Record Quarterly Revenue of $112M, End of Quarter ARR of $104M
EPS of $0.18, Adjusted EPS of $0.50
(Minneapolis, MN, August 3, 2023) - 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 third fiscal quarter ended June 30, 2023.
Third Fiscal Quarter 2023 Results Compared to Third Fiscal Quarter 2022 Results
- Revenue was $112 million, an increase of 8%.
- Gross profit margin was 56.9%, an increase of 140 basis points. Gross profit margin excluding amortization was 57.7%, an increase of 100 basis points.
- Net income per diluted share was $0.18, up from $0.12, an increase of 50%.
- Adjusted EPS was $0.50 per diluted share, an increase of 11%.
- Adjusted EBITDA was $24 million, an increase of 16%.
- Annualized Recurring Revenue (ARR) was $104 million at quarter end, an increase of 13%.
本新闻稿末尾载有 GAAP 和非 GAAP 财务指标的调节表。
“Digi posted our tenth consecutive quarter of record revenue,” said Ron Konezny, President and Chief Executive Officer. “Driven by strong Annualized Recurring Revenue (ARR) growth, we achieved the second of our “100” objectives. ARR exceeded $100 million at the end of the quarter. In addition, we reduced the principal of our outstanding debt by $20 million. Our team's solution mindset is driving customer and partner value.”
分部业绩
IoT 产品与服务
The segment's third fiscal quarter 2023 revenues of $87 million increased 10% from the same period in the prior fiscal year. This increase is attributable to growth in our OEM & Infrastructure Management product lines. ARR as of the end of the third fiscal quarter was $22 million, an increase of 47%. Gross profit margin increased 60 basis points to 54.1% of revenues for the third fiscal quarter of 2023, due to ARR.
IoT 解决方案
The segment's third fiscal quarter 2023 revenues of $25 million increased 5% from the same period in the prior fiscal year. This increase was a result of increased sales of both SmartSense and Ventus offerings. ARR as of the end of the third fiscal quarter was over $82 million, an increase of 6%. Gross profit margin increased 450 basis points to 66.7%, due to higher ARR in the third fiscal quarter of 2023.
Fourth Fiscal Quarter 2023 Guidance
The debate around an imminent recession and the potential severity if one arrives is ongoing. Digi’s broad array of end markets has helped the company weather challenging market conditions in the past. We believe the IIoT market is still in its early stage of adoption with a significant set of greenfield opportunities. Most of the world’s machines are not connected today. Over time, we expect more end markets to deploy IIoT.
For the fourth fiscal quarter of 2023, we expect revenue of $108 million to $112 million, or growth of 2% to 6% year-over-year. Adjusted EBITDA is expected to be between $23.0 million and $24.0 million. Adjusted EPS is expected to be $0.46 to $0.49 per diluted share, assuming a weighted average share count of 37.3 million shares.
Based on our fiscal fourth quarter guidance combined with year-to-date results, Digi now expects to grow annual revenues at least 14%, which is higher than the growth rate we communicated last quarter. Previously we communicated we expected ARR and A-EBITDA growth to outpace total revenue growth in fiscal 2023. We continue to expect A-EBITDA to grow faster than total revenue growth. We still expect ARR to grow consistent with our prior expectations, however, it may not outpace total revenue growth.
We provide earnings guidance on a non-GAAP basis as it is difficult to predict with reasonable certainty various items including but not limited to the impact of foreign exchange translation, interest and certain tax related events. Given the uncertainty, any of these or other items could have a significant impact on U.S. GAAP results.
Third Fiscal Quarter 2023 Conference Call Details
As announced on July 11, 2023, Digi will discuss its third fiscal quarter results on a conference call on Thursday, August 3, 2023 at 10:00 a.m. ET (9:00 a.m. CT). The call will be hosted by Ron Konezny, President and Chief Executive Officer and Jamie Loch, Chief Financial Officer.
Participants may register for the conference call at: https://register.vevent.com/register/BI9b85c1468df24fcb826c07a7541ba76e. Once registration is completed, participants will be provided a dial-in number and passcode to access the call. All participants are asked to dial-in 15 minutes prior to the start time.
Participants may access a live webcast of the conference call through the investor relations section of Digi’s website, https://digi.gcs-web.com/ or the hosting website at: https://edge.media-server.com/mmc/p/bt95nnhk.
重播将在电话会议结束后约两小时内提供，为期约一年。您可以通过 Digi 网站的 "投资者关系 "版块访问网络广播重播。
您可以通过 Digi 网站 www.digi.com 的 "投资者关系 "部分的 "财务新闻稿 "页面查阅本财报以及与第二财季业绩相关的股东信。
有关我们的更多新闻和信息，请访问 www.digi.com/aboutus/investorrelations。
关于 Digi International
Digi International（纳斯达克股票代码：DGII）是全球领先的IoT 连接产品、服务和解决方案提供商。 我们帮助客户创造下一代连接产品，在高要求环境中部署和管理关键通信基础设施，并提供高水平的安全性和可靠性。 公司成立于 1985 年，目前已帮助客户连接了 1 亿多个设备，并且还在不断增长。 欲了解更多信息，请访问 Digi 网站 www.digi.com。
前瞻性陈述
This press release contains forward-looking statements that are based on management’s current expectations and assumptions. These statements often can be identified by the use of forward-looking terminology such as "assume," "believe," "anticipate," "intend," "estimate," "target," "may," "will," "expect," "plan," "potential," "project," "should," or "continue," or the negative thereof or other variations thereon or similar terminology. Among other items, these statements relate to expectations of the business environment in which Digi operates, projections of future performance, perceived marketplace opportunities and statements regarding our mission and vision. Such statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions. Among others, these include risks related to the ongoing supply chain and transportation challenges impacting businesses globally, risks related to ongoing inflationary pressures around the world and the monetary policies of governments globally as well as present concerns about a potential recession and the ability of companies like us to operate a global business in such conditions as well as negative effects on product demand and the financial solvency of customers and suppliers in such conditions, risks arising from the present war in Ukraine, the highly competitive market in which our company operates, rapid changes in technologies that may displace products sold by us, declining prices of networking products, our reliance on distributors and other third parties to sell our products, the potential for significant purchase orders to be canceled or changed, delays in product development efforts, uncertainty in user acceptance of our products, the ability to integrate our products and services with those of other parties in a commercially accepted manner, potential liabilities that can arise if any of our products have design or manufacturing defects, our ability to integrate and realize the expected benefits of acquisitions, our ability to defend or settle satisfactorily any litigation, the impact of natural disasters and other events beyond our control that could negatively impact our supply chain and customers, potential unintended consequences associated with restructuring, reorganizations or other similar business initiatives that may impact our ability to retain important employees or otherwise impact our operations in unintended and adverse ways, and changes in our level of revenue or profitability which can fluctuate for many reasons beyond our control. These and other risks, uncertainties and assumptions identified from time to time in our filings with the United States Securities and Exchange Commission, including without limitation, our Annual Report on Form 10-K for the year ended September 30, 2022 and subsequent reports on Form 10-Q, could cause our actual results to differ materially from those expressed in any forward-looking statements made by us or on our behalf. Many of such factors are beyond our ability to control or predict. These forward-looking statements speak only as of the date for which they are made. We disclaim any intent or obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
非美国通用会计准则财务指标的列报
本新闻稿包括调整后净收入、调整后摊薄后每股净收入和调整后息税折旧摊销前利润（EBITDA），其中每项均为非美国通用会计准则（Non-GAAP）指标。
我们知道，非美国通用会计准则的使用存在重大限制。 在分析财务业绩时，非美国通用会计准则（Non-GAAP）指标不能替代净收入等美国通用会计准则（GAAP）指标。 这些指标的披露并不反映 Digi 实际确认的所有费用和收益。 这些非美国通用会计准则（Non-GAAP）衡量标准不符合公认会计原则，也不能替代按照公认会计原则编制的衡量标准，而且可能不同于其他公司使用的非美国通用会计准则（Non-GAAP）衡量标准，也不同于我们在以前的报告中介绍的非美国通用会计准则（Non-GAAP）衡量标准。 此外，这些非美国通用会计准则衡量标准并非基于任何一套全面的会计规则或原则。 我们认为，非美国通用会计准则衡量标准有其局限性，因为它们不能反映按照美国通用会计准则确定的与我们的运营结果相关的所有金额。 我们认为，这些指标只能与相应的公认会计准则指标一起用于评估我们的运营结果。 此外，调整后 EBITDA 并不反映我们的现金支出、更换折旧资产和摊销资产的现金需求，也不反映我们营运资金需求的变化或现金需求。
我们认为，分别提供历史净利润和调整后净利润以及调整后摊薄后每股净利润，不包括税收准备金转回、离散税收优惠、重组费用及转回、无形资产摊销、股票薪酬、其他营业外收入/支出、或有对价公允价值变动、与收购相关的费用以及与收购相关的利息支出等项目，可以让投资者将业绩与不包括这些项目的前期进行比较。 管理层使用上述非美国通用会计准则衡量标准来监控和评估持续经营业绩和趋势，并了解我们的比较经营业绩。 此外，我们的某些股东表示希望看到不包含这些事项影响的财务业绩指标，这些事项虽然重要，但对我们的核心业务运营并不重要。 管理层认为，调整后息税折旧摊销前利润（定义为息税折旧摊销前利润，根据股票薪酬费用、收购相关费用、重组费用和转回以及或有对价公允价值变动进行调整）有助于投资者评估我们的核心经营业绩和财务表现，因为它排除了简明合并运营报表中反映的重大非现金或非经常性项目。 我们认为，将调整后 EBITDA 按收入百分比列报非常有用，因为它提供了一种可靠、一致的方法来衡量我们每年的业绩，并将我们的业绩与其他公司的业绩进行对比评估。 我们相信这一信息有助于比较经营业绩和公司业绩，其中不包括我们的资本结构和资产收购方法的影响。
投资者联系方式：
罗布-贝内特
投资者关系
迪吉国际
952-912-3524
电子邮件:rob.bennett@digi.com
