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Dec 31, 2021

Zebra Q4 2021 Earnings Report

Announced fourth-quarter and full-year 2021 results, demonstrating solid performance despite supply chain challenges.

Key Takeaways

Zebra Technologies reported a 12.2% increase in net sales for Q4 2021, reaching $1,467 million. Net income decreased by 4.0% to $191 million, while adjusted EBITDA increased by 3.6% to $319 million. The company anticipates continued growth in 2022, driven by a strong order backlog and pipeline.

Net sales increased by 12.2% year-over-year to $1,467 million.

Net income decreased by 4.0% year-over-year to $191 million.

Non-GAAP diluted EPS increased by 1.8% year-over-year to $4.54.

Adjusted EBITDA increased by 3.6% year-over-year to $319 million.

Total Revenue
$1.47B
Previous year: $1.31B
+12.2%
EPS
$4.54
Previous year: $4.46
+1.8%
Gross Margin
45.6%
Previous year: 47.2%
-3.4%
Adjusted EBITDA
$319M
Previous year: $308M
+3.6%
Adjusted EBITDA Margin
21.7%
Previous year: 23.5%
-7.7%
Gross Profit
$669M
Previous year: $618M
+8.3%
Cash and Equivalents
$332M
Previous year: $168M
+97.6%
Free Cash Flow
$1.01B
Previous year: $895M
+12.8%
Total Assets
$6.22B
Previous year: $5.38B
+15.6%

Zebra

Zebra

Zebra Revenue by Segment

Forward Guidance

The company expects adjusted net sales to increase 1% to 3% compared to the first quarter of 2021. Adjusted EBITDA margin is expected to be approximately 20%. Non-GAAP earnings per diluted share are expected to be in the range of $3.70 to $4.00.

Positive Outlook

  • Adjusted net sales are expected to increase 1% to 3% compared to Q1 2021.
  • Acquisitions and foreign currency translation are expected to have an additive impact of approximately 1 percentage point on adjusted net sales.
  • Adjusted EBITDA margin is expected to be approximately 20%.
  • Non-GAAP earnings per diluted share are expected to be in the range of $3.70 to $4.00.
  • Assumes an adjusted effective tax rate of approximately 18%.

Challenges Ahead

  • Includes approximately $60 million of premium freight expense.
  • Supply chain constraints may continue to impact ability to fully satisfy customer demand.
  • Unspecified risks associated with acquisitions and foreign currency translation.
  • The inherent difficulty of forecasting the timing or amount of various items that have not yet occurred.
  • Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

Revenue & Expenses

Visualization of income flow from segment revenue to net income