Trimble Inc (TRMB) Reports 8% YoY Revenue Growth in Q3 2023
Trimble Inc (NASDAQ:TRMB) reports Q3 2023 total revenue of $957 million, up 8% YoY.
Annualized recurring revenue (ARR) reached a record $1.94 billion, up 25% YoY.
GAAP net income stood at $74.9 million, with diluted earnings per share (EPS) of $0.30.
Non-GAAP net income was $170.2 million, with non-GAAP EPS of $0.68.
Trimble Inc (NASDAQ:TRMB) released its third-quarter 2023 earnings on November 1, 2023. The company reported a total revenue of $957.3 million, marking an 8% increase on a year-over-year basis. The annualized recurring revenue (ARR) was $1.94 billion, up 25% year-over-year. The GAAP operating income was $121.3 million and non-GAAP operating income was $251.0 million.
Financial Highlights
The company's GAAP net income was $74.9 million and non-GAAP net income was $170.2 million. The diluted earnings per share (EPS) was $0.30 on a GAAP basis and $0.68 on a non-GAAP basis. The adjusted EBITDA of the company was $268.2 million, making up 28.0 percent of the revenue.
Trimble's president and chief executive officer, Rob Painter, commented on the results,
Record annualized recurring revenue of $1.94 billion and record gross margin of 65.0% in this third quarter demonstrate progression of the Connect & Scale strategy. In an increasingly difficult macroeconomic environment, we continue to simplify and focus our business to execute to our full potential."
Financial Tables Summary
The company's revenue from products was $444.0 million, while subscription and services contributed $513.3 million. The total cost of sales was $367.1 million, resulting in a gross margin of $590.2 million or 61.7%.
Operating expenses, including research and development, sales and marketing, general and administrative, restructuring charges, and amortization of purchased intangible assets, totaled $468.9 million. This resulted in an operating income of $121.3 million.
Performance Analysis
Trimble Inc (NASDAQ:TRMB) demonstrated strong performance in Q3 2023, with significant growth in total revenue and ARR. The company's focus on its Connect & Scale strategy has resulted in a record gross margin of 65.0%. Despite a challenging macroeconomic environment, the company continues to streamline its operations to maximize potential.
However, the company's GAAP net income and EPS saw a decline compared to the non-GAAP figures, indicating the impact of certain one-time expenses and adjustments. It will be crucial for investors to monitor how Trimble navigates these challenges in the coming quarters.
For the full-year 2023, Trimble now expects to report revenue between $3,757 million and $3,797 million, GAAP EPS of $1.15 to $1.23, and non-GAAP EPS of $2.58 to $2.66.
Explore the complete 8-K earnings release (here) from Trimble Inc for further details.
This article first appeared on GuruFocus.
