Zebra Technologies Corporation

Good day and welcome to the second quarter 2022 Zebra Technologies Earnings Conference Call. All participants will be in 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 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. 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 second quarter results. Then Nathan will provide additional detail on the financials and discuss our revised 2022 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 solid second quarter results in a challenging macro environment. Over the quarter, we realized sales growth of nearly 7%, an adjusted EBITDA margin of 21.9%, a 170 basis point decrease, and non-GAAP diluted earnings per share of $4.61, a 1% increase from the prior year. Customer demand remains strong for our solutions, which digitize and automate workflows. We realized double-digit sales growth in EMEA, Asia Pacific, and Latin America, and a slight decline in North America on strong prior year comparisons. We realized growth across all major offerings, including printing, where we recovered nicely from a challenging Q1. Our healthcare, manufacturing, and retail and e-commerce end markets each grew faster than the corporate average. Our team successfully navigated the China COVID lockdowns and our actions to redesign certain products and secure long-term purchase agreements enabled us to generate more supply, particularly for printers. We also scaled adjusted operating expenses to drive profitability while continuing to prudently invest in our growth initiatives. Overall, we are pleased that our second quarter sales performance was near the high end of our expectations and EPS exceeded our guidance range as our team executed well on our efforts to mitigate supply chain challenges. With that, I will now turn the call over to Nathan to review our Q2 financial results in more detail and discuss our revised 2022 outlook.