Earnings Presentation Q1 2025 Results | May 1, 2025 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 future results or events discussed in these statements will be achieved. Any forward-looking statements represent our views only as of today and should not be re ...

Financial Performance - Q1 2025 sales reached $2.528 billion, a 6% increase from Q1 2024[2] - GAAP operating earnings were $582 million, up 12% year-over-year, with an operating margin of 23.0%[4] - Non-GAAP EPS increased by 13% to $3.18, compared to $2.81 in Q1 2024[3] - Operating cash flow for Q1 2025 was a record $510 million, up $128 million from the previous year[3] - Net sales increased to $2,528 million for the three months ended March 29, 2025, compared to $2,389 million for the same period in 2024, representing an increase of 5.8%[34] - Gross margin improved to 51.4% in Q1 2025, up from 49.9% in Q1 2024, indicating enhanced profitability[34] - Operating earnings rose to $582 million, a 12.1% increase from $519 million in the prior year[34] - Net earnings attributable to Motorola Solutions, Inc. reached $430 million, a significant recovery from a loss of $39 million in the same quarter last year[34] - Free cash flow for the quarter was $473 million, compared to $336 million in Q1 2024, reflecting strong cash generation[40] - The non-GAAP net earnings attributable to Motorola Solutions, Inc. was $540 million, compared to $482 million in Q1 2024, showing strong operational performance[41] - Net earnings attributable to Motorola Solutions, Inc. for the three months ended March 29, 2025, were $2.53 per share, a significant increase from a loss of $(0.23) per share in the same period last year[46] Revenue Growth Projections - The company expects approximately 4% revenue growth for Q2 2025 compared to Q2 2024[9] - Full-year 2025 revenue growth is projected at approximately 5.5%, with non-GAAP EPS guidance between $14.64 and $14.74[9] - Organic revenue growth was 4%, with organic revenue totaling $2.496 billion compared to $2.389 billion in the previous year[52] Legal Matters - Hytera was ordered to pay $56 million in royalties on September 1, 2023, following a court ruling related to the use of stolen trade secrets[22] - The total damages awarded to the company by the Court of Appeals amounted to $407.4 million, including exemplary damages, under the Defend Trade Secrets Act[23] - The District Court's award of $136.3 million in copyright infringement damages is currently under reconsideration[23] - The company recognized a gain of approximately $61 million from the release of escrow funds on November 26, 2024, related to Hytera litigation[22] - Hytera made a partial payment of approximately $10 million toward the judgment on March 4, 2025, which was also recorded as a gain[22] - Legal expenses associated with Hytera-related litigation are no longer considered "normal and recurring" by the company as of 2020[26] - The company anticipates further legal expenses related to Hytera litigation, which will be excluded from non-GAAP operating income[26] Cost and Tax Considerations - The GAAP effective tax rate for Q1 2025 was 21.0%, significantly down from 57.8% in the prior year[4] - The non-GAAP tax rate for the quarter was 21.1%, slightly lower than 22.1% in the same period last year[43] - The company anticipates increased costs on materials and components in 2025 due to global supply chain volatility[8] Shareholder and Compensation Information - Share-based compensation expenses are excluded from non-GAAP operating expenses and net income measurements due to their non-cash nature[27] - Intangible assets amortization expense is excluded from non-GAAP operating expenses as it is a non-cash expense and affects performance evaluation[28] - Share-based compensation expenses increased to $0.39 per share from $0.32 per share year-over-year[46] - The company reported a total of 169.8 million diluted weighted average common shares for the current quarter, compared to 166.3 million in the prior year[46] - The company incurred $0.08 per share in Hytera-related legal expenses, up from $0.01 per share in the same quarter last year[46] Operational Metrics - The backlog at the end of Q1 2025 was $14.1 billion, down 2% from the previous year[4] - Research and development expenditures increased to $233 million, up from $218 million year-over-year, highlighting continued investment in innovation[34] - Total assets decreased to $14,433 million as of March 29, 2025, down from $14,595 million at the end of 2024[36] - The company reported a net cash provided by operating activities of $510 million, compared to $382 million in the previous year[38] - Non-GAAP adjustments before income taxes totaled $0.82 per share, down from $4.14 per share in the same period last year[46] - The operating earnings margin as a percentage of net sales was 23.0% for the current quarter, compared to 21.7% in the prior year[49]

Core Viewpoint - Motorola Solutions, Inc. is expected to report higher revenues year over year due to growth in both segments, product innovation, and healthy AI traction across various sectors [1] Group 1: Product Innovations and Developments - Motorola launched its Pelco portfolio, featuring AI-powered devices for high-demand environments, including fixed cameras and smart sensors that withstand extreme conditions [2] - The company introduced the V200 body camera to enhance support for frontline workers in hostile situations, likely contributing positively to upcoming results [2] - Motorola equipped police forces in San Luis province, Argentina, with a TETRA system, enhancing communication capabilities [3] - A new digital radio communications system was deployed on the German Navy's F124 Sachsen frigate, improving command-and-control operations [3] - The acquisition of RapidDeploy, a cloud-native 911 solution provider, strengthens Motorola's public safety and emergency communication services [4] Group 2: Financial Expectations - The Zacks Consensus Estimate projects net sales in the Products and Systems Integration segment to be $1.57 billion, reflecting a 5.1% year-over-year growth [5] - Revenues from Software and Service are expected to reach $946.9 million, up from $899 million in the same quarter last year [5] - Total revenues for the March quarter are estimated at $2.51 billion, indicating a 5.26% year-over-year decline, with earnings projected at $3.01 per share, an increase from $2.81 per share in the prior year [5] Group 3: Earnings Predictions - The current Earnings ESP for Motorola is 0.00%, indicating uncertainty in predicting an earnings beat for the first quarter [6][7] - Motorola holds a Zacks Rank of 3, suggesting a neutral outlook [8]

The upcoming report from Motorola (MSI) is expected to reveal quarterly earnings of $3.01 per share, indicating an increase of 7.1% compared to the year-ago period. Analysts forecast revenues of $2.51 billion, representing an increase of 5.3% year over year. The current level reflects an upward revision of 0.1% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period. Be ...

Group 1: Product Launch and Features - Motorola Solutions, Inc. (MSI) launched the APX N70 XE smart radio aimed at enhancing mission-critical communication for firefighters and emergency medical services [1] - The smart radio includes features such as SmartMessaging for multimedia exchange, SmartMapping for locating crews, Smartincident for pushing vital information, and SmartLocate for real-time personnel tracking [2] - Advanced connectivity features like SmartConnect allow seamless switching between legacy radios and LTE, while the AI-Voice assistant, ViQi, simplifies device use in critical situations [3] Group 2: Market Demand and Positioning - The demand for advanced communication devices is increasing as security enterprises, police forces, and firefighter agencies focus on strengthening their security ecosystems [5] - Motorola is well-positioned to benefit from this trend due to its comprehensive portfolio of smart radios and security solutions [5] Group 3: Stock Performance - MSI's stock has increased by 20.6% over the past year, while the industry has seen a growth of 39.9% [6]

Core Insights - Motorola Solutions, Inc. (MSI) has partnered with Collin College Law Enforcement Academy to integrate its V700 body cameras into the training program for recruits, enhancing their preparedness for real-world policing challenges [1][5] Group 1: Product Features and Benefits - The V700 body-worn cameras provide live video streaming and real-time GPS location reporting, integrating seamlessly with in-car cameras to capture incidents from multiple angles [3] - The Record-After-The-Fact feature allows retrieval of crucial footage even if recording was not initiated at the time of an incident, offering valuable insights for training adjustments [4] - The solution facilitates wireless video uploads to VideoManager EL, enabling officers to send important footage back to headquarters while still in the field [4] Group 2: Market Position and Growth Potential - Motorola is a leading provider of mission-critical communication products, with a steady revenue stream from the body-worn camera market, which enhances police transparency and accountability [6] - The company experienced strong demand for video security products in Q4 2024 and is well-positioned for continued growth due to its diversified portfolio and innovative solutions [7] - The advanced features of the V700 camera improve real-time communication and decision-making processes, which are expected to bolster Motorola's future prospects in public safety solutions [7] Group 3: Stock Performance - MSI's stock has increased by 14.2% over the past year, while the industry has seen a growth of 30.8%, indicating a need for improved performance relative to peers [8]

Core Insights - Motorola Solutions, Inc. (MSI) has introduced new capabilities in its Avigilon physical security suite, enhancing critical communication infrastructure for organizations globally [1][2] - The enhancements aim to improve safety and collaboration with public safety agencies, facilitating better communication during emergencies [2][3] Company Developments - The Avigilon Alta SOS solution simplifies security management with features like video security, access control, and 24/7 virtual monitoring, designed to enhance efficiency and visibility [2] - The Avigilon Unity platform has been optimized for large-scale operations, allowing security operators to monitor complex events and set alerts for specific scenarios [3] - Motorola's acquisition of InVisit, a cloud-based visitor management solution provider, is expected to further enhance its Avigilon Alta security suite, addressing sophisticated security threats [5] Financial Performance - Motorola has seen a steady demand for video security products, with expectations of incremental revenue growth from the new enhancements [4][6] - The company's stock has gained 24.4% over the past year, compared to the industry's growth of 43.5% [7] Market Position - Motorola aims to strengthen its position in the public safety sector through strategic alliances and a diversified portfolio [4] - The company has expanded its offerings since acquiring Avigilon in 2018, focusing on advanced video surveillance and analytics for various sectors [5]

Group 1: Company Overview - Motorola Solutions Inc. (MSI) is positioned for growth through a focus on organic growth and strategic acquisitions, supported by disciplined capital deployment [1] - The company has a competitive position and an attractive portfolio that caters to a large addressable market, indicating strong long-term growth potential [1] Group 2: Recent Acquisitions - In February 2023, Motorola acquired RapidDeploy, a cloud-native 911 solution provider, to enhance its emergency coordination solutions and strengthen its position in public safety [2] - In July 2024, Motorola acquired Noggin, a provider of cloud-based business continuity planning and critical event management software, to improve communication and operational resilience during incidents [3] Group 3: Future Outlook - Motorola aims to enhance its position in the public safety sector through strategic alliances with other players in the ecosystem [4] - The company anticipates strong demand for video security, land mobile radio products, and related software, which will drive additional device sales and promote software upgrades [5]

Core Insights - Motorola Solutions, Inc. (MSI) has launched its Pelco portfolio, featuring AI-powered devices designed for high-demand environments like oil and gas sectors and ports [1] - The Pelco product line includes advanced cameras and smart sensors that integrate with third-party video management systems, enhancing security solutions for enterprises [1][7] Product Offerings - The Pelco portfolio includes the Esprit Anti-Corrosion cameras with 40x zoom and 1080p resolution, suitable for maritime environments [3] - The ExSite Enhanced Thermal 2 fixed camera provides precise thermal views for target detection in challenging conditions [3] - Aeron and Jaegar cameras can detect threats over distances of up to 20 miles, ideal for military and critical infrastructure applications [4] - The Halo Smart Sensor monitors air quality and detects security threats, providing real-time alerts [4] Technological Integration - The Pelco devices are supported by Motorola's cloud-based camera platform, Elevate, allowing for easy installation and integration with Open Network Video Interface Forum systems [5] - The portfolio complies with the National Defense Authorization Act Sec. 889, ensuring adherence to security procurement standards [5] Market Position and Financial Outlook - Motorola aims to strengthen its position in the public safety sector through strategic alliances and has seen strong demand for video security products [6] - The company is expected to generate incremental demand for its solutions, leading to higher revenues and improved financial performance [8] - Over the past year, Motorola's stock has gained 22%, while the industry has grown by 44.3% [9]

然而，与上一季度相比，智能手机出货量下降了近 2% 。这一情况发生的原因是许多品牌已在 2024 年 Q3 开始发货，以确保在假期季节开始前完成分销。几乎所有拉丁美洲国家都有自己版本的"黑色 星期五"购物活动，许多活动持续一整周。一些国家，如墨西哥的"El Buen Fin"和阿根廷的"网络星 期一"，活动时间甚至更早。 根据 Counterpoint 市场监测服务的最新报告 ，2024 年 Q4 ，拉丁美洲智能手机市场的出货量同比增 长 9.3% ，这是连续第六个季度实现同比增长。阿根廷、智利、秘鲁等地区市场是这一增长的主要 推动力。 点击阅读原文下载完整版 PDF 报告 三星 继续在拉丁美洲地区占据领先地位，其市场份额比最接近的竞争对手高出约 9 个百分点。这 家手机品牌厂商提前推出了入门级机型，这使得其出货量同比有所增加，不过由于拉丁美洲的潜 在市场总量有所扩大，其市场份额并未发生变化。 摩托罗拉 的出货量实现了小幅同比增长。其成功主要得益于在较低价格区间的表现，以及推出的 5G 智能手机产品大幅降价促销，这也助力其在该地区扩大了市场。然而，其市场份额同比下降了 几个百分点。 小米 实现了两位数的增长， ...