Digi International ( (DGII) ) has released its Q4 earnings. Here is a breakdown of the information Digi International presented to its investors.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Digi International, a global leader in Internet of Things (IoT) connectivity products and services, provides solutions that support critical communications infrastructures with high security and reliability. The company recently released its financial results for the fourth fiscal quarter and full fiscal year 2024, revealing a mixed performance in a challenging economic environment.
For the fourth quarter, Digi International reported a 6% decrease in revenue to $105 million compared to the same period last year, while the gross profit margin improved by 400 basis points to 61.1%. Net income doubled to $12 million, translating to $0.32 per diluted share, with adjusted EBITDA rising by 5% to $26 million. The company’s annualized recurring revenue (ARR) reached a record $116 million, marking a 9% increase. Full-year figures showed a 5% decline in revenue to $424 million, with a net income of $23 million. Despite a slight decrease in net income compared to the previous year, adjusted EBITDA increased by 2% to $98 million.
Segment-wise, the IoT Products & Services sector saw a decline in revenue due to lower product sales, partially offset by service revenue growth, while the IoT Solutions segment experienced an increase driven by higher ARR and improved gross profit margins. Strategic efforts to manage inventory levels and debt repayments have strengthened Digi’s financial position, with significant reductions in inventory and interest expenses.
Looking ahead, Digi International remains optimistic about its long-term growth prospects, focusing on expanding its ARR and maintaining a customer-centric approach. Despite ongoing global macroeconomic challenges, especially in industrial markets, the company projects ARR growth of approximately 10% for fiscal 2025, with revenue and adjusted EBITDA expected to remain flat year-over-year.
