Motorola Solutions Inc at JPMorgan Global Technology, Media and Communications Conference Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Joe Cardoso - JPMorgan - Analyst : <_ALACRA_META_ABSTRACT>So yeah, I wanted to actually get started off, first question here, obviously, we're all in Boston at the JPMorgan Conference, but Motorola is actually hosting their own summit in Texas right now. So maybe for everyone in the room here today, maybe we can just start off with giving us a quick preview on what you're thinking the most important topics and products that your team is focusing on heading into your summit in Texas.

Question: Joe Cardoso - JPMorgan - Analyst : No, great to hear and definitely have some questions across all those elements to come up. But maybe before we go there, let's just take a step back. Wanted to talk maybe just a couple questions on the macro just given -- obviously, it's been topical year-to-date. So maybe just starting off, obviously, Motorola, completely unique. It's particularly in our coverage in that it's one of the few companies exposed to the public safety vertical. So maybe can you just provide some historical context on how these customers have behaved and spend during uncertain macro conditions? And how does that compare to the behavior you're observing today given the current backdrop?

Question: Joe Cardoso - JPMorgan - Analyst : Maybe just a quick follow up there, obviously, you mentioned the 30% exposed to the kind of the non-public safety verticals. But can you just flesh out as well as how the conversations are happening with your international customers just given some of the rhetoric there has been maybe just given kind of the geopolitical landscape. There's been some negative sentiment building, but perhaps maybe it's not necessarily transitioning into any impact on demand.

Question: Joe Cardoso - JPMorgan - Analyst : No, makes sense. Last one on the macro before we move on to more interesting things probably.

Question: Joe Cardoso - JPMorgan - Analyst : Fair enough. So last one, obviously, on the recent earnings call, you quantified the impact of the tariff that you guys are embedding into the model. But maybe moving a little bit further ahead, can maybe you take some time and just outline the various offset Motorola has at its disposal, like what are you guys looking into. And maybe more importantly, within the actions that you have in front of you, which ones are you prioritizing? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 13, 2025 / 2:10PM, MSI.N - Motorola Solutions Inc at JPMorgan Global Technology, Media and Communications Conference

Question: Joe Cardoso - JPMorgan - Analyst : No, very clear. All right, so maybe switching gears, I wanted to shift to digital transformation in the public safety vertical and maybe using command center as kind of a springboard for this topic given that there's a lot of interesting things happening there on the technology front. When we consider some of the offerings there, like 911 call handling dispatch records. Initial thought is most of these products are in use today, right? But maybe we can start off and you can share some insight for us like when you think about your current customer base, the technology that they're actually using to service these applications, like where are we in their technology footprint?

Question: Joe Cardoso - JPMorgan - Analyst : No, makes sense. The other thing that I wanted to touch on here, particularly on the digital transformation story is a lot of the technology you guys are bringing isn't necessarily replacing existing solutions that are being leveraged in the market. It's actually targeting new addressable areas. A lot of it, at least, today has been kind of around workflow and enhancing officers' dynamics there and stuff like that. I guess, when we think about these new technologies or these new applications that you guys are delivering, like what's the reception from the customers? And then, the other -- second leg to this is, how are they digesting this within the existing budget framework, right? Are you seeing them having to cannibalize certain areas or are you actually seeing new budget being allocated for these newer applications or these new technologies that you guys are bringing to market?

Question: Joe Cardoso - JPMorgan - Analyst : No, got it. Maybe follow up there, and we can dive right into APX NEXT. Obviously, you can just mention kind of hitting like the 10% threshold in terms of install based penetration there. One question I always get from investors or maybe the commentary from investors is comparing the APX NEXT product cycle to like a smartphone replacement cycle, where there's probably more limited visibility. Can you maybe touch on what your visibility is? I know, obviously, you talked about it, they can push out delay products in terms of adoption from a customer base, but maybe how structural is the replacement cycle for LMR devices or like a device like APX NEXT across these customers? And what's your visibility into these upgrade cycles and customer level?

Question: Joe Cardoso - JPMorgan - Analyst : No, got it. And you mentioned the app subscription, you compared it to kind of the app store there. Obviously, Jason provided the $300 per device per year metric on the earnings call, which is -- obviously grateful for it. But maybe you can help us walk through where that $1 per device started. And where do you think it can go, particularly, obviously you mentioned SVX as contributing to that.

Question: Joe Cardoso - JPMorgan - Analyst : So can you kind of tell us where we were and where we're going relative to that content opportunity?

Question: Joe Cardoso - JPMorgan - Analyst : Got it. And can you just talk about the stickiness of the subscription? And I know you talked about it already or mentioned it that it's very sticky. One, can you just touch on it again? Second thing is, obviously, you talked about 2 million installed base, but that also includes EMS, firefighters, etc. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 13, 2025 / 2:10PM, MSI.N - Motorola Solutions Inc at JPMorgan Global Technology, Media and Communications Conference

Question: Joe Cardoso - JPMorgan - Analyst : Right. Yeah. So that's exactly what I wanted to touch on. One is how you're thinking about penetrating additional sub-segments within that install base. And then the second layer of that is obviously, you have PCR devices, do you guys think there's an opportunity around those as well potentially down the line?

Question: Joe Cardoso - JPMorgan - Analyst : Got it. Maybe actually just switching and focusing on SVX. Obviously, you guys talked about the synergies with APX NEXT, but SVX in its own right is a good product going after a market where maybe you guys have more headroom there. How are you thinking about that product, the synergies going the opposite way in terms of positioning, you guys are in the body camera market where you guys have headroom there to gain share. How are you feeling about the competitive position?

Question: Joe Cardoso - JPMorgan - Analyst : Makes sense. Let me just pause here, see if there's any questions in the room. Just wait for the mic, please. Unidentified Participant 1 So you mentioned the noise -- I'm just using this as an example, you mentioned the noise suppression, the background noise suppression. Just intuitively, I suspect that's probably for an urban environment because there's probably more background noises you're probably contending with but that's just me speculating. Do these applications then have sort of a different uptake rates and more complex, more urban environments versus more rural environments? And I guess, when I think about that, what is the breakdown of how policing budgets breakdown between large urban areas versus the rest of the world?

Question: Joe Cardoso - JPMorgan - Analyst : Any other questions? Okay, maybe taking it back to video, maybe from an overall perspective, recently we saw growth bias itself to more towards software after strong contributions from both product and software probably over the last five years. I guess, as you think about the growth vectors going forward, particularly in the video, is SVX a product that can kind of re-accelerate the product growth there? Or do you still think, going forward, I think even on the last earnings call, I think it was characterized as software should be the larger contributor going forward. So how are you thinking about that dynamic between product and software and contributions to growth for video?

Question: Joe Cardoso - JPMorgan - Analyst : Got it. And Tim clarified 12% for Command Center.

Question: Joe Cardoso - JPMorgan - Analyst : No, that's why Tim is here.

Question: Joe Cardoso - JPMorgan - Analyst : With that, guys, we'll wrap it up. We're out of time. Thanks, Greg. Thanks, everyone, for joining today.