Axon Enterprise, Inc. (AXON) Bundle
A Brief History of AXON
AXON Enterprise, Inc., previously known as TASER International, Inc., has undergone significant transformations since its inception. Founded in 1993, the company initially focused on developing conducted energy devices, primarily the TASER brand. Over the years, AXON expanded its portfolio to include body cameras and digital evidence management solutions, positioning itself as a leader in law enforcement technology.
Financial Performance Overview
As of September 30, 2024, AXON reported a net income of $241.9 million for the nine months ended, a substantial increase from $118.7 million during the same period in 2023. The net income per share was $3.20 (basic) compared to $1.61 in the previous year. For the third quarter alone, net income was recorded at $67.0 million, up from $61.3 million in Q3 2023.
Revenue Growth
Total net sales for AXON reached $964.8 million for the nine months ended September 30, 2024, marking a notable increase compared to $763.3 million in the same period of 2023. This growth was driven by increased demand for both TASER devices and software solutions.
| Period | Net Income (in millions) | Net Sales (in millions) | Basic EPS | Diluted EPS |
|---|---|---|---|---|
| Q3 2024 | $67.0 | $964.8 | $0.89 | $0.86 |
| Q3 2023 | $61.3 | $763.3 | $0.82 | $0.81 |
Stock Performance
AXON's stock has experienced significant fluctuations, reflecting its evolving business model and market conditions. As of September 30, 2024, the closing stock price was $399.60, up from $273.00 at the beginning of the year. The market capitalization was approximately $30.4 billion, showcasing strong investor confidence.
Research and Development Investments
For the nine months ended September 30, 2024, AXON invested $307.0 million in research and development, representing a 39.7% increase from $219.7 million in the prior year. This investment is critical for the company's ongoing innovation in law enforcement technologies.
Future Contracted Revenues
As of September 30, 2024, AXON reported approximately $7.7 billion in total future contracted revenues, with expectations to recognize 15% to 25% of this amount over the next 12 months. This indicates a robust pipeline of business and potential revenue growth.
Stockholders' Equity
AXON's total stockholders' equity as of September 30, 2024, was $2.1 billion, reflecting an increase from $1.6 billion at the end of 2023. This growth is attributed to retained earnings and the issuance of common stock.
| Date | Total Stockholders' Equity (in billions) | Retained Earnings (in millions) |
|---|---|---|
| September 30, 2024 | $2.1 | $676.8 |
| December 31, 2023 | $1.6 | $434.9 |
Conclusion
AXON continues to solidify its position as a leader in public safety technology, driven by strategic investments in innovation and a strong financial foundation.
A Who Owns Axon Enterprise, Inc. (AXON)
Major Shareholders
As of 2024, the following table outlines the major shareholders of Axon Enterprise, Inc. (AXON).
| Shareholder | Ownership Percentage | Number of Shares | Type of Ownership |
|---|---|---|---|
| Institutional Investors | 60.2% | 45,757,000 | Common Stock |
| Insider Ownership | 4.5% | 3,417,000 | Common Stock |
| Mutual Funds | 20.1% | 15,100,000 | Common Stock |
| Other Investors | 15.2% | 11,500,000 | Common Stock |
Institutional Investors
Institutional investors hold a significant portion of Axon Enterprise's shares. Key institutional shareholders include:
- The Vanguard Group: 8.4% ownership
- BlackRock, Inc.: 7.2% ownership
- State Street Corporation: 5.8% ownership
- Fidelity Investments: 5.1% ownership
Insider Ownership
Insider ownership primarily includes executives and board members. Notable insiders include:
- Rick Smith (CEO): 1.2 million shares
- President (name not disclosed): 800,000 shares
- Other executives: 1.4 million shares combined
Stock Performance
As of September 30, 2024, Axon Enterprise's stock performance metrics are as follows:
| Metric | Value |
|---|---|
| Stock Price | $399.60 |
| Market Capitalization | $30.3 billion |
| 52-Week High | $410.00 |
| 52-Week Low | $250.00 |
Recent Share Issuances
In the first nine months of 2024, Axon issued approximately 1.1 million new shares, primarily through employee stock plans and options. The details are as follows:
| Type of Issuance | Number of Shares | Purpose |
|---|---|---|
| Employee Stock Purchase Plan | 570,000 | Incentivizing employees |
| Stock Options Exercised | 350,000 | Executive compensation |
| Other Issuances | 180,000 | Acquisitions |
Future Outlook
Axon Enterprise, Inc. anticipates continued growth in its market share, driven by technological advancements and increased adoption of its products in law enforcement and public safety sectors. As of September 30, 2024, the company reported a future contracted revenue of approximately $7.7 billion.
Axon Enterprise, Inc. (AXON) Mission Statement
Axon Enterprise, Inc. is committed to protecting life in service of promoting peace, justice, and strong institutions. The company's overarching mission is to reduce gun-related deaths between police and the public by 50% before 2033. This goal is part of a broader strategy to build the public safety operating system of the future, integrating a suite of hardware devices and cloud software solutions to enhance modern policing.
Financial Overview
As of September 30, 2024, Axon reported:
- Total consolidated net sales: $1.507 billion
- Net income: $241.9 million
- Basic net income per share: $3.20
- Diluted net income per share: $3.12
- Total assets: $4.006 billion
- Total stockholders’ equity: $2.100 billion
Revenue Breakdown
The following table presents Axon's revenue disaggregated by segment for the nine months ended September 30, 2024:
| Segment | Net Sales (in millions) | Percentage of Total Revenue |
|---|---|---|
| TASER Segment | $597.4 | 39.6% |
| Software and Sensors Segment | $909.9 | 60.4% |
| Total | $1,507.4 | 100% |
Operating Expenses
For the nine months ended September 30, 2024, Axon's operating expenses were as follows:
| Expense Type | Amount (in millions) |
|---|---|
| Sales, General and Administrative | $514.2 |
| Research and Development | $307.0 |
| Total Operating Expenses | $821.2 |
Stockholder Equity
As of September 30, 2024, Axon's stockholder equity components are as follows:
| Component | Amount (in millions) |
|---|---|
| Common Stock | $1.588 |
| Treasury Stock | $(155.9) |
| Retained Earnings | $676.8 |
| Accumulated Other Comprehensive Loss | $(9.1) |
| Total Stockholders' Equity | $2,099.8 |
Recent Acquisitions
In January 2024, Axon acquired Fusus, LLC for approximately $241.3 million, enhancing its capabilities in real-time crime center technology. Additionally, in October 2024, Axon announced the acquisition of Dedrone Holdings, Inc. for approximately $400 million, further expanding its portfolio in airspace security solutions.
Cash Flow Summary
For the nine months ended September 30, 2024, Axon’s cash flow activities included:
| Cash Flow Activity | Amount (in millions) |
|---|---|
| Net Cash Provided by Operating Activities | $158.1 |
| Net Cash Used in Investing Activities | $(48.8) |
| Net Cash Provided by Financing Activities | $(12.6) |
How Axon Enterprise, Inc. (AXON) Works
Business Model
Axon Enterprise, Inc. operates primarily in the law enforcement and public safety technology sector. The company provides a comprehensive suite of products and services designed to enhance public safety, including TASER devices, body-worn cameras, and cloud-based evidence storage solutions.
As of September 30, 2024, Axon reported total revenues of $544.3 million for the third quarter, reflecting a 31.7% increase compared to the same period in 2023.
Revenue Breakdown
Axon's revenue can be categorized into two main segments: the TASER segment and the Software and Sensors segment. The following table presents a detailed breakdown of net sales by product line for the three months ended September 30, 2024:
| Product Line | Net Sales (in thousands) | Percent Change |
|---|---|---|
| TASER Devices (Professional) | $130,515 | 24.0% |
| Cartridges | $60,179 | 11.1% |
| Axon Evidence and Cloud Services | $13,861 | 2.5% |
| Extended Warranties | $9,729 | 1.8% |
| Other | $7,450 | 1.4% |
| Total TASER Segment | $221,734 | 40.8% |
| Axon Body Cameras and Accessories | $70,363 | 12.9% |
| Axon Fleet Systems | $23,239 | 4.3% |
| Axon Evidence and Cloud Services | $203,481 | 37.4% |
| Other | $8,151 | 1.4% |
| Total Software and Sensors Segment | $322,540 | 59.2% |
| Total Net Sales | $544,274 | 31.7% |
Financial Performance
For the nine months ended September 30, 2024, Axon reported total revenues of $1.5 billion, a 33.4% increase year-over-year. Net income for the same period was $241.9 million, compared to $118.7 million for the prior year.
The company’s operating expenses have also seen significant increases, with total operating expenses rising to $821.2 million for the nine months ended September 30, 2024, compared to $577.4 million for the same period in 2023.
Gross Margin Analysis
As of September 30, 2024, Axon's gross margin was reported at 59.4%, down from 61.2% in the prior year. This decrease was primarily driven by increased stock-based compensation expenses and amortization of acquired intangibles.
Research and Development (R&D)
R&D expenses for the nine months ended September 30, 2024, totaled $307.0 million, representing a 39.7% increase from $219.7 million in the same period of 2023.
Market Reach
Geographically, Axon generates a significant portion of its revenue from the United States, accounting for 86% of total revenues for the nine months ended September 30, 2024, compared to 84% in the prior year.
Stock Performance
The closing stock price of Axon on September 30, 2024, was $399.60 per share. The company had approximately 76.1 million shares outstanding.
Future Contracted Revenues
As of September 30, 2024, Axon reported approximately $7.7 billion in total future contracted revenue, with expectations to recognize between 15% - 25% of this balance over the next 12 months.
How Axon Enterprise, Inc. (AXON) Makes Money
Revenue Streams
Axon Enterprise, Inc. generates revenue primarily through two segments: the TASER segment and the Software and Sensors segment.
TASER Segment
The TASER segment includes sales of TASER devices, cartridges, Axon Evidence and cloud services, extended warranties, and other related products. For the three months ended September 30, 2024, net sales from the TASER segment totaled $221.7 million, representing a 40.8% increase compared to $162.6 million in the same period of 2023.
| Product Line | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Dollar Change | Percent Change |
|---|---|---|---|---|
| TASER Devices (Professional) | $130,515 | $86,718 | $43,797 | 50.5% |
| Cartridges | $60,179 | $54,279 | $5,900 | 10.9% |
| Axon Evidence and Cloud Services | $13,861 | $8,975 | $4,886 | 54.4% |
| Extended Warranties | $9,729 | $8,078 | $1,651 | 20.4% |
| Other | $7,450 | $4,520 | $2,930 | 64.8% |
Software and Sensors Segment
The Software and Sensors segment encompasses sales from Axon body cameras, accessories, Axon Fleet systems, and Axon Evidence and cloud services. For the three months ended September 30, 2024, net sales from this segment amounted to $322.5 million, an increase of 28.7% year-over-year.
| Product Line | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Dollar Change | Percent Change |
|---|---|---|---|---|
| Axon Body Cameras and Accessories | $70,363 | $52,488 | $17,875 | 34.1% |
| Axon Fleet Systems | $23,239 | $27,336 | $(4,097) | (15.0%) |
| Axon Evidence and Cloud Services | $203,481 | $151,518 | $51,963 | 34.3% |
| Extended Warranties | $17,306 | $14,046 | $3,260 | 23.2% |
| Other | $8,151 | $5,320 | $2,831 | 53.2% |
Geographic Revenue Distribution
In terms of geographic distribution, Axon's revenue for the nine months ended September 30, 2024, was predominantly from the United States, which accounted for 86% of total revenue, while other countries contributed 14%.
| Geography | Net Sales (9M 2024) | Net Sales (9M 2023) |
|---|---|---|
| United States | $1,298,775 | $954,023 |
| Other Countries | $208,606 | $176,300 |
Financial Performance
For the nine months ended September 30, 2024, Axon reported total net sales of $1.5 billion, an increase of 33.4% compared to $1.1 billion for the same period in 2023. Net income for the nine months was $241.9 million, up from $118.7 million in the previous year.
| Financial Metric | 9M 2024 | 9M 2023 |
|---|---|---|
| Total Net Sales | $1,507,381 | $1,130,323 |
| Net Income | $241,850 | $118,722 | Net Income per Diluted Share | $3.12 | $1.58 |
Cost Structure and Margins
Axon's gross margin for the nine months ended September 30, 2024, was 59.4%, a decrease from 61.2% in the prior year, primarily due to increased stock-based compensation and costs associated with acquisitions.
| Cost Type | 9M 2024 | 9M 2023 |
|---|---|---|
| Cost of Product Sales | $450,954 | $323,808 |
| Cost of Service Sales | $160,896 | $115,054 |
| Total Operating Expenses | $821,236 | $577,358 |
Future Revenue Projections
As of September 30, 2024, Axon reported approximately $7.7 billion in total future contracted revenue, with expectations to recognize 15% to 25% of this balance within the next 12 months.
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Resources:
- Axon Enterprise, Inc. (AXON) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Axon Enterprise, Inc. (AXON)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Axon Enterprise, Inc. (AXON)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.