Digi International Inc (DGII) 2023 Q3 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Q3 2023 Digi International Inc. Earnings Conference Call. (Operator Instructions). Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jamie Loch.

美好的一天，感謝您的支持。歡迎參加 Digi International Inc. 2023 年第三季財報電話會議。 （操作員說明）。請注意，今天的會議正在錄製中。現在我想將會議交給今天的發言人傑米洛克 (Jamie Loch)。

Thank you. Good day, everyone. It's great to talk to you again, and thanks for joining us today to discuss the earnings results of Digi International. Joining me on today's call is Ron Konezny, our President and CEO. We issued our earnings release before the market opened this morning, and we posted a shareholder letter this morning as well.

謝謝。今天是個好日子。很高興再次與您交談，感謝您今天加入我們討論 Digi International 的盈利結果。與我一起參加今天電話會議的是我們的總裁兼執行長 Ron Konezny。我們在今天早上開盤前發布了收益報告，今天早上我們也發布了一封股東信。

You may obtain a copy of the press release and shareholder letter through the Financial Releases section of our Investor Relations website at digi.com. This morning, Ron will provide a comment on our performance, and then we'll take your questions. Some of the statements that we make during this call are considered forward-looking and are subject to significant risks and uncertainties.

您可以透過我們投資者關係網站 digi.com 的財務發布部分獲取新聞稿和股東信函的副本。今天早上，羅恩將對我們的表現發表評論，然後我們將回答您的問題。我們在本次電話會議中所做的一些聲明被認為是前瞻性的，並受到重大風險和不確定性的影響。

These statements reflect our expectations about future operating and financial performance and speak only as of today's date. We undertake no obligation to update publicly or revise these forward-looking statements. While we believe the expectations reflected in our forward-looking statements are reasonable, we give no assurance such expectations will be met or that any of our forward-looking statements will prove to be correct.

這些陳述反映了我們對未來營運和財務表現的預期，並且僅代表截至今天的情況。我們不承擔公開更新或修改這些前瞻性陳述的義務。雖然我們相信我們的前瞻性聲明中反映的期望是合理的，但我們不保證這些期望會得到滿足，也不保證我們的任何前瞻性陳述將被證明是正確的。

For additional information, please refer to the forward-looking statements section in our earnings release today and the Risk Factors section of our most recent Form 10-K and subsequent reports on file with the SEC. Finally, certain financial information disclosed on this call includes non-GAAP measures.

如需了解更多信息，請參閱我們今天發布的收益報告中的前瞻性陳述部分以及我們向 SEC 提交的最新 10-K 表格和後續報告中的風險因素部分。最後，本次電話會議所揭露的某些財務資訊包括非公認會計原則措施。

The information required to be disclosed about these measures, including reconciliations to the most comparable GAAP measures are included in the earnings release. The earnings release is also furnished as an exhibit to Form 8-K that can be accessed through the SEC filings section of our Investor Relations website. Now I'll turn the call over to Ron.

需要披露的有關這些措施的信息，包括與最具可比性的公認會計準則措施的調節，都包含在收益發布中。收益報告也作為 8-K 表格的附件提供，您可以透過我們投資者關係網站的 SEC 備案部分存取該表格。現在我將把電話轉給羅恩。

Thank you, Jamie. Good morning, everyone. Before we jump into Q&A, a few comments. We are excited to deliver our 10th consecutive record revenue quarter, which is especially pleasing in this constantly evolving macro environment. We're thrilled to announce we achieved the second of our 3 $100 million goal in annualized recurring revenue.

謝謝你，傑米。大家，早安。在我們開始問答之前，先發表一些評論。我們很高興能夠連續第十個季度實現營收創紀錄，這在這個不斷變化的宏觀環境中尤其令人高興。我們很高興地宣布，我們實現了年化經常性收入 3 億美元目標中的第二個目標。

We continue to sustain $100 million in quarterly revenue, and we are gaining more confidence in capturing our final goal of $100 million in annualized adjusted EBITDA. Digi provides connectivity and management of the world's assets, and most assets are not connected today.

我們繼續維持 1 億美元的季度收入，並且對實現年化調整 EBITDA 1 億美元的最終目標越來越有信心。 Digi 提供全球資產的連接和管理，而如今大多數資產尚未連接。

Digi is well positioned to capture this opportunity with our secure, reliable, scalable and easy to manage solutions. At this time, I'd like to turn the call back to the operator for our questions-and-answer session. Thank you, operator.

Digi 已做好充分準備，透過我們安全、可靠、可擴展且易於管理的解決方案來抓住這一機會。此時，我想將電話轉回給接線生進行問答。謝謝你，接線生。

(Operator Instructions). Our first question comes from the line of Tommy Moll, Stephens Inc.

（操作員說明）。我們的第一個問題來自湯米·莫爾 (Tommy Moll)，史蒂芬斯公司 (Stephens Inc.)。

Ron, I've got 2 on ARR. So we'll start on the P&S side, where there was a big step up, and I know that driving that penetration rate higher has been a priority for some time. So what can you tell us is behind the trend we've seen, how much more is to come?

Ron，我在 ARR 上有 2 個。因此，我們將從 P&S 方面開始，這方面有了很大的進步，我知道提高滲透率一直是一段時間以來的首要任務。那麼您能告訴我們我們所看到的趨勢背後的原因是什麼嗎？未來還會有多少？

Yes, Tom, a really good question. We were obviously very excited to see the improvement both year-over-year and quarter-over-quarter. There's really 2 things going on: one is really pleasing in that we have seen year-over-year growth in really all of our product lines.

是的，湯姆，這是一個非常好的問題。我們顯然非常高興看到同比和環比的改善。實際上有兩件事正在發生：一件事非常令人高興，因為我們看到我們所有的產品線都在逐年增長。

And it's certainly the result of a lot of work that preceded this in making sure that our employees, our partners and, of course, most importantly, our customers understand the value of a complete solution. And so we're seeing increased take rates there and also nice renewals. We were benefited as well with one larger Enterprise deal that came to close there that helped really catapult that number. We do have other Enterprise deals we work on. Those are harder to predict, but it was nice to secure that one last quarter.

這當然是在此之前所做的大量工作的結果，以確保我們的員工、我們的合作夥伴，當然，最重要的是我們的客戶了解完整解決方案的價值。因此，我們看到那裡的使用率有所提高，而且續訂也不錯。我們還受益於一項規模更大的 Enterprise 交易，該交易在那裡完成，這確實幫助推動了這一數字。我們確實還有其他企業交易正在進行中。這些都很難預測，但很高興能在上個季度實現這一目標。

And then, Ron, on the solutions side, you called out, I believe, in the shareholder letter, some of those Enterprise deals have taken longer to close than you originally would have expected. What can you tell us about the trends on that side of the ARR story?

然後，羅恩，在解決方案方面，您在股東信中指出，我相信，其中一些企業交易的完成時間比您最初預期的要長。能告訴我們關於 ARR 故事這方面的趨勢嗎？

Yes, equally good question. We -- the good news is the pipeline is increasing, and we aren't losing deals. We are, to the point in the share letter. It's taking longer. Customers are being more inspecting and really making sure that the testing process goes well before they roll out. So we're excited that the pipeline is still there, and we've got to work hard to convert that, of course, into ARR.

是的，同樣好問題。好消息是管道正在增加，而且我們沒有失去交易。就分享信中的要點而言，我們是這樣的。需要更長的時間。客戶正在更多地進行檢查，並真正確保測試過程在推出之前順利進行。因此，我們很高興管道仍然存在，當然，我們必須努力將其轉換為 ARR。

Our next question comes from the line of Mike Walkley of Canaccord Genuity.

我們的下一個問題來自 Canaccord Genuity 的 Mike Walkley。

And congrats on the 10th consecutive quarter. Ron or Jamie, just for the September quarter guidance of flat to slightly down sequentially at the midpoint, how much of an impact is that due to the September quarter still be in face with hard-to-get components? And when do you think supply demand might come into balance? You said during fiscal '24. Is it still multi-quarters or does that start to come into balance as we get to early fiscal '24?

並恭喜連續第十個季度。 Ron 或 Jamie，僅就 9 月季度的指引而言，中點持平或略有下降，由於 9 月季度仍面臨難以獲得的零件，影響有多大？您認為供需何時會達到平衡？你說的是24財年期間。它仍然是多個季度的還是在我們進入 24 財年初期時開始達到平衡？

Yes, Mike, really good question. As you know, we've been battling supply chain challenges. We have a variety of products with thousands of parts that are needed to put these together into finished goods. Some of those parts are a little bit older in terms of their birth dates and harder to secure. So we're still facing some supply chain headwinds. Those are improving gradually.

是的，麥克，真是個好問題。如您所知，我們一直在應對供應鏈挑戰。我們有各種各樣的產品，有數千個零件，需要將這些零件組裝成成品。其中一些部件的誕生日期有點老，而且更難保護。因此，我們仍然面臨一些供應鏈阻力。這些正在逐步改善。

We don't have an exact quarter we can call out, but we're seeing the trends where we expect fiscal '24 to see some degree of normalization, but we're still facing near-term headwinds. And I think as you've seen in the last couple of quarters, we like to give guidance with the confidence that we can secure the parts we need.

我們沒有可以公佈的確切季度數據，但我們看到的趨勢是，我們預計 24 財年將出現一定程度的正常化，但我們仍面臨短期阻力。我認為正如您在過去幾個季度所看到的那樣，我們希望提供指導，並相信我們能夠獲得所需的零件。

And we've been fortunate enough to get some hard work that paid off that has enabled us to go beyond the guidance in the most recent quarters. But we're sticking with that philosophy in the September quarter guidance that those we know we can secure, we're embedding that into our outlook, and there certainly is some opportunity to chase some additional parts as well.

我們很幸運，付出了一些努力並得到了回報，這使我們能夠超越最近幾季的指導。但我們在九月季度的指導中堅持這一理念，即我們知道我們可以確保的那些，我們將其嵌入到我們的前景中，當然也有一些機會追逐一些額外的部分。

That's helpful. And just a follow-up question for Jamie. Just how should we think about seasonality into the December quarter, you might have better supply, but that tends to be an area where your distribution partners tend to clean up -- get their inventory a little bit lower. And then also for Jamie, just as supply and demand come more in balance, where should we think about the right levels of inventory longer term and how that might free up some working capital as you continue to pay down your debt?

這很有幫助。這是傑米的後續問題。只是我們應該如何考慮 12 月季度的季節性，您可能有更好的供應，但這往往是您的分銷合作夥伴傾向於清理的區域 - 讓他們的庫存稍微低一點。對於傑米來說，隨著供需更加平衡，我們應該在哪裡考慮長期庫存的正確水平，以及在您繼續償還債務時如何釋放一些營運資金？

Yes. Thanks, Mike. I think on the inventory side, I do think that as the supply chain normalizes, the 2 elements of the inventory balances components will definitely start easing their way down as those components are converted into finished goods.

是的。謝謝，麥克。我認為在庫存方面，我確實認為隨著供應鏈的正常化，庫存平衡組成部分的兩個要素肯定會隨著這些組成部分轉換為成品而開始緩解。

Finished goods, that inventory balance is up -- it's up a tick. And if you look over historical numbers, I think Digi kind of normalizes in that kind of pinpoint around 3x turn on finished goods. So I think there's a period of time there. And I don't think it's -- you're not going to see inventory just kind of drop off a cliff.

成品，庫存餘額增加了——增加了一點。如果你查看歷史數據，我認為 Digi 的成品率在 3 倍左右的精確點上已經正常化。所以我認為還有一段時間。我認為，你不會看到庫存急劇下降。

I think it will be over a period of time. But to your point, that's really going to have a good impact on our operating cash, and that's going to enable probably a more aggressive posture on debt paydowns as that inventory balance comes down. So it will come down, but I don't think it will fall off a cliff. In terms of seasonality, undoubtedly, our first fiscal quarter does have at least some element of seasonality to it for issues that you pointed to.

我想這會持續一段時間。但就你的觀點而言，這確實會對我們的營運現金產生良好影響，隨著庫存餘額的下降，這可能會導致我們在債務償還方面採取更積極的姿態。所以它會下降，但我不認為它會從懸崖上掉下來。就季節性而言，毫無疑問，對於您所指出的問題，我們的第一個財政季度確實至少存在一些季節性因素。

It's typically year-end for a lot of our partners. They will traditionally work on lowering their inventory balances. They -- you will have certain customers that are maybe a little bit more budget dependent, and they may be coming up at the end of their budgets. You do have some different cycles.

對於我們的許多合作夥伴來說，通常是年底。傳統上，他們會努力降低庫存餘額。他們——你會擁有某些可能更依賴預算的客戶，他們可能會在預算結束時出現。你確實有一些不同的週期。

So that Q1 traditionally has a ticket seasonality. I won't say it's, again, similar to the inventory story. It's not off a cliff, but there is probably a little bit of a tick to it in the first quarter, and then it just kind of gradually works its way through for the rest of the fiscal year.

因此，Q1 傳統上具有門票季節性。我不會再說一遍，這與庫存故事類似。它並沒有懸崖勒馬，但在第一季可能會出現一些小問題，然後在本財年剩餘的時間裡它會逐漸發揮作用。

The ARR, which is approaching 1/4 of our total revenue, definitely is a buffer against that seasonality. So it's less so, Mike, than years gone by, but still a little bit element of that in there as well.

ARR 接近我們總收入的 1/4，絕對是針對季節性的緩衝。所以麥克，現在的情況比過去幾年少了一些，但仍然有一點點元素在裡面。

Okay. That's helpful. And one last one, I guess, Ron, I'll pass the line. Just you had some comments in the shareholder letter just about M&A. Can you talk about maybe valuations in this environment? And given your 3 $100 million and the cash flow that you're generating, what is kind of the appetite for M&A right now for Digi given strong track record so far, consolidating the IoT industry?

好的。這很有幫助。最後一件事，我想，羅恩，我會過線的。剛才您在股東信中對併購發表了一些評論。能談談這種環境下的估值嗎？考慮到您的 3 億美元和您正在產生的現金流，鑑於迄今為止的良好記錄，Digi 目前對併購的興趣是什麼，以鞏固物聯網行業？

Yes. It's another good question. We remain assertive in our posture on acquisitions. As you know, we've been really wanting to focus on fewer larger opportunities, those opportunities that have significant ARR to continue our solution strategy and build up that muscle as a part of our overall financial picture.

是的。這是另一個好問題。我們對收購的態度依然堅定。如您所知，我們一直希望專注於較少的較大機會，即那些具有顯著 ARR 的機會，以繼續我們的解決方案策略並增強這一實力，作為我們整體財務狀況的一部分。

I'd say that deal flow is increasing compared to, say, the first half of the year as well as there's a bit of a dichotomy, I think, and expectations on valuation. Those properties that are stronger are, I think, either waiting until better times or insisting on maybe more robust treatment. And that -- but there's also a lot of things where the investors have maybe gone tired or had some fatigue there and are looking to refresh their portfolio.

我想說的是，與今年上半年相比，交易量正在增加，我認為，估值預期也存在一些矛盾。我認為，那些更強大的特性要么等到更好的時機，要么堅持可能更強有力的治療。還有很多事情，投資者可能已經厭倦或有些疲勞，正在尋求更新他們的投資組合。

We're probably not going to be as active in the latter. We're probably more active in the former there. But in the meantime, as Jamie mentioned, we want to realize this inventory cash dividends, pay down our debt, certainly more aggressively than we've done in FY '23 to date. And prepare us for that opportunity that we don't always, of course, control the timing of. But the more quickly, we're available, the more capacity we have, the better position we're going to be to compete.

我們可能不會在後者中那麼積極。我們可能在前者方面更活躍。但同時，正如傑米所提到的，我們希望實現庫存現金股息，償還我們的債務，當然比我們在 23 財年迄今為止所做的更積極。讓我們為這個機會做好準備，當然，我們並不總是能控制時機。但我們的可用速度越快，我們擁有的能力就越大，我們的競爭地位就越好。

Our next question comes from the line of Harsh Kumar of Piper Sandler.

我們的下一個問題來自 Piper Sandler 的 Harsh Kumar。

I think the Street's coming around to appreciating your software business and the profitability that it generates, Ron. But if I could ask you to maybe clarify or give us some color on the profitability of your software business at a gross margin or op margin level, versus your hardware business?

我認為華爾街正在開始欣賞你的軟體業務及其產生的獲利能力，羅恩。但是，我能否請您澄清一下或給我們一些關於您的軟體業務相對於硬體業務的毛利率或營業利潤率水平的盈利能力？

And what it can do as you get -- start getting penetration higher in your hardware base? Like what can the business hope to see down the line midterm, long term? Any color would be appreciated.

當您開始提高硬體基礎的滲透率時，它可以做什麼？例如，企業希望從中長期看到什麼？任何顏色都會受到讚賞。

Harsh, thanks for the question. We've been really focused on the solution mindset. We're bringing more of the value proposition of our customers. So our customers can then focus on the data that's brought to their doorstep and really add much more value in the insight of how their remote assets are performing and making sure they have the highest uptime as well as then feeding those lines into their engineering cycles.

嚴厲，謝謝你的提問。我們一直非常重視解決方案思維。我們正在為客戶帶來更多的價值主張。因此，我們的客戶可以專注於傳送到他們家門口的數據，並在了解其遠端資產的性能方面真正增加更多價值，確保他們擁有最長的正常運行時間，然後將這些生產線輸入到他們的工程週期中。

And we think that message is really resonating. And that's being shown in really ARR, which is arguably the most important measure that we're focused on here at Digi to value how much progress we're making. And ARR comes at a higher margin than our company's overall gross margin. So as ARR grows, you see that really start to contribute to the gross margin line.

我們認為這個訊息確實引起了共鳴。這在真正的 ARR 中得到了體現，這可以說是我們在 Digi 關注的最重要的衡量標準，以評估我們所取得的進展。而且 ARR 的利潤率高於我們公司的整體毛利率。因此，隨著 ARR 的成長，您會發現這確實開始對毛利率線做出貢獻。

And you can see that in our sequential performance, our ARR has lifted that gross margin up, and we're obviously almost 57% and want to see that continue to improve. And then it's up to us as good operators to make sure that we've got the OpEx profile that allows that profitability to flow down the adjusted EBITDA line, and you're seeing that progress as well.

您可以看到，在我們的連續業績中，我們的 ARR 提高了毛利率，我們顯然接近 57%，並希望看到這種情況繼續改善。然後，作為優秀的營運商，我們有責任確保我們的營運支出狀況能夠讓獲利能力沿著調整後的 EBITDA 線流動，而且您也可以看到這一進展。

And certainly, we think it's going to progress over time as ARR continues to build. And then if we can jump start that at some point with acquisitions, we're going to look at that as well. But I think it's really important that we continue this progress on ARR and see it impact gross margin and adjusted EBITDA margin as well.

當然，我們認為隨著 ARR 的不斷發展，它會隨著時間的推移而取得進展。然後，如果我們可以在某個時候透過收購來快速啟動這一點，我們也會考慮這一點。但我認為，我們繼續在 ARR 方面取得進展並看到它對毛利率和調整後 EBITDA 利潤率的影響非常重要。

Ron, if I can push you on that last sentence that you used. Is it fair to assume that any software you look at will be -- I'm sorry, any acquisition you look at would be now in the software side as opposed to hardware side? Or would you look at maybe some complete solutions as well?

羅恩，我可以讓你繼續你使用的最後一句話嗎？假設您看到的任何軟體都會 - 很抱歉，您看到的任何收購現在都屬於軟體方面而不是硬體方面，這是否公平？或者您也會考慮一些完整的解決方案嗎？

Yes. I think we're probably most squarely focused on hardware-enabled recurring. It's an area we think we have expertise. We think it's consistent with what we're doing and performing so we can add value. And quite frankly, it's got a different set of growth profiles of mechanics than, say, a pure software business that can have extreme polarization in valuations.

是的。我認為我們可能最關注的是硬體支援的循環。我們認為我們在這個領域擁有專業知識。我們認為這與我們正在做的事情和表現是一致的，因此我們可以增加價值。坦白說，它的機製成長概況與純軟體業務不同，後者的估值可能出現極端兩極化。

A lot of software businesses, especially when they're smaller, are investing pretty heavily to fund their growth. And so the profitability of the software companies may not be at the profile that would be helpful for Digi. But that hardware-enabled recurring, we think is our sweet spot.

許多軟體企業，尤其是規模較小的軟體企業，都進行了大量投資來為其發展提供資金。因此，軟體公司的獲利能力可能不會對 Digi 有幫助。但我們認為，硬體支援的重複性是我們的最佳選擇。

It's often times, as you can see from some of our performance, it can be harder sometimes to close those deals. But then once you get them, you perform, it could be very a long-lasting relationship because it's just quite an effort to deploy in some cases, hundreds or thousands of remote connectivity assets and keep it up and running. So if there's any takeaways, we're hardware-enabled recurring, which is a little bit different than to pure software.

正如您從我們的一些業績中看到的那樣，很多時候，完成這些交易可能會更困難。但是，一旦您獲得它們並執行，這可能是一種非常持久的關係，因為在某些情況下，部署數百或數千個遠端連接資產並保持其正常運行需要相當大的努力。因此，如果有什麼要點的話，那就是我們是硬體支援的循環，這與純軟體有點不同。

Absolutely. If I can ask one more, Ron, I think you've got some presence in Europe, and you've got some tremendous opportunity with your solutions business and also Ventus in Europe. Could you highlight for us or could you chalk out for us where you stand and maybe what that opportunity could be for you down the line?

絕對地。如果我可以再問一個問題，羅恩，我認為您在歐洲已經有了一定的影響力，並且您的解決方案業務以及歐洲的 Ventus 獲得了一些巨大的機會。您能否為我們強調一下，或者您能否為我們列出您的立場以及也許這個機會對您來說是什麼？

Yes, it's a good question. Most of our solutions business is really focused on the North American theater and Europe presents a wonderful opportunity. We've had the good fortune of not having a lack of market to go after North America to hit our growth expectations. And as you know, when you get into Europe, it quickly evolves into Germany, France, Spain, the U.K., because although it's the EU, a lot of them have local regulations, local cultures, local language and other things.

是的，這是一個好問題。我們的解決方案業務大多集中在北美地區，而歐洲則提供了絕佳的機會。我們很幸運，不缺乏市場來追求北美以達到我們的成長預期。如你所知，當你進入歐洲時，它很快就會演變成德國、法國、西班牙、英國，因為雖然是歐盟，但許多國家都有當地的法規、當地的文化、當地的語言等等。

So we're careful when we think about Europe to be more country-specific than just the entire theater. But that certainly represents a future opportunity for us. And I think when the time is right, we're going to probably be dragged into there by our customers rather than, say, establishing base camp and opening up a storefront.

因此，當我們考慮歐洲的具體情況而不僅僅是整個劇院時，我們會非常謹慎。但這對我們來說無疑代表著未來的機會。我認為當時機成熟時，我們可能會被客戶拉到那裡，而不是建立大本營和開設店面。

The next question comes from the line of Scott Searle of ROTH MKM.

下一個問題來自 ROTH MKM 的 Scott Searle。

Ron, maybe to dive in on some of the end markets, particularly around the routers and cellular gateways and open gear without a band. I'm wondering if you could give us kind of an update on where you're seeing demand, how the channel inventory is looking particularly on the gateway front as we look into the back half of the calendar year?

羅恩，也許會涉足一些終端市場，特別是在路由器和蜂窩網關以及沒有頻段的開放式設備周圍。我想知道您能否向我們提供有關您所看到的需求的最新情況，以及當我們展望今年下半年時渠道庫存的情況，尤其是在網關方面的情況？

Scott, we were pleased to really see strong results across our product line. So that was -- if you look at our portfolio, that's really good to see. Each of our product lines has a little different focus area in terms of the verticals that they're exposed to. And that is, I think, a real benefit for Digi in that we're not, say, overweighted in one vertical where you can have maybe higher gyrations of performance.

斯科特，我們很高興看到我們的產品線取得了強勁的成果。所以，如果你看看我們的產品組合，你會發現這真的很不錯。我們的每條產品線在其所涉及的垂直領域都有一些不同的重點領域。我認為，這對 Digi 來說是一個真正的好處，因為我們不會在某個垂直領域過度重視，而在這個領域你可能會獲得更高的效能波動。

So for example, if you look at our Opengear console server product line, they're getting quite frankly, more opportunities on the edge than the data center where that was really flipped if you look to, say, 3 years ago, the data centers real driving the growth. So the extension of that IT remote presence has extended into storefronts, retails, offices, banks, insurance companies. So that's really good to see.

舉例來說，如果你看看我們的 Opengear 控制台伺服器產品線，坦白說，他們在邊緣的機會比資料中心更多，如果你看看 3 年前的資料中心，情況就完全翻轉了。真正推動成長。因此，IT 遠端存在已擴展到店面、零售店、辦公室、銀行、保險公司。所以這真的很高興看到。

If you look at our OEM solutions business, continued strength in Medical devices, continued strength in renewals, solar, EV charging, in our cellular router product line, we're seeing a -- thankfully, renewed strength in smart city and public transit, which, as you know, during COVID was essentially shut down.

如果你看看我們的OEM 解決方案業務、醫療設備方面的持續優勢、更新、太陽能、電動車充電方面的持續優勢，以及我們的蜂窩路由器產品線，我們會看到——值得慶幸的是，智能城市和公共交通領域的新優勢，如您所知，在新冠疫情期間，該中心基本上已關閉。

In addition to utility segments, which are looking at, well, public and private networks to upgrade the monitoring of their grids to ensure uptime and performance. So we were pleased to see both the performance, but also the distribution of that performance across verticals.

除了公用事業部門之外，它們也在考慮公共和專用網路來升級其電網的監控，以確保正常運作時間和效能。因此，我們很高興看到性能，也很高興看到性能在垂直領域的分佈。

Very helpful. If I could follow up on it. Are there any pockets of inventory that you're seeing by vertical run that are concerns at the current time?

很有幫助。如果我能跟進的話。您目前透過垂直運營看到的庫存是否存在令人擔憂的問題？

No, not really. We -- our channel partners, they're typically going to be multi-vertical and not overweighted to one. So we don't have any particular concentration by vertical.

不，不是真的。我們－我們的通路夥伴，他們通常會是多垂直領域的，而不是過度重視單一垂直領域。所以我們在垂直領域沒有任何特定的集中度。

Got you. And if I could, just one last one. Looking at the traditional gateway business, we've been talking about the potential to convert that into more of a recurrent revenue stream model off the Ventus model. How are those channels receiving that message? How is that progressing? And what are the high-level thoughts there as we look out into fiscal '24?

明白你了。如果可以的話，就最後一張吧。看看傳統的網關業務，我們一直在討論將其轉變為 Ventus 模式之外的更多經常性收入流模式的潛力。這些管道如何接收該訊息？進展如何？當我們展望 24 財年時，高層的想法是什麼？

Yes, it's a really good question, Scott. As I think the audience knows the cellular router group, well, obviously actively working with end users, works very closely with the MNOs as well as channel partners. That's a critical part of their cadence. Whereas on the managed solutions side, there may be a partner involved, but you tend to be directly working with that end user much more so than going through a channel.

是的，這是一個非常好的問題，斯科特。我認為觀眾了解蜂窩路由器小組，顯然他們積極與最終用戶合作，與行動網路營運商以及通路合作夥伴密切合作。這是他們節奏的關鍵部分。而在託管解決方案方面，可能會有合作夥伴參與，但您更傾向於直接與該最終用戶合作，而不是透過管道。

And so it's going to be an evolution, not a revolution as we introduce that model into the channel and start educating them, it's not as intuitive for them. But we think we can be successful. It will take some time because it's a pretty different thing that they've been doing to date. And a lot of the work we're doing on take rates really for software really applies to the managed network service offering as well.

因此，當我們將該模型引入管道並開始教育他們時，這將是一場演變，而不是一場革命，這對他們來說並不那麼直觀。但我們認為我們能夠成功。這需要一些時間，因為這是他們迄今為止所做的完全不同的事情。我們在軟體的使用率方面所做的許多工作也確實適用於託管網路服務產品。

Our next question comes from Derek Soderberg of Cantor Fitzgerald.

我們的下一個問題來自康托·菲茨杰拉德的德里克·索德伯格。

Ron, you mentioned the importance of kind of building these strong customer relationships. I think you mentioned you're having these conversations with customers saying, hey, we really think you guys would benefit from sort of this recurring model.

羅恩，您提到了建立這些牢固的客戶關係的重要性。我想你提到你正在與客戶進行這些對話，他們說，嘿，我們真的認為你們會從這個重複模型中受益。

I'm curious if -- what -- to what degree are those conversations happening where you're sort of turning down onetime sales with customers in the past or new customers if they won't subscribe? Are those conversations happening with a handful of product lines, most of your product lines today? Can you talk about that a bit? And when do you think you're going to take that step to really move towards that return model?

我很好奇，如果——什麼——在多大程度上，你會拒絕與過去的客戶或新客戶（如果他們不訂閱）的一次性銷售？這些對話是否發生在少數產品線（即您今天的大部分產品線）上？你能談談這個嗎？您認為您什麼時候會踏出這一步，真正邁向回報模式？

Yes. Thanks for the question, Derek. Yes, we're not at the point where we're turning down business if it does not include a solutions element to it. We're certainly leading with solutions, and that's an important step for us in the past. It was leading with product and then offering solutions as a secondary offering.

是的。謝謝你的提問，德里克。是的，如果業務不包含解決方案，我們不會拒絕它。我們當然在解決方案方面處於領先地位，這對我們過去來說是重要的一步。它以產品為主導，然後提供解決方案作為二次產品。

Now we're really leading and starting those conversations often. And I'll emphasize it's to both end users, but also with the channel and educating channel on the benefit of solutions. And quite frankly, the channel is happy to hear the message they benefit as well as Digi.

現在我們確實經常領導並開始這些對話。我要強調的是，這既針對最終用戶，也針對管道和教育管道，讓他們了解解決方案的好處。坦白說，該頻道很高興聽到他們和 Digi 一樣受益的消息。

And also we're not the first to go about this type of approach. So that's the good news as well. This isn't a foreign concept to our partners. It affects a lot of our product line, I wouldn't say all of it, in particular, our OEM solutions group, where we're selling an embedded product to a customer is designing our solution, our product into their larger ecosystem. That's an area where we're much more careful.

而我們並不是第一個採用這種方法的人。這也是個好消息。對我們的合作夥伴來說，這並不是一個陌生的概念。它影響了我們的許多產品線，我不會說全部，特別是我們的OEM 解決方案小組，我們向客戶銷售嵌入式產品，正在設計我們的解決方案，將我們的產品融入他們更大的生態系統中。這是我們要更加小心的領域。

Those are long design cycles. We're not going to upset existing solutions that the customer is enjoying because of maybe artificial policy, if you will. So that part of our business, in particular, has a much more discerning implementation of solution. That starts rate as they order that kit, as they start to work on their design and then it takes them some time to actually get into production. But we're excited about the box -- part of our business and product services where that's really where this applies more thoroughly.

這些都是很長的設計週期。如果您願意的話，我們不會因為人為政策而破壞客戶正在享受的現有解決方案。因此，我們業務的這一部分尤其需要更敏銳的解決方案實施。當他們訂購該套件時，當他們開始進行設計時，這個速度就開始了，然後他們需要一些時間才能真正投入生產。但我們對這個盒子感到很興奮——它是我們業務和產品服務的一部分，這確實是更徹底應用的地方。

Got it. Got it. And then as my follow-up, you mentioned some strength in the clean tech sort of end market, solar and electric vehicle charging. I think one of your big customers in solar tracking, their solution relies pretty heavily on Digi connectivity. It seems to me like the EV charging network will require something similar.

知道了。知道了。然後，作為我的後續行動，您提到了終端市場、太陽能和電動車充電等清潔技術領域的一些優勢。我認為你們在太陽能追蹤方面的大客戶之一，他們的解決方案非常依賴 Digi 連接。在我看來，電動車充電網路也需要類似的東西。

I'm curious what kind of attach rates you're seeing in those markets? Are they higher than average? And then I'm also curious if you could maybe lay out like what's sort of the opportunity per charging station for electric vehicle chargers? It seems like there's a ton of funding in that space. And curious if you can kind of lay out what's the opportunity there?

我很好奇您在這些市場上看到的附加費率是多少？他們高於平均嗎？然後我也很好奇您是否可以列出每個充電站為電動車充電器提供的機會是什麼？這個領域似乎有大量資金。很好奇能否介紹一下那裡有什麼機會？

Yes. As you mentioned, there's at least 2 different vectors: one, of course, is in renewables where there's this really important rush to balance our energy sources between more traditional energy sources and renewables and there's continued funding.

是的。正如您所提到的，至少有兩種不同的載體：其中之一當然是可再生能源，在傳統能源和再生能源之間平衡我們的能源非常重要，並且有持續的資金支持。

Certainly, the warm summer we're experiencing doesn't hurt that set deployments. In those areas, we're an important provider. And there's a great opportunity to help because think about where these solar farms are located. They're very remote and making sure you manage those facilities as effectively as possible is critical.

當然，我們正在經歷的溫暖夏季不會影響既定的部署。在這些領域，我們是重要的提供者。這是一個提供幫助的絕佳機會，因為想想這些太陽能發電廠的位置。它們非常偏遠，確保盡可能有效地管理這些設施至關重要。

EV charging I think is in a -- relative speaking, a newer phase, getting tons of funding, there's this rush to put chargers out. And I think in that rush, the management of that charging platform has been a little bit of a secondary thought. So it's providing a great opportunity for us to have conversations with EV charger providers, but also the operators as to how they manage the uptime, the availability.

我認為電動車充電正處於相對而言的新階段，獲得了大量資金，人們急於推出充電器。我認為在這種匆忙中，充電平台的管理已經成為次要的想法。因此，這為我們提供了一個很好的機會，可以與電動車充電器供應商以及營運商進行對話，了解他們如何管理正常運行時間和可用性。

It's not just as the charging or available, but many of these have point-of-sale terminals. And those point-of-sale terminals need to be up as much as the charging itself. There's nothing more disappointing than showing up in EV charging with low battery, and then you can't get access to a charger. So it's more than just deploying, it's managing the promote assets. So there's, I think, going to be a great opportunity for us to help that ecosystem, not just deploy but manage this critical set of assets.

這不僅僅是充電或可用，而且其中許多都有銷售點終端。這些銷售點終端需要與充電本身一樣多。沒有什麼比出現在電動車充電時電池電量低，然後你無法使用充電器更令人失望的了。因此，它不僅僅是部署，它還管理推廣資產。因此，我認為，我們將有一個很好的機會來幫助該生態系統，而不僅僅是部署而且管理這組關鍵資產。

Our next question is from Tommy Moll of Stephens Inc.

我們的下一個問題來自 Stephens Inc. 的湯米·莫爾 (Tommy Moll)。

Ron, just a follow-up on the macro as we approach your fiscal '24. You talked about the debate around an imminent recession in your release, but you also talked about how your end market exposures helped in the past to weather some challenging market conditions. So are you seeing any incremental pockets of weakness in the business? Is there anything on the getting stronger or getting weaker side of the equation you would want to mention just to frame everyone's expectations for the next year?

羅恩，在我們接近 24 財年之際，這只是宏觀政策的後續行動。您在新聞稿中談到了圍繞即將到來的經濟衰退的爭論，但您也談到了您的終端市場曝險在過去如何幫助應對一些具有挑戰性的市場條件。那麼您是否發現該業務中存在任何增量弱點？您是否想提及等式中變強或變弱的任何內容，以建立每個人對明年的期望？

Yes, Tom, we've been pretty vocal on that, that we've got this balanced portfolio and that this portfolio has exposure to different verticals. So you're absolutely right. At any given point in time, there can be strength and weakness in certain verticals. And we like this portfolio because it provides resilience, we think, and especially in maybe more stressful times.

是的，湯姆，我們對此一直直言不諱，我們擁有這個平衡的投資組合，而這個投資組合涉及不同的垂直領域。所以你是完全正確的。在任何給定的時間點，某些垂直領域可能存在優勢和劣勢。我們喜歡這個投資組合，因為我們認為它提供了彈性，尤其是在壓力更大的時期。

We've also acknowledged that because we're not overly weighted in a vertical that we don't necessarily outsize gain if a vertical has particular strength because that's only a portion our business. So -- and we had this discussion a little bit -- even earlier on this call that renewables, EV charging, medical devices, the utility segment remained very strong for us.

我們也承認，由於我們在某個垂直領域的權重並不過分，因此如果某個垂直領域具有特殊優勢，我們不一定會獲得巨大的收益，因為這只是我們業務的一部分。因此，我們進行了一些討論，甚至在這次電話會議的早些時候，再生能源、電動車充電、醫療設備、公用事業領域對我們來說仍然非常強勁。

There are certainly pockets of things that I think a lot of our audience would understand. So for example, there's a lot of activity going on in banking right now, right, with exposure to maybe -- to have certain deposits or interest rates tied with those and how that affects the financial services industry.

我認為我們的許多觀眾肯定會理解一些事情。舉例來說，銀行業現在正在進行許多活動，對吧，可能會接觸到某些存款或利率，以及這對金融服務業的影響。

But we think on a whole, the market is growing at this double-digit rate. And although there may be pockets of strength and weakness that we can really sustain that double-digit growth rate over time that there certainly might be times like this year where we're doing, I think, better than that type of performance.

但我們認為總體而言，市場正在以兩位數的速度成長。儘管可能存在一些優勢和劣勢，但隨著時間的推移，我們確實可以維持兩位數的成長率，但我認為，肯定會有像今年這樣的時候，我們的表現會比這種類型的表現更好。

And there may be times in the future where we're not quite there. But we think on balance, we've got that strength in our offerings and our exposures that allows for more consistent performance.

未來有時我們可能還沒有完全做到這一點。但我們認為，總的來說，我們的產品和風險敞口具有優勢，可以實現更一致的表現。

I'm showing no further questions at this time. I would now like to turn the conference back to Ron Konezny.

我目前沒有提出任何進一步的問題。現在我想把會議轉回羅恩·科尼茲尼。

Thank you for joining Digi's earnings call and for your continued support. For investors, we will be attending Canaccord Genuity's 43rd Annual Growth Conference in Boston on August 9 and Piper Sandler's Growth Frontiers Conference, September 11 to 13 in Nashville. Have a great day.

感謝您參加 Digi 的財報電話會議並感謝您的持續支持。對於投資者來說，我們將參加 8 月 9 日在波士頓舉行的 Canaccord Genuity 第 43 屆年度成長會議，以及 9 月 11 日至 13 日在納許維爾舉行的 Piper Sandler 成長前沿會議。祝你有美好的一天。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。