Motorola Solutions, Inc. · NYSE:MSI
Motorola Solutions — Q1 2024 Earnings Presentation
21 slides from Motorola Solutions's earnings presentation, May 2, 2024
Slide 1: Earnings Presentation Q1 2024 Results
Earnings Presentation Q1 2024 Results | May 2, 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: Q1 2024 Highlights
Sales of $2.4B, up 10% Y/Y Highlights ● ● Products and Systems Integration up 14% Q1 2024 ● Software and Services up 4%; up 12%1 excluding U.K. Home Office sales ● Growth in all technologies ■ Land Mobile Radio Communications (“LMR”) up 10% ■ Video Security and Access Control (“Video”) up 11% ■ Comman
Slide 4: Financial Results
Financial Results Q1 23 Q1 24 Change Revenue $2,171 $2,389 10% Non-GAAP $532 $638 20% Operating Earnings* Non-GAAP 24.5% 26.7% 220 bps Operating Margin* Non-GAAP $2.22 $2.81 27% Earnings Per Share* ($M) excluding per share amounts * Non-GAAP measures exclude highlighted items, including share-based
Slide 5: Cash Flow
Cash Flow (M$) Q1 23 Q1 24 Change FY 23 FY 24E Change Operating Cash Flow ($8) $382 $390 $2,044 $2,200 $156 Capital Expenditures ($54) ($46) $8 ($253) ($275) ($22) Free Cash Flow* ($62) $336 $398 $1,791 $1,925 $134 * Free Cash Flow is a non-GAAP financial measure and is calculated as Net cash provide
Slide 6: Products & SI
Products & SI • Revenue up 14%, driven by growth in LMR and Video Q1 2024 • Non-GAAP operating margin* up 590 bps driven by Revenue ($M) higher sales, favorable mix and improved operating leverage • Notable wins and achievements: • $22M P25 device order for large U.S. customer • $16M LMR order for a
Slide 7: Software & Services
Software & Services • Revenue up 4%, driven by strong demand in all three Q1 2024 technologies, offset by U.K. Home Office revenue Revenue reduction ($M) • Non-GAAP operating margin* down 310 bps driven by the Airwave charge control, partially offset by improved operating leverage • Notable wins and a
Slide 8: Regional Revenue
Regional Revenue Q1 2024 (M$) Q1 23 Q1 24 Change ● North America growth driven by LMR, Video and Command North America $1,492 $1,693 13% Center ● International growth driven by $679 $696 3% Video and LMR, offset by U.K. International Home Office revenue reduction Total $2,171 $2,389 10%
Slide 9: Backlog Trend
Backlog Trend Software & Services Q1 2024 • Y/Y up $404M driven by strong demand in LMR, Video, and Command Center ($B) • Q/Q up $492M primarily driven by notice received from the U.K. Home Office extending the Airwave agreement three $14.1 $14.3 $14.4 years to YE 2029 • Unfavorable FX $7M Y/Y and $79
Slide 10: Outlook
Outlook (Non-GAAP)* Q2 2024 Q2 Details ● Effective tax rate of approx. 24% Revenue Growth 7% - 8% ● Fully diluted share count of approx. 170M Non-GAAP EPS $2.97 - $3.02 shares Prior Full-Year 2024 Revenue Growth Approx. 6% Non-GAAP EPS $12.62 - $12.72 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 and twelve months ended April 1, 2023 and March 30, 2024 to provide a more comprehensive view o
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: Reconciliations of Operating Earnings to Non-GAAP Operating Earnings
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 16 for details of highlighted items
Slide 19: Reconciliation of Net Earnings to EBITDA and Adjusted EBITDA (continued)
Supplemental Non-GAAP Reconciliation Of GAAP Net Earnings To EBITDA and Adjusted EBITDA Measures *** Refer to slide 16 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.