Third Quarter 2018 Financial Summary
Third quarter 2018 GAAP revenue of $795.2 million was up 18 percent as compared to the third quarter of 2017. Third quarter 2018 non-GAAP revenue of $804.7 million was up 19 percent as compared to the third quarter of 2017.
Buildings and Infrastructure revenue was $295.8 million, up 36 percent. Geospatial revenue was $185.4 million, up 9 percent. Resources and Utilities revenue was $133.2 million, up 13 percent. Transportation revenue was $190.3 million, up 11 percent. Segment revenues reflect the results of Trimble's reportable segments under its management reporting system and are non-GAAP measures.
GAAP operating income was $77.4 million, up 17 percent as compared to the third quarter of 2017. GAAP operating margin was 9.7 percent of revenue as compared to 9.8 percent of revenue in the third quarter of 2017.
GAAP net income was $73.7 million, up 29 percent as compared to the third quarter of 2017. Diluted GAAP earnings per share were $0.29 as compared to diluted GAAP earnings per share of $0.22 in the third quarter of 2017.
Non-GAAP operating income of $167.0 million was up 32 percent as compared to the third quarter of 2017. Non-GAAP operating margin was 20.8 percent of revenue as compared to 18.7 percent of revenue in the third quarter of 2017.
Non-GAAP net income of $125.2 million was up 23 percent as compared to the third quarter of 2017. Diluted non-GAAP earnings per share were $0.49 as compared to diluted non-GAAP earnings per share of $0.39 in the third quarter of 2017.
The GAAP tax rate for the quarter resulted in a benefit of 15 percent as compared to an expense of 20 percent in the third quarter of 2017, and the non-GAAP tax rate was 19 percent as compared to 23 percent in the third quarter of 2017.
Operating cash flow for the first three quarters of 2018 was $384.8 million, up 19 percent as compared to the first three quarters of 2017. Deferred revenue for the third quarter of 2018 was $364.3 million, up 28 percent as compared to the third quarter of 2017.
"Third quarter revenue was consistent with expectations and income exceeded expectations, with software revenue and gross margin performance providing much of the momentum," said Steven W. Berglund, Trimble's president and chief executive officer. "Although trade, currency and geopolitical considerations have introduced incremental uncertainties, we anticipate continuing improvement in both revenue and profitability in 2019."
