Trimble Inc. (NASDAQ:TRMB) Q3 2024 Earnings Conference Call November 6, 2024 8:00 AM ET
Company Participants
Rob Painter - President & Chief Executive Officer
Phil Sawarynski - Chief Financial Officer
Conference Call Participants
Kristen Owen - Oppenheimer
Jerry Revich - Goldman Sachs
Rob Wertheimer - Melius Research
Jerry Revich - Goldman Sachs
Jason Celino - KeyBanc Capital Markets
Tami Zakaria - JPMorgan
Clarke Jeffries - Piper Sandler
Chad Dillard - Bernstein
Arsenije Matovic - Wolfe Research
Operator
Thank you for standing by. My name is Novi [ph] and I will be your conference operator today. At this time, I would like to welcome everyone to the Trimble Third Quarter 2024 Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. [Operator Instructions] Thank you.
I would now like to turn the call over to Rob Painter, President and Chief Executive Officer.
Rob 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. Our financial commentary will reflect non-GAAP performance metrics, including organic growth comparisons which refer to the corresponding period of the prior year, unless otherwise noted. In addition, our P&L commentary will emphasize comparables on an as-adjusted basis which excludes our agriculture business.
Let's start on Slide 4. During the third quarter, we continued to advance our Connect & Scale strategy. The Connect aspect of the strategy guides us to digitally connect users, data and workflows across stakeholders in the engineering and construction and transportation and logistics industries. The Scale aspect of the strategy guides us to develop increasingly common back-end systems and shared technology platforms while deploying more consistent processes around focused and accountable teams.
Our strategy is working and it is delivering unique present and future value to our customers as well as sustainable value creation to our shareholders. In the quarter, we outperformed expectations at the top and bottom line and we are raising our top and bottom line guidance for the year. Congratulations and thank you to the entire Trimble team.
The numbers reflect hard and intentional work in the quarter as well as over the last 4.5 years. Three messages to convey here. First, we delivered ARR of $2.187 billion in the quarter, up 14% organically. This kind of growth at scale doesn't happen without an enormous commitment to our Connect & Scale strategy. We also delivered a record gross margin of 68.5%. That compares to a gross margin of 57.7% in 2019. While the record numbers speak for themselves, it is important to recognize that this is a result of the journey we undertook a number of years ago and we are proud of our progress.