Zebra Technologies Corporation

Good day, everyone, and welcome to Xero's fourth quarter and full year 2021 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 Xero. After today's presentation, there will be an opportunity to ask questions. Please also note today's event is being recorded. At this time, I'd like to turn the floor over to Mike Steele, Vice President of Investor Relations. Sir, you may begin.

Good morning and welcome to Zebra's fourth 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. Our forward-looking statements 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 fourth quarter and full year 2021 results. Then Nathan will provide additional detail on financials and discuss our 2022 outlook. Anders will conclude with progress made on advancing our enterprise asset intelligence vision, along with an updated view of our served market opportunity and revised long-term sales outlook. 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 solid fourth quarter results in an exceptionally challenging supply chain environment. For the quarter, we realized adjusted net sales growth of 12% or 10% on an organic basis. Adjusted EBITDA of $319 million, a 4% year-over-year increase. An adjusted EBITDA margin of 21.7%, a 180 basis point decrease. Non-GAAP diluted earnings per share of $4.54, a 2% increase from the prior year. And strong free cash flow. Customer demand is stronger than ever for our solutions that digitize and automate workflows. We realized sales growth across all four regions supported by exceptional strength in mobile computing, with particularly strong growth in Asia Pacific and Latin America. Supply chain constraints limited us from fully satisfying our customer demand, particularly for certain data capture and printing offerings. Our teams have been aggressively working to mitigate the impact of the unprecedented industry-wide supply chain challenges by securing new sources of supply, utilizing alternative modalities of transportation, and expediting customer shipments. Premium freight costs exceeded our expectations and significantly weighed on gross margin, which was partially offset by higher service and software margin. We also scaled operating expenses while continuing to invest in initiatives to drive sustainable, profitable growth. Our solid fourth quarter performance closed an outstanding full year 2021 in which we generated record sales, EBITDA margin, earnings per share, and free cash flow. With that, I will now turn the call over to Nathan to review our Q4 financial results in more detail and discuss our 2022 outlook.