DGII - Earnings call transcript Q3 2021

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Operator

Good day, and thank you for standing by. Welcome to the Digi International Inc. Q3 2021 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Jamie Loch, Chief Financial Officer. ahead. go Please

James Loch

Good us Joelle. quarter and you thank of Thank to afternoon, discuss joining today International. third the for Digi you, everyone, fiscal results XXXX

and is Joining today's and financial I the thoughts Ron performance. CEO. with business, Ron follow of Konezny, on me our will call our highlights on will his provide President our

closed Following release shortly earnings We issued today. Instructions]. our [Operator our prepared remarks, we'll take the questions. market your after

to Now I'll call over Ron. turn the

Ronald Konezny

Digi digit International's our Yet record to third year's you, fiscal revenue, call. welcome Thank revenue most Jamie, and earnings XXXX another which quarter and headline results results. recurring annualized is over quarterly recent record up double last

over leader, IoT SmartSense, In XX,XXX a addition, to solutions had quarter building record our subscribers. their base customer

the to second in cash, positioning into $XXX of nearly also team Ctek We position our in us $XX for Digi acquisition million the cash nearly We the net closed activity. bringing family. bringing further million, well our generated year acquisition

base market. to to compress opportunities, showing bookings Our industrial risk customers looking they ideal for solutions reduce effective backlog. those with is Increasingly, transformation. customer is partner get and and and is time, are an Digi which digital their record accelerating

growth for even and if been our have chain could results impacting Our electronics it widely were our and combined higher rates better that transportation restraining friction are not with known margins. challenges, supply semiconductor costs and

persist them are XXXX. We challenges, to into these expect but fighting through

We needs. customers will meet to continue prioritize our to critical their

lines the our with our business. led take a million expect segments. grew business lead X% and A driven segment over across of few heading comments enhanced improved record bookings, device which into over to console fiscal cellular quarter, had by rates quarter-over-quarter, The our $X we on $XX revenue growth product grew IoT to All QX. new management over of a and each Products exception this software products. server router nearly business will cellular-enabled Opengear, record business Now of this our the year-over-year. Services results attach of million our Recurring time. contributed backlog

with quarter million addition, furthered automation record a In team launch record and a edition. customer of business enterprise booked Solutions OEM the during the had $XX their Lighthouse in quarter. the focus

signaling the attack addition, LoRa of partnership Cellular business, team with integrating this Ctek contribution. channel growth received its in return is vertical's continued launched Infrastructure industrial smart our its water In like Management which kits potential development verticals management. propel cities as orders the will and we health its and growth into further partners. year-over-year in

We continue to bundle hardware world-class to offer compelling propositions. with and XX/X support software cloud value reliable secure expert leading

business revenue recurring consolidation our and our on subscribers. annualized will recurring strong Solutions approach the SmartSense, last These customer-centric attach customer that team showing improve $XX nearly over features continues added a digital our customers released We as services North of XX% value quarter portals our increased to IoT SmartSense grocery XX,XXX reports annualized metrics the segment. and and healthcare X,XXX to remains the attract area X, Solutions per the and over new and market growth and cloud continues subscriber orientation. increase million we multibillion-dollar now IoT this interface this mobile is healthcare our customer subscribers to key enhanced partner over approximately verticals. driven Star than opportunity. the their Customer subscribers quarter, as SmartSense, Our we Foodservice installed of by XX,XXX experience. our in a grocery at result launch focus, total be our platform improve the average customer underpenetrated quarter bringing to added reporting strong revenue and in year a a are represents XX% over XX% or growth ended and revenue base. sensor base base. customers. of management show with in brand be This customer task and next-generation our we destination and service higher and tools lead and of an to the Bluetooth in month our of The offering.

business. We XX% time $XX million our now from take value recurring services solutions will we level, the heavily revenue some granted of both year million the last notable company, entire products our is customers. of the not to our across for the reducing the and annualized for corporate IoT At IoT investing last in achievements. up have quarter. We in from position over demonstrating leadership and growth in prominence software This and are and have $X increasing offering the and

Our our showing putting we double are disciplined costs, freight but supply commitments, time to and active our remains customer customer and much commitment chain in meet our higher is capital partner working at pipeline times success. The many acquisition robust, component and use. team to

offer the have to profitability both positions. We and more value while customer revenue building recurring our potential

Delta urge the been the help themselves to vaccine Digi is to available, causing COVID others. and everyone flexibility and of the pandemic team. variant by While remained commitment more get the have and vaccines the I effective of odd disruption. I

the and call detail my on more turn to A We teammates. rise thank financial challenges to over to the occasion. for heartfelt Jamie continue now I face our will unique you to performance.

James Loch

GAAP of adjusted basis, EBITDA or $XX.X such in an normalcy. the as the a to record and diluted was afternoon, highlights million of XX.X% set ARR. companies represents good records, to Today, exception, our so to $XX.X for margins, EPS our start our financial spread macroeconomic diluted our quarter, per challenges excluding of over on adjusted margins as extremely quarter. Gross XX.X% supply the and for the this dynamic revenue. EPS deliver and $X.XX chain the continues share. as freight disruption many million Delta On to the were that and conditions, Digi to high everyone. of beat the record quarter revenue, of were of a and for path growth the guidance. the $X.XX, global quarter. felt being and quarter causing no Revenue, global by EPS all per share face key were Ron, revenue, year. of Thanks, record end XX.X% consensus customer organic results was we contributed Digi global led the in I'll the XX.X% able We well amortization, variant our levels all adjusted estimates to fiscal was third the of non-GAAP record EBITDA Gross provided with at which delivered ranges prior was

we third prior highlights, generate value of prior Recurring in We've reached the revenue. is of annual revenue year strong Digi's financial XX% recurring continues in our from our will have products. overall 'XX. the and operating highs nearly year-over-year $XX.X indicator an XXXX fiscal cash increased from that maintain recurring quarter. in business year-to-date customers expectation foreseeable services nearly from Solutions for cash to million, record and in up our the We X.X% year-over-year year X% We flows, and of and nearly cash generated revenue positive flow future. increased other quarter Total million Among now revenue Digi our the X% prior from business quarter. operating continue XX% from the XX% $XX.X in $XX prior services Recurring some to fiscal receive products generate and million IoT quarter. in and

- positive fiscal which We position million. in works have million a net the $XXX.X of quarter $XX.X cash with cash, out to

new $XX.X at These stands on million. debt the the consider now on debt is leases, $XX.X classified ending of of what Our add do figures standards, million books. the now accounting will treatment which based as not

with in Other our with expect NER million, balance sheet reserves. to our sequentially covenants material no to from changes is down remain our in $X.X are position compliance. note, items facilities We fiscal compliance last million $XX.X and bank's of quarter

production $XXX,XXX not business performance margins but inventory fiscal health the increased revenue chain XX.X% $XX.X the levels for another impact embedded router, balance million our measurements XX.X%. solutions million, had ARR. fiscal including increased driven was million. distribution out offset for down Current console Gross to challenges. partially significantly server our for chain driven were for in operating decreased by freight excluding the year-over-year Gross That is quarter year-over-year million, operating record IoT added in The XP our console driven in $X.X as E&O Annual purposes that global product The quarter segment partially supply by by booking by books. is quarter, freight portfolios, supply million into primarily our to quarter revenue. ending services and expenses, mix increased prior basis million quarter. products rate margin segment X.X% product to third the reserves. and the the IoT The the by EBITDA favorable due income no sites items was among $X.X amortization, closely used costs XXX and the inventory increased are we for points margin. within revenue cellular Operating last fiscal $X.X year sequentially. is growth and of of quarter margins, channel back XXXX Solutions to in and $XX.X our challenges If sequentially with of and those adjusted recurring million. and for third embedded key server, portfolios. year-over-year are We increased down increase to from monitored sales for from performance, tempered to regularly. material end and $XX.X XX% $XX.X and and look Our

revenue overall an by Recurring quarter in $XX.X XX.X% year-over-year close apps, X.X% grew to delivering site margins, million a count XX,XXX. to X,XXX our key of recurring site Gross $XX.X to to excluding were site revenue and gross revenue, Our That's amortization, increased of third XX.X% the XX% quarter. the contributor year-over-year sequentially a in annual of a margin. nearly over for fiscal total approximately gross million. count revenue record number pushing XX.X% growth XXXX

quarter growth The year-over-year, loss invest a million. of $X.X for resulting continue of $X.X objectives million support performance in to $X.X IoT solutions. year to million We loss operating solutions the compared for to the prior the improved

Now as it relates to forward-looking guidance.

as our global last performance independent fourth of revenue potentially quarter midst the growing to for of that and supply supply our current execution is the fiscal ongoing We're confidence indicative having even and have providing the materials certain our noted challenges customer potential and impact results, we limit chain a in of to challenges freight we orders. demand. upper The allocation of follows. guidance As quarter, lead have pandemic. could not in

share. diluted QX million XX be shares, We approximately million million, we Using $XX expect $X.XX year-over-year our our and $X.XX providing between fiscal count per EPS X.X%. 'XX revenue of of expect share to $XX to growth of GAAP diluted

of and liquidity We missions, capital the EPS the please helping provides our position adjusted to in the expect and the and them performance Digi available concerns. share We're to be That We adjusted see your we with prepared to that in believe our provide with customers per particularly combined between pipeline instructions remarks. $X.XX $XX.X to time diluted questions. balance to EBITDA now to million. during our run between leading our our be take are global Joelle, callers. their indicators of value million $X.XX concludes sheet $XX.X our strong

Operator

[Operator question with Kumar Instructions] of a line Harsh Sandler. the have We from Piper

Harsh Kumar

to the costs the wanted leave of give the was ask margin. how they were constrained much supply much on. this and well could gross or Last particularly And environment. margins? freight pressure your you if first growing it put quarter? revenue curious, supply this and eye-opening an ARR and the That pressure question job in really on was executing quarter, I on normalized have much margin number. a the actually us what the Ron how is of because how you you It's cost, impressive was potentially did how I your quarter, didn't much if what normal idea freight world, Great were Jamie, behind

Ronald Konezny

components. we both components. have get contract more sometimes nice and we And voice. labor, a to friction your of there's Harsh, then supply still We're at challenges cost the chain then a question in when there's to with companies, transportation, ports pay the but like that those in just - oftentimes, also do, of be we're struggling terms really freight whether lot And good and for manufacturers. lot higher to it's or a of hear

down is about of look that up on it kind XX%, a it feel two So a the the way think we pretty about down margin cost percentage us $X this been probably you gives gross at inventory, And side. and flat inventory if or quarter. million. our is point until about you We've

as with a of can the view kind struggling our supply to give really challenges current chain did you as, for up quarter see last keep of and demand, the So these can baked we into as we we're that you point well quarter, guidance.

not we're to get expecting need. $X leaving the million get QX components we're the to our quarter the the just all in least table current customers so we're at of relief. of And able We revenue think of not on because

Harsh Kumar

So question is my reopening. next economy the was

You guys numbers bit curious, push I'm up maybe very your model. you're above have been to long-term here this. ask are was and well putting that little managing you through going a I

tough to you've so we sort basis been the and about performing in expect times? operating these So change because can model well when permanent of a on model

Ronald Konezny

at the at to be think chain XXXX. base, issues I wish fighting supply into I well and our look these our - going It's certainly supplier competitors, friends we exact I answer. look When we we're No. knew

going I improvement through our seeing like the we Now of there's potential there's think as to algorithm, day XXXX. additional guess causing we what's even for think statement, on variant land happen accelerate to quarters "normalize." got that here, more have for that a supply "normalized COVID? until start stimulus it baked are a of see a pressure next going going we've be the start we we're chain? to working you that into we with we'll a be get into to Are It to XXXX. see flow not might going to factors the lot have variants problems? starts to best into then mid-XXXX to So fight lot in until but that be hard few we're But environment." but going assumptions improving every that. for And And there is mid-XXXX this

Harsh Kumar

would a last That's SmartSense guys, know you big could fair, paint Ron. competitive the your And us my is, you get could maybe on picture for closed you, even paint I there's back anybody relative others? maybe in landscape. can for front? are that us with I'll question, you feel we the to love queue you of picture compete of but a the you remotely And to like educated are that if how big get

Ronald Konezny

early market. we're Harsh, the leader, it's although Yes. we We think - still an

ourselves granted. And leadership generally we take against want when to think little benchmark But from a different into invest probably more quite our so continue see We companies customer focused bit to we our and system and take a are that additional ourselves do XX,XXX competitors don't specific in competitors. again, our for position still sites size that we've success distanced We smaller, younger on that for got granted. We in - bit we X,XXX, markets. verticals. can't to expand and we

going think we're take still we've not we to but leadership for So got position, that granted. great a

Harsh Kumar

Is cloud side. managing SmartSense was offer another you chain? of hardware software enterprise the the and like anybody And capabilities on Ron, the on that that ask to you I there with temperature has respect could kind if front, that that

Ronald Konezny

do suite of They have with under Yes. but will for companies There's Harsh, our react piece customers, or provides and the to unique, stack. companies security third but of that piece. us for which for our incredible then hardware software We entire hardware a do more the lot software authority, complete that piece quickly the we that and the innovate the rely partner it. then inverse we're across one think design allows provide people on that other and parties might

advantage think we that's unique a SmartSense. and for So attribute

Operator

with is from Canaccord. question Mike next Our Walkley

Mike Walkley

senior dynamics change within that you're feel call. front in well router your do some positioning the on to the new maybe into business? it question. a your been Great. my And how business want any you Sierra your cellular that business. competitive overall Has Thanks could of line in Hope just lot I just some about like leadership dig everybody quite is benefit of putting been for Digi? some part of think Ericsson has shakeup. gateway Wireless there time. doing Cradlepoint of you Ron, taking for sounds management has Or there.

Ronald Konezny

of some hope industrial an your you. I and voice, we've it's think feel first side with Mike, we're And and and in share. nice We've the is not so everybody haven't The we - really. underperformed Mike, transit in some extent. changed Digi seeing Yes, really And opportunity all, leadership do to this healthy some much but and competitive got - new smart we're there's we improvement to fair that getting is strength the potential area an to We've cities, really with hear in have. more put in those think place. play, like that and safe do We can better. much to role our there's But some good we've real decided got a important we dynamics mass areas.

Mike Walkley

look I all know constraints. you in to double-digit its inventory strong up growth guys with But use supply to the to you more and the for supports if balance there Jamie, of build competitors from tough sheet impressive to in supply at terms demand you opportunity constraints? maybe growth? Is single-digit demand or tricky these your that just think then Jamie, cash ahead operations your put leading of you any of to Ron quarters. year-over-year that's maybe either continue supply do your put your And it's kind And up

Ronald Konezny

of will team we this don't - Why Yes. one. well, I and tag Jamie kind

grow over this did XX% growth. quarter with double we last First, digit

basis. to we sustained constrained. quarter, you a think chain we capable delivering certainly, look type are we're of absolutely so that's next supply And the on of And performance as

ask lead record positions challenges we using get time inventory. in particular past one because solid business triple with We're balance our the and the and inventory double customers. And really seeing on asked, well-known to periods taking advantage is the to record or bookings. they backlog. The sheet longer with recognize have times are That's our the are a is of people case. critical oftentimes have allocation. we they And But we the this components. not challenge bookings, in questions ourselves commit seeing We in than

that course, device only one, allocated much And if certain We critical can't components. we a complete over are XXX of our we're for have so customers. components, of missing may solution

the meet our of that exclusively fight to needs. allocation critical almost is around components getting So

we we're think absolutely double-digit consistent So capable of growth.

supply prioritizing and are are absolutely We we chain constrained, customers our first.

We are components But more the question. available. challenge. it the cost I'll is when they're for bearing increased availability We're a transportation and paying answer component let Jamie of freight. cash

James Loch

No, think in think I interested willing. be we'd - I Mike,

right. You're

We to continue trend period of That operating has extended on generate continued for an cash. time. strong

I we've So there. got think a chance good

the into I think willing into to utilize but that cash we'd do absolutely interested adding balances, of is allocation inventory tamping ability our be really that kind to and that.

Mike Walkley

to difficult me, I interested on. on there, environment business. others. Ron, the than it guys better know just question it's a for navigating and I'm be I'll pass and seem supply Last out you IoT Solutions

it's Just the to you a understaffed it's industry. hard-hit what stay Delta restaurant seeing also but harder reopened industry. the the call it in they hopefully, industry? been I know an extremely variant, are And

out. your improving maybe longer-term short that at help services given certainly restaurants your least staffed are opportunities, and these So just pipeline, of could how

Ronald Konezny

the nail Yes, on you've the Mike, head. hit

all seeing long As go I at a in and well a some but But labor we that To only more customers as eating listen, and stop. don't to cases. point, both by think servicing he we've are not and the or backwards as going as got toward out hopefully, either too of your I we've dining that's think also reopened takeout. our for and society, more, lot are business we trending won't increased challenges,

probably orders. So witnessed has restaurant, a a lot full but then cart of with takeout us a small

critical. has been So the the tasks, to ability understand ability to automate routine more performance never

more seeing accelerate - interest do things entertaining to on tons parties trying transformation relying third and demand, in of people efforts we're and the So themselves. than digital

offering and well so the particular of And taking portends really that for SmartSense advantage market that segment.

Operator

with Stoss Craig-Hallum. Anthony from comes question next Our

Anthony Stoss

me bit any Just Ron, share it September, motors, range to allocations component continuing to you're guiding it XXXX. June through you're Or gross your to of revenue following more I me And next maybe related rationale, that Ctek that seems be shortages the there know comments similar the get the profile, could the as on kind only up, be and middle trying margin all of that love to the for you if you'd I'm probably anything would of then Ron, comment about help and until and wrong I'd helpful. hear in to the year? but quarter channel little maybe, well? acquisition, willing about light a the

Ronald Konezny

listen, enough to how your our challenges the Yes. a Tony, hear can't voice. last quarter's and I performance. well supply difficult very environment. chain supply extremely dynamic. And really of good for to predict. chain and name results, are project measure It's And one that team complement in difficult I so think, are performed they've

will workers think frontline this the and wearing turn But with year. our It through improve. it feel the improve safe we and shifts more rest done, of they're to healthy like working going lot will and said do at than a We mask of gradually. the and all of lot a starts and in team. that Digi addition In the staying really

fighting, not gates be do to Tony, but probably. to going XXXX. year think, the improve more hold flood It's I serve an think through we're open So things here, It's gradual. probably this I in

think throughout I you be demand. So But of overall will improvement short it from a XXXX. sequential us can fiscal expect our our

configure to devices working be supply customers accommodate with very to the meet solutions our make our sure going to chain. needs to everything their with hard we we're and that do and So possible

extra management has is Ctek Ctek what really that They a add key to On into step us. time, and question, very does a our a Digi have we're proposition. to value Ctek element the excited it long of join monitoring. job control. remote the team makes for And done great

But say, a a example, level environment. don't tell the or a gate our for a actually that devices to lot And in of water have particular of you, on extra will pump. open ability then so turn

Ctek technology monitoring really And into pushes us control. so the beyond

we're offerings been So had technology and and of success what's channel to expand on great their advantage with broaden they've expose of a the customers team our to only a our excited limited not focus that partners resources but really really Ctek on into really bring family take their set and appeal. and

Operator

comes next with from Our question Schmidt Jaeson Street. Lake

Jaeson Schmidt

my Thank for you taking questions.

well-known the curious, for challenges given Just chain, getting just supply out there programs the timetable pushed in indefinitely. or have you customers seen your just designs any from

Ronald Konezny

It's and your interesting, everybody And in Jaeson. to world. safe is first, hear great voice healthy hope your and

consider Our is the alternatives. working stay picture option with any customers when have at you obviously alternatives that not us to the is to look challenge are or rosier. with other The us other

hitting best of us business and sure best focus versa line kind ultimately any is really allocation their their and making they're with help So to objectives not for to unlock choice possible. to is the application. down their work on vice us in And

the we're periods as their certain commit allocation say, demand in much booking past, not willing twice been time longer to as period. of demand in So a took they the have rather seeing than, is they're

their able to for work needs we with for to to their us our can. as to and meet help date, and So customers best likewise help advocate been we've promote needs quantity

Jaeson Schmidt

still goal down looking three Okay. be sites quarter? the Or shifted need that slightly, Solutions IoT to just does to business, the to the kind And of is add at per just there, dynamics four everything? given then given out

Ronald Konezny

absolutely added and X,XXX you're right. last in we're quarter, rate that so No, about No. sites wheelhouse, continue determined our progress. We to that's

adding value. subscribers that the scripted not adding As saw really I mentioned my in higher at we them a only but comments

revenue faster value than customers. real grow environment. And subscriber adding more to a healthy we're base, our recurring our so you're is seeing stream and delivering which capabilities that means That more

that's is on to understanding a an we quarter want that that average Jaeson, per still range So accurate basis. in

Operator

Our with from ROTH next Searle question comes Capital. Scott

Scott Searle

late. little the Good on call Ron, I bit my afternoon, got thanks apologize. for a questions. I Jamie, taking

So wanted couple then I clarify I and of had couple just a to of things follow-ups. a

number quarter. First, off supply capping of September thought I million quarter. about issues, a it believe heard the terms I I in September just the $X was chain

clarify for you to if what for it that in of number to if wanted book-to-bill. related book-to-bill gave number? supply that. clipped constraints. Just June And I an a know the record a you terms had sounds Wondering gave I you quarter number like absolute don't

Ronald Konezny

Scott, these earnings that tough for I it's joining. know calls. thanks balancing for all different

you joining. provided. clarify, million September quarter, we the of $X current we capture that guidance quarter, for not the we're thank said to So to we And able yes, like in feel least inside at that

in quarter, as previous Inventory our million. we the $X about challenges On characterized our - or relation to XX% went inventory down position. position

you generally you gives little that pretty a shows That quarter. a inventory been what a So bit feel because the we've holding flat. about we had challenge last delivering

of all you of challenges on the opportunity. our some a delivering gives feel And so for that

a did provided We have book-to-bill bookings, ratio. triple-digit we've a Scott. haven't and record We backlog, got

you with little the we're gives on seeing we're up that having it. and keeping context a So challenges demand some of of the kind

Scott Searle

going able that in on be given because of strong another was of range, bit or are it you could, I'm I the gateways guidance very to mixed Perfect. flattish had if Opengear into and to some this from forward? standpoint. a out is you now routers of it's is to And of customers that, sounds color like these And did It like cellular you terms in incremental pass constraints I seems the Very think pricing give that numbers, to helpful. in little quarter, of And as continue area? margin on I'm the it macro sure, decent implied to terms it's back looks and quarter a a could if in question. provide margin some costs I the well. How that up the take. holding it's great in quarter Are going gross job wondering like there. on a gross your front, the protect then

Ronald Konezny

a it's question. Scott, good really Yes,

well as our the due freight, quarter increased September we made probably for margin the the as earlier gross the that's of leaving the here. of quarter. was also And basis One reflected on and XXX cost guide in to current in XXX to table June components the both comments of points we're performance

a taking side So disciplined the modest very to we've that done we're longer our have gives But you price our date, certainly price been a with and address businesses view we feel very, And customers. price some on customers' and increasing disrupt very have been on kind unduly costs for product we but absorbing. lines. speaking, careful this. really are on to increases, not challenges the that to generally not certain There we've on of

Scott Searle

if I wondering if are of frequencies, I XG some There's to shifts going demand color lot there. in provide the lastly, deployment around CBRS some characteristics of the that XG of migration, And adoption on you of just terms could private a to could, technology was out network.

could wondering such where seeing any us had front, color in you the little you've Smart bit as on what of of the the past or some of was maybe networks I verticals if big areas Cities. private in a you're terms wins give So demand XG in CBRS

Ronald Konezny

in Thanks, industrial the Scott. Listen, our world. world is

than deliberately to segments tends base bit out there. other move more a customer our So little

when now, there's improvement, multi-geo XG challenges at deployment. look versus and about of times some you of performance ton right coverage talk multisite, a not there's If XG, lot a you a

of on its of important is does and it's a more would So going eventually CBRS the ubiquitously. CBRS to we our say a a in part it more available to XG bigger those XG, part To terms much business. hasn't huge partners more an our in It's of important particular business. both at our is and sector with well, the performance are financial impact working in Again, be part date, thing. job point, stage come. of been as an of our some and this and Scott, private network pilot is economy. I this on deployments. more yet we're disciplined deliberate, it

and tends it's done, it to the all pieces. us. said some very, important so very MNOs, But like that carriers not boom with And important that's to but bust to important, other the

Operator

from a have the Piper Harsh Kumar We question Sandler. of line with

Harsh Kumar

look you you for? acquisition what's could want for most your And looking that go when target to you're the talk a you likable strategy. was acquisition? what do I you for about curious about an What How determine if thing pay? you do

Ronald Konezny

our or product Ctek Yes. that scale them and one had capability of Thanks, the we really that tucking to ecosystem been These Haxiot structure, of of are of this a is our can we've think and line. Digi leader acquisitions barbell. acquisitions. The small existing key we into organizational prior year, technology end a Harsh. inside an They indicative which done the have inside

strategy earlier money our the was The other acquisitions. transformative is year raise to larger, of this part end of more barbell, which

We disciplined. are very

allow us too EPA to get Our doesn't Midwest, nature crazy.

we're And equal of revenue for so that position. are improving of we are that spending on amounts side on opportunities that dramatically also side, the our recurring looking bigger things. And time are accretive

recurring ability value the a so kind to have look cellular model. of Almost for. particular to this subscription-oriented and have to and that look And those we everything going are and the for wireless attributes unlocks we business is it thread

are those us, Harsh. priorities So the for

Operator

concludes Q&A final this session. And remarks. to Ron back his turn I you. Konezny it would to for like Thank our

Ronald Konezny

you our with and confident in offerings everyone focus joined more Record our today. have demand We're supply customer and and COVID imperative. thank our that Digi's for combined call results proud you, chain challenges Thank made to our future. even of

the Conference September Investor Colliers the safe We will Growth and In on X. investor August virtual staying holding Canaccord Conference and healthy. meantime, be XX the meetings on at

Operator

disconnect. this call. now concludes today's Thank you may And your Thank you. And participation. for conference you

Digi International (DGII) 7 Aug 212021 Q3 Earnings call transcript