Trimble Inc. · NASDAQ:TRMB

Trimble — Q3 2019 Earnings Presentation

12 slides from Trimble's earnings presentation, Oct 30, 2019

  1. Slide 1: Trimble Third Quarter 2019 Results Summary

    Trimble Third Quarter 2019 Results Summary

  2. 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

  3. Slide 3: Agenda

    Agenda ▪ CEO Introduction ▪ CFO Review of Results ▪ Guidance ▪ Q&A 3

  4. Slide 4: Third quarter 2019 highlights

    Third quarter 2019 highlights ▪ Third quarter non-GAAP revenue of $784 million, down 2.5% total, -2.5% organic, +1% M&A, -1% FX ▪ Annualized recurring revenue of ≈$1.1 billion, up 8% Financial ▪ Adjusted EBITDA margins of 23.0%, flat year over year Highlights ▪ Free cash flow $408 million YTD, up 23

  5. Slide 5: Third quarter 2019 financial summary

    Third quarter 2019 financial summary $M, Except Per Share Third Quarter of Non-GAAP Income Statement Highlights 2018 2019 Y/Y Change Revenue $804.7 $784.3 -2.5% ▪ Non-GAAP Revenue: -2.5% y/y; Gross Margin % of Revenue 57.9% 57.0% -90bps – Organic -2.5% Adjusted EBITDA $184.8 $180.2 -2% – Currency tr

  6. Slide 6: Financial metric highlights

    Financial metric highlights Annualized recurring $1.8B in TTM software, services YTD free cash revenue ≈$1.1B and recurring revenue flow up +23% (+8% growth) (+20% growth) TTM research & development Approx. $1.1B backlog 14.3% of revenue (>65% of R&D in software) $419M deferred Net working capital +

  7. Slide 7: Non-GAAP revenue by reporting segment

    Non-GAAP revenue by reporting segment TTM Growth $M Q3’19 Q3’19 vs. Q3’18 Growth % Key Factors CAGR % M&A/ Revenue Organic FX Total 1 Year 3 Year Divestiture  Growth in buildings and civil construction Buildings &  Subscription conversion exceeding expectations but impacting $309.8 +6% +0% -1% +5%

  8. Slide 8: Non-GAAP operating income by reporting segment

    Non-GAAP operating income by reporting segment TTM Growth $M, Non-GAAP Q3’19 TTM Q3’19 Q3’19 Y/Y Key Factors CAGR % Operating Operating Growth vs. Operating Operating 1 Year 3 Year income $ income % Q3’18 income $ income %  Software revenue mix driving Buildings & Infrastructure $81.7 26.4% +20% $3

  9. Slide 9: Non-GAAP revenue by region

    Non-GAAP revenue by region % of Total % Change Q3’18 Q3’19 Y/Y Quarterly Y/Y TTM North America 56% 56% -3% +9% Europe 25% 26% +1% +8% Asia-Pacific 14% 12% -18% -9% Rest of World 5% 6% +27% +10% Total 100% 100% -3% +6% Figures may vary due to rounding. 9

  10. Slide 10: Non-GAAP revenue mix, trailing 12 month growth

    Non-GAAP revenue mix, trailing 12 month growth [ Recurring + Software & Services = SW, Services, Recurring ] + Hardware = Total Revenue $1,812M $1,534M $3,238M $1,079M $733M $1,426M $3,040M $866M $1,507M $641M TTM Q4'17 TTM TTMQ3’18 Q3’19 TTM Q4'18 TTM TTMQ3’18 TTMQ4'18 Q4'17 TTM Q3’19 TTM Q4'17 TTM

  11. Slide 11: Guidance and outlook

    Guidance and outlook ▪ Non-GAAP revenue of $770 to $800 million ▪ -3% to +1% total growth; -3% to +1% organic, +1% M&A, -1% FX Fourth ▪ Non-GAAP EPS of $0.46 to $0.50 per share Quarter ▪ Income from equity method investments ≈$6M 2019 ▪ Net interest expense ≈$20M ▪ Non-GAAP tax rate of 19%, 252M sha

  12. Slide 12: Q&A

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