Zebra(ZBRA)2025-05-30 15:00Financial Data and Key Metrics Changes - Zebra Technologies reported revenues of $5 billion, indicating a recovery from the pandemic period surge and subsequent demand digestion, with broad-based growth across its portfolio [8][11][12] - The company anticipates a long-term growth rate of 5% to 7%, with core product portfolio growth at 4% to 5% and faster growth in adjacent markets like RFID and machine vision [14][18][19] Business Line Data and Key Metrics Changes - The company has seen double-digit growth in the first quarter across all vertical markets, although manufacturing is recovering more slowly compared to other segments [12][13] - Zebra's core product portfolio includes mobile devices, scanners, and printing solutions, with new growth areas in robotics and AI-enhanced retail software [15][18][19] Market Data and Key Metrics Changes - Zebra serves a diverse customer base, including over 80% of Fortune 500 companies, and has maintained strong relationships across various sectors such as retail, transportation, logistics, healthcare, and manufacturing [8][12] - The company has noted that while global trade uncertainties are on customers' minds, they have not significantly altered buying behavior [12][67] Company Strategy and Development Direction - Zebra is focused on profitable growth, investing in R&D (approximately 10% of revenue) to enhance its core offerings and expand into new markets like RFID and robotics [62][63] - The company aims to increase recurring revenue from software and services, which currently represents about 25% of its business [59][61] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver the projected growth rate despite past fluctuations due to the pandemic [22][23] - The company is actively working to mitigate tariff impacts and has diversified its supply chain, reducing reliance on China for U.S. shipments [71][72] Other Important Information - Zebra is leveraging AI to enhance productivity and decision-making capabilities for frontline workers, integrating AI into its mobile devices and internal operations [50][56] - The company has a strategic approach to acquisitions, preferring organic growth but remaining open to bolt-on acquisitions in adjacent markets [64][66] Q&A Session Summary Question: What is customer onboarding time and how much time and cost would it take them if they want to switch to another competitor? - The majority of customers typically deploy and make decisions around a single vendor, leading to a sticky product lifecycle of about five years, making it challenging to switch to competitors [83] Question: With RFID, can you talk through the process of customer adoption? Is there a bottleneck in that customers need a modern tech stack before first deploying the technology? - Adoption of RFID involves source tagging at the manufacturing stage, and the journey includes using handheld devices, moving to portals, and then to perpetual reading systems [85][88][89]