- Third Quarter 2018 GAAP Revenue $795.2 million; Non-GAAP Revenue $804.7 million
SUNNYVALE, Calif., Nov. 1, 2018 — (PRNewswire) — Trimble Inc. (NASDAQ: TRMB) today announced financial results for the third quarter of 2018.Third Quarter 2018 Financial Summary
Third quarter 2018 GAAP revenue of $795.2 million was up 18 percent as compared to the third quarter of 2017. Third quarter 2018 non-GAAP revenue of $804.7 million was up 19 percent as compared to the third quarter of 2017.
Buildings and Infrastructure revenue was $295.8 million, up 36 percent. Geospatial revenue was $185.4 million, up 9 percent. Resources and Utilities revenue was $133.2 million, up 13 percent. Transportation revenue was $190.3 million, up 11 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 $77.4 million, up 17 percent as compared to the third quarter of 2017. GAAP operating margin was 9.7 percent of revenue as compared to 9.8 percent of revenue in the third quarter of 2017.
GAAP net income was $73.7 million, up 29 percent as compared to the third quarter of 2017. Diluted GAAP earnings per share were $0.29 as compared to diluted GAAP earnings per share of $0.22 in the third quarter of 2017.
Non-GAAP operating income of $167.0 million was up 32 percent as compared to the third quarter of 2017. Non-GAAP operating margin was 20.8 percent of revenue as compared to 18.7 percent of revenue in the third quarter of 2017.
Non-GAAP net income of $125.2 million was up 23 percent as compared to the third quarter of 2017. Diluted non-GAAP earnings per share were $0.49 as compared to diluted non-GAAP earnings per share of $0.39 in the third quarter of 2017.
The GAAP tax rate for the quarter resulted in a benefit of 15 percent as compared to an expense of 20 percent in the third quarter of 2017, and the non-GAAP tax rate was 19 percent as compared to 23 percent in the third quarter of 2017.
Operating cash flow for the first three quarters of 2018 was $384.8 million, up 19 percent as compared to the first three quarters of 2017. Deferred revenue for the third quarter of 2018 was $364.3 million, up 28 percent as compared to the third quarter of 2017.
"Third quarter revenue was consistent with expectations and income exceeded expectations, with software revenue and gross margin performance providing much of the momentum," said Steven W. Berglund, Trimble's president and chief executive officer. "Although trade, currency and geopolitical considerations have introduced incremental uncertainties, we anticipate continuing improvement in both revenue and profitability in 2019."
Forward Looking Guidance
For the fourth quarter of 2018, Trimble expects to report GAAP revenue between $784 million and $814 million and GAAP earnings per share of $0.22 to $0.26, and non-GAAP revenue between $791 million and $821 million and non-GAAP earnings per share of $0.44 to $0.48. Non-GAAP guidance excludes purchase accounting adjustments to acquired deferred revenue of $7 million, purchase accounting adjustments for amortization of commission expense of $2 million, the amortization of intangibles of $46 million, anticipated acquisition costs of $2 million, the anticipated impact of stock-based compensation expense of $22 million, and $2 million in anticipated restructuring charges. GAAP guidance assumes a tax rate of 6 percent and non-GAAP guidance assumes a tax rate of 19 percent. Both GAAP and non-GAAP earnings per share assume approximately 255 million shares outstanding.
Investor Conference Call / Webcast Details
Trimble will hold a conference call on November 1 at 2:00 p.m. PT to review its third quarter 2018 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 7378187. The replay will also be available on the web at the address above.
Segment Data
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.
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
- Diluted non-GAAP earnings per share
- Non-GAAP tax rate
Beginning in the third quarter of 2018, the Company is reporting a non-GAAP revenue measure. Trimble believes this measure helps investors understand the performance of the business as non-GAAP revenue excludes the effects of certain acquired deferred revenue that was written down to fair value in purchase accounting. Management believes that excluding fair value purchase accounting adjustments more closely correlates with the ordinary and ongoing course of the acquired company's operations and facilitates analysis of revenue growth and business trends. Prior periods have also been restated to reflect this non-GAAP measure.
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 page of Trimble's website at:
http://investor.trimble.com .
