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Sep 30, 2024
Digi Q4 2024 Earnings Report
Reported a decrease in revenue but an increase in net income and gross profit margin compared to the same quarter last year. Record ARR was achieved, representing approximately 27% of revenues.
Key Takeaways
Digi International reported Q4 2024 results with a revenue of $105 million, a 6% decrease year-over-year. Net income increased to $12 million from $6 million, and the gross profit margin rose by 400 basis points to 61.1%. The company achieved a record ARR of $116 million.
Revenue decreased by 6% to $105 million.
Gross profit margin increased by 400 basis points to 61.1%.
Net income increased to $12 million, compared to $6 million.
ARR increased by 9% to $116 million.
Digi
Digi
Digi Revenue by Segment
Revenue by Segment
IoT Solutions Revenue
CapyFin.com Forward Guidance
For the first fiscal quarter of 2025, revenues are estimated to be $102 million to $106 million. Adjusted EBITDA is estimated to be between $24.0 million and $25.5 million. Adjusted net income per share is anticipated to be between $0.46 and $0.50 per diluted share, assuming a weighted averaged diluted share count of 37.7 million shares.
Positive Outlook
- ARR is expected to grow approximately 10% in fiscal year 2025.
- Focus on growing ARR and Adjusted EBITDA to $200 million within the next four years on an organic basis.
- Potential acquisitions are focused on ARR and Adjusted EBITDA metrics.
- Longer-term demand for Digi offerings remains strong.
- Resilient execution in a large and growing Industrial Internet of Things market.
Challenges Ahead
- Global macroeconomic headwinds, particularly in industrial markets, continue to persist.
- PMI has contracted for 23 out of the past 24 months.
- Time to close deals has stabilized, but it is extended compared to historical measures.
- Revenue and Adjusted EBITDA are projected to be flat year over year for fiscal year 2025.
- Uncertainty in predicting items that impact U.S. GAAP results.