Trimble Announces Third Quarter 2024 Results
Record annualized recurring revenue, reflecting ongoing execution of the Connect & Scale strategy
Record gross margin, demonstrating continued business transformation and favorable mix shift
Continued simplification and focusing of business via recently announced Mobility divestiture
Raising full year guidance
WESTMINSTER, Colo., Nov. 6, 2024 /PRNewswire/ -- Trimble Inc. (NASDAQ:TRMB) today announced financial results for the third quarter of 2024.
Third Quarter 2024 Financial Highlights
Revenue of $875.8 million, down 9 percent on a year-over-year basis, up 3 percent on an organic basis
Annualized recurring revenue ("ARR") was $2.19 billion, up 13 percent year-over-year, up 14 percent on an organic basis
GAAP operating income was $116.4 million, 13.3 percent of revenue and non-GAAP operating income was $224.8 million, 25.7 percent of revenue
GAAP net income was $40.6 million and non-GAAP net income was $171.9 million
Diluted earnings per share ("EPS") was $0.16 on a GAAP basis and $0.70 on a non-GAAP basis
Adjusted EBITDA was $237.4 million, 27.1 percent of revenue
Executive Quote
"The Trimble team executed well in the quarter, exceeding expectations on both top and bottom lines, while delivering a record $2.19 billion of ARR and record gross margin of 68.5 percent," said Rob Painter, Trimble's President and Chief Executive Officer. "We continue to progress our Connect & Scale strategy with the recently announced Mobility divestiture, which will further simplify and focus our business. We look forward to hosting our Dimensions user conference from November 11-13, 2024 and our investor day on December 10, 2024."
Forward-Looking Guidance
For the full-year 2024, Trimble expects to report revenue between $3,625 million and $3,665 million, GAAP earnings per share of $6.25 to $6.32, and non-GAAP earnings per share of $2.79 to $2.87. GAAP guidance assumes a tax rate of 24.9 percent and non-GAAP guidance assumes a tax rate of 17.3 percent. Both GAAP and non-GAAP earnings per share assume approximately 247 million shares outstanding.
For the fourth quarter of 2024, Trimble expects to report revenue between $925 million and $965 million, GAAP earnings per share of $0.52 to $0.61, and non-GAAP earnings per share of $0.83 to $0.91. GAAP guidance assumes a tax rate of 13.0 percent and non-GAAP guidance assumes a tax rate of 17.4 percent. Both GAAP and non-GAAP earnings per share assume approximately 247 million shares outstanding.
Full-year 2024 and fourth quarter of 2024 guidance both reflect the closing of the joint venture with AGCO which closed at the beginning of the second quarter of 2024. A reconciliation of the non-GAAP measures to the most directly comparable GAAP measures and other information relating to these non-GAAP measures are included in the supplemental reconciliation schedule attached.
Investor Conference Call / Webcast Details
Trimble will hold a conference call on November 6, 2024 at 8:00 a.m. ET to review its third quarter of 2024 results. An accompanying slide presentation will be made available on the "Investors" section of the Trimble website, www.trimble.com, under the subheading "Events & Presentations." The call will be broadcast live on the web at http://investor.trimble.com. Investors without internet access may dial into the call at (888) 660-6347 (U.S.) or (929) 201-6594 (international). The conference ID is 1043223. The replay will also be available on the web at the address above.
About Trimble
Trimble is transforming the ways people move, build and live. Core technologies in positioning, modeling and data analytics connect the digital and physical worlds to improve our customers' productivity, quality, safety, transparency and sustainability. For more information about Trimble (NASDAQ:TRMB), visit: www.trimble.com.
Safe Harbor
Certain statements made in this press release are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. These statements include expectations about our future financial and operational results. These forward-looking statements are subject to change, and actual results may materially differ due to certain risks and uncertainties. The Company's results may be adversely affected if the Company is unable to market, manufacture and ship new products, obtain new customers, effectively integrate new acquisitions or consummate divestitures in a timely manner, or get the benefits it is expecting from its joint ventures and partnerships, including with AGCO and Platform Science. The Company's results would also be negatively impacted due to weakness and deterioration in the US and global macroeconomic outlook, including slowing growth, inflationary pressures and increases in interest rates, which may affect demand for our products and services and increase our costs, adversely affecting our revenues and profitability, supply chain shortages and disruptions, the pace at which our dealers work through their inventory, changes in our distribution channels, adverse geopolitical developments and the potential impact of volatility and conflict in the political and economic environment, including conflicts in the Middle East and between Russia and Ukraine and its direct and indirect impact on our business, foreign exchange fluctuations, the pace we transition our business model towards a subscription model, the imposition of barriers to international trade, the impact of acquisitions or divestitures, and our ability to maintain effective internal controls over financial reporting, including our ability to remediate our material weaknesses in our internal controls over financial reporting. Any failure to achieve predicted results could negatively impact the Company's revenue, cash flow from operations, and other financial results. The Company's financial results will also depend on a number of other factors and risks detailed from time to time in reports filed with the SEC, including its quarterly reports on Form 10-Q and its annual report on Form 10-K. Undue reliance should not be placed on any forward-looking statement contained herein. These statements reflect the Company's position as of the date of this release. The Company expressly disclaims any undertaking to release publicly any updates or revisions to any statements to reflect any change in the Company's expectations or any change of events, conditions, or circumstances on which any such statement is based.
FTRMB
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share data)
(Unaudited)
Third Quarter of
First Three Quarters of
2024
2023
2024
2023
Revenue:
Product
$ 307.6
$ 444.0
$ 995.1
$ 1,368.9
Subscription and services
568.2
513.3
1,704.8
1,497.4
Total revenue
875.8
957.3
2,699.9
2,866.3
Cost of sales:
Product
160.7
215.6
544.7
665.7
Subscription and services
120.6
123.8
365.4
364.2
Amortization of purchased intangible assets
18.9
27.7
74.7
80.9
Total cost of sales
300.2
367.1
984.8
1,110.8
Gross margin
575.6
590.2
1,715.1
1,755.5
Gross margin (%)
65.7 %
61.7 %
63.5 %
61.2 %
Operating expense:
Research and development
155.6
162.5
487.3
496.6
Sales and marketing
147.1
146.2
436.4
436.9
General and administrative
127.6
117.2
410.4
369.2
Restructuring
2.4
11.8
14.1
26.1
Amortization of purchased intangible assets
26.5
31.2
79.7
74.8
Total operating expense
459.2
468.9
1,427.9
1,403.6
Operating income
116.4
121.3
287.2
351.9
Non-operating (expense) income, net:
Divestitures (loss) gain, net
(22.6)
5.5
1,695.0
10.6
Interest expense, net
(14.1)
(46.8)
(77.4)
(113.2)
(Loss) income from equity method investments, net
(0.6)
5.2
9.3
24.6
Other (loss) income, net
(6.0)
(5.8)
(6.0)
23.6
Total non-operating (expense) income, net
(43.3)
(41.9)
1,620.9
(54.4)
Income before taxes
73.1
79.4
1,908.1
297.5
Income tax provision
32.5
4.5
493.9
49.2
Net income
$ 40.6
$ 74.9
$ 1,414.2
$ 248.3
Earnings per share:
Basic
$ 0.17
$ 0.30
$ 5.76
$ 1.00
Diluted
$ 0.16
$ 0.30
$ 5.73
$ 1.00
Shares used in calculating earnings per share:
Basic
245.6
248.6
245.4
248.0
Diluted
246.9
249.7
246.9
249.1
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)
As of
Third Quarter of
Year End
2024
2023
Assets
Current assets:
Cash and cash equivalents
$ 1,036.9
$ 229.8
Accounts receivable, net
525.6
706.6
Inventories
192.1
235.7
Prepaid expenses
95.3
89.8
Other current assets
149.1
147.8
Assets held for sale
311.7
421.2
Total current assets
2,310.7
1,830.9
Property and equipment, net
191.9
202.5
Operating lease right-of-use assets
125.4
124.0
Goodwill
5,141.8
5,350.6
Other purchased intangible assets, net
1,103.1
1,243.5
Deferred income tax assets
311.5
412.3
Equity investments
424.7
127.7
Other non-current assets
257.6
247.8
Total assets
$ 9,866.7
$ 9,539.3
Liabilities and Stockholders' Equity
Current liabilities:
Short-term debt
$ 400.0
$ 530.4
Accounts payable
177.3
165.3
Accrued compensation and benefits
194.7
181.2
Deferred revenue
661.8
663.1
Income taxes payable
313.8
39.7
Other current liabilities
197.4
201.3
Liabilities held for sale
41.6
48.3
Total current liabilities
1,986.6
1,829.3
Long-term debt
1,390.2
2,536.2
Deferred revenue, non-current
95.4
98.3
Deferred income tax liabilities
235.9
287.8
Operating lease liabilities
121.8
121.9
Other non-current liabilities
161.7
165.7
Total liabilities
3,991.6
5,039.2
Stockholders' equity:
Common stock
0.2
0.2
Additional paid-in-capital
2,330.9
2,214.6
Retained earnings
3,668.3
2,437.4
Accumulated other comprehensive loss
(124.3)
(152.1)
Total stockholders' equity
5,875.1
4,500.1
Total liabilities and stockholders' equity
$ 9,866.7
$ 9,539.3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
First Three Quarters of
2024
2023
Cash flow from operating activities:
Net income
$ 1,414.2
$ 248.3
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
179.2
185.2
Deferred income taxes
31.2
(104.0)
Stock-based compensation
110.3
112.5
Divestitures gain, net
(1,695.0)
(10.6)
Other, net
42.5
(5.9)
(Increase) decrease in assets:
Accounts receivable, net
103.9
24.0
Inventories
17.0
46.3
Other current and non-current assets
(51.6)
(35.5)
Increase (decrease) in liabilities:
Accounts payable
18.0
5.0
Accrued compensation and benefits
7.6
12.3
Deferred revenue
12.0
(39.7)
Income taxes payable
250.7
62.5
Other current and non-current liabilities
(23.7)
(2.2)
Net cash provided by operating activities
416.3
498.2
Cash flow from investing activities:
