Slide 1: Trimble Inc. Second Quarter 2024 Earnings Summary
Trimble Inc. Second Quarter 2024 Earnings Summary © 2024 Trimble, Inc - All Rights Reserved 1
Slide 2: 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 Litigation
Slide 3: Q2 2024 Earnings Call Agenda
Q2 2024 Earnings Call Agenda “We picked Trimble, not only for the current needs we have, but because I believe this is the system the rising generation of asset managers and maintenance workers will want to use because it was so Today’s Agenda visually appealing, easy to use and the 3D capabilities
Slide 4: Q2 Highlights
Q2 Highlights Simplified and Revenue and EPS Focused Above Midpoint Organization of Guidance Double-digit Record ARR and revenue and ARR Gross Profit growth in both Margins AECO & Transporeon Executing Connect and Scale Strategy for Sustainable Value Creation 4
Slide 5: Q2 2024 Financial Highlights
Q2 2024 Financial Highlights Revenue ARR $871M $2,113M Non-GAAP Above midpoint of guidance +14% organic as-reported (1) Gross Margin +1% organic as-reported(1) +14% organic as-adjusted(2) 66.5% +1% organic as-adjusted(2) Adjusted EBITDA Non-GAAP EPS 1H Free Cash Flow $214M $0.62 $300M 24.6% margin A
Slide 6: Q2 2024 Summary
Q2 2024 Summary ($M) Highlights / Drivers ● Connect & Scale strategy delivering Second Quarter, As-Adjusted (1) results ● Q2 growth and margins ahead of ($M) 2024 2023 YoY expectations led by continued strength in AECO segment Revenue $871 $860 +1% organic(2) ● 1H’24 as-adjusted organic revenue ARR
Slide 7: Architects, Engineers, Construction, Owners (AECO)
Architects, Engineers, Construction, Owners (AECO) ($M) Second Quarter Highlights / Drivers ($M) 2024 2023 YoY ● Revenue, ARR, and operating margin Revenue $300 $264 +14% organic delivered above expectations ● Strong Q2 annual contract value ARR $1,164 $985 +18% organic (ACV) bookings led by TC1 bun
Slide 8: Field Systems
Field Systems ($M) (1) Second Quarter, As-Adjusted Highlights / Drivers ($M) 2024 2023 YoY ● Organic revenue growth and operating margins were down Y:Y as expected, largely Revenue $379 $407 -8% organic(2) due to strong prior year Federal sales ARR $308 $266 +17% organic ● New products driving deman
Slide 9: Transportation & Logistics
Transportation & Logistics ($M) Second Quarter Highlights / Drivers ($M) 2024 2023 YoY ● Transportation revenue, ARR and Revenue $192 $189 +3% organic margins ahead of expectations ● Organic ARR growth of 6%; double ARR $641 $614 +6% organic digit ARR growth in Transporeon and Operating Income MAPS
Slide 10: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow ($M) 1H24 Cash Flow Balance Sheet Q2’24 ($M) 2024 2023 YoY ($M) Actual Operating Cash Flow $321 $351 -9% Cash and Equivalents $944 Total Debt $1,790 Capital Expenditures $21 $19 +11% Net Debt $846 Free Cash Flow $300 $332 -10% TTM Pro Forma Adjusted EBITDA(1) $892 Net Deb
Slide 11: Full Year 2024 Outlook
Full Year 2024 Outlook As-Reported (1) As-Adjusted (2) FY 2024 Outlook Notes Annualized Recurring +11% to +13% +11% to +13% Revenue (ARR) (Organic) (Organic) • Increasing midpoint of full year guidance for revenue and EPS Revenue YoY $3.59 to $3.67B $3.51 to $3.59B • Strong organic ARR growth expect
Slide 12: Q3 2024 Outlook
Q3 2024 Outlook Q3’24 Annualized Recurring Revenue Q3’24 Outlook Notes +11% to +13% organic (ARR) • Q3 revenue in line with Q2; organic Revenue YoY $840 to $880M growth improvement in Q3 primarily -12% to -8% as-reported(1) due to more favorable Y:Y comps in Field Total Growth Flat to +4% as-adjuste
Slide 13: Appendix & Reconciliations
Appendix & Reconciliations 13
Slide 14: AI Examples in Selected Trimble Products
AI Examples in Selected Trimble Products Automate the creation Visual rendering from simple Automatic Invoicing Functionality of objects in SketchUp Sketchup models with Microsoft Azure Autoshape in Sketchup for iPad Generative AI for Visualization Automatically turn paper and PDF invoices into unap
Slide 15: Segment Details and Outlook
Segment Details and Outlook (1),(2),(3),(4) AECO Field Systems Transportation and Logistics FY’23 FY’24 FY’23 FY’24 FY’23 FY’24 Actual Outlook Actual Outlook Actual Outlook $1.46B as-adjusted ≈$1.43B as-adjusted Revenue $1.11B ≈$1.34B $720M ≈$770M $1.97B as-reported ≈$1.52B as-reported +High teens/L
Slide 16: FY'24 Outlook Assumptions
FY’24 Outlook Assumptions As-Reported(1) FY’24 Growth by Segment Assumptions FY’24(1) Total Revenue Growth: As-Reported As-Adjusted Revenue Growth: AECO +High teens/low 20s +High teens/low 20s Organic 3% to 5% Field Systems Minus low 20%s Minus LSD Acquisition 2% Transportation & Logistics +MSD/HSD%
Slide 17: Historical segment financials (As-Reported)
Historical segment financials (As-Reported) Quarter Ended and Fiscal Year Ended, Revenue ($MMs) Q1-22 Q2-22 Q3-22 Q4-22 FY-22 Q1-23 Q2-23 Q3-23 Q4-23 FY-23 Q1-24 Q2-24 AECO $243 $222 $226 $251 $942 $288 $264 $270 $289 $1,111 $339 $300 Field Systems 596 575 520 461 2,151 480 541 495 452 1,968 419 379
Slide 18: Historical revenue growth metrics (As-Reported)
Historical revenue growth metrics (As-Reported) Revenue Growth Q1-23 Q2-23 Q3-23 Q4-23 FY-23 Q1-24 Q2-24 AECO: Organic 17% 15% 15% 14% 15% 18% 14% Acquisitions 5% 6% 4% 1% 4% 0% 0% Divestitures 0% -1% -1% -1% -1% -1% -1% Foreign Currency -3% -1% 1% 1% 0% +1% 0% Total 19% 19% 19% 15% 18% 18% 13% Fiel
Slide 19: Historical ARR growth metrics
Historical ARR growth metrics (As-Reported) Quarter Ended, ARR ($MMs) Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 AECO $924 $985 $1,022 $1,067 $1,094 $1,164 Field Systems 273 283 290 289 304 308 Transportation & Logistics 451 614 624 626 631 641 Total $1,648 $1,883 $1,935 $1,982 $2,029 $2,113 Organic ARR Gr
Slide 20: Historical segment financials (As-Adjusted)
Historical segment financials (As-Adjusted) Agriculture Business Q1-22 Q2-22 Q3-22 Q4-22 FY-22 Q1-23 Q2-23 Q3-23 Q4-23 FY-23 Q1-24 Q2-24 Agriculture ($MMs) Revenue $172 $151 $134 $122 $579 $146 $134 $119 $110 $508 $85 NA Operating Income 54 49 45 43 191 56 42 40 33 171 8 NA Operating Margin 31.4% 32.
Slide 21: Historical revenue growth metrics (As-Adjusted)
Historical revenue growth metrics (As-Adjusted) Revenue Growth Q1-23 Q2-23 Q3-23 Q4-23 FY-23 Q1-24 Q2-24 (As-Adjusted) Field Systems: Organic (as-adjusted) -10% 0% -3% 2% -3% 1% -8% Acquisitions (as-adjusted) 0% 0% 0% 0% 0% 0% 2% Divestitures (as-adjusted) -10% -4% 0% -2% -4% -1% -1% Foreign Currenc
Slide 22: As-Adjusted Reconciliation
As-Adjusted Reconciliation $ in MMs Q1’22 Q2’22 Q3’22 Q4’22 FY’22 Q1’23 Q2’23 Q3’23 Q4’23 FY’23 Q1’24 Q2’24 Revenue, As-Reported $994 $941 $885 $857 $3,676 $915 $994 $957 $932 $3,799 $953 $871 Less: Agriculture ($172) ($151) ($134) ($122) ($579) ($146) ($134) ($119) ($110) ($508) ($85) NA Revenue, A