Axon Q3 2023 Earnings Report
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.
Axon
Axon
Axon 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