Trimble Announces Fourth Quarter and Full Year 2024 Results and Initiates 2025 Guidance
Trimble (NASDAQ: TRMB) reported Q4 2024 revenue of $983.4 million, up 5% year-over-year and 17% organically. The company achieved record annualized recurring revenue (ARR) of $2.26 billion, up 14% year-over-year. Q4 GAAP EPS was $0.36, while non-GAAP EPS reached $0.89.
For full-year 2024, revenue was $3,683.3 million, down 3% year-over-year but up 5% organically. GAAP EPS was $6.09, and non-GAAP EPS was $2.85. The company repurchased 2.9 million shares for $175 million during 2024.
Looking ahead, Trimble projects 2025 revenue between $3,370-3,470 million, with non-GAAP EPS of $2.76-2.98. The Board authorized a new $1 billion share repurchase program. The company recently completed its Mobility divestiture, demonstrating continued business transformation.
Trimble (NASDAQ: TRMB) ha riportato un fatturato per il quarto trimestre del 2024 di $983,4 milioni, in aumento del 5% rispetto all'anno precedente e del 17% in termini organici. L'azienda ha raggiunto un record di entrate ricorrenti annualizzate (ARR) di $2,26 miliardi, con un incremento del 14% rispetto all'anno precedente. L'utile per azione GAAP del quarto trimestre è stato di $0,36, mentre l'utile per azione non-GAAP ha raggiunto $0,89.
Per l'intero anno 2024, il fatturato è stato di $3.683,3 milioni, in calo del 3% rispetto all'anno precedente, ma in aumento del 5% in termini organici. L'utile per azione GAAP è stato di $6,09, e l'utile per azione non-GAAP è stato di $2,85. L'azienda ha riacquistato 2,9 milioni di azioni per $175 milioni durante il 2024.
Guardando al futuro, Trimble prevede un fatturato per il 2025 compreso tra $3.370 e $3.470 milioni, con un utile per azione non-GAAP di $2,76-2,98. Il Consiglio ha autorizzato un nuovo programma di riacquisto di azioni da $1 miliardo. L'azienda ha recentemente completato la vendita della sua divisione Mobilità, dimostrando una continua trasformazione aziendale.
Trimble (NASDAQ: TRMB) reportó ingresos del cuarto trimestre de 2024 por $983.4 millones, un aumento del 5% en comparación con el año anterior y del 17% de forma orgánica. La compañía alcanzó un récord de ingresos recurrentes anualizados (ARR) de $2.26 mil millones, un incremento del 14% interanual. El EPS GAAP del cuarto trimestre fue de $0.36, mientras que el EPS no GAAP alcanzó $0.89.
Para el año completo 2024, los ingresos fueron de $3,683.3 millones, una disminución del 3% en comparación con el año anterior, pero un aumento del 5% de forma orgánica. El EPS GAAP fue de $6.09, y el EPS no GAAP fue de $2.85. La empresa recompró 2.9 millones de acciones por $175 millones durante 2024.
De cara al futuro, Trimble proyecta ingresos para 2025 entre $3,370 y $3,470 millones, con un EPS no GAAP de $2.76-2.98. La Junta autorizó un nuevo programa de recompra de acciones por $1 mil millones. La empresa completó recientemente la venta de su división de Movilidad, lo que demuestra una continua transformación empresarial.
Trimble (NASDAQ: TRMB)는 2024년 4분기 수익이 9억 8,340만 달러에 달하며, 전년 대비 5% 증가하고 유기적으로는 17% 증가했다고 보고했습니다. 회사는 연간 반복 수익(ARR)에서 22억 6천만 달러의 기록을 달성했으며, 이는 전년 대비 14% 증가한 수치입니다. 4분기 GAAP 주당순이익(EPS)은 0.36달러였으며, 비-GAAP EPS는 0.89달러에 달했습니다.
2024년 전체 수익은 36억 8,330만 달러로, 전년 대비 3% 감소했지만 유기적으로는 5% 증가했습니다. GAAP EPS는 6.09달러였고 비-GAAP EPS는 2.85달러였습니다. 회사는 2024년 동안 1억 7,500만 달러에 290만 주를 재매입했습니다.
앞을 내다보면, Trimble은 2025년 수익을 33억 7,000만 달러에서 34억 7,000만 달러로 예상하며, 비-GAAP EPS는 2.76달러에서 2.98달러로 보고 있습니다. 이사회는 10억 달러 규모의 새로운 자사주 매입 프로그램을 승인했습니다. 회사는 최근 이동성 부문의 매각을 완료하여 지속적인 비즈니스 변화를 보여주었습니다.
Trimble (NASDAQ: TRMB) a annoncé un chiffre d'affaires pour le quatrième trimestre 2024 de 983,4 millions de dollars, en hausse de 5 % par rapport à l'année précédente et de 17 % de manière organique. L'entreprise a atteint un chiffre d'affaires récurrent annualisé (ARR) record de 2,26 milliards de dollars, en hausse de 14 % par rapport à l'année précédente. Le bénéfice par action GAAP du quatrième trimestre était de 0,36 $ tandis que le bénéfice par action non-GAAP a atteint 0,89 $.
Pour l'année entière 2024, le chiffre d'affaires était de 3,683.3 millions de dollars, en baisse de 3 % par rapport à l'année précédente, mais en hausse de 5 % de manière organique. Le bénéfice par action GAAP était de 6,09 $ et le bénéfice par action non-GAAP était de 2,85 $. L'entreprise a racheté 2,9 millions d'actions pour 175 millions de dollars en 2024.
En regardant vers l'avenir, Trimble prévoit un chiffre d'affaires pour 2025 compris entre 3,370 et 3,470 millions de dollars, avec un bénéfice par action non-GAAP de 2,76-2,98 $. Le Conseil a autorisé un nouveau programme de rachat d'actions de 1 milliard de dollars. L'entreprise a récemment achevé la cession de sa division Mobilité, démontrant une transformation continue de l'entreprise.
Trimble (NASDAQ: TRMB) meldete für das 4. Quartal 2024 Einnahmen von 983,4 Millionen USD, was einem Anstieg von 5% im Vergleich zum Vorjahr und 17% organisch entspricht. Das Unternehmen erzielte einen Rekord von jährlich wiederkehrenden Einnahmen (ARR) von 2,26 Milliarden USD, ein Anstieg von 14% im Vergleich zum Vorjahr. Der GAAP EPS für das 4. Quartal betrug 0,36 USD, während der non-GAAP EPS 0,89 USD erreichte.
Für das Gesamtjahr 2024 betrugen die Einnahmen 3.683,3 Millionen USD, was einem Rückgang von 3% im Vergleich zum Vorjahr entspricht, aber einem Anstieg von 5% organisch. Der GAAP EPS betrug 6,09 USD, und der non-GAAP EPS lag bei 2,85 USD. Das Unternehmen hat im Jahr 2024 2,9 Millionen Aktien für 175 Millionen USD zurückgekauft.
Für die Zukunft prognostiziert Trimble für 2025 Einnahmen zwischen 3.370 und 3.470 Millionen USD, mit einem non-GAAP EPS von 2,76-2,98 USD. Der Vorstand genehmigte ein neues Aktienrückkaufprogramm über 1 Milliarde USD. Das Unternehmen hat kürzlich die Veräußerung seiner Mobilitätssparte abgeschlossen, was eine fortwährende Geschäftstransformation zeigt.
- Q4 revenue increased 17% on organic basis
- Record ARR of $2.26 billion, up 14% year-over-year
- Q4 non-GAAP operating margin strong at 28.8%
- $1 billion share repurchase authorization announced
- Record gross margin achieved
- Full-year 2024 revenue declined 3% year-over-year
- 2025 revenue guidance suggests potential decline from 2024 levels
Insights
Trimble's Q4 and FY2024 results reveal a compelling business transformation story, marked by three significant developments that signal a strategic pivot toward higher-quality revenue streams:
First, the achievement of record ARR at
Second, the margin expansion story is particularly impressive, with Q4 non-GAAP operating margin reaching
Third, the recently completed Mobility divestiture, combined with the new
The conservative FY2025 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 completed Mobility divestiture
$1 billion - Establishing full year guidance
Fourth Quarter 2024 Financial Highlights
- Revenue of
$983.4 million - Annualized recurring revenue ("ARR") was
$2.26 billion - GAAP operating income was
$173.5 million $283.6 million - GAAP net income was
$90.2 million $221.5 million - Diluted earnings per share ("EPS") was
$0.36 $0.89 - Adjusted EBITDA was
$298.1 million
Executive Quote
"Fiscal 2024 was a transformative year for Trimble. We simplified and focused the Company through portfolio moves and re-segmentation. We also delivered for our customers while strengthening the Company — as evidenced by record levels of software as a percent of total revenue, and record levels of ARR, gross margin and profitability," said Rob Painter, president and CEO of Trimble. "We thank all of our Trimble colleagues for their dedication and hard work in 2024, and we look forward to further executing and progressing Connect & Scale in 2025 and beyond."
Fiscal 2024 Financial Highlights
- Revenue of
$3,683.3 million - GAAP operating income was
$460.7 million $937.2 million - GAAP net income was
$1,504.4 million $704.4 million - Diluted EPS was
$6.09 $2.85 - Adjusted EBITDA was
$1,000.4 million - During fiscal 2024, Trimble repurchased approximately 2.9 million shares for
$175.0 million
Forward-Looking Guidance
For the full-year 2025, Trimble expects to report revenue between
For the first quarter of 2025, Trimble expects to report revenue between
Full-year 2025 and first quarter of 2025 guidance both reflect the closing of the mobility divestiture, which closed on February 8, 2025. 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.
Share Repurchase Authorization
The Board of Directors has authorized a common stock repurchase authorization of up to
Investor Conference Call / Webcast Details
Trimble will hold a conference call on February 19, 2025 at 8:00 a.m. ET to review its fourth quarter and full year 2024 results. An accompanying slide presentation will be made available on the "Investors" section of the Trimble website, https://www.trimble.com, under the subheading "Events & Presentations." The call will be broadcast live on the web at https://investor.trimble.com. Investors and participants who wish to dial into the call may do so by first registering at https://registrations.events/direct/Q4I841133938. Upon registration, dial-in details will be sent via email to the registrant. A 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: https://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 and expectations regarding the execution and progress of the Connect and Scale strategy. 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 the conflict between
FTRMB
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share data) (Unaudited)
| |||||||
Fourth Quarter of | Year of | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Revenue: | |||||||
Product | $ 288.9 | $ 402.8 | $ 1,284.0 | $ 1,771.7 | |||
Subscription and services | 694.5 | 529.6 | 2,399.3 | 2,027.0 | |||
Total revenue | 983.4 | 932.4 | 3,683.3 | 3,798.7 | |||
Cost of sales: | |||||||
Product | 153.6 | 209.3 | 698.3 | 875.0 | |||
Subscription and services | 130.0 | 118.0 | 495.4 | 482.2 | |||
Amortization of purchased intangible assets | 18.6 | 27.8 | 93.3 | 108.7 | |||
Total cost of sales | 302.2 | 355.1 | 1,287.0 | 1,465.9 | |||
Gross margin | 681.2 | 577.3 | 2,396.3 | 2,332.8 | |||
Gross margin (%) | 69.3 % | 61.9 % | 65.1 % | 61.4 % | |||
Operating expense: | |||||||
Research and development | 175.0 | 167.7 | 662.3 | 664.3 | |||
Sales and marketing | 167.4 | 146.1 | 603.8 | 583.0 | |||
General and administrative | 137.5 | 118.3 | 547.9 | 487.5 | |||
Restructuring | 1.8 | 19.5 | 15.9 | 45.6 | |||
Amortization of purchased intangible assets | 26.0 | 28.8 | 105.7 | 103.6 | |||
Total operating expense | 507.7 | 480.4 | 1,935.6 | 1,884.0 | |||
Operating income | 173.5 | 96.9 | 460.7 | 448.8 | |||
Non-operating (expense) income, net: | |||||||
Divestitures (loss) gain, net | (7.1) | (1.4) | 1,687.9 | 9.2 | |||
Interest expense, net | (13.3) | (47.8) | (90.7) | (161.0) | |||
(Loss) income from equity method investments, net | (57.4) | 3.5 | (48.1) | 28.1 | |||
Other income (loss), net | 2.1 | 8.3 | (3.9) | 31.9 | |||
Total non-operating (expense) income, net | (75.7) | (37.4) | 1,545.2 | (91.8) | |||
Income before taxes | 97.8 | 59.5 | 2,005.9 | 357.0 | |||
Income tax provision (benefit) | 7.6 | (3.5) | 501.5 | 45.7 | |||
Net income | $ 90.2 | $ 63.0 | $ 1,504.4 | $ 311.3 | |||
Earnings per share: | |||||||
Basic | $ 0.37 | $ 0.25 | $ 6.13 | $ 1.26 | |||
Diluted | $ 0.36 | $ 0.25 | $ 6.09 | $ 1.25 | |||
Shares used in calculating earnings per share: | |||||||
Basic | 245.9 | 247.8 | 245.5 | 247.9 | |||
Diluted | 248.2 | 249.0 | 247.2 | 249.1 | |||
CONDENSED CONSOLIDATED BALANCE SHEETS (In millions) (Unaudited)
| |||
At the End of Year | 2024 | 2023 | |
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ 738.8 | $ 229.8 | |
Accounts receivable, net | 725.8 | 706.6 | |
Inventories | 194.3 | 235.7 | |
Prepaid expenses | 103.3 | 89.8 | |
Other current assets | 196.2 | 147.8 | |
Assets held for sale | 312.0 | 421.2 | |
Total current assets | 2,270.4 | 1,830.9 | |
Property and equipment, net | 188.4 | 202.5 | |
Operating lease right-of-use assets | 123.5 | 124.0 | |
Goodwill | 4,988.4 | 5,350.6 | |
Other purchased intangible assets, net | 998.1 | 1,243.5 | |
Deferred income tax assets | 294.4 | 412.3 | |
Equity investments | 361.0 | 127.7 | |
Other non-current assets | 264.1 | 247.8 | |
Total assets | $ 9,488.3 | $ 9,539.3 | |
Liabilities and Stockholders' Equity | |||
Current liabilities: | |||
Short-term debt | $ — | $ 530.4 | |
Accounts payable | 161.6 | 165.3 | |
Accrued compensation and benefits | 227.2 | 181.2 | |
Deferred revenue | 800.4 | 663.1 | |
Income taxes payable | 325.0 | 39.7 | |
Other current liabilities | 211.2 | 201.3 | |
Liabilities held for sale | 62.6 | 48.3 | |
Total current liabilities | 1,788.0 | 1,829.3 | |
Long-term debt | 1,390.6 | 2,536.2 | |
Deferred revenue, non-current | 95.6 | 98.3 | |
Deferred income tax liabilities | 199.9 | 287.8 | |
Operating lease liabilities | 123.4 | 121.9 | |
Other non-current liabilities | 145.5 | 165.7 | |
Total liabilities | 3,743.0 | 5,039.2 | |
Stockholders' equity: | |||
Common stock | 0.2 | 0.2 | |
Additional paid-in-capital | 2,369.4 | 2,214.6 | |
Retained earnings | 3,757.6 | 2,437.4 | |
Accumulated other comprehensive loss | (381.9) | (152.1) | |
Total stockholders' equity | 5,745.3 | 4,500.1 | |
Total liabilities and stockholders' equity | $ 9,488.3 | $ 9,539.3 | |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) | |||
Year of | |||
2024 | 2023 | ||
Cash flow from operating activities: | |||
Net income | $ 1,504.4 | $ 311.3 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 232.0 | 250.6 | |
Deferred income taxes | 27.0 | (104.6) | |
Stock-based compensation | 158.6 | 145.4 | |
Divestitures gain, net | (1,687.9) | (9.2) | |
Other, net | 93.9 | 11.6 | |
(Increase) decrease in assets: | |||
Accounts receivable, net | (135.1) | (36.4) | |
Inventories | 11.0 | 67.6 | |
Other current and non-current assets | (116.3) | (67.2) | |
Increase (decrease) in liabilities: | |||
Accounts payable | 5.7 | (12.4) | |
Accrued compensation and benefits | 56.5 | 20.8 | |
Deferred revenue | 168.5 | 26.0 | |
Income taxes payable | 265.6 | (4.0) | |
Other current and non-current liabilities | (52.5) | (2.4) | |
Net cash provided by operating activities | 531.4 | 597.1 | |
Cash flow from investing activities: | |||
Proceeds from divestitures | 1,923.4 | 17.0 | |
Acquisitions of businesses, net of cash acquired | (22.0) | (2,088.9) | |
Purchases of property and equipment | (33.6) | (42.0) | |
Other, net | (6.7) | 45.8 | |
Net cash provided by (used in) investing activities | 1,861.1 | (2,068.1) | |
Cash flow from financing activities: | |||
Issuance of common stock, net of tax withholdings | (6.5) | 6.7 | |
Repurchases of common stock | (175.0) | (100.0) | |
Proceeds from debt and revolving credit lines | 521.2 | 3,847.1 | |
Payments on debt and revolving credit lines | (2,199.4) | (2,292.9) | |
Other, net | (4.5) | (29.4) | |
Net cash (used in) provided by financing activities | (1,864.2) | 1,431.5 | |
Effect of exchange rate changes on cash and cash equivalents | (19.4) | 7.4 | |
Net increase (decrease) in cash and cash equivalents | 508.9 | (32.1) | |
Cash and cash equivalents - beginning of period (1) | 238.9 | 271.0 | |
Cash and cash equivalents - end of period (1) | $ 747.8 | $ 238.9 | |
Supplemental cash flow disclosure: | |||
Cash tax paid, net, excluding tax for the Ag divestiture | $ 106.1 | $ 168.0 | |
Cash tax paid for the Ag divestiture | $ 122.0 | $ — | |
(1) Includes | |||
REPORTING SEGMENTS (In millions) (Unaudited)
| ||||||
Reporting Segments | ||||||
AECO | Field Systems | T&L | ||||
FOURTH QUARTER OF 2024: | ||||||
Segment revenue | $ 413.8 | $ 362.8 | $ 206.8 | |||
Cost of sales | 57.9 | 147.2 | 71.2 | |||
Operating expense | 187.1 | 105.4 | 93.7 | |||
Operating income | $ 168.8 | $ 110.2 | $ 41.9 | |||
Operating income % | 40.8 % | 30.4 % | 20.3 % | |||
FOURTH QUARTER OF 2023: | ||||||
Segment revenue | $ 288.7 | $ 452.0 | $ 191.7 | |||
Cost of sales | 52.3 | 197.9 | 70.7 | |||
Operating expense | 143.0 | 128.9 | 83.4 | |||
Operating income | $ 93.4 | $ 125.2 | $ 37.6 | |||
Operating income % | 32.4 % | 27.7 % | 19.6 % | |||
Reporting Segments | ||||||
AECO | Field Systems | T&L | ||||
YEAR 2024 | ||||||
Segment revenue | $ 1,358.6 | $ 1,535.9 | $ 788.8 | |||
Cost of sales | 220.4 | 666.3 | 280.2 | |||
Operating expense | 674.6 | 427.6 | 353.5 | |||
Operating income | $ 463.6 | $ 442.0 | $ 155.1 | |||
Operating income % | 34.1 % | 28.8 % | 19.7 % | |||
YEAR 2023 | ||||||
Segment revenue | $ 1,110.5 | $ 1,967.9 | $ 720.3 | |||
Cost of sales | 213.3 | 843.4 | 278.8 | |||
Operating expense | 568.2 | 521.0 | 323.3 | |||
Operating income | $ 329.0 | $ 603.5 | $ 118.2 | |||
Operating income % | 29.6 % | 30.7 % | 16.4 % | |||
GAAP TO NON-GAAP RECONCILIATION (Dollars in millions, except per share data) (Unaudited)
| |||||||||||||||
Fourth Quarter of | Year of | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Dollar | % of | Dollar | % of | Dollar | % of | Dollar | % of | ||||||||
REVENUE: | |||||||||||||||
GAAP revenue: | $ 983.4 | $ 932.4 | |||||||||||||
GROSS MARGIN: | |||||||||||||||
GAAP gross margin: | $ 681.2 | 69.3 % | $ 577.3 | 61.9 % | 65.1 % | 61.4 % | |||||||||
Amortization of purchased intangible assets | (A) | 18.6 | 27.8 | 93.3 | 108.7 | ||||||||||
Acquisition / divestiture items | (B) | — | 0.1 | — | 0.5 | ||||||||||
Stock-based compensation / deferred compensation | (C) | 4.7 | 3.6 | 17.4 | 15.0 | ||||||||||
Restructuring and other costs | (D) | 0.7 | 0.5 | 3.6 | (0.1) | ||||||||||
Non-GAAP gross margin: | $ 705.2 | 71.7 % | $ 609.3 | 65.3 % | 68.2 % | 64.7 % | |||||||||
OPERATING EXPENSES: | |||||||||||||||
GAAP operating expenses: | $ 507.7 | 51.6 % | $ 480.4 | 51.5 % | 52.6 % | 49.6 % | |||||||||
Amortization of purchased intangible assets | (A) | (26.0) | (28.8) | (105.7) | (103.6) | ||||||||||
Acquisition / divestiture items | (B) | (6.4) | (16.8) | (81.6) | (71.9) | ||||||||||
Stock-based compensation / deferred compensation | (C) | (43.8) | (32.1) | (146.1) | (136.1) | ||||||||||
Restructuring and other costs | (D) | (9.9) | (20.0) | (28.8) | (50.2) | ||||||||||
Non-GAAP operating expenses: | $ 421.6 | 42.9 % | $ 382.7 | 41.0 % | 42.7 % | 40.1 % | |||||||||
OPERATING INCOME: | |||||||||||||||
GAAP operating income: | $ 173.5 | 17.6 % | $ 96.9 | 10.4 % | $ 460.7 | 12.5 % | $ 448.8 | 11.8 % | |||||||
Amortization of purchased intangible assets | (A) | 44.6 | 56.6 | 199.0 | 212.3 | ||||||||||
Acquisition / divestiture items | (B) | 6.4 | 16.9 | 81.6 | 72.4 | ||||||||||
Stock-based compensation / deferred compensation | (C) | 48.5 | 35.7 | 163.5 | 151.1 | ||||||||||
Restructuring and other costs | (D) | 10.6 | 20.5 | 32.4 | 50.1 | ||||||||||
Non-GAAP operating income: | $ 283.6 | 28.8 % | $ 226.6 | 24.3 % | $ 937.2 | 25.4 % | $ 934.7 | 24.6 % | |||||||
NON-OPERATING (EXPENSE) INCOME, NET: | |||||||||||||||
GAAP non-operating (expense) income, net: | $ (75.7) | $ (37.4) | $ (91.8) | ||||||||||||
Acquisition / divestiture items | (B) | 4.2 | 1.1 | (1,688.5) | (36.5) | ||||||||||
Deferred compensation | (C) | (0.2) | (2.9) | (4.9) | (5.8) | ||||||||||
Restructuring and other costs | (D) | 57.3 | (0.1) | 64.1 | 1.3 | ||||||||||
Non-GAAP non-operating expense, net: | $ (14.4) | $ (39.3) | $ (84.1) | $ (132.8) | |||||||||||
GAAP | GAAP | GAAP | GAAP | ||||||||||||
(G) | (G) | (G) | (G) | ||||||||||||
INCOME TAX PROVISION: | |||||||||||||||
GAAP income tax provision: | $ 7.6 | 7.8 % | $ (3.5) | (5.9) % | $ 501.5 | 25.0 % | $ 45.7 | 12.8 % | |||||||
Non-GAAP items tax effected | (E) | 25.4 | 8.3 | (288.1) | 56.9 | ||||||||||
Difference in GAAP and Non-GAAP tax rate | (F) | 14.7 | 25.9 | (64.7) | 35.6 | ||||||||||
Non-GAAP income tax provision: | $ 47.7 | 17.7 % | $ 30.7 | 16.4 % | $ 148.7 | 17.4 % | $ 138.2 | 17.2 % | |||||||
NET INCOME: | |||||||||||||||
GAAP net income: | $ 90.2 | $ 63.0 | $ 311.3 | ||||||||||||
Amortization of purchased intangible assets | (A) | 44.6 | 56.6 | 199.0 | 212.3 | ||||||||||
Acquisition / divestiture items | (B) | 10.6 | 18.0 | (1,606.9) | 35.9 | ||||||||||
Stock-based compensation | (C) | 48.3 | 32.8 | 158.6 | 145.3 | ||||||||||
Restructuring and other costs | (D) | 67.9 | 20.4 | 96.5 | 51.4 | ||||||||||
Non-GAAP tax adjustments | (E) - (F) | (40.1) | (34.2) | 352.8 | (92.5) | ||||||||||
Non-GAAP net income: | $ 221.5 | $ 156.6 | $ 704.4 | $ 663.7 | |||||||||||
DILUTED NET INCOME PER SHARE: | |||||||||||||||
GAAP diluted net income per share: | $ 0.36 | $ 0.25 | $ 6.09 | $ 1.25 | |||||||||||
Amortization of purchased intangible assets | (A) | 0.18 | 0.23 | 0.80 | 0.85 | ||||||||||
Acquisition / divestiture items | (B) | 0.04 | 0.07 | (6.50) | 0.14 | ||||||||||
Stock-based compensation | (C) | 0.20 | 0.13 | 0.64 | 0.58 | ||||||||||
Restructuring and other costs | (D) | 0.27 | 0.08 | 0.39 | 0.21 | ||||||||||
Non-GAAP tax adjustments | (E) - (F) | (0.16) | (0.13) | 1.43 | (0.37) | ||||||||||
Non-GAAP diluted net income per share: | $ 0.89 | $ 0.63 | $ 2.85 | $ 2.66 | |||||||||||
ADJUSTED EBITDA: | |||||||||||||||
GAAP operating income: | $ 173.5 | 17.6 % | $ 96.9 | 10.4 % | $ 460.7 | 12.5 % | $ 448.8 | 11.8 % | |||||||
Amortization of purchased intangible assets | (A) | 44.6 | 56.6 | 199.0 | 212.3 | ||||||||||
Acquisition / divestiture items | (B) | 6.4 | 16.9 | 81.6 | 72.4 | ||||||||||
Stock-based compensation | (C) | 48.5 | 35.7 | 163.5 | 151.1 | ||||||||||
Restructuring and other costs | (D) | 10.6 | 20.5 | 32.4 | 50.1 | ||||||||||
Non-GAAP operating income: | 283.6 | 28.8 % | 226.6 | 24.3 % | 937.2 | 25.4 % | 934.7 | 24.6 % | |||||||
Depreciation expense and cloud computing amortization | 14.5 | 11.1 | 49.3 | 46.9 | |||||||||||
Income from equity method investments, net | — | 3.5 | 13.9 | 28.1 | |||||||||||
Adjusted EBITDA: | $ 298.1 | 30.3 % | $ 241.2 | 25.9 % | 27.2 % | 26.6 % | |||||||||
Year of | |||||||||||||||
2024 | 2023 | ||||||||||||||
FREE CASH FLOW: | |||||||||||||||
Net cash provided by operating activities | $ 531.4 | $ 597.1 | |||||||||||||
Capital expenditures | 33.6 | 42.0 | |||||||||||||
Free cash flow | $ 497.8 | $ 555.1 | |||||||||||||
First Quarter of 2025 | Year 2025 | ||||||||||||||
Low End | High End | Low End | High End | ||||||||||||
FORECASTED DILUTED NET INCOME PER SHARE: | |||||||||||||||
Forecasted GAAP diluted net income per share: | $ 0.21 | $ 0.27 | $ 1.46 | $ 1.67 | |||||||||||
Amortization of purchased intangible assets | (A) | 0.18 | 0.18 | 0.72 | 0.72 | ||||||||||
Acquisition / divestiture items | (B) | 0.02 | 0.02 | 0.07 | 0.07 | ||||||||||
Stock-based compensation / deferred compensation | (C) | 0.17 | 0.17 | 0.61 | 0.61 | ||||||||||
Restructuring and other costs | (D) | 0.02 | 0.02 | 0.07 | 0.07 | ||||||||||
Non-GAAP tax adjustments | (E) - (F) | (0.05) | (0.05) | (0.17) | (0.16) | ||||||||||
Forecasted non-GAAP diluted net income per share: | $ 0.55 | $ 0.61 | $ 2.76 | $ 2.98 | |||||||||||
FOOTNOTES TO GAAP TO NON-GAAP RECONCILIATION
This press release includes GAAP financial measures as well as non-GAAP financial measures, which are not meant to be considered in isolation or as a substitute for comparable GAAP. We believe these non-GAAP financial measures provide useful information to investors and others in understanding our "core operating performance", which excludes (i) the effect of non-cash items and certain variable charges not expected to recur; and (ii) transactions that are not meaningful in comparison to our past operating performance or not reflective of ongoing financial results. Lastly, we believe that our core operating performance offers a supplemental measure for period-to-period comparisons and can be used to evaluate our historical and prospective financial performance, as well as our performance relative to competitors.
The non-GAAP definitions, and explanations to the adjustments to comparable GAAP measures are included below:
Non-GAAP Definitions
Non-GAAP gross margin
We define Non-GAAP gross margin as GAAP gross margin, excluding the effects of amortization of purchased intangible assets, acquisition/divestiture items, stock-based compensation, deferred compensation, and restructuring and other costs. We believe our investors benefit by understanding our non-GAAP gross margin as a way of understanding how product mix, pricing decisions, and manufacturing costs influence our business.
Non-GAAP operating expenses
We define Non-GAAP operating expenses as GAAP operating expenses, excluding the effects of amortization of purchased intangible assets, acquisition/divestiture items, stock-based compensation, deferred compensation, and restructuring and other costs. We believe this measure is important to investors evaluating our non-GAAP spending in relation to revenue.
Non-GAAP operating income
We define Non-GAAP operating income as GAAP operating income, excluding the effects of amortization of purchased intangible assets, acquisition/divestiture items, stock-based compensation, deferred compensation, and restructuring and other costs. We believe our investors benefit by understanding our non-GAAP operating income trends, which are driven by revenue, gross margin, and spending.
Non-GAAP non-operating expense, net
We define Non-GAAP non-operating expense, net as GAAP non-operating income (expense), net, excluding acquisition/divestiture items, deferred compensation, and restructuring and other costs. We believe this measure helps investors evaluate our non-operating expense trends.
Non-GAAP income tax provision
We define Non-GAAP income tax provision as GAAP income tax provision, excluding charges and benefits such as net deferred tax impacts resulting from the non-
Non-GAAP net income
We define Non-GAAP net income as GAAP net income, excluding the effects of amortization of purchased intangible assets, acquisition/divestiture items, stock-based compensation, restructuring and other costs, and non-GAAP tax adjustments. This measure provides a supplemental view of net income trends, which are driven by non-GAAP income before taxes and our non-GAAP tax rate.
Non-GAAP diluted net income per share
We define Non-GAAP diluted net income per share as GAAP diluted net income per share, excluding the effects of amortization of purchased intangible assets, acquisition/divestiture items, stock-based compensation, restructuring and other costs, and non-GAAP tax adjustments. We believe our investors benefit by understanding our non-GAAP operating performance as reflected in a per share calculation as a way of measuring non-GAAP operating performance by ownership in the Company.
Adjusted EBITDA
We define Adjusted EBITDA as non-GAAP operating income plus depreciation expense, cloud computing amortization, and income from equity method investments, net, excluding our proportionate share of items such as goodwill impairment, amortization of purchased intangibles, stock-based compensation, and restructuring costs. Other companies may define Adjusted EBITDA differently. Adjusted EBITDA is a performance measure that we believe offers a useful view of the overall operations of our business because it facilitates operating performance comparisons by removing potential differences caused by variations unrelated to operating performance, such as capital structures (interest expense), income taxes, depreciation, and amortization of purchased intangibles and cloud computing costs.
Free Cash Flow
We define free cash flow as cash flow from operating activities minus capital expenditures. We believe this measure is important to investors evaluating our generation of cash flow.
Explanations of Non-GAAP adjustments
(A) | Amortization of purchased intangible assets. Non-GAAP gross margin and operating expenses exclude the amortization of purchased intangible assets, which primarily represents technology and/or customer relationships already developed. |
(B) | Acquisition / divestiture items. Non-GAAP gross margin and operating expenses exclude costs consisting of external and incremental costs resulting directly from acquisitions, divestitures, and strategic investment activities such as legal, due diligence, integration, and other closing costs, including the acceleration of acquisition stock awards and adjustments to the fair value of earn-out liabilities. Non-GAAP non-operating expense, net, excludes one-time acquisition/divestiture charges, including foreign currency exchange rate gains/losses related to an acquisition, divestiture gains/losses, and strategic investment gains/losses. These are one-time costs that vary significantly in amount and timing and are not indicative of our core operating performance. |
(C) | Stock-based compensation / deferred compensation. Non-GAAP gross margin and operating expenses exclude stock-based compensation and income or expense associated with movement in our non-qualified deferred compensation plan liabilities. Changes in non-qualified deferred compensation plan assets, included in non-operating expense, net, offset the income or expense in the plan liabilities. |
(D) | Restructuring and other costs. Non-GAAP gross margin and operating expenses exclude restructuring and other costs comprised of termination benefits related to reductions in employee headcount and closure or exit of facilities, expenses related to the 2023 re-audit, as well as a |
(E) | Non-GAAP items tax effected. This amount adjusts the provision for income taxes to reflect the effect of the non-GAAP items (A) through (D) on non-GAAP net income. |
(F) | Difference in GAAP and non-GAAP tax rate. This amount represents the difference between the GAAP and non-GAAP tax rates applied to the non-GAAP operating income plus the non-GAAP non-operating expense, net. The non-GAAP tax rate excludes charges and benefits such as (i) deferred tax impacts from tax amortization relating to a non- |
(G) | GAAP and non-GAAP tax rate percentages. These percentages are defined as GAAP income tax provision as a percentage of GAAP income before taxes and non-GAAP income tax provision as a percentage of non-GAAP income before taxes. |
OTHER KEY METRICS
Annualized Recurring Revenue
In addition to providing non-GAAP financial measures, Trimble provides an ARR performance measure in order to provide investors with a supplementary indicator of the value of the Company's current recurring revenue contracts. ARR represents the estimated annualized value of recurring revenue. ARR is calculated by taking our subscription and maintenance and support for the current quarter and adding the portion of the contract value of all our term licenses attributable to the current quarter, then dividing that sum by the number of days in the quarter and then multiplying that quotient by 365. ARR should be viewed independently of revenue and deferred revenue as it is a performance measure and is not intended to be combined with or to replace either of those items.
Organic Annualized Recurring Revenue
Organic annualized recurring revenue refers to annualized recurring revenue excluding the impacts of (i) foreign currency translation, and (ii) acquisitions and divestitures that closed in the prior 12 months.
Organic Revenue
Organic revenue refers to revenue excluding the impacts of (i) foreign currency translation, and (ii) acquisitions and divestitures that closed in the prior 12 months.
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SOURCE Trimble
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