Axon Beats Expectations, Raises Guidance, Stock Soars
Last year, Axon set a goal of $2 billion revenue for 2025, and now they say they will beat that, just months after acquiring Fusus and acquiring Dedrone.
Inside this report, IPVM examines the most recent financial results of Axon, now one of the largest physical security companies, and especially its growth with several critical acquisitions in the past year, including Sky-Hero, Fusus, and Dedrone, as well as its long-established Taser business.
Plus, see Axon Draft One Generative AI Sales "Game Changer" Analyzed.
Executive *******
** **** **** ** ***"***** ** ******" *** $* ******* revenue *********** **** **** ******* ********** *********, the ******* ********* ** *** ** 2024 ******** ******* **** ** *** projects ** **** $* ******* - $2.05 ******* ** ******* ** ****, exceeding *** ****** **** ** ***** ******* ** 2025*** **** *****, *** ******* *** stock ***** ** **** **%+ *** day ***** *** ******** *******.
*** ******* ****** *** ***** ****-**** guidance ** ** **** ******** ********* and **** ******* ** **% *** in ** ****, ****** *** ****** software ****** *** ****** ************* ** large ******* **** ** *******, *************, and ********** **********. ***** *** **% overall ******, **** **** *** ******** grew **** ******** ** **% *** and **** ******** ********** ***** ****** half ** *** ****** ** *** software ******* ** ** ****."
**** ** ***** ** ******** *** or *****, **** **** **** ***** it ** *** ******, ** ** in * "********* ********" **** ******. In *** ******* ***** ***********, ** is ****** **** ***** ** *** technology, **** ** ***** ***, ** law *********** ** *****-*******.
Stock ** **.**%
****'* *********** ******* *** ***** ***** to **** **.**% ** *** *** after *** ** **** ******** ****, while *** *&* *** *** **** 0.77%:
** *** **** ***, ****'* ***** was ** ******* *.*%:
***** *** ********* ** ****, **** was ** **** **** **%, ******* the ****** ** **%+:
Raising ******** ** $*+ ******* ** ****
***** ******* ******** ********* ** **** revenue *** ******** *** *****, **** raised *** **** ******* ******** **** the ******** $*.** ******* - $*.** billion ** $*+ *******, ********* ** beat *** **** $* ******* ******* goal *** ** **** *** **** early. ****'* *** & *** ******** Bagley ******** ** ****** *** **** revenue *** ****** ********:
** *** ******* ** ***** ******** again ** **** ******* *** ******** EBITDA. *** **** **** **** ******** revenue ********is ********** ** $* ******* ** $*.** *******, which represents 29.5% annual growth at the midpoint. This is up from our prior guidance of $1.94 billion to $1.99 billion, which represented approximately 26% annual growth at the midpoint. And it's a result of the strong performance we saw in Q2 and the strong pipeline in the second half of the year.
** ****** **** **** **** ******** EBITDA ** $*** ******* ** $*** million, ******** ** ******** ****** ****** of **.*% ** *** ********. **** is ** **** *** ***** ******** guidance ** $*** ******* ** $*** million *** ** ******* *** ******** margin ** ** ***** ******.
Q2 **** ******* $*** *******, ** **% ***
****'* ** **** ******* *** $*** million, * **% *** ****** ** top ** *** **% ****** ** Q2 ****, ***** *** ** ********** a **** **********. *** *******'* *********, Josh *****, ****:
** *** *** ***** ******* **** over $*** ******* ** *******, * number **** *********** *** **** **** revenue **** * *** ***** ***. We ****** **** $* ******* ** new ********, ****** *** *******-**** ******** with *** ** ***** *** ***** customer, ****** *** *******-**** *********** ****.
Software *** ***** ******* *** *******
****'* ******** *** ***** ******** **** 47% *** ** ** ****, **** faster **** *** ******* ****** ** 35%. *** *******'* *** & *** Brittany ****** ****:
***** *** ******** ******* *** *******-******* segment ** **% ****-****-****. *** ******** growth ****** *** *** *** ********* to ***** *** ***** **** **% of ******* ****** **** ******** *** services ** **, ** **** **% last **** *** **% *** **** before.
*** **** ****** ** *** ******** business **** ***** *** ******* *** to ** **** ********-*******, ** ****** added:
*** ******** ****** ****** *** *** has ********* ** ***** *** ***** with **% ** ******* ****** **** software *** ******** ** **, ** from **% **** **** *** **% the **** ******.
Upselling ************* ** ***** & ***** *******
**** *** ***** ******* ***** ** this ********, **** * ****** ** in * *********** ********, ***** *** upselling ***** ** ** **** **** flexible:
**** ** ** *********** ******** ** that *** ****** ******** **** ***** through * *********** ** ****** **** important **** *** ****** ** ********* dollars. **, **** ****'** ** * procurement, * ***** *****'* * ******* customer ********* **, ****, ****, **** else ****** ** ** ******* ** now, ******* ** **'** ***** ** go ******* ****, ***'* ** ******* it, ***'* ** *** **********, *** we **** **** ***** ***** ***** to ***** **** **** **. *** then, * ***** **** ****'** ***** of *** ***** ** ***** **** is *********, **** *** ***** ** tech ***** ****'* ********* ****** *******.
**** ********* ***** **** ********** *** company's **** ** ****** ** *** state *** ***** ********** ******, **** as *** *** ***** *** ****:
* ***** **** *** ***** ** well, * *****, ***** *** ***** is * ****** ********* **** *******, international *** **********. *******, * ***** we've ****** ***** **** ************ ***** for ** ***** *** *****, **** we ******, ****** **** ** ** good ** ** ******** *** ******** and **** ********* **** **** **** market. *** * ***** *** **** Draft ***'* * ***** ******* ** that, *** *** ****'* ***** * very **** *** ** ****.
Taser/Body *** *********** *** ****** **** ********
******** ** ******* ****** *** ******** growth, ***** *** **** ****** ***** are ******* ** * *********** *** relatively ****** **** ** **%, *** Bagley ****:
***** ** *** **** **** * also *********** ** ********** **% ****-****-**** growth ** **** *** ***** *** sensors ******* **********.
*******, ** * ********** ***** ** Axon, *** ******* ******* *** ****** ***** *****, ***** **, ***** ** ********* ** *** "new *** ** **** ***** *******," is ** ****** ** *** **** of *** *******'* ***** *****, ***** 7:
****, *'** ******* ***** **** ****** on ***** ** *** ****** ************ demand *** *** ********. *** *** introductions **** *** **** **** **** ignited. ***** ** ** *** ******* selling ***** ****** ** *** *******. Not **** ** ****** ****** ** over ** *** **** ** ***** 7 ** *** ***** ****, *** we've **** -- **'** **** **** to ***** ********* **** ******* ***** launch. **'** ******** **** **** ***,*** units *******, *** ** **** * long ****** *****.
***** **** ***** **** *******, *************, and ********** ********** ********* *** ****** at *** *** ** ****'* ***** 10 *********, ********** *** *******'* ********* outside ** *** ********** ****** ** state *** ***** *** ***********:
********* * **** ************ *********** **** is **** *** *** **** ***** 10 ***** **** **** **** ********* outside ** *** ** ***** *** local ******** ****. ** **** * massive ***** **** **** ****** ***** and *****, *** ** **** *** strong ****** **** *** *********, ** other ******** **** *******, *************, *** from *********** ********* ** ****. *** order **** *** ***** ** ** strong ****** *** *****.
Growing ******** ** *******, *************, *** ********** **********
**** ********* ***** ******* ********** *** company's ******* ******** ** ***** ****** state *** ***** *** ***********. ** specified *** *** *******, *************, *** correction ******** ***** ***** ** **** times *** **** ** ****, *** type ** ********* **** **** ********** sells **:
** ** ******** ** *** ** much ******** *** ****** ******* ** state *** *****. *'* *** *****'* -- *** ******* ******* ** **** there ** ** *********** ****, *** then **** ** ** ******* *** in *************, *** ****end ** **** ***** ********* **** *** * *****, * *****, * ***** *** **** ** ****. And so, the pension for large volume orders is so much larger outside of the state and local customer base. And that's what we're starting to see. We saw a large correction -- correctional facility purchase. We're also seeing a lot of international governments for the first time really ordering our devices in larger volumes, and same for the federal government and the federal civilian space. [Emphasis added]
***** ********* ******* ******** ** ********* opportunities ****** ***** ***, ******* ********* now **** ****'** ********* ***** ** and ****** ****'* *********:
**'* * ******** ** **** *** work **'** *** ** **** *** last **** ***** ** ****** ****** state *** ***** *** ***********. *** now * *** ** ***** -- a *** ** **** ****** ** starting ** *** ***, *** * think ** **** *** *** *** years ** **** ******* *****'* ***** going ** ** ****** ** ****** in ******* **** *** **** ***** devices **. *** **** ** **** before, ****'* ***** ** **** ** open ** *** *********** ** **** body ******* **, ** **** ***** in, **** ******, **, ** ******. And **, * ***** **** ** promising ** * *** ** ********* ways ** *** ***** ** ** well ******* ******* ** *** ***** and ***** ******** ****.
***** ***** **** *** ***** ****** to ****** ** ***** ***** ********* is ******** ** **** **** *** done ** *** ***** *** ***** markets, *** ******* ***** *** *** company ************:
** ***** *******, **'* ***** ****** products **** **'** ******* ***** *** selling **** ** ** **** ** the ***** ******* **** ***** *** markets. *** * ***** **'** ** varying ****** ** **** ****** *************, federal *** **********, *** **'*still *** **** ******. *** **** ***** *** ******** ** *** ******* ***** ** *** **** *** *** **** *** *** ****. So I think, it's two very different motions between state and local and the rest of our business, but the team's doing a really nice job of executing on those in parallel. [Emphasis added]
International ******** **
** *** ****** ** ****** ** our ************* ********. *** ************* ******** are ** ***% ****-**-**** ****** **** year. *** **** * ****** ***** ago, ** ****** *** ******* ******* contract **** **** **** *******.
**'** **** ****** * *** ** international *********** *** *** ***** **** really ******** *** ******* ** ****** volumes, *** **** *** *** ******* government *** *** ******* ******** *****.
"Different ******** ** ******** ** & *****"
***** **** ********** ********* *** ******* to ************* *******, **** **** ***** it's *** ******, ** *** ************ been ** * "********* ********" **** economic ************:
**, * ********* **** **'** *** at *** ********* ** * *** economic *****. *** *'* *** ***** to **** *** **'** ******. * don't ***** ******* ** ******, *** historically, ** **** ***** ** ** that ** **** -- **'** ** this ********* ******** **** **** ***** those ********* **** ***'* **** ** matter ** **** *** **** ** for ***.
Tech ********** ***** **** *** *** *********** ******** ** *********
****'* ******* *** ***, **** *****, further ********* **** *** **** ********** spending ** * **** ******* ******* for *** *********** **** ********* ***** and, ****, ** **** ******** ** difficult *****:
* ***** *** **** ******* **'** seen ** *** ****, **'** ** this **** ** * ****** ** some ****. *** * ****, *** like * ****** ******, * **** just **'* *********. **'* -- ** haven't **** *** ******** ****** ****** impact ** *** *** ** *** other. **** ****** *** ****** *****, it *****'* ****** **** ** ******* of ****. *** **** ****** *** rough, ** ***'* *** *** ******** with ****. *** * ***** **'* because ** *** ******** ****, *** -- ******** ****'** ******** ** ****, it's ***** * ******** ** ***** overall *****. ****** *** ***** ***** goes **** *********, ******** *** ***. And ****, **** ** ********** *****.
More ********** ** ************ ** ***** ****
***** ********* ***** *** **** ****** burdens *** *** *********** ******** **** technology ***********, ***** **** **** ** Axon's ********** ** *** **** *********, their ********* "****** **** ** ************" when **** **** ** **** ********* cuts:
**, **** ***** *** ****** ****, the ******** *** ********* ****** **** people *** ********* ** *** *** revenues *** ******** **. ** *** tough *****, * ***** ** ****, we *** * ******* ** *** where **** **** ****** ****** ** like ******* ***** ****, *** ****** clear, **, ****, **'** ***** ** have ** ******** **** ********* ****.We **** ***** **** ********* **** ** ************. And now back then, we are still primarily the TASER company, and body cameras were super new.
Long-Term ********* *** ********* ******** ****** *** ****** **********
*******, *** *********** ********* **** ****-**** contracts **** ****, *** *** ******* "does *** *** **** ******* **** on ********* ******" *** **** ******* to ** **** ******** ** ******** turmoil:
* ***** ****'* ********* ** **** time, **** ** *** ******** ** these ****-**** *********, **'** ** ********* service, ** ** ***'* *** ********, better ***** ** **** **** * say ****, * ***'* ****** **** like ******* **** *********.