Trimble, Inc. (TRMB) CEO Robert Painter on Q1 2022 Results - Earnings Call Transcript

Trimble, Inc. (NASDAQ:TRMB) Q1 2022 Earnings Conference Call May 5, 2022 8:00 AM ET

Company Participants

Robert Painter - CEO, President & Director

David Barnes - CFO & SVP

Michael Leyba - Director, IR

Conference Call Participants

Jerry Revich - Goldman Sachs Group

Jason Celino - KeyBanc Capital Markets

Tami Zakaria - JPMorgan Chase & Co.

Jonathan Ho - William Blair & Company

Kristen Owen - Oppenheimer

Robert Mason - Robert W. Baird & Co.

Chad Dillard - Sanford C. Bernstein & Co.

Erik Lapinski - Morgan Stanley

Operator

Thank you for standing by, and welcome to the Trimble First Quarter 2022 Results. [Operator Instructions].

I would now like to hand the conference over to Rob Painter, Chief Executive Officer. Please go ahead, sir.

Robert Painter

Welcome, everyone. Before I get started, our presentation is available on our website, and we ask that you refer to the safe harbor at the back.

Let's begin on Page 2, with gratitude and a shout-out to our team and our partners for delivering a record first quarter that exceeded our expectations. The team delivered record levels of annualized recurring revenue of $1.47 billion, revenue of $994 million and EBITDA of $253 million. Every reporting segment met or exceeded expectations and backlog stands at $1.7 billion.

Our software teams exceeded expectations on delivering ARR growth as we continue to transform our business models. And we achieved record levels of recurring software bookings in many parts of the business. On the hardware side, our operations team secured components late in the quarter to solidify our strong performance.

[Indiscernible] speaking, the story of the first quarter is that demand remains healthy, our strategy is working, and we continue to execute in a very dynamic environment.

Against this backdrop, we are raising our organic annual guidance for the year, adjusting for the impact of divestitures and currency. As many of you know, we think on a 3-4-3 operating cadence, simultaneously balancing 3 months, 4 quarters and 3 years. We aim for the same balance on these update calls. I'll start my commentary by addressing some of the specific topics you've been asking about in the 3-4 zone, namely Russia and Ukraine, supply chain, inflation and market conditions.

Starting with Russia and Ukraine. Our first priority remains the safety of our teams. For the business, we continue to pause all new sales into Russia and Belarus and our long-term planning assumption is that our 2% of revenue from the region does not come back, most of which comes from agriculture and survey hardware. Given our current backlog, we are directing as much product elsewhere as possible, and we do not anticipate a material change to 2022 company revenue.