Motorola Raises Guidance, Q2 2023 Financial Result Examined
Motorola raised its guidance for the second time this year (see Motorola Q1 2023 Financial And Avigilon Results Examined).
Inside this note, we examine Motorola's financials, Q1 2023 earnings call, comments from Motorola's executives, and Motorola's position compared to other video security manufacturers.
For more on Motorola's business, see:
- Motorola: Ava and Openpath Become Avigilon "Alta", Avigilon Becomes "Unity"
- Motorola 2022 Results And 2023 Financial Outlook Examined
- Motorola Speaks on Security / Surveillance Acquisition Strategy
Q2 **** *****
******** ******** ***** ** $*.* ******* in ** ****, * **% ****** YoY. *** ***** ******** *** ****** control *******, ***** ***** ** ****** 20% ** *** ***** ********, *** up **% ***.
Increased ****** ***********
*** ******* *** ******** * ****** operating ******** ****** **** *******. *** non-GAAP ********* ******** ****** *** ~**% in ** ****, * *.* ********** point ******** ***. *** ******* ********* that ****** ***** *******, ***** ****** material *****, *** ******** ********* ******** drove *** ****** ******.
Raising **** ********
******** ****** *** ******** **** *******, now ********* **** ******* ** ** in *** ***** ** $*.*** - $9.9 *******, ** **** *** ***** guidance ** $*.*** - $*.*** *******. Also, ******** ** ******* ****** ************ by *.** ********** ******. ********'* *** Jason ******* ********* *** *******'* ********* for ********** *** ********, ********* ******** backlog ***********, ***** ************* *****, *** pricing ***********:
*** ******* ** ************* ******, ****** by ****** ******** ******. *** ***** on *** *******pipeline *** ****** ***** ***********, ** ****** ******* ** ****** ****** going forward.
************, *** ********lower **** ******* ** ************** coupled with the pricing *********** in our own portfolio that were implemented in the second half of last year are driving the significant **** **** ****** ********* ** ************* *** ***** ******. [Emphasis added]
H1 **** *****
******** *********** $*.* ******* ** ***** in *** ***** **** ** ****, a ~**% ****** ***. *** *******'* video ******* *********** $*** ******* ** sales ** *** ***** **** ** 2023, * **% ****** ***.
**** **** ********'* ***** ******** ** pace *** $*.* ******* *** *** of ****, ******* ** ***** ** Axis (********* ** *** **** **** this ****).
Stable ****** ** ****** *****
**********, ******** ******** ****-****, *** *** sales ****** ** ~**% ** **** 2021 *** ****.
Improved **** ******
******** ****** ****** *** ********:
*****’* ******** *** ****** **** *** Baa2 **** ****. **** ****** ****** rating *********** *** ******** ** *** balance *****, ********* *** ****** ********* position, *** ******** **** ******** *******, significantly ******** ******* ******, ***** **** a ***** ****** ** ************ ******* earnings *** **** ****.
***************** *********** **** **** ****** **** ** *** **** ** take *** ****. *******, ****** * better **** ****** *** ** ******* for *** ******* ** ** **** aggressive ** *********, **** ** *** constant *&* **********.
Stock ***** ** **% ***, **** *% *****
********'* ***** *** **** ~*% ***** the ****** ****** *****. *** *******, its ***** ** ** **% **** to **** (***** *****)
Reference ** **
**** ********* ********* ******* ***** ** this ****, ******** *** **** ***** began **** * ***** *** ************ pitch:
** ********** ** *** *** ********* impact ** ***** **** ** *** customers **** * *** ***** *** when ** ******** ******** *** *** AI ************. *** **’** **** *** continue ** *** **** ********** ******* opportunity *** **** *** ******** *** our *********.
** ***** **** ********** ** ***** an ********* **** ** *** ********* to **** **** *********** **** **** actively ********* **** ***** *** ******** humans **** ********* ********* ******* ** assisting * *** **** **** *** live *********** ******** ** ************* ********* evidence, ***** ************ ******* ******** *****, which *** **** **** ***** ***** also ********* ******* *** ***** ********.
** **** ******** ** ******* *** our ********* **** ******* ******, ********, and ******. **** *** ******* *********** and **** *********, **’** **** ****-********** in **** *****, *** ** ****** to *** ********* ******** ** ***** technologies **** ****** ******, ***********, *** private ************* ***** *** * **** proactive ******** ** ****** *** ********.
** ** *** *** *** *********** impact ** ********** ** (*.*., *******, Bard, ***.) ******** ** ******** / Avigilon.
Updates ** *** **** ****** ****** ***********
********'* ********* *********** **** ********* **** *** company ** *********** *** ******** *********** **** ****** ********** ***********, *** ******** ********** ******:
**’** *********** **** **** ***********, ***** now **** **** ** **** *** video *** ****** ******* ****** ** well. ** ******** **** *** ***** into ****** ****** **** ***********. *** then **** *** ***** [************** *****] together ******** ****** ** ** ******* different ********* ** *** ** ****.
*********** ********* *** *********** **** **** other ** ****. ** *** **** at *** ******* **** **** ** have ** *****, ** *******, *-** schools **** ***** *** ****** *******, we’re ********** *** ** **** ** bringing **** ******** ** **** ****** between ****** ****** *** ********** ******** gets *****.
Video ******** ******
********'* *** **** ****** ******* ** the ****** ** *** ******** ** video ******** *** *** **** *** K-12 *** *** ****** ******* ** growing ****** **** *** ******* ***** security ******:
*-** ** – *****’* ****** *** technologies. **’* ***** ******** *** ****** control. *** ********* ** *** **** of ****** ********,we’ve **** ** ************ **** *** ****, Avigilon Alta, which is cloud, but we’ve also got larger school districts that continue to buy Unity.
*** *-** ********* ** *******, ** put *** ****** ** ****our ***** ******** ** ******* [**] **%. *-** *** *** *** ****** ** ********** **** ****** *****. It did last year, and it continues to grow through the first half of this year very robustly. I think some of that’s the beneficiary of ARPA funding, but I think a lot of it is really much more – it’s much more secular around school security and that it’s getting prioritized over everything else.
Competitor ********
**** ***** *****-***** *********,******** ****, *** ****** *** ********** * *** ********** ** *******. For **** **** ******** ****** *******, please *********** ** * ******* - ******, Rhombus, *** *******,******* *********** ********,******* ****** ** ***** ******* **** Genetec
*** ***** ****** ******* ********* **** Motorola, *** *** *********: