Digi International Inc (DGII) q2 2024 Earnings Report

Next: Q3 2024

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

DGII

Digi International Inc

Q2 2025 Report

Digi International Inc (DGII) Q2 2025 Results Analysis: ARR Growth, Recurring Revenue Acceleration, and Balance Sheet Strength in Industrial IoT...

Read full report

DGII

Digi International Inc

Q1 2025 Report

Digi International Inc (DGII) QQ1 2025 Results: ARR Reaches $120M; Recurring Revenue Strategy Drives Margin Stability and Balance Sheet Strength...

Read full report

DGII

Digi International Inc

Q4 2024 Report

Digi International Inc (DGII) QQ4 2024 Results – ARR-Led Growth, Margin Expansion, and Path to Net Debt Freedom...

Read full report

DGII

Digi International Inc

Q3 2024 Report

Digi International Inc (DGII) QQ3 2024 Earnings Review: Industrial IoT ARR Momentum, Margin Expansion, and Strategic Balance Sheet Strength...

Read full report

Digi International Inc (DGII) Q2 2024 Earnings Report

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

More DGII Quarterly Reports

DGII

DGII

DGII

DGII

Q2 2024 Reports in Technology Sector

Related Financial Data

Sector Analysis: Technology

DGII Full Profile

DGII Financial Statements

Earnings Calendar