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Jul 01, 2023

Zebra Q2 2023 Earnings Report

Second quarter results were impacted by softening demand and more cautious customer spending.

Key Takeaways

Zebra Technologies' second quarter results were impacted by softening demand and cautious customer spending, particularly in retail and logistics. However, profit margin was higher than expected, enabling the company to achieve its EPS outlook. The company is revising its outlook downward but remains confident in its ability to benefit from long-term trends.

Net sales decreased by 17.3% year-over-year to $1,214 million.

Net income was $144 million, with diluted EPS of $2.78.

Non-GAAP diluted EPS decreased year-over-year to $3.29.

Adjusted EBITDA decreased year-over-year to $257 million.

Total Revenue
$1.21B
Previous year: $1.47B
-17.3%
EPS
$3.29
Previous year: $4.61
-28.6%
Gross Margin
47.9%
Previous year: 45.9%
+4.4%
Adjusted EBITDA
$257M
Previous year: $321M
-19.9%
Adjusted EBITDA Margin
21.2%
Previous year: 21.9%
-3.2%
Gross Profit
$581M
Previous year: $674M
-13.8%
Cash and Equivalents
$68M
Previous year: $98M
-30.6%
Free Cash Flow
-$144M
Previous year: $123M
-217.1%
Total Assets
$7.46B
Previous year: $7.39B
+1.0%

Zebra

Zebra

Zebra Revenue by Segment

Forward Guidance

The Company expects third quarter 2023 net sales to decrease between 30% and 35% compared to the prior year. Adjusted EBITDA margin for the third quarter of 2023 is expected to be between 10% and 12%. Non-GAAP diluted earnings per share are expected to be in the range of $0.60 to $1.00.

Revenue & Expenses

Visualization of income flow from segment revenue to net income