Trimble Shares Fall On Q3 Revenue Miss As Macro Challenges Weigh; Slashes FY22 Outlook

Trimble Inc TRMB reported third-quarter FY22 organic revenue growth of 6% year-on-year to $884.9 million, missing the consensus of $910.7 million.
Annualized recurring revenue was $1.55 billion, up 16% Y/Y on an organic basis.
Product revenue declined 8.6% Y/Y to $503.9 million. Service revenue fell by 1% Y/Y to $158.3 million.
Subscription revenue rose 17% Y/Y to $222.7 million.
Non-GAAP gross margin expanded by 220 bps to 60.9%. Non-GAAP EPS of $0.66 matched the consensus.
Trimble held $308.7 million in cash and equivalents.
CEO Rob Painter said, "Our third quarter results simultaneously reflect the quality of the Trimble financial model and the reality of evolving macroeconomic challenges. We remain committed to executing our Connect and Scale strategy, which enhances productivity and sustainability outcomes for our customers."
Outlook: Trimble cut the FY22 revenue guidance from $3.76 billion - $3.82 billion to $3.665 billion - $3.715 billion, below the consensus of $3.78 billion.
Trimble slashed the non-GAAP EPS outlook from $2.70 - $2.80 to $2.61 - $2.67 against the Street view of $2.75.
Price Action: TRMB shares traded lower by 6.70% at $55.88 on the last check Wednesday.
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