Trimble Inc. has recently released its 10-Q report, detailing its performance in the first three quarters of 2024. Trimble provides technology solutions for professionals and field mobile workers in various industries, including architecture, construction, geospatial, and transportation. The company's growth strategy focuses on delivering customer outcomes, expanding into attractive markets, and increasing its mix of software and services.
In the third quarter of 2024, Trimble's revenue decreased by 9% to $875.8 million compared to the same period in 2023. The decrease was primarily due to a 31% decline in product revenue, partially offset by an 11% increase in subscription and services revenue. The company's gross margin decreased by 2% to $575.6 million, with a gross margin percentage of 65.7%. Operating income also decreased by 4% to $116.4 million, with an operating income percentage of 13.3%.
Trimble's research and development expenses decreased by 4% to $155.6 million, while sales and marketing expenses increased by 1% to $147.1 million in the third quarter of 2024. General and administrative expenses rose by 9% to $127.6 million during the same period. The company's total amortization expense of purchased intangibles decreased by 23% to $45.4 million.
In terms of non-operating (expense) income, Trimble recorded a net loss of $22.6 million from divestitures, a significant decrease from the $5.5 million gain in the third quarter of 2023. The company also reported a net interest expense of $14.1 million, representing a 70% decrease from the same period in 2023.
Despite the challenges, Trimble remains focused on its growth drivers, including recurring revenue, strategic acquisitions, and geographic expansion. The company's annualized recurring revenue reached $2,186.7 million, reflecting a 13% year-over-year growth, which has positively impacted its revenue mix, growth, and profitability. Trimble also announced strategic relationships with Caterpillar and John Deere, aiming to accelerate innovation and customer adoption in the construction industry.
Additionally, Trimble has been active in acquisitions and divestitures, with 12 acquisitions and 22 divestitures completed since 2020. Notably, the company entered into a definitive agreement to sell its Mobility business to Platform Science, with the pending transaction expected to close in the first half of 2025.
Trimble's 10-Q report provides a detailed insight into the company's financial performance, strategic initiatives, and future outlook, offering investors and stakeholders valuable information for making informed decisions. Today the company's shares have moved 1.1% to a price of $73.49. For more information, read the company's full 10-Q submission here.
