Motorola Solutions, Inc. · NYSE:MSI
Motorola Solutions — Q3 2021 Earnings Presentation
18 slides from Motorola Solutions's earnings presentation, Nov 4, 2021
Slide 1: Earnings Presentation Q3 2021 Results
EARNINGS PRESENTATION Q3 2021 RESULTS | November 4, 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: Q3 2021 Highlights
HIGHLIGHTS • Sales of $2.1B, up 13% vs. the prior year Q3 2021 ○ Products and Systems Integration up 14% on growth in Land Mobile Radio (“LMR”) and video security ○ Software and Services up 11% on growth in LMR services, video security, and command center software • Record Q3 ending backlog of $11.4
Slide 4: Financial Results
FINANCIAL RESULTS Q3 20 Q3 21 CHANGE REVENUE $1,868 $2,107 13% NON-GAAP $463 $555 20% OPERATING EARNINGS* NON-GAAP 24.8% 26.3% 150 bps OPERATING MARGIN* NON-GAAP $1.95 $2.35 21% EARNINGS PER SHARE* ($M) excluding per share amounts * Non-GAAP measures exclude highlighted items, including share-based
Slide 5: Cash Flow
CASH FLOW Q3 20 Q3 21 FY 20 FY 21 (M$) YTD YTD CHANGE ACT EST CHANGE OPERATING CASH $909 $1,134 $225 $1,613 $1,825 $212 FLOW CAPITAL ($151) ($175) ($24) ($217) ($250) ($33) EXPENDITURES FREE CASH FLOW* $758 $959 $201 $1,396 $1,575 $179 * Free Cash Flow is a non-GAAP financial measure and is calculate
Slide 6: Products & SI Q3 2021
PRODUCTS & SI • Revenue up 14% driven by growth in LMR and video security Q3 2021 • Non-GAAP Operating margin* up 170 bps driven by higher Revenue sales, higher gross margins and improved operating leverage ($M) • Notable wins and achievements: • $72M of P25 orders for a U.S. federal customer • $70M
Slide 7: Software & Services Q3 2021
• Revenue up 11%, driven by growth in LMR services, video SOFTWARE & security, and command center software SERVICES • Non-GAAP operating margin* up 140 bps driven by higher Q3 2021 sales, higher gross margins and improved operating leverage Revenue ($M) • Notable multi-year wins and achievements: •
Slide 8: Regional Revenue Q3 2021
REGIONAL ($M) Q3 20 Q3 21 CHANGE REVENUE NORTH AMERICA $1,268 $1,449 14% Q3 2021 INTERNATIONAL $600 $658 10% TOTAL $1,868 $2,107 13% ● 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 Software and Services TREND • Y/Y up $6M; driven by a $479M increase in multi-year services and software contracts, partially offset by revenue recognition on Airwave and ESN ($B) • Q/Q down $112M primarily driven by revenue recognition for Airwave and ESN, partially offset by growth in $11.
Slide 10: Outlook
OUTLOOK * (NON-GAAP) PRIOR FULL-YEAR 2021 Revenue Growth 9.5% - 10% Non-GAAP EPS $8.88 - $8.98 UPDATED FULL-YEAR 2021 • Effective tax rate approx. 21.5% Revenue Growth 10% - 10.25% • Fully diluted share count approx. 174M Non-GAAP EPS $9.00 - $9.04 *FY outlook assumes current FX rates as of November
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 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 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: Free Cash Flow
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 Three Months Ended September 26, 2020
Slide 18: Thank You
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