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Trimble’s 2nd-quarter transportation revenue drops 8%

Company sees opportunities for cross-selling and upselling in transportation segment, CEO says

(Photo: Jim Allen/FreightWaves)

Supply chain technology provider Trimble Inc. reported on Friday an 8% year-over-year (y/y) drop in transportation revenue to $150 million.

Trimble (NASDAQ: TRMB) reported total revenue of $941 million, a 0.4% decrease from the second quarter of 2021. This follows record revenue of $994 million in Q1.

The Sunnyvale, California-based company reported adjusted earnings per share of 63 cents, an 11% y/y decrease. Adjusted operating income decreased by nearly 8% y/y to $211 million.

Trimble is a technology provider for trucking companies, freight brokerages and 3PLs. Among Trimble Transportation’s services are enterprise, mobility, final-mile, mapping and maintenance solutions.

“More than 90% of the top 200 trucking companies in North America are Trimble Transportation customers,” Rob Painter, president and CEO, said during the earnings call. “The very strong majority of those are not buying everything they could be buying from us.”

“We think that there’s an attractive opportunity to upsell and cross-sell within the base. … So we need to continue to work with the go-to-market and product level to deliver the most customer value so that we can increase the level of penetration into that market segment.”

Trimble reported its adjusted earnings per share grew by 10.6% from 2021 to reach 73 cents in the first quarter of 2022. Adjusted operating income grew by 11.4% year over year to $233 million.

“Our second-quarter results exceeded expectations,” Painter said in a news release. “Growth in annualized recurring revenue and gross margin demonstrate the potential of our connect and scale strategy. We remain committed to investing in our strategy while navigating macroeconomic uncertainties.”

3rd-quarter outlook

“For the full-year 2022, Trimble now expects to report revenue between [$3.76 billion and $3.82 billion] and GAAP earnings per share of $1.89 to $1.99, and non-GAAP earnings per share between $2.70 and $2.80,” the company said in a statement. “GAAP guidance assumes a tax rate of 23% and non-GAAP guidance assumes a tax rate of 18.5%. Both GAAP and non-GAAP earnings per share assume approximately 251 million shares outstanding.”

Table: Trimble Navigation’s key performance indicators

Link to full report

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Alyssa Sporrer

Alyssa is a staff writer at FreightWaves, covering sustainability news in the freight and supply chain industry, from low-carbon fuels to social sustainability, emissions & more. She graduated from Iowa State University with a double major in Marketing and Environmental Studies. She is passionate about all things environmental and enjoys outdoor activities such as skiing, ultimate frisbee, hiking, and soccer.