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Mar 31, 2023
Axon Q1 2023 Earnings Report
Axon's Q1 2023 earnings were reported with revenue up 34% YOY and raised outlook.
Key Takeaways
Axon reported a strong start to 2023 with record quarterly revenue of $343 million, up 34% year over year, driven by strong demand for Axon Cloud SaaS services, Axon Fleet 3, and the TASER 7 platform. The company raised its full year outlook to 22% revenue growth and maintained its 20% Adjusted EBITDA margin.
Axon Cloud revenue of $116 million, up 51% year-over-year.
Annual Recurring Revenue grew 49% to $520 million.
Net income of $45 million supported Adjusted EBITDA of $65 million.
Full year outlook raised to 22% revenue growth, maintaining 20% Adjusted EBITDA margin.
Axon
Axon
Axon Revenue by Segment
Revenue by Segment
TASER Revenue
CapyFin.comSoftware & Services Revenue
CapyFin.com Forward Guidance
Axon's full year 2023 revenue expectation has improved to a range of $1.44 billion to $1.46 billion, reflecting approximately 22% year over year growth at the midpoint. We are maintaining our expectation for Adjusted EBITDA margin of 20% in 2023.
Positive Outlook
- Expects stock-based compensation expense to be approximately $141 million for the full year.
- Expects 2023 CapEx to be in the range of $50 million to $65 million.
- Investments in TASER 10 automation and capacity expansion.
- Cartridge capacity and lab enhancements.
- Global facility build-out and upgrades, including warehousing support for global shipping facilities.
Challenges Ahead
- Stock-based compensation expenses may vary based on changes in the actual timing of attainment of certain operational or market capitalization 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.
- Revenue and Adjusted EBITDA are subject to risks and uncertainties.
- The ability of law enforcement agencies to obtain funding, including based on tax revenues.
- The impacts of inflation, macroeconomic conditions and global events.
Revenue & Expenses
Visualization of income flow from segment revenue to net income