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Mar 31, 2023
Digi Q2 2023 Earnings Report
Reported record quarterly revenue and growth in ARR.
Key Takeaways
Digi International reported a record quarterly revenue of $111 million, a 17% increase year-over-year, and an end-of-quarter ARR of $99 million, a 10% increase year-over-year. The company's EPS was $0.16, and adjusted EPS was $0.50.
Record quarterly revenue of $111 million, up 17% year-over-year.
ARR reached $99 million at quarter end, a 10% increase year-over-year.
EPS increased to $0.16, a 100% increase year-over-year.
Adjusted EPS increased to $0.50, a 22% increase year-over-year.
Digi
Digi
Digi Revenue by Segment
Revenue by Segment
IoT Solutions Revenue
CapyFin.com Forward Guidance
The company expects revenue of $107 million to $111 million for the third quarter of fiscal year 2023, with Adjusted EBITDA between $23.0 million and $24.0 million. Adjusted EPS is projected to be $0.47 to $0.49 per diluted share, using a diluted share count of 37.3 million shares outstanding. The company expects to grow annual revenues at least 12% as the supply chain continues to ease and demand remains strong. They expect ARR and Adjusted EBITDA to grow faster than our revenue growth.
Positive Outlook
- Revenue expected between $107 million and $111 million.
- Adjusted EBITDA expected between $23.0 million and $24.0 million.
- Adjusted EPS projected to be $0.47 to $0.49 per diluted share.
- Annual revenues are expected to grow at least 12%.
- ARR and Adjusted EBITDA are expected to grow faster than revenue growth.
Challenges Ahead
- Guidance considers supply chain challenges.
- Guidance considers challenging macro conditions.
- Difficult to predict the impact of foreign exchange translation.
- Difficult to predict the impact of restructuring.
- Difficult to predict the impact of interest and certain tax related events.