Digi International Inc. (DGII): history, ownership, mission, how it works & makes money

A Brief History of Digi International Inc. (DGII)

Founding and Early Years

Digi International Inc. was founded in 1985 in Minneapolis, Minnesota. The company focused primarily on providing connectivity products and services for industrial automation and network infrastructure.

Public Offering

In 1994, Digi International went public, with its initial public offering (IPO) priced at $14 per share. The company raised approximately $10 million in its IPO.

Acquisitions and Growth

Over the years, Digi has made several key acquisitions to expand its product offerings and market reach:

• In 2008, Digi acquired Ethernet and Serial connectivity products from NetComm Wireless Ltd..
• In 2011, the company purchased IC Intracom, enhancing its capabilities in wireless solutions.
• In 2019, Digi acquired OpenGear, a maker of console management solutions.

Financial Performance

As of the fiscal year ending September 30, 2022, Digi International reported the following financial highlights:

Market Position and Innovation

Digi International focuses on the Internet of Things (IoT) and has developed various products such as:

• Digi XBee - a versatile wireless module for IoT applications.
• Digi Connect - a solution for remote management and access.
• Digi Remote Manager - a cloud-based platform for device management.

Recent Developments

In 2023, Digi International reported a 30% year-over-year growth in revenue for its IoT solutions segment, emphasizing its commitment to being a leader in the connectivity space.

Stock Performance

As of October 2023, the stock price of Digi International Inc. (DGII) is approximately $19.50 per share, reflecting a market capitalization of about $550 million.

Sustainability Efforts

Digi International has made strides in sustainability, committing to reducing its carbon footprint by 20% by the year 2025.

Global Presence

The company has a global footprint, with operations in North America, Europe, and Asia, catering to various industries including:

• Transportation
• Healthcare
• Energy
• Manufacturing

Conclusion of Historical Growth

Digi International continues to innovate, adapt, and grow in the evolving technology landscape, driven by its focus on connectivity and IoT solutions.

A Who Owns Digi International Inc. (DGII)

Current Ownership Structure

Digi International Inc. (DGII) has a diverse ownership structure with various institutional and individual investors holding significant stakes in the company. The following table outlines the latest share ownership as of September 2023:

Major Shareholder Information

As of the latest financial reports, the top institutional investors have been actively managing their holdings in Digi International Inc. The following list outlines the top five shareholders and their respective ownership details:

• The Vanguard Group, Inc. - 9.50% ownership
• BlackRock, Inc. - 8.80% ownership
• Dimensional Fund Advisors LP - 7.10% ownership
• State Street Corporation - 6.50% ownership
• Kevin C. K. McCarthy (CEO) - 1.80% ownership

Recent Share Performance

The stock performance of Digi International Inc. has shown fluctuations that reflect market trends and investor sentiments. The following table demonstrates the stock's performance metrics for the fiscal year 2023:

Recent Financial Performance

Digi International Inc. has experienced varying financial performance metrics. The latest financial results for the fiscal year ending June 2023 are summarized in the following table:

Investor Relations

Investors interested in Digi International Inc. can access detailed reports through the company’s investor relations page. Recent activity indicates strong interest from both institutional and retail investors, as highlighted in the following list:

• Last Annual Meeting Date: May 2023
• Next Quarterly Earnings Report: November 2023
• Investor Contact Email: investors@digintl.com

Digi International Inc. (DGII) Mission Statement

Overview of the Mission Statement

Digi International Inc. (DGII) aims to deliver best-in-class solutions that drive innovation in the Internet of Things (IoT) and connectivity markets. Their mission statement emphasizes commitment to customer success, continuous improvement, and delivering high-quality products and services.

Core Values

• Integrity: Establishing trust through transparency and ethical practices.
• Innovation: Fostering creativity to deliver cutting-edge solutions.
• Customer Centricity: Prioritizing customer needs and feedback.
• Collaboration: Working together across teams and disciplines.

Financial Highlights

As of the fiscal year 2022, Digi International reported key financial metrics that underpin its mission to deliver value to stakeholders:

Strategic Goals

Digi International's mission is supported by strategic goals that include:

• Expand market presence in the IoT sector.
• Enhance product offerings through ongoing innovation.
• Increase customer satisfaction and retention rates.
• Drive operational efficiency to improve profitability.

Recent Developments

In the latest quarter, Digi International reported a year-over-year revenue increase of 15%. They also launched a new product line targeting smart city solutions, which aligns with their mission to innovate and meet evolving customer needs.

Customer Impact

According to recent customer feedback surveys, over 87% of Digi's customers expressed satisfaction with the company's products and services. This high satisfaction rate supports their mission of prioritizing customer success.

Market Position

Digi International has a strong foothold in the IoT sector, achieving a market share of approximately 12%. This positions the company favorably against competitors and showcases the effectiveness of their mission-driven approach.

How Digi International Inc. (DGII) Works

Company Overview

Digi International Inc. (DGII) is a leading provider of Internet of Things (IoT) connectivity products and services. The company specializes in developing hardware and software solutions that connect devices and networks, aiming to optimize operations across various industries.

Business Model

Digi operates on a subscription-based model as well as traditional product sales. Their revenue streams include:

• Hardware sales: comprising routers, gateways, and modems
• Software services: IoT management platforms and analytics
• Connectivity services: cellular and satellite communication options
• Maintenance and support services

Financial Performance

As of the fiscal year 2023, Digi International reported the following financial metrics:

Market Segments

Digi targets several key industries, including:

• Transportation
• Utilities
• Healthcare
• Smart cities
• Industrial automation

Product Offerings

Digi's product line includes:

• Digi XBee: A family of wireless communication modules
• Digi Connect: Cellular routers and gateways
• Digi Remote Manager: Device management platform
• Digi Asset Tracking: Solutions for real-time location tracking

Research and Development

The company invests heavily in R&D. In 2022, Digi International allocated approximately 10% of its revenue towards research and development efforts.

Strategic Partnerships

Digi has established partnerships with various tech companies to enhance its IoT solutions. Recent collaborations include:

• Allied Electronics for distribution
• AWS for cloud integration
• Microsoft for IoT solutions

Stock Performance

As of October 2023, Digi International's stock performance metrics are as follows:

Global Presence

Digi International operates globally, with significant market presence in:

• North America
• Europe
• Asia-Pacific

Customer Base

Digi's customers include:

• Large enterprises
• Small and medium-sized businesses (SMBs)
• Government agencies
• Developers and system integrators

Future Outlook

Looking forward, Digi International aims to expand its market share in the IoT sector. Analysts project a compound annual growth rate (CAGR) of 15% for the IoT sector through 2027.

How Digi International Inc. (DGII) Makes Money

Revenue Streams

Digi International Inc. generates revenue through several key streams, primarily characterized by its focus on the Internet of Things (IoT) solutions. As of fiscal year 2023, the company reported total revenue of $446 million.

• Product Revenue: $306 million
• Recurring Revenue: $140 million

Product Revenue Breakdown

The product revenue encompasses various segments of Digi's offerings:

Recurring Revenue Sources

Digi's recurring revenue primarily involves subscription-based services:

• Managed Services
• Data Plans
• Software Subscriptions

Geographic Revenue Distribution

The geographical breakdown of revenue highlights the company's market presence:

Market Segment Contributions

Digi operates in several market segments, contributing differently to total revenue:

Investment in R&D

Digi has consistently invested in research and development to enhance its product offerings, with R&D expenses amounting to $35 million in fiscal year 2023.

Stock Performance

Digi’s stock price has seen fluctuations over the years, with a closing price of $22.04 as of October 2023.

• Market Capitalization: Approximately $813 million
• 52-Week Range: $17.71 - $25.33

Financial Highlights

The financial health of Digi International includes the following key metrics: