Trimble Inc. announced financial results for the first quarter of 2022.

First Quarter 2022 Financial Highlights

• Revenue of $993.7 million, up 12% year over year

• Annualized recurring revenue (ARR) was $1.47 billion, up 12% year over year

• GAAP operating income was $156.9 million and non-GAAP operating income was $233.1 million

• GAAP net income was $110.3 million and non-GAAP net income was $184.8 million

• Diluted earnings per share was $0.44 on a GAAP basis and $0.73 on a non-GAAP basis

• Adjusted EBITDA of $253.3 million, 25.5 percent of revenue

• Share repurchases of $104.7 million

Executive Quote

"Trimble is a purpose-driven company, transforming and digitizing industries that support how we live, what we eat, how we move," said Rob Painter, Trimble's president and chief executive officer. "Record total revenue and annualized recurring revenue demonstrate the value of our continuing growth and commitment to innovation and sustainability. Excluding the impact of our recently announced divestitures and recent changes in foreign exchange rates, our updated guidance reflects a projection of higher ARR growth, revenue and earnings."

Analyst Commentary

Analysis of the earnings report from J.P. Morgan forecast 2Q22 revenue "approximately flat year-over-year at $944 million at non-GAAP operating margin of 23.1%."

"By segment, we estimate Buildings & Infrastructure revenue roughly flat at $366MM at non-GAAP operating margin of 28.5%, Geospatial revenue down 5% to $208MM at non-GAAP operating margin of 30.0%, Resources & Utilities revenue up 8% to $214MM at non-GAAP operating margin of 33.0%, and Transportation revenue down 5% to $156MM at non-GAAP operating margin of 8.5%.

"For FY22, we are modeling non-GAAP EPS of $2.88 (vs. prior $2.83) on revenue up 5% to $3.86B at non-GAAP operating margin of 24.2%. For FY23, we forecast non-GAAP EPS of $3.11 (vs. prior $3.08) on revenue up 4% to $4.01B at non-GAAP operating margin of 24.9%."