Core Viewpoint - Axon Enterprise reported strong first-quarter earnings, but the stock price fell due to concerns over its high valuation despite beating revenue and earnings estimates [1][4]. Financial Performance - Revenue increased by 34% to $460.7 million, surpassing estimates of $441.6 million [2]. - TASER revenue rose by 33% to $178.7 million, while software and sensors revenue grew by 35% to $282 million [2]. - Adjusted gross margin improved from 59.9% to 63.2%, and adjusted earnings per share increased from $0.88 to $1.15, exceeding estimates of $0.94 [2]. Strategic Developments - The company introduced a new generative AI software tool, Draft One, aimed at assisting police departments in report writing [3]. - Axon announced plans to acquire Dedrone, a drone and airspace security company, for an undisclosed amount [3]. Future Guidance - Axon raised its full-year revenue guidance to a range of $1.94 billion to $1.99 billion, indicating a 26% growth at the midpoint [4]. - Despite strong quarterly performance, the stock's price-to-sales ratio of 12 reflects its expensive valuation after a 40% increase over the past year [4][5].

Axon Enterprise, Inc. (AXON) reported first-quarter 2024 adjusted earnings of $1.15 per share, which surpassed the Zacks Consensus Estimate of 97 cents. The bottom line increased 30.7% year over year despite a significant rise in the cost of sales.Total revenues of $460.7 million outperformed the Zacks Consensus Estimate of $438 million and increased 34.3% year over year. The top line benefited from continued strength in Axon Cloud & Services, increasing adoption of TASER 10 driving growth in TASER devices ...

Axon Enterprise, Inc. (NASDAQ:AXON) Q1 2024 Earnings Call Transcript May 6, 2024 5:00 PM ET Company Participants Erik Lapinski - Director of IR Rick Smith - CEO & Founder Josh Isner - President Brittany Bagley - COO & CFO Jeff Kunins - Chief Product Officer and CTO Conference Call Participants Meta Marshall - Morgan Stanley Will Power - Baird Keith Housum - Northcoast Josh Riley - Needham Jeremy Hamblin - Craig-Hallum Trevor Walsh - JMP Joe Cardoso - JPMorgan Mike Ng - Goldman Sachs Operator Hello everyone. ...

For the quarter ended March 2024, Axon Enterprise (AXON) reported revenue of $460.74 million, up 34.3% over the same period last year. EPS came in at $1.15, compared to $0.88 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $437.52 million, representing a surprise of +5.31%. The company delivered an EPS surprise of +18.56%, with the consensus EPS estimate being $0.97. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wal ...

Financial Performance - Revenues for the three months ended March 31, 2024, were $460.7 million, an increase of $117.7 million, or 34.3%, from the prior year[143]. - Net income for the three months ended March 31, 2024, was $133.2 million, including a realized gain of $42.3 million from the acquisition of Fusus[143]. - Net income for the three months ended March 31, 2024, was $133.2 million, a significant increase from $45.1 million for the same period in 2023, resulting in net income per basic share of $1.77 compared to $0.62[173]. - Total net sales for the three months ended March 31, 2024, were $460.7 million, an increase of $28.6 million, or 6.6%, compared to $432.1 million for the same period in 2023[175]. - Adjusted EBITDA for the three months ended March 31, 2024, was $108.9 million, an increase from $91.1 million in the previous quarter and $65.1 million in the same period last year[183]. Revenue Breakdown - Net sales from products were $272.0 million (59.0% of total sales) and from services were $188.7 million (41.0% of total sales) for the three months ended March 31, 2024[146]. - International revenue increased, driven by sales growth in Europe, the Middle East, Africa, and Asia Pacific regions[147]. - Net sales for the TASER segment increased by 33.1%, primarily due to strong adoption of the TASER 10 product[150]. - Net sales for the Software and Sensors segment increased by 35.1%, driven by user growth and adoption of premium features[151]. - Net sales for the TASER segment increased by approximately $17.4 million, or 10.8%, during the three months ended March 31, 2024, driven by strong adoption of TASER 10 and higher international cartridge volume[176]. - Net sales within the Software and Sensors segment increased by $11.2 million, or 4.1%, during the three months ended March 31, 2024, primarily due to increased adoption of premium add-on features[178]. Expenses and Margins - Gross margin decreased to 56.4% from 59.5% year-over-year, primarily due to higher stock-based compensation and payroll taxes[143]. - Gross margin for the TASER segment decreased to 50.7% from 62.2% year-over-year, while the Software and Sensors segment increased to 60.1% from 57.8%[155][156]. - Operating expenses increased by $56.3 million, reflecting higher salaries, benefits, and consulting expenses[143]. - Total sales, general, and administrative expenses increased by $36.1 million, or 31.0%, to $152.7 million for the three months ended March 31, 2024, compared to $116.6 million for the same period in 2023[159]. - Research and development expenses rose by $20.2 million, or 28.4%, totaling $91.1 million for the three months ended March 31, 2024, compared to $70.9 million for the same period in 2023[163]. - Stock-based compensation expense increased by $7.7 million, primarily due to increased headcount and additional grants awarded to employees[158]. Cash Flow and Liquidity - Cash and cash equivalents decreased by $194.7 million to $403.9 million as of March 31, 2024, compared to December 31, 2023[185]. - Net cash used in operating activities for the first three months of 2024 was $15.9 million, reflecting a decrease in operating assets and liabilities of $115.4 million[193]. - Cash used in investing activities during the first three months of 2024 was $174.0 million, including $237.8 million for a business acquisition[197]. - The company has a $200.0 million revolving credit facility available for additional working capital needs[185]. - The company has access to a $200.0 million line of credit, with $192.5 million available for borrowing as of March 31, 2024, after accounting for $7.5 million in outstanding letters of credit[208]. - The company has not borrowed any funds under the line of credit since its inception, but future borrowings could be affected by changes in underlying interest rates[208]. Tax and Interest - The provision for income taxes was $32.5 million for the three months ended March 31, 2024, reflecting an effective tax rate of 19.6%[168]. - Interest income, net, for the three months ended March 31, 2024, included realized and unrealized gains on fair value adjustments of strategic investments totaling $117.9 million[167]. Currency and Market Risks - The company's operations are subject to fluctuations in foreign currency exchange rates, particularly as most international sales are transacted in foreign currencies[209]. - The strengthening of the U.S. dollar against local currencies could increase the cost of products for international customers, potentially impacting sales[209]. - Fluctuations in currency exchange rates could pose risks to the company's business operations in the future[210]. - The company has not engaged in currency hedging activities to date, but may consider entering into foreign currency forward and option contracts in the future[210]. Strategic Initiatives - The company is shifting towards a subscription model to better align with municipal budgeting processes, impacting cash flow timing[189]. - The company plans to consider repurchases of its common stock, subject to market conditions and authorization[190]. - As of March 31, 2024, a hypothetical 100 basis point increase in interest rates would result in a $1.5 million decline in the fair market value of the portfolio[205].

Exhibit 99.1 CONTACT: Investor Relations Axon Enterprise, Inc. IR@axon.com Axon reports Q1 2024 revenue of $461 million, up 34% year over year, raises outlook ● Axon Cloud & Services revenue grows 52% to $176 million ● Annual recurring revenue grows 50% to $825 million ● Net income of $133 million supports non-GAAP net income of $89 million and Adjusted EBITDA of $109 million ● Raises full year revenue outlook to a range of $1.94 billion to $1.99 billion, up from $1.88 billion to $1.94 billion Fellow shareh ...

"By combining Axon's 30-year legacy of innovation with Dedrone's cutting-edge airspace security solutions, we aim to revolutionize public safety once again," said Axon Founder and CEO Rick Smith. "Together, we will accelerate our efforts in creating a more advanced end-to-end drone solution that enables the good drones to fly and helps ensure the bad ones don't." Dedrone Chief Executive Officer Aaditya Devarakonda said: "Dedrone's growing impact across industries such as federal governments, utilities and c ...

The upcoming report from Axon Enterprise (AXON) is expected to reveal quarterly earnings of $0.97 per share, indicating an increase of 10.2% compared to the year-ago period. Analysts forecast revenues of $437.52 million, representing an increase of 27.5% year over year.The current level reflects an upward revision of 0.3% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this ...

Key PointsThe industrial sector has outperformed YTD, up almost 7%, outpacing the overall market's increase of 5.6%.Within the sector, the aerospace & defense industry has outperformed amid economic and political uncertainties.Breakout candidates within the industry include LMT, XON, GD, RTX, and HWM, all of which are currently trading near 52-week highs.5 stocks we like better than Lockheed Martinhttps://www.marketbeat.com/stocks/NYSE/HWM/Year-to-date, the industrials sector has demonstrated significant ou ...

The most recent trading session ended with Axon Enterprise (AXON) standing at $313.30, reflecting a +1.64% shift from the previouse trading day's closing. The stock's performance was ahead of the S&P 500's daily gain of 0.32%. Meanwhile, the Dow experienced a rise of 0.38%, and the technology-dominated Nasdaq saw an increase of 0.35%.Shares of the maker of stun guns and body cameras have depreciated by 1.49% over the course of the past month, outperforming the Industrial Products sector's loss of 2.63% and ...