Digi International's stock dropped after strong Q4 earnings but lower Q1 2025 guidance.

Digi International reported stronger-than-expected Q4 earnings but provided lower-than-expected Q1 2025 guidance, causing its stock to drop. The company saw a 400 basis point increase in gross profit margin to 61.1% and a net income of $12 million, up from $6 million in the previous quarter. Despite a slight decrease in full-year net income to $23 million, Digi highlighted increased customer trust and a focus on IoT solutions, with a 9% rise in Annualized Recurring Revenue to $116 million.

November 13, 2024
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