NASDAQ$AXON

Axon Enterprise Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Axon's Q1 2024 earnings were reported, with revenue up 34% year over year and an increased full year outlook.

Axon reported a strong start to 2024, with Q1 revenue reaching $461 million, a 34% increase year-over-year. The company raised its full-year revenue outlook to $1.94 billion to $1.99 billion. Annual recurring revenue grew by 50% to $825 million, and net income was $133 million.

  • Q1 2024 revenue reached $461 million, a 34% increase year-over-year.
  • Axon Cloud & Services revenue grew 52% to $176 million.
  • Annual recurring revenue increased by 50% to $825 million.
  • Net income was reported at $133 million, supporting a non-GAAP net income of $89 million and an Adjusted EBITDA of $109 million.

Headline financials

Total Revenue

$461M

Previous: $343M+34.3%
EPS

$1.73

Previous: $0.88+96.6%
Annual Recurring Revenue

$825M

Previous: $520M+58.7%
Capital Expenditures

-$16.2M

Previous: -$8.51M-90.2%
Free Cash Flow

$117M

Previous: $36.6M+219.5%
Net Income

$133M

Previous: $45.1M+195.1%
Operating Income

$16.3M

Previous: $16.6M-2.0%
Gross Profit

$260M

Previous: $204M+27.4%
Cash & Equivalents

$404M

Previous: $263M+53.3%
Total Assets

$3.62B

Previous: $3.01B+20.2%

Revenue & EPS history

Axon · Revenue · Quarterly

$461M

Q1 2024+34.3%vs Q1 2023
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Axon · $163M total across 1 segment · Q3 2023

  • TASER
    $163M+12.2%

Forward guidance

Axon expects full year 2024 revenue of $1.94 billion to $1.99 billion, representing approximately 26% annual growth at the midpoint. Axon expects full year 2024 Adjusted EBITDA dollars of $430 million to $445 million, implying Adjusted EBITDA margin of approximately 22%. We expect stock-based compensation expenses to be approximately $215 million to $230 million for the full year.

Tailwinds

  • Axon expects full year 2024 revenue of $1.94 billion to $1.99 billion, representing approximately 26% annual growth at the midpoint.
  • This is an increase from our prior revenue guidance range of $1.88 billion to $1.94 billion.
  • Axon expects full year 2024 Adjusted EBITDA dollars of $430 million to $445 million, implying Adjusted EBITDA margin of approximately 22%.
  • This is an increase from our prior Adjusted EBITDA guidance range of $410 million to $430 million.
  • We expect stock-based compensation expenses to be approximately $215 million to $230 million for the full year.

Headwinds

  • We provide Adjusted EBITDA guidance, rather than net income guidance, due to the inherent difficulty of forecasting certain types of expenses and gains such as stock-based compensation, income tax expenses and gains or losses on marketable securities and strategic investments, which affect net income but not Adjusted EBITDA.
  • We are unable to reasonably estimate the impact of such expenses, which could be material, on net income.
  • Because our stock-based compensation expenses may vary based on changes in our stock price or the actual timing of attainment of certain metrics, it is inherently difficult to forecast future stock-based compensation expense, which may also be materially affected by any future stock-based compensation plans, subject to shareholder approval.
  • We expect 2024 CapEx to be in the range of $80 million to $95 million, up from $60 million to $75 million previously.
  • The increase in our CapEx expectations is primarily a result of accelerated capacity expansion investments to meet higher demand for TASER 10.

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 2024

Historical avgQ1 2024

+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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