Trimble : Second Quarter 2021 Results Presentation

Trimble Second Quarter 2021 Results Summary

Second quarter 2021 highlights

Key

Messages

Financial

Highlights

• Outperformed expectations in the quarter
• Strength in end markets
• Focused on executing Connect & Scale 2025 strategy
• Record Q2 revenue: $945 million, +29% overall, +27% organic
• Record ARR: $1.35B, +11% overall, +10% organic
• Record TTM operating cash flow: $798M, up 42%
• Adjusted EBITDA margin: 26.4%
• Non-GAAPEPS growth: +38%

ARR refers to annualized recurring revenue, and is calculated by adding the portion of the contract value of all of our term licenses attributable to the current quarter to our non-GAAP recurring revenue for the
current quarter and dividing that sum by the number of days in the quarter and then multiplying that quotient by 365.
Adjusted EBITDA refers to non-GAAP operating income plus depreciation plus income from equity method investments, net.	2
Figures may vary due to rounding.

Trimble Operating System highlights

Trimble
Operating		Proof Points
System
	▪	Subscription transitions expanding addressable market in Buildings & Infrastructure and Transportation
Strategy	▪	Investing in digital transformation
▪	Divestitures of Manhattan Software in Q2 and Iron Solutions in early Q3
	▪	Launch of Trimble Ventures
	▪	Ranked as Top Leadership Team, including top performing company for women and diversity, in Global Culture survey
	▪	Employees ranked us #7 in the top 50 companies for best engineering teams
People	▪ Ann Fandozzi appointed to Trimble Board of Directors, effective August 16, 2021
▪	Hosted employee resource network sponsored events for Pride and Asian Pacific American Heritage Month; culturally
		sensitive mental health workshops and education for all employees.
	▪	Added new DEI recruiting partnerships with organizations such as Pathforward.org, NSBE.org and Blackfacts.com
	▪	Cross selling in construction software delivering incremental ACV growth
	▪	Collaboration with HORSCH to enable autonomy in agriculture
Execution	▪	Transportation bookings up significantly and stable ARR
	▪	Availability of Quadri infrastructure BIM collaboration software for North America
	▪	Announced Trimble Earthworks for soil compactors

3

Trimble Ventures Launch

Accelerating the growth of innovative companies that are valuable to our customers and complimentary to our partners, products and platforms

• Accelerates Trimble's platform and technology ecosystem strategy and supports Connect and Scale
• A commitment of $200M, focused on series A through series D investments
• Fills gap between partner programs and M&A
• Provides enhanced view of emerging technologies

ventures.Trimble.com

4

Second quarter 2021 financial summary

$M, Except Per Share		Second Quarter of
Non-GAAP Highlights	2020	2021	Y/Y Change
Revenue	$735.2	$945.3	+29%
Gross Margin % of Revenue	58.9%	58.2%	-70bps
Adjusted EBITDA	$189.3	$249.3	+32%
Adjusted EBITDA % of Revenue	25.7%	26.4%	+70bps
Operating Income	$169.9	$228.6	+35%
Operating Income % of Revenue	23.1%	24.2%	+110bps
Tax Rate	17.1%	17.5%	+40bps
Net Income	$131.5	$183.8	+40%
Diluted Earnings Per Share	$0.52	$0.72	+38%
Balance Sheet & Cash Flow Highlights
Net Debt	$1,636.3	$897.0	-45%
Deferred Revenue	$531.0	$606.1	+14%
Cash Flow from Operations	$147.5	$200.6	+36%
Free Cash Flow	$134.6	$189.8	+41%

• Revenue: +29% y/y;
• • Organic +27%
  • Currency translation +3%
  • Acquisitions/divestitures -1%
• Gross margin down due to revenue mix and increased product costs, partially offset by lower discounting
• EPS up $0.20/share, driven primarily by higher revenue
• Cash flow growth driven by Adjusted EBITDA growth and improved working capital

Net debt refers to total debt minus total cash and cash equivalents.	5
Figures may vary due to rounding.