Summary
Axon Enterprise, Inc. reported strong revenue growth in the third quarter of 2022, with net sales increasing by 34.4% year-over-year to $311.8 million. This growth was primarily driven by the Software and Sensors segment, which saw a 51.0% increase in net sales, and continued strength in the TASER segment, particularly with the TASER 7 device. The company also achieved significant year-over-year improvement in profitability, with income from operations rising substantially to $32.1 million from $2.9 million in the prior year quarter. This profitability surge was aided by a significant decrease in stock-based compensation expense. For the nine-month period ended September 30, 2022, net sales grew by 32.2% to $853.8 million, and the company transitioned from a net loss of $46.5 million in the prior year to a net income of $118.0 million. A substantial portion of this improvement is attributable to a significant decrease in stock-based compensation expense. The company ended the quarter with a healthy liquidity position, characterized by $147.7 million in cash and cash equivalents and a strong backlog of future contracted revenue amounting to $3.73 billion, providing good visibility into future revenue streams.
Financial Highlights
49 data points| Revenue | $311.75M |
| Cost of Revenue | $118.50M |
| Gross Profit | $193.26M |
| R&D Expenses | $59.13M |
| SG&A Expenses | $102.02M |
| Operating Expenses | $161.15M |
| Operating Income | $32.11M |
| Net Income | $12.13M |
| EPS (Basic) | $0.17 |
| EPS (Diluted) | $0.17 |
| Shares Outstanding (Basic) | 71.11M |
| Shares Outstanding (Diluted) | 72.53M |
Key Highlights
- 1Net sales for Q3 2022 increased by 34.4% to $311.8 million, driven by both TASER and Software & Sensors segments.
- 2Software and Sensors segment sales surged 51.0% year-over-year, highlighting continued growth in cloud services and integrated solutions.
- 3Income from operations dramatically improved, reaching $32.1 million in Q3 2022, compared to $2.9 million in Q3 2021.
- 4The nine-month period ended September 30, 2022, saw a significant swing to profitability, with net income of $118.0 million, compared to a net loss of $46.5 million in the prior year.
- 5Gross margins remained strong, with the overall company gross margin at 62.0% for Q3 2022.
- 6Future contracted revenue stands at a substantial $3.73 billion as of September 30, 2022, indicating strong revenue visibility.
- 7Cash and cash equivalents were $147.7 million at the end of the quarter, with no outstanding borrowings on the company's credit facility.