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Jun 30, 2020
Axon Q2 2020 Earnings Report
Axon reported strong revenue growth, driven by body camera and cloud software solutions, and international expansion.
Key Takeaways
Axon Enterprise reported a 26% year-over-year increase in revenue, reaching $141 million. International revenue grew by 80% year-over-year. Annual Recurring Revenue (ARR) also saw a significant increase of 42%. GAAP EPS was ($0.51) and Non-GAAP EPS was ($0.01).
Revenue increased by 26% year-over-year.
International revenue grew by 80% year-over-year.
Annual Recurring Revenue (ARR) increased by 42% year-over-year to $183 million.
Total company future contracted revenue grew to $1.34 billion.
Axon
Axon
Axon Revenue by Segment
Revenue by Segment
TASER Revenue
CapyFin.comSoftware & Services Revenue
CapyFin.com Forward Guidance
For the third quarter 2020, the company expects revenue growth of approximately 15% year over year, supporting an Adjusted EBITDA margin of approximately 12%.
Positive Outlook
- TASER and body camera bookings are trending ahead of April in the first weeks of Q3 2020.
- The company has a loaded pipeline for the back half of the year.
- A strong Q3 2020 and even stronger Q4 2020 are expected.
- The company is tracking toward the range given at the start of the year.
- There is a strong pipeline of Officer Safety Plan 7+ opportunities that are expected to close in the next six months.
Challenges Ahead
- There is substantial uncertainty due to the COVID-19 pandemic.
- US domestic customers often lacked bandwidth to make purchasing decisions due to personnel outages because of COVID-19, employee safety and caution about uncertain budgets.
- Shut-down activity could bring renewed caution from police departments on budgeting.
- COVID-19 risk remains.
- Q3 2020 EBITDA margin will be affected by expected shipments of lower-margin body cameras to the company's largest customers.
Revenue & Expenses
Visualization of income flow from segment revenue to net income