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Dec 31, 2023
Digi Q1 2024 Earnings Report
Digi International reported a decrease in revenue but an increase in gross profit margin and record ARR.
Key Takeaways
Digi International reported a slight decrease in revenue for Q1 2024, but achieved a record end-of-quarter ARR. The company is focused on deleveraging, managing inventory, and strategic acquisitions to achieve long-term growth targets.
Revenue decreased by 3% to $106 million.
Gross profit margin increased by 130 basis points to 57.6%.
ARR reached a record $108 million, surpassing quarterly revenue for the first time.
Cash flow from operations was $19 million, driven by changes in inventory.
Digi
Digi
Digi Revenue by Segment
Revenue by Segment
IoT Product & Services Revenue
CapyFin.comIoT Solutions Revenue
CapyFin.com Forward Guidance
Digi anticipates revenues of $105 million to $109 million for the second fiscal quarter. Adjusted EBITDA is estimated to be between $22.5 million and $24.5 million. Adjusted net income per share is anticipated to be between $0.45 and $0.49 per diluted share.
Positive Outlook
- ARR and Adjusted EBITDA growing 5%.
- Focus on deleveraging the company.
- Managing inventory appropriately as supply chain normalizes.
- Acquisitions remain a top capital priority.
- Evolving and monitoring acquisition pipeline.
Challenges Ahead
- Revenue projects to be flat year over year.
- Uncertainty in foreign exchange translation.
- Restructuring, interest and certain tax related events.
- Inventory position remains elevated.
- Potential recession and its impact on product demand.
Revenue & Expenses
Visualization of income flow from segment revenue to net income