MSI - Earnings call transcript Q2 2021 | Motorola Solutions, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon and thank you for holding. Welcome to the Motorola Solutions Second Quarter 2021 Earnings Conference Call. Today's call is being recorded.

If you have any objections, please disconnect at this time. The presentation material and additional financial tables are currently posted on the Motorola Solutions Investor Relations website.

of the will over conclusion replay three available the a after hours of addition, this be call approximately Internet. In this call address website is The www.motorolasolutions.com/investor. mode. been At in participants time, have this a all listen-only placed after [Operator Instructions] You have an today's ask opportunity presentation. to will questions now would introduce like to I Mr. Tim President Relations. Investor Vice Yocum, of Mr. your you Yocum, conference. may begin

Tim Yocum

that presentation Molloy, of materially on include the Welcome afternoon. are And and during be second review these Vice our Brown, assumptions to & filings to reconciliations Wide statements otherwise SEC. commentary, any this in Greg. will during news financial and will noted. A over Chairman Jack call and portion XXXX our cause update not reference. Annual Jason and from for Mahesh GAAP Greg Information this of for and We section along duty and Mahesh and of our risks expectations those I'll it conference at in XX-K differences with your Winkler, we'll could call, President presentation unless and and variety forward-looking factors release the These call. Services; Executive And, will such results, results President a statements Software Video. the differ with made in Mobile our earnings President Report of motorolasolutions.com/investor. These Factors earnings Saptharishi, Good news quarter including our to do Executive forward-looking turn and that in CFO; statements. Actual of call. with are during Sales in Products during Senior reports any the release undertake forward-looking Greg could current today's an non-GAAP Jack that, Risk materials XXXX Enterprise to Q&A. other CEO; World made non-GAAP comments and to on today reference the can subject based be results, Q&A and With are Vice earnings Jason the and me join CTO, We've Vice uncertainties. about number posted outlook, found and statements. Form

Greg Brown

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

the an was earnings quarter. QX per operating grew and excellent XX%, XX% First, versus share revenue prior We cash flow of year. XX%

and up operating XXX the and last versus we year margins for QX. with X% by points basis a ended of billion quarter Additionally, record backlog expanded $XX.X

our year I'll call thoughts. to final full outlook share. the over both some per demand results sales XX% for revenue up in in up and driven by and we based to center on and our our and highlights business Second, and Integration. seeing and our and saw raising LMR strong ecosystem. strong mission margins growth we're finally, and during on again the basis our integrated business performance Software LMR both by of broad-based XX% Revenue Systems across critical software. and in of you turn earnings returning was for XXX security Services expanded now basis quarter was XXX take And margins backlog segments strong technologies guidance we're our Jason operating operating before of video points security command This through points, strength in Products and in expanded growth our that momentum video and services, the value the business,

Jason Winkler

Greg. you, Thank

of to were million earnings and quarter. per to year quarter in $XXX related year, segments. Inclusive of in operating compared from related earnings year. related sales both operating tax last higher improved million, the of up This included in leverage XX% results both margins primarily higher ago and billion, share compensation XX.X% QX leverage driven GAAP $XX also leverage. XX.X% incentives to this $X.XX the quarter. employee from volume, and non-GAAP and current the of in reorganization ago $XX to to year costs Non-GAAP acquisitions. due margins and increase share compensation-related to XX.X% year from million valuation million, primarily earnings the the acquisitions million segments. higher XX.X% ago charges $XXX Non-GAAP operating by of million revenue or was sales operating sales, were lower and A FX. compared up $X.XX sales $X higher release in improved and favorable Our including year, lower was million due operating compared primarily sales quarter. in allowance of XX% increased $XXX up $X.XX due of to $XX operating expenses per earnings operating OpEx from of rate versus last up $X.XX improved $XXX QX incentive to to GAAP higher

QX Turning flow prior $XXX flow to free flows share an were cash partially in to cash was cash compared per dividends, increases with year. of share $XXX was million million These of $XXX CapEx. year in by in QX million with average allocation $XX million million flow. working and and compared at and prior $XXX price included cash operating million cash repurchases, $XXX.XX improvements, higher higher $XXX the million cash primarily sales taxes. in $XXX capital offset due for the Capital in

a we for debt quarter the outstanding long-term cloud-based our in Subsequent acquired concealed $XX invested of whose Evolve million in and Additionally, $XXX solution. $XXX notes XXXX. and new senior $XXX issued million we redeemed Openpath, control quarter million due weapons in securities powers of technology million solutions of leader we during equity detection access to end,

of up security. in and acquisitions segment our video strong XX.X% and XX%, to in and Systems prior the higher were and related up million. the sales, billion, $XX costs Integration compensation. from driven sales higher to Moving was from incentive inclusive results. Operating were by operating $X.X million $XXX growth of leverage or quarter QX LMR earnings year Revenue products XX.X% in sales improved

$XX include PXX for PXX Atlanta, the $XX PXX state $XX achievements a order. a $XX a A Some million in State order this and $X million state for large order million QX a upgrade for customer in US. our million notable PXX Marta from in police, local million device the US wins segment order and a security Kentucky video and

a federal fixed largest today. video Our from single US order customer

revenue million up last to from year. NMR driven sales, quarter the from by services, year, Moving margins leverage software. XXX million, center basis higher QX was XX% $XXX and acquisitions compensation-related gross up and inclusive growth security were in this year, from Services operating Revenue in and higher by command Software $XXX last earnings the segment. was $X also XX.X% of of Operating incentives points higher and driven million. sales, or improved video

a Some include $XX software French frame notable network worn a agreement, plate segment customer, Ohio's for with million and million services the maintenance extension recognition in with extension body PXX PXX $XX $XX customer. an MOI the US million QX federal camera wins a multi-year statewide $XX license this renewal based US million

is solution. XXX central command Additionally, we call public launched safety to closure first native case cloud suite

minimal and the software. billion saw up video while quarter, our QX was North continues International to regional the was from center million security command revenue up was impacts XX% command on center strong revenue COVID results at in XX. and $XXX during growth security also software. QX Looking $X.X America driven LMR, in Pac, EMEA video We growth growth in Asia region as navigate LMR, by XX%

and compared $XXX Ending QX and of of $XX partially was million backlog. offset to last in million growth up $XX internationally. $X.X billion, down record was North the growth ESN by with backlog by revenue on America $XXX Sequentially million LMR million in products. driven of a to recognition year, driven Moving backlog Airwave growth

LMR backlog multi-year [ph] sequentially, regions. backlog primarily both by primarily Services and $XXX in up again and by and growth Software was million was down to to million Airwave recognition driven SI million driven ESN. $XXX million compared sequentially last primarily compared $XX last for service by $XXX up revenue America contracts was backlog Products North the driven and year year, and

share, million and outlook, count a weighted approximately to of over between approximately, share and XX%, at $X.XX constraints, supply share. EPS Turning X.X% incorporates of of current rate non-GAAP $X.XX count share full XX% FX million we XX% to the of at rate EPS call we sales for assumes now non-GAAP XX% up guide per our primarily to from tax our effective increase per guidance turn A This between be Greg. $XXX year be current and $X.XX effective year per and tax full $X.XX our diluted expect would and approximately chain average the ongoing rates, from between to $X.XX to outlook an to rates. expect an prior This average and an shares assumes now to prior shares to up XX%. FX expect X% the back up X% of $XXX increased sales LMR now like $X.XX QX and approximately in with I we share. and weighted of

Greg Brown

thought few thoughts end I'd we I as Jason. Thanks, with conclude a the call.

sales, by XX% results and earnings operating excellent. as security center and the achieved our LMR our command technologies QX expanded growth well. record EPS, and software strong for margins, We operating quarter technologies grew First were video in achieved

the expect pipeline backlog growth Additionally, record to chain QX we the and for of LMR. the that that finished ending in year. Inclusive navigating primarily of we the we're quarter with supply continued challenges robust remainder drive a

and We've to security are the well demand the from pandemic our early continued customers. positioned investing seeing even these days the increased Second area, this strong. investments have demand of in we during us remains now capture video in

and leader Access proposition control acquisition video extends value just we $XX disrupting of our Control industry access billion announced the security a solutions, market. cloud-based Openpath is in our in Openpath, the Additionally,

we're As within video, technology analytics. renaming and revenue from also a security result, disaggregation our the

command to to several investments all customer device strategy And our security we're gaining Corporate XXXX control security of large video networks, base reflect and Responsibility control for looking we And the now year. access APX NEXT I'm convergence. leveraging and statewide the go across I'm which our performance. including with drive LMR we're by In finally, public footprint as in the our growth. continued and and highest ESG video look invest to future and video designed the of strong Report, software, half our market recently upgrades released installed with our access the their encouraged, center to execution traction and of to respect So of highlights safety businesses. are and I encouraged second to requirements. these In tier

our this who to Barron's sustainable to named for and forward and look and call named has further progress us doing one the of over I'm by diversity one And for proud of critically customers companies. in recognized what continue the employees, are employers work critical as been value important as Forbes, solutions as most mission turn Tim. us that who area Our of the I'll shareholders. with teams that, create to we deliver communities back now our best

Tim Yocum

Greg. Thanks,

question like one Before as to we would begin limit to possible. taking and line please callers participants to to I'd callers one question. to as the Operator, follow-up questions, on a you remind themselves remind our how many ask accommodate

Operator

question Long come first Our Barclays. from Instructions] go [Operator Please Tim ahead. from will

Tim Long

maybe little like going on Thank on how side, few market where if little up, one bids than how about are base. peace little software the could software looks could Maybe side, the I modules there's update a so a penetrating body side, with bit worn the you there'll to market bit it Thank traction more give lot two you the be and the internationally the about the then coming talk guess penetrate you wins just you further you. us suite US a you're just over just of or there. command video and Maybe next can could second kind And first, the been of you. two talk touch US a could sales the a customer little the on more apps I center years. how bit on

Greg Brown

software. center command on Yes

good make to Tim progress. to continue We

over to QX. new The a from expand Our in QX growth penetration standpoint. rate continues customers also increasing of suite

a the on I'm command pretty quarter the suite think of software on slide QX, think or to I But multiple I and is about solid customers XX%. we progress comparable fronts number continue pleased. overall We center last time the in ago. make ordering stated

Jack Molloy

Jack. to that. it's just Maybe follow on to Hello. Tim,

actually center have teams an command customers. we think I thing, standpoint an we're of have that relates think some from there other cloud the as our, environmental is to a engagement, the on-prem solution it excitement and with customer just for both software our path just our terms in I sales to

of that effective body-worn the the we looks data worn this a XX%, and there looks Tim like orders first meet XX%. to doubled at, be, we XXXX software. with talked over for actually closing be had our so looked our Tim I us think that Mobile we've grew half business, being it through able continue QX. [indiscernible] from north the to share want or off but through cameras it's early that they couple updates grown just quarters of shipments video on year north will so just of where to end, of previous for we the three of the first take half and it them we which we with like had other body

Tim Long

Thank you.

Operator

with Suisse. from Sami come Please ahead. go will next Our Badri question Credit

Sami Badri

then is, contributed us the questions. us your key maybe you started PCR. that business was of guys to how contributed you more rate growth the hoping on second and high could very was Greg, question and kind update on the And have I quarter in and I acquired you profitable revenues, you. much thank an before it on could give first, and LMR to how open integrating? give Jack Openpath much Hi, color

Greg Brown

the in of So terms raised again the we've year Sami. taking PCR step second a obviously for of you full kind time back,

we now both digits is software color product grow full But this mid-single the If SI driven year, at and year had also as you is In probably a That's for being is grow would referenced. LMR. byproduct we and a mid it's double-digit video, also level, SI look the and full strong from most services raise area our segment performance had that stronger. given quarter, in our segments, expected high-single by growth, also QX the driven great for is constrained. growth to to primarily supply digits but that the strong by stronger PCR Jason but thought

of PCR digits the think for high-single SAM half. about than stronger to think segment your product question second I'd for the but full I about the mirroring expectations QX much like is to it if So year. that, growth the overall. over about in SI and was mid

the for supply and that's not continue guidance remainder PCR. our stub revenue We to Openpath, constraints the year have to for navigate informing full profitable period, it's expectations year the full On of and year, months, this a second said $X the it's having million nickel I year, super revenue dilutive about it's in this incremental probably excited of am that, but the half of five acquisition. last and by

I cloud-based I mention and in couldn't you think the to the authentication Raj Kedzierski pleased multi-factor along don't instrumental and John was the and control. it. the. I about love team this it's access products. with leadership if leading Mahesh love with anything, want I management Mahesh edge guiding more team know around architecture. love be I the

Mahesh Saptharishi

on-prem fact within is has The an solution. we Within product as have third It control the of growing solution in connects and panels fastest to the party access appropriate. portfolios controllers portfolio access Avigilon been leaders always Avigilon. had control, one on-prem

is future good cloud The is that a see door the forward. never from user first open are in together, I Avigilon solution we where is a control standpoint have in access one control we experience place. native mobile friction well a for the first is realized users less. is solution contactless think really authorized approach. It's our and that the We locked Openpath that approach access and It complements and going going

Greg Brown

item revenue year. $X half. EPS you asked. about the this in revenue dilutive And in It's And on million just last would in $X.XX the to second

Sami Badri

you. Thank perfect. Okay,

Operator

Stanley. Our Please ahead. go with next Marshall Morgan from will come question Meta

Unidentified Analyst

question and piece, things think the video Eric also if on federal wondering maybe funding now. the an quarter their on if we we quarter. that that are and great is you talk looking congrats where enterprise federal then won, area lot you're probably [ph] deal of a federal like picking more and Thanks for stronger it of pipeline, we demand there. this some for and up when the other Meta. and at presence taking sticking about opportunities fixed last the another about enterprise talked side Maybe with was team, open on looked Is in side deals is could just our on Hi large there about that

So anything on that. Thank you.

Greg Brown

Sure.

in more year that in place. out, the ago think There I federal an created teams you from tell government have our recall opportunities opportunities government. would had a is there. way starting acquisition, federal go-to-market by So are Are if the contracts of big opportunities ripe opportunities. NDA. Yes, also there with I Pelco the the federal you There's is

So there. there's opportunities

government market of largest as growth federal government video. in overall one of three fixed the vectors part So the for the us is

second The just believe. I Eric, repeat on part can part question, of second enterprise. was of you your the

Jack Molloy

a Yes, just quarters reminder, access enterprise. our control so is roughly and business enterprise. video XX% So security three really still to

So I OpenPath access alluded to, as video Mahesh think will very control. accelerate between converged and security well, opportunities eloquently

customers and want They Our the taught us remote access they COVID want to ability monitor more that networks. more control. frictionless

marriage more I only things and doors more those enterprise open the together will up think in for of us. the two

Greg Brown

more We we was bit to video And than million, we organic XX% again quarter XX% We with we raise being plus. to XX% of Eric organic approximately as revenue fixed that. about And was all in again expect strong. little contribution growth now be, we said growth video it QX. being $XXX now in Jack XX% full-year that really for our the revenues bit a here talked government had expect and is today. a About a informing XX% of technology security million sit see about I is $XXX ago. The $XXX more, maybe to demand closer think now of little video government revenue.

the So really performance whole portfolio. by good

Unidentified Analyst

you. Awesome. Thank

Operator

Notter ahead. from will George come next Jefferies. Our Please with question go

George Notter

Hi It's then I impact also very then can talk the guys. a margin how had to wanted guess you and see Thanks constraints. about about revenue lot. Thanks might earning through here, season supply obviously chain and a do ask it forward. quarter impact, I but this much. that of theme recurring kind the what have you going

Greg Brown

Thanks question. for the

supply primarily navigating and PCR. year Greg we've around specifically around most all LMR environment mentioned the is that So, as been

chain incrementally second related have Our year guidance half. factored our are for did to those in in supply to improve QX the guidance situation contemplated and constraints second supply our navigate our half. into We've full in continuing

navigate A expect critically have suppliers, with to progress. of working important through them. we well. to The So We're handful doing teams making key of are suppliers. parts. handful We're

We have critically our is in suppliers are that us executive relationships important responders. equipment recognize that to first helping our prioritize

have we prioritization. So in good success getting

higher growth, reflection to air been the which see supply didn't on becoming navigating. challenging elongated freight in plan that is cost million would than course challenging One rise cetera, second is not are that year we'll the rate you whereby the higher more we the increases of have control we're absorbing first had, the said we $XX navigate freight, On if material which some Those increases of through P&L in growth for first every chains achieve big the material half et shorter a half, cost have volume in half. to seen small are we environment, that absorb shift driver costs cost we're significantly first-half and for side the seeing the times, more the the expected we area lead and in we've higher despite input costs material a reductions.

the isn't one we've rise where cost [ph]. that's freight So input seen

Jason Winkler

put guidance. to nice to in just to what's is necessarily on not although year improvement I the this full-year hand the that as but contemplated bow through is half combat I about, demand just think our with job team raise our we for year our around Again, it. full Jason into talked is informing I that PCR have back working the view think a a in year. do he for key think hand his QX, supply and but George, work primarily very suppliers did chain, And Yes. of any

George Notter

real full for expectations the Greg, quickly; mentioned you it. Got And the raise then, on year.

to was from you're you're tailwind that raise think But in feels or some in much Certainly, no? getting going the like guidance here. I the a sure plan. on you to of how FX is I'm had get full-year some already continue QX. that part benefit not of it

Greg Brown

take benefit much at the was Not FX full half. a much, the when the more first look year weighted you to

not as was So I QX, I the It's tailwind In and that's it a if in much approximately back million. that had first XX. think first more the it's look not half driving. tailwinds a really component, as QX $XXX we half half but like

Jason Winkler

it's the so first last second it changed those numbers, always and we time from more half So shared hasn't much been half. tailwind than

George Notter

you. thank Good,

Operator

come Silverstein question from with will ahead. go next Cowen. Our Paul Please

Paul Silverstein

you improvement are Greg. And the pandemic perspective. previously month and as the moderating ore all is just think linearity month further I had seeing that of by is increasing pandemic, ongoing out what a out of demand Thanks, or the quarter-by-quarter perhaps from further characterized you Jason, into not but proceed we

Greg Brown

Well, I double-digit represents demand QX, XX a COVID print by being demand, record mean and terms part results it in in but overall Paul, strong itself driven line backlog. to recognize it that's the X.X QX's top of in quarter being also strong revenue a large guiding is comp in of I is obviously

literally hundreds it's to see our good then but and that's XXXX. of end timeline. high and and through really step with revenue customers local customers the areas, the end X/X incrementally better strong. to state North there available take it's billions environment billion available see $XXX is the of is of other user America So for and and back, centric our and look the level. if of a comment, to funding and demand I available outlying stimulus is a money I our is other FEMA is education some and in this I environment, where demand

and growth new to So over backlog XX% products technology that driven traction at with I is in security of double-digit strong security technology is that's invested demand product lot the And QX is approximately think and video organic getting video QX and we a investment. the overall funding during is record new now in for XX% also downturn. backlog, is we're rate raised by of strong which

center new product both about talked we're cloud. new also prem APX software command continuing on and NEXT We product

control. investment inorganically cloud-based with product access New

So high there again, of in level positive challenges, want Paul, do lot half, work the and a chain these a there's is to easy saddle navigate the lot be to of supply but second in we and that I see.

Jason Winkler

the are Paul, our higher quarter of that the business video of parts the of driven it's as for part now a business. pipeline, business executing even within as in within execution our about and for QX that that's quarter XX% the year less in is example growth on and for growth backlog about and the delivering that well function outlook the on pipeline XX% organic

Greg Brown

space, particularly that's We The to the and that as opportunity X actually ability go it's selling take space. seen we pedal other the fact lot think during a doubt hired put the after COVID. in thing a months look and that that market back that to video created XX, our great to security competitors continue resources share created in the without furlough more we've of our saw we we in matter

Paul Silverstein

Jason amount albeit may federal and that's up, follow the of work on passed not just docked yet massive I not the Can pass.

allocating waiting are actual the about funds, are they responder flow. talking to for to customers Our first already you dollars agencies

Jason Winkler

don't that go-to-market end two there articulated, say so billion through state would CARES think and our money largely would is, year we et to the I cetera, by beginning absolutely in hold money transit take this $XXX in local, say don't about last from. to results the CARES with benefited money I education, the it's this year is year your available $XX printed are what even benefiting $XXX buckets for money of we of sales available in billion we I a so government billion Act organization was which multi-year and airport that is, those of Act from Paul anymore, far but stimulus just Paul conversations question way talk that the we're So even both planning. but and include that

Paul Silverstein

Got response. it. All right. Thank I appreciate you. the

Operator

next Our with from Please DiPalma William ahead. will come question Blair. go Louie

Louie DiPalma

Greg, vertical Jason, Good a can vertical talk Mahesh control market access the specifically, Greg, education and Tim. of security afternoon. invested you've with education for the it Avigilon lot the and in seems for you about acquisitive with market. control and prevalence the multitude this of grow have continue opportunity you related increased access order your importance be of with control for access do share Motorola the the and to a to gun incidents. in Is major plan that

Jack Molloy

So Louie, start my it's to I'll comments. things in think Jack. and add I have to Mahesh some will

to is had always that pointed got is every We of of First schools. with of also to reimagine access is and their have security the top, through problems federal of monies terms its safety and the control, converge in right all largest safety terms education growth kids. interest about their our safety funding. been, to been talk in is historic Greg one biggest school married about of video our there selling two convergence platform access just to radio now superintendent now school one video talked is second what our thinking of way interest, school that of we've it's vertical ability have that in security and schools but there about the an but we're the control. funding center Frontend

anything we day, is overlay add? that talks helped to there We you to opportunities. also superintendents has of just specialized a want team team that kind and us technology every together school sales Mahesh, think standpoint, accelerate put from a

Mahesh Saptharishi

concealed is weapons the are control our are think there, When you, just context Solutions launched we access what in that authorized it going of to not be risk I think Motorola a about on story. solution, of also you who key it's pose. there just but is the part which you detection you

this So complements solution really our well. Access Control

Louie DiPalma

Thanks, thanks. Great, everyone.

Operator

Our come from Northcoast ahead. Research. with Trevor Bowers go will Please next question

Trevor Bowers

taking quarter and congrats thanks on guys, for Hi question. my the

that the in it say today on share space. in looks also what mentioned would is you the market, earlier driving You like body-worn that last the camera success call taking you're and

Greg Brown

XX first an of and as But It's primarily they in the police been both throughout working body an also I beneficial But to you international terms been cameras local think think again, relationships, we've transparency We've alternative. we'll and obviously having the in want company alternative. led around So, you state think by two a and and we got to in solutions. we and large in may. accountability, worn of us years products advantage as over one a I all we want an new matter. of we for been an bear in relationships footprint capitalizing funding, trusted business market, for that's very well. the customers know, public in of terms market and safety trusted there's it's Mahesh, We've think we're on players focus things market got of get terms then opportunity we're area in-car accordingly. continue think

Mahesh Saptharishi

our mentioned previously we would other thing needs meet add Jack where they one are. that customers' this Maybe is I

along the And And well. reason really with the solution so other having both in we cloud that's win. on-premises as solution matters here

Trevor Bowers

had of sort what on go-to-market pandemic then, long-term Motorola you approach. the say And has great. is impact Okay, would

think that future of delivery do or example, entertainment expect be methods. result should efficiencies more sales we there as and less For the forward? about going How in and spending travel to a you maybe new

Greg Brown

Think pivot question. digital. Great to

get but tactical face more get matter face teams all how you we leverage of important think inside try continue to get of customers US been said only and in With are unaware terms just not in engineers, force, pivoted We've moments with and more marketing to have customers, abroad. sales we something powerful large-scale selling our going to to. all particularly that may do to customers become but not more or sales needs our that do to pivoted be digital some spend our that's engagement. sales their efficient also that's one. think it's in frontline only acumen that and government enterprise critically that's in we've fairly are the the that and we've We that truly I take grow

still about we've think time terms going think and and so time way out about about a efficient in now we've customers as I that the we traveling it of engagement be seeing legacy driven was seen teams where and that's it, think really measure we we're just don't selling to time pivot. and So and more much but our to

Trevor Bowers

a Thanks great. Okay, again. lot and congrats,

Operator

Our come will Bollin Please next ahead. Research. question with from Ben go Cleveland

Ben Bollin

think thanks on you how question. flows cycles sales perspective the center. have the when money American the amount if command taking in Greg, the how about Act spot customer for see your segments of radio, guys, the spending framing any influencing of your with do thoughts and Rescue there, you in typically different it surveillance, on the afternoon you've about it sweet be talked Plan that behavior what's might for you Yes,

Greg Brown

first of all, question. So, Ben thanks for the

think I innings year half sweet starts I multi-year this the back run. and the just in it's spot mean of early very and a

billion XX. $XX the and X connectivity through XX, runs through September for funding of airports local of $XXX is XX, and a December through runs long state it's the that billion runway. billion broadband or plus for $XX There run transit So billion

I to part So a don't for think there's going quarter the be multi-month period. clutch necessarily of

consistent strong the and it's reasonably I be going few think to next years. over

PXX provide. subscriber it service LMR allow multi-year what primarily it of helps, helps elongate I radio think actually public us and period. the contracts multi-year a refresh sustainability the suite like helps these and I that that APX over across think of It platforms to safety do NEXT we

video it and as PSEP education county state well. body center I talked flow around software and command XXX We around for can quite about whether think municipalities. frankly and helps benefits it's money think clearly video local worn the ore I fixed

more it's we think three, hard lift a have one all dimensionalize position. which I like is to it's a I favorably for to but to solutions that of the products and So benefit, and clearly

Ben Bollin

how could then, being bit are Thanks. much the give also follow-up. the recurring think how could any and about this is disaggregation interested about invoicing or recurring is either Jason, the if any on talk revenue a average product contract customers And business way traditional of variation type you the of versus and duration the XX, Slide there if to a I little businesses.

Jason Winkler

Ben. Thanks, Sure.

was for recurring includes of cetera know, up is the and business varieties is believe OE That the at significantly subscriptions, and including we total and growing, of year, was terms XX% recurring bps segment ROE. expansion pandemic, segment. believe service services, of quarter software expansion that there the now proxy in rate a and of of this as Services that's renewals, during et which you the has growing at So recurring Software even different been XXX within it services, lot I is and that revenues. This earnings positive our very at with a

only but expanding growing not So profitability.

as performing side center disaggregation, that well command digits. the that driver On software well video LMR see well as the with is same you can as mid-single is technology up a that strong from and you

Ben Bollin

Thanks, everyone.

Operator

question come Please from will with Partners. MKM next Najam Our ahead. Fahad go

Fahad Najam

my Thank question. you for taking

X-XX the flow EFG that you from the and ten us make long-term model, that correctly, software. beginning looks to calendar the chance stimulus clearly margin funding update like is opportunity see take can you're not now passive probably given all bit benefit it to so if the we're model, yet very ERA the the But like by to conservative just you eight understood it glad operating programs, expansion it's getting the [ph], the So of spending. through given the a you favorable on of XXXX Why highlighted, that in program favorable some from to backdrop I we some funding XXXX from right now.

Greg Brown

Fahad, thank you.

targeting We've we within a but not policies demand in see Delta up, strong look, going and way is and year what that the is as generally get but by in the the as that the doing So likely this XXXX, be we think variant we're popping we think pandemic year. we implications year, QX just and still supply environment, through general US, are fiscal it strong there'll of we seen a we've favorable, and time with of in where uncertainty and vaccine. gives the of different aware is environment and we're as chain, have want the very just the and a to we've we the informing strong pandemic, be over reasons time environment do into while point a be get incorporated that want next and We encouraged. is prudent this the to know and that it by and around there's seen to in Fahad to funding full that in it countries Day. we FDA hopefully is and approval remainder of you the in think get an that don't another I demand seen to all optimistic I the We're factories. good way, of to Analyst lot and mindful the be I mindful update is for through the current of large

populations herd just As environment we vaccinated And and get point are a to and where in many countries is immunity more update that we an think to give that's time. better at achieved.

think momentum of the like not I'm build the on. positioned to. for interest we're model update going to year to I se going half your per we've and So I I back not some appreciate the good but yet, got and

Fahad Najam

[indiscernible]. big business? how could is Thank is your question million. growing appreciate a video for on mobile access on in that you how faster answer. us $XXX I be that video than have it's fixed disclosing seems you It give general. sense even like about control fast Can the government I and follow-up growing

Greg Brown

year Fahad, video. revenue $XXX video We're now control Just billion in-car of on the be video body-worn we inclusive $XXX It's things. government grows $XX to security of commensurate expect two now VMS video. today first and Video; video that's million. of the to revenues. talk and access to where a that the the the market software way, about million $XXX updating about million. customers next fixed that's addressable market We and It's about that by addressable of number being cloud-based of inclusive XXXX inclusive a all,

all-in an contribution video. acquisition which it's the is acquisition amount that So Avigilon remember video of fixed video acquisition Pelco that The of technology within of we fixed the fixed is predominant number with characterize. of IndigoVision The revenue fixed video. the disaggregation

to give Just a you reminder.

Jason Winkler

Both between split video mobile. is the of our at fixed billion the what video So increased that's all the is $X level are fixed at expectations rock nicely. of is mobile year XX% growing. believe our plus at We XX% growing year the this XX% what that this is total and part and business video and

Fahad Najam

quarter. in is late XX. fast is high share like fast with is the mobile you Can How us how is mobile that growing, it

Greg Brown

the performance the things when or in and in, French strong XX% in which for growth video so the Malta more viable just terms growth, orders product this would Jack all it's organic little QX to UK look strong and bit taking and the share body-worn business growth. looking for driven or I improve market to pretty half that a like it's and first is given I alternative was, data us that's double-digit about points say body I strong MOI know continues remember, XX% worn and is of our book was talked of the XX% XX% at

Fahad Najam

Appreciate the answers. Thank you.

Operator

Jim Suva ahead. Please will with question Citi. from go next come Our

Jim Suva

COVID, turmoil Thank like through things a that. and you. such And great executing supply job time of really issues chain

two. the and in meet rollout dies think could that not installations is business to and people immunity and people we show say with how hopefully Looking mass the hopefully your let's back and do because in the could to it government with of been testing in year in just stimulus office to person. that things down ahead, get and just actually and also so whistles or way the and about all possible is possible meetings Is it center next COVID as is bells that solutions accelerate return there's hard or command the coming

Greg Brown

is half. QX be leading and the security the we're XX% approximately basically what we and full-year that's why Jim, you're XX% to in thought video and a from view would Which the driving And way. segment from technology plus guide raising products SI mid-to-mid high. performance the I the to control, that describing first half at would of and year is see access really think about I we the second it printed what as the trends. look

So of from if current anchor thinking were. of I growth an incremental you're think tenant where about we expectations

center at the rate. the software while think and LMR greater increased is industry actually component. security say I video are We're it's command second driving growing by the areas led our area those With then it's momentum. still smallest and I'd two at

also about work So to and But that. internal I and we I'm looking we've on-prem got development cloud, think organic are on forward. the cloud but offering on Jim pleased both do

and control of access LMR as security standpoint. from video being a drivers trend think more incremental a I an

Jim Suva

congratulations to and much so you Thank and you teams. again your full

Operator

This additional remarks. our Chairman Greg back to floor closing question-and-answer and over concludes turn CEO any the or Brown, for session. will I

Greg Brown

achieve. really take pleased Motorola we everybody. Solutions. my the able the to people just to the in to Listen, with all and team I'm QX's execution, results opportunity want And you I were thank Thank to and thank

produced, you of delivered, and I'm super proud you. you're you You un-flinching, were resilient

that. referenced the other in the I'm of we've think we to throes business. last this continue invest Jack is, to it, in thing, of continued do it I We year. proud COVID did

made. now benefits thought, momentum. we've to so think is our like the we're I derived momentum I from enter approximately particularly several revenue fact and services last this we I investment year in half the demonstrate. that we the pleased year of two a back the the and and that's the I the with and of will half like disposition some as video of ongoing proposition years able year the strength proud I'm in decisions where be And for increased much of video, And raise driven full by, part, second security also ago. of different the security, software were but than of our

to half. work proud do thank know we in I'm So, team. to do we a you I of to need we to got back the just what my and lot want of and everybody

you. thank So

Operator

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

Motorola Solutions (MSI) 7 Aug 212021 Q2 Earnings call transcript