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Mar 31, 2022
Digi Q2 2022 Earnings Report
Digi reported record quarterly revenues and ARR.
Key Takeaways
Digi International reported a strong second quarter with record revenues of $95 million, a 23% increase year-over-year, and record ARR of $90 million, a 165% increase year-over-year. The company's Adjusted EPS increased to $0.41, a 52% increase, and Adjusted EBITDA increased to $19.5 million, a 67% increase.
Revenue was $95 million, an increase of 23%.
Adjusted EPS increased to $0.41 per diluted share, an increase of 52%.
Adjusted EBITDA increased to $19.5 million, an increase of 67%.
Annualized Recurring Revenue (ARR) was $90 million, an increase of 165%.
Digi
Digi
Digi Revenue by Segment
Revenue by Segment
IoT Solutions Revenue
CapyFin.com Forward Guidance
Digi International anticipates revenues between $94 million and $98 million for the third fiscal quarter of 2022, representing 19% to 24% growth year-over-year. Adjusted EBITDA is estimated to be $18.0 million to $19.5 million, and Adjusted EPS is expected to be $0.37 to $0.40 per diluted share, using a fully diluted share count of 36.2 million shares.
Positive Outlook
- Revenues are estimated to be $94 million to $98 million, or 19% to 24% growth year over year.
- Adjusted EBITDA is estimated to be $18.0 million to $19.5 million.
- Adjusted EPS to be $0.37 to $0.40 per diluted share.
- Expect revenues will grow between 16.5% and 23% for the fiscal year.
- Expect Adjusted EBITDA to grow at a faster rate of between 35% to 55% for the fiscal year.
Challenges Ahead
- Supply chain challenges.
- Challenging macro conditions.
- Difficult to predict various items including but not limited to the impact of foreign exchange translation, restructuring, interest and certain tax related events.
- Uncertainty in global economic conditions.
- Economic conditions within particular regions of the world which could negatively affect product demand and the financial solvency of customers and suppliers.