Greetings, and welcome to Kornit Digital's Second Quarter 2023 Earnings Conference C all. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host today, Mr. Andrew G. Backman, Global Head of Investor Relations for Kornit Digital. Mr. Backman, you may begin. Thank you, operator, and good day, everyone, and welcome to Kornit Digital's second quarter 2023 earnings conference call. Joining me today are Chief Executive Officer, Ronen Samuel, Lauri Hanover, Kornit's Chief Financial Officer, and Amir Shaked-Mandel, EVP of Corporate Development. For today's call, Ronen will provide comments on the second quarter of 2023. Lauri will then review the second quarter numbers and provide our third 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 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 plans, strategies, projected results of operations, or financial conditions, 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 read the company's filings with the Securities and Exchange Commission, including the company's Annual Report on Form 20-F, which was filed with the Securities and Exchange Commission on March 30, 2023, which identifies specific risk factors that could cause actual results to differ materially. Any forward-looking statements are made concurrently, 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 measurements 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 press release published today, which is also posted on the company's investor relations website. At this time, I would like to now turn the call over to Ronen. Ronen? Thanks, Andy, and thanks to everyone for joining us on today's call. Earlier today, we reported second quarter revenues of $56.2 million, in line with the guidance we provided in May, which, as a reminder, included the impact from the fair value of issued warrants. During the quarter, impression grew at a double-digit pace year-over-year for the second consecutive quarter, driving a steady improvement in capacity utilization. Consumable revenue grew at a strong double-digit rate across our customer segments, including key strategic accounts and throughout all our operating regions. Far, in the third quarter, impression growth is again on pace to increase at a double-digit rate year-over-year, which give us confidence in solid consumable growth for the second half of the year. Our services business also continues to demonstrate exceptional revenue growth during the second quarter and so far during the third quarter, as our customer actively upgrade and transition to our MAX technology. We are very pleased with the customer feedback we have received on our MAX technology and anticipate additional upgrades orders during the second half of this year and throughout 2024. Along this year, services have improved considerably, both in terms of revenue generation and in increased operating efficiencies. System sales volumes remained soft during the quarter, mainly due to continued challenges in capital equipment spending and as our customized design customers continue to work through excess capacity. While we anticipate the prevailing softness in system sales volumes to continue in the short term, we have implemented strategic measures to attract new customers, including brands, retailers, and digital platforms. Additionally, we are targeting new growth regions within key textile production hubs to diversify our customer base and establish a healthy pipeline for 2024 and beyond. In addition to diversifying our customer base and entering new markets, we have taken various actions to increase efficiencies throughout our operation. Based on our progress to date, we currently expect to approach breakeven on adjusted EBITDA basis for the fourth quarter of this year, even at a quarterly revenue run rate in the mid $60 million range, due to a favorable sales mix of higher-margin consumables and quarterly OpEx in the low to mid $30 million range. We are also aiming to deliver profitable growth for the full year 2024. As a result of our focused R&D, marketing, and other efforts, we had a hugely successful ITMA trade shows in Milan. We had a very high customer engagements with new customers from key textile regions such as India, China, Turkey, Morocco, and from Latam countries such as Argentina, Brazil, and Mexico. We also secured high number of quality leads and sales orders for both direct-to-fabric and direct-to-garment systems. For example, at ITMA, we signed a deal with one of the top textile manufacturers in India, which we are planning to deliver in the third quarter. This new relationship opens up a new market for us in India, a market we believe has the potential to meaningfully grow over the next several years. Approximately 60% deals signed were from net new customer, opening the door for additional systems, consumables, and services sales, providing us with healthy pipeline for 2024 and beyond. The level of energy and innovation Kornit brought to ITMA was incredible, with hundreds of customers and prospects providing favorable feedback for our portfolio. We also unveil our new Apollo high-throughput platform and secure several new orders. We expect to recognize revenues for the Apollo in the first quarter of 2024, and are currently focused on building a substantial order backlog for the full year. During the second quarter, we installed our first beta system in the U.S., which is now up and running, and we are in the process of installing the second beta in this region. As we have stated previously, the Apollo platform has the potential to provide us with annual consumable and services revenue of approximately $1 million per system, once installed and running at high utilization rates. In summary, we have built solid foundation for future growth, and Kornit's long-term growth drivers remain firmly intact, a view reinforced by our recent experience at ITMA. We have made substantial progress throughout the first half of this year, as evidenced by our successful introduction of new technologies and solutions. Our MAX platform has been well received by the market, becoming the new standard in the market. Our quality of prints, XDi capabilities, and our ability to sustainably print white on dark fabrics, have opened up new markets and driven increased customer interest and engagements. As a result, we continue to diversify our business and bolster our pipeline. We have also materially adjusted our cost structure and operation, reallocating resources to further enable growth engines, such as launching the Apollo platform and capitalizing on growth opportunities in new markets to our direct-to-fabric business. We remain confident that our strategy, product roadmap, and solid balance sheet position us well to generate meaningful long-term growth. On a final note, this morning, we issue our third impact report, which highlights our activities and the progress we made on Kornit's long-term impact strategy, demonstrating our commitment to a more sustainable fashion and textile industry. With that, let me turn the call over to Lauri for closer look to our second quarter financial and third quarter guidance. Lauri? Thank you, Ronen. Good day to everyone. As Ronen mentioned, second quarter revenues were $56.2 million, in line with the guidance range we provided in May. We experienced strong double-digit year-over-year revenue growth from both consumables and services. As expected, meaningfully lower year-over-year system sales drove the low single-digit decline in total revenues as compared with the same period last year. In the Americas, year-over-year growth was attributable to a double-digit increase in consumables across strategic accounts, and again, a strong quarter of services growth contribution, due mainly to MAX upgrades. In EMEA, while consumables growth was robust due to a larger installed base and increased usage, the year-over-year decline was driven by lower system sales, as customers continued to encounter financing challenges. We continue to explore ways to support qualified buyers to secure financing, and now have a number of third-party financing partners lined up. We continue to seek additional partners who understand our business and how the company's solutions help our customers. The APAC region also experienced healthy consumables and services growth as compared with the same period last year. As Ronen said, we continue to develop a meaningful pipeline of long-term growth opportunities in this region, especially in key textile-producing countries such as India and China. Moving to margins. Non-GAAP gross margin was 36.1%, compared with 38.6% in the same period last year. Lower system sales volumes drove the year-over-year decline in gross margin, even as higher margin consumables grew nicely and as the profitability of services meaningfully improved. We continue to expect gross margin improvement throughout the balance of this year, given the historical cadence of consumables as a percentage of sales being progressively higher in the third and fourth quarters. Turning to expenses. Total second quarter non-GAAP operating expenses were $34.1 million, down approximately 16% from $40.7 million in the same period last year. The year-over-year decline primarily reflects the impact of our previously completed workforce reductions and lower marketing spend. As a result, adjusted EBITDA loss for the second quarter of 2023 was $10.7 million, an improvement as compared with adjusted EBITDA loss of $15.7 million in the same period last year. Adjusted EBITDA margin for the second quarter of 2023 was - 19%, again, in line with the guidance range we provided in May. Our cash balance, including bank deposits and marketable securities at quarter end, was approximately $592 million. Cash used in operations during the second quarter was $15.5 million, driven primarily by the operating loss and changes in working capital. Accounts receivable increased due to the timing of collections, as well as a higher balance associated with extended payment terms to select customers, while inventories declined sequentially. We continued to remain focused on improving working capital to drive cash conversion. Since the beginning of the year, we have repurchased approximately 938,000 shares under our share repurchase program for an aggregate amount of $21.8 million, resulting in an average price paid per share of $23.20. The initial six-month court-approved period for the company's share repurchase program of up to $75 million expired on June 15. We have applied for and received a new approval from the Israeli court, covering the unused balance of our previously authorized share repurchase program for an additional six-month period. Given our strong balance sheet, we continue to believe that we can opportunistically repurchase shares without impacting our ability to execute the company's growth initiatives. Turning to third quarter guidance. We currently expect revenues for the third quarter of 2023 to be between $58 million and $62 million, and adjusted EBITDA margins to be in the - 6% to - 13% range. As a reminder, the guidance for revenue and adjusted EBITDA margin includes the impact of the non-cash expense associated with the fair value of the company's warrants to our largest global strategic account. As Ronen mentioned, we currently expect to approach break-even on an adjusted EBITDA basis for the fourth quarter. Before I hand it back to Ronen, I want to announce that Andy Backman, our Global Head of Investor Relations, will be leaving Kornit at the end of this month to pursue a new opportunity. Since joining Kornit, Andy has played a pivotal role in leading and transforming our investor relations program, establishing it as a world-class program and operation. He will be greatly missed, and we thank him for all his many accomplishments and contributions to the company, and wish him only the best in his new endeavor. We are also excited to announce that Jared Maymon, who is here with us today in Israel, will be assuming the role of Head of Investor Relations. Jared comes to us from Berenberg Capital Markets, where he covered Kornit as a sell-side analyst for the past two years. Jared, welcome aboard, and we all look forward to working with you and Sarkis. With that, I would like to turn it back over to Ronen to open the call up for Q&A. Ronen? Thank you, Lauri. Operator, we are ready for the Q&A session. Thank you. We will now conduct a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Once again, that's star 1 to ask a question at this time. One moment while we poll for our first question. Our first question comes from Erik Woodring with Morgan Stanley. Please proceed. Super. Thank you, guys, for taking my question. Good morning. You know, so, so good to see the uptick in impressions, and improvement in utilization, both in 2Q and now some of this early data that you're pointing to in 3Q. You know, maybe just based on your investor conversations and any, you know, kind of telemetry data that you have, any way that you can kind of gauge where you think average utilization might be today, and, you know, how long does that mean your customers can continue to sweat their assets before they really start to expand capacity? Would love if you could just double-click on that, and then I have a follow-up. Thank you so much. Thank you, Erik, good morning to you as well. This is excellent question. It's really depends on, on the type of segments we are looking into, okay? When we're talking about a utilization and underutilized, mainly we refer to our customers in the customized design, where they saw a huge peak during 2020, the second half of 2020, 2021, and then they invested a lot in many new systems, and they saw the downside at 2022. What we see in Q2, and we saw it already in Q1, we saw them increasing volume, some of them actually going into double-digit growth. Across our install base, we see double-digit growth, not only in the strategic account, but across all our install base. We see it also in the supplies revenues. Overall, we see a good improvement on the utilization. However, we will need to wait for the peak season and to see that they're getting into high utilization in order for them to reach to a point that they need to invest in additional capacity. We assume that those key customers on the customized design will get into this cycle only next year, after the peak season, after they have a better visibility. Currently, the trends of supplies continue to be very positive across those type of customers. On the other hand, we see customers that are in different market segment, if it's in the DTF, Direct-to-Fabric, or if it's in the replacement of the screen market, there we see massive growth in specific customers across U.S., EMEA, and Asia Pacific. We see them adopting the MAX technology, if it's, the Atlas MAX, and in the future, we will see it also on the Apollo. We see them growing very rapidly, and actually we can start to see them buying additional systems, and growing. As I mentioned, depends on different market, but overall, we see a very positive trend. No, that's super helpful. Thank you, Ronen, for that color and kind of that bifurcation between DTF and DTG. You know, the, the second question I just wanted to pick your brain on was, you know, in your, in your prepared remarks and in the press release or presentation, you mentioned, you know, a strong pipeline for 2024 and beyond, post-ITMA. Can you, can you maybe just double-click on that comment and talk about some of the devices that saw some of the strongest interest at ITMA? Any new trends that emerged that you think are important, for all of us to think about? Any kind of advice or guidance that you could provide us in terms of how to think about the timing of, you know, revenue recognition for, for any of those, you know, new products that are now in your pipeline? That's it for me. Thank you so much. Yeah. Thank you, Erik. First, first of all, for the impression on ITMA. ITMA was a incredible, successful event for Kornit. First of all, from the market trends, we saw all the market trends that we were talking for years really happening. Customers and visitors that came to our booth were talking about how do they move into on-demand manufacturing, onshore, moving to production onshore and nearshore, sustainability becoming a big issue for the, for the brands and retailers, and they're all looking for pigment solution, and by far, we have the best pigment solution. We met with hundreds of visitors, if it's brands, retailers, customer, prospects, different partners, and the excitement of the solutions that we have shown on ITMA was remarkable. People were amazed by the MAX technology, and the MAX technology is now the new standard, the new benchmark in the industry. Everybody's talking about it, and it's taking us deeply into the screen market, into the replacement market, which is a totally new market that we never played there before. The Atlas MAX Plus with the additional capability of additional productivity, the QualiSet, the XDi, really opening for us not only additional capacity within, within our customer, but new market entries. ITMA was very successful event for our Atlas MAX Poly. Atlas MAX Poly is gaining momentum within retailers, sports retailers, and sports brands. We see it both in the professional sport, but also in the athleisure market. We closed quite few orders of the MAX Poly, and we have a very strong pipeline moving forward into H2 and 2024. The Apollo was a unbelievable success, was running around the clock. People were amazed. For the first time, they can see a system that's running at 400 garments an hour, in full productivity with one operator. This is a breakthrough for this industry based on MAX technology. We got multiple orders for the Apollo. As I mentioned, we're already running the beta and installing the second one. The feedbacks are great. This will position us deeply into the screen market, and we expect a substantial growth on the Apollo next year. The recognition of the units that we install and we are going to install this year will happen only in Q1. Presto. Presto MAX with the new ink, which focus on dark, on the black, on dark black, ability to print on dark fabric with white ink, opened for us, for the first time, really the fashion market, but also the home decor. More than that, for the first time, we are talking, and we had a very strong funnel and opportunities within different hubs of textile market in the world. If it's India, if it's in Turkey, if it's in Brazil, Mexico, we have a very strong pipeline going there, a lot of excitement. It was the, one of the hit of this event. Also, of course, we show the Tesoma dryer, the RSS, the KornitX. Overall, great feedback on our solution. This show really show us that, from focusing on customized design, now Kornit switch gear on focusing on the replacement market, both in the direct-to-fabric, going after the replacement, which is a massive market, but also in the direct-to-garment, which is a very big opportunity for us. We collected more than 1,000 leads during the show. Out of them, we already identified hundreds of opportunities, real opportunity. We qualified, we follow up with those customer, hundreds of opportunities. We also got, very nice, orders and LOIs. Out of those orders and LOIs, close to 50% of them already converted to PO or in the place to be converted very, very soon, to PO. 50%, we never seen such a high conversion. Actually, from all the deals that we got during, and the LOIs, 60% are from new customer, and when we look at the opportunities that we have, is more than 90% are net new customer, which opened for us massive market opportunity moving forward. Overall, when we look at the show, we show there that one word is leadership. Kornit show we are the leader of this industry, and all the eyes are looking at Kornit. Now, in terms of conversion, some of the deals we converted already in Q2, a few of them. Few you will see also in Q3 and Q4, but the majority will be only in 2024, throughout 2024. Now we're in the process of really going one by one. As I mentioned, many of those leads become an opportunities, many of them are, are, are very, very hot. We still facing macroeconomics challenges with the interest rate, people are waiting. Some of them waiting for the peak season, some of them just waiting to see what will happen in the interest in the, in the market. They're all excited about our solution, they're all serious about it, and we believe that we'll be able to convert many of them into 2024. We believe 2024 will be the year, not only by scaling the Apollo and the new Atlas MAX, the new Atlas MAX Plus, and the Presto MAX with the new ink, but it's the year that we will show again, growth, and we will show a profitable growth in 2024. That was, that was amazing. Thank you, Ronen. Good luck to you guys. Thank you. Thank you. Next question, please. Our next question comes from Brian Drab with William Blair. Please proceed. Hi, thank you. I'm on two simultaneous calls, so I'm gonna try and just ask my questions and then get back in the queue. Can you talk about the upgrade timing, particularly at some of the bigger customers, going into 2024, upgrade to MAX technology? Also, the Presto demand, which I know is, you know, there's a ton of interest at, in the Presto at the ITMA show. You know, how many of those did you sell? Or sign letters of intent for, what's the timing like of the delivery of some of those orders and revenue generation? Sorry, I'm just gonna jump back into the queue, though. Thank you. Yeah. Thank you, Brian. As regarding to the upgrades, H1 was very strong in terms of implementing upgrades from Atlas to Atlas MAX. Some of it with our key customers, some of it with smaller customers. We expect Q3, or another strong quarter for upgrades across the different regions. We do not expect Q4 to be a strong quarter for upgrades. Customers are very busy in Q4, and we do not expect to do an upgrade during Q4. We are very, very busy right now completing all the upgrades that possible with our customers in Q3. We're already aware of customers that expecting to continue the upgrades in Q1 and Q2 next year, some of them are strategic customer. As for our global strategic customer, we passed all the testing regarding the quality and the productivity, and we just expect waiting to get a green light when to start the upgrades on their install base. Those is regarding the upgrades. You will see it again in Q3 and first half of next year. Regarding the Presto, as I mentioned, Presto, what we have shown with the quality of the new inks that we presented, the ability to print on dark fabric with white ink, the XDi, opened for us for the first time, the replacement market. Now let me explain what is the replacement market. Till now, we were selling the Presto mainly for customers that were looking for really short runs. Printing all kinds of, could be, fashion garments, short run and even on the core short run. For the first time, we are now dealing with massive textile manufacturers in major hubs around the world that looking to transform their business to a more sustainable on-demand, but not for short runs, really for mainstream production. Doing the calculation of the total cost of ownership, the ability to print on almost any fabric without any pretreatment, any post-treatment, any washing, any waste of water, fully sustainable, makes a lot of sense to many of them to move now to our Presto solution, our Presto MAX solution. We will see a strong Q3 on the Presto. We expect a strong one. We expect also a strong Q4. Many of the deals or many of the opportunities that we got at ITMA and the deals that we signed at ITMA will be implemented only beginning of 2024. We see a massive opportunity and a growth engine for Kornit for the first time. DTA, direct-to-fabric, is a real growth engine for our business. Latonya, next question, please. Our next question comes from Tavy Rosner with Barclays. Please proceed. Hi, thanks for taking my question. I wanted to ask about Amazon. Broadly speaking, how is the relationship going? Last quarter you mentioned that some systems that they ordered hadn't been shipped yet, so I was wondering if they did ship and were installed, and if there's any update with Amazon potentially upgrading their portfolio to systems like the Apollo? Yeah. Thanks for the question, Tavy. With our global strategic customer, we have a very, very close relationship. As I mentioned before, we're always working with them on long-term plans, three year plans, their business is doing very good. They had a great H1. We could continue to see the momentum go growing. When I'm saying momentum, it's meaning in terms of impressions, number of impressions that is growing without getting into numbers, but that's a strong double-digit impression that is growing. As you all recall, last year, they were supposed to open new sites. We sold many systems. Those sites were delayed. Finally, those sites are ready. We actually, in those days, we are installing on both sites, those many, many systems, so they will be ready for the peak season, for Q4 to run. So we expect a massive growth in terms of impression from our global strategic customer into Q4 and definitely into 2024. As for additional capital investment, it's still within their internal, their discussion. There are multiple opportunity of capital investment and different timetables from them. One of them, we were talking about upgrading their fleet of Atlases to Atlas MAX. As I mentioned, they already did all the testing. Now they're even looking into the Atlas MAX Plus. Potentially, they did all the testing, we passed them, and they just need to give us the green light to move ahead. This is internal decision of these global strategic customers, and we are waiting for it. Another opportunity is really to trade in their old fleet of Avalanches, and trading in them into the MAX technology, if it's the Atlas MAX Plus or the Apollo. I can tell you that they are very excited about the Apollo. They're looking at the future growth coming from this platform. As we mentioned on previous call, they will be testing the Apollo very, very soon, so they will be able to gear up into 2025 with the Apollo. This is another major opportunity. Of course, with this, this strategic customer, global strategic customer, there are other opportunity, if it's with their fashion department or business, and looking into both the direct-to-fabric. We see an opportunity also on the Tesoma dryers and other areas. It's a massive opportunities. We are supporting them very closely. We are proud to be to partner with them, and we are proud to see the growth moving forward. Thanks, Ronen. Thanks, Tavy. Latonya, next question, please. Our next question comes from James Ricchiuti with Needham & Company. Please proceed. Hi, good morning. This is actually Chris Grenga offering for Jim. Thank you for taking the questions. Late in June, you, you announced the Amaze deal. I was just wondering if you could elaborate on that, on that deal, whether it entails incremental units or is largely leveraging the existing Fulfiller network, and what you see in terms of additional enterprise scale prospects for KornitX? Thank you very much. ... Yeah, thank you for the question. It's an interesting deal, but it's another proof point for the direction that the industry is taking. We see a massive opportunities with digital platform. Platform like Canva, Canva, like Wix, and we announced with the Amaze. What Amaze was important, that they chose not only KornitX as the platform, but they chose an Atlas MAX as the only platform that will print the decoration and the garment. This is a very, very important message. As for the business just starting, we already connected them with a few of the Global Fulfillment Network. I can tell you that one of them already ordered a few system because of this connection in North America, which is another testament to the value of connecting digital platform and demand generation to our customers that buying system from us. We expect, and we believe that Amaze will grow. There's a big potential not only in the U.S., but in Europe and Asia Pacific, and we support them like we support other digital platform, like we're supporting brands and retailers. The nice thing that we are connecting is to our customers, to our install base, buying more systems and more ink from us. Great. Next question, please? Uh. Thanks, Chris. Our next question comes from Greg Palm with Craig-Hallum. Please proceed. Yeah, thanks, everyone, thanks for taking the question. I, I guess just starting off, it seems like the implied second half outlook in terms of, of revenue is a little bit lower relative to where we were three months ago. I'm just kind of curious, what's changed? You know, how much of, of maybe some activity that you thought would have landed this year got pushed into 2024? Then just as you sort of look at other ways to convert customers, I'm, I'm curious if you can give us a little bit more color on sort of financing alternatives. It sounds like you've maybe opened up that, that option, and I'm just curious if you, if you think that could be a big driver of conversions going forward. Yeah. Thank you for the question. If, if you, you remember that we were talking about the visibility that we have for H2, and we always said that we have kind of 70% visibility, which coming from the supplies, the ink, and from the services. Actually, as of today, the ink and the consumable is actually trending better than what we expected, and it's growing faster, which is a great method, because it shows the health of our customers, and it show that they are-- they will need more system in the future. We also trending better on the services, and services revenue is growing faster, and also gross margin looks very, very nice there as well, and trending in a very positive way. The place that we are below what we expected in terms of total revenue is systems. Now, on system side, let's look at it from two angles. One, in terms of finally, we have really line of sight, line of sight for pipeline. Before ITMA, we actually were almost blind how H2 will look like. Today, we have a very clear line of sight for H2 and beyond. We have the pipeline for 2024. We know with who we are dealing, and we have a very, very clear order pipeline for the second half of this year. Some of the pipelines we wanted to convert after ITMA, we understand now that it will take longer, and it will take us to 2024, mainly due to the macroeconomics. Customers looking for financing, some of them prefer to wait on the, on the fence before they're jumping in. Some of them prefer to wait for the peak season and taking decision only after the peak season. This is the, the reason why we are saying H2, in terms of system, will be still a, a bit lower than what we wanted it to be. However, the good news is that we took measure, measures, in advance. Not only the supplies, gross margin or, and the growth revenue and gross margin, both on supplies and services looks good. We took measurements on the, on the OpEx, and we are going to reach a break even on adjusted EBITDA basis, and we're going to approach break even on adjusted EBITDA basis, in Q4. We feel very comfortable about it. As for 2024, as I mentioned before, we are aiming for a profitable and year that we will grow versus 2023. Yeah, thanks for that. That was a very helpful, detailed answer. Just to be clear, on Q4 specifically, I think you had mentioned approaching break even on a revenue run rate that's now towards the mid-$60s million versus $70 million previously. Are you effectively guiding revenue in that sort of mid-$60s million range for Q4? I just want to confirm that. We are guiding only for Q3. We are not guiding for Q4. We are saying that we can be both reaching, approaching breakeven in the mid-60s with a OpEx in the low-30s to mid-30s. This is what what we believe that we, we can do. We are not guiding for that, but this is kind of indication where we see right now the business. Understood. All right, thanks. Thanks, Greg. Next question, please. Our last question comes from the line of Mr. Chris Moore from CJS Securities. Hey, guys. Thanks for taking the question too. it sounds like the ITMA- Good morning. Good morning. ITMA conversion rate of LOI to purchase orders is, was quite high, getting better. Is there any way you can size the purchase orders to date? We are not providing those numbers specifically. What I can tell you that Kornit today, after ITMA, with the technologies that we have, we brought both to the DTG and the DTF, Direct to Fabric, is a different company. Is much more diverse, much stronger than ever before. If you look at Kornit in the past, we were a company that 90% of our revenue came from the DTG, a lot of it from few key customers, strategic customers, a lot of it from North America. Today, we are a different company. A company that Direct to Fabric becoming a very, very important market and growth market. Within the DTG, it's not only the customized design. We are getting to the replacement market, which is much, much bigger, many of those deals now are going there, mainly with those, of course, with the Apollo and the Atlas MAXes. We are entering to new geographies. If it's India, China is growing, Mexico, Turkey, Morocco, and many, many other hubs that we've never been able to get there because customized design was not relevant, and replacement market is very relevant for them, and each one of them is huge. We are getting to many, many new key customers, strategic customers. The deal that I mentioned in India, in India, is one of the largest textile manufacturers, and potential to buy many, many systems only with these customers, and definitely many others will follow. China, we just installed in Q2, DTS in totally new application. I don't want to get right now to the application. Would like to keep it confidential, but this is totally new application, very exciting one, with potential to tens of units at only this customer. It's a massive, massive customer, totally new opportunity, new market and new applications that we've never been there before. Other than that, we can see the growth coming from retailers. A few retailers that we are working with them are growing on a quarterly basis, both in impression and both in buying more systems. We can see the engagement with the brands, totally different level of engagement. Brands need to move to on-demand production, on-shore production, sustainability becoming critical for, for those brands. We have a high-level engagement with different tiers within the brands. Another market that we were talking about it for, for a few years, but finally is, is growing, is the sports, sports market, with now with the Atlas Poly, and we see it also with the Presto MAX. Getting to this market is, is a big opportunity, and we're starting to get orders, and the pipeline looks great. Another market is the home decor within DTS, that really now is picking up. Kornit today is in a different space, and the future starts now for Kornit. We promise to the market that we are going to be approaching breakeven. 2023 was a year of transition for Kornit, moving from H1 to H2, delivering all the products that we're delivering to ITMA, bringing the business back into breakeven on adjusted EBITDA basis into Q4. 2025 will be the year that Kornit will be back to profitable growth. All right. Thank you for that, Ronen. 2024. Yeah. What did I say? 25. Oh, 2024 will be the year that Kornit will be back to profitable growth. If I mentioned 2025, is a mistake. Got it. Thank you. Thanks, Chris. Mr. Backman, we have no further questions at this time. Great. Thank you so much, Latonya, and thank you, all for joining us today. As always, if you should have any follow-up questions, please feel free to reach out directly. Latonya, will you please, close the call? Thank you so much. Thank you. This does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a great day.