TRMB - Earnings call transcript Q4 2024

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Operator

Ladies and gentlemen, thank you for standing by. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to the Trimble Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions]

And I will now like to turn the conference over to Rob Painter, President and CEO. begin. may you Rob,

Robert Painter

everyone. Welcome,

get website, started, statement. available I presentation our please refer our and harbor on to Before is the safe

Our the non-GAAP comparisons financial noted. prior reflect including otherwise commentary growth organic year performance unless which period corresponding metrics, to of the refers will

which mobility in our addition, business XXXX. extra we had basis, and fourth will agriculture quarter business, on an emphasize the In our comparables our the of commentary as-adjusted P&L excludes recently divested week

the year ended an on emphatically We Starting Slide note. on strong X.

quarter we as-adjusted reported, represent the ARR to at is the our his for revenue and partners. As necessary margins XX%. the up crossed the fiscal were XXXX. Kudos $XXX $X.XX our through basis, that billion us performance correct revenue set of walk the X% with of time fourth at first all quarter Gross million, additional global and have and to guidance. midpoint $X.XX XX.X% details as-adjusted up in ARR Phil On X% colleagues an EPS for at baseline was level. for XX% year which above at commentary, will the

Slide Moving X. to

year performance quarter Our fourth a Trimble. capped the transformative in for

we call For those to strategy, the Trimble Connect & newer Scale. our story,

work market of is over digitizing underpenetrated and technology These addressable combined large, the industries. markets transportation $XX Our are and in transforming a geospatial construction, and global, with underserved billion.

strengthened report Trimble. By executing X now and the with we We aligned focused strategy, to leadership structure. our simplified, have segments under perfectly

ARR to billion. and over basis, compounding and to between business of increased to the basis XX% XXXX, and covering services of increased an in points. process Gross have XXXX at as as-reported model overall a revenue. X,XXX percent returns. overall We transformed and Recurring billion in revenue financial margins over $X.X from our have also increased doubled XX.X% $X.XX XX% revenue software compelling XXXX On

ending points with at XXX EBITDA has XX.X%. All of over XXXX of translated into improvement basis this

at of At our out deliver our billion of outlined technology intersection revenue the EBITDA and detailing we and Investor ] deliver poised [ our to our transformative our go-to-market. laid our direction billion the ambition Day progression product, in outcomes December, customers, of win X-X-XX and strategy compelling right of $X ARR, are we shareholders. for XXXX delivering By returns to through to margins. to XX% We $X

the few Scale last Today, strategic of areas. highlight & X I'll progression Connect months in

product our and we the second, First, allocation. through and partners. In technology quarter, go-to-market third, customers customers; fourth and our of thousands with lens capital the of innovation; engaged

which more could we built at and on Conference focused offsite attendees. at industry, demonstrate solutions the site and the field the our engineering dirt. User the construction registered venue in had proven ground We purpose Dimensions sessions Our than ran X,XXX on where

innovation point our the life base vast opportunity the to industry. engineering We we to construction continuum progression of to ecosystems. This move solutions product installed cycle showcase the we across and from had the workflow as progression uniquely leverages have

large of the cover is off-site of AECO AECO evidenced offering partners ACV quarter. of are unique and array showcase onboard able technology, strong is in to field in we value of more ecosystem in the ARR demonstrated offboard XX the Systems. on a in by record OEM types, value unique The the our pictured the connectivity. this were and the serving in growth unique to to bookings evidence venue, both At Further workflow we Field level machine and slide, office than our

and customers to solutions our asking hear opportunities environment. connected in our customers. and us see address we construction similar delivered as data-rich They common increasingly transportation, In seek a data

is job control. doing challenged, macros market controlling what remain our freight can the team we good a While

fourth the achieved Transporeon business of year. level the quarter an bookings both record in example, and all-time For the

growth, go-to-market well to is across taken its return positioned with the markets the that potential financial the better to our direction Complementing is has business true hold the Trimble. initiatives innovation never of When showcase the unlock to product company, potential. this freight have aligned been which

innovation positioning collaboration through technologies, of of millions core to through leveraging continue in Trimble. thousands. technology be billions run we with programs to billions, forward We AI of Trimble. progress positioned front, visualization. dollars we state-of-the-art the Tens of and a well freight data-centric run construction On the and connectivity, trillion are and winner believe along Trillions world,

and field of of world roadways the by software. our We users have real of thousands operated millions and of our Trimble machines instruments manage We millions in miles in the have out of of we hundreds technology.

months, amplify Over AI continue pro customer productivity, increased support adoption agents drive into drive to product to launching managers our creativity the and expansion. potential both been will technology we We've and value. internal fuel have we and own to The is better the sellers. to lean of few exciting, to last our efficiencies and the customers,

front. the X with our allocation February mobility Finally, closed which Starting of topics capital divestiture I'll cover business, on on we the X.

ongoing telemetry We refreshed set relationship science our and and with are an in platform with broad commercial more. and of including visibility, capabilities, their procurement navigation, significant scheduling, a team important running, freight we dispatch shareholder maintenance to link

our under represented investment the than of are be our We method accounting rather will cost on where this investment the [indiscernible] P&L. non-GAAP for accounting,

our executing plan. share committed to remain we Second, buyback

continue as repurchasing share that believe attractive stock our an given opportunity for capital today. Trimble We to price deployment

our we authorization announcing our As recuse Board of today, are commitment, further $X that our billion. to evidence increased

offense intend have momentum Tuck-in front. our AECO, and the years. and category, to strength past with building are quickly strategy and of the the had success particularly on play business success in the we underlying our moves the acquisition be put the hands executing given have opportunities the over demonstrated we in sellers most Third, platform that the such integrate on in we obvious can few TCX

we with in opportunistically buying from instruction own on back our opportunities anchored returns compared bar large enters high, trading gives find below at shares our We for can drive leverage ROI generation the XXXX consider us we Collectively, focus value shares. also generate disciplined we good a themselves, shareholders. be our they and particularly this and should Though sheet will balance a Trimble present to with of the options software. will range strong with continued levels free as flow well targets consider to cash attractive.

Phil, you. over to

Phil Sawarynski

Thanks, Rob. On our with amended XX-K January along for second XXXX our first, of XX, XXXX. third we the filed quarters XX-Qs and

process, there no messaged to our financial As is filed results. we throughout the change

that focused now delays, on working work news the timeline filing is audit. of the XXXX the our audit builds complete provider XXXX the is compressed. attention The work. is good with full audit Our that XXXX the The XXXX to on is because challenge

We is solely the due are are At the after working under date file due to the we extension that our likely time, XX-K this to believe within timing. would rules. delays SEC to XX-day allowed XXXX any be tight to March filing file X our and

hard working doing course, can to of file time. are, on We and we our XX-K everything

Let's recent license for week XXXX review Unless XXrd numbers, be year I'll as fourth Slide divestitures noted, X quarter renewals. the including effects adjusted our talking on and in which term the about January otherwise of the the the the X. remove

up quarter reconciliation $X.XX quarter and didn't are additional points. basis the reason The primarily X% an EPS Reported was see and at due expanded for EPS which $X.XX nearly for of compensation commissions. even outperform year. to sales additional and XXX for larger revenue XX%. year achieved up provided incentive margins in year, the As was organic EBITDA We we reported the the the both with the along numbers, the was for and for ARR X% of with the quarter appendix, XX.X% accruals

Moving and Slide to cash the balance items X. sheet on flow

and costs, was rate over year a the of million represents for payments $XXX flow conversion was to flow approximately Adjusting net $XXX tax cash with $XXX free million income. million, a of reported cash conversion X.XX Xx. rate Our which of for MA-related transaction

than a with Our of X.Xx. million balance long-term Xx of ratio and our of cash below sheet which targeted is well rate $XXX strong leverage is less over

Let's and quarter the income shift numbers and and Slide This with guidance. $X.X on of segment the ARR operating review is to well above growth ARR revenue year. billion and a year a AECO XX% scaled and with the business of Rule at we for XX.X% operating the the X. Starting nearing quarter for the XX. before close of

a fact, for full Rule and increased in of XX% ongoing year. over the ARR greater rate than long-term commitment to XX grow the both ACV quarter, our it at mid-teens. our to the quarter model bookings the was In momentum providing in

cross-selling the upselling and pleased One We as in are with level Construction well Trimble as a ongoing performance growth of especially initiatives. of our offerings

Slide Field X. on Systems Next,

year demonstrates growth for year, model in in up particular positively the intentionality note, basis, our conversions. slightly the the of an was at half year While organic for the was the X% Of it ARR down the and second and inflected quarter XX% of quarter. on business fourth the revenue

these noted XX.X% that must transitions market business growth, operating these revenue the XXX every be while In we have the revenue XXXX conversions executed to margins the expand. increasing the be almost implemented annual were points have at year. headwind recurring looked be the seen thus, It changes, where also team on in combination. for X noted It that basis we income further should to addressable

Operating growth bookings deliver the Revenue XX.X% freight growth Logistics segment and in for and Scale environment to from including and and year, our business. is by Maps for up with for American the replicated average being several the the a Transportation Slide year. playbook North year, Transporeon X% business quarter Transportation XX. the continues ARR the segment. customers on Finally, were strong were double-digit Transporeon cross-sells with above Connect & both led the as margins challenging the

of context translation. what we tariffs few related new impact foreign set know we any to today, we considerations modeled Before turn tariffs not currency to on into and have guidance, let's a guidance. Based our with

our Trimble Given supply the confident are navigate geographic centricity of can of with diversity financial today chains, environment software we impact. and revenue the and we the minimal

has With workforce. our EPS moves global currency, foreign naturally to has currency against hedged [indiscernible] been our given respect

of However, the EPS. in translation slight the flow to we with currency to U.S. AECO a expect through Transporeon amount foreign headwind growth outside now and

our For under to as-adjusted revenue one is low the of implies EPS. our month This EPS mobility $X.XX basis, XXXX mid-teens model. EPS. includes On an our and midpoint guidance, $XX EPS billion XX, and with year-over-year, on of million of with guide guidance consistent Slide growth $X.XX long-term approximately as-reported $X.XX

and provided of million our Day, incorporated year approximately full we XXXX dollar initial to strong and in currency constant the currency fiscal raised minus of have minus we assumes of our Investor and have we holds minus revenue into EPS guidance our at guidance. EPS basis, revenue December Relative a million, foreign guidance $X.XX. ARR guidance our impacts $XX U.S. on on Our $XX

the expect on we revenue million to be For to $XXX XX, $X.XX as-reported first range to quarter Slide EPS guidance million in $X.XX. and $XXX

view on of Investor updated an calendarization in provided what shared supplement we We site with was the investor in have line earnings our at Day.

no of On range. would an X% to first fourth basis, quarter X% result X% the fourth of It the XXXX growth of that Adjusting the fiscal is in quarter this in X quarter. note X, the occur midpoint. organic is XXXX the organic Also Please our note January fiscal the for in that XXXX. quarter XXXX quarter first approximately in was there growth for January first as-adjusted will in minus plus at XXXX.

by models revenue and year, to heavily is as and the portfolio the expected weighted reflecting in in to we impacted growing the throughout our Both operating business more are terms both that trend less percentage margins and field fact systems. now recurring up move seasonality revenue absolute

turn I'll back that, Rob. to With it

Robert Painter

the the momentum Thanks, website a whether that we keep as are guidance that where we are an beat on message into you the with week constant To a we make XXrd divestitures to parts. and Phil. outline same. things our XXXX talking as-adjusted on with encourage supplement or on difficult. ended the comparables the numbers, a We raised refer XXXX We reported strong note on simple, basis, I our a and bit appreciate is to significant on basis. currency carrying moving

with improving performance reflection turn what confidence deliver a unlocking to Confidence humility. insights our on with technology. and close customers, we every that and I'll is

us. XXXX are we beyond, our we Scale Connect As execute to strategy in strategy and execute excited of in ability the the about and front opportunities our and confident in

also are we as the current the environment. navigate We in uncertainty humble

achieve Our of highly work potential team to experienced at is and Trimble. values-driven hard the

my our extending to their colleagues, and for support. ongoing by close shareholders partners I'll gratitude

open let's questions. line Operator, the to

Operator

Your Instructions] Jason from question comes Markets. with line of the Celino [Operator Capital KeyBanc

Jason Celino

the gauge we're about customers? There's thinking and you're how wondering curious I'm Rob, [indiscernible] construction you've macro pushes environment. current if sentiment your a had owners chance pulls among and and type to

Robert Painter

question. Jason, thanks for the

America I energy current won't the the that the hearing North say, respect, for environment, I'd towards of we macro where respects. good but geographies They're to as the at asking hear what be you're in look such up participate. strongest think markets those In beginning, broke surprised geographically, within there probably I America, You I about construction. continues segments think remains verticals are we're that sentiment performing to well, you If be North us. strong data centers, in [indiscernible]

within We other to outperform most The States. the see would geographically United differences, tends relative I say, to states. Southeast

follow You the infrastructure Act. a backlog there's have. contractors still the bill, lot Chips money, of the There's that

with Now projects the that have. backlog, contractors respect in new contracts there fewer to the are

are a So we see down our catalyst their working they're they're technology. the data of that And from What own for adoption is customers that's backlogs. hiring, our hiring. as

the North and sentiment takes both and but So around healthy. remains you're right, world, puts there overall are within the some America

Jason Celino

to sounds a not price I don't it's still some or tariffs, like you're especially changes? think and to Is would then be any segments, perceived that it just Okay. and see? your sensitive you modeling different kind of AECO And changes they it price because with impact. know, related It's financial wait of

Phil Sawarynski

Phil. it's Jason,

the recurring. tariffs, we're remember, quarters about X on So services software now, you if

exposure in our a really is lot than past those. been it to have smaller so And would the

that. more see that it's have and been there supply is Mexico plans contingency our And offsetting items the well have just and operations out some discrete Canada chain that we team been now delayed, and believe a for impact. we small prepared relatively our On around

in tariffs that think What modeled the globally. like has any more we we is when sort reciprocal really let's been impacts think as of answers, say, as explicit we there a go on forward and we lot of things haven't about

right So do team. have now, in we confidence operations our

supply We have a global chain.

[indiscernible] the at and opportunities looked the based clear, we manifest. on just financials we plans contingency believe it, to enact that have seen we've and there's a we so far. on depending don't on be We But can impact have material information

Operator

Your the question Owen Oppenheimer. from comes next of line with Kristen

Kristen Owen

AECO in start to guidance, the wanted the ARR I growth with XXXX the mid-teens. expectations

Just organization, how given upsell the new commercial cross-sell, logos some that you're contribution in thinking about made that of framework? changes you bundling, around the the versus of XXXX in XXXX

Robert Painter

logos. take I'll customers We bit Rob. from question. see existing it's X/X Kristen, the less little probably about and a from than X/X new

the investments taken what to as and the cross-sell, go-to-market we've and business. we've we Investor you'll the a to we view, remember consistent the as made to with into billion as portfolio. with we go $X the systems, of opportunity. that -- that's And Day, well about have coming to product that to at tackle us position the start see And that well So XXXX opportunity talked upsell transformation or within continue house, the you're into the underlying side this right

Kristen Owen

a second more That's a of question, actually bit picture segue a good my question. into which little big is

internally, been how would basis margin you're you've XXX can AI functions. for of internal you about opportunities? efficiency AI that deploying been We've operating in opportunity internally mentioned hearing Rob, Trimble? expand XXX applying prepared to examples that sound thinking you some You points the of of the remarks, benchmark to by agents How on

Robert Painter

think basis points you XXX to in as as the currently strikes I opposed XXX me delivered. hear operational to that operational efficiencies

G&A got you've the they're got if the each you and break marketing. down of -- and you've I take think within you just R&D, it sales differential COGS, I P&L, by So you've say operations, And you've those. really got have let's think got

And majority usage tend about of think be days. our these of the R&D, in software engineers to easiest it's and you think internal already I are R&D we're would in the see ROI the software function. engineers probably think to if -- some

cycle, that what on than in we see break software in see And you different than then testing the QA within different you and is, see and development again down double-click life than different efficiencies what is think, development, is see in provisioning. the can what hosting, you I

important So think it's click. to I double

QA highest CoPilot. So ROI from the using see we I'd GitHub probably say can testing,

code by we the a measuring just development lines course, it's checked it, talk to that's of probably On in, but productivity of perfect you're that in. in we side, well as XX% having product managers see as We measure, using see We specifications. X% more and checked not documents more functions requirements more help it call to more the about, automation. code internally see lines marketing marketing of create -- driving the product it product technical the

our we we're goods help more of sold, how the self supporting efficiencies providing with tools On the cost see along way. customers, can

we number So motion. that in a good activities of have

target. we range level a that that of you aspirational say But today, that I I think operating is efficiency can't say that I quantify that mentioned -- good would can don't I Kristen.

Operator

of comes Ho the from with question next Your William Jonathan line Blair.

Jonathan Ho

you centricity you what Rob, opportunity. I Trimble's Just your new your your do with Trimble data build positioned going understand around trying AI to enhancements be platform, products speak can the is and on data of particularly customers? to products? why to the data this wanted comments or around just Is can existing unique this that for is revolution? how of And for to

Robert Painter

and Thank physical Trimble, digital Trimble. the of the our what's and about I to the and that's morning. work connect office. that What in hardware That the the means you, connecting world. reflects connecting software products Jonathan, unique and unique see work is in That about and services and good the the data field means

combined where incredibly systems about been users that connect So engineering field that across data industries business we We've take if industry, a of workflow pursuing we the for have can is with that moment, we unique. and think the construction industry. stakeholders AECO

owners. today. our on business its is AECO contractors over own a those business, that's of those within Each have and we million each of pillars when So today, $XXX engineers, architects,

Trimble at the unique us with plan office. a certainly represents ability across link a and life higher to as connect of problems customers, fashion So probably to unique a conversations being help a positions corpus unlock customers to I'm us their have by field of ability way. customers. solve -- from the say our and order design, are to the That particularly our cycle operate. in the asking that creates unique lot them believe, life unique to to there's increasingly That build, we continuum. in they the industry to There's bigger I'd data, data and stakeholders that, cycle And data. our a non-Trimble

do we have It can reflects sets that unique with we can the that what we So partnerships we of data workflows. that have. unique is develop in

So in supply unique that's digital -- workflow estimating, that enormous amount the in early systems, say, context. that's doing modeling civil And to BIM, it's progress a plan scan possibilities move a linking be in chains, I just future There's to in it us. payments [indiscernible] would we're see from an to that that's a game. of and We're practice. [indiscernible] linking about probably with I ERP workflow could and say analogy, construction for bright linking

Jonathan Ho

helpful. really That's Excellent.

as any thoughts sense any Can small impacts a government. give you in contribution is and terms federal potential U.S. the of Just how follow-up, of there? us a around that big or

Robert Painter

so have the on today Yes. those the field are federal systems orders us. we government for Hey, in predominantly side, --

years, seen survey government. more with work it like -- made equipment, The we federal the machine So naturally had the we a continuing feels we've resolution. GIS sell consumer equipment, to is mapping by federal what to government even lumpy government control, had few tends be in for the than past. lumpy it it's That's biggest of the

the guide. is guide do flat is field to you'll the and XXXX see we have what into there, that we look we business federal systems If were and take that in if a effectively be way, we adjusted also subscription have apple-to-apple we'd the X% by for -- -- we it an growth. over points that. conversions up field on systems, sorry, XXX basis happening organic When

in see a and relative projecting very for we is still for government, to XXXX XXXX we're to down saying be important I'm what Trimble. So that customer us federal the

Operator

line from comes of Dillard the Your Chad Bernstein. next with question

Charles Albert Dillard

is regional the TCX question My on rollout.

you think road And pause reaccelerating in a to I in XXXX? momentum you I where just some the are next better and update about wanted now? map thinking sense some focus that And think get of early had to maybe like to year for on accounting how contribution that about to it just you're for guys you the how can if growth questions.

Robert Painter

the for question. thanks Chad,

of Construction to So Trimble that. Part good we and we're success with you continue the having really of success, as that. is note, about feel that rollouts that One regional

So coming coming has it a think so Asia North that meaningful Europe out, spot roll America, a in more into as next -- Asia say this sales We're order. year that Pacific, kickoffs. good our Europe, we still especially it's in after about in in way. Pacific I'd

Europe into of thoughts rollout our the focus the segment. So is for incorporated and on the that that's

get customers We very our that. on feedback world continue from the good around to

from sense we things for bundles feedback you types One make and in not it's to the as of of different capabilities have for we the the go global TCX region regions and dial to you one do so is that so and take the terrific region, region answer us by what did continue ACV end of strong basis. performance what a they that on from we fourth our on for need posting and in year-over-year the growth saw job and team the the quarter. looking very a at bookings The reflected they're bookings customers

about good it, Chad. feeling So

Charles Albert Dillard

systems. shifting to That's helpful. And over then gears just field

that at see? of So guiding in channel Can to in dynamics share for more revenue terms a business? for organic what's that little the can growth what you to any fourth for quarter some the may And contribution color just that least but recent then changes of talk bookings I business? bit you you XXXX, wanted infrastructure embedded [indiscernible] get about flat, you're on color

Robert Painter

as federal Rob. we we'll the field an were exclude we the year that Field for to of that a are business, take On call marker sales. the If on what we one. look up organic. up that Sure, we quarter we Systems the X% are with where fourth [indiscernible] X.X% basis, is if overall, as-adjusted about This in think Chad. Yes. I'll close

project And the that growing organically, and team going the we field, so year. in next into is

In was XX%. the fourth ARR quarter, up

level bookings performance complete of those enough Tremendous highest as we And ARR that conversions. on also working that, a team that year-over-year the headwind to The job of grower [indiscernible] growth models. a business. a so tremendous the strength creates fastest, has of the done business reflected revenue in fact,

if XXXX, we headwind basis that look points flat. we'd guide adjust into which a for were for over growth, conversions, revenue and up if XXXX. the So is we our the XXX But guide the to revenue be subscription Fed to are of growth in

Now about within have pillars the portfolio that in Field X we in business. that Systems, think

infrastructure So back actually have. think business and ARR level positioning, have, is positioning. that the world what services we is in revenue call our that the we the the and our business; that thoughts our in to we geospatial around has come and civil certainly I'll that positioning Advanced right advanced of we that recurring centimeter offer continue that; that to -- second, pillar guide that the in third ubiquitous grow we expect most accuracy to year, in next that's survey

From business, expect pillar, that the Civil punchline. growth. the That's we

the the to coming for of in strong in like be grower what expect had a So business. beginning business. the here year quarter. fourth we've infrastructure seen we a the We civil us, to

it -- and the So actually we've seen globally.

of performing. a catalysts is growing. It There's number for the is business that. So

move We continues profound out and dirt the -- by we it's like in what put customers operator continue the [indiscernible] the field, It you is productivity to time productivity on technology. right value operator inexperienced course, fundamental guidance sell our equipment the productivity the finding good guidance iron when [indiscernible] make Of -- technology proposition. an a using good great have can first the labor. problems

as which well innovation, able were showcase The team user at nice we product conference. has our to done job a of

down -- and So tier us that to helps but it's the business. to we federal where leading and a control have By also new market. survey new business. that of product number say, a from of the of flat expect have reach we relatively, pillars, a expect on should we implication, year, fronts, we into of that next a the lot I business. activities a be performance that's nice number then into machine BXXXX,

Operator

of with from question line the next Jerry Revich Sachs. Your comes Goldman

Unknown Analyst

This is for Jerry. Clay on

organic First of flush me. you performance the What one quarter Transporeon? for growth logo and was retention in out the rate? Can growth

Robert Painter

a be Rob. really this can the that freight is to Transporeon a job, in is that Transporeon I'll difficult question. where market The with with they did macros European-centric what take market and continue actually control. globally obviously, business terrific The Clay, team controlling as challenged.

team mentioned over growth However, in for good bookings had had Phil XX% the year. very way, record They quarter fourth bookings. for record the bookings a year. the

is existing that the So We -- reflects new both logos throughout won new logos. many customers and year.

names in Some any . of you'll the -- vertical. biggest company end find

done nice has team the And within of job a cross-selling that.

some relative of teams, capabilities. So our that's team well as usage we done both innovative things by to the own as looked at side probably product internal most -- that the sum -- has and the external way, for the AI, on

then job that. North globally Europe is to the have done and from procurement, some some uptake bring as nice team an offering to autonomous autonomous within efficiencies we've And consolidation synergies getting product capabilities America. doing and nice well drive We that's quotation into also a working and

of as markets said to his comments business. able So this business Phil turn potential when positioned and in be financial the potential well freight demonstrate to the the this of to is perform

Unknown Analyst

but And do here. little there. question, last on color product some [indiscernible] a you portfolio? switching bit touched the the How of gears the on I you believe just vitality view

Robert Painter

put And a on billion job Trimble nice put does think, context a years, broader innovation. X development. $X.X in about to I team, the that, of the really research So last just has over and the

money about talk Transportation talk empty like where our is, just both putting -- AECO don't Field we So innovation. We're our Systems. and mouth

if business, think the Civil take I price points. BXXXX or vitality as getting within those pillars. works it's site portfolio, about new our about the new If and product machine -- technology, a we I'll talked take types I to So that's X us

prior in the positioning RXXX business, of If I for the which last the last was our team errors in survey innovation version year, has an and team that in launched If atmosphere. IonoGuard, the the launched at of itself. over pillar, I communications looked correcting had and advanced that's and RXX, look the year improved

So you accurate really we've can the and agriculture, in difficult field, in you ubiquitous to that accurate mines the do, do in the novel performance, have cycles particularly some which solar innovation. highly get and really the very had to accuracy team that -- like had just need, is to

customers -- driving drives really is innovation our a of refresh own for So their technology.

they're team on. but seeing mention growth quarter. portfolio, what had So across hardware and software we innovation, also talked that's the the like what I I'm I ARR reflected in that fourth in about working that innovation that the XX% like and from should

I about think capture. is and doing reality the really team what I'm excited

data days, -- flooded topic. It's We we're got information need. the with that data. we not is These

And in so data of Trimble software converting sets data information. that and actionable is activities and the are business the enormous and information collecting

in in capture you and on that out that reality back feature extraction to then actionable So create workflows can field. AI from extraction do apply to feature

good happening a of the So in lot things business.

Operator

from comes line Tilton Joshua next Your of the question Research. with Wolfe

Joshua Tilton

demand little post to follow-up quick guess construction understand, any states? multi-parter then a on the the in transportation seeing deeper. a maybe business the a have in bit I'm Are construction market actually I on you diving change just side. trying here I and end election from

got And potential acquisitions, construction TCX from you Is specifically are is you missing is it the bundle feel that did focused part interested on guys some second make highlight larger the to most of portfolio point a that you then there And today that for a that I question the anything in? follow-up. the or construction.

Robert Painter

or since the of change since mode. sentiment, into the onshoring, reshoring, supply you discernible -- kind any around. election is projects or in I on I a the we punch you came wait hear line. election new going to going chain on movement, mean But move out. President a office, let's hear -- overall, of nothing fundamental have Josh, in or more we're since I say, in seen the demand are is haven't expectations think coming to wait-and-see

of have some more U.S. system. quarter, the be because provide next same data our in on about So let's and and we able we'll that to -- X/X [indiscernible] is through to and wait ask running at construction question the that maybe see

both a well we So have the as -- level. I pretty the coming, at as on would view owner what's contractor think level well as good we

exact M&A In call question, to One is side it access it, think same talk within other terms a commercial around our One world. the a construction, And it's geographic geography. about we couple the about I in product-oriented. more we your have don't level, around I have is, At answer Construction capabilities the capabilities a offering, the different of We of world. Trimble the really respects. is framework, when really

good America. has could ourselves built And to most geographically extraordinarily look a North notably from markets, a say, so together let's or Asia, a by capability gaps. expand we that you for India. we well partner, where for we Southeast of us think stitch a do system take construction through that even and We'll right? at ERP geographically those Central we go ERP. can and done We look begs the strengthen take how question have side you and a construction we'll don't markets offering say and ERP product the could offering, analysis, through I'll -- go a So in Europe number construction say, it -- and

can offering. little think independent features than tuck-ins the much gap don't I the fit less -- a think Often, platform gaps really they more bit are well so into about really I there's businesses come that our that's where that extent play. to are within tuck-ins

Also the it think of access about segmentation. on

acquire in Or bundle, do if an we tier offering? if ask of mid to the Do contractor, segmentation, -- that one bring we play we and -- how the go say, within and want base large want that we would say, of product we the more mid- of link let's may business in how upsell. one extend to have that? market, play do say, and we in the the, then that capabilities we'll play Or the play largest let's in the small-mid, cross-sell if more the large, installed the rest would in okay, that? could we to we So we question we

but about It's we we not helps how that way on -- it, being the hopefully, Josh. overly I'm specific it. not purpose, about that's So frame think go

Joshua Tilton

the Maybe follow-up side. just a It on transportation definitely quick helps.

still what do clear it's about think this challenged. for will recovers? bookings though business like even freight How remains bookings I look think market freight solid, Transporeon pretty market Transporeon we for or when like the

Robert Painter

Good good question. Actually, question. a that's

would that a It's a pretty low on bookings -- be is similar. be okay, to would But available, right me actually okay, think better reasonably that it's with our a would I think sentiment much there's more that model. the mean, it transactional quite the we than higher. and catalyst. other spend be obvious have positive growth not because that would to entry model probably I you barrier itself

in the transactions thing the by so [indiscernible] recovery -- model, have. seen market and as business economic fast very a out business, or really a happening that's freight for more improvement. transactional you in a come already a customers cycle, is fast more each in very good the we that to And you this is of where we've a fundamental the freight it's down mean And I a more fast a recovery way, recovery, -- historically the improvement. recovery have the and already can very very of when

when are of operating that I think business. margins and the in I the gross leverage, say nature [indiscernible] that,

in or leverage of you inflection our of and amount a drop the on a nice executions number So really operating you can significant loads moving drive system, transport quickly.

would I the look Josh, would I So more that, than bookings. at

Charles Albert Dillard

quarter. the on Congrats sense. Makes

Operator

of Tami Zakaria comes the with Next line question JPMorgan. from

Unknown Analyst

behalf [indiscernible] questions. had is on X I Tami. of This

of to related The that M&A, repurchase the quarterly how year, terms at the this note, Do have around a first for share plan complete share expect would year? your do is if cadence? on entire the mentioned plans impact authorization. -- in on Or the you And all? you a you authorization as repurchase if

Phil Sawarynski

the Phil. is for question. This Thanks Yes.

billion the was just that's thinking about about $X the earlier as a replaced with proceeds million existing on Ag to from new the related that we're the $XXX we So authorization and our JV. prior, is earlier, remaining amount an noted we authorization. we've And talked the that way

it, about QX first million to executing. and initiate And call $XXX that focused on QX let's so we're we've repurchases talked over that still already anticipating,

free between that or Day with hit above in QX. and And back beyond going so flow, about X/X the Investor talked in it about remaining I at it of way X/X QX And million, that, of the I was and QX, is $XXX what QX at is repurchases. to think probably about of cash the hit then X/X share

a once way that the a think is initial about million, and let's of I about $XXX think million that $XX million free So past that call I of to way flow expect get year that's think quarter X/X it, million. it. and so that I roughly $XXX would modeling roughly $XXX we That's cash the

about we tuck-in the leverage on And And more it that. over below I something reminder, the M&A than targeted continue do the question long enough Xx primarily the with we're focused to and we of M&A. tuck-ins, well we -- we your well, think do right firepower term M&A. rate bigger, now, If depends do well But the still a right is, on the plenty we believe again, work We're underneath is do that. just we're have what to X.Xx, on believe have capacity our on now. we to

on our balance plenty have room we So of sheet.

Unknown Analyst

the out led to 'XX helpful. revenue to second And in laid have compared which guidance actually change in the in my is areas the Investor super your That's positive initial guide Great. basis? the around Day FY question outlook currency constant organic

Phil Sawarynski

question. Yes,

walk revenue. we -- had at to a million So delta, to Day, through $XX on had about just about Day, Investor relative the Investor we FX headwind

roughly guided $X.XX million. as puts guide Investor our Day reported billion at is were and what $X.X is takes And so the we

performance And so the as headwind growth. the to in FX, business Civil that that we about closed AECO with coming -- and And month for continuing of the organic offset think the with we before that a the in that AECO, Systems increase the the for say that. the add we Rob Field primarily it's $XX had the especially January strong FX in and that then And effective talked mobility really about had XXXX. into the across mobility I'd on the end really million one $XX performance of year out that on performance of businesses million

Operator

Baird. Mason next question Robert comes Your from the of with line

Robert Mason

moving pretty adjusted appreciate I all pieces, numbers, set detail the get level of to level So helpful. the us all given

points speak your then I'll flat you of just on And like within business, growth. growth. So the and segments, in taking your high flat of on Field that Systems, up margins about single-digit kind looks Transportation basis core are kind XXX provided, it organic margins

to good the correctly? So you some channel so bridge dynamics, margins investments, I'm P&L if thought X interpretation? can interpreting Systems I a those the is would that right just Field that that's needed have flat, outcome, absorb but probably being

Phil Sawarynski

Yes.

a Phil. it's time. One Rob, at So

some Systems, income investment equity we changes JV, some of into were CAT the we've this our line to with about shifted the -- the of talked the JV in on the OpEx. with the before So Field margins that

we and the product that. pricing on some JV, changed sell we of margins and into So the

improve that actually so But Systems And the Field what some margins offset investment by was the build-out. which actually said, helps channel business. is the that the in in you of

we do some because upside And shift. get the there of so economic

then big And transportation there on a the really is the that's the item FX. headwind business, think I

So profitable. the euro-denominated Transporeon is is and all

U.S. decent And so actually back given translate that when strong the a transportation the headwind that for we segment. creates dollar,

Robert Mason

the -- So you $X.XX out in think, P&L I headwind disproportionately then? that's called

Phil Sawarynski

T&L like in do particularly Europe, footprint and primarily and field we in big doesn't growth given the It's a systems. have AECO. AECO,

size euro-denominated, of because But yes, it. both And AECO. so Transporeon the of it's of that it's all Transportation portion a big and and

Robert Mason

follow-up. just as And Sure. quick a

what a in I add Pac could touched on you some seeing out are of to or in you think little North you Europe? America. strength But geographic context the calling Asia color in

Robert Painter

standout toughest does Rob. that that's doing India and say in the this between, have Australia, Japan, I'd is the -- Japan positive. market. -- India challenged. is I'd to Rob, India difficult in what But New the then Zealand. say especially end, on the market In you're highlight region. FX other probably book the China are well. going And to particularly in is

Operator

session, and may ladies you Thank now call. today's conclude conference that does and that you and participation, And does for question-and-answer gentlemen, disconnect. our conclude your

Trimble (TRMB) 19 Feb 252024 Q4 Earnings call transcript