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Jul 02, 2022

Zebra Q2 2022 Earnings Report

Reported solid second quarter results, executing well in a challenging macro environment.

Key Takeaways

Zebra Technologies announced second-quarter 2022 results with net sales of $1,468 million, a 6.6% year-over-year increase. The company reported a net loss of $98 million, or $(1.87) per diluted share, inclusive of $372 million in settlement costs. Non-GAAP diluted EPS increased 0.9% year-over-year to $4.61. Adjusted EBITDA decreased 1.2% year-over-year to $321 million.

Net sales increased by 6.6% year-over-year to $1,468 million.

Net loss of $98 million, or $1.87 loss per diluted share, including $372 million in settlement costs.

Non-GAAP diluted EPS increased 0.9% year-over-year to $4.61.

Adjusted EBITDA decreased 1.2% year-over-year to $321 million.

Total Revenue
$1.47B
Previous year: $1.38B
+6.6%
EPS
$4.61
Previous year: $4.57
+0.9%
Gross Margin
45.9%
Previous year: 47.8%
-4.0%
Adjusted EBITDA
$321M
Previous year: $325M
-1.2%
Adjusted EBITDA Margin
21.9%
Previous year: 23.6%
-7.2%
Gross Profit
$674M
Previous year: $658M
+2.4%
Cash and Equivalents
$98M
Previous year: $318M
-69.2%
Free Cash Flow
$123M
Previous year: $300M
-59.0%
Total Assets
$7.39B
Previous year: $5.59B
+32.0%

Zebra

Zebra

Zebra Revenue by Segment

Forward Guidance

The company expects third quarter 2022 adjusted net sales to increase 2% to 4% compared to the third quarter of 2021. Adjusted EBITDA margin for the third quarter of 2022 is expected to be approximately 22%. Non-GAAP earnings per diluted share are expected to be in the range of $4.35 to $4.65. The Company is narrowing the range of its full year outlook for adjusted net sales growth to 4% to 6% from 2021. Adjusted EBITDA margin for the full year is expected to be approximately 22%. Free cash flow is now expected to be at least $650 million, inclusive of the anticipated $150 million of settlement and related payments.

Revenue & Expenses

Visualization of income flow from segment revenue to net income