Motorola Solutions, Inc. · NYSE:MSI
Motorola Solutions — Q1 2021 Earnings Presentation
17 slides from Motorola Solutions's earnings presentation, May 6, 2021
Slide 1: Earnings Presentation Q1 2021 Results
EARNINGS PRESENTATION Q1 2021 RESULTS | May 6, 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: Q1 2021 Highlights
HIGHLIGHTS • Sales of $1.8B, up 7% vs. the prior year Q1 2021 ○ Software and Services up 15% on growth in Land Mobile Radio (“LMR”) services, video security, and command center software ○ Products and Systems Integration up 2% on growth in video security and professional and commercial radio (PCR) •
Slide 4: Financial Results
FINANCIAL RESULTS Q1 20 Q1 21 CHANGE REVENUE $1,655 $1,773 7% NON-GAAP $347 $411 18% OPERATING EARNINGS* NON-GAAP 21.0% 23.2% 220 bps OPERATING MARGIN* NON-GAAP $1.49 $1.87 26% EARNINGS PER SHARE* ($M) excluding per share amounts * Non-GAAP, excluding highlighted items, share-based compensation, and
Slide 5: Cash Flow
CASH FLOW (M$) Q1 20 Q1 21 CHANGE FY 20 FY 21E CHANGE OPERATING CASH $308 $370 $62 $1,613 $1,800 $187 FLOW CAPITAL ($48) ($52) ($4) ($217) ($250) ($33) EXPENDITURES FREE CASH FLOW* $260 $318 $58 $1,396 $1,550 $154 * Free Cash Flow is a non-GAAP financial measure and is calculated as Net cash provided
Slide 6: Products & SI Q1 2021
PRODUCTS & SI • Revenue up 2% driven by growth in video security and Q1 2021 professional and commercial radio (PCR) • Non-GAAP Operating margin* up 50 bps driven by higher Revenue ($M) sales and improved operating leverage • Notable wins and achievements: • $300M+ German MOD TETRA frame agreement;
Slide 7: Software & Services Q1 2021
• Revenue up 15%, driven by growth in LMR services, video SOFTWARE & security, and command center software SERVICES Q1 2021 • Non-GAAP operating margin* up 310 bps driven by higher Revenue sales, higher gross margins and improved OPEX leverage ($M) • Notable multi-year wins and achievements: • $40M+
Slide 8: Regional Revenue Q1 2021
REGIONAL ($M) Q1 20 Q1 21 CHANGE REVENUE NORTH AMERICA $1,116 $1,185 6% Q1 2021 INTERNATIONAL $539 $588 9% TOTAL $1,655 $1,773 7% ● North America growth driven by LMR, video security, and command center software ● International growth driven primarily by video security and LMR
Slide 9: Backlog Trend
BACKLOG TREND Software and Services • Y/Y up $548M driven primarily by multi-year services and software contracts in North America ($B) • Q/Q down $269M primarily driven by revenue $11.4 $11.3 recognition for Airwave and ESN $10.4 Products and Systems Integration • Y/Y up $318M driven primarily by L
Slide 10: Outlook
Q2 2021 OUTLOOK * Revenue Growth 19% - 20% • Effective tax rate approx. 23% to 24% (NON-GAAP) • Fully diluted share count approx. 173M Non-GAAP EPS $1.90 - $1.95 PRIOR FULL-YEAR 2021 Revenue Growth 7.25% - 8% Non-GAAP EPS $8.50 - $8.62 UPDATED FULL-YEAR 2021 Revenue Growth 8% - 9% • Effective tax ra
Slide 11: Q&A Participants
Q&A PARTICIPANTS GREG BROWN Chairman and CEO JACK MOLLOY Executive Vice President, Products & Sales JASON WINKLER Executive Vice President and CFO KELLY MARK Executive Vice President, Software & Services TIM YOCUM Vice President, Investor Relations
Slide 12: Use of Non-GAAP Measures
USE OF NON-GAAP MEASURES In addition to the GAAP results provided in this presentation, Motorola Solutions has provided certain non-GAAP measurements, including: “Free Cash Flow,” “Non-GAAP EPS,” “Non-GAAP Operating Earnings,” and “Non-GAAP Operating Margin.” Motorola Solutions has provided these no
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
Slide 16: Supplemental Non-GAAP Measures
SUPPLEMENTAL NON-GAAP MEASURES
Slide 17: Thank You
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