Motorola Solutions is a company that specializes in providing communication and security solutions through its two main segments: "Products and Systems Integration" and "Software and Services" **[0000068505-24-000034_msi-20240928.htm:6]** **[0000068505-24-000008_msi-20231231.htm:7]** **[0000068505-24-000008_msi-20231231.htm:141]**. The company offers a range of products, including Land Mobile Radio Communications, Video Security and Access Control, and Command Center solutions **[0000068505-24-000034_msi-20240928.htm:6]** **[0000068505-24-000008_msi-20231231.htm:7]** **[0000068505-24-000008_msi-20231231.htm:141]**. These products are designed to enhance public safety and professional communications, as well as improve decision-making through integrated voice, video, and data analytics **[0000068505-24-000034_msi-20240928.htm:6]** **[0000068505-24-000008_msi-20231231.htm:7]** **[0000068505-24-000008_msi-20231231.htm:141]**.

1. **Products and Systems Integration** - Encompasses Land Mobile Radio Communications, which includes infrastructure, devices, and software for public safety and professional radio communications, significantly contributing to the company's revenue **[0000068505-24-000034_msi-20240928.htm:6]** **[0000068505-24-000008_msi-20231231.htm:7]** **[0000068505-24-000008_msi-20231231.htm:141]**.
   - **Land Mobile Radio Communications (LMR)** - Provides infrastructure, devices, and software for public safety and professional radio communications.
2. **Software and Services** - Offers solutions that unify voice, video, and data analytics to improve decision-making **[0000068505-24-000034_msi-20240928.htm:6]** **[0000068505-24-000008_msi-20231231.htm:7]** **[0000068505-24-000008_msi-20231231.htm:141]**.
   - **Video Security and Access Control** - Provides cameras, access control, and AI-powered analytics.
   - **Command Center** - Delivers solutions that unify voice, video, and data analytics to enhance decision-making.

11badc98a3e158c258dd91ea21eff1c7de91d586055975537704d05557bd2774

5a1c5bbf2d56331a0d91341bcd65b0265448c8a50c6b98ebb968e783897992ef

| Metric [Unit: $ Million] | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|--------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Products and Systems Integration | **1,810**  **[0000068505-23-000009_msiq42022pressrelease.htm:0]**  | **1,303**  **[0000068505-23-000026_msi-20230401.htm:28]**  | **1,437**  **[0000068505-23-000039_msi-20230701.htm:34]**  | **1,612**  **[0000068505-23-000043_msiq32023pressrelease.htm:0]**  | **1,890**  **[0000068505-24-000004_msiq42023pressrelease.htm:0]**  | **1,490**  **[0000068505-24-000014_msiq12024pressrelease.htm:0]**  | **1,658**  **[0000068505-24-000024_msi-20240629.htm:34]**  | **1,784**  **[0000068505-24-000034_msi-20240928.htm:35]**  |
| Software and Services   | **896**  **[0000068505-23-000009_msiq42022pressrelease.htm:0]**   | **868**  **[0000068505-23-000026_msi-20230401.htm:28]**   | **966**  **[0000068505-23-000039_msi-20230701.htm:34]**   | **944**  **[0000068505-23-000043_msiq32023pressrelease.htm:0]**   | **958**  **[0000068505-24-000004_msiq42023pressrelease.htm:0]**   | **899**  **[0000068505-24-000014_msiq12024pressrelease.htm:0]**   | **970**  **[0000068505-24-000024_msi-20240629.htm:34]**   | **1,006**  **[0000068505-24-000034_msi-20240928.htm:35]**   |
| Total Net Sales         | N/A     | **2,171**  **[0000068505-23-000025_msiq12023pressrelease.htm:0]**  | **2,403**  **[0000068505-23-000039_msi-20230701.htm:34]**  | **2,556**  **[0000068505-23-000043_msiq32023pressrelease.htm:0]**  | N/A     | **2,389**  **[0000068505-24-000014_msiq12024pressrelease.htm:0]**  | **2,628**  **[0000068505-24-000024_msi-20240629.htm:34]**  | **2,790**  **[0000068505-24-000032_msiq32024pressrelease.htm:0]**  |

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bba838c3c38b7889dc63689adb659bf6f6e9a23f9d5558d7316d67258f587333

| Metric [USD Million] | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| North America        | **1,900**  **[MSI_3227669_2]**  | **1,492**  **[0000068505-23-000026_msi-20230401.htm:27]**  | **1,641**  **[0000068505-23-000039_msi-20230701.htm:8]**  | **1,783**  **[0000068505-23-000045_msi-20230930.htm:8]**  | **2,000**  **[MSI_3372581_3]**  | **1,693**  **[0000068505-24-000016_msi-20240330.htm:7]**  | **1,917**  **[0000068505-24-000024_msi-20240629.htm:8]**  | **2,007**  **[0000068505-24-000034_msi-20240928.htm:9]**  |
| International        | **808**  **[MSI_3227669_2]**    | **679**  **[0000068505-23-000026_msi-20230401.htm:27]**    | **762**  **[0000068505-23-000039_msi-20230701.htm:8]**    | **773**  **[0000068505-23-000045_msi-20230930.htm:8]**    | **832**  **[MSI_3372581_3]**    | **696**  **[0000068505-24-000016_msi-20240330.htm:7]**    | **711**  **[0000068505-24-000024_msi-20240629.htm:8]**    | **783**  **[0000068505-24-000034_msi-20240928.htm:9]**    |

9cbc4ce1933f8be708d2d3f46d09af107491a48b0a0f25b0b855c015fd7b8ae5

1. Given the record gross margins reported this quarter, how should we think about gross margins moving forward, especially considering supply chain normalization and the APX NEXT product cycle?  **[MSI_3406858_10]** 

2. With the potential for reduced public sector spending following the recent election, how do you anticipate this impacting MSI's core customer base and revenue growth, particularly given your significant exposure to state and local budgets?  **[MSI_3406858_8]** 

3. Can you elaborate on your M&A strategy moving forward, and whether changes in the administration will affect your capital allocation plans or openness to pursue larger deals that you may have previously been hesitant to undertake?  **[MSI_3406858_15]** 

4. Considering the drawdown in product backlog due to strong LMR shipments and easing supply chain constraints, how are you expecting the product backlog to trend going forward, and what are the key drivers that will sustain LMR growth rates into next year?  **[MSI_3406858_9]** 

5. Given that the improved supply chain environment has helped you expand margins this quarter, to what extent can we expect this trend to continue, and are there any risks that could impact operating margins or cash flows in the coming quarters?  **[MSI_3406858_4]** 

713cbdd135f4600a9701d068bc06c5c441c56bc45cd7af73938aaf2fe2dca3c8

- **Airbus** - Competitor in LMR technology
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- **Onsolve** - Competitor in Command Center technology
- **Oracle Public Safety** - Competitor in Command Center technology
- **Tyler Technologies** - Competitor in Command Center technology  **[0000068505-24-000008_msi-20231231.htm:14]** 

bfacba097ccb89abe0fa5e4c6f5da50aa279867ff98ad5a90f59692f3cefe248

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024
- **Guidance**:
  - **Revenue Growth**: Expected full-year revenue growth of **8.25%**, up from prior guidance of approximately **8%**  **[MSI_3406858_4]** .
  - **Non-GAAP Earnings Per Share (EPS)**: Expected between **$13.63 and $13.68** per share, up from prior guidance of **$13.22 to $13.30** per share  **[MSI_3406858_4]** .
  - **Weighted Average Diluted Share Count**: Approximately **171 million shares**  **[MSI_3406858_4]** .
  - **Effective Tax Rate**: Approximately **22.5%**  **[MSI_3406858_4]** .
  - **Operating Expenses (OpEx)**: Approximately **$2.4 billion** for the full year  **[MSI_3406858_4]** .
  - **Operating Cash Flow**: Raised to approximately **$2.3 billion**, up from previous guide of **$2.25 billion**  **[MSI_3406858_3]** .
  - **2025 Revenue Growth**: Preliminary guidance for 2025 revenue growth is **5% to 6%**  **[MSI_3406858_6]** .
  - **Software and Services Growth**: Expected to grow about **2x** the rate of Products and SI for 2025  **[MSI_3406858_6]** .
  - **Operating Margin Expansion**: Expected continued operating margin expansion in 2025  **[MSI_3406858_6]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: Q3 2024 and FY 2024
- **Guidance**:
  - **Q3 2024 Guidance**:
    - **Sales Growth**: Expected between **7% and 8%**  **[MSI_3395776_3]** .
    - **Non-GAAP EPS**: Expected between **$3.32 and $3.37** per share  **[MSI_3395776_3]** .
    - **Weighted Average Diluted Share Count**: Approximately **170 million shares**  **[MSI_3395776_3]** .
    - **Effective Tax Rate**: **24%**  **[MSI_3395776_3]** .
  - **Full Year 2024 Guidance**:
    - **Revenue Growth**: Increased to approximately **8%**, up from prior guidance of approximately **7%**  **[MSI_3395776_3]** .
    - **Non-GAAP EPS**: Expected between **$13.22 and $13.30** per share, up from prior guidance of **$12.98 to $13.08** per share  **[MSI_3395776_3]** .
    - **Weighted Average Diluted Share Count**: Approximately **171 million shares**  **[MSI_3395776_3]** .
    - **Effective Tax Rate**: Approximately **23.5%**  **[MSI_3395776_3]** .
    - **Operating Margin Expansion**: Expected to be approximately **100 basis points**, up from prior expectation of **75 basis points**  **[MSI_3395776_3]** .
    - **Operating Cash Flow**: Expected to be **$2.25 billion**, an increase of **$50 million** versus prior expectations  **[MSI_3395776_2]** .
  - **Segment-Specific Guidance**:
    - **Video Segment**: Expected growth of approximately **12%** for the full year, inclusive of recent M&A activities  **[MSI_3395776_3]** .
    - **Land Mobile Radio (LMR)**: Expectations increased to mid- to high single-digit growth for the full year  **[MSI_3395776_3]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: Q2 2024 and FY 2024
- **Guidance**:
  - **Q2 2024 Guidance**:
    - **Sales Growth**: Expected to be up between **7% and 8%**.
    - **Non-GAAP EPS**: Expected to be between **$2.97 and $3.02** per share.
    - **Weighted Average Diluted Share Count**: Approximately **170 million shares**.
    - **Effective Tax Rate**: Approximately **24%**.
  - **Full Year 2024 Guidance**:
    - **Revenue Growth**: Increased to approximately **7%**, up from prior guidance of approximately **6%**.
    - **Non-GAAP EPS**: Expected to be between **$12.98 and $13.08** per share, up from prior guidance of **$12.62 to $12.72** per share.
    - **FX Headwind**: Assumed to be **$30 million**, primarily in the second half.
    - **Weighted Average Diluted Share Count**: Between **170 million and 171 million shares**.
    - **Effective Tax Rate**: Between **23% and 24%**.
    - **Interest Expense**: Expected to be approximately **$240 million**, up **$25 million** year-over-year  **[MSI_3382234_3]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: Q1 2024 and FY 2024
- **Guidance**:
  - **Q1 2024 Guidance**:
    - **Sales Growth**: Expected to be up approximately **8%**.
    - **Non-GAAP EPS**: Expected to be between **$2.50 and $2.55** per share.
    - **Weighted Average Diluted Share Count**: Approximately **172 million** shares.
    - **Effective Tax Rate**: Approximately **23%**  **[MSI_3372581_3]** .
  - **Full Year 2024 Guidance**:
    - **Revenue Growth**: Expected to be approximately **6%**.
    - **Non-GAAP EPS**: Expected to be between **$12.62 and $12.72** per share.
    - **Weighted Average Diluted Share Count**: Approximately **171 million** shares.
    - **Effective Tax Rate**: Between **23% and 24%**  **[MSI_3372581_4]** **[MSI_3372581_3]** .
    - **Operating Cash Flow**: Expected to be **$2.2 billion**  **[MSI_3372581_4]** .

654f846fa20f957fc4ed37b8b3eef07d48d5284170522b02794caddb973a0685

Americas

EMEA

Asia Pacific

North America

International

- United States

- United Kingdom

- Canada

- Other, net of eliminations

Latin America

Middle East

Total Revenue

1e1fffd1a6dc3f8f9cf45cecad8ff1512a12d96cafc7ccf4128841218fe3b96a

Software and Services Performance Obligations (Billion USD)

41e9cad045783d7ad90267568ced0b04d68c7baa94c8bfd9ec7ab9f260781983

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

| Name                  | Position                                           | Start Date         | Short Bio                                                                                                                                                                                                                                                                                                                                 |
|-----------------------|----------------------------------------------------|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Gregory Q. Brown      | Chairman and Chief Executive Officer               | May 3, 2011        | Gregory Q. Brown has been serving as the **Chairman and Chief Executive Officer** of Motorola Solutions, Inc. since **May 3, 2011**. He has a thorough knowledge of the company's business, strategy, people, operations, competition, and financial position  **[0000068505-24-000008_msi-20231231.htm:54]** **[0001193125-24-079648_d517482ddef14a.htm:30]** .                                                                 |
| Karen E. Dunning      | Senior Vice President, Human Resources             | February 1, 2023   | Karen E. Dunning is the **Senior Vice President, Human Resources** for Motorola Solutions. She has been with the company since **1985** and has held several leadership positions in strategy, business operations, and engineering throughout her career  **[0000068505-24-000008_msi-20231231.htm:54]** **[0001193125-24-079648_d517482ddef14a.htm:42]** **[0001193125-24-068598_d517482dpre14a.htm:42]** .                                                                 |
| Katherine Maher       | Corporate Vice President and Chief Accounting Officer | March 14, 2022     | Katherine Maher is the **Corporate Vice President and Chief Accounting Officer** at Motorola Solutions, Inc. She has held this position since **March 14, 2022**. Prior to this role, she served as Vice President and Corporate Controller from November 2021 to March 2022  **[0000068505-24-000008_msi-20231231.htm:54]** .                                                     |
| John P. "Jack" Molloy | Executive Vice President and Chief Operating Officer | 1994               | John P. "Jack" Molloy is the **Executive Vice President and Chief Operating Officer** for Motorola Solutions. He leads the company's worldwide sales and services organization and product development of land mobile radio and video security and access control  **[0001193125-24-068598_d517482dpre14a.htm:42]** **[0001193125-24-079648_d517482ddef14a.htm:42]** **[0001193125-23-084527_d398107ddef14a.htm:41]** .                                                             |
| Rajan S. Naik         | Senior Vice President, Strategy and Ventures       | 2015               | Rajan S. Naik is the **Senior Vice President, Strategy and Ventures** at Motorola Solutions. He is responsible for the corporate strategy organization, mergers and acquisitions, venture capital portfolio, and competitive and market intelligence  **[0001193125-24-079648_d517482ddef14a.htm:42]** **[0001193125-24-068598_d517482dpre14a.htm:42]** .                                                                             |
| James A. Niewiara     | Senior Vice President, General Counsel             | February 1, 2023   | James A. Niewiara is the **Senior Vice President and General Counsel** of Motorola Solutions. He has been with the company since **2008** and has held several leadership roles within the legal department  **[0000068505-24-000008_msi-20231231.htm:54]** **[0001193125-24-079648_d517482ddef14a.htm:43]** **[0001193125-23-084527_d398107ddef14a.htm:42]** .                                                                                                                 |
| Mahesh Saptharishi    | Executive Vice President and Chief Technology Officer | 2019               | Mahesh Saptharishi is the **Executive Vice President and Chief Technology Officer** for Motorola Solutions. He is responsible for the company's public safety software and video security and access control solutions, and he also leads the chief technology office  **[0001193125-24-079648_d517482ddef14a.htm:43]** **[0001193125-24-068598_d517482dpre14a.htm:43]** **[0001193125-23-084527_d398107ddef14a.htm:42]** .                                                      |
| Jason J. Winkler      | Executive Vice President and Chief Financial Officer | 2001               | Jason J. Winkler is the **Executive Vice President and Chief Financial Officer** for Motorola Solutions. He is responsible for the company's financial strategy and leads all financial functions, as well as supply chain and information technology  **[0001193125-24-079648_d517482ddef14a.htm:43]** **[0001193125-24-068598_d517482dpre14a.htm:43]** .                                                                           |
| Cynthia M. Yazdi      | Senior Vice President, Communications & Brand      | 2000               | Cynthia M. Yazdi is the **Senior Vice President, Communications & Brand** for Motorola Solutions. She is responsible for supporting the Chairman and CEO of Motorola Solutions and for global communications and brand for the company  **[0001193125-24-079648_d517482ddef14a.htm:44]** **[0001193125-24-068598_d517482dpre14a.htm:44]** .                                                                                         |
| Nicole Anasenes       | Director, Member of the Audit Committee            | February 21, 2024  | Nicole Anasenes joined the board of Motorola Solutions, Inc. as a director on **February 21, 2024**. She also became a member of the Audit Committee on the same date  **[0001193125-24-079648_d517482ddef14a.htm:14]** **[0001193125-24-079648_d517482ddef14a.htm:110]** **[0001193125-24-068598_d517482dpre14a.htm:31]** .                                                                                                                                                     |
| Elizabeth Mann        | Director, Member of the Audit Committee            | August 26, 2024    | Elizabeth D. Mann joined the Board of Directors of Motorola Solutions, Inc. on **August 26, 2024**, when the size of the Board was increased from eight to nine members. She also became a member of the Audit Committee on the same date  **[0001193125-24-207088_d227573d8k.htm:1]** .                                                                                         |

4b3f7e6e71f193807481e55eb993f1963b2785213ae2c11d1f94cb61c03fed1e

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | **July 28, 2011**  **[0000068505-24-000034_msi-20240928.htm:49]** **[0000068505-24-000034_msi-20240928.htm:44]**  |
| End Date/Duration        | **No expiration date**  **[0000068505-24-000034_msi-20240928.htm:49]** **[0000068505-24-000034_msi-20240928.htm:44]**  |
| Total additional amount  | **$18.0 billion**  **[0000068505-24-000034_msi-20240928.htm:49]** **[0000068505-24-000034_msi-20240928.htm:44]**  |
| Remaining authorization amount | **$2.3 billion** (as of 2024-12-21)  **[0000068505-24-000034_msi-20240928.htm:49]** **[0000068505-24-000034_msi-20240928.htm:44]**  |
| Details                  | The program allows for the repurchase of up to $18.0 billion of outstanding shares.  **[0000068505-24-000034_msi-20240928.htm:49]** **[0000068505-24-000034_msi-20240928.htm:44]**  |

7d480700c6b0de38b50ee1c77cb1ae153ae565f15ba63bf485d0fadfdb61734d

2f086e4d1aea0ce438572e25b7a0f59f7f0849ea9c4dd79188512d22b7b57683

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

6bbb55157848f45d5ad25252d03a64c5e3e5552ab33b85c0e6dcd009966ba228

**Annual guidance for FY 2024:**
- **Revenue Growth**: 8.25%  **[MSI_3406858_4]**  (raised from 8.0%  **[MSI_3395776_3]** )  
- **Non-GAAP EPS**: $13.63–$13.68  **[MSI_3406858_4]**  (raised from $13.22–$13.30  **[MSI_3395776_3]** )  
- **Weighted Average Diluted Share Count**: 171 million shares  **[MSI_3406858_4]**  (no change from prior 171 million shares  **[MSI_3395776_3]** )  
- **Effective Tax Rate**: 22.5%  **[MSI_3406858_4]**  (lowered from 23.5%  **[MSI_3395776_3]** )  
- **Operating Cash Flow**: $2.3B  **[MSI_3406858_3]**  (raised from $2.25B  **[MSI_3395776_2]** )  
- **Operating Expenses (OpEx)**: $2.4B  **[MSI_3406858_4]**  (no prior guidance)

**Annual guidance for 2025:**
- **Revenue Growth**: 5%–6%  **[MSI_3406858_6]**  (no prior guidance)  
- **Software and Services Growth**: expected to grow about 2× the rate of Products and SI  **[MSI_3406858_6]**  (no prior guidance)  
- **Operating Margin Expansion**: expected continued operating margin expansion  **[MSI_3406858_6]**  (no prior guidance)  

a93a6d7b175de268899ee890c0736e0bd6fe6a0ad730d1b473a65c6d1fccca67

| Name                     | Start Date       | End Date       | Reason for Change                                                                 |
|--------------------------|------------------|----------------|----------------------------------------------------------------------------------|
| PricewaterhouseCoopers LLP (PwC) | May 14, 2018  **[0001193125-18-166592_d584384dex161.htm:0] [0001193125-18-166592_d584384d8k.htm:1]**  | Present      | Current auditor.                                                            |
| KPMG LLP                 | 1959  **[0000068505-19-000006_msi201810-k.htm:76]**     | December 31, 2018  **[0001193125-18-166592_d584384dex161.htm:0] [0001193125-18-166592_d584384d8k.htm:1]**  | Motorola Solutions conducted a competitive process to select a new auditor.  **[0001193125-18-166592_d584384d8k.htm:1]**  |

95564732dd5782d31513c8d2b12e84f81b1af2cf2f85dc2fb36f05f3dc8089af

9660d14cc45bfa451be50c0ae9c416af62f85c45c8d1dbcc2c19139995dde2ec

- Total Revenue: $2.790 billion (+9% YoY)  **[0000068505-24-000034_msi-20240928.htm:9]** **[0000068505-23-000045_msi-20230930.htm:33]**   
- Products and Systems: $1.784 billion (+11% YoY)  **[0000068505-24-000034_msi-20240928.htm:9]** **[0000068505-23-000045_msi-20230930.htm:33]**   
- Software and Services: $1.006 billion (+7% YoY)  **[0000068505-24-000034_msi-20240928.htm:9]** **[0000068505-23-000045_msi-20230930.htm:33]**   
- Video: $500 million (+10% YoY)  **[0000068505-24-000034_msi-20240928.htm:9]** **[0000068505-23-000045_msi-20230930.htm:33]**   
- Command Center: $202 million (+9% YoY)  **[0000068505-24-000034_msi-20240928.htm:9]** **[0000068505-23-000045_msi-20230930.htm:33]**   
- North America: $2.007 billion (+13% YoY)  **[0000068505-24-000034_msi-20240928.htm:9]** **[0000068505-23-000045_msi-20230930.htm:33]**   
- Operating Income: $711 million (+11% YoY)  **[0000068505-24-000034_msi-20240928.htm:2]** **[0000068505-24-000034_msi-20240928.htm:21]** **[0000068505-24-000034_msi-20240928.htm:5]** **[0000068505-23-000045_msi-20230930.htm:2]**   
- Net Income: **$562 million (+21% YoY)**  **[0000068505-24-000034_msi-20240928.htm:2]** **[0000068505-24-000034_msi-20240928.htm:21]** **[0000068505-24-000034_msi-20240928.htm:5]** **[0000068505-23-000045_msi-20230930.htm:2]**   
- EPS (Diluted): $3.36 (+20% YoY)  **[0000068505-24-000034_msi-20240928.htm:2]** **[0000068505-24-000034_msi-20240928.htm:21]** **[0000068505-24-000034_msi-20240928.htm:5]** **[0000068505-23-000045_msi-20230930.htm:2]**   

315f78230e4ac24ebaebcab17abe1b84dc4c86c6e590965569eb97a98d6987e7

73ebd7bca14b38b9b152e269a3a89239831878481e17974545edd65809e323c7

d07f760d1ee1b90cb8183fed49d7069840931c5e7c2533ad429f8abe3ff3d72f

Backlog for Airwave services with UK Home Office (reduction) (USD millions)

Backlog for Airwave services with UK Home Office (additional) (USD millions)

4db54e6773e83f5d1714ea50cea0f2609127028aa95c4601084f8128ceab0680

7834110812a8dc6d77726773c71fb69b8797b30e14d0b4ba8d68c21efd31620d

| Year | Amount Due (in millions) | Debt Type               | Interest Rate (%) | % of Total Debt                                                                 |
|----------|------------------------------|-----------------------------|-----------------------|------------------------------------------------------------------------------------|
| 2025     | 252                          | 7.5% Debentures            | 7.5                  | 4.2% = (252 / 6,000) * 100 **[0000068505-24-000034_msi-20240928.htm:16]** **[0000068505-24-000034_msi-20240928.htm:43]**                                       |
| 2025     | 70                           | 6.5% Debentures            | 6.5                  | 1.2% = (70 / 6,000) * 100 **[0000068505-24-000034_msi-20240928.htm:16]** **[0000068505-24-000034_msi-20240928.htm:43]**                                        |
| 2028     | 696                          | 4.6% Senior Notes          | 4.6                  | 11.6% = (696 / 6,000) * 100 **[0000068505-24-000034_msi-20240928.htm:16]** **[0000068505-24-000034_msi-20240928.htm:43]**                                      |
| 2028     | 24                           | 6.5% Debentures            | 6.5                  | 0.4% = (24 / 6,000) * 100 **[0000068505-24-000034_msi-20240928.htm:16]** **[0000068505-24-000034_msi-20240928.htm:43]**                                        |
| 2029     | 396                          | 5.0% Senior Notes          | 5.0                  | 6.6% = (396 / 6,000) * 100 **[0000068505-24-000034_msi-20240928.htm:16]** **[0000068505-24-000034_msi-20240928.htm:43]**                                       |
| 2029     | 802                          | 4.6% Senior Notes          | 4.6                  | 13.4% = (802 / 6,000) * 100 **[0000068505-24-000034_msi-20240928.htm:16]** **[0000068505-24-000034_msi-20240928.htm:43]**                                      |
| 2030     | 895                          | 2.3% Senior Notes          | 2.3                  | 14.9% = (895 / 6,000) * 100 **[0000068505-24-000034_msi-20240928.htm:16]** **[0000068505-24-000034_msi-20240928.htm:43]**                                      |
| 2031     | 846                          | 2.75% Senior Notes         | 2.75                 | 14.1% = (846 / 6,000) * 100 **[0000068505-24-000034_msi-20240928.htm:16]** **[0000068505-24-000034_msi-20240928.htm:43]**                                      |
| 2032     | 596                          | 5.6% Senior Notes          | 5.6                  | 9.9% = (596 / 6,000) * 100 **[0000068505-24-000034_msi-20240928.htm:16]** **[0000068505-24-000034_msi-20240928.htm:43]**                                       |
| 2034     | 892                          | 5.4% Senior Notes          | 5.4                  | 14.9% = (892 / 6,000) * 100 **[0000068505-24-000034_msi-20240928.htm:16]** **[0000068505-24-000034_msi-20240928.htm:43]**                                      |
| 2037     | 38                           | 6.625% Senior Notes        | 6.625                | 0.6% = (38 / 6,000) * 100 **[0000068505-24-000034_msi-20240928.htm:16]** **[0000068505-24-000034_msi-20240928.htm:43]**                                        |
| 2044     | 397                          | 5.5% Senior Notes          | 5.5                  | 6.6% = (397 / 6,000) * 100 **[0000068505-24-000034_msi-20240928.htm:16]** **[0000068505-24-000034_msi-20240928.htm:43]**                                       |
| 2097     | 93                           | 5.22% Debentures           | 5.22                 | 1.6% = (93 / 6,000) * 100 **[0000068505-24-000034_msi-20240928.htm:16]** **[0000068505-24-000034_msi-20240928.htm:43]**                                        |

1b440ff229d764698af10ae8da6446ae9f88d3a61c48a5dd2159a262fadfc2bb

- **Motorola Solutions is facing a $200 million revenue headwind in 2024 due to the U.K. Home Office price control on Airwave, reducing expected Airwave revenue to about $375 million.**  **[MSI_3372581_7]**
- **The company anticipates lower revenue from Ukraine in 2024, decreasing from $150 million in 2023 to $50 million, potentially impacting overall growth.**  **[MSI_3372581_7]**
- **Motorola Solutions expects an increased interest expense of about $40 million in 2024 due to refinancing $1.3 billion of debt, including a $1 billion Silver Lake note and $300 million in debt expiring in September, which could affect net earnings.**  **[MSI_3372581_6]**

ff95417ceb70aab08cbab586a5db3143ff25cb0bb2628a3e4019fff1d05084de

- **Heavy reliance on government contracts poses risks, as approximately 95% of backlog comes from government direct sales. Any cuts or delays in government budgets could significantly impact revenue.**  **[MSI_3395776_15]**
- **International growth is decelerating, with Q2 revenue up only mid-single digits excluding the U.K. Home Office impact, suggesting potential macroeconomic challenges and slower demand outside North America.**  **[MSI_3395776_16]**
- **The transition from on-premises to cloud solutions in the video business is causing a $40 million revenue headwind for the year, potentially pressuring growth in this key segment.**  **[MSI_3395776_7]**

3d290b11f9873f45e4c5043659c8595888d901be0a395ffe6e6301c48bd45b6b

- **Motorola Solutions expects strong growth in their Command Center segment, projecting a 10% increase for the full year, with over 60% of customers adopting cloud-connected products, indicating robust demand for their cloud offerings.**  **[MSI_3382234_11]**
- **The company is successfully expanding operating margins through cost reductions, improved supply chain efficiencies, and increased sales of feature-rich products, with expectations of continued margin improvements beyond fiscal 2024.**  **[MSI_3382234_12]**
- **Strong demand in the Land Mobile Radio (LMR) segment, particularly for the new APX NEXT devices and applications, is driving revenue growth and margin expansion, with ongoing investments and a refreshed device portfolio fueling further growth.**  **[MSI_3382234_6]**

6d3a41e8d436fd994516c8c42d306acd2ca80470415abff3e332524428101c81

1. **LMR Growth and Outlook**  
   **Q:** How is the LMR business performing and what's the outlook?  
   **A:** Demand for LMR products and services remains strong, with a **19% LMR product growth in Q2** driven by improved supply chain lead times. The outlook for LMR has been raised from mid to **mid- to high single-digit growth** for the year, reflecting continued strong traction with devices and services.  **[MSI_3395776_6]** **[MSI_3395776_9]** 

2. **Cash Flow Guidance and Confidence**  
   **Q:** How confident are you in achieving the cash flow guidance?  
   **A:** The operating cash flow expectation has been increased from **$2.2 billion to $2.25 billion** for the year.  **[MSI_3395776_8]**  Strong cash flow generation is expected in the back half, typically significant in Q4, with improvements in inventory and working capital contributing.  **[MSI_3395776_8]** 

3. **M&A Opportunities and Capital Allocation**  
   **Q:** What's the outlook on M&A activities and capital allocation?  
   **A:** The M&A funnel is quite active with interesting opportunities, and the company has balance sheet capacity to pursue them.  **[MSI_3395776_8]**  Capital allocation follows a framework of **55% between share repurchases and M&A**, **25% dividends**, and **15% CapEx**.  **[MSI_3395776_8]** **[MSI_3395776_22]** 

4. **Backlog and Orders Pipeline**  
   **Q:** How should we view the backlog performance?  
   **A:** Total backlog is up year-over-year when excluding the U.K. Home Office, with product backlog remaining healthy at **$4.3 billion**, though decreased in Q2 due to improved supply lead times.  **[MSI_3395776_9]**  The orders pipeline is about **$1 billion higher** than a year ago, indicating strong demand.  **[MSI_3395776_9]** 

5. **Gross Margins and Cost Improvements**  
   **Q:** How are gross margins evolving with supply chain improvements?  
   **A:** Supply chain improvements contributed to better gross margins, with expectations of **100 basis points operating margin expansion** for the year, up from 75 basis points.  **[MSI_3395776_10]**  The company is seeing an improvement in costs, trending towards a **$70 million** reduction relative to semiconductors and PPV, up from the initial **$60 million** expectation.  **[MSI_3395776_13]** 

6. **Shift to Cloud in Video Business**  
   **Q:** How is the shift from on-premises to cloud impacting the video business?  
   **A:** There's a **$40 million headwind** this year due to customers moving from on-premises to cloud.  **[MSI_3395776_7]** **[MSI_3395776_12]**  In Q2, video software business grew **24%**, with cloud adoption growing exponentially higher.  **[MSI_3395776_7]**  Cloud offerings like Avigilon Alta are gaining strong traction due to ease of deployment and enhanced capabilities.  **[MSI_3395776_12]** 

7. **U.K. Home Office Dispute**  
   **Q:** What's the update on the U.K. Home Office dispute?  
   **A:** The U.K. Court of Appeal has agreed to hear the case on November 11 and 12, a new development from the previous quarter.  **[MSI_3395776_16]**  Currently, operations continue under the imposed charge control, and the full-year guidance includes this impact.  **[MSI_3395776_16]** 

8. **International Business Outlook**  
   **Q:** How is the international business performing compared to North America?  
   **A:** International business grew mid-single digits in Q2. Despite a slight deceleration, there are great opportunities, especially in Europe and Australia, with potential in government and enterprise markets outside the U.S..  **[MSI_3395776_14]** 

9. **APX NEXT Device Adoption**  
   **Q:** How is customer adoption of the APX NEXT radios progressing?  
   **A:** Customers are receptive to the APX NEXT radios, with positive reviews from multiple large-scale police departments.  **[MSI_3395776_15]**  The devices will account for less than **25% of public safety device shipments** this year, indicating significant upgrade potential ahead.  **[MSI_3395776_6]** **[MSI_3395776_15]** 

10. **Video Product Growth and Market Share**  
    **Q:** Is the current video product growth sufficient to meet goals?  
    **A:** The company is comfortable with mid-single-digit growth in video products, focusing on gaining market share, which it achieved last year and expects to do again.  **[MSI_3395776_18]**  Higher growth is seen in cloud offerings, emphasizing end-to-end solutions with products, software, and services.  **[MSI_3395776_18]** 

024b3fcbf7ca470483e92848f4b72be8c15f6db7897e303c105a9c68b2e9015d

1. **Airwave Contract Extension and CMA Appeal**  
   **Q:** Any updates on the Airwave contract and CMA appeal?  
   **A:** Motorola Solutions received notice from the UK Home Office to extend the Airwave contract through years **2027 to 2029**, reaffirming the critical need for mission-critical LMR systems like Airwave. The backlog was recorded at the charge control rates, which are being contested. The company has appealed the CMA's final decision to the UK Court of Appeal, expecting clarity by **May or June**, and will continue to defend its position.  **[MSI_3382234_8]** 

2. **Margin Outlook and Expansion Drivers**  
   **Q:** How will margins expand beyond this year?  
   **A:** The company expects gross margins to be up slightly and operating margins to improve by about **75 basis points** this year. Key drivers include volume mix, strategic price increases in services contracts with cost-of-living adjustments, and refreshing the device portfolio. OpEx is increasing by **$100 million** year-over-year to invest in areas like video and AI initiatives, aiming to enhance efficiencies, though AI benefits are not yet factored into projections.  **[MSI_3382234_12]** 

3. **Backlog Trends and Seasonality**  
   **Q:** Should we be concerned about the sequential decline in backlog after adjusting for Airwave?  
   **A:** Excluding the UK Home Office impact, total backlog is up over **$500 million**, and Subscription & Services backlog is up over **$600 million**. While the Airwave extension added **$748 million** to backlog this quarter, the prior quarter included a reduction due to pricing controls for years 2024–2026. The core business backlog is growing, and the apparent decline is affected by these adjustments.  **[MSI_3382234_13]** 

4. **Product Segment Margins and Supply Chain**  
   **Q:** Is margin improvement in the Product segment sustainable?  
   **A:** The company is on track to achieve **$60 million** in lower broker costs this year, with some benefits realized in Q1 and more to come. Improved supply chain conditions and strong demand support sustainable margin improvements in the Product segment.  **[MSI_3382234_12]** 

5. **Video Business Growth and Cloud Adoption**  
   **Q:** How is cloud adoption affecting the Video business?  
   **A:** The Video business had strong Q1 results, with increased adoption of Avigilon Alta and cloud solutions. There's an estimated **$40 million** headwind due to the shift to cloud, but the company remains confident in achieving **10%** growth for the full year. Software within Video is growing faster than hardware, driven by analytics, VMS products, and cloud subscriptions.  **[MSI_3382234_6]** 

6. **LMR Growth and Device Refresh Cycle**  
   **Q:** Where are you in the LMR device refresh cycle?  
   **A:** The company is pleased with the performance of LMR products and services, with strong demand continuing. Customers are adopting more feature-rich devices like **APX NEXT**, driving revenue and margin expansion. The entire APX portfolio, including **APX Originals**, is performing exceptionally well. The device refresh is ongoing, with significant opportunity ahead.  **[MSI_3382234_7]** 

7. **Ukraine Business and Aid Package Impact**  
   **Q:** Has the Ukraine aid package changed your outlook?  
   **A:** The company's full-year view remains unchanged despite the recent **$95 billion** foreign aid bill. They still expect a **$100 million** headwind from reduced business in Ukraine, primarily impacting the second half of the year. The team remains actively engaged but is maintaining guidance as previously stated.  **[MSI_3382234_10]** 

8. **Command Center Growth Expectations**  
   **Q:** Do you still expect 10% growth in Command Center?  
   **A:** Yes, the company remains enthusiastic about the Command Center category and expects **10%** growth for the full year. Excluding the UK Home Office impact, Q1 would have shown strong double-digit growth. Over **60%** of Command Center customers are now adopting cloud-connected products, with offerings like Rave performing beyond expectations.  **[MSI_3382234_11]** 

9. **Managed Services Contract Repricing**  
   **Q:** Are other customers seeking to reprice managed services contracts?  
   **A:** No, the UK situation is unique, and there is no evidence of other managed services customers looking to reprice contracts elsewhere in the world.  **[MSI_3382234_9]** 

cc5db0b573989a98aab70bba80d1b83f47d5efaa07e0da219be6a7091c7dad87

- **Motorola Solutions expects another strong year of operating cash flow in 2024, with an outlook of $2.2 billion, up from last year's record $2 billion, providing flexibility for share repurchases, dividends, and strategic acquisitions, particularly in Video, Software, or Services.**  **[MSI_3372581_11]** **[MSI_3372581_10]**
- **The company is experiencing robust growth in its Video Security & Access Control segment, especially in government sectors where video sales reached $500 million in 2023 and are growing faster than the overall business, supported by continued market share gains and a broad portfolio including both on-premise and cloud solutions like Alta.**  **[MSI_3372581_15]** **[MSI_3372581_7]**
- **Strong backlog and pipeline, with improved backlog duration and quality, support growth expectations for 2024, alongside prioritization of public safety spending in state and local budgets, ensuring sustained demand for the company's products and solutions.**  **[MSI_3372581_14]** **[MSI_3372581_13]**

85069907c7b130bd35cd2e09de88435fb912babd8f0d69c382138959462bdcb8

- **Motorola Solutions expects a $100 million revenue headwind in the second half of 2024 due to reduced business in Ukraine, which remains unchanged despite recent aid packages.**  **[MSI_3382234_10]**
- **The company is facing legal and regulatory challenges with the UK Competition and Markets Authority (CMA) over pricing related to the Airwave network; they lost an appeal to the Competition Appeals Tribunal and are awaiting a decision from the UK Court of Appeal, introducing uncertainty around future revenues from this critical contract.**  **[MSI_3382234_9]**
- **Excluding the $748 million backlog from the Airwave contract extension, Motorola Solutions' total backlog declined by approximately $500 million sequentially, roughly twice the normal seasonal decline, potentially indicating weaker demand.**  **[MSI_3382234_13]**

04b5717ea5d97bdcb3c9134ae16a5b99716b156b5df52a8866ff0cb245217053

- **Management expressed uncertainty about providing detailed guidance for 2025 growth, particularly regarding the contribution from product backlog, indicating potential challenges in forecasting future revenue.**  **[MSI_3406858_18]**
- **There is potential risk from reduced public sector spending due to political changes, which could impact state and local budgets and affect the company's largely government-dependent revenue streams.**  **[MSI_3406858_8]**
- **The company's reliance on acquisitions, such as the recent purchase of 3TC, may pose integration risks and suggests a need for external growth drivers rather than organic growth.**  **[MSI_3406858_16]**

17f3318c641f21de5f63408387ccea5a19699cd0672ef7c78d646ba6ea7c6d97

- **MSI expects total backlog to be up from last year's record levels**, indicating strong demand across both products and services.  **[MSI_3406858_9]**
- **Strong state and local budgets** are supporting robust demand for MSI's products and services, with **prioritization on public safety spending**.  **[MSI_3406858_8]**
- **Actively pursuing M&A opportunities in video, software, and services**, exemplified by the acquisition of **3TC**, which enhances control room solutions, improves margins, and provides a platform for growth.  **[MSI_3406858_21]** **[MSI_3406858_16]**

d2051f02a500a5d79ffaefcd9d209986db1ffd4148d2e4f1dc38ee69166399d9

1. **2025 Revenue Outlook**  
   **Q:** What's your revenue growth outlook for 2025?  
   **A:** We expect revenue growth of **5% to 6% in 2025**.  **[MSI_3406858_6]**  Software and Services is projected to grow about **twice as fast as Products**, driven by strong demand and a robust backlog.  **[MSI_3406858_6]** 

2. **Operating Margins Expansion**  
   **Q:** How will operating margins evolve?  
   **A:** We anticipate **operating margin expansion**, particularly in Software and Services.  **[MSI_3406858_6]**  The PPV relief of **$70 million** is largely behind us, but we'll have about **$20 million** tailing into next year, benefiting margins  **[MSI_3406858_6]** **[MSI_3406858_10]** .

3. **Backlog Growth**  
   **Q:** What's the outlook on backlog levels?  
   **A:** We now expect total backlog to be **up** at the end of this year compared to last year's record levels  **[MSI_3406858_6]** **[MSI_3406858_9]** . Product backlog remains healthy at over **$4 billion**.  **[MSI_3406858_18]** 

4. **Recurring Revenue Growth**  
   **Q:** How is recurring revenue evolving?  
   **A:** Recurring revenue is strong, with Software and Services serving as a proxy.  **[MSI_3406858_7]**  We expect S&S to grow about **twice as fast as Products** in 2025, with continued cloud adoption in video and command center  **[MSI_3406858_6]** **[MSI_3406858_7]** .

5. **Video Business Transition**  
   **Q:** How is the shift to cloud impacting video?  
   **A:** The shift to cloud is leading to higher software attachment rates, especially with AI-related cameras like the H6A and ACC8.  **[MSI_3406858_14]**  There's a **$40 million headwind** in 2024 due to customers moving to cloud, but we view this positively as it reflects accelerated cloud adoption.  **[MSI_3406858_12]** 

6. **Impact of U.S. Election**  
   **Q:** What are your expectations after the U.S. election?  
   **A:** We believe the administration's focus on public safety is positive.  **[MSI_3406858_8]**  State and local budgets remain strong, benefiting our business.  **[MSI_3406858_8]**  A more favorable M&A environment is also anticipated.  **[MSI_3406858_8]** 

7. **M&A Outlook**  
   **Q:** How do you view the M&A environment?  
   **A:** The M&A environment is attractive, with a robust pipeline primarily in video, software, and services  **[MSI_3406858_15]** **[MSI_3406858_21]** . Our strong balance sheet provides us with **dry powder** for acquisitions.  **[MSI_3406858_15]** 

8. **APX NEXT and MXP660 Devices**  
   **Q:** Can you update on APX NEXT and MXP660 adoption?  
   **A:** About **25%** of devices shipped are APX NEXT, indicating a long runway ahead.  **[MSI_3406858_13]**  The MXP660 has been launched internationally, and we expect a pickup in 2025.  **[MSI_3406858_20]** 

9. **Gross Margins Outlook**  
   **Q:** What's the outlook for gross margins?  
   **A:** With the **$70 million** PPV relief behind us, margins remain positive due to favorable mix and new products like APX NEXT.  **[MSI_3406858_10]** 

10. **Federal Business Growth**  
    **Q:** How is the federal business performing?  
    **A:** The federal business was around **$900 million** last year and is growing this year.  **[MSI_3406858_11]**  We've had strong federal wins, with recent large orders not fully reflected in backlog.  **[MSI_3406858_11]** 

11. **Command Center Growth**  
    **Q:** How is command center adoption progressing?  
    **A:** We are now **#1** in CAD and Records in North America.  **[MSI_3406858_17]**  Over **60%** of customers have at least one cloud component, and we expect about **9%** growth this year.  **[MSI_3406858_17]** 

12. **U.K. Airwave Update**  
    **Q:** What's the status of the U.K. Airwave issue?  
    **A:** A hearing is scheduled next week to challenge the CMA ruling. We expect a decision by the end of the year or early 2025.  **[MSI_3406858_20]** 

13. **Subscription Sales Strategy**  
    **Q:** How is the subscription sales strategy going?  
    **A:** We are not forcing everything into subscriptions but see increased cloud adoption in video and command center.  **[MSI_3406858_19]**  APX NEXT devices often come with broadband applications, enhancing recurring revenue.  **[MSI_3406858_19]** 

14. **Acquisition of 3TC**  
    **Q:** What does the 3TC acquisition bring?  
    **A:** 3TC provides CAD solutions for U.K. control rooms. Bringing it in-house improves margins and supports growth.  **[MSI_3406858_16]** 

9a2108d8c978114025b6a716bdd15996a6da6d3bcf337360ac0171dc3fc55703

1. **Margin Expansion and Supply Chain Headwinds**  
   **Q:** What are the expectations for margin expansion and supply chain headwinds?  
   **A:** Motorola expects operating margin expansion for 2024, driven by an additional **$60 million** improvement in purchase price variance (PPV), following strong performance in 2023.  **[MSI_3372581_6]**  Gross margins are anticipated to be comparable to slightly up, with operating expenses increasing by about **$80 million**, half of which is organic.  **[MSI_3372581_6]** 

2. **Revenue Growth Outlook and Guidance**  
   **Q:** Why is full-year growth lower despite strong Q1 guidance?  
   **A:** The full-year growth estimate of **6%** is affected by a **$200 million** revenue headwind from the UK Home Office Airwave contract and a **$100 million** decrease in revenue from Ukraine.  **[MSI_3372581_7]**  Adjusting for these factors, the underlying growth remains solid. Supply chain improvements are expected to normalize revenue linearity, similar to last year.  **[MSI_3372581_7]** 

3. **Airwave Contract and UK Home Office Headwind**  
   **Q:** What is the status of the Airwave contract with the UK Home Office?  
   **A:** Airwave revenue is expected to decline by **$200 million** year-over-year in 2024.  **[MSI_3372581_7]**  Motorola plans to appeal to the UK Court of Appeals regarding the CMA's decision, believing it is legally flawed.  **[MSI_3372581_12]**  The current contract extends through 2026, with opportunities to serve beyond that.  **[MSI_3372581_12]** 

4. **Backlog and Demand Trends**  
   **Q:** How are backlog trends impacting demand outlook?  
   **A:** Despite a **$800 million** adjustment due to the Airwave contract, overall backlog remains strong at **$14.3 billion**.  **[MSI_3372581_9]**  Product backlog is exceptionally robust with favorable aging. Approximately half of 2024 revenue is expected to come from backlog, similar to last year.  **[MSI_3372581_9]** 

5. **Free Cash Flow and Capital Allocation**  
   **Q:** What are the free cash flow expectations and capital allocation plans?  
   **A:** Motorola expects operating cash flow of **$2.2 billion** in 2024, up from a record **$2 billion** in 2023.  **[MSI_3372581_11]**  They plan to continue a balanced capital allocation, with **55%** available for share repurchases or acquisitions, **30%** for dividends, and **15%** for capital expenditures.  **[MSI_3372581_11]** 

6. **Supply Chain Update**  
   **Q:** What is the current state of the supply chain?  
   **A:** Supply chain conditions are improving, particularly in semiconductors.  **[MSI_3372581_8]**  Motorola primarily relies on air freight, minimizing impacts from ocean freight disruptions.  **[MSI_3372581_8]**  Inventory levels decreased by **$200 million** to **$827 million** at year-end 2023, with expectations to reduce further in 2024.  **[MSI_3372581_8]** 

7. **Video Growth and Cloud Transition**  
   **Q:** What is the outlook for Video segment growth and cloud adoption?  
   **A:** The Video segment is expected to grow approximately **10%** in 2024.  **[MSI_3372581_7]**  Cloud-native solutions like the Alta platform are experiencing strong growth. Motorola is rationalizing some on-premises offerings, impacting 2024 revenue by about **$40 million**.  **[MSI_3372581_7]**  Government video sales reached **$500 million** in 2023, growing faster than the overall business.  **[MSI_3372581_7]** 

8. **Acquisition of IPVideo**  
   **Q:** What is the rationale behind acquiring IPVideo?  
   **A:** The acquisition enhances Motorola's portfolio with the HALO sensor, which detects vape, smoke, and environmental factors in areas where cameras aren't permitted, such as school bathrooms.  **[MSI_3372581_16]**  Motorola plans to expand its application into healthcare, workplaces, and transit areas.  **[MSI_3372581_16]** 

9. **Partnership with Google Cloud**  
   **Q:** How does the Google Cloud partnership benefit the Alta platform?  
   **A:** Partnering with Google Cloud enhances Alta's scalability, AI capabilities, mapping, and low-latency video delivery.  **[MSI_3372581_18]**  It supports Motorola's multi-cloud strategy, providing customers with optimal performance and pricing.  **[MSI_3372581_18]** 

10. **Impact of Election Year on Outlook**  
    **Q:** How might the election year affect Motorola's business?  
    **A:** Historically, Motorola's performance has been consistent regardless of the administration.  **[MSI_3372581_15]**  While transitions may result in continuing resolutions, public safety remains a high priority, and demand is expected to stay strong.  **[MSI_3372581_15]** 

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- **Motorola Solutions raised its full-year revenue growth guidance to approximately 8%**, up from prior guidance of approximately 7%, driven by strong demand, a robust orders pipeline that is **$1 billion higher than last year**, and increased funding from state and federal sources. The company expects **continued products growth in the second half of the year**.  **[MSI_3395776_24]** ,  **[MSI_3395776_12]**
- **Operating margin expansion is now expected to be approximately 100 basis points for the full year**, up from prior expectations of 75 basis points, due to supply chain improvements, higher sales, favorable mix, and cost reductions. The company is realizing benefits from supply improvements, with a **$70 million improvement in costs** relative to semiconductors, exceeding the prior expectation of $60 million.  **[MSI_3395776_14]** ,  **[MSI_3395776_10]**
- **Video software business grew 24% in Q2**, with cloud adoption growing exponentially higher, contributing to overall expected **12% growth in the video segment**, inclusive of recent M&A. The company is gaining market share in video security and access control and expects to continue this trend, supported by strong growth in cloud offerings and investments in software, analytics, and mobile video solutions.  **[MSI_3395776_23]** ,  **[MSI_3395776_7]**

ebbb156949d4f2f4fad817e91353eb46fd6625c74893de513ce1084ca2b22fc9

Motorola Solutions Inc (MSI)

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