Motorola Solutions, Inc.
CEO : Mr. Gregory Q. Brown
Quarterly earnings growth(YoY,%)
| Period | Revenue | Operating Income | EPS | Release Date |
|---|---|---|---|---|
| 2022 Q4 | 16.6% YoY | 26.0% | 47.9% | 2023-02-09 |
Jack Molloy says,
APX NEXT Mid-Tier Launch
- A mid-tier APX NEXT is now available, which will be an accelerant for suburban and county municipalities outside of the big cities.
- $370 million of orders since the product was announced with $210 million of orders in 2022.
ARPA Funding Accelerating P25 Upgrade Cycle
- ARPA funding is expected to be an accelerant to the P25 upgrade cycle.
- City of Houston used ARPA funds and some surplus budgets to move forward with the device.
- 10-year refresh cycle has pulled into a 7-year refresh cycle.
Extended Network and SmartConnect
- The ability to extend the network through mutual events, SmartConnect, and owner experience is driving the demand for the device.
- Upgrading software, cyber fixes, and bug refreshes can be done in 10 minutes leveraging the LTE compatibility.
Location Matters
- GPS provisioning through our CAD networks has been a big add for customers.
Expected Double Orders in 2023
- $210 million of orders in 2022 with the expectation to double orders in 2023.
Greg Brown says,
Record Q4 Results
- Revenue growth of 17%
- Earnings per share growth of 26%
- Expanded operating margins by 150 basis points
- Generated a record $1.3 billion of operating cash flow
- Record ending backlog of $14.3 billion, up $800 million versus last year
Outstanding 2022 Performance
- Products and Systems Integration segment revenue up by 14%
- Software and Services segment revenue up by 8% and 12% when normalized for FX headwinds
- Double-digit growth in both video security and Command Center
- Record backlog, up 22% versus last year
- Expanded operating margins in the Products and Systems Integration segment by 110 basis points despite higher costs related to semiconductors
Positive Outlook for 2023
- Positioned for another year of strong revenue and earnings growth
Q & A sessions,
Revenue Growth and Backlog
- Double-digit revenue growth for the second consecutive year, record sales in both segments and technologies
- Expanded operating margins despite supply challenges related to semiconductors
- Record $14.3 billion backlog, up almost $800 million versus prior year
Acquisition of Rave Mobile Safety
- Adds approximately $70 million of annual recurring revenue for 2023 and expands addressable market by approximately $7 billion
- Helps to accelerate revenue growth, diversify revenue streams, and quadruple addressable market to an estimated $60 billion
Growth Expectations and Funding Environment
- Expecting growth in all three technologies in 2022: LMR to be mid-single digits, video security to be about 15%, and command center to be about 20%
- Multiyear funding horizon for ARPA and strong state budgets add to exceptional funding environment
Land Mobile Radio (LMR) and APX NEXT Device Portfolio Refresh
- LMR remains strong as a platform
- APX NEXT device portfolio refresh includes high-end APX NEXT, mid-tier APX NEXT, and refreshed TETRA portfolio
- PCR returns to prepandemic levels and adds to demand for LMR
- Supply constraints still driving mid-single digit growth guidance
Education and Video Security & Access Control
- Education is the largest vertical in terms of Video Security & Access Control and continues to outpace overall business growth
- Analytics and access control also play a role in school safety
- Domain expertise and market knowledge matter in identifying opportunities for growth in private education systems
Unified Experience in Command Central Market
- Unified experience desired by newer and more technology-savvy dispatchers
- Opportunities to sell different products in different cycles still benefit the company
- Margin opportunity identified in providing unified experience
No bad stock 