Motorola Solutions, Inc. · NYSE:MSI
Motorola Solutions — Q4 2024 Earnings Presentation
25 slides from Motorola Solutions's earnings presentation, Feb 13, 2025
Slide 1: Earnings Presentation Q4 and Full-Year 2024 Results
Earnings Presentation Q4 and Full-Year 2024 Results | February 13, 2025
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: Highlights Q4 2024
Highlights • Sales of $3.0B, up 6% Y/Y ● Products and Systems Integration up 3% Q4 2024 ● Software and Services up 11% ● Growth in all technologies ■ Land Mobile Radio Communications (“LMR”) up 3% ■ Video Security and Access Control (“Video”) up 14% ■ Command Center up 13% • GAAP EPS of $3.56, up 3%
Slide 4: Highlights FY 2024
• Sales of $10.8B, up 8% Y/Y Highlights ● Products and Systems Integration up 10% 1 ● Software and Services up 5%; up 13% excluding U.K. Home Office sales FY 2024 ● Growth in all technologies ■ LMR up 8% ■ Video up 11% ■ Command Center up 10% • GAAP EPS of $9.23, down 7% Y/Y; Non-GAAP EPS2 of $13.84
Slide 5: Financial Results
Financial Results Q4 23 Q4 24 Change 2023 2024 Change Revenue $2,848 $3,010 6% $9,978 $10,817 8% Non-GAAP $870 $916 5% $2,784 $3,142 13% Operating Earnings* Non-GAAP 30.5% 30.4% (10) bps 27.9% 29.0% 110 bps Operating Margin* Non-GAAP $3.90 $4.04 4% $11.95 $13.84 16% Earnings Per Share* ($M) excludin
Slide 6: Cash Flow
Cash Flow ($M) Q4 23 Q4 24 Change 2023 2024 Change Operating Cash Flow $1,245 $1,070 ($175) $2,044 $2,391 $347 Capital Expenditures ($81) ($87) ($6) ($253) ($257) ($4) Free Cash Flow* $1,164 $983 ($181) $1,791 $2,134 $343 * Free Cash Flow is a non-GAAP financial measure and is calculated as Net cash
Slide 7: Products & SI Q4 2024
Products & SI • Revenue up 3%, driven by growth in LMR and Video Q4 2024 • Non-GAAP operating margin* up 50 bps driven by higher Revenue sales, favorable mix and lower direct material costs ($M) • Notable wins and achievements: • $53M P25 device order for a U.S. state and local customer $1,890 $1,94
Slide 8: Software & Services Q4 2024
Software & Services • Revenue up 11% driven by growth in all three technologies Q4 2024 • Non-GAAP operating margin* down 130 bps driven by Revenue acquisitions ($M) • Notable wins and achievements: • $329M ten-year services renewal for Melbourne, Australia's $958 $1,061 LMR network • $160M five-yea
Slide 9: Regional Revenue Q4 2024
Regional Revenue Q4 2024 ($M) Q4 23 Q4 24 Change • North America growth driven by LMR, Video and Command North America $2,016 $2,203 9% Center • International decline driven by LMR, offset by growth in Video International $832 $807 (3)% and Command Center Total $2,848 $3,010 6%
Slide 10: Regional Revenue FY 2024
Regional Revenue FY 2024 ($M) 2023 2024 Change • North America growth driven by LMR, Video and Command North America $6,932 $7,820 13% Center • International decline driven by the U.K. Home Office revenue International $3,046 $2,997 (2)% reduction, offset by growth in LMR, Video and Command Total $9
Slide 11: Backlog Trend
Backlog Trend Q4 2024 Software & Services • Y/Y up $1.3B driven by strong demand in all three ($B) technologies • Q/Q up $648M primarily driven by strong demand in all three $14.3 $14.1 $14.7 technologies • Unfavorable FX impact of $195M Y/Y and $281M Q/Q $9.3 $9.9 $10.6 Products & Systems Integrati
Slide 12: Outlook
Outlook (Non-GAAP)* Q1 2025 Q1 Details • Effective tax rate of approximately 21.0% Revenue Growth 5.0% - 5.5% • Fully diluted share count approx. 171M shares Non-GAAP EPS $2.98 - $3.03 • Approx. $25M FX headwind Full-Year 2025 Full-Year Details • Effective tax rate of approximately 23.0% Revenue Gro
Slide 13: 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 14: 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-GAA
Slide 15: Supplemental Disaggregation of Revenue
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 December 31, 2023 and 2024 to provide a more comprehensive view of the Company’s technologies w
Slide 16: Supplemental Non-GAAP Measures
Motorola Solutions, Inc. and Subsidiaries Supplemental Net sales Non-GAAP Trends (in millions, except for per share amounts) Q1'22 $1,892 Q2'22 $2,140 Q3'22 $2,373 Q4'22 $2,706 Q1'23 $2,171 Q2'23 $2,403 Q3'23 $2,556 Q4'23 $2,848 Q1'24 $2,389 Q2'24 $2,628 Q3'24 $2,790 Q4'24 $3,010 Non-GAAP GAAP gross
Slide 17: Reconciliation of EPS to Non-GAAP EPS Q4
Supplemental Motorola Solutions, Inc. and Subsidiaries Reconciliation of EPS to Non-GAAP EPS Non-GAAP (per diluted common share) Q4 2023 Q4 2024 Measures GAAP EPS $ 3.47 $ 3.56 Highlighted Items: Share-based compensation expenses $ 0.30 $ 0.37 Intangible assets amortization expense 0.24 0.23 Hytera-
Slide 18: Reconciliation of EPS to Non-GAAP EPS FY
Supplemental Motorola Solutions, Inc. and Subsidiaries Reconciliation of EPS to Non-GAAP EPS Non-GAAP (per diluted common share) FY23 FY24 Measures GAAP EPS $ 9.93 $ 9.23 Highlighted Items: Loss from the extinguishment of Silver Lake Convertible Debt $ — $ 3.42 Share-based compensation expenses 1.23
Slide 19: Operating Earnings to Non-GAAP Operating Earnings, Three Months
Supplemental Motorola Solutions, Inc. and Subsidiaries Reconciliations of Operating Earnings to Non-GAAP Operating Earnings and Operating Margin to Non-GAAP Operating Margin Non-GAAP (in millions) Three Months Ended Measures Products and Systems December 31, 2024 Software Products and Systems Decemb
Slide 20: Operating Earnings to Non-GAAP Operating Earnings, Years
Supplemental Motorola Solutions, Inc. and Subsidiaries Reconciliations of Operating Earnings to Non-GAAP Operating Earnings and Operating Margin to Non-GAAP Operating Margin Non-GAAP (in millions) Years Ended Measures Products and Systems Integration December 31, 2024 Software and Services Total Pro
Slide 21: Net Cash from Operations to Free Cash Flow
Supplemental Non-GAAP Motorola Solutions, Inc. and Subsidiaries Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow Measures (in millions) Three Months Ended Years Ended December 31, December 31, December 31, December 31, 2024 2023 2024 2023 Net cash provided by operating a
Slide 22: GAAP Net Earnings to EBITDA and Adjusted EBITDA
Supplemental Reconciliation Of GAAP Net Earnings To EBITDA and Adjusted EBITDA Non-GAAP ($ in millions) Q1 2024 Q2 2024 Q3 2024 Q4 2024 TTM GAAP Net earnings (loss) attributable to Motorola Solutions, Inc. $ (39) $ 443 $ 562 $ 611 $ 1,577 Interest Expense, Net 44 69 58 56 227 Measures Income Tax Exp
Slide 23: Net Earnings to EBITDA and Adjusted EBITDA, FY2015-FY2024
Supplemental Non-GAAP Reconciliation Of GAAP Net Earnings To EBITDA and Adjusted EBITDA Measures ($ in millions) FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 GAAP Net Earnings (Loss) from Continuing Operations $ 640 $ 560 $ (155) $ 966 $ 868 $ 949 $1,245 $1,363 $1,
Slide 24: Net Sales Adjusted for the U.K. Home Office
Supplemental Motorola Solutions, Inc. and Subsidiaries Reconciliation of Net Sales to Net Sales Adjusted for the U.K. Home Office Non-GAAP (in millions) Measures Three Months Ended Years Ended December 31, December 31, % Change December 31, December 31, % Change 2024 2023 2024 2023 Software and Serv
Slide 25: 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.