- Record annualized recurring revenue of $2.03 billion, up 23 percent on a year-over-year basis, up 13 percent on an organic basis
- Record GAAP gross margin of 62.3 percent and record non-GAAP gross margin of 65.8 percent
- GAAP operating income was $109.2 million, 11.5 percent of revenue, and non-GAAP operating income was $234.4 million, 24.6 percent of revenue
- Adjusted EBITDA was $250.9 million, 26.3 percent of revenue
WESTMINSTER, Colo., May 3, 2024 /PRNewswire/ — Trimble Inc. (NASDAQ: TRMB) today announced financial results for the first quarter of 2024.
First Quarter 2024 Financial Highlights
- Revenue of $953.3 million, up 4 percent on a year-over-year basis, flat on an organic basis
- Annualized recurring revenue (“ARR”) was $2.03 billion, up 23 percent year-over-year, up 13 percent on an organic basis
- GAAP operating income was $109.2 million, 11.5 percent of revenue and non-GAAP operating income was $234.4 million, 24.6 percent of revenue
- GAAP net income was $57.2 million and non-GAAP net income was $159.1 million
- Diluted earnings per share (“EPS”) was $0.23 on a GAAP basis and $0.64 on a non-GAAP basis
- Adjusted EBITDA was $250.9 million, 26.3 percent of revenue
- Share repurchases of $175.0 million
Executive Quote
“We had a strong start to the year, delivering record annualized recurring revenue of $2.03 billion and record first quarter gross margin. And on April 1, we closed our agriculture joint venture with AGCO,” said Rob Painter, Trimble’s president and chief executive officer. “With our new reporting segment and organization structure in place, we have further simplified and focused the Company to enable our customers to transform how they work, while creating value for our shareholders.”
Forward-Looking Guidance
For the full-year 2024, Trimble expects to report revenue between $3,570 million and $3,670 million and non-GAAP EPS of $2.60 to $2.80. The full year 2024 non-GAAP EPS assumes a tax rate of 17.3 percent and approximately 244 million average shares outstanding.
For the second quarter of 2024, Trimble expects to report revenue between $845 million and $875 million and non-GAAP EPS of $0.56 to $0.60. The second quarter of 2024 non-GAAP EPS assumes a tax rate of 17.3 percent and approximately 247 million average shares outstanding.
Full-year 2024 and second 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.
Trimble is unable to provide a quantitative reconciliation of these measures to GAAP with a reasonable degree of accuracy because Trimble has not determined all assets, liabilities, and other adjustments, as well as related tax expense to calculate a gain associated with the agriculture business that was contributed to the joint venture with AGCO. Additionally the fair value of our 15 percent investment in the joint venture with AGCO has not been reasonably determined. An explanation of how we calculate non-GAAP EPS and other information relating to this non-GAAP measure is included in the supplemental schedule attached.
Investor Conference Call / Webcast Details
Trimble will hold a conference call on May 3, 2024 at 8:00 a.m. ET to review its first 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, including with AGCO. 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 control 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) |
|||
First Quarter of |
|||
2024 |
2023 |
||
Revenue: |
|||
Product |
$ 367.1 |
$ 434.4 |
|
Subscription and services |
586.2 |
481.0 |
|
Total revenue |
953.3 |
915.4 |
|
Cost of sales: |
|||
Product |
207.5 |
216.2 |
|
Subscription and services |
124.4 |
115.4 |
|
Amortization of purchased intangible assets |
27.8 |
23.0 |
|
Total cost of sales |
359.7 |
354.6 |
|
Gross margin |
593.6 |
560.8 |
|
Gross margin (%) |
62.3 % |
61.3 % |
|
Operating expense: |
|||
Research and development |
170.2 |
159.3 |
|
Sales and marketing |
146.8 |
135.4 |
|
General and administrative |
134.1 |
110.7 |
|
Restructuring |
6.6 |
6.7 |
|
Amortization of purchased intangible assets |
26.7 |
11.7 |
|
Total operating expense |
484.4 |
423.8 |
|
Operating income |
109.2 |
137.0 |
|
Non-operating income (expense), net: |
|||
Divestitures gain, net |
3.5 |
4.0 |
|
Interest expense, net |
(45.2) |
(19.7) |
|
Income from equity method investments, net |
5.6 |
11.4 |
|
Other (expense) income, net |
(0.1) |
27.9 |
|
Total non-operating (expense) income, net |
(36.2) |
23.6 |
|
Income before taxes |
73.0 |
160.6 |
|
Income tax provision |
15.8 |
31.8 |
|
Net income |
$ 57.2 |
$ 128.8 |
|
Earnings per share: |
|||
Basic |
$ 0.23 |
$ 0.52 |
|
Diluted |
$ 0.23 |
$ 0.52 |
|
Shares used in calculating earnings per share: |
|||
Basic |
245.5 |
247.2 |
|
Diluted |
247.4 |
248.7 |
CONDENSED CONSOLIDATED BALANCE SHEETS (In millions) (Unaudited) |
|||
As of |
|||
First Quarter of |
Year End |
||
2024 |
2023 |
||
Assets |
|||
Current assets: |
|||
Cash and cash equivalents |
$ 255.1 |
$ 229.8 |
|
Accounts receivable, net |
633.0 |
706.6 |
|
Inventories |
230.0 |
235.7 |
|
Prepaid expenses |
104.1 |
89.8 |
|
Other current assets |
112.1 |
147.8 |
|
Assets held for sale |
505.8 |
421.2 |
|
Total current assets |
1,840.1 |
1,830.9 |
|
Property and equipment, net |
197.9 |
202.5 |
|
Operating lease right-of-use assets |
116.8 |
124.0 |
|
Goodwill |
5,195.7 |
5,350.6 |
|
Other purchased intangible assets, net |
1,168.3 |
1,243.5 |
|
Deferred income tax assets |
407.5 |
412.3 |
|
Other non-current assets |
394.9 |
375.5 |
|
Total assets |
$ 9,321.2 |
$ 9,539.3 |
|
Liabilities and Stockholders’ Equity |
|||
Current liabilities: |
|||
Short-term debt |
$ 543.4 |
$ 530.4 |
|
Accounts payable |
190.9 |
165.3 |
|
Accrued compensation and benefits |
137.2 |
181.2 |
|
Deferred revenue |
720.1 |
663.1 |
|
Other current liabilities |
203.4 |
241.0 |
|
Liabilities held for sale |
40.6 |
48.3 |
|
Total current liabilities |
1,835.6 |
1,829.3 |
|
Long-term debt |
2,486.9 |
2,536.2 |
|
Deferred revenue, non-current |
98.5 |
98.3 |
|
Deferred income tax liabilities |
265.4 |
287.8 |
|
Operating lease liabilities |
115.4 |
121.9 |
|
Other non-current liabilities |
170.3 |
165.7 |
|
Total liabilities |
4,972.1 |
5,039.2 |
|
Stockholders’ equity: |
|||
Common stock |
0.2 |
0.2 |
|
Additional paid-in-capital |
2,240.7 |
2,214.6 |
|
Retained earnings |
2,340.8 |
2,437.4 |
|
Accumulated other comprehensive loss |
(232.6) |
(152.1) |
|
Total stockholders’ equity |
4,349.1 |
4,500.1 |
|
Total liabilities and stockholders’ equity |
$ 9,321.2 |
$ 9,539.3 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) |
|||
First Quarter of |
|||
2024 |
2023 |
||
Cash flow from operating activities: |
|||
Net income |
$ 57.2 |
$ 128.8 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|||
Depreciation and amortization |
62.9 |
44.5 |
|
Deferred income taxes |
(13.8) |
(33.8) |
|
Stock-based compensation |
36.4 |
33.5 |
|
Other, net |
(2.3) |
(27.8) |
|
(Increase) decrease in assets: |
|||
Accounts receivable, net |
63.9 |
62.1 |
|
Inventories |
8.8 |
(11.1) |
|
Other current and non-current assets |
8.1 |
(6.2) |
|
Increase (decrease) in liabilities: |
|||
Accounts payable |
26.5 |
(9.1) |
|
Accrued compensation and benefits |
(46.3) |
(26.5) |
|
Deferred revenue |
60.8 |
19.5 |
|
Income taxes payable |
(18.1) |
31.6 |
|
Other current and non-current liabilities |
(10.3) |
3.2 |
|
Net cash provided by operating activities |
233.8 |
208.7 |
|
Cash flow from investing activities: |
|||
Acquisitions of businesses, net of cash acquired |
— |
(33.3) |
|
Purchases of property and equipment |
(6.8) |
(6.4) |
|
Other, net |
3.3 |
12.0 |
|
Net cash used in investing activities |
(3.5) |
(27.7) |
|
Cash flow from financing activities: |
|||
Issuance of common stock, net of tax withholdings |
12.0 |
14.0 |
|
Repurchases of common stock |
(175.0) |
— |
|
Proceeds from debt and revolving credit lines |
521.2 |
1,097.1 |
|
Payments on debt and revolving credit lines |
(555.8) |
(523.4) |
|
Other, net |
(4.6) |
(4.3) |
|
Net cash (used in) provided by financing activities |
(202.2) |
583.4 |
|
Effect of exchange rate changes on cash and cash equivalents |
(5.4) |
2.7 |
|
Net decrease in cash and cash equivalents |
22.7 |
767.1 |
|
Cash and cash equivalents – beginning of period (1) |
238.9 |
271.0 |
|
Cash and cash equivalents – end of period (1) |
$ 261.6 |
$ 1,038.1 |
|
(1) Include $6.5 million and $9.1 million of cash and cash equivalents classified as held for sale as of March 29, 2024 and December 29, 2023. |
REPORTING SEGMENTS (In millions) (Unaudited) |
||||||
Reporting Segments |
||||||
AECO |
Field Systems |
T&L |
||||
FIRST QUARTER OF 2024: |
||||||
Segment revenue |
$ 339.1 |
$ 419.2 |
$ 195.0 |
|||
Segment operating income |
$ 126.7 |
$ 98.3 |
$ 36.3 |
|||
Segment operating income as a % of segment revenue |
37.4 % |
23.4 % |
18.6 % |
|||
FIRST QUARTER OF 2023: |
||||||
Segment revenue |
$ 288.1 |
$ 479.9 |
$ 147.4 |
|||
Segment operating income |
$ 95.4 |
$ 137.4 |
$ 20.3 |
|||
Segment operating income as a % of segment revenue |
33.1 % |
28.6 % |
13.8 % |
GAAP TO NON-GAAP RECONCILIATION (Dollars in millions, except per share data) (Unaudited) |
|||||||||