Trimble Misses Q1 Topline, Boosts FY23 Revenue To Reflect Transporeon Synergies

Trimble Inc TRMB reported a first-quarter FY23 revenue decline of 8% to $915.4 million, missing the consensus of $930.88 million. Revenue declined by 3% Y/Y on an organic basis.

• Annualized recurring revenue was $1.65 billion, up 13% Y/Y on an organic basis.
• Product revenue declined 23.4% Y/Y to $434.4 million. Subscription and services grew by 12.7% Y/Y to $481 million. 
• Non-GAAP gross margin expanded by 630 bps to 64.2%. Non-GAAP EPS of $0.72 beat the consensus of $0.67.
• Trimble held $1.04 billion in cash and equivalents.
• "Record annualized recurring revenue of $1.65 billion and record gross margin of 64.2 percent in the first quarter demonstrates the quality of our Connect and Scale strategy," said Rob Painter, Trimble's president and chief executive officer.
• FY23 Outlook: The Westminster, Colorado-based company updated its guidance to reflect the Transporeon acquisition.
• Trimble now anticipates revenue of $3.835 billion - $3.935 billion.
• That's up from $3.7 billion - $3.8 billion.
• It also expects non-GAAP EPS of $2.52 to $2.72, down from $2.66 - $2.86 against the Street view of $2.73.
• Trimble expects Q2 revenue of $962 million - $992 million (consensus $950.19 million) and non-GAAP EPS of $0.55 - $0.61 (consensus $0.67).

Price Action: TRMB shares closed lower by 1.98% at $45.98 on Tuesday.