Companies /Industrials

Axon Enterprise Inc

NASDAQ: AXON Aerospace & Defense
$611.20
â–² $3.72 (+0.61%) today
Markets closed · 5:12am ET

Q4 2022 Earnings

Reported Feb 28, 2023, 4:04pm ET · SEC source
$0.70
Beat +37.25%
EPS · est. $0.51
$336.1M
Beat +9.90%
Revenue · est. $305.9M
−2.0%
Trailing market
AXON vs S&P since report
3 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−4%0+4%Feb 28Mar 1report 4:04pm ETearnings−0.2%+6.3%
−4%0+4%Feb 28Mar 1earnings−0.2%+6.3%
AXON +6.3%S&P 500 −0.2%
−4%0+4%Feb 28Mar 1report 4:04pm ETearnings−0.5%+6.3%
−4%0+4%Feb 28Mar 1earnings−0.5%+6.3%
AXON +6.3%NASDAQ −0.5%
−5%0+5%Feb 27Mar 8report 4:04pm ETearnings+0.8%+6.0%
−5%0+5%Feb 27Mar 8earnings+0.8%+6.0%
AXON +6.0%S&P 500 +0.8%
−5%0+5%Feb 27Mar 8report 4:04pm ETearnings+1.7%+6.0%
−5%0+5%Feb 27Mar 8earnings+1.7%+6.0%
AXON +6.0%NASDAQ +1.7%
+10.36%
Day of report
−1.24%
Next session
+0.33%
One week
+1.71%
30 days

S&P 500 over the same 30 days: +3.71%.

Did AXON Beat Earnings? Q4 2022 Results

Axon Enterprise delivered a standout fourth quarter to close fiscal 2022, posting earnings of $0.70 per diluted share on a non-GAAP basis, well ahead of the $0.51 consensus estimate, while revenue of $336.14 million beat expectations by 9.90% and grew 54.5% year over year. The primary engine behind that growth was Axon Cloud, where Q4 revenue climbed 65% year over year to $113.54 million, helping push annual recurring revenue to $473.00 million and reflecting a net revenue retention rate of 121% that signals strong customer expansion within the existing base. Full-year revenue crossed $1.19 billion, up 38%, and adjusted EBITDA reached $232.31 million at a 19.5% margin, while free cash flow of $119.42 million in the quarter underscored the company's improving cash generation profile. Looking ahead, management guided 2023 revenue to at least $1.43 billion, targeting a 20% adjusted EBITDA margin, with a longer-range goal of reaching $2.00 billion in revenue and 25% adjusted EBITDA margins by 2025.

Key Takeaways
  • Strong domestic demand for premium integrated bundles driving 66% domestic revenue growth in Q4
  • Axon Cloud software suite as top growth driver with 50% annual revenue growth
  • Strong Axon Fleet in-car camera shipments reflecting high demand and improved inventory execution
  • Subscription transition: 79% of TASER devices sold on subscription in Q4
  • Net revenue retention of 121% reflecting strong upselling and minimal attrition
  • Annual Recurring Revenue growth of 45% to $473 million

Forward Guidance & Outlook

For 2023, Axon expects revenue growth of approximately 20%, or revenue of at least $1.43 billion, and is targeting Adjusted EBITDA margin of 20% (implying $286 million in Adjusted EBITDA). Stock-based compensation expense is expected to be approximately $140 million. CapEx is expected in the range of $50–$65 million. For 2025, the company aspires to achieve revenue of at least $2 billion (reflecting 20%+ annual growth), Adjusted EBITDA margins of approximately 25% (about 500 basis points of improvement over three years), and adjusted free cash flow conversion on Adjusted EBITDA of at least 60%. The company is targeting annual dilution CAGR of approximately 3% for 2025 and beyond.

AXON YoY Financials

Q4 2022 vs Q4 2021 · SEC filings Q4 2021 Q4 2022
$0$100.0M$200.0M$300.0M$217.6M$336.1MRevenue$135.1M$205.7MGross Profit$7.9M$22.5MOperating Income$7.0M$29.2MNet Income
$0$100.0M$200.0M$300.0MRevenueGross ProfitOperating IncomeNet Income

AXON Revenue by Segment

Connected Devices
Software & Services$113.5M+65.3%
TASER$136.7M+31.6%
Platform Solutions
Personal Sensors

AXON Revenue by Geography

United States
Rest of World

Figures from SEC filings and company reports. Not investment advice.