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Mar 29, 2024
Trimble Q1 2024 Earnings Report
Trimble reported a strong start to the year with record annualized recurring revenue and first quarter gross margin.
Key Takeaways
Trimble announced its Q1 2024 results, featuring a 4% year-over-year revenue increase to $953.3 million and a record annualized recurring revenue of $2.03 billion, up 23% year-over-year. The company's GAAP EPS was $0.23, while non-GAAP EPS reached $0.64. Adjusted EBITDA stood at $250.9 million, representing 26.3% of revenue.
Record annualized recurring revenue of $2.03 billion, a 23% increase year-over-year and 13% organically.
Record GAAP gross margin of 62.3% and record non-GAAP gross margin of 65.8%.
GAAP operating income was $109.2 million, representing 11.5% of revenue, while non-GAAP operating income was $234.4 million, or 24.6% of revenue.
Adjusted EBITDA reached $250.9 million, which is 26.3% of revenue.
Trimble
Trimble
Forward Guidance
Trimble expects full-year 2024 revenue between $3,570 million and $3,670 million and non-GAAP EPS of $2.60 to $2.80. For the second quarter of 2024, the company anticipates revenue between $845 million and $875 million and non-GAAP EPS of $0.56 to $0.60. These estimates reflect the closing of the joint venture with AGCO.
Positive Outlook
- Full-year 2024 revenue is expected to be between $3,570 million and $3,670 million.
- Full-year 2024 non-GAAP EPS is projected to be between $2.60 and $2.80, assuming a tax rate of 17.3 percent and approximately 244 million average shares outstanding.
- Second quarter 2024 revenue is forecasted to be between $845 million and $875 million.
- Second quarter 2024 non-GAAP EPS is expected to be between $0.56 and $0.60, assuming a tax rate of 17.3 percent and approximately 247 million average shares outstanding.
- Guidance reflects the closing of the joint venture with AGCO at the beginning of the second quarter of 2024.
Challenges Ahead
- Trimble is unable to provide a quantitative reconciliation of non-GAAP measures to GAAP with a reasonable degree of accuracy due to undetermined adjustments related to the agriculture business contributed to the joint venture with AGCO.
- The fair value of Trimble's 15 percent investment in the joint venture with AGCO has not been reasonably determined.
- 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.
- 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.
- 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.