Okay, good morning, everyone. I think we'll get started. I'm Mark Newman, Bernstein's US IT Hardware Analyst, and it's a great pleasure to introduce today Bill Burns, CEO of Zebra Technologies. Just a brief intro, Bill became CEO of Zebra 2023. You've been at Zebra since 2015, I believe. Correct. This is your third time here at SDC, obviously glutton for punishment. Yeah. Thanks for coming back. Yeah, thanks for having us. Anything you want to say before we start? Yeah, maybe just introduction of Zebra. I would say overall, we're fundamental to intelligent operations across our customers. We serve the retail market, e-commerce, transportation logistics, manufacturing, healthcare, and government as our core markets. About 80%+ of the Fortune 500 are customers of ours today. We focus in two business segments, asset visibility and automation, and connected frontline. I would say that overall, AI and the deployment of AI at the frontline of business is a net positive for Zebra and ultimately will drive our business moving forward as people look to deploy and continue to deploy automation and AI within their frontline environments. We can talk more about it as we get into the chat. Sounds good. Just wanted to remind everyone, we've got this Pigeonhole link that you can put a question in there. I can get to audience questions. I'm going to have a few of my own questions. If you have any of your own questions, I can get to those, too. Feel free to enter a question there, or if you prefer, you can put your hand up later on. To get started, Bill, could you elaborate more on Zebra's role in the future of automation, and in terms of what's your value proposition and durable competitive moat here in automation? As I said, we report and focus on two primary segments, Asset Intelligence & Tracking, and Enterprise Visibility & Mobility. If you think about those, you would see us in everyday life. You'd see us in point-of-sale checkout in retail, you'd see us in parcel delivery by transportation logistics companies. You'd see us in a hospital environment with hospital wristbands and tracking specimens and others inside hospitals. The place you wouldn't see us would be inside things like warehouses and e-commerce picking solutions that continue to drive automation and, as I mentioned earlier, AI into the frontline of business, which is just in its infancy today. From an automation perspective, our business is really around productivity and making our customers more effective and more efficient each and every day. Our Asset Intelligence & Tracking segment does exactly that through barcode scanning, RFID reading, our printing solutions. Our machine vision portfolio allows you to identify assets within our customers' environments, which allows you to digitize the environment, which is critical if you want to go automate the environment. You need to know where the inventory is, where the people are, where is the forklift, where are my tools, ultimately, to be able to take the next best action in your business. That we think of this framework of sense, analyze, act. The analyze framework has become ever more stronger through AI and analytics. You analyze the assets you have and where the people you have and others, and you want to create a task, which is the next best action in your business to be more effective, more efficient. Where should the forklift go next? What inventory needs to be put on a retail shelf to be able to be sold? Move it from the top of shelf to the actual shelf where consumers can buy it. If it's in back room, how do I automatically reorder from our warehouse? How do I ship from my distribution center into the store? How do I pick this e-commerce warehouse order? What's the next one I need to pick in the order of when it needs to be delivered? All that analytics drives our connected frontline, which is really mobile devices in the hands of frontline workers, ultimately, that allow work to get done. Unless you'd be able to send a task to a worker and drive action within your business, you get no result ultimately, you get no business value. We think of both of our pillars, asset visibility, driving digitization, analytics, and automation, ultimately the way you automate is that people get work done today. Great. Can I just ask a follow-on with regards to AI. What is being done on device versus in the cloud? Yeah With Qualcomm and Google Cloud. Can you talk about that? Yeah. Like what is on device versus in the cloud? Yeah, we see a role for both on the mobile device. We see that running models on the actual device for, I'll say, simpler tasks, right? There's going to be tasks where you want to go back to the cloud. Let's say product recognition, where you're trying to use a database of different products and others. You're going to want to go to the cloud. If you're using local store operating procedures in retail, you can run that on the device. The advantage is to our customers that many of our customers don't have a lot of connectivity from either stores or from warehouses or logistics locations. They don't have a lot of connectivity, communication, and collaboration, and it's costly to go to the cloud every time you need to ask a question of an AI engine. The idea of using and leveraging faster processors, more memory on the actual device itself, working closely with our partners, Qualcomm and Google, with the Android operating system and software we develop ourselves, allows us to run those models on the actual device. Allows you to be more cost-effective in what you want to run and which application. For us, it means upgrade of devices, meaning that our customers want to go to higher processing speed, more memory on those devices, ultimately, to be able to run those AI applications on those devices. We see it driving, over time, an upgrade cycle within our customers' environment. We see it being higher average sell prices because they're more processing power, more memory, more sophistication on the device to go do that. We see software opportunities. Some of the functionality to be able to manage that engine could be an opportunity. We see offerings of our own. We talk about Blueprints and Enablers and Companion around the idea of our customers being able to leverage the mobile device through Enablers we provide on the device for them to build their own AI models or tie a couple of our Enablers together. We create a Blueprint and charge our customers for that, enabling that. Think of parcel proof of delivery. When a driver delivers a parcel, we actually drive the workflow that says, "Scan the barcode, take the picture, blur out the address, the family dog, the child in the picture, and then save a couple of seconds per delivery." We deliver that software as a Blueprint, a combination of functionality, and then it runs underneath the transportation logistics company's own application. Other places, we do the whole companion, the idea that it's a digital companion. We create those blueprints and combine them together. It's a Zebra application that our customers would use. We see the opportunity for us is higher ASPs on the hardware, driving a refresh cycle. Also software opportunities for us. Can you talk about what is the ratio today on device versus cloud, and how may that change going forward? Do you have a rough idea? Yeah. I would say today it's predominantly in cloud, I would say. We believe ultimately that that will move increasingly so to a combination of both. Okay. I just think that the models that our customers are using when leveraging our devices today are mostly cloud-based. I think that we see the models that we're developing in some of these applications are device-based. We don't need connectivity to the cloud. The predominantly of their deployments today are in the cloud. That's where they've started. Right. Okay. Got it. Just to step back before we go into some more of these details. Recently, you just, I believe, raised your full-year outlook. Can you talk about what gives you confidence to do that? Yeah. I think that we had a solid Q1 results ultimately driving the upgrade or increase in our outlook for the full year overall. I think that we've seen our conversations with our customers through our largest trade shows at the beginning part of the year. We meet with many of our customers across the national retail show, across healthcare show, across some of the automation shows, and we've seen broad-based growth across the portfolio. We've seen strength in manufacturing, which has been lagging some of the other verticals, growing but lagging some of the strength there. We're seeing strength in manufacturing and ultimately that resulted in solid Q1 performance. I think we've gotten more comfortable with the pricing and delivery of memory ultimately that we're going to be able to secure the supply of memory we need to meet our outlook for the full year and increase that outlook based on Q1 results. We were able to procure that memory at the prices that we had kind of anticipated moving forward. We put price increases into the market that we needed to cover those cost increases. I think that we feel good about where we're at from a demand perspective. We think that ultimately, if we didn't see pressure from a memory perspective and availability, we'd be more towards the higher end of our guide. We feel good about where we're at from our guide perspective and delivering on that from what we can see from customer demand continued to remain strong, broad-based, and broad-based across geographies and the portfolio. We see the idea that ultimately we can secure the memory we believe that we need to meet that demand. You touched on memory there. With the rising costs coming from memory, are you able to pass on all of those costs to consumers? Yeah. Are you working to try to maintain gross margin, or is it more gross profit dollars you're trying to maintain? Or what's the overall strategy there? Yeah. in terms of the cost inflation? We continue to focus on gross margin, driving higher levels of gross margin across the business. You would like to ultimately maintain gross margin percentage, but it may be more at the profit level that is covering our cost more on the memory side because the increases have been so significant. I would say that we're no different than all the other vendors into the marketplace, that there's been conviction around needing to raise price. We have no choice. The price increases in memory have been so significant that I think overall our customers are saying to us, "No surprise." Other vendors have come to us across our entire telecom purchase portfolio, and we're seeing those increases. We are still passing those through, meaning the price increases we put in the market in first quarter are still coming to fruition here in the second quarter. We're using a combination in 2026 of overall OpEx savings and price increases because the price increases won't kick in until now in some cases, because the pricing of memory wasn't available until in the first quarter. We're using a combination of both to drive the profitability in 2026. In 2027, we anticipate to see the entire value of the price increases come through for the full year, if memory continues to go up, we'll continue to have to raise prices into the marketplace. I think that it's really no different than other vendors, and we've seen that our customers understand. You touched already a bit on the demand trends, but could you provide a bit more color on the demand trends you're seeing across the key end markets, manufacturing, retail, healthcare, et cetera? Yeah. I would say that broad-based growth across the portfolio from a retail and e-commerce perspective, omni-channel, buy online, pickup in store, e-commerce continues to drive that. Our brick-and-mortar retail customers continue to do well in the market at the same time as they're competing on leveraging the stores for delivery vehicles to their customers. We're seeing transportation logistics parcel volumes starting to grow again. We've seen for a long time coming out of COVID, where parcel delivery was declining off the highs of COVID, and we're seeing investments across transportation logistics, and we see that there'll be large refresh cycles coming up from those T&L providers that last refreshed devices back in 2021 and 2022. We'll see those coming up over the next two years, and we're having strategic conversations with them. They're the larger refreshes coming up over the next two years. Manufacturing has recovered, as I said, broad-based across manufacturing, so we're pretty happy to see that. That drives our machine vision business as well. Not just our core portfolio, but we're seeing growth across machine vision, both in manufacturing and then transportation logistics I just talked about. Both of those are pushing our machine vision business forward. We're also seeing it drive RFID across both those markets, manufacturing and transportation logistics. Healthcare continues to be a strong market. The idea of having more and more data collected into electronic medical records, again, RFID opportunities, self-service opportunities inside healthcare. We take it kind of for granted here in the U.S. about electronic medical records. Around the world, they're still kind of catching up on electronic medical record systems. Collecting more and more data within healthcare. Some would say in healthcare, the barcode is really the life of healthcare. Everything's driven across healthcare by identifying the patient, identifying the medication, identifying the specimen that's taken, all driven by barcodes. That continues to be an opportunity for us. We're seeing government and public safety, as they've been behind on things like inventory management inside government opportunities within our customer base, and we're seeing opportunities for mobile devices within things like public safety and tablets. That's a relatively new market for us overall. What's your long-term expected growth rate, and do you think that you're going to have consistent growth? I guess with the memory price impact, maybe it's a bit more rocky, but I'd just like to hear your view on that. Yeah. We've seen the ups and downs of COVID, if you look back at our financial results of 2021, 2022, 2023, just the effects associated with it. I think if you look over the longer term, ultimately we believe we'll deliver the 5%-7% organic growth that we've talked about. Along with that, we see margin expansion as well. If we can deliver the 5%-7% annual basis, you should see about a half a percentage point of drop-through in margin, 100% free cash flow conversion. Again, all this being really driven by broad customer demand across geographies, across the verticals we serve. We see our customers continue to, as we're mission-critical in their environments, as they continue to see challenges around labor constraints and having to be more efficient in their businesses overall is driving a need more for our solutions from that perspective. We believe ultimately we can deliver the 5%-7% growth rate there. Can we talk a little bit more specifically on RFID now and your strategy there to drive adoption, and what are the emerging use cases for RFID going forwards? Yeah. We're excited about the RFID market. It's been growing at double digits over the last several years. We're the global leader in RFID readers. We also are the leaders in RFID printers. From our perspective, the readers range from handheld readers to fixed readers across both those segments. The RFID market started really around apparel initially. Has moved inside from retail apparel to really extend beyond all the way into the supply chain. Retail apparel initially around inventory management with handheld devices have really moved to fixed devices. We've seen the fast fashion and retailers that control their entire supply chain move first. Think of Lululemon as an example that has their entire supply chain, their controlled fixed set of suppliers to them, tagging at source, leveraging RFID through their entire supply chain, through their distribution centers, in their stores, and all the way to point of sale and checkout, and for loss prevention purposes. They've leveraged it across the supply chain. Again, that's focused really on apparel. We've seen it now move into things like home goods and even fresh goods like bakery or into grocery around the outside of the grocery store where we have perishable items. In retail, we've seen expansion of use cases across different items within the retail environment. In addition to that, because the items are becoming more tracked for the retail store and knowing what's in the retail store. The reason inventory management's ever been more important is if you buy online and want to pick something up in store, if they don't know what they have store inventory, then they tell you they don't have it, even though they have a couple left, because they're worried that you're going to be disappointed because when you show up at the store, they won't have it. If you order something, and then they can't find it, ultimately, you're disappointed. That's driving the need for more inventory visibility in the retail store. It's also now that the items are tagged at manufacturing, they can use it all the way through the supply chain as it's through their distribution centers and into the back of store, into the front of store, and then manage the inventory from there. We're using broad adoption throughout the entire supply chain as well. We've most recently seen transportation logistics companies. UPS has been very vocal around their use of RFID, FedEx, and others, as they continue to say, "Look, I need visibility across my parcels within my environment, and I have visibility to be able to make sure I got the right parcel on the right truck, or that if I have the visibility all the way at a customer site when they're loading a tractor-trailer, and they're handing that tractor-trailer off to me, I know exactly what's in that tractor-trailer before it actually comes to me. So I can have early visibility inside supply chain, and I can make sure the items are really there." We're seeing broad adoption across transportation logistics as well in the U.S., and I think we'll see expand that outside of the U.S. Healthcare is another example. We're seeing healthcare inventory. A lot of the healthcare providers have consigned inventory, and there's always a debate about was it there, wasn't it there? Who pays for it when the inventory is done and the item's missing ultimately. We're seeing more use cases. We're seeing broad adoption across RFID use cases, really around this idea of asset visibility. I need to be able to digitize the environment. It's the way I become more efficient in managing my inventory and being able to reduce the amount of labor, to be able to do things like count items and others, and to be able to know when I need to refresh and what I need to go do across the entire supply chain visibility. Great, moving on to machine vision, if we could. Yep. How much of a portion of your business is machine vision, and how much do you see that contributing to growth going forward? Yeah, I think that today a small portion of business proportionally is in machine vision. We think of the machine vision market as two kind of segments, manufacturing and transportation logistics. We have products in both solutions, in both categories. Think of manufacturing being more around the inspection. Think of transportation logistics more in barcode reading across conveyance and more logistics applications. We've seen our assets are across that portfolio, both acquired assets in the high end of inspection, and then most recently, a Photoneo acquisition in 3D machine vision, and then organically developed assets in the fixed industrial scanning space around transportation logistics. We see that that market's been challenged, both sides of that market, with manufacturing and both T&L not being great markets over the last few years. Now we've seen an inflection point with manufacturing and T&L both growing again, investing across machine vision. We believe vision overall, and the idea that we've talked about asset visibility, you marry multiple different sensors together to ultimately get to the right answer of visibility. We believe that vision is a long-term way to be able to identify items. You start with a barcode, you've got RFID, and you've got vision that can tell not only identify an item, but ultimately identify things like the characteristics of the item, the quality, is it damaged, those kind of things. We see multi-sensing in this idea of collecting even more data over time, and vision systems, machine vision, computer vision being a place that will also be the next or the first device, I guess we'll say, is the next generation of mobile devices will likely be a wearable attached to a mobile device in some way that will also use vision. This idea that as you're collecting more asset visibility, you may do it through some type of body cam that sees everything that you see. If you're a retail associate and you're walking down the aisle and stand in front of a facing, you could read the barcodes, you could read the pricing. You could see if there's gaps missing in the inventory on the shelf. It could tell you ultimately what item to pick when you have an order to pick. We see machine vision, computer vision, being an important part of our portfolio moving forward, and we marry that in the idea of barcode scanning, RFID, and vision being critical to the kind of future of asset visibility. Great. I got a question here from the audience that's relevant, since we just talked about scanning and RFID. Companies like UPS have goals to eliminate manual scans significantly through RFID and fixed scanning. What is Zebra doing to address this? Yeah. I think that the idea of eliminating scans through conveyance systems or being through automation is what our customers do if they can go do that. RFID is a great example of that. We're the global leader in RFID readers and printers, and we participate across transportation logistics customers in that area. We see RFID today as being married along with barcoding. You may eliminate scans along the way, but ultimately, you still need a barcode to identify an individual item and leverage that because you don't have RFID readers everywhere. Today, when you deliver a parcel to a house, you scan the barcode on that item. Even though incrementally between the system, you may scan less. That doesn't mean that worker's still not connected. Ultimately, they may not have to scan an item, but ultimately, that worker needs to be connected because they need to have communication, collaboration, need to have task management. They have other applications they're running on that mobile device inside their environment. Just because they're scanning less doesn't mean there's less mobile devices sold, and it doesn't eliminate the need for a barcode. That's ultimately leveraged throughout the process in different places. Another question here relevant from the audience. "Seemed like competitors have superior fixed scanning or machine vision tech. What is the strategy to improve products? Do you need acquisitions? I wouldn't say that our competitors have superior technology to us. I would say that we're the global leader in barcode scanning today across the portfolio. I think that we've got a competitive portfolio of machine vision, fixed industrial scanning assets as well. We don't need to acquire other assets. We're pretty happy with the portfolio of solutions we have, and we believe we can win in the marketplace. In handheld scanning, we are the market leader. We're challengers in the machine vision and fixed industrial scanning market, but we believe that things and opportunities that we have in front of us, our software capabilities across our vision systems is very good. We believe that our ease of use and the way we're deploying AI to be able to leverage that, to be able to put machine vision cameras and train them, and put them in use within our customer base. We believe the breadth and depth of the portfolio, all the way from 3D vision down to lower-cost solutions, gives us an advantage in the marketplace. That while we're the challengers to Cognex and Keyence in the space, we think there's an opportunity for us. It's a very fragmented market overall, and there's an opportunity for us to play. Fantastic. Just changing tack slightly. I'd like to talk a bit about how Zebra is leveraging AI as an organization. What traction are you seeing in doing that in your recently launched solutions? Yeah. I would say that, as we talked about the idea that asset visibility feeds AI models, and connected frontline allows work to get done from AI models in the frontline of business, is the biggest opportunity for us across the broad portfolio that we have. There are specific solutions that we have across for leveraging our mobile devices, as we talked about AI models on the device itself, we're connecting back to the cloud. We've got to meet our customers where they're at in their automation or AI journey, meaning that some of our customers want to develop their own AI models ultimately, and leverage our mobile device to run those AI models. Other customers want to use our Blueprints or parts of the solutions from Zebra to be able to implement AI solutions with their environments, and others want to buy the full solution from Zebra. One of the examples we had was Total Wine at our national retail show that's using our Companion to recommend spirits or wine to their customers. They want to use our full solution. Others want to use the parcel solution. We got to meet our customers where they are in their journey, and we think that the opportunity for us is really on the revenue side. Higher ASPs for our mobile devices, leveraging our Zebra Companion, and the Frontline AI Enablers we're creating across our AI suite for our customers. Embedding AI across the portfolio. We talked about machine vision, but also our software assets are leveraging AI. AI will be leveraged in multi-sensing, this idea of leveraging barcode scanning read, machine vision, RFID, all in reading and identifying an asset, and then taking the best sensing technique that ultimately identify that item. All those create opportunities for us. I'd say lastly, internally, just like others, we're leveraging AI to get more efficiencies in code writing across our development teams. We're leveraging across our sales teams and marketing teams in the organization. We're leveraging across customer success and customer service. We see efficiencies within our business as well, but I think the biggest opportunity is really on the revenue side for us. Mm-hmm. You recently made an acquisition of a company called Elo. Can you talk a little bit about the update on how that's going, integration and contribution from that company, synergies and cross-selling opportunities that you're most excited about from that? We're excited about the opportunity, the acquisition of Elo. It brings to us another dimension to automation within our customers in both retail and quick-serve restaurants. We're seeing it across manufacturing and healthcare and others, where touchscreen technology and self-service is another way to automate inside the environment. You go to a location like Newark Airport, you can't really order anything from anybody. You've got to do everything through a touchscreen, right? We're seeing the labor constraints within retail, a continued move to more self-service checkout, for instance. We're seeing that same move inside other industries. At our healthcare show, a lot of interest in the Elo portfolio by our healthcare customers and things like checking in patients or checking in visitors. Use cases across their portfolio. They're developing payment and point-of-sale solutions that fit right into that self-service model. What we like about the portfolio is it's very similar to Zebra. High gross margin. Very reliable hardware in our customers' environments. Well-respected by name brands around the world. The largest retailers, the largest quick-serve restaurants are leveraging Elo's technology today. We like their portfolio products. Inside quick serve restaurant, for example, they can do the customer-facing kiosk. They do point of sale within the quick serve restaurants. They're doing kitchen displays and touchscreen displays inside the environment of the kitchen environment inside quick serve restaurants. Just like Zebra, the breadth and depth of the portfolio allows you to actually impact the entire workflow within a quick serve restaurant versus just having one element of the solution for our ultimate customer. We like that. Similar levels of growth to Zebra, 5%-7% great through cycle, so it marries along with our growth. Similarities of profitability across their business. The opportunity is really around revenue synergies. While we've identified about $10 million in cost synergies, we've committed to $25 million in synergies over the next three years. We see the real opportunity is really around revenue, taking their product portfolio into places that we have relationships around the world. They're mostly in North America and Europe today. Mostly North America, more so than even Europe. Taking their portfolio across our broad customer base, taking it in new geographies. We recently launched their solutions in Australia and India, two strong markets for us. We've continued to introduce them into our customer bases where they don't have relationships today. We see leveraging that portfolio and really getting revenue synergies around the world is the biggest opportunity, and they look and feel a lot like us. Competitive moat around software and best-in-class hardware that their customers respect. Great. Another acquisition, Brady's acquisition of Honeywell PSS. What does that mean to the industry and to Zebra? I think that we continue to focus on winning in the marketplace and our strategic relationships with our largest enterprise customers around the world. We're the market share leader in many of the aspects of our core portfolio today, and we continue to see an opportunity to take share in the marketplace. I think that from our perspective, there's always going to be competitors in the marketplace, and we've continued to partner closely with our enterprise customers to make sure that we're the trusted partner that they want to do business with across their entire workflows. We believe that breadth and depth of our portfolio and our solutions, our global reach, our partner community, our relationships with folks like Qualcomm and Google, and our partner community across large software vendors around the world, whether it's an SAP or Manhattan or others, allows us a competitive advantage, and we continue to expect to win in the market. We already talked earlier a lot about memory, but I just wanted to come back to it. Yep Given the shortages and price increases, how are you managing to navigate this? Do you have long-term agreements in place? Are you moving towards longer-term agreements? How are you able to manage it better than competitors? Yeah, I think that our supply chain team has been doing an incredible job. This was identified probably in the second half of last year when the challenges of memory were expected to come to fruition. I think that the size of the price increases that came in first quarter were anticipated, were probably larger than any of us had thought they would be at the time. I think we're all kind of over the shock associated with that. I think our team's doing a great job. We have significant relationships with the memory suppliers today that have been in place for many, many years. We work closely with all three of the suppliers ultimately to make sure that we're tightly coupled to what they're doing and to make sure we have the supply we need. That includes the second half of last year, having in-depth conversations about them to what their plans were moving forward, what memory types were going to be most available, where are they going to focus their highest volume productions, and us moving to those. Some of those memory types aren't even available yet, but we've qualified them early on with Qualcomm and ourselves and made sure that we're going to be able to use those memory types that are more available when they become available. We've been able to secure through these relationships the amount of memory we need. Many times, from a Zebra perspective, we're a large customer to the business units we work with. We talk about relationships with each of the vendors. We have relationships all the way to their general manager levels within the divisions we work with. We've been working closely with them to make sure they understood our demand, and we're doing everything they ask us to make sure we can secure that supply, including, like I said, qualifying new memory. We're also working closely with our customers to make sure we understand what their demand is going to be and make sure we get early visibility to what they expect to buy later in the year to make sure that we're using the memory that we get and building the products ultimately that they want to buy. The last thing I want to do is build products ultimately that don't have demand for or that someone wants to buy something else. We've been working with our partner community and our customers to make sure we understand what the requirements are. We've raised price into the market. We've had to, right? From a pricing perspective, we have to raise price into the marketplace like others. We've priced that such that we believed what the pricing was going to be, and then if the pricing goes up even further, we'll have to raise prices further into the marketplace. I think it's our strategic relationships. I think our supply chain team has been through this before, through COVID, and has managed through it. We've got line of sight to the demand, the memory we need to meet our guide for the year. I think that there's upside to the higher end of our guide for the full year, if we can secure additional memory, because we see the demand from a customer perspective. We think there's upside to that. Right now, we're planning on getting the memory that we need. We have commitments from the vendors to get that. Ultimately, they have to go deliver on it. I think we feel pretty good about where we're at from a pricing perspective and availability perspective. Great. How are you thinking about capital allocation priorities, including share purchases and M&A? We've been buying our stock back based on the current valuation. We spent about $500 million in share buybacks since the beginning of the year, because we believe that ultimately is the best use of our capital in the short term, given the valuation of the stock. I think that overall, M&A becomes an important piece to our future. We continue to be inquisitive around M&A and continue to look at assets that would drive our growth moving forward that are closely adjacent to the areas in which we do business today. We would see venture also, small investments in venture in places where we're not looking to acquire but want to explore new technologies that ultimately may be interesting to us down the road. I would say in the short term, our priority's been really around buybacks based on the current valuation. I've got a few more questions from the audience. Just a reminder, Pigeonhole Live, feel free to vote on the questions or add any if you have any to add. This is a few questions from the audience. You mentioned AI as a net positive. What are the key potential negatives? How mature are they, and what can you do to address them? I really don't see automation and AI being a negative for our business. I think that there's a concern out there, I think with investors at times that have expressed around, well, are all of us sitting on our couches while humanoids are doing all the work? Right. We don't see that taking place for the foreseeable future. In fact, if you look at automation today, we're really talking about warehousing and customers today are inside warehousing, and that's only a small portion of our business overall. We don't see necessarily AI taking over the retail associate's job or a nurse inside healthcare anytime soon. I think that we would see a net positive as we need to have more and more workers connected in an AI world to leverage AI engines. If you looked at even warehouses, that today the place that's most automated, automation today, which will really be driven by AI moving forward, is really around goods transport. It's really moving things and storing items today around automation. AI ultimately will allow more intelligence, but to drive that intelligence, likely a worker will need to leverage a mobile device and will need more connectivity. I don't see a negative for us. I see people wanting having more visibility in their environments and more workers needing to be connected than ever before to be able to implement AI in the environment. Even customers that are the most advanced in automation today, and one would argue AI is going to advance automation, are buying more devices from us. Related to that, can high memory prices delay the AI upgrade cycle? This is also from the audience. I guess that's referring to you need lots of memory. Yeah in the devices. Could that delay the upgrades? Yeah, we haven't seen two elements. We don't necessarily see that. I think we're still at the early stages of the rollout of devices that are AI-enabled, right? They've just been released in the market. From our perspective, we don't see delaying those device rollouts associated with not being able to secure the memory we need. I would say that we also haven't seen customers push out any projects at all associated with, "Hey, this is a higher priced device because of memory. I'm going to wait and buy or push this project out." I think there's always a risk that customers have limited budgets. They're going to make choices at some point in time around the projects in general they go ahead with. If servers are more expensive and mobile devices are more expensive and everything they do, their data center equipment is all more expensive, communications equipment, others, they've got to make choices. We haven't seen that. We've seen our customers be conviction around deploying technology for their frontline workers. We're key to that, and those projects continue to move forward. I think that our customers have acknowledged that the higher price is driven really by memory pricing. We've been able to secure the memory that they've needed for the devices they want to procure, and I think we haven't seen them change their behavior because of it. Another question from the audience. Where do you see mobile technology heading, and how will it impact you? If I could just add to that, considering where smartphones are today, Apple, Samsung, et cetera, and the way that now we're talking to the phones using our voice more and more. Yep How could that impact you and potential competition from consumer device brands like Apple and Samsung, for example? Yeah. Let's start with where I think it's heading. I think ultimately, we're going to see devices with more processing power, more memory, and others I talked about before to support applications. I think it'll predominantly be voice and vision-driven, and I'll cover that in a minute. I think today, voice, meaning ultimately I want to go ask a question, I want to go ask it in multiple languages. I want an AI engine to come back with an answer associated with it. I think that vision plays an important role moving forward as well. I think you'll see mobile devices augmented with devices like, I'll use the example body cam. I don't think it likely will be glasses. It might be. I'm not sure that consumers are in love with everybody walking around a retail store with glasses on. I do think there's likely some type of body cam type of device that pairs to your mobile device as the first incarnation of an AI-enabled device. This idea that if you're walking around a retail store, I can sense the entire environment. I can read barcodes on the shelf. I can look at the pricing. I can tell what shelf has gaps in it. If I stand in front of a shelf, I can look at the entire image. I can actually be directed on where to pick an item for an order that I'm actually picking. I think wearable technology, and we've seen this in our customer base, customers moving more to hands-free and wearable devices, and we're the global leader in enterprise wearable devices. We think the next incarnation of where it goes is likely some type of wearable device married with a mobile device, because you want to have battery and connectivity and others. You want this device to be small, is likely the first incarnation of a multi-sensing, AI-type device. Customers of ours that have considered consumer have always come back to Zebra. The primary reason is, number one, world-class hardware set for their environment. If you're in transportation logistics, or you're in a do-it-yourself retail store, your devices you're buying are eight-foot drop spec devices that can be dropped many times in that environment. You can't do that with a consumer device, even with a case on it. Second is the software and functionality we add to those devices. The majority of my engineers today are software engineers. They're developing on top of Android to be able to give enterprise software capabilities to our customers. How do I control the security patches? How do I control the OS downloads to that device? How do I be able to provision those devices and environment? Many of our devices are only in a Wi-Fi environment. A mobile device is optimized for cellular. Our devices are optimized for cellular and Wi-Fi inside the environment, ultimately because many of them never have a cellular connectivity associated with it. There's devices fit for purpose. Our healthcare devices are designed to be able to wipe down with disinfectants every couple of hours inside that environment. You can't do that with a consumer device the way you would with our enterprise devices. There's a competitive moat that we have around this enterprise environment that you're just not going to see from a consumer device. That applies also to wearables as well, not just the mobile device. It does today, because the wearables we design today are all about multi-use within our customer's environment. Think of the idea of a wearable device, but the device actually comes off, but you have your own wearable wrist strap that is yours, right? You don't want to wear somebody's, quite honestly, sweaty wrist strap, the shift before you. We think through the entire enterprise workflow and use case with our customers and then design the device around that. Great. Got it. All right. We're running out of time, so last question from me. Just anything you think that is underappreciated by the market, and why do you feel Zebra's stock price is undervalued right here? Yeah, I think we've talked about it already. I think ultimately there's a bit of overhang on memory, right? I think ultimately that we believe we're going to be able to secure the memory we need to meet our guide. If we can get additional memory, we think it moves more towards the top end of our guidance range that we've given. We're seeing the demand in the marketplace today. I'd say overall that automation and AI are positive for Zebra in longer-term trends. I think we're going to see over the next couple of years us continue to deliver the 5%-7% growth rate. I think the refresh cycle we haven't really talked about coming out of 2020 and 2021. 2021 and 2022, there was a lot of devices that were bought by transportation logistics companies in postal and others that were put in use there. Those upgrades and refreshes are coming up over the next couple of years, where we need to have those conversations with our customers. We're excited about delivering not only the top-line growth we talked about, but profitability increases associated with that. Continue to generate 100% free cash flow and creates us opportunities from capital allocation, either buying our stock back or from the acquisition perspective in making investments within our business. We're excited about the future. Great. Thanks very much, Bill. Appreciate it. Thank you. Thank you very much. Thanks.