1 00:00:07,960 --> 00:00:10,639 Speaker 1: Hi everyone, this is Lee Clasgow and we're Talking Transports. 2 00:00:10,680 --> 00:00:14,120 Speaker 1: Welcome to Bloomberg Intelligence Talking Transports Podcast. I'm your host, 3 00:00:14,160 --> 00:00:19,000 Speaker 1: Lee Clasgow, senior Freight, transportation and Logistics Analysts at Bloomberg Intelligence, 4 00:00:19,079 --> 00:00:22,040 Speaker 1: Bloomberg's in house research arm of almost five hundred analysts 5 00:00:22,040 --> 00:00:24,959 Speaker 1: and strategists around the globe. Before diving in a little 6 00:00:24,960 --> 00:00:28,800 Speaker 1: public service announcement, your support is instrumental to keep bringing 7 00:00:28,800 --> 00:00:31,200 Speaker 1: great guests onto the podcast like the one we have today. 8 00:00:31,600 --> 00:00:33,960 Speaker 1: If you haven't already, please do take a moment to 9 00:00:34,000 --> 00:00:37,920 Speaker 1: follow rate and share the Talking Transport Podcast with your friends, family, 10 00:00:38,040 --> 00:00:41,960 Speaker 1: and colleagues. We appreciate your support. I'm very excited to 11 00:00:41,960 --> 00:00:45,120 Speaker 1: have with us today. Rob Painter, President and CEO of Trimble, 12 00:00:45,440 --> 00:00:49,519 Speaker 1: a position he's held since twenty twenty. From twenty sixteen 13 00:00:49,560 --> 00:00:53,200 Speaker 1: through twenty nineteen, he served as the company's chief financial officer. 14 00:00:53,680 --> 00:00:56,440 Speaker 1: Joining the company in two thousand and six, Rob has 15 00:00:56,480 --> 00:01:00,560 Speaker 1: held a variety of leadership positions, including corporate development, corporate strategy, 16 00:01:00,800 --> 00:01:05,160 Speaker 1: general management of construction Services, general manager of the Intelligent 17 00:01:05,280 --> 00:01:10,160 Speaker 1: Construction Tools International joint venture, and Vice president of Trimble 18 00:01:10,240 --> 00:01:14,600 Speaker 1: Buildings Construction Software. In twenty thirteen, he was appointed to 19 00:01:14,640 --> 00:01:18,600 Speaker 1: serve on the Synopsis Board of Directors. Rob holds a 20 00:01:18,600 --> 00:01:21,800 Speaker 1: bachelor's degree in finance from West Virginia University and an 21 00:01:21,880 --> 00:01:25,840 Speaker 1: MBA from Harvard University. Welcome to the podcast, Rob, thanks 22 00:01:25,880 --> 00:01:27,000 Speaker 1: for joining us today. 23 00:01:27,160 --> 00:01:29,040 Speaker 2: Lee, thanks for having me. Good to be here. 24 00:01:29,440 --> 00:01:31,480 Speaker 1: So are you more of a mountaineer or a Crimson 25 00:01:31,520 --> 00:01:32,040 Speaker 1: Tide fan? 26 00:01:32,800 --> 00:01:34,600 Speaker 2: Mountaineers? Baby? It runs deep? 27 00:01:35,080 --> 00:01:38,920 Speaker 1: Okay. So you know, Trimble is a name that I 28 00:01:38,959 --> 00:01:42,160 Speaker 1: think you know people within the transportation world now and 29 00:01:42,160 --> 00:01:44,640 Speaker 1: in other markets that you know you do that you 30 00:01:44,680 --> 00:01:47,080 Speaker 1: guys do operate in. Can you talk a little bit 31 00:01:47,080 --> 00:01:50,520 Speaker 1: about Trimble? You know, what do you do and kind 32 00:01:50,520 --> 00:01:54,080 Speaker 1: of you know the markets that you serve. Yeah. 33 00:01:54,080 --> 00:01:56,240 Speaker 2: Hey, the why of Trimble is to feed the world 34 00:01:56,320 --> 00:01:58,920 Speaker 2: and move the world, build the world. We've had a 35 00:01:59,000 --> 00:02:03,400 Speaker 2: forty seven year history and mission to transform the way 36 00:02:03,480 --> 00:02:07,360 Speaker 2: the world works. And we're doing that by applying technology 37 00:02:07,560 --> 00:02:11,400 Speaker 2: that's connecting work in the physical world and the digital world. 38 00:02:11,440 --> 00:02:16,160 Speaker 2: And we're primarily deploying that in industries such as transportation 39 00:02:16,240 --> 00:02:21,480 Speaker 2: and logistics, geospatial and engineering and construction. There's over twelve 40 00:02:21,520 --> 00:02:25,520 Speaker 2: thousand Trimble colleagues around the world doing business and over 41 00:02:25,560 --> 00:02:29,040 Speaker 2: one hundred and thirty five different countries today. 42 00:02:29,720 --> 00:02:32,720 Speaker 1: And so and just for those that are n'taware, Trimble 43 00:02:32,800 --> 00:02:35,079 Speaker 1: is a public company as an eighteen billion dollar market 44 00:02:35,080 --> 00:02:39,600 Speaker 1: gap and trades on the symbol tr MB. So you 45 00:02:39,600 --> 00:02:42,120 Speaker 1: can find that on more information on the Blueberg terminal 46 00:02:42,120 --> 00:02:45,480 Speaker 1: all about Trimble. So could you just know you mentioned 47 00:02:45,520 --> 00:02:47,519 Speaker 1: the three things that you like to do, feed, build, 48 00:02:47,680 --> 00:02:50,800 Speaker 1: and move. Can you talk about you know, you know 49 00:02:50,840 --> 00:02:54,320 Speaker 1: why you're here today on talking transports, on your transportation segment? 50 00:02:55,360 --> 00:02:58,400 Speaker 1: What kind of software are you providing? How do people 51 00:02:58,680 --> 00:03:01,000 Speaker 1: use the software that you guys develop. 52 00:03:02,480 --> 00:03:06,880 Speaker 2: Yeah, So to understand Tremble is probably to understand our strategy, 53 00:03:06,960 --> 00:03:10,440 Speaker 2: and for many years we've had a strategy to connect 54 00:03:10,480 --> 00:03:14,679 Speaker 2: industry life cycles. We believe in connecting users, data, stakeholders, 55 00:03:14,720 --> 00:03:19,560 Speaker 2: and workflow across the participants in an industry life cycle continuum. 56 00:03:19,760 --> 00:03:23,160 Speaker 2: So if we look at the transportation industry, we think 57 00:03:23,200 --> 00:03:28,320 Speaker 2: of the life cycle fourfold source plan, execute, settle, and 58 00:03:28,360 --> 00:03:32,200 Speaker 2: we see that life cycle for the carriers. We also 59 00:03:32,240 --> 00:03:35,360 Speaker 2: see that life cycle for the shippers, and at that 60 00:03:35,480 --> 00:03:39,480 Speaker 2: intersection point between the two, we see an industry platform 61 00:03:39,520 --> 00:03:42,560 Speaker 2: that comes together to move that data across the industry 62 00:03:42,600 --> 00:03:48,360 Speaker 2: life cycle. Continuum. So over the last twenty plus years, 63 00:03:48,400 --> 00:03:51,960 Speaker 2: we've built up a set of capabilities to serve that 64 00:03:52,080 --> 00:03:55,960 Speaker 2: industry life cycle continuum for both the carriers and the shippers. 65 00:03:56,000 --> 00:04:00,640 Speaker 2: To be more specific, that means we're doing transportation management, 66 00:04:01,840 --> 00:04:05,560 Speaker 2: We're doing maintenance, We're doing tracking and visibility, routing, mapping, 67 00:04:06,440 --> 00:04:12,480 Speaker 2: navigation optimization, safety compliance, just to name a few of 68 00:04:12,520 --> 00:04:16,560 Speaker 2: the many solutions that we have across the continuum. Our 69 00:04:16,600 --> 00:04:20,040 Speaker 2: history had predominantly been more North American based and more 70 00:04:20,040 --> 00:04:25,160 Speaker 2: carrier based. In twenty twenty three, we acquired Transporion, which 71 00:04:25,200 --> 00:04:30,200 Speaker 2: brought to us European centricity and Chipper centricity, and that 72 00:04:30,279 --> 00:04:33,400 Speaker 2: has given us a step function to really go after 73 00:04:33,480 --> 00:04:35,120 Speaker 2: this mission of transformation. 74 00:04:36,279 --> 00:04:39,120 Speaker 1: Okay, and could you talk about the transportation logistics business 75 00:04:39,200 --> 00:04:42,080 Speaker 1: as it sits within you know, the bigger portfolio of 76 00:04:42,080 --> 00:04:45,760 Speaker 1: the company. Roughly how much is it responsible for the 77 00:04:45,760 --> 00:04:47,800 Speaker 1: revenues and earnings of the company. 78 00:04:48,440 --> 00:04:51,600 Speaker 2: So at a public at our public company level, you 79 00:04:51,640 --> 00:04:54,920 Speaker 2: know today we have approximately over three billion I'll be approximate, 80 00:04:54,960 --> 00:04:58,080 Speaker 2: because we have here in a couple of weeks. Our 81 00:04:58,120 --> 00:05:04,239 Speaker 2: revenues stands over three billion US dollars today, over seventy 82 00:05:04,240 --> 00:05:07,440 Speaker 2: five percent of that is software today, So we're software 83 00:05:07,920 --> 00:05:11,320 Speaker 2: forward business. The hardware we have actually really serves as 84 00:05:11,360 --> 00:05:13,920 Speaker 2: that I think of it as an industrial IoT context, 85 00:05:14,000 --> 00:05:18,040 Speaker 2: that intelligence out in the real world of of what's happening, 86 00:05:18,080 --> 00:05:21,480 Speaker 2: and that connectivity is very central to our strategy between hardware, software, 87 00:05:21,520 --> 00:05:24,600 Speaker 2: office field, and physical and the digital worlds. If you 88 00:05:24,640 --> 00:05:27,720 Speaker 2: take the transportation business specifically, the segment that's one of 89 00:05:27,760 --> 00:05:31,000 Speaker 2: our three reporting segments in twenty twenty three, so I'll 90 00:05:31,040 --> 00:05:33,440 Speaker 2: go back another year in twenty twenty three, over seven 91 00:05:33,520 --> 00:05:39,080 Speaker 2: hundred million dollar business and it's predominantly the vast majority 92 00:05:39,080 --> 00:05:39,960 Speaker 2: of that is software. 93 00:05:40,240 --> 00:05:44,280 Speaker 1: And I guess, is there any hardware play here that 94 00:05:44,640 --> 00:05:46,400 Speaker 1: you have or are you in the cabs or you're 95 00:05:46,440 --> 00:05:49,760 Speaker 1: just in the cabs through software on other people's I 96 00:05:49,800 --> 00:05:51,120 Speaker 1: guess devices. 97 00:05:51,480 --> 00:05:55,320 Speaker 2: Yeah, So we've played in the telematics space for a 98 00:05:55,360 --> 00:05:58,160 Speaker 2: long time, so now we can talk. We'll probably come 99 00:05:58,160 --> 00:06:01,200 Speaker 2: to that in the conversation because we announced a few 100 00:06:01,240 --> 00:06:05,880 Speaker 2: months ago an intention to divest our telematics business into 101 00:06:06,600 --> 00:06:09,800 Speaker 2: a platform science and then to become the largest shareholder 102 00:06:10,200 --> 00:06:12,320 Speaker 2: in that entity on a go forward basis. So we've 103 00:06:12,360 --> 00:06:15,200 Speaker 2: very much been in the cab for a long time, 104 00:06:15,240 --> 00:06:18,000 Speaker 2: and that does help provide that basis of connecting the 105 00:06:18,040 --> 00:06:19,440 Speaker 2: field to the office. 106 00:06:19,800 --> 00:06:23,080 Speaker 1: And could you talk about the addressable market for transportation 107 00:06:23,200 --> 00:06:26,120 Speaker 1: logistics At Trimble. 108 00:06:26,760 --> 00:06:30,320 Speaker 2: We see it as over an eight billion dollar addressable 109 00:06:30,360 --> 00:06:32,680 Speaker 2: market today. At a company level, if we look at 110 00:06:32,720 --> 00:06:35,159 Speaker 2: all the markets we serve, we see about seventy billion 111 00:06:35,200 --> 00:06:38,760 Speaker 2: dollars of addressable market. But the eight billion dollars addressable 112 00:06:38,800 --> 00:06:42,159 Speaker 2: market we think is growing in the high single digit range, 113 00:06:42,400 --> 00:06:46,200 Speaker 2: and that that market is about forty percent penetrated today. 114 00:06:46,680 --> 00:06:49,640 Speaker 2: And that's something that's also been central to the thesis 115 00:06:49,680 --> 00:06:53,600 Speaker 2: of the strategy at Trembull is serving markets that are large, global, 116 00:06:53,839 --> 00:06:59,400 Speaker 2: that are underserved and under penetrated, that have fundamental challenges 117 00:06:59,480 --> 00:07:02,960 Speaker 2: to overcome, where technology can be a major component of 118 00:07:03,000 --> 00:07:06,200 Speaker 2: helping our customers do their work better, faster, safer, cheaper 119 00:07:06,200 --> 00:07:06,719 Speaker 2: and greener. 120 00:07:07,440 --> 00:07:10,000 Speaker 1: And when you say, I guess sixty percent is unpenetrated, 121 00:07:10,240 --> 00:07:13,120 Speaker 1: could you give me an example of what that potential 122 00:07:13,160 --> 00:07:14,160 Speaker 1: customer would look like. 123 00:07:15,200 --> 00:07:18,520 Speaker 2: So we held an investor day actually on December tenth, 124 00:07:18,520 --> 00:07:20,880 Speaker 2: so just a few weeks ago, when we went through 125 00:07:20,920 --> 00:07:23,160 Speaker 2: each of the three segments, and one of the things 126 00:07:23,160 --> 00:07:25,520 Speaker 2: we talked about in our transportation business is that we 127 00:07:25,560 --> 00:07:28,560 Speaker 2: see hundreds of millions of dollars of cross sell and 128 00:07:28,640 --> 00:07:31,280 Speaker 2: up sell opportunities. So if you think about the breadth 129 00:07:31,360 --> 00:07:33,520 Speaker 2: of the solution base we have and you map that 130 00:07:33,600 --> 00:07:37,520 Speaker 2: against the customers that we already serve today, we see 131 00:07:37,680 --> 00:07:42,400 Speaker 2: a compelling opportunity to serve our customers better by helping 132 00:07:42,440 --> 00:07:45,080 Speaker 2: them adopt more of the technology suite that we have, 133 00:07:45,520 --> 00:07:49,080 Speaker 2: and not only just let's say adopting more of the 134 00:07:49,080 --> 00:07:51,360 Speaker 2: technology suite we have. You could think of it as 135 00:07:51,400 --> 00:07:54,800 Speaker 2: those point solutions. What's more interesting than point solutions is 136 00:07:54,840 --> 00:07:59,960 Speaker 2: connecting workflow and connecting ecosystems, solving those higher order problems, 137 00:08:00,360 --> 00:08:04,280 Speaker 2: whether they're connecting Tremble or non Tremble solutions in order 138 00:08:04,320 --> 00:08:06,920 Speaker 2: to go after some of the bigger problems that our 139 00:08:06,960 --> 00:08:08,680 Speaker 2: customers have to address. 140 00:08:09,720 --> 00:08:12,000 Speaker 1: Can you talk to us like you mentioned you got 141 00:08:12,080 --> 00:08:15,240 Speaker 1: more penetration the shipper market with a recent acquisition. Can 142 00:08:15,320 --> 00:08:18,280 Speaker 1: you talk about, you know, how a shipper might use 143 00:08:18,760 --> 00:08:21,560 Speaker 1: Trimble what like you know, what kind of software does 144 00:08:21,600 --> 00:08:25,680 Speaker 1: it use? How does it make them better, faster, smarter? 145 00:08:26,840 --> 00:08:29,360 Speaker 2: Sure, so think of let's look at the TRANSPORTI on 146 00:08:29,480 --> 00:08:34,480 Speaker 2: business today. It's a transportation management platform. It's connecting carriers 147 00:08:34,520 --> 00:08:38,839 Speaker 2: and shippers. It's a shipper forward model. And so far 148 00:08:38,920 --> 00:08:41,120 Speaker 2: as we look at the shipper network we have, we 149 00:08:41,200 --> 00:08:45,200 Speaker 2: have over fourteen hundred shippers and the network. In that 150 00:08:45,280 --> 00:08:48,880 Speaker 2: same network, we have over one hundred and sixty thousand 151 00:08:48,920 --> 00:08:51,480 Speaker 2: carriers who are part of that. So now think about 152 00:08:51,480 --> 00:08:55,640 Speaker 2: connecting shippers and carriers. Over sixty billion US dollars a 153 00:08:55,679 --> 00:09:00,520 Speaker 2: freight is connected through that system. We can to over 154 00:09:00,640 --> 00:09:04,600 Speaker 2: We have three thousand integrations with ERP and warehouse management systems. 155 00:09:05,559 --> 00:09:10,800 Speaker 2: We have over twenty six million transports are driven no 156 00:09:10,840 --> 00:09:14,600 Speaker 2: pun intended through our system every year, every day. That 157 00:09:14,679 --> 00:09:17,920 Speaker 2: means there's a few hundred thousand transaction that's happening today 158 00:09:18,000 --> 00:09:20,200 Speaker 2: on our platform. It is a platform in the truest 159 00:09:20,200 --> 00:09:24,040 Speaker 2: sense of the world that's connecting the shippers to their carriers. 160 00:09:25,040 --> 00:09:27,839 Speaker 1: Right and then, so not only I guess do they 161 00:09:27,840 --> 00:09:31,400 Speaker 1: can find capacity on the platform, it also helps them 162 00:09:31,440 --> 00:09:34,920 Speaker 1: with the billing and paying and paying the carriers as well. 163 00:09:35,280 --> 00:09:40,319 Speaker 2: So thank sourcing, planning, executing, monitoring, settling, freight audit. These 164 00:09:40,360 --> 00:09:45,199 Speaker 2: are all services that exist on our platform. 165 00:09:45,480 --> 00:09:47,600 Speaker 1: And when you say moderning, is that like tracking so 166 00:09:47,640 --> 00:09:51,200 Speaker 1: you can see where your freight is exactly gotcha. So, 167 00:09:51,520 --> 00:09:56,240 Speaker 1: you know, whenever you're putting together carriers and shippers, especially 168 00:09:56,280 --> 00:09:58,920 Speaker 1: in today's world, there's a lot of there's been an 169 00:09:58,960 --> 00:10:04,040 Speaker 1: increase in fraud in the trucking industry. How does your system, 170 00:10:04,080 --> 00:10:06,280 Speaker 1: I guess fight against that, Like, how do you vet 171 00:10:06,559 --> 00:10:08,000 Speaker 1: the carriers that are on the system. 172 00:10:09,400 --> 00:10:12,280 Speaker 2: Well, just that we vet them by signing them up. 173 00:10:12,320 --> 00:10:14,920 Speaker 2: And often what our shipper customers will do is bring 174 00:10:14,960 --> 00:10:20,040 Speaker 2: to the US their carrier network, gotch So to extent 175 00:10:20,120 --> 00:10:23,559 Speaker 2: that the shippers have validated and vetted their carriers, then 176 00:10:23,600 --> 00:10:26,960 Speaker 2: that checks the checks the box on that one. So 177 00:10:27,280 --> 00:10:30,440 Speaker 2: it's not a yeah, there's not a what you would 178 00:10:30,440 --> 00:10:34,000 Speaker 2: call it the false positives that come across our network. 179 00:10:34,040 --> 00:10:38,480 Speaker 2: These are all identified shippers and identified carriers who have 180 00:10:38,520 --> 00:10:41,200 Speaker 2: been qualified to be in our network. In fact, many 181 00:10:41,240 --> 00:10:43,000 Speaker 2: of the carriers in the network would serve many of 182 00:10:43,000 --> 00:10:44,760 Speaker 2: the shippers in our network. 183 00:10:46,559 --> 00:10:48,559 Speaker 1: So you know, you mentioned, you know, cross selling is 184 00:10:48,600 --> 00:10:52,120 Speaker 1: a big way to kind of tap that untapped market, 185 00:10:52,200 --> 00:10:55,480 Speaker 1: that that the market that penetrate that sixty percent that 186 00:10:55,520 --> 00:10:58,240 Speaker 1: you mentioned. Is there anything else that you guys are doing? 187 00:10:58,400 --> 00:11:01,120 Speaker 1: Is it? Is it kind of like the acquisition that 188 00:11:01,200 --> 00:11:04,040 Speaker 1: you mentioned? Is it doing more both on acquisitions where 189 00:11:04,040 --> 00:11:06,680 Speaker 1: it gives you access to different parts of the market 190 00:11:06,760 --> 00:11:09,359 Speaker 1: or different different geographies. 191 00:11:10,559 --> 00:11:14,600 Speaker 2: Well, over time, Trimble's been an acquisitive company. We've acquired 192 00:11:14,600 --> 00:11:18,480 Speaker 2: over one hundred businesses over the last twenty plus years 193 00:11:18,480 --> 00:11:22,880 Speaker 2: in order to positively assert and affect the strategy of 194 00:11:22,960 --> 00:11:26,840 Speaker 2: connectivity that I talked about. Having said that, let's talk 195 00:11:26,840 --> 00:11:29,880 Speaker 2: about organic growth. We've put over two point five billion 196 00:11:29,960 --> 00:11:32,760 Speaker 2: dollars into research and development in the last five years 197 00:11:32,800 --> 00:11:36,800 Speaker 2: into our company. So I say very affirmatively that we 198 00:11:36,880 --> 00:11:41,960 Speaker 2: think about organic growth first, so attracting new customers to 199 00:11:42,040 --> 00:11:45,000 Speaker 2: Tremble and then working with them through the journey to 200 00:11:45,800 --> 00:11:49,760 Speaker 2: adopt more of our technologies. We think about innovating within 201 00:11:49,800 --> 00:11:52,440 Speaker 2: the portfolio we've got, making what we've got better and 202 00:11:52,480 --> 00:11:56,480 Speaker 2: more compelling, making what we've got more connected and therefore 203 00:11:56,480 --> 00:12:01,520 Speaker 2: more compelling. Again, I'm can get to this in the conversation. 204 00:12:02,160 --> 00:12:04,880 Speaker 2: We've been very forward in this business and investing in 205 00:12:05,000 --> 00:12:08,280 Speaker 2: AI for example, and automation and how that can unlock 206 00:12:08,320 --> 00:12:11,839 Speaker 2: new features and capabilities for our customers. 207 00:12:12,400 --> 00:12:14,560 Speaker 1: All Right, you mentioned AI, so let's talk about it. 208 00:12:15,040 --> 00:12:18,840 Speaker 1: So what are you doing with AI? You know, where 209 00:12:18,840 --> 00:12:20,800 Speaker 1: are you in the journey? What is it doing not 210 00:12:20,840 --> 00:12:25,640 Speaker 1: only for you, Trimble, but what is it doing for 211 00:12:25,960 --> 00:12:28,160 Speaker 1: your customers, whether it's a shipper or a carrier. 212 00:12:28,640 --> 00:12:32,319 Speaker 2: Yeah, so let's break that down and internal facing ad 213 00:12:32,360 --> 00:12:36,560 Speaker 2: options of AI and then customer facing and an internal perspective. 214 00:12:36,880 --> 00:12:39,960 Speaker 2: Over ninety percent of our engineers are using gethub Copilot 215 00:12:40,400 --> 00:12:45,120 Speaker 2: for code development and productivity. Therein we have our own 216 00:12:45,160 --> 00:12:50,200 Speaker 2: internal chat GPT, we call it Trimble Assistant, where the 217 00:12:50,360 --> 00:12:55,280 Speaker 2: entirety of the company can leverage that behind behind our firewall, 218 00:12:55,679 --> 00:12:58,560 Speaker 2: we've got to make sure we protect our intellectual property 219 00:12:58,600 --> 00:13:02,040 Speaker 2: as well as our customers data. From a more customer 220 00:13:02,080 --> 00:13:05,839 Speaker 2: facing perspective on AI, I'm going to give you a 221 00:13:05,880 --> 00:13:10,000 Speaker 2: few examples of that. So we've introduced autonomous procurement and 222 00:13:10,040 --> 00:13:15,600 Speaker 2: autonomous quotation capabilities. So in that matching of freight between 223 00:13:16,080 --> 00:13:19,240 Speaker 2: the shipper and the carrier, there could be a broker 224 00:13:19,240 --> 00:13:22,680 Speaker 2: as well between the shipper and the carrier. Autonomous procurement 225 00:13:22,760 --> 00:13:27,040 Speaker 2: is enabling no touch buying and what we're finding is 226 00:13:27,080 --> 00:13:30,880 Speaker 2: when we do this, we can deliver seven to twelve 227 00:13:30,920 --> 00:13:36,080 Speaker 2: percent savings on the freight. On the autonomous quotation side 228 00:13:36,320 --> 00:13:40,239 Speaker 2: of the house, what we're seeing is that pricing accuracy 229 00:13:40,480 --> 00:13:43,840 Speaker 2: is improved, and when you're matching that carrier and the shipping, 230 00:13:43,880 --> 00:13:46,000 Speaker 2: you're doing it in an automated fashion. You have an 231 00:13:46,000 --> 00:13:50,000 Speaker 2: ability to understand not only the price elasticity, but where 232 00:13:50,120 --> 00:13:53,559 Speaker 2: what's the state of any given lane and the necessity 233 00:13:53,600 --> 00:13:56,280 Speaker 2: to fill that lane. And so we're finding for our 234 00:13:56,280 --> 00:13:58,760 Speaker 2: customers that it's more efficient, they're getting better outcomes when 235 00:13:58,760 --> 00:14:03,319 Speaker 2: they adopt autonomous procurement and autonomous quotation. We're also using 236 00:14:03,360 --> 00:14:07,880 Speaker 2: it for customer support. As you can imagine, think about 237 00:14:07,920 --> 00:14:10,000 Speaker 2: in our personal lives, how often these days do we 238 00:14:10,040 --> 00:14:12,240 Speaker 2: go to YouTube to try and figure out how something 239 00:14:12,559 --> 00:14:16,120 Speaker 2: works that we own or that we've bought. This is 240 00:14:16,160 --> 00:14:18,720 Speaker 2: putting more of that power into our customer's hand for 241 00:14:18,760 --> 00:14:21,520 Speaker 2: them to be able to get the support they need 242 00:14:21,600 --> 00:14:25,920 Speaker 2: quicker using the technology in our mapping business. So we 243 00:14:26,000 --> 00:14:32,520 Speaker 2: have a very important and successful mapping business at Trimble, 244 00:14:32,720 --> 00:14:37,280 Speaker 2: so we're continually developing those maps, truck specific maps and routes. 245 00:14:37,720 --> 00:14:41,520 Speaker 2: Feature extraction, so using AI to automate feature extraction out 246 00:14:41,520 --> 00:14:45,280 Speaker 2: of the large data sets to get information. Like we 247 00:14:45,360 --> 00:14:47,520 Speaker 2: have a lot of data these days, data isn't the problem. 248 00:14:47,560 --> 00:14:50,440 Speaker 2: Information tends to be more of the problem. And so 249 00:14:50,480 --> 00:14:53,640 Speaker 2: when you can leverage the AI to turn the data 250 00:14:53,640 --> 00:14:56,400 Speaker 2: into information good things, Good things happen. 251 00:14:57,280 --> 00:15:00,320 Speaker 1: And so is the AI has the AI or the 252 00:15:00,360 --> 00:15:05,080 Speaker 1: machine learning has that created new opportunities for you because 253 00:15:05,200 --> 00:15:07,880 Speaker 1: all of a sudden you had this wealth of data 254 00:15:07,960 --> 00:15:11,720 Speaker 1: on your system and now you know, you have tools 255 00:15:11,760 --> 00:15:16,080 Speaker 1: that can really process it and you know, provide a 256 00:15:16,200 --> 00:15:19,400 Speaker 1: level of analysis and forecasting that you probably might have 257 00:15:19,440 --> 00:15:20,280 Speaker 1: not had before. 258 00:15:20,760 --> 00:15:22,440 Speaker 2: Yeah, I feel like the best examples we have with 259 00:15:22,440 --> 00:15:25,520 Speaker 2: that are this autonomous procurement and autonomous quotation. Now our 260 00:15:25,520 --> 00:15:29,200 Speaker 2: customers can still buy the manual use of that, and 261 00:15:29,240 --> 00:15:31,240 Speaker 2: so can you use leverage the technology, but do it 262 00:15:31,280 --> 00:15:34,040 Speaker 2: manually to find to find to find their carrier, to 263 00:15:34,080 --> 00:15:36,800 Speaker 2: find the loads that they want to take, or you 264 00:15:36,800 --> 00:15:39,680 Speaker 2: can put it in the hands of the automation to 265 00:15:39,760 --> 00:15:41,320 Speaker 2: do the to do the matching. And then when we 266 00:15:41,360 --> 00:15:44,640 Speaker 2: see when we let the automation do the routine, is 267 00:15:44,720 --> 00:15:48,360 Speaker 2: that it's providing better answers to the customers and it 268 00:15:48,400 --> 00:15:51,000 Speaker 2: really is underpinned by data. Like so I go back 269 00:15:51,000 --> 00:15:54,200 Speaker 2: to that. You know, what's one of the very unique 270 00:15:54,240 --> 00:15:56,960 Speaker 2: things about Trimble is when you have tens of billions 271 00:15:56,960 --> 00:15:59,360 Speaker 2: of freight the run we have over a billion data 272 00:15:59,400 --> 00:16:02,120 Speaker 2: points that are come into our systems every day. We've 273 00:16:02,160 --> 00:16:05,680 Speaker 2: got five million commercial locations that have dwell time metrics 274 00:16:06,080 --> 00:16:08,800 Speaker 2: on them. When you have that kind of density and 275 00:16:08,920 --> 00:16:12,760 Speaker 2: scope of data, that gives and creates an opportunity to 276 00:16:12,800 --> 00:16:15,680 Speaker 2: do really interesting and compelling things. On top of that 277 00:16:15,480 --> 00:16:18,400 Speaker 2: and the examples we talked about, I think it's just 278 00:16:18,520 --> 00:16:22,680 Speaker 2: the very very beginning of the game of what's possible. 279 00:16:23,960 --> 00:16:26,080 Speaker 1: So, you know, you mentioned earlier in the conversation the 280 00:16:26,080 --> 00:16:29,480 Speaker 1: Internet of things. You know, how has that change you know, 281 00:16:29,840 --> 00:16:34,440 Speaker 1: the way I guess the information that Trimble collects and 282 00:16:34,560 --> 00:16:39,920 Speaker 1: is able to analyze use leverage which benefits its customers. Yeah. 283 00:16:40,040 --> 00:16:41,760 Speaker 2: So in a way, I tend to think Trimble was 284 00:16:41,800 --> 00:16:44,920 Speaker 2: IoT before there was IoT. We were autonomy before we 285 00:16:45,000 --> 00:16:47,720 Speaker 2: ever had a label of autonomy. It goes back to 286 00:16:47,800 --> 00:16:51,680 Speaker 2: our long history of connecting work in the office and 287 00:16:51,800 --> 00:16:53,680 Speaker 2: the field, and so that is you know, we talk 288 00:16:53,720 --> 00:16:57,160 Speaker 2: about digital twins these days. You can't have a digital 289 00:16:57,200 --> 00:17:00,880 Speaker 2: twin if you don't actually know what the physical object is. 290 00:17:00,960 --> 00:17:04,280 Speaker 2: And so that's that reference point we have of work 291 00:17:04,320 --> 00:17:07,840 Speaker 2: in the field. Office to me, was very prescient. I'm 292 00:17:07,960 --> 00:17:10,640 Speaker 2: looking back, you know, back in time that we've been 293 00:17:10,640 --> 00:17:12,640 Speaker 2: on this journey for a long time. We didn't wake 294 00:17:12,720 --> 00:17:16,320 Speaker 2: up last year once we heard the words chat GPT 295 00:17:16,440 --> 00:17:18,000 Speaker 2: a couple of years ago for the first time and say, 296 00:17:18,000 --> 00:17:19,320 Speaker 2: oh my gosh, what are we going to do about it? 297 00:17:19,320 --> 00:17:22,359 Speaker 2: We've been on this journey of connectivity for a couple 298 00:17:22,359 --> 00:17:26,040 Speaker 2: of decades and so leaves me very optimistic of our 299 00:17:26,119 --> 00:17:28,639 Speaker 2: path ahead and the opportunities we have to better serve 300 00:17:29,000 --> 00:17:30,040 Speaker 2: our customers. 301 00:17:30,600 --> 00:17:32,480 Speaker 1: Hey, can you like just like dub it down for 302 00:17:32,600 --> 00:17:35,520 Speaker 1: me a little bit? So you know, does does you 303 00:17:35,560 --> 00:17:39,360 Speaker 1: know when a carrier has is using your service? Are 304 00:17:39,400 --> 00:17:42,080 Speaker 1: you in like an owner operator's cab or you just 305 00:17:42,240 --> 00:17:48,080 Speaker 1: you're in fleets? It can be both so in order 306 00:17:48,200 --> 00:17:51,080 Speaker 1: so your customers can be one person, one truck, or 307 00:17:51,080 --> 00:17:53,040 Speaker 1: it could be somebody with five thousand trucks. 308 00:17:53,240 --> 00:17:55,840 Speaker 2: It can, but it's predominantly the fleet, so eighty five 309 00:17:56,000 --> 00:17:57,800 Speaker 2: more than eighty five percent of the top two hundred 310 00:17:57,800 --> 00:18:01,159 Speaker 2: trucking fleets in North America or Trumbull customer where you 311 00:18:01,160 --> 00:18:02,840 Speaker 2: would tend to see the long tail of let's say 312 00:18:02,840 --> 00:18:05,240 Speaker 2: the owner operators would be more in our mapping and 313 00:18:05,320 --> 00:18:09,840 Speaker 2: routing solutions. Our solutions are really the de facto mileage 314 00:18:09,840 --> 00:18:14,040 Speaker 2: of record, I'm here in the US PC miler. That's 315 00:18:14,359 --> 00:18:19,280 Speaker 2: that's tremble. So we are very very broadly adopted. But 316 00:18:19,320 --> 00:18:21,679 Speaker 2: if you took, if I take the entirety of the business, 317 00:18:21,520 --> 00:18:25,080 Speaker 2: it is centric to the larger to the larger end 318 00:18:25,119 --> 00:18:25,800 Speaker 2: of customers. 319 00:18:26,480 --> 00:18:28,200 Speaker 1: So I don't know if you have you know, if 320 00:18:28,200 --> 00:18:30,360 Speaker 1: you could share, but like, what is you know when 321 00:18:30,359 --> 00:18:33,679 Speaker 1: you guys are looking at the data, you know, what 322 00:18:33,800 --> 00:18:36,200 Speaker 1: is it telling you about the trucking market right now? 323 00:18:37,720 --> 00:18:39,840 Speaker 2: M So, Hey, I listened to your podcast and so 324 00:18:39,920 --> 00:18:43,280 Speaker 2: I've listened to the a number of episodes lately. You know, 325 00:18:43,320 --> 00:18:47,399 Speaker 2: you've talked about everything from tender rejection rates to expectations 326 00:18:48,040 --> 00:18:51,399 Speaker 2: low single digit on contract expect in North America, double 327 00:18:51,440 --> 00:18:54,399 Speaker 2: digit on the on the spot, on the spot rates. 328 00:18:54,840 --> 00:18:57,919 Speaker 2: I'd say that's consistent with the data that we're seeing 329 00:18:58,560 --> 00:19:00,880 Speaker 2: in our in our systems. So I would be more 330 00:19:01,240 --> 00:19:05,639 Speaker 2: confirming what I hear from you and your guests that 331 00:19:05,680 --> 00:19:08,680 Speaker 2: you've had on of late if I could double click 332 00:19:08,880 --> 00:19:11,360 Speaker 2: a little bit within that, if I use Europe as 333 00:19:11,400 --> 00:19:14,679 Speaker 2: an example, through the data we have, you know, we 334 00:19:14,720 --> 00:19:18,000 Speaker 2: can see industry specific data, So I give you a 335 00:19:18,040 --> 00:19:20,280 Speaker 2: European example here. But I really think it would play 336 00:19:20,280 --> 00:19:23,359 Speaker 2: pretty consistent around the world. What we can see is 337 00:19:23,359 --> 00:19:29,240 Speaker 2: if you take us in market such as automotive, it's 338 00:19:29,280 --> 00:19:33,920 Speaker 2: significantly down over the you know, over the last few years. 339 00:19:33,920 --> 00:19:37,359 Speaker 2: In fact, it's sort of down, down, down, down. Not 340 00:19:37,440 --> 00:19:40,439 Speaker 2: surprising when you actually think about the macros and the 341 00:19:40,480 --> 00:19:44,280 Speaker 2: state of the automotive industry. When I say that where 342 00:19:44,320 --> 00:19:46,880 Speaker 2: we see more positive growth as in I'll take retail 343 00:19:47,440 --> 00:19:49,600 Speaker 2: as a segment, and we're measuring this by the number 344 00:19:49,640 --> 00:19:54,440 Speaker 2: of loads that are moving every every month and then 345 00:19:54,640 --> 00:19:57,679 Speaker 2: of course every every year, so we can see differences 346 00:19:57,720 --> 00:19:59,960 Speaker 2: by industry, is where I'm going with that, And we 347 00:20:00,040 --> 00:20:02,320 Speaker 2: and see the softer and the weaker or excuse me, 348 00:20:02,320 --> 00:20:05,200 Speaker 2: the weaker and the stronger parts of the economy. 349 00:20:05,600 --> 00:20:09,639 Speaker 1: Gotcha? And then you know, I know you said organic 350 00:20:09,680 --> 00:20:13,960 Speaker 1: growth is preferred in a focus. Are there parts of 351 00:20:13,960 --> 00:20:16,879 Speaker 1: the market that you know Tremble is not in on 352 00:20:16,960 --> 00:20:20,879 Speaker 1: the transportation logistics side that makes sense for Trimble to 353 00:20:20,880 --> 00:20:23,680 Speaker 1: be in. Or is it more about doing what you're 354 00:20:23,680 --> 00:20:27,240 Speaker 1: doing to more regions of the world. 355 00:20:28,760 --> 00:20:31,479 Speaker 2: I'm i bias more to more in the regions of 356 00:20:31,520 --> 00:20:34,880 Speaker 2: the world. I think with the breadth of the capabilities 357 00:20:34,920 --> 00:20:37,480 Speaker 2: we have, if you think of them as legs on 358 00:20:38,040 --> 00:20:40,919 Speaker 2: a stool. I think we have the right legs on 359 00:20:41,000 --> 00:20:44,720 Speaker 2: the stool. So I think about which as we think 360 00:20:44,720 --> 00:20:48,800 Speaker 2: about with a global view of the industry that we have, 361 00:20:49,600 --> 00:20:54,159 Speaker 2: we may not be differentially available in any given market, 362 00:20:54,320 --> 00:20:58,200 Speaker 2: like not all the products translate globally, and so when 363 00:20:58,240 --> 00:21:01,400 Speaker 2: that respect, we'll often look at old by Partner as 364 00:21:01,400 --> 00:21:04,399 Speaker 2: a lens of how do we more fully serve our 365 00:21:04,440 --> 00:21:07,480 Speaker 2: customers in any given region. Now, we have the most 366 00:21:07,480 --> 00:21:11,080 Speaker 2: capabilities in North America and Europe now, but they're not 367 00:21:11,200 --> 00:21:14,240 Speaker 2: the same exact capabilities. So we're bringing the capabilities we 368 00:21:14,280 --> 00:21:16,480 Speaker 2: have from Europe into North America, and we want to 369 00:21:16,480 --> 00:21:18,760 Speaker 2: bring more of the capabilities we have in North America 370 00:21:19,200 --> 00:21:22,119 Speaker 2: into our European customers. 371 00:21:22,640 --> 00:21:24,480 Speaker 1: Can you talk a little bit about the capabilities that 372 00:21:24,520 --> 00:21:26,560 Speaker 1: you have in Europe that you're bringing into the US, Like, 373 00:21:26,640 --> 00:21:27,960 Speaker 1: what are those capabilities? 374 00:21:28,320 --> 00:21:31,879 Speaker 2: Yeah, So in Europe, what we'd be bringing in is 375 00:21:31,920 --> 00:21:34,639 Speaker 2: really the transporting on business, so we call it a 376 00:21:34,640 --> 00:21:38,880 Speaker 2: freight market place, that same capability to match carriers and shippers. 377 00:21:39,400 --> 00:21:42,719 Speaker 2: Our work that we've done for many years decades. In 378 00:21:42,760 --> 00:21:46,320 Speaker 2: fact here in North America is very carrier centric, so 379 00:21:46,560 --> 00:21:49,199 Speaker 2: we have density of carriers that we can bring to 380 00:21:49,320 --> 00:21:51,720 Speaker 2: the network. Our job is then to bring more ship 381 00:21:51,840 --> 00:21:54,280 Speaker 2: We already have the carriers, our opportunities to bring more 382 00:21:54,280 --> 00:21:57,840 Speaker 2: shippers into into the Tremble network. 383 00:21:58,280 --> 00:22:01,280 Speaker 1: So is that like a load is that? Is that 384 00:22:01,840 --> 00:22:02,080 Speaker 1: what a. 385 00:22:02,040 --> 00:22:04,080 Speaker 2: Difference between a loadboard and this is where you think 386 00:22:04,119 --> 00:22:07,119 Speaker 2: you get the fraud that can happen, you know, with 387 00:22:07,320 --> 00:22:11,280 Speaker 2: the data on that is. Uh, this isn't price discovery. 388 00:22:11,320 --> 00:22:15,560 Speaker 2: This is actually transactional. We're not we don't we don't 389 00:22:15,600 --> 00:22:18,760 Speaker 2: take ownership of the loads. We're not you know, we're 390 00:22:18,800 --> 00:22:22,560 Speaker 2: not a we're not a brokerage in that respect. We 391 00:22:22,600 --> 00:22:25,439 Speaker 2: were simply creating a marketplace for the carriers and the 392 00:22:25,440 --> 00:22:28,439 Speaker 2: shippers to directly do business with one another. 393 00:22:29,200 --> 00:22:32,840 Speaker 1: Gotcha. You know you mentioned that you had an analyst 394 00:22:32,960 --> 00:22:36,399 Speaker 1: day back in December. Did you guys provide some like 395 00:22:36,480 --> 00:22:40,120 Speaker 1: long term financial targets that as a company you're you're 396 00:22:40,320 --> 00:22:41,720 Speaker 1: looking to work towards. 397 00:22:42,400 --> 00:22:45,120 Speaker 2: Yes, So what we talked about with our investor base 398 00:22:46,200 --> 00:22:48,600 Speaker 2: was the continued growth opportunities. So if you take it 399 00:22:48,640 --> 00:22:51,640 Speaker 2: at a macro perspective, those same markets that are large, global, 400 00:22:51,680 --> 00:22:57,119 Speaker 2: underserved and underpenetrated. Our industries we're serving are fundamentally digitizing, 401 00:22:57,160 --> 00:22:59,520 Speaker 2: so there's a positive catalyst for growth. We believe that 402 00:22:59,520 --> 00:23:02,240 Speaker 2: that can train in the mid to high single digit 403 00:23:02,359 --> 00:23:05,800 Speaker 2: total revenue growth. We would expect to have double digit 404 00:23:06,800 --> 00:23:10,000 Speaker 2: annualized recurring revenue or that subscription growth. So we've transitioned 405 00:23:10,080 --> 00:23:14,640 Speaker 2: more of our selling models from perpetual to subscription over 406 00:23:14,680 --> 00:23:19,000 Speaker 2: the last few years, and we see that differentially growing faster. 407 00:23:19,160 --> 00:23:22,479 Speaker 2: More of our capital allocation is going to that. We 408 00:23:22,520 --> 00:23:25,439 Speaker 2: live in a cloud forward world, and so it's our 409 00:23:25,480 --> 00:23:28,560 Speaker 2: intent to continue to develop and sell technologies that are 410 00:23:28,640 --> 00:23:33,240 Speaker 2: very cloud forward and very unconnected. And then Okay, you 411 00:23:33,320 --> 00:23:35,280 Speaker 2: have growth, and then what do you have to do? 412 00:23:35,280 --> 00:23:38,040 Speaker 2: You have to translate growth into profitable growth, and so 413 00:23:38,200 --> 00:23:41,160 Speaker 2: we had to go forward view on the profit growth 414 00:23:41,160 --> 00:23:45,280 Speaker 2: that we thought we could continue to drive in the company. 415 00:23:45,320 --> 00:23:47,520 Speaker 2: When we looked at our business and talked to our 416 00:23:47,520 --> 00:23:54,760 Speaker 2: shareholders a few weeks ago, you know, we were guiding 417 00:23:54,800 --> 00:23:58,480 Speaker 2: our twenty twenty four year to end around three point 418 00:23:58,520 --> 00:24:01,680 Speaker 2: two billion in revenue over two billion and annualize recurring 419 00:24:01,680 --> 00:24:03,080 Speaker 2: revenue and about twenty eight percent. 420 00:24:03,119 --> 00:24:07,320 Speaker 1: You bit, got you and what's the biggest headwind at 421 00:24:07,320 --> 00:24:09,560 Speaker 1: a tremble for margin expansion? 422 00:24:10,440 --> 00:24:13,640 Speaker 2: Well, I would probably say if we have a revenue headwind, 423 00:24:13,720 --> 00:24:16,359 Speaker 2: would be the would be the margin expansion. I have 424 00:24:16,400 --> 00:24:19,800 Speaker 2: a feeling you might want to talk about tariffs, but 425 00:24:19,920 --> 00:24:24,200 Speaker 2: you know, the macros themselves that's the biggest barrier, because 426 00:24:24,200 --> 00:24:26,919 Speaker 2: if you have your expenses going up every year, but 427 00:24:26,960 --> 00:24:29,480 Speaker 2: your revenue is not growing faster than any expenses, that 428 00:24:29,520 --> 00:24:34,080 Speaker 2: creates a headwind to margin expansion. Otherwise, I would say 429 00:24:34,920 --> 00:24:37,880 Speaker 2: it's getting the balance right of the investment back into 430 00:24:37,880 --> 00:24:43,680 Speaker 2: the business, the investment into new capabilities such as artificial intelligence. 431 00:24:43,880 --> 00:24:47,479 Speaker 2: But we also believe AI can create efficiencies inside our 432 00:24:47,520 --> 00:24:51,280 Speaker 2: own walls in addition to creating efficiencies for our customers. 433 00:24:51,400 --> 00:24:53,000 Speaker 2: So we're very mindful. That's why I go out of 434 00:24:53,000 --> 00:24:54,440 Speaker 2: my way to say we've put two and a half 435 00:24:54,480 --> 00:24:57,879 Speaker 2: billion dollars back into product development in the last five years, 436 00:24:58,119 --> 00:25:00,840 Speaker 2: and we will continue to invest back into our business. 437 00:25:01,520 --> 00:25:03,840 Speaker 1: And I guess that business model that you operate really 438 00:25:03,880 --> 00:25:09,480 Speaker 1: provides pretty robust incremental margins because if you sell another subscription, 439 00:25:09,520 --> 00:25:13,520 Speaker 1: another software, the variable cost isn't isn't that high. 440 00:25:13,920 --> 00:25:16,359 Speaker 2: Well, in one of the fundamental transformations we've had in 441 00:25:16,400 --> 00:25:20,320 Speaker 2: the business, even just in the last five years, is 442 00:25:21,440 --> 00:25:23,919 Speaker 2: you know, is almost one thousand basis points improvement in 443 00:25:23,920 --> 00:25:27,480 Speaker 2: the gross margins of the company. And so what we 444 00:25:27,760 --> 00:25:30,480 Speaker 2: guided forward was in the range of thirty to forty 445 00:25:30,480 --> 00:25:34,600 Speaker 2: percent incremental margins assuming we can achieve that level of growth, 446 00:25:34,760 --> 00:25:37,880 Speaker 2: and that provides us the ability to have a healthier 447 00:25:38,000 --> 00:25:40,440 Speaker 2: level of continue to have a healthy level of investment 448 00:25:40,480 --> 00:25:41,440 Speaker 2: back into the company. 449 00:25:42,119 --> 00:25:44,119 Speaker 1: Do you guys probably talk about capex how much you 450 00:25:44,160 --> 00:25:44,760 Speaker 1: spend a year. 451 00:25:45,320 --> 00:25:48,320 Speaker 2: Yeah, so Turmble is very capital light as a technology company. 452 00:25:48,680 --> 00:25:52,600 Speaker 2: We're putting really less than one or two percent back 453 00:25:52,640 --> 00:25:57,160 Speaker 2: into capex. We run negative working capital as well, so 454 00:25:57,800 --> 00:26:02,119 Speaker 2: very capital efficient business us. That generates cash flow that 455 00:26:02,320 --> 00:26:05,080 Speaker 2: is by the way, that cash flow, and we've either 456 00:26:05,119 --> 00:26:08,720 Speaker 2: put to work for acquisitions over the years to create 457 00:26:08,760 --> 00:26:12,159 Speaker 2: more breadth of capabilities, or to invest back into the 458 00:26:12,160 --> 00:26:13,640 Speaker 2: business and back. 459 00:26:13,920 --> 00:26:16,080 Speaker 1: I guess you know a question that you know probably 460 00:26:16,119 --> 00:26:18,879 Speaker 1: close to your heart from your CFO days. What are 461 00:26:19,280 --> 00:26:24,680 Speaker 1: your priorities with capital? You know, is it buybacks, dividends? 462 00:26:26,119 --> 00:26:29,399 Speaker 2: The number one priority for sure is to continue to 463 00:26:29,480 --> 00:26:35,520 Speaker 2: invest back into our business. Otherwise, you know, if you're 464 00:26:35,560 --> 00:26:38,560 Speaker 2: a if you're a leader of a company, maybe particularly 465 00:26:39,320 --> 00:26:41,280 Speaker 2: I would say a public company, but actually I'd say 466 00:26:41,320 --> 00:26:44,720 Speaker 2: really any company, you're paid to be a capital allocator, 467 00:26:44,840 --> 00:26:48,240 Speaker 2: and that means putting the capital being time people money, 468 00:26:48,240 --> 00:26:51,480 Speaker 2: put it to its highest and best order of use. 469 00:26:52,240 --> 00:26:54,760 Speaker 2: So we make that trade off of what's the return 470 00:26:54,800 --> 00:26:58,119 Speaker 2: on an investment for buy back versus back into the 471 00:26:58,160 --> 00:26:59,879 Speaker 2: business versus acquisition. 472 00:27:01,320 --> 00:27:06,760 Speaker 1: And you talked about you know, subscriptions and you know, 473 00:27:06,840 --> 00:27:11,720 Speaker 1: moving more towards that model on the transplational logistics side, 474 00:27:11,800 --> 00:27:14,320 Speaker 1: or if you want to talk about company wide, can 475 00:27:14,359 --> 00:27:17,040 Speaker 1: you talk about like, you know, the different like what 476 00:27:17,160 --> 00:27:22,320 Speaker 1: percentage is reoccurring revenue versus transactional revenue. Is there is 477 00:27:22,359 --> 00:27:24,119 Speaker 1: there a goal where you kind of like this is 478 00:27:24,160 --> 00:27:26,000 Speaker 1: like this is the right breakout where we want to 479 00:27:26,040 --> 00:27:26,760 Speaker 1: work towards. 480 00:27:27,240 --> 00:27:29,639 Speaker 2: Yeah, I mean we have over almost sixty five I 481 00:27:29,640 --> 00:27:31,959 Speaker 2: think it's about sixty two percent of our revenue overall 482 00:27:32,000 --> 00:27:38,480 Speaker 2: revenue is recurring revenue today and it's been growing more 483 00:27:38,520 --> 00:27:42,240 Speaker 2: than two times the rate of our hardware businesses. And 484 00:27:42,280 --> 00:27:45,640 Speaker 2: so just by the law of the math, over the years, 485 00:27:45,680 --> 00:27:48,919 Speaker 2: that percentage to continue to grow and I would expect 486 00:27:49,000 --> 00:27:51,479 Speaker 2: you know to see that you know, over seventy percent 487 00:27:52,600 --> 00:27:56,360 Speaker 2: recurring revenue as a percent of total revenue. That gives 488 00:27:56,440 --> 00:27:59,320 Speaker 2: us so much more predictability and visibility into our business. 489 00:27:59,640 --> 00:28:03,480 Speaker 2: That may it gives us much higher levels of confidence 490 00:28:03,680 --> 00:28:07,360 Speaker 2: for that reinvestment that we do back into the business 491 00:28:08,119 --> 00:28:10,400 Speaker 2: every year. But more importantly, I mean that's about us. 492 00:28:10,440 --> 00:28:13,360 Speaker 2: Like from a customer point of view, what we've seen 493 00:28:13,400 --> 00:28:16,040 Speaker 2: when we've moved and transitioned to business models is we've 494 00:28:16,080 --> 00:28:18,959 Speaker 2: expanded the size of the addressable market by moving our 495 00:28:19,000 --> 00:28:22,760 Speaker 2: customers from CAPEX to op x. The ability to access 496 00:28:22,800 --> 00:28:26,920 Speaker 2: the technology becomes more reachable when you transition to that 497 00:28:27,680 --> 00:28:30,359 Speaker 2: business model. And so as we've done this in every 498 00:28:30,400 --> 00:28:33,480 Speaker 2: single business that we have that Tremble, we've seen a 499 00:28:33,480 --> 00:28:36,720 Speaker 2: significant increase in the if I define it as units 500 00:28:36,760 --> 00:28:39,600 Speaker 2: or number of customers or number of users, the adoption 501 00:28:39,680 --> 00:28:42,720 Speaker 2: has gone up significantly by the adoption and by the 502 00:28:42,760 --> 00:28:44,880 Speaker 2: transition of the business model. And that to me is 503 00:28:45,360 --> 00:28:48,520 Speaker 2: why it's so important. You know, that's the input, the 504 00:28:48,520 --> 00:28:50,920 Speaker 2: square the output of what it means to the financials 505 00:28:50,960 --> 00:28:53,600 Speaker 2: of Tremble. That's the scoreboard. That's the output. I'm more 506 00:28:53,640 --> 00:28:56,479 Speaker 2: interested in in the input. So when more people are 507 00:28:56,560 --> 00:28:59,840 Speaker 2: using your technology and they're getting more value out of that, 508 00:29:00,280 --> 00:29:03,320 Speaker 2: and you can retain those customers over time and then 509 00:29:03,400 --> 00:29:07,440 Speaker 2: you can serve them with additional capabilities that you have. 510 00:29:08,160 --> 00:29:10,360 Speaker 2: Then we're both winning because it has to work for 511 00:29:10,560 --> 00:29:12,560 Speaker 2: the customers, it has to work for our employees, and 512 00:29:12,560 --> 00:29:13,840 Speaker 2: it has to work for investors. 513 00:29:14,520 --> 00:29:18,080 Speaker 1: And once you get folks into the ecosystem, do they stay? 514 00:29:18,200 --> 00:29:20,840 Speaker 1: Do you have any like stats on that? I know 515 00:29:20,880 --> 00:29:22,680 Speaker 1: you want to. You want them to get even deeper 516 00:29:22,680 --> 00:29:25,720 Speaker 1: into your ecosystem, so you want to cross sell and upsell. 517 00:29:25,760 --> 00:29:28,360 Speaker 1: But you know, once they're in tremble, are they like 518 00:29:28,400 --> 00:29:29,520 Speaker 1: a customer for life? 519 00:29:30,640 --> 00:29:33,360 Speaker 2: So we measure that by net retention and we sell 520 00:29:33,480 --> 00:29:36,640 Speaker 2: We don't sell shelf ware. We we sell usually really 521 00:29:36,680 --> 00:29:40,600 Speaker 2: systems of record. So the retention that we have in 522 00:29:40,640 --> 00:29:43,920 Speaker 2: our TMS when we sell a TMS that's a system 523 00:29:43,920 --> 00:29:47,200 Speaker 2: of record and retention is high, and a TMS business, 524 00:29:47,200 --> 00:29:50,200 Speaker 2: and and our and our mapping routing navigation business, retention 525 00:29:50,320 --> 00:29:54,680 Speaker 2: is extraordinarily high in that business. And the transportation management 526 00:29:54,680 --> 00:30:00,680 Speaker 2: platform we have through transporting on extraordinarily high custom retention 527 00:30:00,760 --> 00:30:03,800 Speaker 2: because it's so fundamental to the work. And I really 528 00:30:03,840 --> 00:30:05,880 Speaker 2: think about what are the problems we're trying to solve 529 00:30:06,160 --> 00:30:08,560 Speaker 2: for our customers, you know, I think about it in 530 00:30:08,600 --> 00:30:12,680 Speaker 2: a sense of an operating ratio for a trucking company, 531 00:30:12,680 --> 00:30:16,000 Speaker 2: and if they're operating ratios or probably these days somewhere 532 00:30:16,040 --> 00:30:19,760 Speaker 2: between ninety two and ninety eight percent, I could do 533 00:30:19,800 --> 00:30:22,440 Speaker 2: the inverse of that. That means those operating margins are 534 00:30:22,440 --> 00:30:25,440 Speaker 2: between two to eight percent. Think about it from a 535 00:30:25,560 --> 00:30:28,000 Speaker 2: P and L lens of that customer. What are the 536 00:30:28,000 --> 00:30:34,040 Speaker 2: biggest costs they have? Fuel, labor, insurance, maintenance, And then 537 00:30:34,040 --> 00:30:36,760 Speaker 2: we think about the efficiency of our customers or maybe 538 00:30:36,840 --> 00:30:39,000 Speaker 2: the problems they are addressing are around dwell times or 539 00:30:39,080 --> 00:30:42,480 Speaker 2: driver turnover or weather delays or falling rates, or maintenance 540 00:30:42,560 --> 00:30:46,360 Speaker 2: or fuel costs or safety. Our solutions to address each 541 00:30:46,440 --> 00:30:48,360 Speaker 2: one of those and if you do that, then you 542 00:30:48,440 --> 00:30:51,720 Speaker 2: earn your right to retain and grow with that customer 543 00:30:51,720 --> 00:30:52,200 Speaker 2: over time. 544 00:30:53,040 --> 00:30:58,360 Speaker 1: You mentioned that you know TMS is a system of record, 545 00:30:58,760 --> 00:31:00,840 Speaker 1: and so it's once you have them, it's hard to 546 00:31:00,880 --> 00:31:03,320 Speaker 1: lose them. So does that make it really hard for 547 00:31:03,400 --> 00:31:06,120 Speaker 1: you to go after a competitor's customer, Like, how do you, 548 00:31:06,160 --> 00:31:08,680 Speaker 1: I guess, reduce the pain points for them to come 549 00:31:08,720 --> 00:31:10,000 Speaker 1: onto your system? 550 00:31:10,640 --> 00:31:15,080 Speaker 2: But it's selling a higher and better value proposition. It's 551 00:31:15,160 --> 00:31:17,480 Speaker 2: never impossible to leave. And like the center of our 552 00:31:17,480 --> 00:31:20,160 Speaker 2: strategy and we call our strategy connect and scale. I 553 00:31:20,200 --> 00:31:23,400 Speaker 2: talked about that connectivity, but the center of it is 554 00:31:23,440 --> 00:31:25,800 Speaker 2: customer success. It's I think it starts and ends with 555 00:31:26,400 --> 00:31:30,320 Speaker 2: customer success. You have to ensure that your customers are 556 00:31:30,320 --> 00:31:33,480 Speaker 2: getting value out of what they're buying. We have to 557 00:31:33,560 --> 00:31:37,680 Speaker 2: have telemetry and insights to understand how our customers are 558 00:31:37,800 --> 00:31:40,320 Speaker 2: using our technology and how we can help them unlock 559 00:31:40,840 --> 00:31:44,200 Speaker 2: more value out of what they are buying. And in 560 00:31:44,280 --> 00:31:47,360 Speaker 2: terms of delivering a higher order value and a let's 561 00:31:47,360 --> 00:31:51,320 Speaker 2: say a value proposition that would promote a customer and 562 00:31:51,400 --> 00:31:53,720 Speaker 2: then sent the motivated customer to move from one system 563 00:31:53,840 --> 00:31:56,280 Speaker 2: to the other. Think about what we can I think 564 00:31:56,320 --> 00:31:59,960 Speaker 2: about what we can uniquely do at Trimble. That breadth 565 00:32:00,080 --> 00:32:02,080 Speaker 2: and depth of what we're doing, Like when you're when 566 00:32:02,120 --> 00:32:05,440 Speaker 2: you're going to you know, when you're making a buying 567 00:32:05,440 --> 00:32:08,320 Speaker 2: decision as a customer, a very big and important buying decision. 568 00:32:08,600 --> 00:32:10,400 Speaker 2: You're not just buying for the present, You're buying for 569 00:32:10,440 --> 00:32:13,000 Speaker 2: the future in the direction of where that company is 570 00:32:13,080 --> 00:32:16,920 Speaker 2: going right. I think about the data centricity I talked 571 00:32:16,920 --> 00:32:18,720 Speaker 2: about in the breadth and depth of what we're doing, 572 00:32:19,320 --> 00:32:22,160 Speaker 2: think about the incumbent position we have now we have 573 00:32:22,280 --> 00:32:25,040 Speaker 2: to execute upon this. But think about the incumbent position, 574 00:32:25,120 --> 00:32:28,080 Speaker 2: the unique corpus of data that we're seeing. I think 575 00:32:28,120 --> 00:32:31,000 Speaker 2: we can show customers a very bright future if you 576 00:32:31,120 --> 00:32:35,160 Speaker 2: work within our network, when we have the ability to 577 00:32:35,200 --> 00:32:40,800 Speaker 2: connect maintenance, to connect drivers, to connect workflow. Because of 578 00:32:40,840 --> 00:32:43,640 Speaker 2: the breadth and depth of what we offer, that's a 579 00:32:43,640 --> 00:32:46,360 Speaker 2: good value proposition when you move customers who are on 580 00:32:46,480 --> 00:32:49,120 Speaker 2: prem into the cloud. You know, we saw this during 581 00:32:49,160 --> 00:32:51,200 Speaker 2: COVID was an accelerant of it because a lot of 582 00:32:51,280 --> 00:32:55,000 Speaker 2: companies of our customers didn't have the in house IT staffs. 583 00:32:55,920 --> 00:32:58,040 Speaker 2: So think about you know when things went down, or 584 00:32:58,040 --> 00:33:01,160 Speaker 2: think about CrowdStrike event last year, or you know other 585 00:33:01,680 --> 00:33:05,320 Speaker 2: or cyber events that happen that's motivating customers to move 586 00:33:05,360 --> 00:33:10,000 Speaker 2: to the cloud. That often shows them a path with us, 587 00:33:10,000 --> 00:33:12,520 Speaker 2: to stay with us, or to move with us. Think 588 00:33:12,520 --> 00:33:15,080 Speaker 2: about cyber alone. You know we have to spend tens 589 00:33:15,120 --> 00:33:17,719 Speaker 2: of millions of dollars a year to keep up with 590 00:33:17,800 --> 00:33:21,080 Speaker 2: the threat actors out there. That's hard for any company 591 00:33:21,440 --> 00:33:23,960 Speaker 2: to do. I believe you've got to be operating at 592 00:33:24,000 --> 00:33:26,840 Speaker 2: scale in order to afford to to do that. 593 00:33:28,240 --> 00:33:30,640 Speaker 1: Is is your revenue in the in the transportation and 594 00:33:30,760 --> 00:33:33,120 Speaker 1: legious sector. Is it. Is it tied to the freight 595 00:33:33,160 --> 00:33:36,240 Speaker 1: cycle or I'm assuming it's somewhat tied. Like I guess, 596 00:33:36,240 --> 00:33:38,440 Speaker 1: the healthier the truck market, the more trucks there are, 597 00:33:38,480 --> 00:33:41,440 Speaker 1: and the more subscriptions you sell. Is that fair? Yeah? 598 00:33:41,480 --> 00:33:43,680 Speaker 2: Absolutely? I mean, you know, let's say if in a 599 00:33:43,680 --> 00:33:45,960 Speaker 2: telematics business that's going to be sold by the number 600 00:33:46,000 --> 00:33:49,760 Speaker 2: of trucks you have the technology. On our transportium business, 601 00:33:49,800 --> 00:33:54,280 Speaker 2: it's a consumption based model. We make sense on the 602 00:33:54,360 --> 00:33:58,200 Speaker 2: dollar per all the transactions that run that run through it. 603 00:33:58,480 --> 00:34:02,160 Speaker 2: So it's the number of transportation loads that move on 604 00:34:02,160 --> 00:34:05,680 Speaker 2: on our system for that part of our transportation business 605 00:34:05,680 --> 00:34:10,759 Speaker 2: determines determines the growth. So no, so you probably take 606 00:34:10,840 --> 00:34:13,360 Speaker 2: fifty sixty percent of our business and I say that 607 00:34:13,400 --> 00:34:16,400 Speaker 2: could fluctuate more with the freight cycle, whereas they'd say 608 00:34:16,440 --> 00:34:18,960 Speaker 2: the ballast would be with the rest of the portfolio. 609 00:34:19,560 --> 00:34:23,680 Speaker 1: Gotcha. You know, we talked to a lot about computers, automation, 610 00:34:24,080 --> 00:34:28,320 Speaker 1: IoT You know, in the trucking industry, people like to 611 00:34:28,320 --> 00:34:32,000 Speaker 1: talk about autonomous trucking. Is that good or bad for Trimble? 612 00:34:32,520 --> 00:34:34,880 Speaker 1: If let's say, if the robots take over. 613 00:34:35,880 --> 00:34:37,440 Speaker 2: I think he could be in that positive. I think 614 00:34:37,480 --> 00:34:39,040 Speaker 2: there'll be some puts and takes by the way when 615 00:34:39,040 --> 00:34:40,960 Speaker 2: I say that, But let me give you some of 616 00:34:40,960 --> 00:34:44,920 Speaker 2: the longitudinal, basic online history of Trimble. You know, Charlie 617 00:34:44,920 --> 00:34:48,520 Speaker 2: Trumble founded the business in nineteen seventy eight. He was 618 00:34:48,560 --> 00:34:50,879 Speaker 2: working at Hewlett Packard at the time and he took 619 00:34:50,920 --> 00:34:53,040 Speaker 2: an idea to mister Packard and they weren't interested in 620 00:34:53,080 --> 00:34:57,760 Speaker 2: it. It was a technology called Loran for marine positioning. Later, 621 00:34:57,920 --> 00:35:00,320 Speaker 2: he took a technology that they were also not inted 622 00:35:00,360 --> 00:35:02,719 Speaker 2: in and then started Tremble. And that technology you might 623 00:35:02,719 --> 00:35:07,040 Speaker 2: have heard of. It's called GPS. So imagine that that's 624 00:35:07,040 --> 00:35:11,920 Speaker 2: the origin story of Tremble. We know precise location. We 625 00:35:11,960 --> 00:35:14,680 Speaker 2: don't think about meters at Tremble. We think about centimeters 626 00:35:15,000 --> 00:35:17,520 Speaker 2: at Tremble. Our ability to create a digital model of 627 00:35:17,560 --> 00:35:20,360 Speaker 2: the physical Earth and our geospatial and surveying business that 628 00:35:20,480 --> 00:35:26,399 Speaker 2: goes back to our roots in GPS. And I tell 629 00:35:26,400 --> 00:35:28,040 Speaker 2: you that because that actually is the origin story of 630 00:35:28,080 --> 00:35:30,680 Speaker 2: how we eventually got into construction, and how we got 631 00:35:30,680 --> 00:35:33,640 Speaker 2: into agriculture, and how we got into transportation by understanding 632 00:35:33,640 --> 00:35:37,440 Speaker 2: what customers were doing with the sensors positioning sensors that 633 00:35:37,480 --> 00:35:41,040 Speaker 2: they were buying from US. We can apply corrections to 634 00:35:41,120 --> 00:35:44,120 Speaker 2: the signals that come from the GPS satellites, the correct 635 00:35:44,120 --> 00:35:47,759 Speaker 2: for errors that are happening in solar storms, for what 636 00:35:47,800 --> 00:35:50,320 Speaker 2: happens through the ono sphere and troposphere, to move meters 637 00:35:50,360 --> 00:35:53,839 Speaker 2: down to centimeters. And we sell that increasingly to automotive 638 00:35:53,920 --> 00:35:57,000 Speaker 2: companies as well as to farmers and surveyors to have 639 00:35:57,120 --> 00:36:02,200 Speaker 2: precision work and companies Today trucking companies and automotive companies 640 00:36:02,360 --> 00:36:05,840 Speaker 2: are buying our sensors to do the aid ass systems, 641 00:36:05,840 --> 00:36:08,279 Speaker 2: the safety systems on the road, and the lay lane 642 00:36:08,280 --> 00:36:12,800 Speaker 2: detection on the road are We sell mobile mapping systems 643 00:36:12,840 --> 00:36:15,480 Speaker 2: to create the high definition maps that are on the roads, 644 00:36:15,480 --> 00:36:17,520 Speaker 2: and guess what, if you're going to have autonomy, you've 645 00:36:17,560 --> 00:36:20,760 Speaker 2: got to have high definition maps to know the condition 646 00:36:21,480 --> 00:36:25,080 Speaker 2: of the road. We sell inertial sensors because guess what, 647 00:36:25,120 --> 00:36:27,359 Speaker 2: when you go through a tunnel you don't have GPS, 648 00:36:27,400 --> 00:36:30,719 Speaker 2: you've lost a lot to the satellite. So there are 649 00:36:31,080 --> 00:36:34,239 Speaker 2: aspects of our business that have had i'd say very 650 00:36:34,280 --> 00:36:40,120 Speaker 2: positive tailwinds in the last years through the adoption of 651 00:36:40,560 --> 00:36:43,200 Speaker 2: and I say automation more than I say autonomy, because 652 00:36:43,200 --> 00:36:46,560 Speaker 2: our institutional view of autonomy is that it's a series 653 00:36:46,600 --> 00:36:50,040 Speaker 2: of progressive automation. You don't just jump to level five 654 00:36:50,160 --> 00:36:53,000 Speaker 2: autonomy and our and our view of the world. You 655 00:36:53,120 --> 00:36:59,040 Speaker 2: stare step by workflows and capabilities and functions on that journey. 656 00:36:59,200 --> 00:37:01,160 Speaker 2: So there's those as specs like that that could be 657 00:37:01,160 --> 00:37:03,719 Speaker 2: a positive for Trimble. But if even if you think 658 00:37:03,719 --> 00:37:06,719 Speaker 2: about let's say it did happen we could snap our 659 00:37:06,719 --> 00:37:10,799 Speaker 2: fingers and magically we had autonomous vehicles. Do you know 660 00:37:10,800 --> 00:37:14,360 Speaker 2: what they need? They need a brain, right and that 661 00:37:14,440 --> 00:37:17,239 Speaker 2: brain's telling them what work do I do? Where do 662 00:37:17,280 --> 00:37:20,200 Speaker 2: I need to be? You still have to optimize networks, 663 00:37:20,440 --> 00:37:23,799 Speaker 2: you still have to optimize routes. You've got to optimize 664 00:37:23,840 --> 00:37:26,719 Speaker 2: Now when do you need to charge? And where are 665 00:37:26,719 --> 00:37:30,359 Speaker 2: you going? That brain, I mean that brain is what 666 00:37:30,400 --> 00:37:35,040 Speaker 2: a TMS is that brain also, well have to we'll 667 00:37:35,040 --> 00:37:38,120 Speaker 2: have to help you sort out your maintenance schedules. You're 668 00:37:38,120 --> 00:37:42,359 Speaker 2: still going to have to have routing and NAVE and 669 00:37:42,400 --> 00:37:45,440 Speaker 2: A and A in a fully autonomous world. So I 670 00:37:45,480 --> 00:37:48,719 Speaker 2: see that that is a positive for us. Now, do 671 00:37:48,800 --> 00:37:53,440 Speaker 2: I believe we're actually anywhere near level five autonomy in 672 00:37:53,480 --> 00:37:56,439 Speaker 2: any sort of big and meaningful way. No, I think 673 00:37:56,440 --> 00:38:00,400 Speaker 2: it's further out then we would typically progre you know 674 00:38:00,440 --> 00:38:03,920 Speaker 2: that most would probably typically want to say some of 675 00:38:03,920 --> 00:38:06,680 Speaker 2: that is regulatory, some of that will be insurance, some 676 00:38:06,719 --> 00:38:09,440 Speaker 2: of that will be you know, will the public accept it. 677 00:38:09,719 --> 00:38:11,279 Speaker 2: But even if you could do all that, I also 678 00:38:11,320 --> 00:38:14,040 Speaker 2: think there's something worth talking about, is are we going 679 00:38:14,120 --> 00:38:18,480 Speaker 2: to rebuild our logistics networks, our warehouses? Because the easy 680 00:38:18,520 --> 00:38:20,640 Speaker 2: one for me to understand, the straightforward one for me 681 00:38:20,680 --> 00:38:22,800 Speaker 2: to understand, is the on ramp to the off ramp 682 00:38:23,040 --> 00:38:25,280 Speaker 2: on an interstate. You can do the picture of getting 683 00:38:25,280 --> 00:38:31,200 Speaker 2: the dedicated lanes in the future. That final mile is 684 00:38:31,200 --> 00:38:34,360 Speaker 2: a radically different problem to solve than on ramp to 685 00:38:34,400 --> 00:38:37,719 Speaker 2: off ramp, and our warehouses and logistics centers built on 686 00:38:37,719 --> 00:38:43,000 Speaker 2: those on ramp and off ramps today. Not really, there's 687 00:38:43,000 --> 00:38:45,360 Speaker 2: a lot of work that has to happen in between. 688 00:38:46,640 --> 00:38:48,839 Speaker 1: Okay, yeah, I think I would kind of agree. It's 689 00:38:48,880 --> 00:38:51,440 Speaker 1: kind of further out than most people would would would 690 00:38:51,440 --> 00:38:55,640 Speaker 1: like to think. So, you know, you joined Tremble in 691 00:38:55,680 --> 00:38:58,120 Speaker 1: two thousand and six. You know, how did you get 692 00:38:58,160 --> 00:39:00,960 Speaker 1: into you know, I guess it's not fair to so 693 00:39:01,040 --> 00:39:04,120 Speaker 1: you got into transportation, you really got into software, and 694 00:39:04,840 --> 00:39:07,800 Speaker 1: so how did you how did your journey take you 695 00:39:07,840 --> 00:39:08,360 Speaker 1: to Tremble. 696 00:39:09,880 --> 00:39:13,040 Speaker 2: Well, I have to say I consider myself lucky and 697 00:39:13,239 --> 00:39:16,080 Speaker 2: privileged to be at Tremble to get to do what 698 00:39:16,160 --> 00:39:19,319 Speaker 2: I get to do. You know, you spend most of 699 00:39:19,360 --> 00:39:21,799 Speaker 2: us spend more of our waking hours every day at 700 00:39:21,800 --> 00:39:24,600 Speaker 2: work than we do at home with our friends and 701 00:39:24,640 --> 00:39:28,200 Speaker 2: her family. And purpose to me is important and runs 702 00:39:28,760 --> 00:39:30,680 Speaker 2: runs deep. So that feed the world, move the world, 703 00:39:30,680 --> 00:39:34,279 Speaker 2: build the world. I don't take that lightly at all. 704 00:39:34,440 --> 00:39:36,640 Speaker 2: So I'm a purpose driven person. I want to do 705 00:39:36,719 --> 00:39:39,120 Speaker 2: something that makes a positive impact in the world, and 706 00:39:39,160 --> 00:39:41,680 Speaker 2: we get to do that at Tremble. And so that's 707 00:39:41,719 --> 00:39:44,040 Speaker 2: why I've been here at nineteen years, why I have 708 00:39:44,120 --> 00:39:45,840 Speaker 2: been here in nineteen years, and why this will be 709 00:39:45,880 --> 00:39:50,520 Speaker 2: the last place that I work. I'm just I feel 710 00:39:50,560 --> 00:39:53,560 Speaker 2: so blessed to be able to do what I get 711 00:39:53,640 --> 00:39:56,840 Speaker 2: to do every day. As I say, I happen to 712 00:39:56,840 --> 00:40:00,560 Speaker 2: also live in Colorado. And I think the intersection of 713 00:40:00,560 --> 00:40:02,839 Speaker 2: being able to live in Colorado and get to do 714 00:40:02,840 --> 00:40:06,359 Speaker 2: what I do makes me doubly a lucky person. Are 715 00:40:06,360 --> 00:40:10,160 Speaker 2: you a big skier, a skier, climber, biker, all that 716 00:40:10,200 --> 00:40:11,240 Speaker 2: good Colorado stuff? 717 00:40:11,560 --> 00:40:15,279 Speaker 1: Limber, I could do skiing and biking. I don't. I 718 00:40:15,680 --> 00:40:18,239 Speaker 1: could do climbing, Hey, I don't have the arms for it, 719 00:40:18,280 --> 00:40:21,200 Speaker 1: and be I don't have the fortitude. I'm a chicken 720 00:40:21,239 --> 00:40:25,680 Speaker 1: when it comes to even standing on a ladder. So, 721 00:40:25,680 --> 00:40:27,520 Speaker 1: so you said, you know, so, what is the favorite 722 00:40:27,600 --> 00:40:31,040 Speaker 1: your favorite thing about about your job? You know, being 723 00:40:31,080 --> 00:40:33,920 Speaker 1: a leader at at organization like Tremble. 724 00:40:35,880 --> 00:40:39,399 Speaker 2: It's it's impact, you know, the impact that you can 725 00:40:39,440 --> 00:40:44,239 Speaker 2: have in in this particular role. It has it has 726 00:40:44,280 --> 00:40:47,760 Speaker 2: a voice, it has visibility. You know, I talked about 727 00:40:47,760 --> 00:40:50,359 Speaker 2: the I really do think that in the role you're 728 00:40:50,360 --> 00:40:52,920 Speaker 2: paid to be a capital allocator out you know, that's 729 00:40:52,960 --> 00:40:58,400 Speaker 2: the time people money. I've got a very strong and 730 00:40:58,440 --> 00:41:01,040 Speaker 2: I hope positive view on the strategy and the opportunity 731 00:41:01,080 --> 00:41:03,480 Speaker 2: of this company. And to be able to direct the 732 00:41:03,560 --> 00:41:09,239 Speaker 2: resources accordingly, I think is a real joy. I feel 733 00:41:09,239 --> 00:41:10,880 Speaker 2: like I show up and work at the United Nations 734 00:41:10,920 --> 00:41:14,239 Speaker 2: every day. We've got colleagues that live in over forty 735 00:41:14,280 --> 00:41:16,640 Speaker 2: different countries doing business in over you one hundred and 736 00:41:16,640 --> 00:41:20,080 Speaker 2: thirty five countries. I've literally seen the world through the 737 00:41:20,120 --> 00:41:22,840 Speaker 2: eyes of Tremble. 738 00:41:23,719 --> 00:41:25,880 Speaker 1: All right, and so behind you have a lot of books. 739 00:41:26,640 --> 00:41:28,560 Speaker 1: I always like to ask my guests this you know, 740 00:41:29,400 --> 00:41:31,719 Speaker 1: do you have like a favorite business or leadership book 741 00:41:31,719 --> 00:41:33,160 Speaker 1: that's kind of close to your heart? 742 00:41:34,760 --> 00:41:37,640 Speaker 2: So funny enough, and I guess this would be an 743 00:41:37,640 --> 00:41:39,480 Speaker 2: audio recordings that people won't be able to see it, 744 00:41:39,520 --> 00:41:41,359 Speaker 2: but it is true. There's a lot of books on 745 00:41:41,400 --> 00:41:43,840 Speaker 2: the shelf behind me. Truth is, people send me a 746 00:41:43,840 --> 00:41:47,359 Speaker 2: lot of books and I don't don't typically ever get 747 00:41:47,400 --> 00:41:50,239 Speaker 2: to reading them, and not just because I'm talking to you. 748 00:41:50,280 --> 00:41:54,520 Speaker 2: I tend to be more of a podcast person, So 749 00:41:54,880 --> 00:41:57,640 Speaker 2: I like to build the two for one you can 750 00:41:57,680 --> 00:42:01,719 Speaker 2: get of you know, being in motion and listening to something. 751 00:42:01,800 --> 00:42:03,719 Speaker 2: Not to mention listening at a two x speed, you 752 00:42:03,719 --> 00:42:06,799 Speaker 2: can you can get a lot of content that way. 753 00:42:06,840 --> 00:42:08,920 Speaker 2: So I have to admit I mostly listened to podcasts. 754 00:42:08,960 --> 00:42:12,839 Speaker 2: But having said that, there's two books that would come 755 00:42:12,880 --> 00:42:15,680 Speaker 2: to mind for me to to to share with to 756 00:42:15,719 --> 00:42:19,200 Speaker 2: share with you. The first one is the book The Goal. 757 00:42:19,520 --> 00:42:20,440 Speaker 2: Do you remember that book? 758 00:42:20,600 --> 00:42:23,360 Speaker 1: I love? That was my favorite book I read in 759 00:42:23,400 --> 00:42:23,960 Speaker 1: grad school. 760 00:42:24,120 --> 00:42:28,640 Speaker 2: Okay, So that idea of you know, systems thinking and 761 00:42:28,719 --> 00:42:33,120 Speaker 2: the bottlenecks that systems thinking really is what what we 762 00:42:33,160 --> 00:42:35,120 Speaker 2: think a lot about when we talked about moving from 763 00:42:35,160 --> 00:42:37,880 Speaker 2: the point solutions to the workflow and the ecosystems is 764 00:42:37,880 --> 00:42:41,920 Speaker 2: solving these higher order problems. And so I love that 765 00:42:42,280 --> 00:42:44,799 Speaker 2: from the from the goal of just how accessible they 766 00:42:44,920 --> 00:42:48,520 Speaker 2: made that through the through the story. And so you remember, 767 00:42:49,280 --> 00:42:51,680 Speaker 2: I think it was Herbie, you know, the one you 768 00:42:51,680 --> 00:42:54,040 Speaker 2: had to put in the front of the line. The 769 00:42:54,120 --> 00:42:58,000 Speaker 2: other one. More in leadership is a book called Atomic Habits, 770 00:42:58,760 --> 00:43:01,319 Speaker 2: and to me, the punch line take away it's more 771 00:43:01,320 --> 00:43:05,280 Speaker 2: about you know, I think leadership often begins with self 772 00:43:05,680 --> 00:43:10,640 Speaker 2: understanding one's shortcomings, one superpowers and this. But the notion 773 00:43:10,760 --> 00:43:12,200 Speaker 2: that he talks to the author talks about in the 774 00:43:12,200 --> 00:43:15,399 Speaker 2: book is this idea of being one percent better every day. 775 00:43:16,800 --> 00:43:19,680 Speaker 2: I think that is such a powerful concept. 776 00:43:20,640 --> 00:43:23,440 Speaker 1: You know that I have that book by night's shelf. 777 00:43:23,600 --> 00:43:25,600 Speaker 1: I need to crack it otten. But I'm sorry you 778 00:43:25,600 --> 00:43:26,759 Speaker 1: were saying, well, just. 779 00:43:27,200 --> 00:43:29,080 Speaker 2: Like you know, would you agree that you could be 780 00:43:29,120 --> 00:43:30,719 Speaker 2: one percent better at what you do? 781 00:43:31,400 --> 00:43:33,160 Speaker 1: Oh? I can be fifty better what I do? 782 00:43:33,239 --> 00:43:35,440 Speaker 2: Okay, I know I can be at least one percent 783 00:43:35,680 --> 00:43:37,720 Speaker 2: better every day. But here's the power. It's the power 784 00:43:37,719 --> 00:43:40,840 Speaker 2: of like compounding from one percent better every day is 785 00:43:41,320 --> 00:43:43,920 Speaker 2: oh gosh, I remember the number. It's something like thirty 786 00:43:43,920 --> 00:43:48,239 Speaker 2: five times better by the end of the year. So 787 00:43:48,600 --> 00:43:51,399 Speaker 2: you know, the Einstein has this quote attributed to him, 788 00:43:51,400 --> 00:43:53,080 Speaker 2: whether he said it or not, he probably isn't the 789 00:43:53,080 --> 00:43:55,080 Speaker 2: one who said it. But you know, compound interest is 790 00:43:55,120 --> 00:43:59,080 Speaker 2: the most powerful, uh law of the of the universe. 791 00:43:59,320 --> 00:44:01,600 Speaker 2: That compounding effect of just you know, just being a 792 00:44:01,600 --> 00:44:04,040 Speaker 2: little bit a little bit better to me as a 793 00:44:04,040 --> 00:44:05,640 Speaker 2: powerful lesson from that book. 794 00:44:06,160 --> 00:44:08,120 Speaker 1: Right, And I'm just curious. You mentioned do you like 795 00:44:08,120 --> 00:44:10,400 Speaker 1: to listen to podcasts? And I don't know if you 796 00:44:10,440 --> 00:44:13,120 Speaker 1: want to tell us what's your favorite podcast about transportation? 797 00:44:14,640 --> 00:44:16,719 Speaker 2: Oh? I thought you're gonna ask me a totally different one, 798 00:44:16,719 --> 00:44:20,400 Speaker 2: because you know, the one I like listening to what 799 00:44:20,440 --> 00:44:24,919 Speaker 2: I'm talking about business in general is Acquired. I love 800 00:44:25,040 --> 00:44:31,480 Speaker 2: the history of business and learning through the stories of 801 00:44:31,480 --> 00:44:34,120 Speaker 2: other companies, the you know, the call it the rise, 802 00:44:34,239 --> 00:44:39,520 Speaker 2: the the rise, the fall, and the origin stories to 803 00:44:39,600 --> 00:44:44,480 Speaker 2: me or are super are super powerful. But in the meantime, hey, 804 00:44:44,560 --> 00:44:45,400 Speaker 2: talking transport. 805 00:44:45,640 --> 00:44:48,839 Speaker 1: There we go, that's what I was waiting for. Well, Rob, 806 00:44:48,920 --> 00:44:50,520 Speaker 1: it was. It was great getting to know you and 807 00:44:50,560 --> 00:44:53,640 Speaker 1: getting to know Trimbull. I really appreciate your time here today. 808 00:44:54,280 --> 00:44:58,000 Speaker 2: Well thanks for having me on and good luck to 809 00:44:58,000 --> 00:44:58,879 Speaker 2: you in twenty twenty five. 810 00:44:59,320 --> 00:45:02,000 Speaker 1: Thanks you too, and thanks for tuning in. If you 811 00:45:02,080 --> 00:45:04,719 Speaker 1: liked the episode, please subscribe and leave a review. We 812 00:45:04,800 --> 00:45:07,240 Speaker 1: have lined up a number of great guests for the podcast, 813 00:45:07,320 --> 00:45:12,239 Speaker 1: so please check back to hear conversations with c suit executives, shippers, regulators, 814 00:45:12,280 --> 00:45:15,200 Speaker 1: and decision makers within the freight markets. Also, if you 815 00:45:15,239 --> 00:45:17,360 Speaker 1: have an idea for a future episode, please hit me 816 00:45:17,440 --> 00:45:20,560 Speaker 1: up on the Bloomberg terminal or on Twitter at logistics Lee. 817 00:45:20,600 --> 00:45:22,120 Speaker 1: Thanks a lot, everyone, and take care.