Kornit Digital Ltd.

Greetings, and welcome to Corneek Digital's third quarter 2021 earnings call. At this time, all participants are in a listen-only mode. Our 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. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Andrew Backman, Global Head of Investor Relations for Corneek Digital.

Thank you, Operator. Good morning, everyone, and welcome to Cornete Digital's third quarter 2021 earnings conference call. With me today are Ronan Samuel, Cornete Digital's chief executive officer, Alon Rosner, Cornete's chief financial officer, and Amir Chaked, executive vice president of corporate development. 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 related to the company's objectives, plans, strategies, statements of preliminary or projected results of operations or our financial condition, and all statements that address activities, events, or developments that the company intends, expects, projects, believes, or anticipates will occur in the future. Forward-looking statements are subject to known and unknown risks and uncertainties and are based potentially on inaccurate assumptions that could cause results to differ materially from those expected or implied by the forward-looking statements. I encourage you to review the company's filings with the Security Exchange Commission, including the company's annual report on Form 20F, filed on March 25, 2021, which identifies specific risk factors that could 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 except as required by law. Additionally, the company will be making reference to certain non-GAAP financial measures on this call. The reconciliation of these non-GAAP measures to the most direct comparable GAAP measures can be found in the company's earnings release published today, which is also posted on the company's investor relations website. At this time, I would like to turn the call over to Ronan. Ronan?

Thank you, Andy, and good morning, everyone. We are here in New Jersey at our beautiful Customer Experience Center, having just returned from an inspirational and industry-transforming Cornette Fashion Week in LA. This groundbreaking alternative fashion week, pioneered by Cornette, brings endless creativity, sustainability, diversity, and inclusiveness to the forefront of the fashion world, all by leveraging Cornet's on-demand digital technology. It was an amazing week with more than a thousand inspirational designers, brands, customers, and partners coming together to establish a new reality for the fashion industry. We are at a revolutionary moment in how we all think and act about fashion. It's about giving people the style, trends, comfort, and quality they desire when they desire it in a sustainable and ethical means of production using innovative digital technologies. I believe the fashion industry will look back at the Corniche Fashion Week LA 2021 and remember it as the pivotal point in its journey to transform and adjust to the needs and beliefs of the current and future generations. Turning to our results, it was a phenomenal quarter with record revenue across all regions, strong profitability and operating cash flows. We delivered a total revenue of $86.7 million net of $7.9 million in warrants related to a global strategic account. We again exceeded the high end of our guidance, posting 51% year-over-year growth as we saw a great mix of sales across systems, consumables, and services. The impact of the warrants this quarter associated with our global strategic account was higher than historical quarters, due to their continued growth and global expansion, and we expect to see continued accelerated growth with this strategic account. We are also making progress with other strategic accounts, including well-known fashion and e-commerce companies. For example, we recently began an important relationship with Boohoo, one of the largest e-commerce fashion retailers in the UK, with an incredible portfolio of over a dozen market-leading fashion brands. Boo is adopting the very essence of our Kornit 4.0 vision by incorporating our technology vertically into their supply chain, while also utilizing our global fulfillment network powered by Kornit X to broaden their capabilities and expand into new geographies. Earlier this month, we announced the availability of Presto Max, the platform that reinvents textile designs and application capabilities and will change the textile industry forever. The single-step PrestoMax solution breaks the barriers between imagination and physical applications. It is the first in the market to bring unique groundbreaking capabilities like white printing on colored fabrics, neon colors, and Kornit XDI technology for 3D decorative applications. Last week in Los Angeles, following an event we hosted in Crezioni Digitale in Como, Italy, we showcased PrestoMax and its amazing capabilities to hundreds of prospective customers, and the reaction was incredible, which led to strong order pipelines. Looking at DTG, we continue to see very strong momentum with our Atlas platform. Recently, Sticker Mool, a global leader of fully customized B2C products, integrated a fleet of our Atlas systems into their business and are utilizing their growing customer base to support a strong DTG revenue channel. We began shipping the Atlas maps in the third quarter and feedback from our customers has been extremely positive. TSC who owns and operates more than 25 Atlas systems, not only decided to add additional Atlas Maxes to their operation, but also to upgrade their entire Atlas fleet to Atlas Maxes. Looking ahead into 2022, the NPI pipeline is unprecedented. On the immediate horizon, we are gearing up to start executing in Q1 2022 for our customers on extremely valuable upgrades to their Atlas fleets, including MAX, XDI, next-generation pallets, and a much-anticipated automated robotic garments handling system. These innovative upgrades have a tremendous ROI for our customers, and we expect them to have a material contribution to our business throughout the next year. Also being released in early 2022 will be our new Atlas Poly, which will completely transform the sport apparel and leisure segments of the market. We will also release our Quest Quality Control, the first of its kind solution, ensuring color and quality consistency across any type of garment and machine. We continue to see great traction for Kornit X across brands, marketplaces, and retailers. For example, we recently integrated Hype, a young and fast-growing UK brand, onto the CornitX platform. This will enable them to onshore their on-demand production, reduce lead time from 12 to 16 weeks to less than a day, and minimize their 12 weeks of stock. They will now be able to launch five times as many new products per week due to their new virtual approach with Kornit X. In Asia, Deps Textiles, one of the largest fashion apparel textile manufacturers in Japan, started to use our Presto system to enter the sustainable on-demand production utilizing our Kornit X platform. Hype, Boohoo, and Devs are just a few of great examples of a huge opportunity we see for Kornit X. Before concluding, I'd like to share with you some additional news. Guy Avidan will be leaving Kornit. Guy started at Kornit as Chief Financial Officer and had a long and successful career with the company, taking us through our IPO before leading KornitX. Aaron Yaneli has been promoted to the role of the President of KornitX and will be joining the Executive Management Team. Aaron joined Cornite a few months ago as Chief Operating Officer of Cornite X and together with Guy has been laser focused on successfully implementing our execution plans for scaling Cornite X. Prior to joining Cornite, Aaron was Head of Operations for Merch by Amazon. Throughout his career, he has built and scaled large global on-demand businesses utilizing cloud-based software and advanced printing technologies. Guy will be working closely with Aaron in the coming months to assist in the transition process, after which he will be moving on to his next chapter in life. Okay, so in summary, we had a tremendous third quarter and first nine months of the year. We are currently focused on closing the year strong and supporting our customers to ensure they are ready for a successful peak season. We are also gearing up to what we expect to be an amazing 2022 for the company. Based on our strong momentum and with the guidance Alon is going to provide, we expect to end 2021 with over 65% revenue growth year over year. With that, let me turn the call over to Alon for a closer look at the numbers and guidance before I come back and provide some concluding remarks. Alon.