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Dec 31, 2022

Axon Q4 2022 Earnings Report

Axon closed 2022 with strong demand and GAAP profitability.

Key Takeaways

Axon's Q4 2022 revenue grew above 50%, supported by financial discipline and fourth consecutive quarter of GAAP profitability. The company launched its moonshot goal and advanced its mission to protect life.

Axon delivered record revenue growth of 38% to $1.19 billion and net income of $147 million in 2022.

Axon Cloud software suite continues to be top growth-driver, with revenue up approximately 50% in 2022.

Full year operating cash flow of $235 million supported adjusted free cash flow generation of $195 million.

In Q4 2022, Axon successfully completed first-ever debt raise, with total net proceeds of approximately $603 million.

Total Revenue
$336M
Previous year: $218M
+54.5%
EPS
$0.7
Previous year: $0.46
+52.2%
Annual Recurring Revenue
$473M
Previous year: $327M
+44.4%
Future Contracted Revenue
$4.65B
Previous year: $2.8B
+66.0%
Gross Profit
$206M
Previous year: $135M
+52.3%
Cash and Equivalents
$354M
Previous year: $356M
-0.7%
Free Cash Flow
$119M
Previous year: -$455K
-26346.6%
Total Assets
$2.85B
Previous year: $1.69B
+68.9%

Axon

Axon

Axon Revenue by Segment

Forward Guidance

Axon expects to deliver revenue growth of approximately 20% in 2023, or revenue of at least $1.43 billion. We are targeting 2023 Adjusted EBITDA margin of 20%, which implies $286 million in Adjusted EBITDA.

Positive Outlook

  • Revenue growth of approximately 20% in 2023
  • Revenue of at least $1.43 billion in 2023
  • Targeting 2023 Adjusted EBITDA margin of 20%
  • Implies $286 million in Adjusted EBITDA
  • Increasing focus on both gross margins and Adjusted EBITDA margins

Challenges Ahead

  • Stock-based compensation expense to be approximately $140 million for the full year
  • 2023 CapEx to be in the range of $50 million to $65 million
  • Investments in TASER 10 automation and capacity expansion
  • Global facility build-out and upgrades
  • Inherent difficulty of forecasting certain types of expenses and gains

Revenue & Expenses

Visualization of income flow from segment revenue to net income