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Jun 30, 2023
Axon Q2 2023 Earnings Report
Axon's Q2 2023 earnings were released, revealing a 31% increase in revenue, reaching $375 million, and the company raised its full year outlook.
Key Takeaways
Axon delivered a strong first half of 2023 with Q2 revenue growth of 31% year over year, driven by strength in Axon Cloud software, Axon Fleet and the initial ramp of our TASER 10 platform. The company achieved its sixth consecutive quarter of GAAP profitability and raised its full year revenue outlook to $1.51 billion to $1.53 billion.
Revenue grew 31% to $375 million.
Axon Cloud & Services revenue grew 62% year over year to $133 million.
Annual recurring revenue grew 52% to $559 million.
Net income of $12 million supported Adjusted EBITDA of $82 million.
Revenue by Segment
Forward Guidance
Axon's full year 2023 revenue is expected to be in the range of $1.51 billion to $1.53 billion, reflecting approximately 27% to 29% growth year over year. The company is maintaining its expectation for Adjusted EBITDA margin of 20% in 2023.
Positive Outlook
- Increased visibility and confidence upon the successful market introduction of two new products, TASER 10 and Axon Body 4.
- Continued momentum in Fleet cameras and software.
- Adjusted EBITDA dollars to a range of $302 million to $306 million.
- Diversification into new markets by adding new types of customer profiles, or users, and by adding to our core customer base.
- Stock-based compensation expenses to be approximately $140 million for the full year.
Challenges Ahead
- Exposure to cancellations of government contracts due to appropriation clauses, exercise of a cancellation clause, or non-exercise of contractually optional periods.
- The ability of law enforcement agencies to obtain funding, including based on tax revenues.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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