Motorola Solutions, Inc. · NYSE:MSI
Motorola Solutions — Q2 2024 Earnings Presentation
21 slides from Motorola Solutions's earnings presentation, Aug 1, 2024
Slide 1: Earnings Presentation Q2 2024 Results
Earnings Presentation Q2 2024 Results | August 1, 2024
Slide 2: Safe Harbor
Safe Harbor A number of forward-looking statements will be made during this presentation. Forward-looking statements are any statements that are not historical facts. These forward-looking statements are based on the current expectations of Motorola Solutions, and we can give no assurance that any f
Slide 3: Q2 2024 Highlights
Sales of $2.6B, up 9% Y/Y Highlights ● ● Products and Systems Integration up 15% Q2 2024 ● Software and Services flat; up 11%1 excluding U.K. Home Office sales ● Growth in all technologies ■ Land Mobile Radio Communications (“LMR”) up 9% ■ Video Security and Access Control (“Video”) up 10% ■ Command Ce
Slide 4: Financial Results
Financial Results Q2 23 Q2 24 Change Revenue $2,403 $2,628 9% Non-GAAP $641 $758 18% Operating Earnings* Non-GAAP 26.7% 28.8% 210 bps Operating Margin* Non-GAAP $2.65 $3.24 22% Earnings Per Share* ($M) excluding per share amounts * Non-GAAP measures exclude highlighted items, including share-based c
Slide 5: Cash Flow
Cash Flow ($M) Q2 23 Q2 24 Change FY 23 FY 24E Change Operating Cash Flow $93 $180 $87 $2,044 $2,250* $206 Capital Expenditures ($53) ($68) ($15) ($253) ($275) ($22) Free Cash Flow** $40 $112 $72 $1,791 $1,975 $184 *FY 24E expected Operating Cash Flow is an increase of $50 million from the prior exp
Slide 6: Products & SI
Products & SI • Revenue up 15%, driven by growth in LMR and Video Q2 2024 • Non-GAAP operating margin* up 700 bps driven by Revenue ($M) higher sales, favorable mix and improved operating leverage • Notable wins and achievements: • $32M P25 system and device order for the City of Naperville, IL • $1
Slide 7: Software & Services
Software & Services • Revenue flat; up 11% excluding U.K. Home Office sales 1 Q2 2024 • Non-GAAP operating margin2 down 460 bps driven by Revenue the Airwave charge control, partially offset by improved ($M) operating leverage • Notable wins and achievements: • $19M LMR services order for the Victorian
Slide 8: Regional Revenue
Regional Revenue Q2 2024 (M$) Q2 23 Q2 24 Change ● North America growth driven by LMR, Video and Command North America $1,641 $1,917 17% Center ● International decline driven by $762 $711 (7)% the U.K. Home Office revenue International reduction, offset by growth in Video and Command Center Total $2,4
Slide 9: Backlog Trend
Backlog Trend Software & Services Q2 2024 • Y/Y up $164M driven by strong demand in all three technologies, partially offset by revenue recognition for the U.K. Home Office ($B) • Q/Q down $129M primarily driven by revenue recognition for $14.3 $14.4 $14.0 the U.K. Home Office Products & Systems Integra
Slide 10: Outlook
Outlook (Non-GAAP)* Q3 2024 Q3 Details ● Effective tax rate of approx. 24% Revenue Growth 7% - 8% ● Fully diluted share count of approx. 170M Non-GAAP EPS $3.32 - $3.37 shares Prior Full-Year 2024 Revenue Growth Approx. 7% Non-GAAP EPS $12.98 - $13.08 Full-Year Details Full-Year 2024 ● Effective tax
Slide 11: Q&A Participants
Q&A Participants Greg Brown Chairman and CEO Jack Molloy Executive Vice President and COO Jason Winkler Executive Vice President and CFO Mahesh Saptharishi Executive Vice President and CTO Tim Yocum Vice President, Investor Relations
Slide 12: Use of Non-GAAP Measures
Use of Non-GAAP Measures In addition to the results presented in accordance with accounting principles generally accepted in the U.S. ("GAAP") included in this presentation, Motorola Solutions, Inc. (the “Company”) also has included non-GAAP measurements of results, including free cash flow, non-GAAP
Slide 13: Supplemental Disaggregation of Revenues
Supplemental Motorola Solutions, Inc. Disaggregation of Revenues Below is an updated presentation of the disaggregation of revenues for the Company’s major products and services for the three months ended July 1, 2023 and June 29, 2024 to provide a more comprehensive view of the Company’s technologi
Slide 14: Supplemental Non-GAAP Trends
Motorola Solutions, Inc. and Subsidiaries Supplemental Non-GAAP Trends (in millions, except for per share amounts) Non-GAAP Measures
Slide 15: Reconciliation of EPS to Non-GAAP EPS
Motorola Solutions, Inc. and Subsidiaries Supplemental Reconciliation of EPS to Non-GAAP EPS Non-GAAP Measures
Slide 16: Reconciliation of Operating Earnings and Operating Margin
Motorola Solutions, Inc. and Subsidiaries Supplemental Reconciliations of Operating Earnings to Non-GAAP Operating Earnings and Operating Margin to Non-GAAP Operating Margin Non-GAAP (in millions) Measures
Slide 17: Reconciliation of Operating Cash Flow to Free Cash Flow
Supplemental Non-GAAP Motorola Solutions, Inc. and Subsidiaries Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow (in millions) Measures * Free Cash Flow is a non-GAAP financial measure and is calculated as Net cash provided by operating activities - Capital Expenditures.
Slide 18: Reconciliation of Net Earnings to EBITDA and Adjusted EBITDA
Supplemental Reconciliation Of GAAP Net Earnings To EBITDA and Adjusted EBITDA Non-GAAP Measures Net Debt to Net Debt Calculation Adjusted EBITDA Calculation *** Refer to slide 14 for details of highlighted items
Slide 19: Reconciliation of Net Earnings to EBITDA and Adjusted EBITDA
Supplemental Non-GAAP Reconciliation Of GAAP Net Earnings To EBITDA and Adjusted EBITDA Measures *** Refer to slide 14 for details of highlighted items
Slide 20: Reconciliation of Net Sales to Net Sales Adjusted for U.K. Home Office
Supplemental Motorola Solutions, Inc. and Subsidiaries Reconciliation of Net Sales to Net Sales Adjusted for the U.K. Home Office (in millions) Non-GAAP Measures
Slide 21: Solving for safer communities
Solving for safer communities schools hospitals businesses everywhere. MOTOROLA, MOTO, MOTOROLA SOLUTIONS and the Stylized M Logo are trademarks or registered trademarks of Motorola Trademark Holdings, LLC and are used under license. All other trademarks are the property of their respective owners.