Zebra Technologies (ZBRA) 46th Annual William Blair Growth Stock Conference summary

Market positioning and growth strategy

• Maintains leadership in mission-critical workflows, supporting 80% of Fortune 500 companies and operating in 180 countries.

• Positioned at the center of durable growth trends like automation, digitization, and AI, targeting 5%-7% organic growth over the cycle.

• Operates in two segments: Connected Frontline Solutions and Asset Visibility & Automation, with significant revenue from both.

• Focuses on innovation in machine vision, RFID, and mobile computing, with recent acquisitions expanding capabilities.

• Sees strong opportunities in Asia Pacific and Latin America, and across diverse end-markets including retail, manufacturing, T&L, and healthcare.

Technology and product innovation

• New mobile computing platform integrates embedded RFID and AI capabilities, enabling new use cases and productivity gains.

• Acquisitions of Photoneo (3D machine vision) and Elo Touch (touchscreen, self-service kiosks) enhance product suite and differentiation.

• Portfolio enables real-time visibility, data capture, and automation across the supply chain, supporting complex customer needs.

• Leverages a global partner network of 10,000+ to deliver endpoint solutions and expand reach.

• Unified software stack from Elo acquisition allows seamless integration of fixed and mobile screens for retail and QSR customers.

Financial performance and capital allocation

• Capital-light business model supports strong margins, free cash flow, and disciplined capital allocation.

• Invests 9%-10% of sales in R&D, focusing on RFID and machine vision.

• Repurchased over $800 million in shares over the past three quarters, balancing investment and shareholder returns.

• Guidance for 2024 is 5% organic growth with incremental margin and solid free cash flow.

• Exited robotics business and mitigated tariff and FX headwinds, contributing to margin resilience.