Motorola Solutions (MSI) 1 Aug 242024 Q2 Earnings call transcript

Good afternoon, and thank you for holding. Welcome to the Motorola Solutions Second Quarter 2024 Earnings Conference Call. Today's call is being recorded.

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The presentation material and additional financial tables are posted on the Motorola Solutions Investor Relations website.

replay after available call. the webcast within our a hours X conclusion addition, will on be website In of this website www.motorolasolutions.com/investor. address The is Instructions]. [Operator

would your conference. Vice Tim Mr. introduce like you of Yocum, begin Investor Relations. I Yocum, now may now to President Mr.

Greg to Vice are President President President Jack Executive Chairman afternoon. and me Welcome earnings and With Jason Vice Mahesh CTO. Vice XXXX, CFO; and our Good and Saptharishi, COO; quarter CEO; second call. today Brown, Executive Executive and Winkler, Molloy,

and will review our Greg Jack along and Q&A. results for and Jason with Mahesh commentary, will join

posted those presentation non-GAAP motorolasolutions.com/investor. reconciliations have our noted. otherwise in non-GAAP the news to These reference. your release reference And during outlook, unless We at an earnings for call, GAAP including materials results, include we and financial

forward-looking variety risks A These the of be these and assets subject will Q&A materially differ this that on expectations forward-looking made Actual call. the during from statements. presentation current of statements are number and a of uncertainties. and results portion could statements based are during to

any be Information can report statements. cause annual report the reports update the and during and any Form SEC. Factors conference and that in undertake today's and could comments on filings such this call differences news made our We of about or on XXXX forward-looking section any in XX-K to Risk the quarterly earnings duty with XX-Q Form our other factors do release found not

And to with Greg. I'll that, over turn it

business goes our . and I'll the us a outlook. thoughts today. start Jason good off for through overall sharing Tim, afternoon, few joining and Thanks, by about results thanks and before

and and and we And SI growth. up backlog, with quarter strength operating favorable of driven U.K., revenue $XXX Services, mix and technologies. QX products. all share Software demand positioning by flat, XX%, $XX LMR by up and ended earnings. per the revenue quarter was XX% generated Products were another revenue continued In in and excluding up First, billion earnings for X strong also with driven was the home revenue XX%, cash increased our XX%, QX the from within continued million was record flow was operating by well outstanding earnings office, us operating of

Second, the LMR, business. resolution video inclusive XX%, X%, U.K. In LMR momentum Command to seeing increased and across we're Support headwinds solutions and both help And incidence. adopt I'm in by increased encouraged our customers security, and software In Managed fixed increasing video of response by as mobile growth was our revenue revenue of continued that the and X%, driven in as as well up in and revenue driven continue effectively the solutions Center, products by them accelerate Services. office home services.

safety robust results, security and guidance customers, QX our full on by prioritization continued based for finally, our for revenue again we're our And year. and earnings and demand raising the both

I'll now call Jason. to turn over the

$X strong million quarter were X you, XX.X% million and non-GAAP by grew added charge higher million, ago $XX and quarter. were partially FX earnings control. by quarter while technologies, driven $XXX operating favorable sales, Revenue offset above points, with million, Acquisitions in was improved operating the during ago the from were up basis $XXX the leverage Non-GAAP operating from XXX the in up XX% for Airwave operating guidance our up year quarter. XX.X% earnings XX.X%, all Thank and Greg. was headwinds sales, year mix of growth the GAAP X% or margin

in was growth $X.XX, and up in last XX% and was OpEx effective Non-GAAP The diluted tax offset versus margins employee current sales partially GAAP QX was acquisitions. $XX last and a year, up up share count, higher higher due earnings a by per year by primarily share $X.XX incentives in million, year. to share higher from $X.XX earnings driven $XXX lower quarter. per EPS in quarter. rate $X.XX, the ago million from the was

$XXX flow $XXX flow. million, million, earnings by employee $XX up taxes. cash partially cash operating free flow was million. driven was higher year, increases million to and Turning last offset and higher by up versus These primarily QX cash $XX cash incentives were higher

cash up was expectations in and expectations capital. growth operating we previous the of year. improved billion, year to increase full be year-to-date expect over working $X.XX flow from significantly an on prior last year cash Our $XX versus and flow our higher now $XXX million the earnings million, double-digit operating And for $XX million

in Capital we $XXX to end, total also a allocation million in million. for acquisitions closed and of $XXX $XX repurchases included share of for Subsequent million quarter X the million QX cash $XX dividends, CapEx.

first event is Rave complements also our a presence provider The of software command management expands our global critical and internationally that center acquisition.

leadership The solutions location second video sector. builds in our is providing services management the financial provider a mobile of further solutions for on and that vehicle

We $XX to slightly expect to approximately million million half revenue dilutive this $XX of video quarter to of per acquisitions second and in to these generate the be primarily year.

operating million and XX% versus Moving year, to headwinds LMR. higher in sales by were in XX.X%, segment XX.X% Currency supply were and improvements the last sales, sales, year, were driven driven or acquisitions earnings results mix along with up in from SI, in and continued of $XX by contributed revenue up $X from $XXX Products demand leverage. improved favorable million. million Operating prior

fixed for Virginia, QX order for include achievements a device in million for in Washington million $XX Federal of local this Some Illinois, million a and order order city for and New large U.S. segment $XX a for the $X PXX million County, schools system system $XX Newark state order $XX an PXX order customer, million and system a a video Naperville, PXX million and Jersey. U.S. notable wins PXX upgrade device an customer a customer, for $X public a video

down X driven U.K. the last excluding technologies. in the XX%, from Home were million In flat Operating to control. quarter, $XXX improved and segment by to offset was XX.X% Revenue million. $X of year leverage the the which partially charge $X XX.X% year, from related Office, last acquisitions sales, Software elsewhere revenue or was Airwave all was compared was the operating reduction revenue segment. up revenue FX in headwinds in in and strength due Services, earnings were to by the million

Home U.K. operating the margins Office, and higher during leverage. on Services quarter Excluding Software sales improved the operating and increased

Police Victorian an Police million include $XX a center for Las the in million this we strength order QX notable This American order to cameras, a government integrated command U.S. LMR for mobile a finally, award a million state part segment $XX order of investment with and received of award Airlines. $XX an radios Some order LMR video $XX mobile made body-worn $XX of ecosystem. Australia, the million And software, our in by for Police LMR for million was application the demonstrating LMR recognition million procure Scotland Scotland. customer, $XX Federal Department, Vegas their Metro a highlights

results. due the revenue Looking International in QX was billion, on America year at down impact $X.X Airwave $XXX versus the growth XX% up all last revenue charge of million, X% to QX control. regional North was X technologies.

in Office, International revenue digits all Home was U.K. growth the X with mid-single technologies. Excluding up

decrease approximately $XX for billion, Moving million last was a or to $XXX Ending backlog. QX of total versus year. X% backlog

million and Excluding from million year SI earlier $XXX ship and LMR products year. last In the up was the segment $XX.X in improvements time billion the Products last us U.K. year supplier Home improve by enabled shipments driven billion, backlog additional Office, total and $XX.X strong as sequentially, sales decreased linearity. versus ending backlog $XXX to our lead

driven multiyear Home down In months of software million, technologies, contracts increased Office. backlog compared by was across software by partially quarterly $XXX by primarily U.K. to the driven and revenue Sequentially, from backlog offset services year, services Home U.K. Office. the for revenue and the $XXX recognition all last recognition X million XX

our next outlook. Turning to

X% million effective between $X.XX We share XXX a expect approximately and earnings share. rate weighted shares an $X.XX share with diluted tax non-GAAP per of and count QX between and of assumes X%, sales This per average XX%. growth

revenue year, from $XX.XX We up our of prior our of now we expect share $XX.XX to full share. between our per and share approximately $XX.XX X%, share, increasing per the approximately are For guidance. and earnings earnings we guidance X%, and from guide of expect revenue both prior again per up growth $XX.XX per non-GAAP

year effective tax driven full an shares average weighted approximately of a sales. rate XXX assumes from higher of by outlook share basis The diluted XX.X%. points, also and XX XXX million count assumes up basis It our approximately expansion approximately of of prior expectation points, margin operating

new with continues of year, And be both video the finally, our M&A. HX expect recorder regarding we for insights ACCA our system, products [ the wanted back video approximately turning video, inclusive AI-enabled Video expectations year. opportunity us before to management to I ] the now growth to cameras, share full Greg, and In cloud increased exciting some for of like an the XX% on-premises offers. latest for and recent call

communicated to year. to related home high we're the full that for U.K. our LMR, And headwinds beginning to single-digit the which growth the the for year, mid- of at includes increasing the office expectations we

On a the to drivers. continued strength of point couple of important LMR, I'd

devices have to customers products, such term. networks offerings software the we upgrade LMR second, margin long cyber continues and drive invest First, and relying as as their in they are in on significant demand in our to installed base, feature-rich expansion. for continue services LMR our agreements a expanded services, strong and for increasingly growth And

of are refresh adopting NEXT like For family customers example, public safety we customers devices. our are multi-year have cycles. technology advanced on devices These thousands of increasingly APX who

I'll now Greg. call over turn to back the

just thoughts. me few let close with a And Jason. Thanks,

share grew continued X margins. significantly We $XXX of First, the seeing million XX%, revenue achieved all technologies. cash the . per by We flow. our and growth across QX operating operating strong earnings increased results We generated highlight we're business. we momentum in

than a share cameras, of to diluted on over continuing Second, invested event Year-to-date, note and solutions software. growth. for adding and our share and count. million value long-range and create we're the we've continued flow and cash like million balance to Lake more we've our shareholder reduce $XXX spent sheet location management use critical to acquisitions, $XXX little Inclusive convertible repurchases, healthy vehicle invest Silver strong

the which software to R&D across the safety also portfolio. business. focused we Ireland, offerings announced comprehensive of will land center expanding powerful and opening company's the in approximately on spend of Cork, expect We for security radio $XXX our this mobile designing on focus the million recently R&D And year,

and ecosystem radio situational work software used investments response, by and personnel. devices evidence awareness, automate improve platforms security together across enhance These to powerful our and video, more various efficiently manage where the

we how the year, like And as enter the we're half I really positioned. finally, second of

backlog QX for several our and TETRA equivalent seeing and increased and as those radio, in We're technologies. providing safety security. never products center, device. VESTA new customers been new which drove of Our APX XXX our including solutions handling record for they call video more adoption cloud-based and offerings which market, have LTE XXX both in is the LMR Next, important TETRA launched MXP prioritize NEXT to continue cloud respective solution in capabilities the we've And same command our the

All well for growth $X of now continued demand point orders that's at was higher positioning it this pipeline going this billion forward. in is very last and year, than about driving us

I'll that, over turn Tim. back with the And to call

you, Thank Greg.

please limit a Before to callers question begin can line to like the how on ask I'd a you Operator questions, our and comment question. remind to one [indiscernible]. themselves we follow-up to to callers on one taking remind

[Operator Instructions].

from first The from is Barclays. question Long Tim

the wanted for on the back seeing refresh to we've in strong quarters Shreves on Tim what Long. we X Alyssa had actually check of inning in, just are in year LMR, outperformance strong been cycle? given I LMR the We've is in prior. from the quarters This

kind we follow-up. of had then should moving XH? quick think the into how Just a And about business I

Yes.

release we're the think refresh newer the to we globally. I continue -- pleased look, device with really portfolio, and

of the less the accounts we of APX it devices, public it will safety I family, X/X think think shipments account this year. than for think NEXT when of I -- device

opportunity kind for of the So that that. dimensionalizes

and TETRA, a which which as just and that's it's also, brand-new the the in up capabilities MXP remarks, Europe international XXX one device. by product. we the market, and to LTE the opens combination I way, for equivalent, also And takes the of mentioned LMR announced

factor, but devices, So LMR, I technology remains product, quite both whole [indiscernible] portfolio strong. the large, services, is a contributing for think demand the and that

high. whole the we to this a That as well Alyssa, office. during And gone for to call the our in that year [indiscernible] from technology year as include LMR growth has for as software both products outlook mid- and of the services mid- will mentioned

growth So strong across. drivers

LMR performance products. products supply times chain supply within we the and which with part in half products drove saw, the in And were we more within the to specifically, quarter for the LMR first and attain improvements half, improved the first lead and that able

And customer been of from on there customers follow-up to been terms then you've business. cadence change Has just the what moving with cloud? in a quick any video on-prem seeing with

about So we adoption a prem of you to million software than kind higher cloud that. our headwind, In XX%. was referenced. the just QX, $XX grew incorporating cloud Alyssa, exponentially talked and this momentum year video Cloud that business

So performing frankly, it's expected adoption strong. quite remains cloud as and very

The next of comes Deutsche from call the Niknam at Matt line Bank.

terms First question an the vocal of perhaps been about marketplace. increasing the opportunities, M&A. you've prospective more -- of I sellers little more talked X what Greg, on give there a in you secondarily, perhaps willingness the in us you've deals maybe on follow-up the in just We is I of opportunities. And seeing, out think recently number you're I'm and guess, latest around, part saw flow. then the done. potential maybe overview can if M&A of on cash curious a an you bit front

the $XXX is million $X.XX So year-to-date. about guide believe, I this billion you've year done, for

you in that in should how I in half confidence think second little And working just particular, context? guess, the capital talk we about can bit that So visibility and about a ramp?

on billion. cash expectations just one But we operating $X.X $X.XXX from the million increased to billion second $XXXX our first, flow

And the expect that's business think also generate asking of be of you're in to well. I QX. the cash flow. reflection is that linearity even by the more reflective weighted generated way linearity the this flow generated confidence our of about to flow cash associated it's overwhelmingly, as in typically heavily and actually ability a the cash the we yield -- half back of Remember

is come year better half. even path the were this cash our We're have quarter. it's with right, you're last and back down. working flow in X.XX ahead first to capital inventory we significant But Greg, we're the usually as half Actually, year of strongly on the contributors, linearity well where

I On front, the the repo X reference of of acquisitions capital. know we CapEx. made. like opportunistic we're That's framework good always fact, Matt, about the XX%. kind of pretty framework. think capital like XX% XX%, think dividend, share we deployment We and along the XX% M&A a you fungible of XX%, we M&A, stewards XX% And and a between

energized anything, point interesting some and like think itself am M&A quite even I funnel, they reflective recent is a is the And capacity we'll I organically the materialize, balance EBITDA of for opportunity the ago. net Equally, debt to active. if see the this but the upgrade it with M&A way net have. but of as we'll see. do us, a the drivers have We certainly we quarter I an by from business the there's at opportunities. to Like presents portfolio performing standpoint, sheet and underlying about BBB funnel demand

we deploy So and where focused have, and how like remain I it. disciplined firepower the very but we on we'll

from next Notter The question George comes Jefferies. from

how There here. should to I backlog, think wanted takes and ask are puts guess understand about about Greg. better we backlog. to trying I

down I Airwave when year-on-year think you sequentially, said it but U.K. situation. we was exclude up the

this ago how in you chunky look quarter? think I your through well. may walk year other at and you takes kind also. quarter, backlog some performance I'm some orders had the we can me There missing puts be But as should of big

Sure.

deteriorated Jason product QX, So print Product referenced Total That's while we QX. the informed question, growth one lead a the faster which improved first of XX% in in up, George. lot because supply thought, year-over-year office. it point. all, exclude reference kind it's on times it LMR backlog, home backlog a than is good you deteriorated of as really when

Having billion is healthy orders billion as quite this off as year backlog like than the billion pretty of remains a a $X and $X.X actually informative year at said product that, comp I think -- previous pipeline which $X record is a about point well. the at higher ago, pipeline, referenced

you Having all blender. that, into all put the said ingredients

slightly last year. total a backlog of to off comparable expect up record We

accelerated good So overall, given all lead improved linearity about a QX. good. feel in dramatically in lumpy times it's bumpy the all, I little pretty pretty is supply and But The it. that

of did order, almost you're orders. as in last $XXX we as Ukraine The George, as right. that year's California, sizable in have we're combination And deals QX, Current product-related significant well significant County, comp. quarter, X million X

Good point.

Got assume or it. I M&A FX And then really impact no on from backlog?

was de fairly FX minimis?

And then M&A, de also I minimis? assume,

Yes. Yes, exactly.

Joseph is the next The Cardoso of question line from JPMorgan. with

a in historically, one tracked able better through typically outlier? on it is right to [indiscernible] But would should bit Gross XQ that if what than more just seen. year. XQ levels understand I whether the first me. there's of I a is cadence then the an us if guide, be expand and imply lot in And the anything for Can margins than quarter been the a look you have I anticipated? a muted under margins just as follow-up. math we help guess as what you've appreciating guess And from we've my maybe I hood that

Sure.

that's within So first supplier the first -- We XXX call operating during We're up well. at the we that margin, on our with start margin about lead expansion we'll in improving from XX%. pleased talked saw at margin, significantly there. operating half good pretty growth bps half see on on really I'll quarter and the of times as the the And performance. year,

year, is that now we'll our about -- be Within margins whereby continue more $XXX envelope the for announced, gross the comparable, invest year. million OpEx mix, than to the to acquisitions with in expected we've will and OpEx remain last the

gross healthy margins to and on So operating that. expansion help good progress margin drive

this better that and [indiscernible] could one, about but for you how that a could bit potentially the Got And you that an where talked other your just the could Jason. color the most big Motorola see that materializing more? address variables? And for maybe is monetize given area you And opportunity to that just base a silly and installed over Or position of installed Lastly, is And you services then but big it. far is of parse if an out to my a appreciate base and acquire? fetched there. maybe specifically maybe or do there, you be opportunity follow-up, a I bit Curious like, this how and opportunity question, have? that time. this is picture

Yes.

I we've capacity. of got growth number a got certain opportunities up from facets, to in big have PXX a standpoint, our countries in us customers We've our and the services abroad. cyber, think that So public particularly in opportunities one, safety Canada picture networks and United States number different step the asked networks,

second is -- just the board The piece of across general scope just scope increases a globally. it

third European in of discussions something. The manage it We're we right and piece usually now It's for America different manage extensions. for one with countries is we in apples. of apples apples that not networks. a it's to And those, X that various plus network South every

encouraged from us front a of services standpoint. So by we're opportunities in the

alley opportunity. not they're do it's run own operating be few relatively but and every Obviously, or the more look -- years delivering there. or power year. We But rare for and interest. always There the I Ireland. was rate we'll That's They're I think an provisioning our did in -- networks. typically services they're that's see. and opportunity LMR and -- last what TETRA an of we could X, one well every side we on opportunities

like -- actually those Those networks on add managed The us lens thing things just at provide we're to as don't as within police service platform service LMR. national I'd agencies well. the contracts to is start a as those provide a do body looking look as only service a just through we other -- typically these [indiscernible] worn to video go well. that of and

little we a bit So flywheel those opportunities. service effect there's when get of a

James. of Tindle line is with Raymond question the next Adam The from

segment a do kind If touch end you'll mid- trajectory start multiple there could if next for give back try from scenario revenue a wanted very of to you a where to maybe here. or a XXXX do to greater greater years a I as We're on has at into beyond digits getting . And strong turning landing? look QX, growth potentially have the look see this. I the high that just in I to to is obviously, math typically. But very, more I this into know Greg, guidance, soft the growth you negative call to up think we're of product the now. revenue out my going on map the QX? going digestion be into right, of trajectory single product been growth, Or could trying

a stepping to I Adam, Yes. funding, the good LMR Look, year lot backlog, see at which kind would Love the XXXX, we scope. say runway to orders is for full of and the again federal demand, I variables it this, approximately of here, I device funding to the mean, refresh systems to be raised back, referenced, Jason continued high local the and here. continued And good informing there's and environment level. that's as the X%. the state mid- raise pipeline, from in growth, services mid- looks

Now We the lead second times particularly products because year. you're supply we thought. was improved drove in XXXX. than to of about we're growth going component still, strong faster not talk half expect continued again right, obviously QX the Adam,

quarter I like we'll in. happens we're next have next high the to on look, like balance So year. for running, business I just and the not momentum like I the quarter, and we -- is the you referenced what some year, of level, I inform probably the but really the color, see XXXX. way this for we'll you give and as But position the

fair. and center, competitive Mahesh to call would think weigh and on in now? in. command that just the non-cloud follow-up Motorola's video have differentiation portion? of portion But cloud I'd the really a as Got how Also the to might wants inflect he the be we the environment case and adoption the increased on in helpful point curious driving and I cloud versus it. evaluate That's Maybe you in what adoption tipping is and

is I'm how parter change or in -- a financials sale lastly might to a Are this a have happens? sale? where a cloud are cannibalization this non-cloud versus then situation multi if impacted we we And in some sorry, the financials

the Adam. reasons historically strong which access because solution, tightly why Sure, an begin that ways, in has the a to ability more integrated. gets one attractive. with, amount solution many and the installation, been To we where with is which It's I one configuration, plus amplified one hardware story. And of of much of bids the control video think offer become cloud end-to-end end-to-end deploy that with the is least site on

very So a preference going one our and we why towards cloud. reasons larger of well, installations see see starting drift customers, now that a with as much the but the smaller we into as quickly

edge, motivator are And and that then also at also cloud what already that's the as additional to we AI do capabilities a that, on top to augment services there deliver of here capabilities and we're able the well.

software, one many growing the the in that's specifically things that's Greg said, which, [indiscernible] software growing cloud as cloud -- that's itself So even while faster. say actually software, I'd already -- ways, XX%, that is at growth, video very of driving

the and successful leadership integration Mahesh's prem growth Avigilon under the video cloud what that of Alex which cloud Yes. call access Kazerani. the for version, cloud the Aveva combined and control the a Open rate acquisition and with And being Unity we the of -- adoption and I reflection Avigilon success strong the think Alta, of is Path is

]" So platform. of is "[ continued our with the part cloud our integration the successful and infection benefits the other point the associated of and but new not yield acquisitions, only growth the

well. I think quite is doing team the

a between customers. And add, to differentiator think Adam, and differentiator value closed enables our and us Connector it's customers The It's point. cloud a competition. their only is It great that's our I to VMS, cameras not a our our thing is move system. I'd big with Cloud keep cloud a proposition

You're Jack. right,

don't And actually if our are is space, standards access I they think unlike cameras [indiscernible] our in not many compliant. out competitors get present. direct-to-cloud locked of that this

go you the of with question Adam, second part your model. financial question -- to had the

go it was the question, actually but third ahead.

business for on-prem are to models. solid propositions Both cloud value us customers. and They're

renewal. for know, stickiness we've impact greater on good a that's acceleration upon million both comes term have the cloud structure. And $XX with planned license track. And the course, renewal as the Of you leads margin of to with cloud that the even

So with models. both pleased we're

Ben The next line Cleveland of from is with Research. Bollin the question

to to the gross Jason, I product margin. wanted go back

If on you exclude are from logistics the your would respect with the where the What have you are any there? you're and supply mix reducing discussion, say optimization. ] you seen? to left efforts, progress BOM What at be you where [ what chain on thoughts might

Yes.

in $XX first by to actually in probably guide relative closer half If So on we we to to that continues the that improve about opened is and year's a QX. in and for trending million supply did we February a benefits mentioned semiconductors way, $XX think when so benefits year PPV. and are improvement the the up, about and included planning that in half. financial I are And cost both having showing basis, about We're second we million. about talked

So . prices premiums of well as the as benefit coming down. we're seeing

We In mix. drivers seen. or Both are growth to of product terms by see you've see growth continue volume terms mix, mix. favorable helpful of we complemented in the

integrity of maybe And mix you us from those for -- me. orders just could versus backlog, Jack, us would on one of you on enterprise-focused more and the traditionally how and or public what then the a commercial safety last overall order? remind you within Greg see remind

composition channel. the Yes. of to line it's Why not a is direct. almost The force, sight that clean sales government backlog, that's backlog XX% and important is direct our it's

procurements they someone and funding issue PO their to order a they within the prioritization directly, given according to subsequently don't vehicles like us a and company governments And government, order else. from

backlog. fulfilling comes plus our from And that backlog, customers. safety public -- our we XX% direct mentioned, Jack So are and as

next of line question The is from the from Evercore. Amit Daryanani

This Lu international on for business. Erwin wanted Amit. to double-click is I actually on the

this office And and/or deceleration international mid-single in growth term, expect how backdrop sort as overall of think total? should percentage we for home all versus was ago. In U.K. a a expand was overall on international American. that quarter North is digits, sense Any I mix demand and longer the versus macro of the impact. QX excluding any a compares to

being a I if of up international about as and service our X think only support large brings very that opportunity. Europe, a device, investment I we from is -- early another we've it, the device We've single in managed customers' think service really XXX, managed not there. outside new mean Greg that it's elongates home office. got digits alluded the in to business just things, standpoint. opportunity think QX announced you within MXP a which There's great support

to new brought the got other enterprise continues be the exceedingly we States. there's -- market recently we've the outside United compete performed brought it We quite business, talked before, But opportunities Australia video, Scotland. space both about the we has X great other to team in mobile of video device also a VP but well. about elements piece, our that well. another We've out talked device. space, within but government within market Mahesh's

there. And collectively a great growth. continues great good opportunities market. So We've I I about all be feel -- international for feel think leadership to really we got

That's to I come almost where and where team -- and are markets . Zealand. team. -- our growth, And those That's but from great our networks. Australia have build international over of that and New you That's and his just us and we know of for Jack them EMEA, we this, Amit, strength. know, flywheels everybody, remind revenues for XX%

versus to get U.K. a an potential Got us anything just there's a outcomes? follow-up, you the maybe wanted quarter ago. I'm report office. a sure through to new can if range But also it. And home of I not just on as walk update

think a ] There's is actually We one and that new you several unfounded. CMA a to point it's from level just been disproportionate. think [ ago, ongoing. the quarter -- question the it's was believe We dispute, unprecedented. set, ruling been We it's it's know It's years. good

You've We that. We heard appealed that. us talk about lost.

Tribunal we lost. Competition we appealed the Appeals to So and

U.K. the of noteworthy decided Court imposition the is court hear it And control Appeal, So the to to U.K. is the option only their the the which they charge item last highest in as dispute, the this relates was case. on of

So remind that's to impossible to draconian this that QX, XX, for a quarter excessive when but this hearing as this year, disproportionately we is, rest it something that's new kind predict relates talked are development. operating full that XX of year, the . I you the ago. what is of is want under the just that about November new year from discount. That a of we and

year. worst-case we're So full of that's kind for the inclusive control year of -- this raising that charge

Don't the in there. happens U.K. am pleased will I we'll it appropriate give goes where the and know. Court of this Appeal the audience that What review, from future? and see

Research. McFall of line question next the Coast from North is with Rodney The

of So premium to NEXT transition customer I was the on provide the color on color radios. to wondering versions if -- versions they the more And you of of just terms product? could legacy on compared been receptive? APX price some in Have then, premium any

standpoint, had experience multiple the family. that reviews. police an We've large-scale the NEXT made gotten we've have and from APX transition to very departments NEXT I APX guess positive

always contemplate use. of we we things one product we when is thing disease the about think of develop first The

I and we've can day, gives fleets refleeted It of is in don't radios network think we extend capability customers I the and them And thing. was also happen transitions them positive nailed which lot a is be instantaneously, capabilities enables to programmed that the to LTE a a enable but well. seen got get mixed that to those we've something a weeks took phenomenon what and coverage. as is want them now that. say to The done months have

NEXT higher workflows Central Last through not to complementary Sweet about command bandwidth our ability put is the rather. also its to least, Command Command suite business, and very we Suite APX our but but our center talk Central --

So we really things. think we've heard positive

about NEXT. devices Jason articulated, this and those Greg will As year, our ship that of APX XX%

So in it upgrade. a phenomenon as we multiyear to the are relates

is Our DiPalma from next of William question from the Louie line Blair.

Or LMR the for Should deeper, is level durable. the And year-over-year up product expect LMR product their following customers this regarding volatile? upgrading mid-teens I'm we several the be strength. growth the rate line to on which compelling going are APX normal are X-year the early devices, the many so an get upgrade Or be LTE programmable upgrading may customers acceleration? radios to cycle? are features the APX and and that on the NEXT to questions X- for driving

of couple So things. a

XX% quicker QX Just, lead the times, times that kind of Louie, of supply pop thought. product you, clutch LMR reflection lead improved in the was ground to growth a components than we

So that's the XX% . exceptionally strong why [ ] print in QX.

growth in mid, I strong because that think mid- think annual to I from continued improvement of you're high Secondly, year-over-year is it's for traction that, -- do Up saying part for with devices. right. the single we're rate, LMR. digits

or I think renewal device X-year it's average, refresh. an on or plus minus about

I in But America relates a as the it an to code still anecdote. I'll that's think ZIP give North you refresh.

with a control which really value as spent a the I a of MX to talking, And feature brings, XXX, his over-the-air and everything the price referenced, adoption and device with rate a European is APX the talked Jack LMR, good. LTE, market device at about been have in large you senior when it. for had really APX Europe do getting has beyond. not. that? and functionality for about city week anecdotal and time NEXT that. I his started what the -- acceptance and I think the and the we're really, just the with which -- think the had it's of display that along that APX sounds no us equivalent him, idea was hear brand-new the And desk allows had said, self-promotion. you with that, last I know video He can international his we he capability, NEXT, channel that some would were he reprogramming, on NEXT and this what It's having just commander He

I So the I think, we're position in. look, love

networks. We're installed of thousands have We monetizing services. the

we As Jack like really think And cybersecurity. talked it's good a I upselling things with scope. situation. the about, have. We're And I hand that expanding like

cumulative in $X mark, the you the billion have you've guys passed past, Great. orders? APX provided NEXT NEXT Jason, orders, APX in Greg And and terms of cumulative your

about used orders... we to Talking cumulative orders, reference

from this metric family. is the than more think the shared of APX revenues less important our that come NEXT APX total will I X/X that year, those devices we've

team APX and still radio. are Jack very good a So selling

that. don't They Jack's it. expect about forced migrations. mixed like They want And customers fleets point graceful Our evidence is migrations.

have And year will them are the in come we almost of us. do XX% APX that way devices long for in this from So public ahead NEXT a $X of billion safety, than of to less

question of . The Meta from Morgan line with Stanley. Marshall next is the

you've that's terms in the lot done order you you first to are the in or customer a past a acquisitions? integration across in Where as platform base? integration teams of Maybe first over year. kind of Maybe of of leverage across better kind the question, get those of Great. those question. are acquisitions just of terms Or the the of

Mahesh Yes, acquisitions are in to you and the maybe could the primarily speak I'll since let integration progress. video Commander,

Sure. And Greg, maybe start left where, off just with to out you Ulta.

together and ones I capabilities market. Both was Alex our Alta. fairly Alta brand both ways, our and customers are being [ Path And Kazerani effectively the is as by now solution, video in were management our of our access and unique which uptake really that and brought control integrate we in the appreciating for portfolio. AVA are video So think control to both critical our and evidenced under Open ], cloud-based cloud-based the solution to able access powerful

that, Rave also security CAD would and elements effectively safety just critical and Rave one and not with enterprise video, those glue solutions, solutions, with the XXX that's but here a public both of our integrated big be is Alta Beyond piece other and enterprise integrated, Unity. and security, between Rave

significant impact ecosystem as that plays forward role. well. a seeing going that think fairly that And of I we're

our all platforms infrastructure Unity Pelco, best the really into and our on with across board. video basically rationalized brought platforms many being video that on-prem operate shared our brands one each things brand management with table, we solution offered the the a And into of the the integrated camera management solution. across

quite way that's And as I on which speaks key sentinel is here, some [ comes So that think into well. examples. play integration puzzle has Silent its the well complement [ both ] to our incident Noggin now. Rave us. a video management, as ] Noggin which of for will right also piece complement of is fixed the key portfolio, nicely it but will

successful think standpoint but roles the years, impact Todd contributory the M&A OpenPath, and -- thing I'd the I accretion and the over to and I competencies Motorola, from financially think add CEO that to of retain CEO acquisition when I'd several and Piett, strategic Alex just facilitate not thing last having and drive Meta, ability just this add do about Exhibit the think standpoint, back look only addition an core really pleased. them, executive of is, I a company in them that, only that the can in Mahesh's retaining Rave, to senior our I'm Kazerani, integrate integration talent. and within A,

well. think going I it's quite

Maybe answer. that piggybacking on Great.

Just successful of how given are just been such that you guys thinking the a part allocation strategy? M&A about capital has

share settlement, tells a of is which settlement, and million repurchase change. got share XXX the share. year this Lake XX.XX memory XX first the in in Silver to was the start off Nick we repurchases of Silver like did over me $XXX little a Lake QX effectively with Well, half at We in great. fast on and convert the million

of I now deploy So share years. we the capital, discounted X We X And point, attractive. over we opportunistically I flow we've completed and against the XX done acquisitions, company XX QX. way the plus the last discounted or like always M&A just the Meta, thoughtfully your minus that going pretty And in think, the funnel to referenced forward. -- is or value and cash the

of between or be share $X.XX XX% that fungible will dividend, billion acquisitions XX% CapEx. of flow with along opportunistic repo operating deploying cash the two we XX% So

too. I and by on way. the our internally in R&D, I well we're And way, deploying -- So capital the like like

technologies through differentiating mobile X giving the us video powering turn, in land center which R&D So and radio, is portfolio of is, and $XXX broadest with safety and competitive unique security million product a ecosystem. widest command

look we've at the capital I I think optimistic like I shareholder ahead present the organically, think like the opportunities I that about I'm the contracted, of when potentially So returning when deployment that. may And and the and to some created for returns. acquisition, float we've themselves. that about I it opportunities about the When value

is America. question the Zilberman next The from Bank of of Instructions]. of Tomer [Operator line

a quarters. the you bit in digits expect I that security mid-single product you've over to portfolio, growth going growing few last little earlier, segment? asked forward? wanted were with Or hit overall for the do the differently Are that to reaccelerate growth some maybe XX% you your been them that ask questions to touch roughly that on video but specifically portion, comfortable that

the ZIP to code at quarters, back look video point, we're few -- your performance. product the I when Well, of in the previous

we is market share. in like control access I is and So category. security share year about really talking consistency. And last video most market gained a important The that

overall video gain the market fact share to against product market expect in in as signaled think, And I is I again the quarter-to-quarter, is we We that earlier, this growth. cloud is the performance rate The of year. fine and great. ZIP think, the the much code growth backdrop higher

the like So are, I like I where we and execution. continued

made is mind, investments services, software. systems in areas the are an of buy some or us software, end-to-end products, the keep this of business in solutions Also, and and the entirety from portfolio customers we've

cloud, services we've made. video, those it's some of analytics, whether whether the So investments are and/or it's mobile

And so software see is to that. commensurate products than growing faster to

Got it. a your And as to maybe implied follow-up, moving guidance. XQ

few a expectations. in implied of came cents So EPS the short Street

we as curious year, half as go into margin the on set the up especially to XQ? your of second the Just thoughts

the volumes, total made performance acquisitions X% reflecting dilutive raise year the as the raise the higher we've the on So as cents well offset QX the with few and the by a the is of growth. acquisitions, from

but a well, the informs mean also is dilutive of that nicely. through in. But couple full like obviously, the And QX. I there's we're of M&A Yes. raise as cents year position slightly we -- pretty we in beat passed the

Brown, Officer additional comments any for the concludes Chief This and our session. closing remarks. will Mr. now Chairman Greg Executive or over question-and-answer I turn to floor

the to Solutions on all Yes. the and and also partners you the the Obviously, quarter thanks listening I call. more we'd channel for that quarter everything distributors call. important quarter. you And this at you've the just exceptional worldwide finish people probably everybody than want and an to done joining thank strong. back for Motorola But informs for for year our our momentum appreciate of everybody quarter how say the the year thank for half -- like is the

I solving continues think our resonate safer narrative for to and traction. think gain I

think, this I for a mentioned, And up point putting The and billion. think and as from security results. At I the period year, self-evident. that's customer prioritization representative an $X I significantly is safety is orders a emphasis in on pretty referenced priority the ago. pipeline about last

So us the provides that think performance asked helping the I -- again good strength the done. think I appreciate going second the operating to I been you've sheet. the business, fact like on row. the and the Look, flow finally, our investment, about allocation, as and sheet. what continue forward. look, balance think to acquisitions And appreciate everybody how to shareholder flexibility you're everything upward, you're doing I it digits I I've and and I of drive value and of grow I of double the organic And capital onward execute and is cash for firepower expected like a our balance year the in

lines time. We replay address conclude that the call hours. please A of thank is will you X Internet at ask your within www.motorolasolutions.com/investor. over teleconference. does you The for This today's this disconnect website be this available participation and