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Sep 30, 2021
Axon Q3 2021 Earnings Report
Axon's Q3 2021 results were driven by strong performance across the board, with revenue growth of 39% and GAAP net income of $49 million, which supported Adjusted EBITDA of $51 million.
Key Takeaways
Axon reported strong Q3 2021 results, with record bookings of $488 million, up 54%. Revenue increased by 39% to $232 million, and GAAP net income was $49 million. The company also raised its 2022 revenue outlook to $1 billion.
Revenue grew 39% year-over-year to $232 million.
GAAP net income was $49 million, impacted by a $51 million tax benefit.
Annual recurring revenue grew 42% to $289 million.
Record Q3 bookings of $488 million were up 54%.
Axon
Axon
Axon Revenue by Segment
Revenue by Segment
TASER Revenue
CapyFin.comSoftware & Services Revenue
CapyFin.com Forward Guidance
Axon expects to achieve revenue at the high end of its previously communicated range of $840 million to $850 million for 2021. The company also expects stock-based compensation expense to be more than $300 million for the full year and anticipates at least $1.0 billion in revenue for 2022.
Positive Outlook
- Revenue at the high end of the previously communicated range of $840 million to $850 million.
- Full year revenue of $850 million represents 25% growth over 2020.
- TASER 7 demand remains exceptionally strong and backlog continues to grow.
- Adjusted EBITDA to a range of $163 million to $168 million, from a range of $155 million to $160 million, previously.
- Strengthening view of the business in 2022 includes at least $1.0 billion in revenue.
Challenges Ahead
- Approximately $30 million of previously anticipated Q4 2021 TASER segment revenue will shift into the first half of 2022 resulting from industry-wide chip shortages that impacted TASER 7 platform.
- Q4 2020 benefitted from a $20 million TASER 7 order from an international customer.
- Stock-based compensation expense to be more than $300 million for the full year.
- Capital expenditures of approximately $65 million to $70 million in 2021 are unchanged.
- Inherent difficulty of forecasting certain types of expenses such as stock-based compensation and income tax expenses, which affect net income but not Adjusted EBITDA.
Revenue & Expenses
Visualization of income flow from segment revenue to net income