Summary
Axon Enterprise, Inc. reported robust revenue growth for the third quarter and first nine months of 2024, with total net sales reaching $544.3 million and $1.5 billion respectively. This represents significant year-over-year increases of 31.7% and 33.4%, driven by strong performance in both the TASER and Software & Sensors segments. The company saw particular strength in TASER devices and cartridges, alongside continued growth in its cloud-based Axon Evidence and services. Despite the revenue surge, income from operations decreased year-over-year for both periods, primarily due to a substantial increase in operating expenses, notably higher stock-based compensation and R&D investments. Financially, Axon ended the quarter with a strong liquidity position, holding $695.1 million in cash and cash equivalents. The company also reported a significant increase in goodwill and intangible assets, largely due to the acquisition of Fusus, LLC. Additionally, Axon announced a major acquisition of Dedrone Holdings, Inc. in October 2024, signaling continued strategic expansion. While profitability metrics were impacted by increased expenses, the overall financial health and growth trajectory remain positive, supported by a substantial remaining performance obligation backlog of $7.7 billion.
Financial Highlights
53 data points| Revenue | $544.27M |
| Cost of Revenue | $213.53M |
| Gross Profit | $330.75M |
| R&D Expenses | $114.48M |
| SG&A Expenses | $192.19M |
| Operating Expenses | $306.67M |
| Operating Income | $24.08M |
| Net Income | $67.03M |
| EPS (Basic) | $0.89 |
| EPS (Diluted) | $0.86 |
| Shares Outstanding (Basic) | 75.70M |
| Shares Outstanding (Diluted) | 78.08M |
Key Highlights
- 1Net sales increased by 31.7% to $544.3 million in Q3 2024 and by 33.4% to $1.5 billion for the first nine months of 2024, driven by strong performance across both TASER and Software & Sensors segments.
- 2Income from operations decreased to $24.1 million in Q3 2024 from $57.4 million in the prior year, and to $74.3 million for the first nine months from $114.1 million, primarily due to increased operating expenses.
- 3Gross margin as a percentage of net sales decreased slightly year-over-year in both Q3 (60.8% vs. 62.1%) and the nine-month period (59.4% vs. 61.2%), mainly attributed to higher stock-based compensation and amortization expenses.
- 4Operating expenses significantly increased by 57.1% in Q3 and 43.8% year-to-date, driven by higher stock-based compensation, increased headcount, and R&D investments, including transaction costs for acquisitions.
- 5The company ended Q3 2024 with substantial liquidity, reporting $695.1 million in cash and cash equivalents, a 16.1% increase from year-end 2023.
- 6Goodwill and intangible assets saw a significant increase, with goodwill rising to $308.5 million from $57.9 million, largely due to the acquisition of Fusus, LLC.
- 7Axon completed the acquisition of Dedrone Holdings, Inc. in October 2024 for approximately $400 million, further expanding its presence in airspace security.
- 8Remaining performance obligations totaled $7.7 billion as of September 30, 2024, indicating substantial future contracted revenue.