conference call. Before we begin, I would like to remind you that forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other U.S. securities laws will be made on this call. These forward-looking statements include, but are not limited to, statements relating to the company's objectives, plans, strategies, Statements of preliminary or projected results of operations or our financial conditions and all statements that address activities, events or developments that the company intends, expects, projects, believes, or anticipates will or may occur in the future. Forward-looking statements are subject to known and unknown risk. and are based potentially on inaccurate assumptions that could cause results to differ materially from those expected or implied by the forward-looking statements. The company's actual results could differ materially from those anticipated for many reasons, and I encourage you to review the company's filings with the Securities and Exchange Commission, including the company's quarterly report on Form 6-K, filed August 11, 2020, which identify specific risk factors that may cause actual results or events to differ materially. Any forward-looking statements are made as of this call hereof and the company undertakes no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events, or otherwise except as required by law. Ronen?

Thank you, Kelsey. Good evening and thank you for joining us on this afternoon earning call. I'm pleased to share with you that we significantly exceeded our expectation for the third quarter and we are improving our outlook for the second half of the year. Total revenue grew 21% year-over-year to $57.4 million, net of $2.2 million in warrants relating to a global strategic account. And we deliver exceptional sequential growth of 53%, reflecting the sharp growth in e-commerce and on-demand production. Topline results were driven by a strong demand for our industrial systems in North America and EMEA, An extraordinary quarter for consumables and services across all regions. On the services side, I'm proud of the work our teams have done to bring this important business to sustainable profitability a quarter ahead of plan while maintaining focus on customer excellence. Now that we have reached this important milestone, we expect services margin to improve as we continue to scale the business. Bottom line, we deliver a strong operating margin for the quarter and we expect to overachieve our operating profit objectives for 2020. Our industry is at inflection point. and we are focused on leading the transformation of the industry into on-demand sustainable production. Globally, we are partnering with our customers to deliver incremental demand for systems, ink and services as we enter the holiday seasons. In the Americas, we are engaged in large-scale expansion projects with key customers like steaks, Printful, TSCs and others. One of these interesting projects is a unique partnership for integrated on-demand fulfillment of Delta Apparel and Hot Topic, the iconic retailer both fueled by Kornit solutions. These revolutionary collaborations In EMEA customers and partners are fully re-engaged and we are experiencing a resurgence Like what happened in the Americas in mid to late April. A recent investment in scaling our direct UK operation is yielding immediate results and significant pipeline build-up. In APAC, we see encouraging signs of industry recovery and we continue to scale the local sales and support infrastructure required to deliver on global expansion projects with strategic customers. As part of our continued focus on this important region, we are excited to welcome a Tokyo-based seasoned executive, Ilan Elad, to lead Asia-Pacific and scale our operation in this region. From a product perspective, it was a record shipment quarter for our Atlas system. This unprecedented success gives us a huge confidence to accelerate R&D effort and go-to-market planning for the next generation of application that this platform will support. We expect the Atlas to be the foundation for continued growth in the years to come. Arvorkan Plus also continues to have considerable traction with customer investing in fleets to produce large volumes of mid-sized ones. On the DTF side, we are seeing phenomenal momentum fueled by the accelerated transition of the fashion industry to on-demand sustainable textile manufacturing. Customer realized the huge benefits of this business model in the fashion and home decor markets and are telling us that Kornitz offer the best end-to-end pigment-based retail quality solution to support this model. In the third quarter, we close an important deal with Krezioni Digitali. A leading Italian digital fulfillment partner to some of the largest fashion brands in the world, including Versace. The single-step sustainable process of the Presto, alongside the retail quality and sustainability, perfectly matched what Grazioni and the brands are looking for. Important wins like this at the heart of the fashion industry makes us confident in our ongoing ability to disrupt this large market with our unique technology and we are already witnessing massive growth in our DTF supplies. Executing with our global strategic account remains very strong and our teams are working around the clock to deliver on the various projects we have in place. The impact of our acquisition of Custom Gateway is exceeding expectations and we are pleased with the progress of our integration. Expansion of our cloud software workflow solutions is at the heart of our strategy and with Custom Gateway we offer a unique proposition to the market that handles all steps of data-driven, efficient on-demand production. Since announcement, our team globally have generated over 80 new opportunities and we have already received multiple orders. Exciting conversations are with major brands and fulfillers that are looking to partner with Kornit to transform the supply chain and are looking to adopt our cloud workflow platform to enable and streamline the entire on-demand production process. Our decision to continue to invest the business during the pandemic is paying big dividends and I'm very pleased that we are in position to increase the outlook we provided for the second half of the year from low double-digit year-over-year revenue growth to 25% year-over-year growth. Looking forward, we see very strong momentum and we are entering into 2021 with very strong backlog. Before I turn the call over to Guy, I would like to welcome Our new shareholders and thank them for their trust in our teams. These are exciting times for Kornit and for the entire textile industry and we are extremely confident to execute on the massive opportunity ahead of us. Now I will turn the call over to Guy for a closer look to our numbers and guidance.