Trimble Inc (NASDAQ:TRMB) Q2 2020 Earnings Conference Call - Final Transcript

Aug 05, 2020 • 05:00 pm ET

Previous

Trimble Inc (NASDAQ:TRMB) Q2 2020 Earnings Conference Call - Final Transcript

Share
Close

Loading Event

Loading Transcript

Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by, and welcome to Trimble's Second Quarter Conference Call. [Operator Instructions] And please be advised that today's conference is being recorded. [Operator Instructions]

I would now like to hand the call over to your speaker for today, Mr. Rob Painter, Chief Executive Officer. Please go ahead, sir.

Executive
Robert G. Painter

Good afternoon, everyone. Before I get started, a quick reminder that our presentation is available on our website, and we ask that you please refer to the safe harbor at the back. Despite difficult circumstances in the second quarter, our team rose to the occasion. I'm deeply grateful for the ingenuity and commitment to outcomes demonstrated by my colleagues and our worldwide network of partners over these last few months. What I said on our call in May remains true today. That is, we will get through this crisis. We are well positioned to endure the macroeconomic shock and we will emerge stronger on the other side of this. Our belief in our long-term strategy remains undiminished.

Slide two lists the five key messages we want to convey today. First, our resilience, the quality of our strategy and the strength of our financial model enabled us to outperform our own expectations in the second quarter. ARR at $1.21 billion; adjusted EBITDA margins at 25.7%; and deferred revenue at $531 million, were clear highlights. Our shift to a more hardware-connected, software-centric and recurring revenue business model is paying off. Second, the decisive financial and strategic actions we took in March have put us in a position to restore employee pay as of August and senior executive pay shortly thereafter. I thank all of my colleagues for their professionalism and demonstrated commitment. These last few months have strengthened our culture. Third, we take our responsibility to address racial injustice and climate change seriously. Speaking personally, I have a heightened sense of awareness that has strengthened my resolve to leverage our platform to lead Trimble to a different place. We have been public in our stance against racial injustice. We established a diversity, equity and inclusion working group, representing both senior leadership in Trimble as well as advocates appointed from within the organization.

We have also donated money through our Trimble Foundation to causes that align with our values, and we remain humbled to know that we have a lot more to do. With respect to climate change, we are pleased to have named Leah Lambertson, our Head of Operations, to a larger role where she now has additional responsibility as Head of Sustainability for Trimble. Fourth, we reiterate our focus to execute on our Connect & Scale 2025 strategy. We will balance cost containment and investment in innovation during the downturn. We are connecting the industry life cycles we serve, such as construction, agriculture, utilities and the transportation supply chain. By reporting segment, in the context of unprecedented conditions, we were satisfied with our progress in the quarter in three of our four segments. While we remain convinced of