Motorola Solutions, Inc. · NYSE:MSI
Motorola Solutions — Q3 2024 Earnings Presentation
21 slides from Motorola Solutions's earnings presentation, Nov 7, 2024
Slide 1: Earnings Presentation Q3 2024 Results
Earnings Presentation Q3 2024 Results | November 7, 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: Q3 2024 Highlights
• Sales of $2.8B, up 9% Y/Y Highlights ● Products and Systems Integration up 11% 1 ● Software and Services up 7%; up 13% excluding U.K. Home Office sales Q3 2024 ● Growth in all technologies ■ Land Mobile Radio Communications (“LMR”) up 9% ■ Video Security and Access Control (“Video”) up 10% ■ Comma
Slide 4: Financial Results
Financial Results Q3 23 Q3 24 Change Revenue $2,556 $2,790 9% Non-GAAP $741 $830 12% Operating Earnings* Non-GAAP 29.0% 29.7% 70 bps Operating Margin* Non-GAAP $3.19 $3.74 17% Earnings Per Share* ($M) excluding per share amounts * Non-GAAP measures exclude highlighted items, including share-based co
Slide 5: Cash Flow
Cash Flow ($M) Q3 23 Q3 24 Change FY 23 FY 24E Change Operating Cash Flow $714 $759 $45 $2,044 $2,300* $256 Capital Expenditures ($65) ($57) $8 ($253) ($275) ($22) Free Cash Flow** $649 $702 $53 $1,791 $2,025 $234 *FY 24E expected Operating Cash Flow is an increase of $50 million from the prior expe
Slide 6: Products & SI
Products & SI • Revenue up 11%, driven by growth in LMR Q3 2024 • Non-GAAP operating margin* up 320 bps driven by Revenue higher sales, favorable mix and lower direct material costs ($M) • Notable wins and achievements: $1,784 • $88M P25 system and device order for a customer in $1,612 North Africa
Slide 7: Software & Services
Software & Services • Revenue up 7%; up 13% excluding U.K. Home Office sales 1 Q3 2024 driven by strong demand in all three technologies • Non-GAAP operating margin2 down 340 bps driven by the Revenue ($M) Airwave Charge Control • Notable wins and achievements: • $191M five-year LMR services award f
Slide 8: Regional Revenue
Regional Revenue Q3 2024 ($M) Q3 23 Q3 24 Change • North America growth driven by LMR, Video and Command North America $1,783 $2,007 13% Center • International growth driven by Video, Command Center and International $773 $783 1% LMR, inclusive of the U.K. Home Office revenue reduction Total $2,556
Slide 9: Backlog Trend
Backlog Trend Software & Services Q3 2024 • Y/Y up $534M driven by strong demand in all three technologies, partially offset by revenue recognition for the U.K. Home Office ($B) $14.3 $14.0 $14.1 • Q/Q up $286M primarily driven by strong growth in multi-year software and services contracts in North
Slide 10: Outlook
Outlook (Non-GAAP)* Prior Full-Year 2024 Revenue Growth Approx. 8% Non-GAAP EPS $13.22 - $13.30 Full-Year Details • Effective tax rate of approximately 22.5% • Fully diluted share count approx. 171M shares Updated Full-Year 2024 Revenue Growth 8.25% Non-GAAP EPS $13.63 - $13.68 *FY outlook assumes c
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-GAA
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 Disaggregation three months ended September 30, 2023 and September 28, 2024 to provide a more comprehensive view o
Slide 14: 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 Non-GAAP GAAP gross m
Slide 15: Reconciliation of EPS to Non-GAAP EPS
Supplemental Motorola Solutions, Inc. and Subsidiaries Reconciliation of EPS to Non-GAAP EPS Non-GAAP (per diluted common share) Q3 2023 Q3 2024 Measures GAAP EPS Highlighted Items: Share-based compensation expenses $ $ 2.70 0.30 $ $ 3.29 0.35 Intangible assets amortization expense 0.22 0.22 Reorgan
Slide 16: Reconciliation of Operating Earnings to Non-GAAP Operating Earnings
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 Systems September 28, 2024 Products and Software and September 30, 2023 Pro
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 Measures (in millions) Three Months Ended Nine Months Ended September 28, September 30, September 28, September 30, 2024 2023 2024 2023 Net cash provided by o
Slide 18: Reconciliation to EBITDA and Adjusted EBITDA
Supplemental Reconciliation Of GAAP Net Earnings To EBITDA and Adjusted EBITDA Non-GAAP ($ in millions) Q4 2023 Q1 2024 Q2 2024 Q3 2024 TTM GAAP Net earnings attributable to Motorola Solutions, Inc. $ 595 $ (39) $ 443 $ 562 $ 1,561 Interest Expense, Net 52 44 69 58 223 Measures Income Tax Expense De
Slide 19: Reconciliation to EBITDA and Adjusted EBITDA FY2015-FY2023
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 GAAP Net Earnings (Loss) from Continuing Operations $ 640 $ 560 $ (155) $ 966 $ 868 $ 949 $ 1,245 $ 1,363 $ 1,709 I
Slide 20: 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 Nine Months Ended September 28, September 30, % Change September 28, September 30, % Change 2024 2023 2024 2023 Softwar
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.