Motorola Solutions Inc Q4 2024 Earnings Call Transcript

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

Question: Alyssa Shreves - Barclays Capital Inc. - Analyst : Hi. This is Alyssa, on for Tim. I just wanted to quickly touch base on -- with all the recent Trump administration federal spending shifts and DOGE, are you, guys, seeing any impact, in terms of customer behavior or timing of deployment? And I have one follow-up to that.

Question: Alyssa Shreves - Barclays Capital Inc. - Analyst : Okay. That's helpful. And then, just want to follow up on the Video piece. Given the 10% to 12% is inclusive of customers' move to the cloud, how should we think about if there wasn't a move to the cloud, would the growth be a point or two higher? If we didn't count those headwinds of customers moved to the cloud? How should we think about the growth rate for Video, with the move to cloud? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 13, 2025 / 10:00PM, MSI.N - Q4 2024 Motorola Solutions Inc Earnings Call

Question: Alyssa Shreves - Barclays Capital Inc. - Analyst : Thank you.

Question: Joseph Lima Cardoso - JPMorgan Chase & Co. - Analyst : Hey. Thanks for the question. Maybe just wanted to follow up on that last one and just -- maybe it's more of a clarification. But, Greg, we saw some interviews, towards the end of the year, where, essentially, post the election, you're sounding a little bit more positive about the operating environment, highlighting some of the topics and focus around police and border patrol, obviously. And, obviously, we see the rhetoric out there. But just curious, could you just dimensionalize like how tangible this is, today, in terms of, potentially, upside to spending across some of those areas of focus? And if you're actually seeing it in orders or, at least, is there any early discussions with customers that is tied into that upside, around that? And then, I have a quick follow-up for Jason.

Question: Joseph Lima Cardoso - JPMorgan Chase & Co. - Analyst : That's great, Greg. Thank you for the insights there. And then, just a quick one for Jason, on the tariffs. Can you just quantify how much of a headwind you're embedding from a tariff impact? And then, the second part of that is any way you can help us think about if you're more biased to any of the particular regions that are under the scope, here?

Question: Joseph Lima Cardoso - JPMorgan Chase & Co. - Analyst : Got it, guys. Thank you for all the color. Appreciate it.

Question: Keith Michael Housum - Northcoast Research Partners, LLC - Analyst : Good afternoon, guys. Hopefully, you know Jason, are -- can you, guys, unpack the Theatro acquisition a little bit more for us, in terms of what it brings to the table, in terms of its capabilities? And how you plan on, expanding the business, from here?

Question: Keith Michael Housum - Northcoast Research Partners, LLC - Analyst : Great. Appreciate it. And if I can just expand, Jason, on the tariff question from before? I know your commentary was that tariffs are in place, today. But it sounds like Canadian and Mexico tariffs could [come] here, really quick. Is it possible to give some context of what that, perhaps, would mean for you, guys?

Question: Keith Michael Housum - Northcoast Research Partners, LLC - Analyst : Okay. Thank you.

Question: Louis de Palma - William Blair & Company - Analyst : Greg, Jason, Jack, Mahesh, and Tim, good afternoon.

Question: Louis de Palma - William Blair & Company - Analyst : Doing well. There's been a lot of questions on DOGE, which relates to federal spending and efficiency. But I was wondering how is the local and state spending environment, right now, in the US? I think it was a year or two years ago, you said it was the strongest spending environment that you've ever seen, Greg. But how do you categorize it, now, two years later?

Question: Louis de Palma - William Blair & Company - Analyst : Thanks, Jack. And on several earnings calls and fireside chats, Mahesh, you have discussed Motorola's robust investments in AI for, like, video preventive alerts and 911 transcription and many other applications. I was wondering the LMR side , Apple has launched Apple Intelligence at the edge, does Motorola have plans to also bring AI apps to your edge radios, beyond what you already have? Is that a big focus area for the company?

Question: Louis de Palma - William Blair & Company - Analyst : Great. And are you using AI to improve the existing high-audio quality of your LMR network?

Question: Louis de Palma - William Blair & Company - Analyst : Excellent. Thanks. That's exactly what I was looking for. Thanks, Mahesh.

Question: Tomer Zilberman - BofA Securities, Inc. - Analyst : Hey, guys. Sorry I joined a little bit late. So apologies if these questions have already been asked. But looking at the P&L, looks like the product portion of your video security business actually picked up this quarter. I just wanted to see what the trends were, there, specifically around video security products?

Question: Tomer Zilberman - BofA Securities, Inc. - Analyst : Understood. And, maybe, as a follow-up, asking about backlog. More philosophically, where do you think the product portion of your backlog, not where it ends up this year, but going forward over the next few years, do you get back to a roughly $3 billion historical level? Or because there's an increased video security portion, does that have elevated levels versus historical?

Question: Tomer Zilberman - BofA Securities, Inc. - Analyst : Understood. Thank you very much.