- Earnings per share exceed guidance

SUNNYVALE, Calif., May 6, 2020 — (PRNewswire) — Trimble Inc. (NASDAQ: TRMB) today announced financial results for the first quarter of 2020.

First Quarter 2020 Financial Summary

First quarter 2020 GAAP revenue of $792.3 million was down 1 percent as compared to the first quarter of 2019. First quarter 2020 non-GAAP revenue of $794.0 million was down 1 percent as compared to the first quarter of 2019.

Buildings and Infrastructure revenue was $296.9 million, up 1 percent. Geospatial revenue was $146.2 million, down 9 percent. Resources and Utilities revenue was $180.3 million, up 13 percent. Transportation revenue was $170.6 million, down 10 percent.

GAAP operating income was $98.3 million, up 14 percent as compared to the first quarter of 2019. GAAP operating margin was 12.4 percent of revenue as compared to 10.8 percent of revenue in the first quarter of 2019.

GAAP net income was $61.9 million, down 1 percent as compared to the first quarter of 2019. GAAP diluted earnings per share were both $0.25 in the first quarter of 2020 and 2019.

Non-GAAP operating income of $161.2 million was up 4 percent as compared to the first quarter of 2019. Non-GAAP operating margin was 20.3 percent of revenue as compared to 19.4 percent of revenue in the first quarter of 2019.

Non-GAAP net income of $122.5 million was up 8 percent as compared to the first quarter of 2019. Non-GAAP diluted earnings per share were $0.49 as compared to non-GAAP diluted earnings per share of $0.45 in the first quarter of 2019.

The GAAP tax rate for the quarter was 22.0 percent as compared to 17.0 percent in the first quarter of 2019, and the non-GAAP tax rate was 17.5 percent as compared to 20.0 percent in the first quarter of 2019.

Operating cash flow for the first quarter of 2020 was $155.7 million, up 5 percent as compared to the first quarter of 2019. Deferred revenue for the first quarter of 2020 was $551.5 million, up 19 percent as compared to the first quarter of 2019.

During the first quarter, Trimble repurchased approximately 1.2 million shares of its common stock for $50 million. Given the current environment, the Company has suspended further stock repurchases.

"During these unprecedented times, the health and safety of our employees, dealers, partners, and customers is our first priority," said Rob Painter, Trimble's president and chief executive officer. "Our businesses remain essential and we are fully committed to achieving our purpose, to transform the way the world works, and to leverage technology to bring productivity and connectivity to our end markets. In today's distributed and remote work environments, now more than ever technology can be used to help our customers complete and coordinate tasks, increase productivity, and achieve more in their daily work. We have taken decisive action to ensure safe working environments and to enhance our financial position, which will enable us to stay focused on our Connect & Scale 2025 strategy."

Forward Looking Guidance

Trimble's financial results for the remainder of 2020 will be impacted by continued global economic uncertainty due to the COVID-19 pandemic. As such, Trimble is not providing a financial outlook for the second quarter of 2020 or the remainder of 2020 at this time.

Investor Conference Call / Webcast Details

Trimble will hold a conference call on May 6 at 2:00 p.m. PT to review its first quarter 2020 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 (833) 644-0704 (U.S.) or (469) 565-9962 (international). The passcode is 7189788. 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 (ARR) in order to provide investors with a supplementary indicator of the value of the Company's current recurring revenue contracts. For the first quarter of 2020, recurring revenue on a GAAP basis was $284.9 million, and non-GAAP recurring revenue was $285.6 million, which excluded $0.7 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.

Annualized Recurring Revenue

In addition to providing financial measures, Trimble provides an annualized recurring revenue performance measure. ARR is calculated by dividing Non-GAAP recurring revenue for the current quarter by the number of days in the quarter, and multiplying by 365. ARR should be viewed independently of revenue and deferred revenue as it is a performance measure and is not intended to be combined with or to replace either of those items.

About Trimble

Trimble is transforming the way the world works by delivering products and services that connect the physical and digital worlds. Core technologies in positioning, modeling, connectivity and data analytics enable customers to improve productivity, quality, safety and sustainability. From purpose built products to enterprise lifecycle solutions, Trimble software, hardware and services are transforming industries such as agriculture, construction, geospatial and transportation. For more information about Trimble (NASDAQ: TRMB ), visit: www.trimble.com .