Zebra Technologies Corporation

Good day and welcome to the first quarter 2021 Zebra Technologies earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. Please note, this event is being recorded. I would now like to turn the conference over to Mike Steele, Vice President, Investor Relations. Please go ahead.

Good morning and welcome to Zebra's first quarter conference call. This presentation is being simulcast on our website at investors.zebra.com and will be archived there for at least one year. Slide two conveys that the forward-looking statements we make today are based on current expectations and assumptions and are subject to risks and uncertainties. Actual results could differ materially due to factors discussed in our SEC filings. During this call, we will reference non-GAAP financial measures as we describe our business performance. You can find reconciliations at the end of this slide presentation and in today's earnings press release. Throughout this presentation, unless otherwise indicated, our references to sales growth are year-over-year on a constant currency basis and exclude results from recently acquired businesses for the 12 months following each acquisition. This presentation will include prepared remarks from Anders Gustafsson, our Chief Executive Officer, and Nathan Winters, our Chief Financial Officer. Anders will begin with our first quarter results. Then Nathan will provide additional detail on the financials and discuss our revised 2021 outlook. Anders will conclude with progress made on advancing our enterprise asset intelligence vision. Following the prepared remarks, Joe Heal, our Chief Revenue Officer, will join us as we take your questions. Now let's flip to slide four as I turn the call over to Anders. Thank you, Mike.

Good morning, everyone, and thank you for joining us. Our team delivered exceptional first quarter results with strong performance across the business, resulting in record sales and profits. For the quarter, we realized adjusted net sales growth of 28% or 25% on an organic basis, an adjusted EBITDA margin of 25.3%, a 620 basis point year-over-year improvement, non-GAAP diluted earnings per share of $4.79, a 79% increase from the prior year, and strong free cash flow. Our teams executed well to satisfy a stronger-than-expected recovery in demand from smaller customers through our distribution channel and continued strong demand from large customers to digitize and automate their workflows in an increasingly on-demand economy. We realized strong broad-based demand with double-digit sales growth across our four regions, each major product and solutions category, as well as in all of our vertical end markets. We also significantly expanded profit margins, driven by favorable business mix and lower travel expenses. while at the same time we continued to invest in initiatives to drive sustainable, profitable growth. Given our momentum and pace of innovation, we are increasingly confident in our growth prospects. With that, I will now turn the call over to Nathan to review our Q1 financial results in more detail and discuss our improved 2021 outlook.