DGII Earnings Prediction
The chart below shows how DGII performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DGII sees a +1.11% change in stock price 10 days leading up to the earnings, and a +5.48% change 10 days following the report. On the earnings day itself, the stock moves by +1.22%. This data can give you a slight idea of what to expect for the next quarter's release.
DGII Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
106.09M
-2.94%
-5.42%
Gross Margin
57.59%
2.33%
0.95%
Operating Margin
11.48%
1.50%
-4.73%
Net Margin
-2.88%
-154.44%
-150.79%
EPS
-0.08
-150.00%
-147.06%
No Data Available
DGII Earnings Analysis
Digi International Inc Corporation (DGII.O) Earnings Conference Call
Positive
Record ARR Achievement: ARR reached a record $120 million, an 11% increase year-over-year and $4 million higher than the previous quarter.
Strategic Importance of ARR: ARR now represents 28% of quarterly revenues, highlighting its strategic importance to the company's growth.
Debt Reduction Milestone: Total outstanding debt fell below $100 million for the first time since Q4 2021, indicating improved financial health.
Cash Flow Generation: Generated $30 million in cash from operations during the quarter, reflecting strong operational efficiency.
Key Product Attach Rates: Achieved over 50% attach rates on key products, with expectations for continued growth in this area.
Negative
Revenue Decline Impact: $4,700,000 decline in one-time revenue negatively impacted overall reported revenue.
Flat Revenue Projection: Projected revenue for the second fiscal quarter is expected to be flat quarter over quarter, indicating stagnation in growth.
EBITDA Guidance Adjustment: EBITDA guidance for the second fiscal quarter is slightly down at the midpoint, suggesting potential margin compression.
Gross Margin Volatility: Significant sequential change in gross margins was noted, with expectations that favorable product mix will not be repeated in Q2, indicating potential margin volatility.
Sector Weakness Concerns: Weakness in industrial and automotive sectors continues to be a concern, as highlighted by key suppliers citing ongoing challenges.
DGII FAQs
How does DGII typically perform around its earnings report dates?
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DGII Earning Call Sentiment
Earnings call transcript: Digi International beats Q1 2024 EPS forecast, stock drops
DGII.O
-4.06%Positive
The earnings call presents a mixed sentiment. While ARR growth and cash flow generation are strong, revenue and EBITDA guidance are flat, and there are uncertainties due to tariffs and economic factors. The lack of a shareholder return plan also limits positive sentiment. Despite solid financial metrics, the flat guidance and potential risks suggest a neutral impact on stock price. The market may wait for more clarity on future growth and risk management.
