NASDAQ$AXON

Axon Enterprise Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Axon's Q3 2023 earnings were released, revealing a 33% increase in revenue to $414 million and an improved outlook for the year.

Axon reported strong Q3 2023 results with revenue up 33% year-over-year to $414 million. The company raised its full-year revenue outlook to approximately $1.55 billion, representing 30% annual growth, and expects a full-year Adjusted EBITDA margin just above 20%. Key growth drivers included Axon Cloud & Services, which increased 55% year-over-year, and the TASER segment, which grew 12% driven by the ramp of TASER 10.

  • Annual Recurring Revenue (ARR) grew 54% year-over-year to $619 million, supported by a Net Revenue Retention (NRR) of 122%.
  • International revenue increased by 52%, bolstered by a growing pipeline.
  • Net income reached $59 million, contributing to an Adjusted EBITDA of $92 million.
  • TASER 10 demand is exceeding expectations, indicating a successful product launch.

Headline financials

Total Revenue

$414M

Previous: $312M+32.7%
EPS (adj)

$1.02

Previous: $0.60+70.0%
Annual Recurring Revenue

$619M

Previous: $403M+53.6%
Capital Expenditures

-$35.6M

Previous: -$44.2M+19.4%
Free Cash Flow

$23.8M

Previous: -$32.1M+174.1%
Net Income

$59.4M

Previous: $12.1M+389.6%
Operating Income

$55.1M

Previous: $32.1M+71.7%
Gross Profit

$255M

Previous: $193M+32.1%
Cash & Equivalents

$406M

Previous: $148M+174.9%
Total Assets

$3.25B

Previous: $2.01B+61.9%
R&D Expense

$76.9M

No prior period
Stock-Based Comp

$30M

Previous: $28.2M+6.3%

Revenue & EPS history

Axon · Revenue · Quarterly

$414M

Q3 2023+32.7%vs Q3 2022
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 provided its outlook for Q4 2023 and full year 2023, expecting continued revenue growth and strong Adjusted EBITDA margins.

Tailwinds

  • For the fourth quarter, the company expects to report revenue within the range of $417 million to $420 million.
  • Axon expects an Adjusted EBITDA margin of approximately 20% in the fourth quarter.
  • The full-year 2023 revenue expectation has improved to approximately $1.55 billion, or 30% annual growth.
  • The company's Q4 2023 Adjusted EBITDA margin expectation of approximately 20% implies a full-year Adjusted EBITDA margin of 20.8%.
  • For 2024 and beyond, Axon remains confident in its ability to scale globally, penetrate new customer segments, and introduce new products that drive highly profitable revenue growth.

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 Q3 2023

Historical avgQ3 2023

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro