NASDAQ$AXON

Axon Enterprise Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Axon demonstrated resilience with revenue up 27% year-over-year, driven by strong international sales and demand for software and sensors.

Axon reported strong Q1 2020 results with revenue up 27% year-over-year. International revenue grew 38%, and the company saw increased adoption of its cloud software solutions. Axon is withdrawing its formal full year guidance due to COVID-19 but remains confident in its long-term outlook.

  • Revenue grew 27% year over year to $147 million.
  • International revenue grew 38% in the quarter to a record $30 million.
  • GAAP EPS was $0.07 and Non-GAAP EPS was $0.40.
  • Axon Dispatch is officially powering 911 with its first paid customer in Maricopa, Ariz.

Headline financials

Total Revenue

$147M

Previous: $116M+27.1%
EPS (adj)

$0.40

Previous: $0.21+90.5%
Capital Expenditures

-$2.21M

Previous: -$5.27M+58.1%
Free Cash Flow

$1.87M

Previous: $1.15M+62.5%
Net Income

$4.07M

Previous: $6.42M-36.5%
Operating Income

-$800K

Previous: $2.67M-130.0%
Gross Profit

$88.6M

Previous: $68.9M+28.6%
Cash & Equivalents

$157M

Previous: $224M-30.0%
Total Assets

$877M

Previous: $732M+19.9%
Stock-Based Comp

$20.2M

Previous: $7.91M+155.5%

Revenue & EPS history

Axon · Revenue · Quarterly

$147M

Q1 2020+27.1%vs Q1 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Axon · $75.9M total across 1 segment · Q1 2020

  • TASER
    $75.9M+16.1%

Forward guidance

Axon is withdrawing its formal full year guidance of $100 million to $105 million in Adjusted EBITDA on revenue of $615 million to $625 million.

Tailwinds

  • Some departments are continuing to place large orders for Axon products.
  • Some agencies move to standard issue on Axon devices, to reduce sharing among officers, which has boosted orders.
  • Better-than-expected international TASER orders realized through May 2020.
  • A strengthening Federal pipeline.
  • Widening customer base is providing new revenue opportunities.

Headwinds

  • The potential global impacts of the COVID-19 pandemic.
  • Exposure to cancellations of government contracts due to appropriation clauses, exercise of a cancellation clause, or non-exercise of contractually optional periods.
  • Our ability to manage our supply chain and avoid production delays, shortages, and impacts to expected gross margins.
  • Customer purchase behavior, including adoption of our software as a service delivery model.
  • Municipal government budget appropriations have not been a historical challenge for Axon, the severity of the economic slowdown related to COVID-19 increases appropriations risk.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+3.4%

Avg return

Earnings day

+6.6%

Avg return

5 days after

+6.7%

Avg return

30 days after

55%

35 / 64 earnings

Positive

+31.3%

Q3 2024

Best reaction

-17.1%

Q4 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.4%+3.1%+27.9%
Q4 2025+1.1%+29.3%-2.8%
Q3 2025+13.7%-17.2%-22.0%
Q1 2025+14.2%+20.4%+31.6%
Q4 2024+15.3%+5.9%+7.7%
Q3 2024+31.3%+29.5%+49.7%
Q2 2024+22.0%+27.6%+24.0%
Q1 2024-1.8%-4.7%-11.4%
Q4 2023+13.9%+15.7%+15.2%
Q3 2023+5.9%+0.5%+8.5%
Q2 2023+11.6%+17.6%+20.3%
Q1 2023-13.1%-9.2%-12.2%
Q4 2022+13.4%+13.3%+11.7%
Q3 2022+15.8%+23.2%+15.7%
Q2 2022+8.5%+11.4%+5.6%
Q1 2022-4.0%+11.8%+15.0%
Q4 2021+9.6%+16.1%+8.4%
Q3 2021+4.3%+6.8%-13.4%
Q2 2021+0.8%-3.8%-3.3%
Q1 2021-4.6%-6.6%-0.1%
Q4 2020+2.5%+2.9%-14.6%
Q3 2020+16.7%+13.3%+18.2%
Q2 2020-9.5%-14.5%-10.8%
Q1 2020+30.2%+26.2%+40.3%
Q4 2019-3.8%-2.9%-7.5%
Q3 2019+25.0%+22.5%+37.6%
Q2 2019-11.4%-10.3%-5.4%
Q1 2019-4.9%-1.0%+3.3%
Q4 2018-4.4%-6.2%-7.2%
Q3 2018-16.1%-13.6%-26.4%
Q2 2018-10.6%-8.1%+5.1%
Q1 2018+21.6%+27.4%+41.4%
Q4 2017+23.7%+37.6%+39.6%
Q3 2017-7.7%-8.9%+4.8%
Q2 2017-10.5%-13.1%-16.4%
Q1 2017+4.8%+3.8%-2.4%
Q4 2016-6.7%-12.5%-11.0%
Q3 2016+19.3%+22.3%+6.0%
Q2 2016+1.9%-0.1%-7.5%
Q1 2016+2.9%
Q4 2015+11.2%
Q3 2015-13.8%
Q2 2015-14.1%
Q1 2015+15.3%
Q4 2014-13.2%
Q3 2014+14.4%
Q2 2014+4.9%
Q1 2014-10.7%
Q4 2013+7.3%
Q3 2013+13.5%
Q2 2013-0.2%
Q1 2013+7.8%
Q4 2012-17.1%
Q3 2012-1.7%
Q2 2012-1.1%
Q1 2012+0.0%
Q4 2011-0.5%
Q3 2010-2.7%
Q3 2011-2.7%
Q2 2010-2.7%
Q2 2011-2.7%
Q1 2011+4.8%
Q4 2010-4.8%
Q1 2010+6.1%

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