Trimble Inc. Reports Q2 2024 Revenue of $870.8 Million, Net Income Surge Due to Ag Divestiture

Trimble Inc. reported significant financial results for the second quarter of 2024, with total revenue reaching $870.8 million, a decrease of 12% compared to $993.6 million in the same quarter of 2023. The decline was primarily driven by a 35% drop in product revenue, which fell to $320.4 million from $490.5 million, while subscription and services revenue increased by 9% to $550.4 million. For the first two quarters of 2024, total revenue was $1.824 billion, down 4% from $1.909 billion in the prior year. The company reported a net income of $1.316 billion, a substantial increase from $44.6 million in the second quarter of 2023, largely due to a pre-tax gain of $1.7 billion from the divestiture of its agriculture business.

The financial performance reflects significant changes from the previous fiscal period, particularly the impact of the Ag divestiture, which closed in April 2024. This transaction resulted in cash proceeds of $1.9 billion and allowed Trimble to deconsolidate $457.3 million in net assets. The company also completed the acquisition of Transporeon GmbH in April 2023, a cloud-based transportation management software platform, which is expected to enhance its offerings in the Transportation and Logistics segment.

Operationally, Trimble's annualized recurring revenue (ARR) grew by 12% year-over-year to $2.113 billion, with organic growth of 14%. The company reported a total of 245.4 million shares outstanding at the end of the second quarter, with a diluted earnings per share of $5.34, compared to $0.18 in the same quarter last year. The company’s strategic focus on increasing its mix of recurring revenue is evident, as subscription and services revenue accounted for 75% of total revenue in the second quarter of 2024, up from 65% in the same quarter of 2023.

Geographically, Trimble's revenue from North America was $506.8 million, while Europe contributed $231.4 million, and the Asia Pacific region accounted for $89.4 million. The company continues to adapt its go-to-market strategies and expand its presence in various regions, which is reflected in the growth of its AECO (Architects, Engineers, Construction and Owners) segment, which saw a 13% increase in revenue to $299.7 million in the second quarter.

Looking ahead, Trimble anticipates that the strategic divestiture and acquisition will enhance its financial profile and flexibility, particularly by increasing the proportion of higher-margin software and services in its revenue mix. The company remains focused on executing its Connect and Scale strategy, which aims to drive productivity and growth across its diverse customer base. However, it also acknowledges potential challenges from macroeconomic conditions, including geopolitical tensions and inflationary pressures, which may impact future performance.