Trimble Inc. · NASDAQ:TRMB
Trimble — Q4 2023 Earnings Presentation
18 slides from Trimble's earnings presentation, Feb 12, 2024
Slide 1: Fourth Quarter and Full Year 2023 Results Summary
Trimble Inc. Fourth Quarter and Full Year 2023 Results Summary © 2023 Trimble, Inc - All Rights Reserved 1
Slide 2: Fourth quarter and full year highlights
Fourth quarter and full year highlights 2023 Performance Highlights Structural Model Progression ● Fourth quarter revenue $932M (+3% Key Statistics organic); $1.98B of ARR (+13% organic) 2013 2018 2023 ● Full year revenue of $3.8B, (+1% organic), record full year gross margin of 64.7% Revenue $2.3B
Slide 3: Capital allocation highlights: driving shareholder value
Capital allocation highlights: driving shareholder value Capital allocation 2023 2024 Outcomes Actions Strategic Priorities Tactics TC1 product strategy - pre-packaged Doubled the number of pre-packaged TC1 offerings in Q4 by serving more users Execute in the market - learn & expand Connect & Scale
Slide 4: Voice of customer: Connect & Scale
Voice of customer: Connect & Scale Outcome: Outcome: Outcome: Delivering lifecycle value Uniquely connecting workflows Easier to do business with “Trimble Construction One “Trimble’s connected “I like that Trimble pulls for our firm has enabled us workflows have taken our everything together so we t
Slide 5: Company Organization & Future Segment Reporting
Company Organization & Future Segment Reporting Architects Engineers Construction Owners Revenue: ≈$1.3B AECO % Software/Services/ (architects, engineers, Recurring: ≈99% contractors, owners) % Recurring: ≈95% GNSS Positioning Total Stations Mobile Ag IP Machine Revenue: ≈$1.45B Services & Scanning
Slide 6: Fourth quarter 2023 financial summary
Fourth quarter 2023 financial summary $M, Except Per Share Fourth Quarter of Fourth Quarter 2023 Non-GAAP Highlights 2022 2023 Y/Y Change Total As-Adjusted, Company Excluding Ag(1) Revenue $856.5 $932.4 +9% Organic revenue +3% +6% Gross Margin % of Revenue 61.8% 65.3% +350 bps Currency translation +
Slide 7: Full year 2023 financial summary
Full year 2023 financial summary $M, Except Per Share Fiscal Year Full Year 2023 Non-GAAP Highlights 2022 2023 Y/Y Change Total As-Adjusted, Company Excluding Ag(1) Revenue $3,676.3 $3,798.7 +3% Organic revenue +1% +4% Gross Margin % of Revenue 60.0% 64.7% +470 bps Currency translation 0% 0% Adjuste
Slide 8: Financial metric highlights
Financial metric highlights Annualized recurring revenue ≈$1.98B Approx. $1.8B (+24% growth, +13% organic) Remaining Performance Obligations (backlog) 53% of Q4’23 revenue is FY’23 free cash flow $555 million recurring(1) Net working capital 69% of Q4’23 revenue is <0% of TTM revenue software/servic
Slide 9: Fourth quarter revenue by type and geography
Fourth quarter revenue by type and geography Revenue Growth by Type Revenue by Geography $ Millions Fourth Quarter of $ Millions Fourth Quarter of Y/Y Y/Y Y/Y Y/Y 2022 2023 Organic 2022 2023 Organic Change Change Change Change Product North America $455.5 $492.8 +8% +8% (hardware and perpetual $415.
Slide 10: Fourth quarter 2023 segment results
Fourth quarter 2023 segment results Q4’23 Segment Q4’23 Segment $M Revenue Operating Q4’23 Commentary & Y/Y Growth Income $ / % ● Organic ARR growth near 20% $388.5, +11% Buildings & $108.2 ● Construction software businesses continue to benefit from market demand and (+10% organic, +1% FX, Infrastru
Slide 11: FY'24 Outlook
FY’24 Outlook As-Adjusted, Excluding ● Strong ARR growth expected to continue, driving $M As-Reported(1) Ag Business to JV(2) increased predictability and profitability FY’23 FY’24 FY’23 FY’24 ● As-adjusted (excluding Agriculture), organic revenue Actuals Guidance Actuals Guidance growth is expected
Slide 12: Q1'24 Outlook
Q1’24 Outlook $M As-Reported(1) As-Adjusted, Excluding Ag Business to JV(2) Q1’23 Q1’24 Q1’23 Q1’24 Actuals Guidance Actuals Guidance Annualized Recurring Revenue $1.65B 11%-13% organic $1.63B 11%-13% organic Revenue $915M $905-935M $769M $825-855M Total Growth (8%) (1%) to 2% (6%) 7% to 11% Organic
Slide 13: Appendix and Reconciliations
Appendix and Reconciliations © 2023 Trimble, Inc - All Rights Reserved 13
Slide 14: FY'24 Outlook Assumptions
FY’24 Outlook Assumptions As-Reported(1) FY’24 As-Reported(1) Q1’24(1) FY’24(1) Total Revenue Growth: Revenue Growth: Buildings & Infrastructure +11% to +13% Organic (5%) to (2%) 2% to 5% Geospatial Minus MSD% Acquisition 5% 2% Resources & Utilities Minus 50%(2) Divestiture (1%) (10%) Transportation
Slide 15: FY'23 and Q1'23 As-Adjusted Reconciliation
FY’23 and Q1’23 As-Adjusted Reconciliation(1) Q1’23 FY’23 $MMs % of Revenue $MMs % of Revenue Revenue, As-Reported $915.4 $3,798.7 Less: Agriculture ($146.1) ($508.2) Revenue, As-Adjusted for Ag JV $769.3 $3,290.5 GAAP Operating Income, As-Reported $137.0 $448.8 Add: Amortization of purchased intang
Slide 16: FY'13 and FY'18 Non-GAAP Reconciliation
FY’13 and FY’18 Non-GAAP Reconciliation 2013 2018 $MMs % of Revenue $MMs % of Revenue GAAP Revenue $2,288.1 $3,108.4 Acquired deferred revenue adjustment $0.0 $23.6 Non-GAAP Revenue $2,288.1 $3,132.0 GAAP Gross Margin $1,203.8 52.6% $1,681.0 54.1% Acquired deferred revenue adjustment $0.0 $23.6 Rest
Slide 17: FY'13 and FY'18 Non-GAAP Reconciliation (cont.)
FY’13 and FY’18 Non-GAAP Reconciliation (cont.) 2013 2018 $MMs % of Revenue $MMs % of Revenue GAAP Operating Income $251.7 11.0% $320.7 10.3% Acquired deferred revenue adjustment $0.0 $23.6 Restructuring charges and other costs $8.1 $8.7 Amortization of purchased intangible assets $162.8 $179.6 Stoc
Slide 18: Forward-looking statements
Forward-looking statements Certain statements made in this presentation, and any subsequent Q&A period, 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 Litigatio