Trimble Announces Third Quarter 2024 Results
Trimble (NASDAQ: TRMB) reported third quarter 2024 financial results with revenue of $875.8 million, down 9% year-over-year but up 3% organically. The company achieved record annualized recurring revenue (ARR) of $2.19 billion, up 13% year-over-year. GAAP operating income was $116.4 million (13.3% of revenue), while non-GAAP operating income reached $224.8 million (25.7% of revenue). The company reported GAAP EPS of $0.16 and non-GAAP EPS of $0.70. Notable achievements include record gross margin of 68.5% and adjusted EBITDA of $237.4 million. Trimble announced the Mobility divestiture to simplify operations and raised its full-year guidance.
Trimble (NASDAQ: TRMB) ha riportato i risultati finanziari del terzo trimestre 2024, con un fatturato di 875,8 milioni di dollari, in calo del 9% rispetto all'anno precedente ma in crescita del 3% in termini organici. L'azienda ha raggiunto un record di entrate ricorrenti annualizzate (ARR) di 2,19 miliardi di dollari, con un aumento del 13% su base annua. L'utile operativo secondo i principi contabili GAAP è stato di 116,4 milioni di dollari (13,3% del fatturato), mentre l'utile operativo non GAAP ha raggiunto i 224,8 milioni di dollari (25,7% del fatturato). L'azienda ha riportato un utile per azione GAAP di 0,16 dollari e un utile per azione non GAAP di 0,70 dollari. Tra i risultati notevoli figurano un margine lordo record del 68,5% e un EBITDA rettificato di 237,4 milioni di dollari. Trimble ha annunciato la dismissione della Mobility per semplificare le operazioni e ha rivisto al rialzo le previsioni per l'intero anno.
Trimble (NASDAQ: TRMB) reportó los resultados financieros del tercer trimestre de 2024 con ingresos de 875,8 millones de dólares, una caída del 9% interanual, pero un aumento orgánico del 3%. La compañía logró un récord de ingresos recurrentes anualizados (ARR) de 2,19 mil millones de dólares, un incremento del 13% con respecto al año anterior. El ingreso operativo según GAAP fue de 116,4 millones de dólares (13,3% de los ingresos), mientras que el ingreso operativo no GAAP alcanzó los 224,8 millones de dólares (25,7% de los ingresos). La compañía reportó un BPA GAAP de 0,16 dólares y un BPA no GAAP de 0,70 dólares. Los logros notables incluyen un margen bruto récord del 68,5% y un EBITDA ajustado de 237,4 millones de dólares. Trimble anunció la desinversión en Mobility para simplificar las operaciones y revisó al alza su proyección para el año completo.
Trimble (NASDAQ: TRMB)는 2024년 3분기 재무 결과를 발표하며 매출 8억 7580만 달러를 기록했으며, 이는 전년 대비 9% 감소했지만 유기적으로는 3% 증가했습니다. 회사는 연간 반복 수익(ARR)에서 21억 9000만 달러의 기록을 달성했으며, 이는 전년 대비 13% 증가한 수치입니다. GAAP 기준 영업이익은 1억 1640만 달러(매출의 13.3%)였고, 비 GAAP 기준 영업이익은 2억 2480만 달러(매출의 25.7%)에 달했습니다. GAAP 기준 주당순이익은 0.16달러, 비 GAAP 기준 주당순이익은 0.70달러였습니다. 특히 주목할 만한 성과로는 68.5%의 기록적인 총 마진과 2억 3740만 달러의 조정 EBITDA가 있습니다. Trimble은 운영을 간소화하기 위해 Mobility 부문의 매각을 발표하고 연간 가이던스를 상향 조정했습니다.
Trimble (NASDAQ: TRMB) a annoncé les résultats financiers du troisième trimestre 2024, avec un chiffre d'affaires de 875,8 millions de dollars, en baisse de 9 % par rapport à l'année précédente, mais en hausse organique de 3 %. La société a atteint un record de revenus récurrents annualisés (ARR) de 2,19 milliards de dollars, en hausse de 13 % par rapport à l'année précédente. Le résultat opérationnel selon les normes GAAP s'élevait à 116,4 millions de dollars (13,3 % du chiffre d'affaires), tandis que le résultat opérationnel non GAAP a atteint 224,8 millions de dollars (25,7 % du chiffre d'affaires). L'entreprise a déclaré un BPA GAAP de 0,16 dollar et un BPA non GAAP de 0,70 dollar. Parmi les réalisations notables figurent une marge brute record de 68,5 % et un EBITDA ajusté de 237,4 millions de dollars. Trimble a annoncé la cession de Mobility pour simplifier les opérations et a relevé ses prévisions pour l'année entière.
Trimble (NASDAQ: TRMB) hat die finanziellen Ergebnisse für das dritte Quartal 2024 bekannt gegeben, mit einem Umsatz von 875,8 Millionen Dollar, was einem Rückgang von 9 % im Vergleich zum Vorjahr entspricht, jedoch einem organischen Anstieg von 3 %. Das Unternehmen erreichte einen Rekord von jährlichen wiederkehrenden Einnahmen (ARR) in Höhe von 2,19 Milliarden Dollar, was einem Anstieg von 13 % im Jahresvergleich entspricht. Der GAAP-Betriebsgewinn betrug 116,4 Millionen Dollar (13,3 % des Umsatzes), während der Non-GAAP-Betriebsgewinn 224,8 Millionen Dollar (25,7 % des Umsatzes) erreichte. Das Unternehmen berichtete einen GAAP-Gewinn pro Aktie von 0,16 Dollar und einen Non-GAAP-Gewinn pro Aktie von 0,70 Dollar. Zu den bemerkenswerten Erfolgen gehören eine rekordverdächtige Bruttomarge von 68,5 % und ein bereinigtes EBITDA von 237,4 Millionen Dollar. Trimble kündigte die Abspaltung von Mobility an, um die Abläufe zu vereinfachen, und hob seine Prognose für das Gesamtjahr an.
- Record annualized recurring revenue of $2.19 billion, up 13% YoY
- Record gross margin of 68.5%
- Organic revenue growth of 3%
- Raised full-year guidance
- Strong adjusted EBITDA margin of 27.1%
- Overall revenue declined 9% year-over-year to $875.8 million
- GAAP net income of $40.6 million with low EPS of $0.16
Insights
Trimble's Q3 results demonstrate resilient performance amid market challenges. The
The record gross margin of
The raised full-year guidance signals management's confidence in business trajectory, despite macroeconomic uncertainties. The growing ARR base provides revenue stability and predictability, important for long-term investor consideration.
The strategic shift towards recurring revenue models is transforming Trimble's business fundamentals. The
The upcoming Dimensions user conference and investor day could catalyze market sentiment, potentially unveiling new growth initiatives and strategic roadmaps. The record gross margins suggest pricing power and value-added solutions resonating with customers, despite broader market challenges in construction and agriculture sectors.
- 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
- Raising full year guidance
Third Quarter 2024 Financial Highlights
- Revenue of
$875.8 million - Annualized recurring revenue ("ARR") was
$2.19 billion - GAAP operating income was
$116.4 million $224.8 million - GAAP net income was
$40.6 million $171.9 million - Diluted earnings per share ("EPS") was
$0.16 $0.70 - Adjusted EBITDA was
$237.4 million
Executive Quote
"The Trimble team executed well in the quarter, exceeding expectations on both top and bottom lines, while delivering a record
Forward-Looking Guidance
For the full-year 2024, Trimble expects to report revenue between
For the fourth quarter of 2024, Trimble expects to report revenue between
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. 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.
Investor Conference Call / Webcast Details
Trimble will hold a conference call on November 6, 2024 at 8:00 a.m. ET to review its third 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 (
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 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 conflicts in the
FTRMB
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share data) (Unaudited) | |||||||
Third Quarter of | First Three Quarters of | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Revenue: | |||||||
Product | $ 307.6 | $ 444.0 | $ 995.1 | $ 1,368.9 | |||
Subscription and services | 568.2 | 513.3 | 1,704.8 | 1,497.4 | |||
Total revenue | 875.8 | 957.3 | 2,699.9 | 2,866.3 | |||
Cost of sales: | |||||||
Product | 160.7 | 215.6 | 544.7 | 665.7 | |||
Subscription and services | 120.6 | 123.8 | 365.4 | 364.2 | |||
Amortization of purchased intangible assets | 18.9 | 27.7 | 74.7 | 80.9 | |||
Total cost of sales | 300.2 | 367.1 | 984.8 | 1,110.8 | |||
Gross margin | 575.6 | 590.2 | 1,715.1 | 1,755.5 | |||
Gross margin (%) | 65.7 % | 61.7 % | 63.5 % | 61.2 % | |||
Operating expense: | |||||||
Research and development | 155.6 | 162.5 | 487.3 | 496.6 | |||
Sales and marketing | 147.1 | 146.2 | 436.4 | 436.9 | |||
General and administrative | 127.6 | 117.2 | 410.4 | 369.2 | |||
Restructuring | 2.4 | 11.8 | 14.1 | 26.1 | |||
Amortization of purchased intangible assets | 26.5 | 31.2 | 79.7 | 74.8 | |||
Total operating expense | 459.2 | 468.9 | 1,427.9 | 1,403.6 | |||
Operating income | 116.4 | 121.3 | 287.2 | 351.9 | |||
Non-operating (expense) income, net: | |||||||
Divestitures (loss) gain, net | (22.6) | 5.5 | 1,695.0 | 10.6 | |||
Interest expense, net | (14.1) | (46.8) | (77.4) | (113.2) | |||
(Loss) income from equity method investments, net | (0.6) | 5.2 | 9.3 | 24.6 | |||
Other (loss) income, net | (6.0) | (5.8) | (6.0) | 23.6 | |||
Total non-operating (expense) income, net | (43.3) | (41.9) | 1,620.9 | (54.4) | |||
Income before taxes | 73.1 | 79.4 | 1,908.1 | 297.5 | |||
Income tax provision | 32.5 | 4.5 | 493.9 | 49.2 | |||
Net income | $ 40.6 | $ 74.9 | $ 1,414.2 | $ 248.3 | |||
Earnings per share: | |||||||
Basic | $ 0.17 | $ 0.30 | $ 5.76 | $ 1.00 | |||
Diluted | $ 0.16 | $ 0.30 | $ 5.73 | $ 1.00 | |||
Shares used in calculating earnings per share: | |||||||
Basic | 245.6 | 248.6 | 245.4 | 248.0 | |||
Diluted | 246.9 | 249.7 | 246.9 | 249.1 | |||
CONDENSED CONSOLIDATED BALANCE SHEETS (In millions) (Unaudited) | |||
As of | |||
Third Quarter of | Year End | ||
2024 | 2023 | ||
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ 1,036.9 | $ 229.8 | |
Accounts receivable, net | 525.6 | 706.6 | |
Inventories | 192.1 | 235.7 | |
Prepaid expenses | 95.3 | 89.8 | |
Other current assets | 149.1 | 147.8 | |
Assets held for sale | 311.7 | 421.2 | |
Total current assets | 2,310.7 | 1,830.9 | |
Property and equipment, net | 191.9 | 202.5 | |
Operating lease right-of-use assets | 125.4 | 124.0 | |
Goodwill | 5,141.8 | 5,350.6 | |
Other purchased intangible assets, net | 1,103.1 | 1,243.5 | |
Deferred income tax assets | 311.5 | 412.3 | |
Equity investments | 424.7 | 127.7 | |
Other non-current assets | 257.6 | 247.8 | |
Total assets | $ 9,866.7 | $ 9,539.3 | |
Liabilities and Stockholders' Equity | |||
Current liabilities: | |||
Short-term debt | $ 400.0 | $ 530.4 | |
Accounts payable | 177.3 | 165.3 | |
Accrued compensation and benefits | 194.7 | 181.2 | |
Deferred revenue | 661.8 | 663.1 | |
Income taxes payable | 313.8 | 39.7 | |
Other current liabilities | 197.4 | 201.3 | |
Liabilities held for sale | 41.6 | 48.3 | |
Total current liabilities | 1,986.6 | 1,829.3 | |
Long-term debt | 1,390.2 | 2,536.2 | |
Deferred revenue, non-current | 95.4 | 98.3 | |
Deferred income tax liabilities | 235.9 | 287.8 | |
Operating lease liabilities | 121.8 | 121.9 | |
Other non-current liabilities | 161.7 | 165.7 | |
Total liabilities | 3,991.6 | 5,039.2 | |
Stockholders' equity: | |||
Common stock | 0.2 | 0.2 | |
Additional paid-in-capital | 2,330.9 | 2,214.6 | |
Retained earnings | 3,668.3 | 2,437.4 | |
Accumulated other comprehensive loss | (124.3) | (152.1) | |
Total stockholders' equity | 5,875.1 | 4,500.1 | |
Total liabilities and stockholders' equity | $ 9,866.7 | $ 9,539.3 | |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) | |||
First Three Quarters of | |||
2024 | 2023 | ||
Cash flow from operating activities: | |||
Net income | $ 1,414.2 | $ 248.3 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 179.2 | 185.2 | |
Deferred income taxes | 31.2 | (104.0) | |
Stock-based compensation | 110.3 | 112.5 | |
Divestitures gain, net | (1,695.0) | (10.6) | |
Other, net | 42.5 | (5.9) | |
(Increase) decrease in assets: | |||
Accounts receivable, net | 103.9 | 24.0 | |
Inventories | 17.0 | 46.3 | |
Other current and non-current assets | (51.6) | (35.5) | |
Increase (decrease) in liabilities: | |||
Accounts payable | 18.0 | 5.0 | |
Accrued compensation and benefits | 7.6 | 12.3 | |
Deferred revenue | 12.0 | (39.7) | |
Income taxes payable | 250.7 | 62.5 | |
Other current and non-current liabilities | (23.7) | (2.2) | |
Net cash provided by operating activities | 416.3 | 498.2 | |
Cash flow from investing activities: | |||
Proceeds from divestitures | 1,923.2 | 15.1 | |
Acquisitions of businesses, net of cash acquired | (22.0) | (2,088.9) | |
Purchases of property and equipment | (27.5) | (32.2) | |
Other, net | (13.7) | 41.6 | |
Net cash provided by (used in) investing activities | 1,860.0 | (2,064.4) | |
Cash flow from financing activities: | |||
Issuance of common stock, net of tax withholdings | (6.0) | 8.0 | |
Repurchases of common stock | (175.0) | — | |
Proceeds from debt and revolving credit lines | 521.2 | 3,398.8 | |
Payments on debt and revolving credit lines | (1,799.3) | (1,856.8) | |
Other, net | (4.6) | (29.3) | |
Net cash (used in) provided by financing activities | (1,463.7) | 1,520.7 | |
Effect of exchange rate changes on cash and cash equivalents | 2.5 | (2.6) | |
Net increase (decrease) in cash and cash equivalents | 815.1 | (48.1) | |
Cash and cash equivalents - beginning of period (1) | 238.9 | 271.0 | |
Cash and cash equivalents - end of period (1) | $ 1,054.0 | $ 222.9 | |
Supplemental cash flow disclosure: | |||
Cash tax paid, net, excluding tax for the Ag divestiture | $ 81.6 | $ 72.5 | |
Cash tax paid for the Ag divestiture | $ 87.1 | $ — | |
(1) Includes | |||
REPORTING SEGMENTS (In millions) (Unaudited) | ||||||
Reporting Segments | ||||||
AECO | Field Systems | T&L | ||||
THIRD QUARTER OF 2024: | ||||||
Segment revenue | $ 306.0 | $ 374.6 | $ 195.2 | |||
Segment operating income | $ 89.0 | $ 123.7 | $ 41.0 | |||
Segment operating income as a % of segment revenue | 29.1 % | 33.0 % | 21.0 % | |||
THIRD QUARTER OF 2023: | ||||||
Segment revenue | $ 269.6 | $ 495.4 | $ 192.3 | |||
Segment operating income | $ 77.8 | $ 165.0 | $ 33.6 | |||
Segment operating income as a % of segment revenue | 28.9 % | 33.3 % | 17.5 % | |||
Reporting Segments | ||||||
AECO | Field Systems | T&L | ||||
FIRST THREE QUARTERS OF 2024: | ||||||
Segment revenue | $ 944.8 | $ 1,173.1 | $ 582.0 | |||
Segment operating income | $ 294.8 | $ 331.8 | $ 113.2 | |||
Segment operating income as a % of segment revenue | 31.2 % | 28.3 % | 19.5 % | |||
FIRST THREE QUARTERS OF 2023: | ||||||
Segment revenue | $ 821.8 | $ 1,515.9 | $ 528.6 | |||
Segment operating income | $ 235.6 | $ 478.3 | $ 80.6 | |||
Segment operating income as a % of segment revenue | 28.7 % | 31.6 % | 15.2 % | |||
GAAP TO NON-GAAP RECONCILIATION (Dollars in millions, except per share data) (Unaudited) | |||||||||||||||
Third Quarter of | First Three Quarters of | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Dollar | % of | Dollar | % of | Dollar | % of | Dollar | % of | ||||||||
REVENUE: | |||||||||||||||
GAAP revenue: | $ 875.8 | $ 957.3 | |||||||||||||
GROSS MARGIN: | |||||||||||||||
GAAP gross margin: | $ 575.6 | 65.7 % | $ 590.2 | 61.7 % | 63.5 % | 61.2 % | |||||||||
Amortization of purchased intangible assets | (A) | 18.9 | 27.7 | 74.7 | 80.9 | ||||||||||
Acquisition / divestiture items | (B) | — | — | — | 0.4 | ||||||||||
Stock-based compensation / deferred compensation | (C) | 4.2 | 3.8 | 12.7 | 11.4 | ||||||||||
Restructuring and other costs | (D) | 0.9 | 0.1 | 2.9 | (0.6) | ||||||||||
Non-GAAP gross margin: | $ 599.6 | 68.5 % | $ 621.8 | 65.0 % | 66.9 % | 64.5 % | |||||||||
OPERATING EXPENSES: | |||||||||||||||
GAAP operating expenses: | $ 459.2 | 52.4 % | $ 468.9 | 49.0 % | 52.9 % | 49.0 % | |||||||||
Amortization of purchased intangible assets | (A) | (26.5) | (31.2) | (79.7) | (74.8) | ||||||||||
Acquisition / divestiture items | (B) | (17.4) | (22.0) | (75.2) | (55.1) | ||||||||||
Stock-based compensation / deferred compensation | (C) | (33.9) | (34.1) | (102.3) | (104.0) | ||||||||||
Restructuring and other costs | (D) | (6.6) | (10.8) | (18.9) | (30.2) | ||||||||||
Non-GAAP operating expenses: | $ 374.8 | 42.8 % | $ 370.8 | 38.7 % | 42.7 % | 39.8 % | |||||||||
OPERATING INCOME: | |||||||||||||||
GAAP operating income: | $ 116.4 | 13.3 % | $ 121.3 | 12.7 % | $ 287.2 | 10.6 % | $ 351.9 | 12.3 % | |||||||
Amortization of purchased intangible assets | (A) | 45.4 | 58.9 | 154.4 | 155.7 | ||||||||||
Acquisition / divestiture items | (B) | 17.4 | 22.0 | 75.2 | 55.5 | ||||||||||
Stock-based compensation / deferred compensation | (C) | 38.1 | 37.9 | 115.0 | 115.4 | ||||||||||
Restructuring and other costs | (D) | 7.5 | 10.9 | 21.8 | 29.6 | ||||||||||
Non-GAAP operating income: | $ 224.8 | 25.7 % | $ 251.0 | 26.2 % | $ 653.6 | 24.2 % | $ 708.1 | 24.7 % | |||||||
NON-OPERATING (EXPENSE) INCOME, NET: | |||||||||||||||
GAAP non-operating (expense) income, net: | $ (43.3) | $ (41.9) | $ (54.4) | ||||||||||||
Acquisition / divestiture items | (B) | 26.8 | (5.1) | (1,692.7) | (37.6) | ||||||||||
Deferred compensation | (C) | (1.6) | 0.8 | (4.7) | (2.9) | ||||||||||
Restructuring and other costs | (D) | 1.4 | 0.1 | 6.8 | 1.4 | ||||||||||
Non-GAAP non-operating expense, net: | $ (16.7) | $ (46.1) | $ (69.7) | $ (93.5) | |||||||||||
GAAP | GAAP | GAAP | GAAP | ||||||||||||
(G) | (G) | (G) | (G) | ||||||||||||
INCOME TAX PROVISION: | |||||||||||||||
GAAP income tax provision: | $ 32.5 | 44.5 % | $ 4.5 | 5.7 % | $ 493.9 | 25.9 % | $ 49.2 | 16.5 % | |||||||
Non-GAAP items tax effected | (E) | 60.1 | 7.2 | (313.5) | 48.6 | ||||||||||
Difference in GAAP and Non-GAAP tax rate | (F) | (56.4) | 23.0 | (79.4) | 9.7 | ||||||||||
Non-GAAP income tax provision: | $ 36.2 | 17.4 % | $ 34.7 | 16.9 % | $ 101.0 | 17.3 % | $ 107.5 | 17.5 % | |||||||
NET INCOME: | |||||||||||||||
GAAP net income: | $ 40.6 | $ 74.9 | $ 248.3 | ||||||||||||
Amortization of purchased intangible assets | (A) | 45.4 | 58.9 | 154.4 | 155.7 | ||||||||||
Acquisition / divestiture items | (B) | 44.2 | 16.9 | (1,617.5) | 17.9 | ||||||||||
Stock-based compensation / deferred compensation | (C) | 36.5 | 38.7 | 110.3 | 112.5 | ||||||||||
Restructuring and other costs | (D) | 8.9 | 11.0 | 28.6 | 31.0 | ||||||||||
Non-GAAP tax adjustments | (E) - (F) | (3.7) | (30.2) | 392.9 | (58.3) | ||||||||||
Non-GAAP net income: | $ 171.9 | $ 170.2 | $ 482.9 | $ 507.1 | |||||||||||
DILUTED NET INCOME PER SHARE: | |||||||||||||||
GAAP diluted net income per share: | $ 0.16 | $ 0.30 | $ 5.73 | $ 1.00 | |||||||||||
Amortization of purchased intangible assets | (A) | 0.18 | 0.24 | 0.63 | 0.63 | ||||||||||
Acquisition / divestiture items | (B) | 0.18 | 0.07 | (6.56) | 0.07 | ||||||||||
Stock-based compensation / deferred compensation | (C) | 0.15 | 0.15 | 0.45 | 0.45 | ||||||||||
Restructuring and other costs | (D) | 0.04 | 0.04 | 0.12 | 0.12 | ||||||||||
Non-GAAP tax adjustments | (E) - (F) | (0.01) | (0.12) | 1.59 | (0.23) | ||||||||||
Non-GAAP diluted net income per share: | $ 0.70 | $ 0.68 | $ 1.96 | $ 2.04 | |||||||||||
ADJUSTED EBITDA: | |||||||||||||||
GAAP operating income: | $ 116.4 | 13.3 % | $ 121.3 | 12.7 % | $ 287.2 | 10.6 % | $ 351.9 | 12.3 % | |||||||
Amortization of purchased intangible assets | (A) | 45.4 | 58.9 | 154.4 | 155.7 | ||||||||||
Acquisition / divestiture items | (B) | 17.4 | 22.0 | 75.2 | 55.5 | ||||||||||
Stock-based compensation / deferred compensation | (C) | 38.1 | 37.9 | 115.0 | 115.4 | ||||||||||
Restructuring and other costs | (D) | 7.5 | 10.9 | 21.8 | 29.6 | ||||||||||
Non-GAAP operating income: | 224.8 | 25.7 % | 251.0 | 26.2 % | 653.6 | 24.2 % | 708.1 | 24.7 % | |||||||
Depreciation expense and cloud computing amortization | 11.8 | 12.0 | 34.8 | 35.8 | |||||||||||
Income from equity method investments, net | 0.8 | 5.2 | 13.9 | 24.6 | |||||||||||
Adjusted EBITDA: | $ 237.4 | 27.1 % | $ 268.2 | 28.0 % | $ 702.3 | 26.0 % | $ 768.5 | 26.8 % | |||||||
Fourth Quarter of 2024 | Year 2024 | ||||||||||||||
Low End | High End | Low End | High End | ||||||||||||
FORECASTED DILUTED NET INCOME PER SHARE: | |||||||||||||||
Forecasted GAAP diluted net income per share: | $ 0.52 | $ 0.61 | $ 6.25 | $ 6.32 | |||||||||||
Amortization of purchased intangible assets | (A) | 0.18 | 0.18 | 0.81 | 0.81 | ||||||||||
Acquisition / divestiture items | (B) | 0.02 | 0.02 | (6.52) | (6.52) | ||||||||||
Stock-based compensation / deferred compensation | (C) | 0.18 | 0.18 | 0.63 | 0.63 | ||||||||||
Restructuring and other costs | (D) | 0.02 | 0.02 | 0.13 | 0.13 | ||||||||||
Non-GAAP tax adjustments | (E) - (F) | (0.09) | (0.10) | 1.49 | 1.50 | ||||||||||
Forecasted non-GAAP diluted net income per share: | $ 0.83 | $ 0.91 | $ 2.79 | $ 2.87 | |||||||||||
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 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.
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, executive severance agreements, business exit costs, 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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