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Dec 31, 2019
Axon Q4 2019 Earnings Report
Axon reported a strong finish to 2019 with revenue up 50% and SaaS ARR increased by 49%.
Key Takeaways
Axon's Q4 2019 revenue grew by 50% to $172 million, driven by demand for Axon Body 3, TASER 7, and cloud software. Adjusted EBITDA more than tripled to $38 million, representing a 22% margin.
Record quarterly revenue of $172 million, up 50% year over year, included $26 million of Axon Body 3 hardware shipments.
Adjusted EBITDA was a record $38 million, representing 22% margin on revenue.
Annual recurring revenue grew 49% year over year to $161 million.
Total company future contracted revenue grew to $1.23 billion.
Revenue by Segment
Forward Guidance
For the full year 2020, Axon expects to achieve revenue in the range of $615 million to $625 million and Adjusted EBITDA in the range of $100 million to $105 million.
Positive Outlook
- Revenue in the range of $615 million to $625 million.
- Q1 2020 revenue will increase approximately 13% year-over-year
- 2020 revenue will accelerate in the second half of the year, with a back-half weighting similar to 2019.
- Adjusted EBITDA in the range of $100 million to $105 million.
- We expect a normalized tax rate of 20% to 25%
Challenges Ahead
- Adjusted EBITDA guidance reflects modest gross margin improvement over 2019, which will be partially offset by camera hardware shipments to major city customers.
- Adjusted EBITDA guidance reflects accelerated investments to take advantage of total addressable market expansion opportunities in new product categories.
- Adjusted EBITDA guidance excludes expected legal costs of up to $15 million associated with litigation involving the FTC, which we intend to treat as an add-back to Adjusted EBITDA.
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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