Trimble(TRMB) ZACKS·2025-05-07 17:30Core Insights - Trimble (TRMB) reported first-quarter 2025 non-GAAP earnings of 61 cents per share, exceeding the Zacks Consensus Estimate by 3.39%, although this represents a 4.7% decline year over year [1] - Total revenues for the quarter were $840.6 million, surpassing the Zacks Consensus Estimate by 4.11%, but down 11.8% year over year, with a 2% increase on an organic basis [1] Revenue Breakdown - Product revenues accounted for 32.3% of total revenues, totaling $271.6 million, a decrease of 26% year over year [2] - Subscription and services revenues, making up 67.7% of total revenues, fell 2.9% year over year to $569 million [2] - The AECO segment generated revenues of $335.4 million, representing 39.9% of total revenues, down 1.1% year over year [3] - Field Systems revenues, which comprised 42.7% of total revenues, were $359.2 million, declining 14.3% year over year [4] - Transportation and Logistics revenues, accounting for 17.4% of total revenues, were $146 million, down 25.1% year over year [5] Annualized Recurring Revenue (ARR) - Trimble achieved annualized recurring revenues (ARR) of $2.18 billion, reflecting a 7% year-over-year increase, with a 15% increase on an organic basis [2] - The AECO segment experienced 19% ARR growth, driven by strong bookings and cross-selling initiatives [4] - Field Systems segment ARR grew by 25%, supported by demand in Civil Construction and Geospatial subscription offerings [4] - Transportation and Logistics segment saw 7% ARR growth, primarily from Maps and Transporeon performance [5] Profitability Metrics - Non-GAAP gross margin for the quarter was 69.2%, an increase of 340 basis points year over year [5] - Non-GAAP operating expenses represented 45.6% of total revenues, up 440 basis points year over year [5] - Non-GAAP operating margin was 23.6%, a contraction of 100 basis points year over year [5] Balance Sheet and Cash Flow - At the end of Q1 2025, cash and cash equivalents were $290 million, down from $738.8 million at the end of Q4 2024 [6] - Total debt remained unchanged at $1.39 billion [6] - Cash generated by operating activities was $155.6 million, compared to $115.1 million in the previous quarter [6] - Free cash flow increased to $149 million from $109 million in the previous quarter [7] Guidance - For Q2 2025, Trimble expects reported and adjusted revenues between $815 million and $845 million [9] - Non-GAAP operating margin is anticipated to be between 23.5% and 24.5% [9] - For the full year 2025, revenues are projected between $3.37 billion and $3.47 billion on a reported basis, with adjusted revenues between $3.35 billion and $3.45 billion [10] - ARR is expected to grow 12-14% organically on a reported basis and 13-15% on an adjusted basis [10] - Non-GAAP earnings for 2025 are forecasted to be between $2.76 and $2.98 per share on a reported basis [10]