Loading...
•
Sep 30, 2023
Digi Q4 2023 Earnings Report
Reported record annual revenue and an increase in ARR.
Key Takeaways
Digi International reported a 6% increase in revenue, reaching $112 million for the fourth fiscal quarter of 2023. The company's adjusted net income per diluted share increased by 16% to $0.52, and adjusted EBITDA rose by 14% to $25 million. Annualized Recurring Revenue (ARR) reached $106 million at the end of the quarter, marking a 12% increase.
Revenue increased by 6% to $112 million.
Gross profit margin increased by 130 basis points to 57.1%.
Adjusted net income per diluted share increased by 16% to $0.52.
ARR increased by 12% to $106 million.
Digi
Digi
Digi Revenue by Segment
Revenue by Segment
IoT Solutions Revenue
CapyFin.com Forward Guidance
Digi expects global macroeconomic headwinds to persist. For the first fiscal quarter, revenues are estimated to be $103 million to $108 million. Adjusted EBITDA is estimated to be between $21.0 million and $22.9 million. Adjusted net income per share is anticipated to be between $0.41 and $0.45 per diluted share, assuming a weighted average diluted share count of 37.5 million shares.
Positive Outlook
- Resilient execution in a large and growing Industrial Internet of Things market provides confidence we will double ARR and Adjusted EBITDA to $200 million within the next five years on an organic basis.
- Potential acquisitions are also focused on these metrics, which could help Digi reach these milestones even earlier.
- Demand for Digi offerings remains strong.
- Inventory position remains elevated, but we believe this investment will deliver working capital benefits for Digi in future quarters.
- Acquisitions remain a top capital priority for Digi.
Challenges Ahead
- We expect global macroeconomic headwinds to persist.
- Some strategic customers supported by our console server team will need more time than expected to deploy previously shipped solutions.
- The time to close deals has extended compared to historical measures.
- Our outlook for fiscal 2024 projects our ARR and Adjusted EBITDA to grow 5% and our revenue projects to be flat year over year.
- Inventory position remains elevated