Trimble's Q3 2024 results were announced, demonstrating record ARR and gross margin, driven by the Connect & Scale strategy, and the company raised full year guidance.
Key Takeaways
Trimble announced strong Q3 2024 results, with revenue at $875.8 million and a record ARR of $2.19 billion. The company's gross margin also reached a record high. Despite a year-over-year revenue decrease, organic revenue increased by 3 percent. Trimble is raising its full year guidance.
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.
Trimble expects for the full year 2024, 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. 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.
Positive Outlook
Revenue between $925 million and $965 million is expected for Q4 2024.
GAAP earnings per share of $0.52 to $0.61 is expected for Q4 2024.
Non-GAAP earnings per share of $0.83 to $0.91 is expected for Q4 2024.
Full-year 2024 revenue is expected to be between $3,625 million and $3,665 million.
Full-year 2024 GAAP earnings per share is expected to be $6.25 to $6.32.
Challenges Ahead
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.
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.
Revenue & Expenses
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Historical Earnings Impact
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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.
