Digi International Inc (DGII) Q2 2024: Dgii

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Digi International Inc

DGII

$45.09 3.16%

Exchange: NASDAQ | Sector: Technology | Industry: Communication Equipment

Q2 2024

Published: May 3, 2024

Earnings Highlights

Revenue of $107.70M down 3.1% year-over-year
EPS of $0.11 decreased by 31.3% from previous year
Gross margin of 53.1%
Net income of 3.99M
"ARR remains our top priority of Digi, benefiting visibility and profitability." - Ronald Konezny

DGII

Company DGII

Period Q2 2024

Currency USD

Report Type Quarterly Earnings

Generated Dec 8, 2025

Executive Summary

Digi International reported Q2 2024 revenue of $107.7 million with a gross margin of 53.1% and operating income of $8.15 million, translating to an EBITDA of $16.25 million and net income of $3.99 million (EPS $0.11). The quarter featured a record level of annualized recurring revenue (ARR) and a materials-managed balance sheet, as Digi continued to tilt toward ARR-driven profitability. Management underscored ARR as the company’s top priority and highlighted meaningful progress in the IoT Solutions segment, driven by enterprise opportunities and longer-term contracts.

Key Performance Indicators

Revenue

Decreasing

107.70M

QoQ: 1.52% | YoY: -3.10%

Gross Profit

Decreasing

57.17M

53.09% margin

QoQ: -6.43% | YoY: -9.06%

Operating Income

Increasing

8.15M

QoQ: -32.82% | YoY: 112.60%

Net Income

Decreasing

3.99M

QoQ: 230.78% | YoY: -32.29%

EPS

Decreasing

0.11

QoQ: 230.18% | YoY: -31.25%

Revenue Trend

Margin Analysis

Financial Highlights

Overview of core metrics with YoY and QoQ context:
- Revenue: $107.70 million; YoY -3.1%; QoQ +1.5%
- Gross Profit: $57.17 million; Gross Margin 53.1%; YoY -9.1%; QoQ -6.4%
- Operating Income: $8.15 million; Margin ~7.57%; YoY +112.6%; QoQ -32.8%
- EBITDA: $16.25 million; EBITDA Margin ~15.1%
- Net Income: $3.99 million; Net Margin ~3.71%; YoY -32.3%; QoQ +230.8%
- EPS: $0.11; Diluted EPS $0.11; YoY -31.3%; QoQ +230.2%
- ARR (recurring revenue): Record level; highlighted by Digi’s strategy to expand ARR through Solutions and SmartSense wins
- Cash Flow: Operating cash flow $13.06 million; Free cash flow $12.54 million; Net change in cash: -$7.75 million; Cash at period end $23.80 million
- Balance Sheet: Total assets $825.3 million; Total liabilities $275.7 million; Stockholders’ equity $549.6 million; Net debt $163.7 million; Cash and cash equivalents $23.80 million

Income Statement

Metric	Value	YoY Change	QoQ Change
Revenue	107.70M	-3.10%	1.52%
Gross Profit	57.17M	-9.06%	-6.43%
Operating Income	8.15M	112.60%	-32.82%
Net Income	3.99M	-32.29%	230.78%
EPS	0.11	-31.25%	230.18%

Key Financial Ratios

Gross Profit Margin

Good

53.10%

Gross profit margin is healthy and competitive within industry standards

Operating Profit Margin

Fair

7.57%

Operating margin is moderate, room for improvement in cost management

Net Profit Margin

Fair

3.71%

Net profit margin is moderate, room for improvement in cost management

Return on Assets

Weak

0.48%

Return on assets suggests inefficient capital allocation

Return on Equity

Weak

0.73%

Return on equity suggests inefficient capital allocation

Current Ratio

Healthy

2.05

Current ratio shows adequate liquidity to meet short-term obligations

Debt to Equity

Moderate

0.34

Debt-to-equity indicates balanced capital structure with manageable debt

P/E Ratio

High Growth

71.22x

Very high P/E indicates aggressive growth expectations, higher risk

Price to Book

Fair Value

2.07x

Price-to-book ratio reasonable for profitable companies

Historical Earnings Comparison

Period	Revenue ($M)	EPS ($)	YoY Growth	Report
Q2 2025	104.50	0.28	-3.0%	View
Q1 2025	103.87	0.27	-2.1%	View
Q4 2024	105.05	-0.29	-6.3%	View
Q3 2024	105.20	0.26	-6.3%	View
Q2 2024	107.70	0.11	-3.1%	View

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Earnings Highlights

Executive Summary

Key Performance Indicators

Revenue Trend

Margin Analysis

Financial Highlights

Income Statement

Key Financial Ratios

Management Insights Available for Members

Peer Comparison Available for Members

Investment Outlook & SWOT Available for Members

Historical Earnings Comparison

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