- Results in line with guidance
SUNNYVALE, Calif., July 31, 2019 — (PRNewswire) — Trimble Inc. (NASDAQ: TRMB) today announced financial results for the second quarter of 2019.Second Quarter 2019 Financial Summary
Second quarter 2019 GAAP revenue of $854.8 million was up 9 percent as compared to the second quarter of 2018. Second quarter 2019 non-GAAP revenue of $855.8 million was up 8 percent as compared to the second quarter of 2018.
Buildings and Infrastructure revenue was $339.9 million, up 22 percent. Geospatial revenue was $164.4 million, down 11 percent. Resources and Utilities revenue was $152.7 million, up 5 percent. Transportation revenue was $198.8 million, up 9 percent. Segment revenues reflect the results of Trimble's reportable segments under its management reporting system and are non-GAAP measures.
GAAP operating income was $109.7 million, up 23 percent as compared to the second quarter of 2018. GAAP operating margin was 12.8 percent of revenue as compared to 11.4 percent of revenue in the second quarter of 2018.
GAAP net income was $94.6 million, up 48 percent as compared to the second quarter of 2018. GAAP diluted earnings per share were $0.37 as compared to GAAP diluted earnings per share of $0.25 in the second quarter of 2018.
Non-GAAP operating income of $174.7 million was up 7 percent as compared to the second quarter of 2018. Non-GAAP operating margin was 20.4 percent of revenue as compared to 20.7 percent of revenue in the second quarter of 2018.
Non-GAAP net income of $133.8 million was up 3 percent as compared to the second quarter of 2018. Non-GAAP diluted earnings per share were $0.53 as compared to non-GAAP diluted earnings per share of $0.51 in the second quarter of 2018.
The GAAP tax rate for the quarter was 18 percent as compared to 19 percent in the second quarter of 2018, and the non-GAAP tax rate was 20 percent as compared to 19 percent in the second quarter of 2018.
Operating cash flow for the first two quarters of 2019 was $325.5 million, up 22 percent as compared to the first two quarters of 2018. Deferred revenue for the second quarter of 2019 was $452.4 million, up 27 percent as compared to the second quarter of 2018.
"Our second quarter results met expectations despite greater uncertainties," said Steven W. Berglund, Trimble's president and chief executive officer. "Although we anticipate market ambiguities to persist for the remainder of 2019, the business model transformation remains on track. Software, services, and recurring revenue grew by 22 percent in the quarter."
Forward Looking Guidance
For the third quarter of 2019, Trimble expects to report GAAP revenue between $789 million and $819 million and GAAP earnings per share of $0.24 to $0.28, and non-GAAP revenue between $789 million and $819 million and non-GAAP earnings per share of $0.45 to $0.49. GAAP guidance assumes a tax rate of 20 percent and non-GAAP guidance assumes a tax rate of 20 percent. Both GAAP and non-GAAP earnings per share assume approximately 254 million shares outstanding. For the fiscal year of 2019, Trimble expects to report GAAP revenue between $3.251 billion and $3.311 billion and GAAP earnings per share of $1.10 to $1.18, and non-GAAP revenue between $3.255 billion and $3.315 billion and non-GAAP earnings per share of $1.91 to $1.99. GAAP guidance assumes a tax rate of 18 percent and non-GAAP guidance assumes a tax rate of 20 percent. Both GAAP and non-GAAP earnings per share assume approximately 254 million shares outstanding. A reconciliation of the non-GAAP measures to the most directly comparable GAAP measures and other information relating to these non-GAAP measures are included in the supplemental reconciliation schedule attached.
Investor Conference Call / Webcast Details
Trimble will hold a conference call on July 31 at 2:00 p.m. PT to review its second quarter 2019 results. An accompanying slide presentation will be made available on the "Investors" section of the Trimble website, www.trimble.com, under the subheading "Events & Presentations." The call will be broadcast live on the web at http://investor.trimble.com. Investors without internet access may dial into the call at (800) 528-9198 (U.S.) or (702) 928-6633 (international). The passcode is 1082008. The replay will also be available on the web at the address above.
Use of Non-GAAP Financial Information
In addition to financial information prepared in accordance with GAAP, this press release also contains certain non-GAAP financial measures based upon management's view of performance, including:
- Non-GAAP revenue
- Non-GAAP recurring revenue
- Non-GAAP operating income
- Non-GAAP operating margin
- Non-GAAP net income
- Non-GAAP diluted earnings per share
- Non-GAAP tax rate
Trimble uses Non-GAAP Recurring Revenue as a component of its performance measure Annualized Recurring Revenue in order to provide investors with a supplementary indicator of the value of the Company's current recurring revenue contracts. For the second quarter of 2019, recurring revenue on a GAAP basis was $272.4 million, and non-GAAP recurring revenue was $273.4 million, which excluded $1.0 million related to the elimination of the deferred revenue adjustment in connection with acquisitions.
Segment data reflects the results of Trimble's reportable segments under its management reporting system. Segment revenue and operating income are consistent with the respective non-GAAP measures discussed below and in the attached supplemental schedules. Investors are encouraged to review the specific non-GAAP measures, which Trimble uses along with a reconciliation to the nearest comparable GAAP measures and the explanation for why these non-GAAP measures provide useful information to investors regarding the financial condition and results of operations and why management chose to exclude selected items, which can be found at the end of this press release. Additional financial information about Trimble's use of non-GAAP results can be found on the investor relations section of Trimble's website at:
http://investor.trimble.com .
