NEW YORK - Axon (NASDAQ:AXON) delivered a robust financial performance in the first quarter, surpassing Wall Street expectations with a significant increase in revenue and earnings per share (EPS).
The company reported a first-quarter EPS of $1.15, which was $0.20 higher than the analyst consensus of $0.95. Revenue for the quarter reached $460.74 million, exceeding the consensus estimate of $441.57 million and marking a 34% increase from the same quarter last year.
The impressive results were driven by a 52% surge in Axon Cloud & Services revenue, which totaled $176 million, and a 50% growth in annual recurring revenue, reaching $825 million.
Additionally, the company saw a 33% year-over-year (YoY) increase in TASER revenue, amounting to $179 million, fueled by strong demand for the TASER 10 device. Sensors & Other revenue also grew by 14% YoY to $106 million, attributed to the adoption of Axon Body 4.
Shares fell 1.4% in afterhours trading.
Axon's net income stood at $133 million, supporting an adjusted net income of $89 million and Adjusted EBITDA of $109 million. The company's net income margin improved to 28.9%, while the Adjusted EBITDA margin reached 23.6%. These margins reflect Axon's enhanced profitability and operational efficiency.
In light of the strong performance, Axon has raised its full-year revenue outlook to a range of $1.94 billion to $1.99 billion, up from the previous forecast of $1.88 billion to $1.94 billion. This updated guidance surpasses the analyst consensus of $1.934 billion, indicating confidence in the company's continued growth trajectory.
Axon's success this quarter can be attributed to the adoption of new products by existing customers, the attraction of new users to its ecosystem, and robust software growth sustained by innovative product development.
The company highlighted its recent advancements in artificial intelligence (AI) and virtual reality (VR) as key factors contributing to its growth. Moreover, Axon's planned acquisition of Dedrone is expected to further enhance its product offerings and expand its total addressable market.
Rick Smith, Axon's Founder and CEO, expressed the company's commitment to innovation, stating, "Our philosophy across all of these things is simple: Saving Seconds Saves Lives." He emphasized the potential impact of products like Draft One, an AI-driven tool that quickly drafts police report narratives, on improving productivity and the judicial process.
As Axon continues to execute its strategy to build a modern technology ecosystem for public safety, it remains focused on delivering improved financial performance and fostering a trusting partnership with its customers. The company's consistent growth and increased scale are a testament to its strategic execution and dedication to public safety innovation.
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