Second Quarter 2020 Financial Summary
Second quarter 2020 GAAP revenue of $733.6 million was down 14 percent as compared to the second quarter of 2019. Second quarter 2020 non-GAAP revenue of $735.2 million was down 14 percent as compared to the second quarter of 2019.
Annualized recurring revenue (ARR) for the second quarter was $1.21 billion, up 6 percent as compared to the second quarter of 2019. Effective this quarter, we are including the annualized value of term licenses in the calculation of ARR for the current and comparable periods.
Buildings and Infrastructure revenue was $295.3 million, down 13 percent. Geospatial revenue was $145.2 million, down 12 percent. Resources and Utilities revenue was $143.8 million, down 6 percent. Transportation revenue was $150.9 million, down 24 percent.
GAAP operating income was $97.6 million, down 11 percent as compared to the second quarter of 2019. GAAP operating margin was 13.3 percent of revenue as compared to 12.8 percent of revenue in the second quarter of 2019.
GAAP net income was $63.0 million, down 33 percent as compared to the second quarter of 2019. GAAP diluted earnings per share were $0.25 as compared to GAAP diluted earnings per share of $0.37 in the second quarter of 2019.
Non-GAAP operating income of $169.9 million was down 3 percent as compared to the second quarter of 2019. Non-GAAP operating margin was 23.1 percent of revenue as compared to 20.5 percent of revenue in the second quarter of 2019.
Non-GAAP net income of $131.5 million was down 2 percent as compared to the second quarter of 2019. Non-GAAP diluted earnings per share were $0.52 as compared to non-GAAP diluted earnings per share of $0.53 in the second quarter of 2019.
The GAAP tax rate for the quarter was 30.5 percent as compared to 18.0 percent in the second quarter of 2019, and the non-GAAP tax rate was 17.1 percent as compared to 20.0 percent in the second quarter of 2019.
Adjusted EBITDA of $189.3 million was down 5 percent as compared to the second quarter of 2019. Adjusted EBITDA was 25.7 percent of revenue as compared to 23.2 percent in the second quarter of 2019. Operating cash flow for the first two quarters of 2020 was $303.2 million, down 7 percent as compared to the first two quarters of 2019. Deferred revenue for the second quarter of 2020 was $531.0 million, up 17 percent as compared to the second quarter of 2019.
"The resilience of the Trimble team, the quality of our Connect & Scale 2025 strategy, and the strength of our financial model enabled us to perform despite difficult circumstances," said Rob Painter, Trimble's president and chief executive officer. "While we expect ongoing macroeconomic challenges, we remain committed to our mission to transform the way the world works, as we enable our customers to digitize their businesses and unlock productivity, quality, safety and sustainability."
Forward Looking Guidance
Trimble's financial results for the remainder of 2020 will be impacted by continued global economic uncertainty due to the COVID-19 pandemic. As such, Trimble is not providing a financial outlook for the third quarter of 2020 or the remainder of 2020 at this time.
