Digi International Inc. (NASDAQ:DGII) Q4 2019 Earnings Conference Call - Final Transcript
Nov 14, 2019 • 05:00 pm ET
Okay. Thanks a lot.
Thank you. [Operator Instructions] Our next question is from David Gearhart from First Analysis. Your line is now open.
Hi, good afternoon. Thank you for taking my questions. I wanted to go back to the IoT Solutions business. In the past, you've said that the IoT Solutions business should grow roughly 20% annually on a total revenue basis. And I know what the model shift is. I was wondering if you could update that metric so we can kind of not get too far afield on that line?
Yes, it's a good and a fair question. We've achieved our goal of growing this business over 20% on the topline in the last couple of years with the focus more on recurring revenue, which is really where we want this business to land. Our expectations for top line growth are probably closer to 15% to 20%. But that subscriber base and the annualized recurring revenue should grow faster than that.
Got it. And then back to the site additions, I think it was one of your lowest quarters for site or asset additions, since you've had the business. And just curious why is it? Is it just ebbs and flows normal project-based work? And what gives you the confidence to get back up to a normal more 2,000, 3,000 plus units per quarter?
Yes that's another real good question David. I think that on the positive side, we haven't seen any market trends either customers' interest competition that have challenged our projections or confidence in the business. I do think as we enabled SmartSense 4.0 and we are starting to move customers to that as the destination platform I think that's caused us a little bit of a hiccup last quarter. We do anticipate seeing much improved subscriber numbers in this current quarter. So -- but you're right last quarter was a little bit lower than what we have traditionally achieved. And -- but we do expect that to bounce back for not only this quarter, but for the balance of the year as well.
Got it. And the last one for me housekeeping question. What was the capex in the quarter?
For the year right now -- yes for the quarter David, we were under $100 million in capex for Q4.
Got it. That's it from me. Thank you.
Thank you. At this time, I am showing no further questions. I would like to turn the call back over to Ron Konezny President and Chief Executive Officer for closing remarks.
Thank you, Gigi. In closing, I want to thank the entire Digi team, our customers and our partners. We are unwavering in our mission to support them with leading IoT offerings. We believe that we will build shareholder value and earn investor trust and confidence. Thank you.
[Operator Closing Remarks]