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Sep 30, 2023
Axon Q3 2023 Earnings Report
Axon's Q3 2023 earnings were released, revealing a 33% increase in revenue to $414 million and an improved outlook for the year.
Key Takeaways
Axon reported strong Q3 2023 results with revenue up 33% year-over-year to $414 million. The company raised its full-year revenue outlook to approximately $1.55 billion, representing 30% annual growth, and expects a full-year Adjusted EBITDA margin just above 20%. Key growth drivers included Axon Cloud & Services, which increased 55% year-over-year, and the TASER segment, which grew 12% driven by the ramp of TASER 10.
Annual Recurring Revenue (ARR) grew 54% year-over-year to $619 million, supported by a Net Revenue Retention (NRR) of 122%.
International revenue increased by 52%, bolstered by a growing pipeline.
Net income reached $59 million, contributing to an Adjusted EBITDA of $92 million.
TASER 10 demand is exceeding expectations, indicating a successful product launch.
Revenue by Segment
Forward Guidance
Axon provided its outlook for Q4 2023 and full year 2023, expecting continued revenue growth and strong Adjusted EBITDA margins.
Positive Outlook
- For the fourth quarter, the company expects to report revenue within the range of $417 million to $420 million.
- Axon expects an Adjusted EBITDA margin of approximately 20% in the fourth quarter.
- The full-year 2023 revenue expectation has improved to approximately $1.55 billion, or 30% annual growth.
- The company's Q4 2023 Adjusted EBITDA margin expectation of approximately 20% implies a full-year Adjusted EBITDA margin of 20.8%.
- For 2024 and beyond, Axon remains confident in its ability to scale globally, penetrate new customer segments, and introduce new products that drive highly profitable revenue growth.
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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