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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
Revenue by Segment
TASER Revenue
CapyFin.comSoftware & Services Revenue
CapyFin.com 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