Slide 1: Zebra Technologies Second Quarter 2024 Results
Zebra Technologies Second Quarter 2024 Results July 30, 2024
Slide 2: Safe Harbor Statement
Safe Harbor Statement Statements made in this presentation which are not statements of historical fact are forward-looking statements and are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Actual results may differ from those expressed or impli
Slide 3: Agenda
Agenda Q2 Summary 01 Bill Burns, CEO Q2 Financials and 2024 Outlook 02 Nathan Winters, CFO Advancing Enterprise Asset Intelligence 03 Bill Burns, CEO Q&A 04 Bill Burns, CEO Nathan Winters, CFO ZEBRA TECHNOLOGIES
Slide 4: Second Quarter 2024 Summary
Q2 Summary Second Quarter 2024 Summary (1) • Delivered sales and earnings results above our outlook • Sales $1,217M, (0.3)% organic sales decrease o Double-digit growth in Mobile Computing, offset declines across other major product categories o Services and Software grew modestly o Regional perform
Slide 5: Agenda
Agenda Q2 Summary 01 Bill Burns, CEO Q2 Financials and 2024 Outlook 02 Nathan Winters, CFO Advancing Enterprise Asset Intelligence 03 Bill Burns, CEO Q&A 04 Bill Burns, CEO Nathan Winters, CFO ZEBRA TECHNOLOGIES
Slide 6: Second Quarter P&L Summary
Q2 Financials Second Quarter P&L Summary(1) In millions, except per share data 2Q24 2Q23 Change SEGMENT ORGANIC SALES (DECLINE) GROWTH(2) Net Sales $1,217 $1,214 +0.2% • Asset Intelligence & Tracking (14.4)% • Enterprise Visibility & Mobility +8.2% Organic Net Sales Decline(2) (0.3)% REGIONAL ORGANI
Slide 7: Cash Flow & Balance Sheet
Q2 Financials Cash Flow & Balance Sheet Cash Flow: 1H24 Strong Liquidity Position: 2Q24 • Free cash flow of $389M, $533M higher YoY • $411M cash & cash equivalents o Lower tax payments o Working capital improvement • $2.2B total debt on balance sheet o Proceeds from interest rate swaps • Net-debt-to
Slide 8: Outlook & Assumptions
2024 Outlook Outlook & Assumptions 3Q24 FY24 • Sales growth between 25% and 28% YoY • Sales growth between 4% and 7% YoY o ~ 1 percentage point favorable impact from FX o 50 basis point favorable impact from FX • Adjusted EBITDA margin 20% to 21% • Adjusted EBITDA margin 20% to 21% • Non-GAAP dilute
Slide 9: Agenda
Agenda Q2 Summary 01 Bill Burns, CEO Q2 Financials and 2024 Outlook 02 Nathan Winters, CFO Advancing Enterprise Asset Intelligence 03 Bill Burns, CEO Q&A 04 Bill Burns, CEO Nathan Winters, CFO ZEBRA TECHNOLOGIES
Slide 10: Zebra Digitizes & Automates the Front Line of Business
Advancing EAI Zebra Digitizes & Automates the Front Line of Business Purpose-Built Hardware + Software + Cloud Analytics ZEBRA TECHNOLOGIES 10
Slide 11: Transforming Workflows Across the Supply Chain
Advancing EAI Transforming Workflows Across the Supply Chain ~ 30 Touchpoints Factory Warehouse Store Last Mile Home ZEBRA TECHNOLOGIES 1111
Slide 12: Enabling Improved Outcomes Across Our End Markets
Advancing EAI Enabling Improved Outcomes Across Our End Markets Retail & Transportation Manufacturing Healthcare Other Markets E-Commerce & Logistics Elevated Customer Enhance Worker Production Throughput Patient Safety Critical Communications Experience Productivity Operational Excellence Unified S
Slide 13: Agenda
Agenda Q2 Summary 01 Bill Burns, CEO Q2 Financials and 2024 Outlook 02 Nathan Winters, CFO Advancing Enterprise Asset Intelligence 03 Bill Burns, CEO Q&A 04 Bill Burns, CEO Nathan Winters, CFO ZEBRA TECHNOLOGIES
Slide 14: Q&A
Q&A ZEBRA TECHNOLOGIES
Slide 15: Appendix
Appendix ZEBRA TECHNOLOGIES 15
Slide 16: Use of Non-GAAP Financial Information
Use of Non-GAAP Financial Information This presentation contains certain Non-GAAP financial measures, consisting of “adjusted net sales,” “adjusted gross profit,” “adjusted gross margin,” “EBITDA,” “Adjusted EBITDA,” “Adjusted EBITDA margin,” “Adjusted EBITDA % of adjusted net sales,” “non-GAAP net
Slide 17: GAAP to Non-GAAP Organic Net Sales (Decline) Growth Reconciliation
GAAP to Non-GAAP Organic Net Sales (Unaudited) (Decline) Growth Reconciliation ZEBRA TECHNOLOGIES 17
Slide 18: GAAP to Non-GAAP Gross Margin Reconciliation
GAAP to Non-GAAP Gross Margin Reconciliation ZEBRA TECHNOLOGIES 18
Slide 19: GAAP to Non-GAAP Net Income Reconciliation
(In millions, except share data) GAAP to Non-GAAP Net Income Reconciliation (Unaudited) ZEBRA TECHNOLOGIES 19
Slide 20: GAAP to Non-GAAP EBITDA Reconciliation
GAAP to Non-GAAP EBITDA Reconciliation ZEBRA TECHNOLOGIES 20
Slide 21: GAAP to Non-GAAP Free Cash Flow Reconciliation
GAAP to Non-GAAP Free Cash Flow Reconciliation (In millions) (Unaudited) ZEBRA TECHNOLOGIES 21
Slide 22: About Zebra
About Zebra Zebra (NASDAQ: ZBRA) empowers the front line of business in retail, manufacturing, transportation and logistics, healthcare, and other industries to achieve a performance edge. We deliver industry-tailored, end-to-end solutions that intelligently connect people, assets and data to help o