Digi International Inc (DGII) 2025 Q1 法說會逐字稿

Good day.

再會。

And thank you for standing by.

感謝您的支持。

Welcome to fiscal quarter one 2025 Digi International Inc earning's conference call.

歡迎參加 Digi International Inc 2025 財年第一季財報電話會議。

(Operator Instructions)

（操作員指令）

Please be advised that today's conference is being recorded.

請注意，今天的會議正在錄音。

I would now like to hand the conference over to your speaker today, Jamie Loch, CFO.

現在，我想將會議交給今天的發言人、財務長傑米洛克 (Jamie Loch)。

Please go ahead.

請繼續。

Thank you.

謝謝。

Good day, everyone.

大家好。

It's great to talk to you again.

很高興再次與您交談。

And thanks for joining us today to discuss the earnings results of Digi International.

感謝您今天加入我們討論 Digi International 的獲利結果。

Joining me on today's call is Ron Konezny, our President and CEO.

參加今天電話會議的還有我們的總裁兼執行長 Ron Konezny。

We issued our earning's release after the market closed today.

我們在今天市場收盤後發布了我們的收益報告。

You may obtain a copy of the press release through the financial releases section of our Investor Relations website at digi.com. This afternoon, Ron will provide a comment on our performance and then, we'll take your questions.

您可以透過我們投資者關係網站 digi.com 的財務發布部分取得新聞稿的副本。今天下午，羅恩將對我們的表現發表評論，然後我們將回答大家的問題。

Some of the statements that we make during this call are considered forward-looking and are subject to significant risks and uncertainties.

我們在本次電話會議中所做的一些陳述被視為前瞻性的，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.

這些聲明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觀點。

We undertake no obligation to update publicly or revise these forward-looking statements.

我們不承擔公開更新或修改這些前瞻性陳述的義務。

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.

雖然我們相信我們的前瞻性聲明中反映的預期是合理的，但我們不保證這些預期將會實現，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 statement section in our earning's release today and the risk factor section of our most recent form 10-K and subsequent reports on file with the SCC.

欲了解更多信息，請參閱我們今天發布的收益報告中的前瞻性聲明部分、我們最新的 10-K 表格中的風險因素部分以及隨後提交給 SCC 的報告中。

Finally, certain of the financial information disclosed on this call includes non-GAAP measures.

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準則指標。

The information required to be disclosed about these measures, including reconciliations to the most comparable GAAP measures are included in the earning's release.

關於這些指標所需披露的信息，包括與最具可比性的 GAAP 指標的調節，都包含在收益報告中。

The earning's release is also furnished as an exhibit to form 8-K that can be accessed through the SEC filing sections of our Investor Relations website.

收益報告也作為 8-K 表格的附件提供，可透過我們投資者關係網站的 SEC 備案部分存取。

Now, I'll turn the call over to Ron.

現在，我將電話轉給羅恩。

Thank you, Jamie.

謝謝你，傑米。

Good afternoon, everyone.

大家下午好。

Before I take questions, a few highlights from our 2025 fiscal first quarter.

在回答問題之前，我先來介紹一下我們 2025 財年第一季的一些亮點。

We begin the 2nd year of our five-year journey to double ARR and adjusted EBITDA at $200 million each and remain as confident as ever.

我們開始了五年旅程的第二年，旨在將 ARR 和調整後 EBITDA 分別翻一番，達到 2 億美元，並且我們仍然像以往一樣充滿信心。

We will achieve these targets.

我們將會實現這些目標。

In our first fiscal quarter, ARR reached another record at $120 million, an increase of 11% over last year and $4 million higher than last quarter.

在我們的第一財季，ARR 再創紀錄，達到 1.2 億美元，比去年同期成長 11%，比上一季高出 400 萬美元。

Strong performance in both of our reporting segments drove this performance.

我們兩個報告部門的強勁表現推動了這一業績。

ARR now represents a record 28% of our quarterly revenues.

ARR 目前占我們季度營收的 28%，創歷史新高。

ARR is the top strategic priority to benefit our customers, distributors, employees, and shareholders.

ARR 是造福我們的客戶、經銷商、員工和股東的首要策略重點。

As an industrial IOT solution provider, Digi solve some of the toughest and most valuable remote connectivity challenges.

作為工業物聯網解決方案供應商，Digi 解決了一些最棘手且最有價值的遠端連線挑戰。

Our customers rely on our best-in-class software and service, complementing our reliable, secure award-winning edge intelligence.

我們的客戶信賴我們一流的軟體和服務，並對我們可靠、安全、屢獲殊榮的邊緣智慧進行補充。

Digi solutions produce a compelling ROI and faster outcomes for our customers.

Digi 解決方案為我們的客戶帶來了極具吸引力的投資報酬率 (ROI) 和更快的成果。

As ARR grows, it will have an increasing impact on our profitability, enabling our second long-term objective.

隨著 ARR 的成長，它將對我們的獲利能力產生越來越大的影響，從而實現我們的第二個長期目標。

We continue to enhance Digi's balance sheet with total outstanding debt below $100 million for the first time since our fiscal fourth quarter of 2021.

我們持續增強 Digi 的資產負債表，自 2021 財年第四季以來，未償還債務總額首次低於 1 億美元。

We generated $30 million in cash from operations in the quarter and further reduced our inventory balances.

我們本季的營運活動產生了 3000 萬美元的現金，並進一步減少了庫存餘額。

We expect strong free cash flow generation this year with all debt expected to be retired by the end of calendar 2025.

我們預計今年將產生強勁的自由現金流，預計到 2025 年底將償還所有債務。

As our balance sheet improves, we're even better positioned to pursue solution-oriented acquisitions of scale in a rapidly evolving geopolitical environment that has a myriad of outcomes for global businesses.

隨著我們的資產負債表不斷改善，我們更有能力在快速發展的地緣政治環境中進行以解決方案為導向的規模收購，而這種收購將為全球企業帶來無數結果。

We remain steadfast in putting our customers' best interest first, just as we did while navigating the supply chain challenges coming out of the COVID pandemic.

我們始終堅定不移地將客戶的最大利益放在第一位，就像我們在應對新冠疫情帶來的供應鏈挑戰時所做的那樣。

Despite the speed of change and the fluidity of tariff policies, it is confident in our ability to leverage our geographically diverse manufacturers.

儘管變化速度很快且關稅政策不穩定，但我們對我們利用地理位置分散的製造商的能力充滿信心。

In 2025, we celebrate our 40-year history of resilience, innovation, and adaption.

2025 年，我們將慶祝我們 40 年的韌性、創新和適應歷史。

And we rely on this to deliver for our customers for decades to come.

我們依靠這一點在未來幾十年為客戶提供服務。

Operator, I will now hand the call back for Q&A.

接線員，我現在將把電話交回以供問答。

(Operator Instructions)

（操作員指令）

Tommy Moll from Stephens.

來自史蒂芬斯的湯米·莫爾。

Good afternoon.

午安.

And thanks for taking my questions.

感謝您回答我的問題。

Hey, Tommy.

嘿，湯米。

Have a couple items on the products and services trends here.

這裡有一些關於產品和服務趨勢的內容。

I guess if we look at the reported revenue, there was a -- the hit from the $4.7 million decline in the one timers.

我想，如果我們看一下報告的收入，我們會發現一次性支出減少了 470 萬美元，這對我們造成了打擊。

And then conversely, if you look at the ARR, I mean we were up 17% year over year.

相反，如果你看一下 ARR，我的意思是我們比去年同期成長了 17%。

So maybe if you could just give a little bit of context on the drivers there for each and in particular, on the ARR side.

因此，如果您可以提供一些關於每個驅動因素的背景信息，特別是 ARR 方面的背景信息，也許可以。

What could that look like going forward?

接下來的情況會是如何？

Thank you.

謝謝。

Yeah, Tommy.

是的，湯米。

It's Jamie.

是傑米。

One of the things that we've talked about in the past as we make this transition is that you will see where we would have a transfer of one-time revenue into recurring revenue.

我們在進行這一轉變時討論過的事情之一是，你會看到我們將一次性收入轉變為經常性收入。

And I think you're seeing an example of that now.

我想您現在看到的就是一個例子。

It's not massive swings.

這並不是劇烈的波動。

But it's enough, that it is noticeable.

但這已足夠，引人注目。

And you know, when you consider that that ARR is over a one-year period versus a three-year period, you can kind of see that it probably is an indicator of how units actually went out the door.

而且你知道，當你考慮到 ARR 是一年期而不是三年期時，你就可以發現它可能是單位實際出貨情況的指標。

And so, this is a theme that I think will be pretty consistent over a period of time, where you'll have some periods, where ARR growth will be higher.

所以，我認為這個主題在一段時間內會相當一致，在某些時期，ARR 成長會更高。

And that one-time revenue could vary a little bit to the plus or to the minus.

且一次性收入可能會有小幅上漲或下跌。

But this for sure is part of the path that that we've laid out is as really focusing on our ARR growth.

但這肯定是我們制定的路線的一部分，真正關注我們的 ARR 成長。

Second question from me on your guidance for the second fiscal quarter.

我的第二個問題是關於您對第二財政季度的指導。

It looks like revenue is projected to be flattish quarter over quarter.

看起來預計營收將與上一季持平。

On the EBITDA line, just in dollar terms at the midpoint, we're slightly down.

在 EBITDA 線上，僅以美元計算中間值，我們略有下降。

So I'm just curious if there's something on the margin side in Q2 that is worth calling out there.

所以我只是好奇第二季的利潤方面是否有一些值得注意的事情。

Yeah.

是的。

Tommy, it's Jamie again.

湯米，又是傑米。

I think if you look at the performance in Q1, you would have seen a significant sequential change in gross margins.

我認為，如果你看一下第一季的表現，你會看到毛利率發生了顯著的連續變化。

And while part of that change is attributable to the changing a mix between ARR and one time, we also had some very favorable product mix that took place this quarter in one-time revenue.

雖然部分變化歸因於 ARR 和一次性收入之間的組合變化，但本季我們在一次性收入方面也有一些非常有利的產品組合。

And I would say that you can see that it really has moved to a level that's probably above new plateaus that we had said are probably considered reasonable.

我想說的是，你可以看到它確實已經上升到了一個可能高於我們之前所說的合理新水平的水平。

And so we had some favorable mix in Q1 that we are likely not going to repeat to that scale in Q2.

因此，我們在第一季取得了一些有利的成績，但在第二季很可能不會再達到相同的規模。

And so that's probably the biggest driver that's taking place all around mix on the one-time revenue.

所以這可能是一次性收入組合中最大的驅動力。

But still, for sure seeing, you'll continue to see the mix that's been attributable to ARR growth.

但是，可以肯定的是，你將繼續看到歸因於 ARR 成長的組合。

And you know, at a Digi wide-level gross margins at 60% or better, will continue to be the theme.

你知道，Digi 的廣泛層面毛利率達到 60％或更高將繼續成為主題。

But this one spikes up a little bit higher than what we've seen in the past.

但這次的漲幅比我們過去看到的要高一些。

Thanks, Jamie.

謝謝，傑米。

I'll turn it back.

我會把它轉回去。

Thanks, Tommy.

謝謝，湯米。

Jim Fisher, Piper Sandler.

吉姆費雪、派珀桑德勒。

Hey guys, thanks for the time here.

嘿夥計們，感謝你們在這裡度過的時間。

Maybe Ron for you just to start and you alluded to this a little bit in your prepared remarks.

也許羅恩只是為您開始，您在準備好的發言中稍微提到了這一點。

Can you elaborate a little bit more as to how you guys are thinking about the tariff impact potential given your supply chain does stretch across North America, here?

鑑於你們的供應鏈遍布北美，你能否進一步詳細說明你們如何看待關稅的潛在影響？

And do you think we could see a pull in of demand for more of the CapEx or one time-up front side of the business as a result of sort of the threat of what we could see as increased prices.

您是否認為，由於價格上漲的威脅，我們可能會看到對更多資本支出或一次性業務前期費用的需求增加？

Yeah.

是的。

You know, it's a good question.

你知道，這是一個好問題。

You know over 70% of our revenues are coming out of North America.

你知道我們 70% 以上的收入來自北美。

The US, in particular, is a dominant part of that.

尤其是美國，在其中佔據主導地位。

We have emphasized with our customers; we're going to put their interest first.

我們向客戶強調；我們會把他們的利益放在第一位。

We have a geographically diverse set of manufacturing partners, including with presence in the US.

我們擁有遍布各地的製造合作夥伴，其中包括在美國的製造合作夥伴。

We don't move our product lines.

我們不會移動我們的產品線。

You know, [as early], we're very deliberate about it.

你知道，我們對此非常慎重。

We have not been communicating to our customers that hey, get it now or you're going to face some kind of price increase.

我們一直沒有跟客戶溝通，說『嘿，現在就買，否則你將面臨某種價格上漲』。

We're taking that longer view of that relationship and that solution as well, way more valuable than any kind of near-term tariff implication.

我們對這種關係和解決方案採取了更長遠的眼光，這比任何短期的關稅影響都更有價值。

Combine that with a very fluid policy, I think there's generally a lot of uncertainty out there.

再加上非常不穩定的政策，我認為整體上存在著許多不確定性。

Got it.

知道了。

And then look, we -- we've got it budgets, potentially increasing discussions around, data center refreshes.

然後看，我們有預算，可能會增加有關資料中心更新的討論。

How should we be thinking of these tailwinds for you guys over the next year or two, relative to some of the other dynamics around other use cases like you know, ATMs point of sale, sensors, gaming, and what not.

相對於其他用例（例如 ATM 銷售點、感測器、遊戲等）的一些其他動態，我們應該如何看待未來一兩年內對你們的這些順風？

Yeah.

是的。

I think there could be a favorable backdrop there, Jim.

我認為那裡可能有一個有利的背景，吉姆。

I think there's a lot of continued interest in infrastructure investing and of course, as you know, a lot of emphasis on trying to have foreign companies and local companies invest in the US.

我認為人們對基礎設施投資持續保持著濃厚的興趣，當然，如你所知，他們也非常重視吸引外國公司和本地公司在美國投資。

And that all creates opportunity.

這一切都創造了機會。

We saw PMI crack 50 for the first time and some time here, that's a positive indication.

我們首次看到PMI突破50，這是一個積極的跡象。

The industrial economy has been weak for some time.

一段時間以來，工業經濟一直處於低迷狀態。

And so there is the real potential for the hard goods part of our economy to have an uplift here.

因此，我們經濟的耐用品部分確實有獲得提升的潛力。

And those Western companies are increasingly favoring Western providers to help them with their technology and IOT solution.

而這些西方公司也越來越青睞西方供應商來幫助他們提供科技和物聯網解決方案。

So there could be a real favorable backdrop.

因此可能存在真正有利的背景。

Thank you.

謝謝。

Josh Nichols, B. Riley.

喬許‧尼可斯、B.萊利。

Yeah.

是的。

Thanks for taking my question.

感謝您回答我的問題。

And great to see the healthy gross margins and the record ARR, previously sometimes on the call, you give a little bit more context.

很高興看到健康的毛利率和創紀錄的 ARR，之前有時在電話會議上，您會提供更多背景資訊。

I'm just kind of curious about what you're seeing in terms of customer ordering patterns.

我只是有點好奇您所看到的客戶訂購模式。

And then, any particular end markets where you're seeing particular strength or weakness overall today?

那麼，您認為目前哪些特定的終端市場整體上表現出特別的優勢或劣勢？

Yeah.

是的。

So I think the ordering patterns of have stabilized, maybe modestly improved, I wouldn't say dramatically improved.

因此，我認為訂購模式已經穩定下來，可能略有改善，但我不會說顯著改善。

But you do sense increased confidence in the marketplace.

但你確實感覺到市場信心有增強。

We watch closely some of our key suppliers, NXP, and [so-called] labs, and others.

我們密切關注我們的一些主要供應商，恩智浦（NXP）、[所謂的]實驗室等。

And they're still citing some industrial and automotive weaknesses.

他們仍在指出一些工業和汽車領域的弱點。

And we'll also look at communications equipment, comps, and Juniper had a print yesterday.

我們還將關注通訊設備、電腦以及瞻博網路昨天發布的報告。

It was relatively favorable.

這是相對有利的。

So there could be some continued momentum there to climb out of extended sales cycles, shorter order volumes, and amounts that could help us.

因此，可能會有一些持續的動力來擺脫延長的銷售週期、更短的訂單量和可以幫助我們的數量。

In terms of verticals, as you've heard a lot of times, I know it's a little bit beige.

就垂直方面而言，正如您多次聽到的那樣，我知道它有點米色。

But in terms of the answer, we are very diverse.

但就答案而言，我們是非常多樣化的。

So at any point in time, we have sectors that are doing well.

因此，在任何時候，我們都有表現良好的領域。

And sectors that maybe aren't as favorable.

有些行業可能不那麼有利。

We continue to see good demand out of data centers.

我們繼續看到數據中心的良好需求。

That's a key market for Opengear.

這是 Opengear 的一個重要市場。

But we're also seeing really good demand in medical devices.

但我們也看到醫療設備的需求確實強勁。

We're seeing good demand in [counter] solutions for remote machines, which helps dentists and cellular utilities are a strong segment, both renewable utilities as well as more traditional fossil fuels.

我們看到遠端機器的[應對]解決方案有著良好的需求，這有助於牙醫和蜂窩公用事業成為一個強大的領域，包括可再生公用事業以及更傳統的化石燃料。

And so that's been a good segment as they've been looking to modernize their infrastructure.

因為他們一直在尋求基礎設施的現代化，所以這是一個很好的部分。

Thanks and then just one follow up for me, I'm kind of curious.

謝謝，然後我還有一個後續問題，我有點好奇。

Just you -- you've been seeing good ARR growth across both the segments now.

正如您所說——您現在已經看到兩個部門的 ARR 都實現了良好的成長。

Any context, I'm just curious what you're looking for in terms of attach rates where they are today for what used to be one-time revenue.

不管怎樣，我只是好奇，對於過去的一次性收入，你所尋找的附加率是多少。

And if you were to kind of compare that and how that's changed over the last year or two, overall.

如果你對此進行比較，你會發現總體而言，過去一兩年內它發生了怎樣的變化。

Yeah, I mean we're seeing a nice uptick after a lot of years of hard work.

是的，我的意思是，經過多年的努力工作，我們看到了良好的成長勢頭。

Both on the -- I think the customer and product facing side.

我認為，無論是面向客戶還是面向產品。

And quite frankly, as much on the back-office side, we're starting to see the beginnings of the strategy playing out.

坦白說，在後台方面，我們開始看到該策略初顯成效。

We're having over 50% attach rates on our key products, where we're trending towards much higher than that in certain segments of our cellular router group, for example.

我們的主要產品的配售率超過 50％，例如，在我們的蜂窩路由器組的某些細分市場中，配售率趨勢遠高於這一水平。

So we're very optimistic that we're going to see a continued increase in attach rates.

因此，我們非常樂觀地認為我們將看到附加率持續上升。

We have a new leader in Opengear.

Opengear 有一位新的領導者。

There's a set of solution packages that are being worked on inside of that business that we think that will increase the take rates there as well of solutions.

該業務內部正在開發一系列解決方案包，我們認為這些解決方案的採用率也會提高。

So we're very optimistic.

因此我們非常樂觀。

We can continue this momentum.

我們能夠繼續保持這股勢頭。

Appreciate it.

非常感謝。

Thanks, guys.

謝謝大家。

Thanks.

謝謝。

Thank you.

謝謝。

At this time, I would now like to turn the conference back over to Ron Konezny for closing remarks.

現在，我想將會議交還給 Ron Konezny 作結束語。

We plan on attending ROTH 37th annual conference for growth companies in Dana Point, California on March 17.

我們計劃於3月17日參加在加州達納角舉行的ROTH第37屆成長型公司年度會議。

We appreciate you joining Digi's earning call and for your continued support.

感謝您參加 Digi 的財報電話會議並感謝您一直以來的支持。

Thank you to our customers distributors, suppliers, and to our exceptional Digi team.

感謝我們的客戶經銷商、供應商以及我們出色的 Digi 團隊。

Have a great day.

祝你有美好的一天。

This concludes today's conference call.

今天的電話會議到此結束。

Thank you for participating.

感謝您的參與。

You may now disconnect.

您現在可以斷開連線。