- Results in line with guidanceSUNNYVALE, Calif., May 1, 2019 — (PRNewswire) — Trimble Inc. (NASDAQ: TRMB) today announced financial results for the first quarter of 2019.
First Quarter 2019 Financial Summary
First quarter 2019 GAAP revenue of $801.6 million was up 8 percent as compared to the first quarter of 2018. First quarter 2019 non-GAAP revenue of $804.5 million was up 8 percent as compared to the first quarter of 2018.
Buildings and Infrastructure revenue was $294.7 million, up 30 percent. Geospatial revenue was $161.2 million, down 8 percent. Resources and Utilities revenue was $159.5 million, flat on a year-over-year basis. Transportation revenue was $189.1 million, up 3 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 $86.3 million, up 34 percent as compared to the first quarter of 2018. GAAP operating margin was 10.8 percent of revenue as compared to 8.6 percent of revenue in the first quarter of 2018.
GAAP net income was $62.3 million, up 6 percent as compared to the first quarter of 2018. GAAP diluted earnings per share were $0.25 as compared to GAAP diluted earnings per share of $0.23 in the first quarter of 2018.
Non-GAAP operating income of $152.9 million was up 8 percent as compared to the first quarter of 2018. Non-GAAP operating margin was 19.0 percent of revenue in both the first quarter of 2019 and 2018.
Non-GAAP net income of $113.6 million was down 1 percent as compared to the first quarter of 2018. Non-GAAP diluted earnings per share was $0.45 in both the first quarter of 2019 and 2018.
The GAAP tax rate for the quarter was 17 percent as compared to 12 percent in the first quarter of 2018, and the non-GAAP tax rate was 20 percent as compared to 19 percent in the first quarter of 2018.
Operating cash flow for the first quarter of 2019 was $147.6 million, up 78 percent as compared to the first quarter of 2018. Deferred revenue for the first quarter of 2019 was $464.4 million, up 29 percent as compared to the first quarter of 2018.
"Our first quarter results met expectations despite trade uncertainties and lower growth in China," said Steven W. Berglund, Trimble's president and chief executive officer. "Our recurring revenue demonstrated significant growth in our end-user markets and our ongoing transition to higher subscription content remains on course."
Forward Looking Guidance
For the second quarter of 2019, Trimble expects to report GAAP revenue between $849 million and $879 million and GAAP earnings per share of $0.31 to $0.35, and non-GAAP revenue between $850 million and $880 million and non-GAAP earnings per share of $0.52 to $0.56. GAAP guidance assumes a tax rate of 16 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 May 1 at 2:00 p.m. PT to review its first 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 9089723. 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 operating income
- Non-GAAP operating margin
- Non-GAAP net income
- Non-GAAP diluted earnings per share
- Non-GAAP tax rate
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.
Annualized Recurring Revenue
Annualized recurring revenue refers to quarterly, recurring revenue multiplied by four. A schedule detailing recurring revenue is available on the "Investors" section of the Trimble website at
http://investor.trimble.com. For the first quarter of 2019, recurring revenue on a GAAP basis was $263.7 million , and non-GAAP recurring revenue was $266.6 million , which excluded $2.9 million related to the elimination of the deferred revenue adjustment in connection with acquisitions.