Zebra Technologies Corporation

Good day and welcome to the CEPRA second quarter 2021 earnings results 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. To ask a question, you may press star, then one on a touchtone phone. To withdraw your question, please press star, then two. 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 second 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 of 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 second 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 turn to slide four as I hand it over to Anders.

Thank you, Mike. Good morning, everyone, and thank you for joining us. Our team delivered exceptional second quarter results with strong performance across the business resulting in record sales and profits. For the quarter, we realized adjusted net sales growth of 44%, or 40% on an organic basis. An adjusted EBITDA margin of 23.6%, a 530 basis point year-over-year improvement. Non-GAAP diluted earnings per share of $4.57, a nearly 90% increase from the prior year. and strong free cash flow. Despite ongoing industry-wide supply chain challenges, our teams successfully satisfied stronger than expected demand from customers, both direct and through our distribution channel. Similar to Q1, we realized robust broad-based demand with double-digit sales growth across all four regions, each major product and solutions category, as well as in all of our vertical end markets. Our customers continued to digitize and automate their workflows with a sense of urgency in the increasingly on-demand global economy. We also significantly expanded profit margin across our business, more than offsetting escalating global supply chain costs. We also continued our balanced approach to scaling operating expenses while investing in initiatives to drive sustainable, profitable growth. With that, I will now turn the call over to Nathan to review our Q2 financial results in more detail and discuss our improved 2021 outlook.