Motorola Solutions, Inc. · NYSE:MSI
Motorola Solutions — Q2 2022 Earnings Presentation
20 slides from Motorola Solutions's earnings presentation, Aug 4, 2022
Slide 1: Earnings Presentation Q2 2022 Results
EARNINGS PRESENTATION Q2 2022 RESULTS | August 4, 2022
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: Q2 2022 Highlights
HIGHLIGHTS • Sales of $2.1B, up 9% vs. the prior year Q2 2022 ○ Products and Systems Integration up 7% ○ Software and Services up 11% Growth in all technologies ○ ■ Land Mobile Radio (“LMR”) up 5% ■ Video security and access control (“Video”) up 21% ■ Command center software up 21% • GAAP EPS of $1.
Slide 4: Financial Results
FINANCIAL RESULTS Q2 21 Q2 22 CHANGE REVENUE $1,971 $2,140 9% NON-GAAP $482 $497 3% OPERATING EARNINGS* NON-GAAP 24.4% 23.2% (120 bps) OPERATING MARGIN* NON-GAAP $2.07 $2.07 — EARNINGS PER SHARE* ($M) excluding per share amounts * Non-GAAP measures exclude highlighted items, including share-based co
Slide 5: Cash Flow
CASH FLOW Q2 21 Q2 22 (M$) YTD YTD CHANGE FY 21 FY 22E CHANGE OPERATING CASH $758 $162 ($596) $1,837 $1,875 $38 FLOW CAPITAL ($114) ($113) $1 ($243) ($275) ($32) EXPENDITURES FREE CASH FLOW* $644 $49 ($595) $1,594 $1,600 $6 YTD Cash Flow includes: ● Planned inventory build ● $75M higher employee inc
Slide 6: Products & SI
PRODUCTS & SI Q2 2022 • Revenue up 7%, driven by growth in LMR and Video Revenue • Non-GAAP operating margin* down 160 bps driven by increased ($M) direct material costs, partially offset by higher sales • Notable wins and achievements: • $32M P25 order for a state of California agency • $27M P25 up
Slide 7: Software & Services
SOFTWARE & • Revenue up 11%, driven by growth in Video, command center SERVICES software and LMR services Q2 2022 Revenue • Non-GAAP operating margin* down 110 bps driven by mix and ($M) higher M&A operating expenses, partially offset by higher sales • Notable multi-year wins and achievements: • $43
Slide 8: Regional Revenue
REGIONAL ($M) Q2 21 Q2 22 CHANGE REVENUE NORTH AMERICA $1,312 $1,484 13% Q2 2022 INTERNATIONAL $659 $656 – TOTAL $1,971 $2,140 9% ● North America growth driven by LMR, Video and command center software ● International flat with growth in all three technologies, offset by FX
Slide 9: Backlog Trend
BACKLOG Software and Services TREND • Y/Y up $1.2B primarily driven by the extension of the Airwave contract in Q4’21 and growth in North America, partially offset by FX ($B) • Q/Q down $227M primarily driven by FX and revenue $13.4 $13.4 recognition for Airwave and ESN, partially offset by $11.2 gr
Slide 10: Outlook
Q3 Details OUTLOOK * Q3 2022 • Effective tax rate of approx. 20% (NON-GAAP) Revenue Growth Approx. 10% • Fully diluted share count of approx. 172M shares Non-GAAP EPS $2.85 - $2.90 • Approx. $60M FX headwind PRIOR FULL-YEAR 2022 Revenue Growth Approx. 7% Non-GAAP EPS $9.80 - $9.95 Full-Year Details
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 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: Reconciliation of Operating Cash Flow to Free Cash Flow
SUPPLEMENTAL NON-GAAP MEASURES Reconciliation of Net cash provided by operating activities to Free cash flow * * 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 GAAP Net Earnings to EBITDA; Net Debt
RECONCILIATION OF GAAP NET EARNINGS TO EBITDA AND ADJUSTED EBITDA SUPPLEMENTAL NON-GAAP MEASURES NET DEBT CALCULATION NET DEBT TO ADJUSTED EBITDA CALCULATION *** Refer to slide 14 for details of highlighted items
Slide 19: Reconciliation of GAAP Net Earnings to EBITDA and Adjusted EBITDA
RECONCILIATION OF GAAP NET EARNINGS TO EBITDA AND ADJUSTED EBITDA SUPPLEMENTAL NON-GAAP MEASURES *** Refer to slide 14 for details of highlighted items
Slide 20: Thank You
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