Trimble Inc. (TRMB) Affirms Focus on Growing Software and Recurring Revenues

Trimble Inc. (NASDAQ:TRMB) is one of the best tech stocks to buy, according to Cathie Wood. On September 11, at the Piper Sandler 4th Annual Growth Frontiers Conference, the company reiterated its shift towards a software-driven revenue model.

The shift is part of the company’s bid to target $3 billion in annual recurring revenue and $ 4 billion in revenue by 2027. Currently, the company generates at least 80% of its revenues from software offerings, with two-thirds from recurring sources.

Trimble has set its sights on the Trimble AECO segment, which remains a significant growth driver. The segment boasts of high teens ARR growth while staring at a $1 billion opportunity in cross-selling and upselling.

“The ARR there has been growing really well. We’re doing conversions in that business, but we’re also developing new products that are out of the gate subscriptions. When we think about those two segments, there’s a lot of overlap in the customers. We report that way for various reasons,” said Phil Sawarynski, CFO, and Trimble.

Trimble Inc. (NASDAQ:TRMB) is a technology company that creates hardware, software, and cloud services to connect the digital and physical worlds. Its solution helps customers in industries like construction, geospatial, agriculture, and transportation work more productively, safely, and sustainably.

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Disclosure: None. This article is originally published at Insider Monkey.