Digi International announced its financial results for the first fiscal quarter ended December 31, 2024, reporting total revenue of $103.9 million, a 2.1% decrease compared to $106.1 million in the prior-year quarter. The company's adjusted net income per diluted share was $0.50, meeting consensus estimates.
The company achieved a record end-of-quarter Annualized Recurring Revenue (ARR) of $120 million, representing a 10% increase year-over-year. Cash flow from operations for the quarter was $30 million, contributing to a strengthened balance sheet through debt reduction.
The IoT Product & Services segment saw revenue of $77.8 million, a decrease of $4.2 million, while its ARR grew 17% to $27 million. The IoT Solutions segment reported revenue of $26.0 million, an increase of $2.0 million, with its ARR growing 9% to $93 million.
Digi International reiterated its outlook for fiscal year 2025, projecting ARR to grow approximately 10%, with total revenue and Adjusted EBITDA expected to remain flat year-over-year. For the second fiscal quarter, revenues are estimated to be between $102 million and $106 million, with adjusted net income per share anticipated between $0.46 and $0.50.
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