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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.
Revenue by Segment
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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