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Digi International Inc. (NASDAQ:DGII) Q2 2023 Earnings Call Transcript

Digi International Inc. (NASDAQ:DGII) Q2 2023 Earnings Call Transcript May 6, 2023

Operator: Good day, and thank you for standing by. Welcome to the Digi International second fiscal quarter earnings call. [Operator Instructions]. I would now like to hand the conference over to our speaker today, Jamie Loch, Chief Financial Officer. Please go ahead.

James 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’ve posted a shareholder letter this morning as well. 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.

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

Ronald Konezny: Thank you, Jamie. Good morning, everyone. Before we jump into Q&A, just a few highlights. We are excited to deliver our ninth consecutive record quarter, which is especially gratifying in a volatile and seemingly ever-changing macro environment. With $100 million in quarterly revenue sustained, we are confident we will capture the remaining of our $100 million objectives, annualized recurring revenue and annualized adjusted EBITDA. With a large and growing industrial Internet of Things market, Digi has the potential to build and extend our leadership role as a premier solution provider for business and mission-critical applications. At this time, I’d like to turn the call back to the operator for our questions-and-answer sessions. Thank you, operator.

Q&A Session

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Operator: [Operator Instructions]. Our first question comes from Tommy Moll of Stephens, Inc.

Operator: Our next question comes from Scott Searle of Roth MKM.

Operator: Our next question comes from Anthony Stoss of Craig-Hallum.

Operator: Our next question comes from Derek Soderberg of Cantor Fitzgerald.

Operator: Next question comes from Mike Walkley of Canaccord Genuity.

Operator: Our next question comes from Harsh Kumar of Piper Sandler.

Operator: [Operator Instructions]. Great. Thank you. I would now like to turn it back to Ron Konezny, Chief Executive Officer.

Ronald Konezny: Thank you, Karen, and thank you all for joining Digi’s earnings call and for your continued support of Digi. For investors, we will be attending Craig-Hallum’s 20th Annual Institutional Investor Conference on May 31 in Minneapolis. Have a great day.

Operator: Thank you for your participation in today’s conference. This does conclude the program. You may now disconnect.

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