Zebra Technologies Corporation

Good day and welcome to the fourth quarter and full year 2024 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 fourth quarter earnings 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 and we refer you to the 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 performance are year-on-year and on a constant currency basis. This presentation will include prepared remarks from Bill Burns, our Chief Executive Officer, and Nathan Winters, our Chief Financial Officer. Bill will begin with a discussion of our fourth quarter results. Nathan will then provide additional detail on the financials and discuss our 2025 outlook. Bill will conclude with progress on advancing our strategic priorities. Following the prepared remarks, Bill and Nathan will take your questions. Now let's turn to slide four as I hand it over to Bill. Thank you, Mike.

Good morning and thank you for joining us. Our teams executed well in the fourth quarter, delivering results above our outlook. For the fourth quarter, we realized sales greater than $1.3 billion, a 32% increase compared to the prior year, and adjusted even a margin of 22.1%, a nearly 7-point increase. Non-GAAP diluted earnings per share of $4, which is more than double the prior year, and strong free cash flow. As we discussed on our last earnings call, in the third quarter, we saw demand recovery broaden, with data capture and printing returning to growth, following mobile computing's return to growth in Q2. Demand trends continue to improve in most end markets throughout the fourth quarter with the manufacturing sector lagging. North America retail was a bright spot with stronger customer year-end spending than we had anticipated. These factors, along with significant distributor destocking in the second half of last year, resulted in strong double-digit sales growth in Q4. From a profitability perspective, the operating leverage from our strong sales growth drove significant margin expansion, supporting our earnings and cash flow. As we enter 2025, our order backlog supports a solid Q1. However, we remain cautious in our outlook as our customers navigate an uncertain environment, including a dynamic global trade geopolitical, and macroeconomic backdrop. I will now turn the call over to Nathan to review our Q4 financial results and discuss our 2025 outlook. Thank you, Bill.