Slide 1: Zebra Technologies Third Quarter 2024 Results
Zebra Technologies Third Quarter 2024 Results October 29, 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 Q3 Summary 01 Bill Burns, CEO Q3 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: Third Quarter 2024 Summary
Q3 Summary Third Quarter 2024 Summary (1) • Delivered sales and earnings results above our outlook • Sales $1,255M, a 30.6% organic sales increase o Double-digit growth across all major product categories, vertical end markets and regions o Services and Software grew modestly • Adjusted EBITDA Margi
Slide 5: Agenda
Agenda Q3 Summary 01 Bill Burns, CEO Q3 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: Third Quarter P&L Summary
Q3 Financials Third Quarter P&L Summary(1) In millions, except per share data 3Q24 3Q23 Change SEGMENT ORGANIC SALES GROWTH(2) Net Sales $1,255 $956 +31.3% • Asset Intelligence & Tracking +25.8% • Enterprise Visibility & Mobility +33.0% Organic Net Sales Growth(2) +30.6% $616 $428 +43.9% REGIONAL OR
Slide 7: Cash Flow & Balance Sheet
Q3 Financials Cash Flow & Balance Sheet Cash Flow: YTD 3Q24 Strong Liquidity Position: 3Q24 • Free cash flow of $666M, $859M higher • $676M cash & cash equivalents o Working capital improvement o Stronger operating performance • $2.2B total debt on balance sheet o Lower income tax payments • 1.6x ne
Slide 8: Outlook & Assumptions
2024 Outlook Outlook & Assumptions 4Q24 FY24 • Sales growth between 28% and 31% YoY • ~ 8% sales growth (based on Q4 outlook) ~ 1 percentage point favorable impact from FX ~ 50 basis point favorable impact from FX • Adjusted EBITDA margin approximately 22% • Adjusted EBITDA margin approximately 21%
Slide 9: Agenda
Agenda Q3 Summary 01 Bill Burns, CEO Q3 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 Our Vision Zebra Digitizes & Automates the Front Line of Business Purpose-Built Hardware + Software + Cloud Analytics ZEBRA TECHNOLOGIES 10
Slide 11: Enabling Improved Outcomes Across Our End Markets
Advancing Our Vision 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 Un
Slide 12: Opportunity Across Our End Markets
Advancing Our Vision Opportunity Across Our End Markets Market Served Longer-Term Opportunity • Technology equipped front-line workers to drive productivity and satisfaction Retail & Ecommerce • Reimagining point-of-sale and solutions to address shrink • Ecommerce growth with shorter lead time expec
Slide 13: Agenda
Agenda Q3 Summary 01 Bill Burns, CEO Q3 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 Growth Reconciliation
GAAP to Non-GAAP Organic Net Sales Growth (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