•
Mar 31, 2020
Axon Q1 2020 Earnings Report
Axon demonstrated resilience with revenue up 27% year-over-year, driven by strong international sales and demand for software and sensors.
Key Takeaways
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.
Axon
Axon
Axon Revenue by Segment
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.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income