Trimble Announces Second Quarter 2024 Results

Core Insights - Trimble Inc. reported record annualized recurring revenue (ARR) of $2.11 billion, reflecting a 12% year-over-year increase and a 14% increase on an organic basis, indicating successful execution of its Connect & Scale strategy [2][3] - The company achieved a record gross margin of 62.7% in the second quarter of 2024, demonstrating ongoing business transformation and a favorable mix shift [2][3] - Trimble raised its full-year guidance for revenue and earnings per share, expecting revenue between $3.59 billion and $3.67 billion and GAAP earnings per share of $6.41 to $6.54 [4][5] Financial Performance - Total revenue for the second quarter of 2024 was $870.8 million, down 12% year-over-year but up 1% on an organic basis [2] - GAAP operating income was $61.6 million, representing 7.1% of revenue, while non-GAAP operating income was $194.4 million, or 22.3% of revenue [2] - GAAP net income reached $1,316.4 million, with diluted earnings per share (EPS) of $5.34 on a GAAP basis and $0.62 on a non-GAAP basis [2][20] Segment Performance - In the second quarter of 2024, segment revenues were as follows: AECO $299.7 million, Field Systems $379.3 million, and T&L $191.8 million [13] - Segment operating income percentages were 26.4% for AECO, 28.9% for Field Systems, and 18.7% for T&L, indicating varying levels of profitability across segments [13] Guidance and Future Outlook - For the third quarter of 2024, Trimble expects revenue between $840 million and $880 million, with GAAP EPS projected between $0.28 and $0.34 [5] - The full-year 2024 guidance reflects the impact of the joint venture with AGCO, which closed at the beginning of the second quarter [6] Cash Flow and Balance Sheet - Cash and cash equivalents at the end of the second quarter of 2024 were $944.1 million, significantly up from $229.8 million at the end of 2023 [10] - Total assets increased to $9,597.8 million, while total liabilities decreased to $3,964.4 million, indicating improved financial health [10][12]