Kornit Digital (NASDAQ:KRNT)

Kornit Digital is an Israeli company that make high-speed inkjet printers for clothing, home goods, and textiles. These are big industrial machines ranging from $60,000 to $800,000, depending on the output and feature set. The smallest machine is roughly 9 ft x 6 ft and 3700 lbs, and the biggest machine 24 ft x 11 ft and 14,000 lbs.

This is razor and blade business. Kornit generates revenue from machine sales and recurring revenue from the consumables. The machines consume anywhere from $5,000 to $300,000 on average in ink and consumables per system. The company also offers maintenance services and extended warranty.

Amazon is a partner and shareholder. Amazon owns 4.75% of Kornit and also purchases products and services from Kornit (contract for $400M in Sept. 2020). I think it's safe to say that Amazon is a fan.

FY 2020 revenue was $193.3 million (7.4% growth YOY). But that includes a major slowdown in Q1 and Q2 at the onset of the pandemic. Q3 (20+% Q/Q) and Q4 (49% Q/Q) saw a major re-acceleration. This is a business growing a lot faster than 7.4%. Using 2021 guidance, my best guess is the 25 - 35% range.

CEO is a former HP executive and doing a great job of innovation and forward thinking. Last year, the company debuted a solution for printing on polyester for leggings and athleisure. On the last earnings call, the CEO discussed experiments with 3-D printing that allow the printers to simulate embroidery and also interest from big business (i.e., established fashion brands).

A lot to like here. This is the "other" printing revolution.

Its a solide company in a expanding industry