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Sep 30, 2022
Digi Q4 2022 Earnings Report
Digi reported record annual revenue and ARR growth, driven by both IoT Product & Services and IoT Solutions segments.
Key Takeaways
Digi International reported a strong fourth quarter and full fiscal year 2022, with record annual revenue of $388 million and end-of-quarter ARR of over $94 million. The company's Q4 revenue was $106 million, a 34% increase year-over-year, with adjusted EPS of $0.45, an 80% increase year-over-year.
Revenue increased by 34% to $106 million.
Net income per diluted share increased by 138% to $0.31.
Adjusted EPS increased by 80% to $0.45 per diluted share.
Annualized Recurring Revenue (ARR) increased by 149% to over $94 million.
Digi
Digi
Digi Revenue by Segment
Revenue by Segment
IoT Solutions Revenue
CapyFin.com Forward Guidance
For the first quarter of fiscal 2023, revenues are estimated to be $101 million to $105 million, representing 20% to 25% growth year over year. Adjusted EBITDA is estimated to be $20.2 million to $21.7 million. Adjusted EPS is anticipated to be $0.41 to $0.44 per diluted share, assuming a weighted average diluted share count of 36.7 million shares.
Positive Outlook
- Revenue growth of 20% to 25% year over year.
- Adjusted EBITDA between $20.2 million and $21.7 million.
- Adjusted EPS between $0.41 and $0.44 per diluted share.
- Projected revenue growth reflects continued supply chain constraints.
- ARR and Adjusted EBITDA are expected to grow faster than revenue.
Challenges Ahead
- Guidance considers supply chain and challenging macro conditions.
- Revenue growth constrained by tight supply chain challenges.
- Uncertainty in predicting the impact of foreign exchange translation.
- Restructuring, interest, and certain tax-related events difficult to predict.
- Projected revenue growth of 10% reflects continued supply chain constraints.