Motorola Solutions, Inc. · NYSE:MSI
Motorola Solutions — Q2 2021 Earnings Presentation
18 slides from Motorola Solutions's earnings presentation, Aug 5, 2021
Slide 1: Earnings Presentation Q2 2021 Results
EARNINGS PRESENTATION Q2 2021 RESULTS | August 5, 2021
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 Q2 2021
HIGHLIGHTS • Sales of $2.0B, up 22% vs. the prior year ○ Products and Systems Integration up 24% on growth in Land Q2 2021 Mobile Radio (“LMR”) and video security ○ Software and Services up 19% on growth in LMR services, video security, and command center software • Ending backlog of $11.2B, up 7% y
Slide 4: Financial Results
FINANCIAL RESULTS Q2 20 Q2 21 CHANGE REVENUE $1,618 $1,971 22% NON-GAAP $359 $482 34% OPERATING EARNINGS* NON-GAAP 22.2% 24.4% 220 bps OPERATING MARGIN* NON-GAAP $1.39 $2.07 49% EARNINGS PER SHARE* ($M) excluding per share amounts * Non-GAAP measures exclude highlighted items, including share-based
Slide 5: Cash Flow
CASH FLOW Q2 20 Q2 21 FY 20 FY 21 (M$) YTD YTD CHANGE ACT EST CHANGE OPERATING CASH $517 $758 $241 $1,613 $1,800 $187 FLOW CAPITAL ($102) ($114) ($12) ($217) ($250) ($33) EXPENDITURES FREE CASH FLOW* $415 $644 $229 $1,396 $1,550 $154 * Free Cash Flow is a non-GAAP financial measure and is calculated
Slide 6: Products & SI
PRODUCTS & SI • Revenue up 24% driven by growth in LMR and video security Q2 2021 • Non-GAAP Operating margin* up 270 bps driven by higher sales and improved operating leverage, including higher Revenue ($M) costs related to incentive compensation • Notable wins and achievements: • $37M P25 expansio
Slide 7: Software & Services
• Revenue up 19%, driven by growth in LMR services, video SOFTWARE & security, and command center software SERVICES Q2 2021 • Non-GAAP operating margin* up 210 bps driven by higher Revenue sales, higher gross margins and improved operating leverage, ($M) including higher costs related to incentive c
Slide 8: Regional Revenue
REGIONAL ($M) Q2 20 Q2 21 CHANGE REVENUE NORTH AMERICA $1,093 $1,312 20% Q2 2021 INTERNATIONAL $525 $659 25% TOTAL $1,618 $1,971 22% ● North America growth driven by LMR, video security, and command center software ● International growth driven by LMR, video security, and command center software
Slide 9: Backlog Trend
BACKLOG TREND Software and Services • Y/Y up $257M driven primarily by multi-year services and software contracts in North America ($B) • Q/Q down $130M primarily driven by revenue $11.3 $11.2 recognition for Airwave and ESN $10.5 Products and Systems Integration • Y/Y up $484M driven primarily by L
Slide 10: Q3 2021 Outlook
Q3 2021 OUTLOOK * Revenue Growth Approx. 10% • Effective tax rate 23% to 24% (NON-GAAP) • Fully diluted share count approx. 174M Non-GAAP EPS $2.09 - $2.14 PRIOR FULL-YEAR 2021 Revenue Growth 8% - 9% Non-GAAP EPS $8.70 - $8.80 UPDATED FULL-YEAR 2021 • Effective tax rate approx. 22% Revenue Growth 9.
Slide 11: Q&A Participants
Q&A PARTICIPANTS GREG BROWN Chairman and CEO JACK MOLLOY Executive Vice President, Worldwide Products, Sales & Services JASON WINKLER Executive Vice President and CFO MAHESH SAPTHARISHI Senior Vice President and CTO, Software Enterprise & Mobile Video TIM YOCUM Vice President, Investor Relations
Slide 12: Use of Non-GAAP Measures
USE OF NON-GAAP MEASURES In addition to the results in accordance with accounting principles generally accepted in the U.S. (“GAAP”) in this presentation, Motorola Solutions, Inc. (“Motorola Solutions” or the “Company”) has provided certain non-GAAP measurements, including: “Free Cash Flow,” “Non-GA
Slide 13: Supplemental Disaggregation of Revenue
SUPPLEMENTAL DISAGGREGATION OF REVENUE
Slide 14: Supplemental Non-GAAP Measures
SUPPLEMENTAL NON-GAAP MEASURES Motorola Solutions, Inc. and Subsidiaries Non-GAAP Trend (In millions, except for per share amounts)
Slide 15: Supplemental Non-GAAP Measures
SUPPLEMENTAL NON-GAAP MEASURES Reconciliation of Net cash provided by operating activities to Free cash flow
Slide 16: Supplemental Non-GAAP Measures
SUPPLEMENTAL NON-GAAP MEASURES
Slide 17: Supplemental Non-GAAP Measures
SUPPLEMENTAL NON-GAAP MEASURES
Slide 18: Thank You
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