Axon Enterprise reports $2.1bn revenue in 2024 and double net income in Q4

ByInvestment Club

Overview

Axon Enterprise delivered an exceptional full year 2024 performance, reporting record-breaking financial growth and expanding its technological capabilities. The company achieved total revenue of $2.1bn, marking a 33% year-over-year increase, marking the third consecutive year of 30%+ annual growth. This strong performance was fueled by increased adoption of Axon’s AI-driven solutions, cloud services, and growing demand for its public safety products.

CEO and founder of Axon, Rick Smith, stated: “We see ourselves as a technology company committed to making the world a safer, less dangerous place. We’re focused on providing tools that help prevent violence, hold people accountable and address the complex challenges of modern society.”

Q4 2024 vs. Q4 2023:

  • Revenue reached $575m (+34% YoY), marking the 12th consecutive quarter of 25%+ growth.
    • Axon Cloud & Services revenue grew to $230m (+41% YoY), accounting for 40% of total revenue, with gross margin of 73.7% (compared to 74.7% in Q4 2023).
    • Sensors & Other revenue rose to $123.5m (+18% YoY), primarily driven by strong demand for Axon Body 4 and Fleet.
    • TASER segment revenue climbed to $221m (+37% YoY), supported by strong adoption of TASER 10, with gross margin of 61.3% (+420bp vs. 2023).
  • Net income was more than double, reaching a value of $135m (+137% YoY), reflecting a 23.5% net income margin, with diluted EPS of $1.67 (compared to $0.75 in Q4 2023).
  • Adjusted EBITDA reached $142m (+56% YoY), with a 24.6% margin.
  • Operating cash flow was $250m (+79% YoY), supporting free cash flow of $225m, highlighting strong operational flexibility.

Full-Year 2024 performance:

  • Total revenue recorded a value of $2.1bn (+33% YoY), marking a third consecutive year of strong growth.
    • Axon Cloud & Services revenue jumped to $806m (+44% YoY), reinforcing the company’s software-first transformation.
    • Sensors & Other revenue was also on a significant upward trend, reaching the value of $457.5m (+18% YoY).
    • TASER segment revenue increased to $819m (+33% YoY), with TASER shipments over 200,000 devices, 300,000 body cameras and 9m cartridges delivered.
  • Annual recurring revenue increased to $1.0bn (+37% YoY), primarily driven by new users adopting cloud products and upgrades to premium offerings.
  • Net income rose to $377m (+115% YoY), with net income margin of 18.1% and with diluted EPS of $4.80 (compared to $2.33 in 2023).
  • Adjusted EBITDA was $521m (+57% YoY), with a 25% margin (vs. 21.2% margin in 2023).
  • Annual bookings exceeded $5bn, driving total future contracted bookings to $10.1bn.

For 2025, Axon anticipates total revenue in the range of $2.55bn to $2.65bn, representing approximately 25% annual growth at the midpoint. Adjusted EBITDA is expected to range between $640m and $670m, maintaining a 25% margin. The company expects continued expansion of its AI-powered solutions, further integration of real-time crime center capabilities, and broader adoption of its cloud and security platforms. Axon remains committed to sustained innovation and long-term value creation for stakeholders.

After the main results were reported, investor sentiment turned very positive in the after-hours, so that AXON shares experienced a significant price appreciation, by almost +13%, probably also attributed to the latest discussions regarding the war in Ukraine. Even so, the global uncertainties of the last week caused the price to drop by approximately -29%, but at the level of the last year, it is still at almost +83%.

Source: TradingView

Author: Ionuț-Adrian Lazar

Similar Posts