Trimble Inc. Beats Market Expectations with $0.89 Non-GAAP EPS in Q4 FY2024

Trimble Inc. (NASDAQ: TRMB) has reported its financial results for the fourth quarter of fiscal year 2024, showcasing a solid performance with notable growth in several key areas. The company achieved a revenue of $983.4 million, marking a 5% increase compared to the same quarter the previous year. This growth was even more impressive on an organic basis, with a 17% rise. The company’s annualized recurring revenue (ARR) also reached a record $2.26 billion, reflecting a 14% year-over-year increase. This surge in ARR underscores the company’s strategic focus on subscription-based revenue streams, aligning with its broader business transformation goals.

In terms of profitability, Trimble’s GAAP operating income for the quarter stood at $173.5 million, representing 17.6% of the total revenue. On a non-GAAP basis, operating income was even higher at $283.6 million, accounting for 28.8% of revenue. The company’s GAAP net income was reported at $90.2 million, while non-GAAP net income reached $221.5 million. These figures translate to a diluted earnings per share (EPS) of $0.36 on a GAAP basis and $0.89 on a non-GAAP basis. The adjusted EBITDA for the quarter was $298.1 million, which is 30.3% of the revenue, highlighting Trimble’s strong operational efficiency during this period.

The company’s CEO, Rob Painter, emphasized that fiscal 2024 was a transformative year for Trimble. The company not only simplified and focused its portfolio but also achieved record levels of software as a percentage of total revenue. This strategic shift has been instrumental in driving the company’s growth and profitability, setting a strong foundation for future performance. Additionally, Trimble’s decision to authorize a $1 billion share repurchase program reflects its confidence in its financial position and future prospects.

Trimble Beats Market Expectations with Fourth-Quarter Results

Trimble’s fourth-quarter performance exceeded market expectations, particularly in terms of earnings per share (EPS) and revenue. The company reported a non-GAAP EPS of $0.89, surpassing the anticipated $0.88. This slight outperformance indicates effective cost management and operational execution. Revenue for the quarter was $983.4 million, which was notably higher than the expected $946.62 million. This revenue beat highlights Trimble’s ability to capitalize on its strategic initiatives and capture market opportunities.

The company’s focus on subscription and service-based revenue models has been a significant driver of this outperformance. Subscription and services revenue for the quarter amounted to $694.5 million, up from $529.6 million in the same quarter of the previous year. This shift towards recurring revenue streams has provided Trimble with greater revenue stability and predictability, allowing it to better align with investor expectations.

Comparing Trimble’s performance to the previous year, the company’s gross margin improved significantly, rising from 61.9% to 69.3%. This improvement reflects a favorable mix shift towards higher-margin software and service offerings. The company’s strategic divestiture of its Mobility segment also contributed to this enhanced margin profile, allowing Trimble to focus on its core competencies and more profitable business segments.

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Trimble Sets Revenue Target Between $3.37B and $3.47B for Fiscal Year 2025

Trimble has provided guidance for fiscal year 2025, setting a revenue target between $3,370 million and $3,470 million. The company also anticipates GAAP earnings per share to range from $1.46 to $1.67, while non-GAAP earnings per share are expected to be between $2.76 and $2.98. This guidance reflects Trimble’s confidence in its strategic initiatives and its ability to navigate potential market challenges.

For the first quarter of 2025, Trimble projects revenue between $794 million and $824 million. The expected GAAP earnings per share for this period is set between $0.21 and $0.27, with non-GAAP earnings per share anticipated to range from $0.55 to $0.61. These projections incorporate the impact of the recent Mobility divestiture, which closed on February 8, 2025. The divestiture is expected to streamline Trimble’s operations and enhance its focus on its core business segments.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.