Slide 1: Zebra Technologies First Quarter 2024 Results
Zebra Technologies First Quarter 2024 Results April 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 Q1 Summary 01 Bill Burns, CEO Q1 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: First Quarter 2024 Summary
Q1 Summary First Quarter 2024 Summary (1) • As expected, continued demand softness across our end markets • Sales $1,175M, (16.8)% organic sales decline o Broad-based declines across all regions and major product categories, with relative outperformance in mobile computing o Services & Software a br
Slide 5: Agenda
Agenda Q1 Summary 01 Bill Burns, CEO Q1 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: First Quarter P&L Summary
Q1 Financials First Quarter P&L Summary(1) In millions, except per share data 1Q24 1Q23 Change $1,175 $1,405 (16.4)% SEGMENT ORGANIC SALES DECLINE(2) Net Sales • EVM Segment (11.8)% • AIT Segment (25.3)% Organic Net Sales Decline(2) (16.8)% Adjusted Gross Profit $565 $668 (15.4)% REGIONAL ORGANIC SA
Slide 7: Cash Flow & Balance Sheet
Q1 Financials Cash Flow & Balance Sheet Cash Flow: 1Q24 Strong Liquidity Position: 1Q24 • Free cash flow of $111M, $203M higher YoY • $127M cash & cash equivalents o Working capital improvements o Lower incentive compensation and tax payments • $2.1B total debt on balance sheet o Partially offset by
Slide 8: Outlook & Assumptions
2024 Outlook Outlook & Assumptions 2Q24 FY24 - Raising Sales and Profitability Outlook • Sales decline between 1% and 5% YoY • Sales growth between 1% and 5% YoY o ~ 50bps favorable impact from FX o Negligible impact from FX • Adjusted EBITDA margin slightly above 19% • Adjusted EBITDA margin ~ 20%
Slide 9: Agenda
Agenda Q1 Summary 01 Bill Burns, CEO Q1 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 Transforming Workflows: Purpose-Built Hardware + Software + Cloud Analytics Real-Time Actionable Insights Our solutions remain essential to our customer’s operations and we are well positioned to benefit from secular trends to digi
Slide 11: Zebra Optimizes Workflows for the On-Demand Economy
Advancing EAI Zebra Optimizes Workflows for the On-Demand Economy Trusted Strategic Partner to Industry Leaders Retail & Transportation E-Commerce & Logistics Manufacturing Healthcare Other Markets Elevated Customer Enhance Worker Productivity Production Throughput Safer Patient Outcomes Critical Co
Slide 12: Attractive Long-Term Growth Opportunities Across Our End Markets
Advancing EAI Attractive Long-Term Growth Opportunities Across Our End Markets Market Opportunity Served • Improve profitability of e-commerce order fulfillment from stores Retail & • Enhance associate and customer experiences to drive preference and growth Sales Mix Ecommerce • Reimagining checkout
Slide 13: Agenda
Agenda Q1 Summary 01 Bill Burns, CEO Q1 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 Reconciliation
GAAP to Non-GAAP Organic Net Sales (Unaudited) Decline 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