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Jun 30, 2024
Digi Q3 2024 Earnings Report
Digi reported a decrease in revenue but an increase in net income and ARR reached a record.
Key Takeaways
Digi International reported a decrease in revenue of 6% to $105 million, but net income increased to $10 million. The company's ARR reached a record $113 million, driven by strong performance in IoT solutions and services. The company expects revenue to be down approximately 5% year over year.
Revenue was $105 million, a decrease of 6%.
Net income was $10 million, compared to $7 million.
Annualized Recurring Revenue (ARR) was $113 million at quarter end, an increase of 9%.
Cash flow from operations was $25 million.
Digi
Digi
Digi Revenue by Segment
Revenue by Segment
IoT Product & Services Revenue
CapyFin.comIoT Solutions Revenue
CapyFin.com Forward Guidance
For the fourth fiscal quarter, revenues are estimated to be $102 million to $106 million. Adjusted EBITDA is estimated to be between $24.5 million and $26.0 million. Adjusted net income per share is anticipated to be between $0.48 and $0.52 per diluted share, assuming a weighted average diluted share count of 37.5 million shares.
Positive Outlook
- Digi remains steadfast in achieving our new long term strategic goals of doubling ARR and Adjusted EBITDA to $200 million within the next five years.
- Digi’s resilient execution in a large and growing Industrial Internet of Things market has stayed consistent.
- Our outlook on ARR growth for fiscal 2024 improves to greater than 5%.
- Acquisitions remain a top capital priority for Digi.
- We intend to focus more on scale and ARR.
Challenges Ahead
- We find our customers remain cautious on demand.
- For fiscal 2024, our Adjusted EBITDA is expected to be up approximately 1%, with revenue projection to be down approximately 5% year over year.
- The macroeconomic conditions have us uncertain as to when, and to what degree, sales cycles will return to more normal conditions.
- Ongoing and varying inflationary and deflationary pressures around the world and the monetary policies of governments globally as well as present and ongoing concerns about a potential recession
- Ongoing supply chain challenges that continue to impact businesses globally
Revenue & Expenses
Visualization of income flow from segment revenue to net income