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Sep 30, 2020

Trimble Q3 2020 Earnings Report

Trimble's Q3 2020 results showed resilience despite a challenging macroeconomic environment, with growth in annualized recurring revenue and operating margin.

Key Takeaways

Trimble reported GAAP revenue of $792.1 million, a 1% increase year-over-year. Annualized recurring revenue (ARR) grew by 10% to $1.26 billion. GAAP net income was $84.7 million, with diluted earnings per share at $0.34. The company's financial model proved resilient despite the global economic uncertainty.

GAAP revenue reached $792.1 million, up 1% year over year.

Annualized recurring revenue (ARR) increased by 10% year over year, reaching $1.26 billion.

GAAP operating income was $102.0 million.

Diluted earnings per share was $0.34 on a GAAP basis.

Total Revenue
$792M
Previous year: $784M
+1.0%
EPS
$0.6
Previous year: $0.48
+25.0%
Annual Recurring Revenue
$1.26B
Previous year: $1.15B
+10.0%
Operating Margin
12.9%
Gross Profit
$440M
Previous year: $422M
+4.2%
Cash and Equivalents
$184M
Previous year: $185M
-0.3%
Total Assets
$6.62B
Previous year: $5.8B
+14.1%

Trimble

Trimble

Trimble Revenue by Segment

Forward Guidance

Trimble is not providing a financial outlook for the fourth quarter of 2020 due to continued global economic uncertainty caused by the COVID-19 pandemic.

Challenges Ahead

  • Global economic uncertainty due to the COVID-19 pandemic will impact financial results.
  • Inability to market, manufacture, and ship new products could adversely affect results.
  • Failure to obtain new customers could negatively impact the company.
  • Ineffective integration of new acquisitions may harm financial performance.
  • Further deterioration in economic conditions as a result of the COVID-19 pandemic may negatively affect results.

Revenue & Expenses

Visualization of income flow from segment revenue to net income