Digi International Says Customers Are More Cautious On Second Half Demand Than It Previously Expected; Now Sees FY24 Revenue Projection To Be Down 5% Y/Y (Prior View: Flat)
Portfolio Pulse from Benzinga Newsdesk
Digi International has revised its FY24 revenue projection downwards by 5% Y/Y, citing increased customer caution and longer sales cycles. This adjustment also slightly lowers the expected Adjusted EBITDA range to 0-5%.
May 01, 2024 | 9:04 pm
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Digi International now expects FY24 revenue to decrease by 5% Y/Y, adjusting its outlook due to customer caution and extended sales cycles.
The revision in revenue projections by Digi International is a direct response to a more cautious customer outlook and longer sales cycles, which are likely to impact investor sentiment negatively in the short term. The decrease in expected revenue and the adjustment in Adjusted EBITDA range signal potential challenges in growth, affecting the stock's attractiveness to investors.
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