Trimble Inc.

Thank you for standing by and welcome to the Trimble first quarter 2022 results. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 in your telephone keypad. And to read the other question, press the hash key. If you require technical support at any time, please press star 0. I would now like to hand the conference over to Rob Painter, Chief Executive Officer, please go ahead, sir.

Welcome, everyone. Before I get started, our presentation is available on our website, and we ask that you refer to the safe harbor at the back. Let's begin on page two with gratitude and a shout out to our team and our partners for delivering a record first quarter that exceeded our expectations. The team delivered record levels of annualized recurring revenue of $1.47 billion, revenue of $994 million, and EBITDA of $253 million. Every reporting segment met or exceeded expectations and backlog stands at $1.7 billion. Our software teams exceeded expectations on delivering ARR growth as we continue to transform our business models, and we achieved record levels of recurring software bookings in many parts of the business. On the hardware side, our operations team secured components late in the quarter to solidify our strong performance. Tentatively speaking, the story of the first quarter is that demand remains healthy, our strategy is working, and we continue to execute in a very dynamic environment. Against this backdrop, we are raising our organic annual guidance for the year, adjusting for the impact of divestitures and currency. As many of you know, we think on a 3-4-3 operating cadence, simultaneously balancing three months, four quarters, and three years. We aim for the same balance on these update calls. I'll start my commentary by addressing some of the specific topics you've been asking about in the 3-4 zone, namely Russia and Ukraine, supply chain, inflation, and market conditions. Starting with Russia and Ukraine, our first priority remains the safety of our teams. For the business, we continue to pause all new sales into Russia and Belarus, and our long-term planning assumption is that our 2% of revenue from the region does not come back, most of which comes from agriculture and survey hardware. Given our current backlog, we are directing as much product elsewhere as possible, and we do not anticipate a material change to 2022 company revenue. In Ukraine, we are highly motivated to help however we can, but the practicalities on the ground are obviously very difficult. We have donated to relief efforts through our foundation, and have begun preparations for how we can help with rebuild efforts. As it relates to supply chain, the short answer is that it isn't getting easier, but we also... Once again, your line will be placed on music hold until the call begins.

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