Trimble Inc. (TRMB) Q3 2023 Earnings Call Transcript

Trimble Inc. (NASDAQ:TRMB) Q3 2023 Earnings Conference Call November 1, 2023 8:00 AM ET

Company Participants

Rob Painter - Chief Executive Officer
David Barnes - Chief Financial Officer

Conference Call Participants

Jerry Revich - Goldman Sachs
Rob Wertheimer - Melius Research
Rob Mason - Baird
Jonathan Ho - William Blair
Charles Dillard - Bernstein
Kristen Owen - Oppenheimer
Jason Celino - KeyBanc Capital Markets
Joshua Tilton - Wolfe Research
Clarke Jeffries - Piper Sandler

Operator

Thank you for standing by and welcome to the Trimble Third Quarter 2023 Results Call. [Operator Instructions] And finally, I would like to advise all participants that this call is being recorded. Thank you. I’d now like to welcome Rob Painter, Chief Executive Officer to begin the conference. Rob, over to you.

Rob Painter

Welcome, everyone. Before I get started, our presentation is available on our website and we ask that you refer to the Safe Harbor at the back. Our financial commentary today will reflect non-GAAP performance metrics, including organic growth comparisons, which refer to the corresponding period of last year unless otherwise noted.

Simplification, focus and execution are the themes of today. I will start with a review of the third quarter, then put a Trimble lens in the current market environment we see, followed by an overview of how we are taking action to maintain our strategic and financial progression.

Let’s begin on Slide 2 with a review of the third quarter. The clear highlights were continued ARR growth and gross margin progression, which translated into EBITDA progression. ARR stands at a record $1.94 billion, up 25% and up 13% organically. 50% of our revenue is now recurring. Gross margin finished at a record 65%, a reflection of our Connect and Scale strategy translating into a more durable and attractive business model. EBITDA at 28% is also a record. The big strategic news of the quarter