Kornit Digital Ltd.

Greetings and welcome to Cornette Digital's fourth quarter and full year 2024 earnings conference call. As a reminder, this call is being recorded. I would now like to turn the conference over to your host, Mr. Jared Maimon, Investor Relations for Cornette Digital. Mr. Maimon, you may begin.

Thank you, Operator. Good day, everyone, and welcome to Cornette Digital's fourth quarter and full year 2024 earnings conference call. Joining me today are Chief Executive Officer Ronen Samuel and Lori Hanover, Courtney's Chief Financial Officer. For today's call, Ronen will recap the full year 2024, provide comments on the fourth quarter, and then discuss our view on 2025. Lori will then review the fourth quarter in full year numbers and provide our first quarter outlook before we open it up for Q&A. Before we begin, I would like to remind you that forward-looking statements within the meeting 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 plans, strategies, projected results of operations, or financial condition, and all statements that address developments that the company expects will occur in the future. Forward-looking statements are subject to known and unknown risks and uncertainties that could cause results to differ materially from those implied by the forward-looking statements. I encourage you to review the company's filings with the Securities and Exchange Commission, including the company's annual report on Form 20F, filed with the SEC on March 28th of 2024, which identifies specific risk factors that could cause actual results to differ materially. Any forward-looking statements are made currently, and the company undertakes no obligation to publicly update 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 directly 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'd now like to turn the call over to Ronan. Ronan.

Good morning, everyone, and welcome to Kornit's fourth quarter and full year 2024 earning call. Before we dive into our results, I want to take a moment to reflect the significant transformation Kornit experienced in 2024. This year was a turning point, one in which we successfully executed our strategy, returned to profitability, and positioned the company for sustained profitable growth. At the beginning of 2024, we set clear objectives, returned to a positive EBITDA, generate meaningful cash flow, and establish a scalable, disciplined model that fuels long-term expansion. Thanks to the dedicated effort of our teams, I am pleased to report that we have not only delivered on these goals, but also introduced game-changing innovation, strengthened our market position, and expanded into new strategic adjacencies. Today, we are pleased to report Q4 2024 revenues of $60.7 million and an adjusted EBITDA margin of 13.8%, both within our guidance ranges, demonstrating the successful implementation of our strategy and an ongoing business momentum. We also reported $26.7 million of operating cash flow in the quarter. These results mark two significant milestones, achieving positive EBITDA for the full year and generating substantial operating cash flow. Our Q4 performance was fueled by a successful peak season and growing impressions across our key customers. One of the most exciting highlights of Q4 was the Apollo platform performance during the peak season. Having delivered 15 Apollo systems throughout the year, with most becoming fully operational during the critical period, customer feedback has been excellent, reinforcing Apollo's role as a key enabler of mass-scale digital production. 2024 was not just about financial milestones. It was about laying the foundation for Kornit's long-term success. we introduce industry-defining solutions, including Apollo, Atlas Max Plus, and Vivido Inc. for wall-to-wall, setting new benchmarks for quality, cost efficiency, and sustainability. Apollo has redefined mass-scale digital production, delivering unmatched productivity, automation, and consistency. The strong market response is evident in our growing pipeline, which is already filling up for 2025 deliveries. Additionally, we have successfully upgraded a significant portion of our install base, transitioning customers from Atlas to Atlas Max and are now beginning to upgrade them to Atlas Max Plus. This upgrade path was reinforced by a printful recent announcement highlighting the growing adoption of our latest technology and its ability to drive efficiency and quality at scale. Our all-inclusive Qlik model is revolutionizing how customers embrace digital technology. driving strong adoption, accelerating penetration in the screen printing market, and already generating meaningful ARR, which we will start reporting as promised on our Q1 earning call. We have expanded our horizon to new markets, including bulk apparel, footwear, and home decor, while deepening our presence in key regions. In Bark Apparel, we have delivered Apollo and Atlas Max systems to major screen printers, adopting digital technology for the first time, marking a significant step in the transformation of high-volume apparel manufacturing from analog to digital. In footwear, we delivered our solution to three different customers in Asia, with one already in full production for major global brands. This customer has seen strong initial adoption and is now scaling up with additional systems planned for deployment in the first half of 2025, reinforcing the growing demand for digital production in the footwear sector. We fundamentally shifted our go-to-market approach, emphasizing customer success, account management, and recurring revenue growth. We also strengthened our team with top-tier talent across all functions, ensuring we have the right leadership in place to drive sustained execution. In conclusion, we have built a business that is resilient, profitable, and pause for long-term success. Beyond our innovation, we continue to deliver shareholder value. We have executed 75 million of our previously announced 100 million share repurchase program, which we expect to complete by mid-2025. As we enter 2025, Cornit is in the strongest position it has ever been. The market is showing signs of improvement driven by a clear shift among brands, retailers, and creators towards on-demand manufacturing. This transition is becoming increasingly critical for businesses aiming to respond swiftly to evolving consumer demand while minimizing excess inventory and waste. Additionally, there is significant shift toward near-shore and on-shore production as companies seek enhanced supply chain resilience and faster turnaround times. While these trends are positive, certain macroeconomics uncertainties persist. Recent political developments in the U.S. and potential tariffs on Mexico have raised concerns among some of our customers regarding near-shore manufacturing. Furthermore, potential inflationary pressures steaming from these policies could impact consumer purchasing power. We continue to monitor this dynamic closely while supporting our customers in navigating these shifts effectively. As we stated in our last call, 2025 is about execution, translating the strong foundation built in 2024 into scalable change. profitable growth, strengthening our market leadership and driving the industry forward with our innovative solutions and business models. With our continued focus on innovation, customer success and disciplined financial management, we are confident in our ability to drive significant value for our customers, employees and shareholders. With that, I will now turn the call over to Lori for a closer look at our financials. Lori.