QV Alert – Axon Enterprises, Policing For The AI Era

Taser company, Axon Enterprises, is a wonderful business.

Axon is proud to report strong third quarter results and raise our outlook for the remainder of the year once again. Robust demand for our products and services remains driven by our innovative product leadership and deep customer relationships. We delivered over 30pc annual revenue growth in each of the first three quarters of 2024, marking our 11th consecutive quarter of growth above 25pc, achieved third quarter net income margin of 12.3pc and Adjusted EBITDA margin of 26.7pc — our highest in over three years. TASER revenue of $222m grew 36pc year over year, driven by demand for TASER 10 and associated cartridges and services. Axon Cloud & Services revenue of $203m grew 36pc year over year. Strength in Axon Cloud & Services was driven by new customer adoption of Axon Evidence and continued expansion with our existing customers, supporting increased net revenue retention of 123pc. Sensors & Other revenue of $120m increased 18pc year over year, driven by record demand for Axon Body cameras, with more than 100,000 units shipped in the quarter. Axon’s third quarter results demonstrate strong product-market fit and support our increased outlook. We expect fourth quarter revenue in the range of $560m to $570m, representing over 30pc year-over-year growth at the midpoint. We expect fourth quarter Adjusted EBITDA in the range of $130m to $135m, or approximately 23.5pc Adjusted EBITDA margin. Our fourth quarter guidance implies full year 2024 revenue of approximately $2.07bn, representing over 32pc annual growth and full year Adjusted EBITDA margin of approximately 24.6pc. We provide more detail on our product vision, most recent financial performance and improved outlook, below.

Axon Enterprises, shareholder letter, Q3 2024, 7 November 2024

Axon Enterprise is revolutionising policing in the USA like Anduril and Palantir promises to revolutionise the military. It is a more exciting company than you might imagine.

“Axon AI represents not just a single product, but a commitment to continuous innovation for our customers. We have developed a suite of AI-powered products and solutions designed to evolve with the demands of modern law enforcement— and our portfolio is only growing. As new capabilities emerge, we intend to integrate them seamlessly into our hardware and software solutions, enhancing our customers’ workflows. This will enable officers to work smarter, faster, and more efficiently—driving real change in public safety.”

Axon Enterprises, shareholder letter, Q3 2024, 7 November 2024

Innovation proceeds apace.

Axon’s innovative momentum extends beyond AI into drones. and robotics, where we are leading the way to power drone as first responder (DFR) operations. We are thrilled to announce the closing of our acquisition of Dedrone, bringing integrated airspace security technology — including comprehensive protection, detection, identification and mitigation of unauthorized drones.

Axon Enterprises, shareholder letter, Q3 2024, 7 November 2024

Shareholder Recommendations (12 December 2024)

Axon Enterprises. AXON