NASDAQ$DGII

Digi Intl Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Digi reported a decrease in revenue but an increase in net income and ARR reached a record.

Digi International reported a decrease in revenue of 6% to $105 million, but net income increased to $10 million. The company's ARR reached a record $113 million, driven by strong performance in IoT solutions and services. The company expects revenue to be down approximately 5% year over year.

  • Revenue was $105 million, a decrease of 6%.
  • Net income was $10 million, compared to $7 million.
  • Annualized Recurring Revenue (ARR) was $113 million at quarter end, an increase of 9%.
  • Cash flow from operations was $25 million.

Headline financials

Total Revenue

$105M

Previous: $112M-6.3%
EPS

$0.26

Previous: $0.50-48.0%
Adjusted EBITDA

$24.7M

Previous: $24M+3.0%
Annualized Recurring Revenue

$113M

No prior period
Gross Profit Margin

59.2%

Previous: 56.9%+4.0%
Cash Flow From Operations

$25M

No prior period
Capital Expenditures

-$479K

No prior period
Free Cash Flow

$9.7M

Previous: $6.73M+44.2%
Net Income

$9.7M

Previous: $6.73M+44.2%
Operating Income

$12.9M

Previous: $12.5M+3.5%
Gross Profit

$62.3M

Previous: $63.8M-2.4%
Cash & Equivalents

$28.3M

Previous: $29.6M-4.2%
Total Assets

$820M

Previous: $840M-2.3%
R&D Expense

$15.1M

No prior period
Stock-Based Comp

$3.51M

Previous: $3.52M-0.1%

Revenue & EPS history

Digi · Revenue · Quarterly

$105M

Q3 2024-6.3%vs Q3 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Digi · $24M total across 1 segment · Q4 2023

  • IoT Solutions
    $24M-4.0%

Forward guidance

For the fourth fiscal quarter, revenues are estimated to be $102 million to $106 million. Adjusted EBITDA is estimated to be between $24.5 million and $26.0 million. Adjusted net income per share is anticipated to be between $0.48 and $0.52 per diluted share, assuming a weighted average diluted share count of 37.5 million shares.

Tailwinds

  • Digi remains steadfast in achieving our new long term strategic goals of doubling ARR and Adjusted EBITDA to $200 million within the next five years.
  • Digi’s resilient execution in a large and growing Industrial Internet of Things market has stayed consistent.
  • Our outlook on ARR growth for fiscal 2024 improves to greater than 5%.
  • Acquisitions remain a top capital priority for Digi.
  • We intend to focus more on scale and ARR.

Headwinds

  • We find our customers remain cautious on demand.
  • For fiscal 2024, our Adjusted EBITDA is expected to be up approximately 1%, with revenue projection to be down approximately 5% year over year.
  • The macroeconomic conditions have us uncertain as to when, and to what degree, sales cycles will return to more normal conditions.
  • Ongoing and varying inflationary and deflationary pressures around the world and the monetary policies of governments globally as well as present and ongoing concerns about a potential recession
  • Ongoing supply chain challenges that continue to impact businesses globally

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 Q3 2024

Historical avgQ3 2024

+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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