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Jun 30, 2022

Axon Q2 2022 Earnings Report

Axon's revenue increased driven by strong demand for its cloud SaaS solutions, body and fleet systems, and TASER platform.

Key Takeaways

Axon reported record revenue of $286 million, a 31% increase year over year, driven by strong demand for its cloud SaaS solutions, body and fleet systems, and TASER platform. The company raised its full-year outlook and saw SaaS ARR increase by 41% to $368 million. Diluted EPS was $0.71 and non-GAAP diluted EPS was $0.44.

Record revenue of $286 million, up 31% year over year.

SaaS ARR of $368 million, up 41% year over year.

Diluted EPS of $0.71 and non-GAAP diluted EPS of $0.44.

Future contracted revenue surpasses $3 billion.

Total Revenue
$286M
Previous year: $219M
+30.5%
EPS
$0.44
Previous year: $0.38
+15.8%
Annual Recurring Revenue
$368M
Future Contracted Revenue
$3.33B
Previous year: $2.04B
+63.2%
TASER Devices on Recurring Payment Plan
76%
Gross Profit
$174M
Previous year: $138M
+26.1%
Cash and Equivalents
$213M
Previous year: $266M
-20.1%
Free Cash Flow
$6.56M
Previous year: $20.7M
-68.3%
Total Assets
$1.93B
Previous year: $1.53B
+26.5%

Axon

Axon

Axon Revenue by Segment

Forward Guidance

Axon expects full year 2022 revenue to be in the range of $1.07 billion to $1.12 billion. Adjusted EBITDA is expected to be at the higher end of the previously communicated range of $190 million to $200 million. Adjusted free cash flow is expected to be in the range of $125 million to $145 million.

Positive Outlook

  • Revenue expectation improved to a range of $1.07 billion to $1.12 billion.
  • Revenue expectation reflects approximately 27% annual growth at the midpoint.
  • Adjusted EBITDA is expected to be at the higher end of the previously communicated range of $190 million to $200 million.
  • Adjusted free cash flow range is maintained at $125 million to $145 million in 2022.
  • Net campus investments in 2022 are expected to be less than $25 million.

Challenges Ahead

  • Facing higher labor costs.
  • Facing higher freight costs.
  • Facing higher materials costs.
  • Working to offset cost increases with automation.
  • Working to offset cost increases with additional distribution facilities and engineering R&D on products to lower component costs.

Revenue & Expenses

Visualization of income flow from segment revenue to net income