Axon Q4 2023 Earnings Report
Key Takeaways
Axon's Q4 2023 revenue grew by 28.6% year over year, reaching $432 million, driven by strong demand across product categories. The company's net income was $57 million, or $0.75 per diluted share, while non-GAAP net income was $85 million, or $1.12 per diluted share. Axon Cloud software was the primary driver of revenue growth.
Quarterly revenue of $432 million exceeded expectations with 28.6% year-over-year growth.
Total company gross margin of 61.1% declined 10 basis points year over year.
Net income of $57 million, or $0.75 per diluted share, supported non-GAAP net income of $85 million, or $1.12 per diluted share.
Adjusted EBITDA of $91 million reflected an Adjusted EBITDA margin of 21.1%.
Axon
Axon
Axon Revenue by Segment
Forward Guidance
Axon expects full year 2024 revenue of $1.88 billion to $1.94 billion, representing approximately 20% to 24% annual growth. Axon expects a full year 2024 Adjusted EBITDA dollars of $410 million to $430 million, implying continued Adjusted EBITDA margin expansion from 2023.
Positive Outlook
- Axon expects full year 2024 revenue of $1.88 billion to $1.94 billion, representing approximately 20% to 24% annual growth.
- Axon expects a full year 2024 Adjusted EBITDA dollars of $410 million to $430 million, implying continued Adjusted EBITDA margin expansion from 2023.
- We expect stock-based compensation expenses to be approximately $205 million to $220 million for the full year.
- Full year expected stock based compensation expense includes approximately $42 million in expenses related to an enhanced equity compensation opportunity provided to employees whose compensation is under a specified threshold.
- We expect 2024 CapEx to be in the range of $60 million to $75 million.
Challenges Ahead
- The following forward-looking statements reflect Axon’s expectations as of February 27, 2024, and are subject to risks and uncertainties.
- We provide Adjusted EBITDA guidance, rather than net income guidance, due to the inherent difficulty of forecasting certain types of expenses and gains such as stock-based compensation, income tax expenses and gains or losses on marketable securities and strategic investments, which affect net income but not Adjusted EBITDA.
- We are unable to reasonably estimate the impact of such expenses, which could be material, on net income.
- Because our stock-based compensation expenses may vary based on changes in our stock price or the actual timing of attainment of certain metrics, it is inherently difficult to forecast future stock-based compensation expense, which may also be materially affected by any future stock-based compensation plans, subject to shareholder approval.
- Our 2024 CapEx plans include investments in TASER 10 automation and capacity expansion, including cartridge capacity and lab enhancements and global facility build-out and upgrades, including warehousing support for global shipping facilities.
Revenue & Expenses
Visualization of income flow from segment revenue to net income