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Sep 30, 2020
Axon Q3 2020 Earnings Report
Axon's Q3 2020 earnings were marked by a 27% revenue increase, ARR exceeding $200 million, and a 56% surge in total bookings.
Key Takeaways
Axon reported a strong Q3 2020, with revenue growth of 27% year-over-year. Annual recurring revenue (ARR) topped $200 million, and total bookings increased by 56% year-over-year. The company is on track to exceed its original 2020 financial targets.
Revenue grew by 27% year over year.
ARR topped $200 million with 44% growth.
Total bookings increased by 56% year over year.
Federal bookings increased 400% year over year, driven by targeted investments in the US federal law enforcement channel.
Axon
Axon
Axon Revenue by Segment
Forward Guidance
Axon provided revenue and Adjusted EBITDA guidance for Q4 2020 and initial revenue and Adjusted EBITDA guidance for 2021.
Positive Outlook
- Tracking to Q4 2020 revenue of $175 million to $185 million, implying full-year revenue of $630 million to $640 million.
- Expect fourth quarter gross margins in line with the third quarter.
- Expect to achieve Adjusted EBITDA in Q4 2020 of $30 million to $35 million, implying full-year Adjusted EBITDA of about $122 million to $127 million.
- Initial view of the business in 2021 includes $720 million to $750 million in revenue.
- Initial view of the business in 2021 includes $120 million to $130 million in Adjusted EBITDA.
Challenges Ahead
- The impact of COVID-19 remains fluid, which could bring renewed caution from police departments on budgeting.
- Stock-based compensation expense to be at least $107 million for the full year.
- Difficult to forecast future stock-based compensation expense.
- Reductions in economic activity could bring renewed caution from police departments on budgeting.
- Potential global impacts of the COVID-19 pandemic.
Revenue & Expenses
Visualization of income flow from segment revenue to net income