Digi International(DGII) - 2024 Q4 - Annual Results

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]