As we launch into the New Year, it’s a great time to reflect on achievements during the past year and shed light on how to build upon our successes. Our #OneDigi team is already hard at work tackling our customer-focused innovation goals for the year ahead. Let’s take a quick spin through the highlights from 2024, as well as our outlook for 2025.
Digi’s Customer Focus Delivered Solution Success in 2024
Customer focus is one of our core company values, and one that drives our vision, our innovation, and everything we do day-to-day. Our roll-up-our-sleeves problem-solving mentality leads our customer conversations and help find new and innovative ways to simplify their road to success and accelerate their ROI.
As a testimonial to the importance of these efforts, we grew our business and acquired exciting new customers that are driving critical metrics for their organizations utilizing the breadth of Digi’s offerings. These include customers from a range of vertical industries, using Digi solutions from across our business units such as our cellular and infrastructure management divisions, whose solutions support industrial organizations, critical infrastructure, transportation and information technology systems, as well as OEMs utilizing Digi embedded systems and Wireless Design Services for a vast range of complex products and solutions. These new customers include financial institutions, green energy companies, lottery providers, agriculture organizations and many more.
Here are three stand-out customer successes from our SmartSense by Digi organization, which delivers data-driven monitoring solutions to support IoT automation, prescriptive workflows, and productivity to improve food safety, worker safety and logistics management through real-time insights:
Lowes Foods: This regional grocery operator in the Southeastern U.S. selected SmartSense as its food safety monitoring solution for asset management, temperature monitoring, and proactive alerting. Upon implementation of the solution, Lowes Foods improved operational efficiency, including improvements in asset health, loss prevention and customer outcomes. See the video testimonial.- Legacy Community Health: This healthcare organization on the Texas Gulf Coast needed a new monitoring system with reliable data loggers, and SmartSense came out as the winner. During the trial period, the Legacy team tried to get SmartSense devices to fail and repeatedly tested them in the spots where the previous solution had continually failed, but the SmartSense remained constant connectivity, even in the toughest of locations. The solution has lightened the Legacy team’s workload and helped streamline their operations. Listen to the staff share their story in this video.
- Aero Logistics: This asset-based service provider supports cold-chain needs for freight and airline services and is trusted to handle and transport condition-sensitive products for its customers. SmartSense helps Aero Logistics empower employees with easy-to-use compliance tools, exceed customer expectations with complete visibility, and meet KPIs for safety, security, and productivity. Watch this video to hear their story.
Digi Delivered New Product and Service Innovations in 2024
Over the past decades, Digi has transformed to become a leading IoT solutions provider, building on its incredible journey and legacy of being focused on high-performance hardware and software systems. And these initiatives took some enormous leaps forward in 2024.
Here are some of the key milestones we achieved throughout the year.
Digi 360 and Digi LifeCycle Assurance
It’s no longer enough to provide products that intelligently connect machines and devices for remote communications, automation and insights from the network edge. Many organizations today want faster time-to-market and time-to-ROI. Or they want IoT simplified, so there are fewer steps and less on-site technical expertise to deploy IoT in the field. Many simply do not have the time or engineering resources to configure and integrate the many different components that come together to successfully connect systems and light up their networks.
Digi gets it. We’ve been listening to our customers’ pain points and solving them via complete solutions that offer streamlined planning, provisioning, deployment and remote management, as well as support services — all with high reliability and a long service life.
In 2024 we launched two new solution initiatives:
- Digi 360: This is a comprehensive package for cellular customers, including purpose-built routers, software and services — including Digi Remote Manager® — to help organizations optimize their IoT investments and maximize ROI. These complete solutions are designed to simplify IoT complexity, and ease the challenges enterprises face in configuring, deploying and managing their IoT initiatives
- Digi LifeCycle Assurance: Like Digi 360, Digi LifeCycle Assurance provides a comprehensive package that includes devices, software and services, but in this case covering three product families in our Infrastructure Management portfolio: Digi AnywhereUSB ® Plus, Digi Connect® EZ and Digi Connect® IT. Digi LifeCycle assurance reduces complexity and offers reliable and scalable solutions to safeguard critical systems and provide seamless connectivity.
New Product Introductions
Digi International continues to lead in innovation, consistently launching products that address diverse connectivity needs. From advanced system-on-modules and wireless communication modems designed for embedded OEM applications to comprehensive networking solutions tailored for enterprise, industrial, and transportation sectors, Digi delivers next-generation technology to support reliability, scalability, and security for mission-critical applications.
Our new product rollouts in 2024 included:
- Cellular solutions:
Digi IX40: Digi IX40 is a complete, purpose-built, industrial edge computing solution for Industry 4.0 applications. Offered under a single Digi 360 SKU with software and services, it provides the 5G connectivity, edge intelligence, and real-time processing you need for a range of industrial automation use cases. These include smart manufacturing, predictive maintenance, asset monitoring, and advanced robotics. Learn more in our blog post and eBook.
- Embedded systems:
- Digi XBee® 3 Global LTE Cat 4 modems: The new Digi XBee 3 Cat 4 smart modems offer the easiest way to integrate higher bandwidth cellular connectivity into a device or IoT gateway. These pre-certified modems accelerate time-to-market for OEMs, and are easy to manage with Digi XBee Studio® and Digi Remote Manager®. Learn more in our blog.
- Digi ConnectCore 91/93 system-on-modules: This scalable family, based on the NXP® i.MX 91/93 application processor, is a secure, integrated system-on-module (SOM) platform with dual-band Wi-Fi 6 and Bluetooth 5.4 wireless connectivity. As with all Digi ConnectCore SOMs, Digi ConnectCore Cloud Services, Digi ConnectCore Security Services and Expert Support provide additional capabilities for development, deployment and maintenance.
- Digi ConnectCore® MP1 system-on-modules: Digi ConnectCore MP1 is an intelligent, wireless and secure embedded system-on-module based on the STMicroelectronics STM32MP1 MPU family, with Linux support in the robust Digi SMTplus standard form factor.
- Digi ConnectCore® MP2 system-on-modules: Digi ConnectCore MP2 expands the family with a versatile, secure, wireless system-on-module with NPU and ISP for edge AI and computer-vision applications, as well as complete Linux support in the Digi SMTplus form factor. Learn more in our blog.
- Opengear:
- Infrastructure management solutions:
- Digi Connect® Sensor XRT-M: A newly redesigned sensor connectivity solution built for challenging industrial environments, Digi Connect Sensor XRT-M replaces the longstanding Digi Connect Sensor Plus and is easily managed with cloud-based Digi Axess.
- Digi Connect® EZ 4 with PoE: A new variant with PoE (Power over Ethernet) to support deployment in environments where a power source is not readily available and the Digi Connect EZ device needs to be powered over 802.3af Power over Ethernet.
Enhancements, Certifications and More
We continually enhance our existing portfolio to meet our customers' requirements, while ensuring our solutions serve our ever-growing list of vertical industries and use cases. To this end, we added enhancements to many of our solutions and achieved new milestones with critical features and compliance across our #OneDigi organization in 2024.
Here are some highlights:
- Digi rolled out continual improvements to the Digi Accelerated Linux operating system (DAL OS) and Digi Remote Manager® (Digi RM), the management platform that helps organizations manage configuration, deployment, and system-wide security and firmware updates for their deployed network. See this blog post for recent updates to DAL OS and Digi RM.
- Our infrastructure management team announced Linux and enhanced windows support for Digi AnywhereUSB Plus. AnywhereUSB Plus — one of our longest standing and most popular solutions — and Digi AnywhereUSB Manager now offer broad support for multiple Linux distributions, including headless operation, providing greater flexibility for Linux developers and system integrators. Additionally, new enhancements to Microsoft Windows support ensure seamless integration and usability across different environments. Learn more in our blog.
- We expanded use of AI tools across the organization to increase innovation and productivity. Our developer teams created an internal goal of 25% of our code written/reviewed by AI. We are also using AI in technical support as an enhancement to our customer service, and we are facilitating AI at the edge through product and software development.
- SmartSense by Digi achieved SOC 2 Type II compliance — a milestone that highlights a commitment to safeguarding customer data and enabling customer success across regulated industries. Other Digi organizations will follow suit in 2025.
- We announced T-Mobile certification for Digi Connect® Sensor XRT-M, marking a significant milestone for Digi that enables the provisioning of reliable and enhanced remote monitoring solutions to T-Mobile customers.
- Additionally, Digi joined the T-Mobile Partner Plus Channel Subsidy program. As part of its ongoing commitment to helping businesses transition to 5G cost effectively and with ease, Digi’s EX50 5G, TX40 5G, and IX40 5G cellular routers are available now under the T-Mobile Partner Plus MSRP via distributors TD SYNNEX and Ingram Micro — reducing the initial cost of 5G equipment.
- In addition, we achieved ISO certifications in our supply chain and expect to achieve IS027001 in Opengear.
Behind Every Successful Solution, Customers Need a Thriving Provider
And at the end of our 2024 fiscal year, Digi announced a new record ARR (annualized recurring revenue) of $116M — an increase of 9% and now 25% of our total revenue. ARR, our highest priority, is our measure to assess how Digi is creating value in providing solutions for our customers to achieve their critical priorities. We successfully defended our IP by invalidating Airgain’s Nimbelink IP claim, proving to customers we stand by our technology. In addition, we have adopted AI to improve technical support and improve the productivity of our engineering and marketing teams. “Resilient execution in a large and growing Industrial Internet of Things market provides confidence we will grow ARR and Adjusted EBITDA to $200 million within the next four years on an organic basis,” Digi stated in its fiscal 2024 year-end press release.
Digi Added New Members to Our Leadership Team and Nominated Two New Board Members
Digi welcomed four dynamic leaders to its team in 2024 to drive continued innovation via product strategy, as well as accelerated growth and increased annual recurring revenue:
Patrick Quirk, Senior Vice President and General Manager, joined Digi in September 2024 to oversee Opengear's global operations, driving the company's strategic growth initiatives and further enhancing its position as a leader in the data center and network management markets.
Quirk brings a wealth of experience in operations management, strategic alliances, and technology leadership to his role.
Tony Puopolo, Senior Vice President, General Manager of Digi Managed Solutions, joined Digi in May 2024, bringing over two decades of experience in driving business growth and innovation within the technology sector.
Puopolo is focused on expanding Digi's portfolio of managed services and driving sustainable growth for the company.
Dane Surkamer, Vice President of Global Channel Sales, joined Digi in August 2024, bringing a proven track record in sales leadership and a strong focus on managed services.
Surkamer is chartered with accelerating revenue growth through Digi’s channel network.
Landon Reese, Vice President of Product Management in Digi Managed Solutions, joined Digi in July 2024, bringing deep experience in developing new products and driving revenue.
Each of these professionals brings a wealth of experience and fresh perspectives to drive Digi's mission of delivering innovative IoT connectivity and network management solutions. Their combined expertise in business strategy and operational excellence strengthens Digi’s position as a global leader, ensuring continued growth and success across diverse industries. These appointments underscore Digi's commitment to fostering innovation, leadership, and excellence to drive customer success in the rapidly growing IoT landscape.
Additionally, Digi nominated two outstanding professionals to our Board of Directors: Valerie Heusinkveld and Allison West Hughes.
Ms. Heusinkveld served as Chief Financial Officer of Cradlepoint, Inc., a provider of bundled cellular hardware and connectivity and monitoring software solutions, from 2012 until her retirement in 2021.
Digi believes her experience will provide the Board with expertise in such areas as finance, operations, hardware and solutions sales models with a focus on annual recurring revenue (ARR), as well as mergers and acquisitions, internal controls, risk management and auditing.
Ms. West Hughes has served as Corporate Vice President at Microsoft Corporation since July 2022, initially focused on digital acquisition and adding responsibility for small and medium business in July 2024.
Digi believes her expertise in marketing and selling subscription-based offerings resulting in annual recurring revenue, as well as working with customers of varying degrees of scale would be valuable as the company executes on the expansion of recurring revenue-based solutions offerings across its business.
As we continue to grow our ARR initiatives as a complete solution provider, we anticipate that Ms. Heusinkveld and Ms. West Hughes will provide enormous insights and value.
Digi Announced Awards, Alliances, and a Strong Fiscal Year
While there are too many milestones and events in a given year to list them all in one blog post, you can catch a glimpse of many of them by visiting our press release page, our awards page and the Digi blog. You can also find recordings of all of webinars on the Digi webinars page.
Here are a few additional highlights:
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Digi earned several awards during the year:
- I was honored to be named an Entrepreneur Of The Year® 2024 Heartland Award winner by Ernst & Young LLP (EY US).
- Digi ConnectCore Security Services was a winner in the 2024 MSP Today Product of the Year Awards, which recognize the best-of-the-best products, services and solutions sold to and through MSPs and the channel today. The award acknowledges the importance of this cutting-edge value-added service which enables OEMs to continually monitor and manage the security of their solutions after deployment.
2024 IoT Evolution Industrial IoT Product of the Year Awards. This thrilling award showcases the importance of our newest industrial cellular solution, which enables the mission critical edge computing requirements of Industry 4.0.- Digi Connect Sensor XRT-M was a finalist for the Sensors Converge Best of Sensors Awards in the Industrial and Manufacturing category.
- Digi announced our annual Channel Award winners, celebrating the incredible sales and customer service commitments and achievements of our distribution channel members.
- We announced new technology alliances that bolster the value we provide to customers seeking key capabilities. These included:
- And at the end of Fiscal Year 24, which closed on September 30, 2024, Digi announced a strong fiscal year, including annual revenue of $424M, an increase of 220 basis points in gross profit margin, and record ARR (annualized recurring revenue) of $116M — an increase of 9%.
- In the same end of Fiscal Year 2024 press release, we announced the following forward-looking guidance: “ARR, our highest priority, creates value in providing solutions for our customers to achieve their critical priorities. Resilient execution in a large and growing Industrial Internet of Things market provides confidence we will grow ARR and Adjusted EBITDA to $200 million within the next four years on an organic basis.”
Digi Cares About Our Community and the Environment
Digi International is deeply committed to giving back to the community through impactful events and initiatives. Here are some of our community-driven activities and events of 2024:
We held our annual Digi Wormburner golf event and giving event — a great day of golfing with Digi staff, distributors and vendors, as well as contributing to great causes — and raised $52,500 for three deserving local charities that do amazing work in their local communities. See the blog post to learn about the recipients.- Digi supported the TreeHouse organization, which has a mission to give hope to teens, through mentoring, activities and engagement. Our contribution to the organization’s Golf for Hope drive supported a day of fun for a golf foursome while helping to raise $10,000 for their important lifesaving work.
- We sponsored the Children’s Minnesota gala fundraising event, providing $15,000 to support this incredible nonprofit in their lifesaving work.
Our staff volunteered at Feed My Starving Children, contributing time and effort to combat global hunger by packing meals.- We celebrated our fourth annual Digi Green Tech Customer Innovation Awards, to showcase the work of our customers in promoting sustainability, reducing carbon footprint and preserving our precious resources.
- Digi supported a local organization for the holidays with a food drive for the STEP organization which provides vital support to citizens in need. Our staff donated a total of 394 pounds of food and household items which we delivered to the week before Christmas.
These initiatives reflect Digi’s values of community involvement and concern for our planet, demonstrating our mission to create positive change beyond the world of IoT.
Looking Ahead for Digi: Our Customer-Focused Innovation Continues
As we launch into the New Year and close out 2024, I am incredibly proud of the milestones we’ve achieved and the innovations we’ve delivered to empower our customers in an increasingly connected world. This year has been a testament to the resilience, creativity, and dedication of the Digi team.
Looking ahead to 2025, I am excited about the opportunities to build on our successes. Here are a few sneak peek highlights of what’s to come:
We are investing 15% of our revenue in R&D and we are investing in our customer facing roles by adding $5M in OPEX.- We expect to achieve ~30% of our revenue as annual recurring revenue (ARR) by the end of fiscal year 2025, contributing to Digi’s long-term success. Our increase in ARR will be defined by software and security enhancements that support the goals of customers seeking to work with leading IoT providers like Digi who help to simplify their connectivity experience while bolstering security, longevity and ease-of-use.
- Additionally — barring significant other uses of capital, like acquisitions — we expect to be debt free by calendar year end.
- And finally, in 2025 Digi will celebrate a major milestone in our wonderfully storied history with our 40th anniversary! We believe this milestone is a huge testimonial to the faith our customers place in us, and we intend to continue to delight our long-standing and new customers, our distribution channel and our investors with new innovations.
As always, we will continue driving technological advancements and strengthening our collaborative relationships. Together, we will shape the future of IoT, delivering cutting-edge solutions that solve real-world challenges and create lasting value for our customers and communities.
We thank our customers, vendors, distributors and investors for putting faith in Digi!
Reach out to start a conversation. We would love to hear about your IoT and connectivity goals.
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