Revenue Performance - Revenue for Q4 2024 was $105 million, a decrease of 6% compared to Q4 2023[3] - Annual revenue for fiscal 2024 was $424 million, a decrease of 5% year-over-year[4] - Revenue for Q4 2024 was $105,052, a decrease of 6.5% from $112,163 in Q4 2023[31] - Full year revenue for 2024 totaled $424,046, down 4.7% from $444,849 in 2023[31] - First fiscal quarter 2025 revenue guidance is estimated to be between $102 million and $106 million[16] Profitability - Gross profit margin for Q4 2024 was 61.1%, an increase of 400 basis points from the previous year[3] - Gross profit for Q4 2024 was $64,230, slightly up from $63,991 in Q4 2023[31] - Net income for Q4 2024 was $12 million, compared to $6 million in Q4 2023[3] - Net income for Q4 2024 increased to $11,863, compared to $6,365 in Q4 2023, representing an 86.9% increase[31] - Operating income for the full year 2024 was $48,089, down from $50,095 in 2023[31] - Adjusted EBITDA for Q4 2024 was $26,254, representing 25.0% of total revenue[36] Cash Flow and Liquidity - Cash flow from operations for Q4 2024 was $26 million, compared to $9 million in Q4 2023[8] - Cash and cash equivalents at the end of Q4 2024 were $27,510, down from $31,693 at the end of Q4 2023[33] - Net cash provided by operating activities for the full year 2024 was $83,092, a significant increase from $36,751 in 2023[34] Inventory and Assets - Net inventory at the end of Q4 2024 was $53 million, down from $74 million at the end of Q4 2023[9] - Total assets decreased to $815,075 in Q4 2024 from $835,531 in Q4 2023[33] - Total liabilities decreased significantly from $295,043 in Q4 2023 to $234,040 in Q4 2024[33] Future Projections and Strategy - Annualized Recurring Revenue (ARR) at the end of Q4 2024 was $116 million, an increase of 9% year-over-year[3] - The company projects ARR growth of approximately 10% for fiscal 2025, with revenue and Adjusted EBITDA expected to be flat year-over-year[16] - The company aims to focus on acquisitions that enhance scale and ARR as part of its capital allocation strategy[14]

Financial Data and Key Metrics Changes - Digi International reported a record $113 million in annualized recurring revenue (ARR) as of the end of Q3 2024, representing a 9% year-over-year increase [5] - ARR now constitutes 27% of the company's quarterly revenues, contributing to record gross margins and adjusted EBITDA margins in the third fiscal quarter [5][6] - The company generated nearly $25 million in cash during the period and reduced its debt by $20 million, resulting in a quarterly interest payment of $3.5 million, which is 43% lower than the previous year [6] Business Line Data and Key Metrics Changes - SmartSense was highlighted as a key driver for ARR growth, adding new customers and expanding business in logistics, healthcare, and food service industries [5] - The company has seen improvements in software attach rates, indicating potential for further growth in ARR [14] Market Data and Key Metrics Changes - The company noted a stabilization in sales cycles, with some large deals closed after extensive testing and ROI validation [9] - There is optimism regarding growth from all product lines as the company looks into fiscal 2025, with new leadership in key segments [20] Company Strategy and Development Direction - Digi's acquisition strategy focuses on growing industrial IoT companies that demonstrate meaningful profitability and strong ARR potential [7] - The company plans to remain proactive in capitalizing on future opportunities, especially with potentially stimulative monetary policies on the horizon [7] Management's Comments on Operating Environment and Future Outlook - Management expressed that while sales cycles have stabilized, there are still opportunities in the pipeline that could materialize in future periods [9] - The macro environment is seen as stabilizing, with no further deceleration in sales cycles or order sizes anticipated [21] Other Important Information - The company has successfully reduced its inventory position by $5 million, contributing to cash flow generation [6] - Digi is actively pursuing acquisitions but remains disciplined in its approach, focusing on larger opportunities that can significantly impact the business [24] Q&A Session Summary Question: Insights on solutions ARR growth and its sustainability - Management acknowledged the significant sequential increase in solutions ARR and indicated that while sales cycles have stabilized, there are promising opportunities in the pipeline [9] Question: Current state of cash flow generation and capital allocation - Management confirmed ongoing improvements in inventory position and emphasized the importance of de-levering while remaining active in acquisition discussions [11] Question: Software attach rates and future incentives - Management reported incremental improvements in software attach rates and indicated plans for initiatives to further enhance these rates [14] Question: Performance of Opengear and Ventus segments - Management noted improvements in the strategic side of Opengear and expressed excitement about new design wins and customer acquisitions in the Ventus business [19] Question: Inventory perspective and macro environment - Management clarified that there has not been excess inventory in the channel and noted a stabilization in sales cycles, with potential for improvement depending on economic conditions [21] Question: Transition to Ventus model and ARR growth - Management emphasized the importance of leading with ARR and indicated that the combination of cellular and Ventus offerings would be central to their strategy moving forward [23] Question: Valuation environment for potential acquisitions - Management observed a mixed market for acquisitions, with some companies pausing for better conditions while others are looking to exit [24]

Digi International (DGII) came out with quarterly earnings of $0.50 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.50 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this provider of communication adapters would post earnings of $0.47 per share when it actually produced earnings of $0.49, delivering a surprise of 4.26%. Over the last four quarters, the company has surpassed consensus EPS estimates three time ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number: 001-34033 DIGI INTERNATIONAL INC. (Exact name of registrant as specified in its charter) Delaware 41-1532464 | --- | --- | --- | |-------- ...

Exhibit 99.1 Third Fiscal Quarter 2024 Results Compared to Third Fiscal Quarter 2023 Results Additional Financial Highlights Digi International Reports Third Fiscal Quarter 2024 Results Revenue of $105M, Record End of Quarter ARR of $113M Cash Flow From Operations of $25M ® (Minneapolis, MN, August 7, 2024) - Digi International Inc. (Nasdaq: DGII), a leading global provider of business and mission critical Internet of Things ("IoT") products, services and solutions, today announced its financial results for ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number: 001-34033 DIGI INTERNATIONAL INC. (Exact name of registrant as specified in its charter) Delaware 41-1532464 (State or other jurisdiction ...

Digi International Inc. (NASDAQ:DGII) Q2 2024 Earnings Conference Call May 2, 2024 10:00 AM ET Company Participants Jamie Loch - Executive Vice President, Chief Financial Officer & Treasurer Ron Konezny - President & Chief Executive Officer Conference Call Participants Mike Walkley - Canaccord Genuity Cole Couzens - Stephens Incorporated Josh Nichols - B. Riley Scott Searle - ROTH MKM Harsh Kumar - Piper Sandler Mike Walkley - Canaccord Genuity Operator Good day and thank you for standing by and welcome to ...

Digi International (DGII) came out with quarterly earnings of $0.49 per share, beating the Zacks Consensus Estimate of $0.47 per share. This compares to earnings of $0.50 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 4.26%. A quarter ago, it was expected that this provider of communication adapters would post earnings of $0.45 per share when it actually produced earnings of $0.48, delivering a surprise of 6.67%.Over the last ...

Exhibit 99.1 Digi International Reports Second Fiscal Quarter 2024 Results Revenue of $108M, Record End of Quarter ARR of $110M Cash Flow From Operations was $13 Million (Minneapolis, MN, May 1, 2024) - Digi International Inc. (Nasdaq: DGII), a leading global provider of business and mission critical Internet of Things ("IoT") products, services and solutions, today announced its financial results for its second fiscal quarter ended March 31, 2024. ® Second Fiscal Quarter 2024 Results Compared to Second Fis ...

metamorworks Thesis Over the past decade, Digi International Inc.’s (NASDAQ:DGII) earnings have had some ups and downs. But, beginning in 2020, it has more consistently increased its earnings: Data by YCharts Will its earnings stay on that path? It seems likely, but at a slower rate this year and next year. Beyond that, the share price is expected to continue its robust climb. Tailwinds include the rapidly growing and very large Internet of Things market (especially the Industrial Internet of Things), s ...