NASDAQ$DGII

Digi Intl Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported record quarterly revenue and increased ARR.

Digi International reported a strong start to fiscal year 2023, with record quarterly revenue of $109 million, driven by robust demand and a gradually easing supply chain. The company's adjusted EPS was $0.48, and ARR reached $96 million at the end of the quarter.

  • Revenue increased by 30% to $109 million.
  • Net income per diluted share increased by 433% to $0.16.
  • Adjusted EPS increased by 33% to $0.48 per diluted share.
  • ARR increased by 8% to $96 million.

Headline financials

Total Revenue

$109M

Previous: $84.3M+29.7%
EPS (adj)

$0.48

Previous: $0.36+33.3%
Adjusted EBITDA

$23M

No prior period
Annualized Recurring Revenue

$96M

Previous: $88M+9.1%
Gross Profit Margin

56.3%

No prior period
Free Cash Flow

$5.78M

Previous: $1.19M+386.9%
Net Income

$5.78M

Previous: $1.19M+386.9%
Operating Income

$12M

Previous: $3.8M+214.9%
Gross Profit

$61.5M

Previous: $47.9M+28.5%
Cash & Equivalents

$30.9M

Previous: $47.2M-34.4%
Total Assets

$855M

Previous: $866M-1.3%
Stock-Based Comp

$2.87M

Previous: $2.02M+42.2%

Revenue & EPS history

Digi · Revenue · Quarterly

$109M

Q1 2023+29.7%vs Q1 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Digi · $25M total across 1 segment · Q1 2023

  • IoT Solutions
    $25M+35.1%

Forward guidance

The company provides guidance for the second quarter of fiscal year 2023, expecting revenues of $105 million to $109 million and Adjusted EBITDA between $21.0 million and $22.5 million. Adjusted EPS is projected to be $0.42 to $0.46 per diluted share, with a diluted share count of 37.0 million shares outstanding. Revenue growth for FY23 is now expected to be in excess of 10%. ARR and A-EBITDA are expected to grow faster than revenue growth.

Tailwinds

  • Revenue between $105 million and $109 million
  • Adjusted EBITDA between $21.0 million and $22.5 million
  • Adjusted EPS to be $0.42 to $0.46 per diluted share
  • Revenue growth in excess of 10%
  • ARR and A-EBITDA to grow faster than revenue growth

Headwinds

  • Supply chain challenges
  • Macroeconomic conditions
  • Impact of foreign exchange translation
  • Restructuring
  • Interest and certain tax related events

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+1.6%

Avg return

Earnings day

+3.1%

Avg return

5 days after

+4.0%

Avg return

30 days after

55%

36 / 65 earnings

Positive

+18.2%

Q1 2019

Best reaction

-23.3%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+5.4%+4.5%+12.0%
Q1 2026-3.9%-1.1%+4.9%
Q4 2025+6.8%+7.1%+26.5%
Q2 2025+14.0%+21.4%+21.8%
Q1 2025+17.3%+15.5%-4.9%
Q4 2024-2.9%-5.0%+1.7%
Q3 2024+17.9%+16.9%+16.0%
Q2 2024-16.8%-11.9%-20.5%
Q1 2024+10.0%+13.3%+18.6%
Q4 2023-7.1%-1.0%+1.2%
Q3 2023-23.3%-22.4%-20.6%
Q2 2023+8.8%+9.0%+26.3%
Q1 2023+0.8%+2.7%-2.5%
Q4 2022+9.5%+13.6%+8.2%
Q3 2022+13.4%+9.1%+7.8%
Q2 2022+4.2%+3.1%+34.1%
Q1 2022-6.7%-9.5%-9.8%
Q4 2021+10.2%+6.6%+7.7%
Q3 2021-2.3%-0.1%+5.7%
Q2 2021-2.0%-2.0%+5.5%
Q1 2021+17.3%+28.3%-9.3%
Q4 2020-5.4%-0.7%+6.4%
Q3 2020+12.3%+8.6%+6.7%
Q2 2020+14.5%+5.9%+10.7%
Q1 2020-3.7%-15.2%-19.3%
Q4 2019+17.5%+23.2%+15.1%
Q3 2019+4.8%+10.2%+4.4%
Q2 2019-1.3%-3.4%-15.7%
Q1 2019+18.2%+17.7%+14.0%
Q4 2018+13.5%+6.1%+0.4%
Q3 2018+0.7%+0.4%-1.9%
Q2 2018-1.3%+1.3%+4.8%
Q1 2018+1.0%+0.5%+2.4%
Q4 2017+1.4%+0.5%+0.5%
Q3 2017-1.0%+2.5%-7.2%
Q2 2017-13.0%-18.9%-19.5%
Q1 2017-1.1%-4.0%-5.1%
Q4 2016-10.6%-10.1%+24.9%
Q3 2016-1.7%-3.0%+3.7%
Q2 2016+13.5%
Q1 2016-15.6%
Q4 2015+8.7%
Q3 2015+3.0%
Q2 2015+6.4%
Q1 2015+8.3%
Q4 2014+4.2%
Q3 2014-6.2%
Q2 2014-11.3%
Q1 2014-16.7%
Q4 2013+1.6%
Q3 2013+4.3%
Q2 2013-0.2%
Q1 2013-0.9%
Q4 2012-1.7%
Q3 2012+1.8%
Q2 2012-16.0%
Q1 2011+3.6%
Q1 2012-3.8%
Q2 2011+4.4%
Q4 2009+4.4%
Q4 2011+4.4%
Q4 2010-2.2%
Q3 2011-2.2%
Q3 2010-2.2%
Q2 2010+1.3%

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