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Jun 30, 2021

Axon Q2 2021 Earnings Report

Axon's Q2 2021 performance was strong, with significant revenue growth and increased international presence.

Key Takeaways

Axon Enterprise reported a strong Q2 2021, with revenue up 55% year-over-year to $219 million. International revenue grew 60%, and the company raised its full-year outlook. The company's performance was driven by increasing global demand for its life-saving technology, including TASER devices and body cameras.

Revenue of $219 million grew 55% year over year.

International revenue grew 60% year over year and international bookings nearly tripled versus Q2 2020.

Annual Recurring Revenue (ARR) grew 42% year over year to $260 million.

Total company future contracted revenue surpassed $2 billion.

Total Revenue
$219M
Previous year: $141M
+54.9%
EPS
$0.38
Previous year: -$0.01
-3900.0%
Future Contracted Revenue
$2.04B
Previous year: $1.34B
+52.2%
Gross Profit
$138M
Previous year: $88.2M
+56.4%
Cash and Equivalents
$266M
Previous year: $319M
-16.6%
Free Cash Flow
$20.7M
Previous year: -$25.8M
-180.1%
Total Assets
$1.53B
Previous year: $1.23B
+23.8%

Axon

Axon

Axon Revenue by Segment

Forward Guidance

Axon expects to achieve revenue in the range of $825 million to $850 million and Adjusted EBITDA to a range of $155 million to $160 million for 2021.

Positive Outlook

  • Revenue in the range of $825 million to $850 million is expected.
  • Adjusted EBITDA is expected to be in the range of $155 million to $160 million.
  • The company intends to continue investing for growth.
  • The company's investments are yielding results ahead of expectations.
  • The business in 2022 includes approximately $960 million in revenue.

Challenges Ahead

  • Stock-based compensation expense is expected to be more than $275 million for the full year.
  • Forecasting stock-based compensation expense is inherently difficult.
  • Expectations for capital expenditures of approximately $65 million to $70 million in 2021 are unchanged.
  • Forward-looking statements are subject to risks and uncertainties.
  • The company is exposed to cancellations of government contracts due to appropriation clauses.

Revenue & Expenses

Visualization of income flow from segment revenue to net income