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Dec 31, 2023

Zebra Q4 2023 Earnings Report

Zebra Technologies announced results impacted by broad-based softness across end markets and distributor destocking.

Key Takeaways

Zebra Technologies reported a decrease in net sales and net income for Q4 2023, impacted by broad-based market softness and distributor destocking. The company is implementing cost reduction plans and expects to return to growth in 2024.

Net sales decreased by 32.9% year-over-year to $1,009 million.

Net income decreased by 90.9% year-over-year to $17 million.

Non-GAAP diluted EPS decreased by 64.0% year-over-year to $1.71.

Adjusted EBITDA decreased by 54.1% year-over-year to $155 million.

Total Revenue
$1.01B
Previous year: $1.5B
-32.9%
EPS
$1.71
Previous year: $4.75
-64.0%
Gross Margin
44.4%
Previous year: 45.6%
-2.6%
Adjusted EBITDA
$155M
Previous year: $338M
-54.1%
Adjusted EBITDA Margin
15.4%
Previous year: 22.5%
-31.6%
Gross Profit
$448M
Previous year: $685M
-34.6%
Cash and Equivalents
$137M
Previous year: $105M
+30.5%
Free Cash Flow
-$91M
Previous year: $413M
-122.0%
Total Assets
$7.31B
Previous year: $7.53B
-3.0%

Zebra

Zebra

Zebra Revenue by Segment

Forward Guidance

The company expects net sales to decline between 17% and 20% compared to the first quarter of 2023. Adjusted EBITDA margin for the first quarter of 2024 is expected to be approximately 18%. Non-GAAP diluted earnings per share are expected to be in the range of $2.30 to $2.60.

Revenue & Expenses

Visualization of income flow from segment revenue to net income