Axon Enterprise

AXON Q4 2022 Earnings

Reported Feb 28, 2023 at 4:04 PM ET · SEC Source

Q4 22 EPS

$0.70

BEAT +37.25%

Est. $0.51

Q4 22 Revenue

$336.1M

BEAT +9.90%

Est. $305.9M

vs S&P Since Q4 22

+11.3%

BEATING MARKET

AXON +93.9% vs S&P +82.6%

Full Year 2022 Results

FY 22 EPS

$2.19

FY 22 Revenue

$1.19B

Market Reaction

Did AXON Beat Earnings? Q4 2022 Results

Axon Enterprise delivered a standout fourth quarter to close fiscal 2022, posting earnings of $0.70 per diluted share on a non-GAAP basis, well ahead of the $0.51 consensus estimate, while revenue of $336.14 million beat expectations by 9.90% and gre… Read more Axon Enterprise delivered a standout fourth quarter to close fiscal 2022, posting earnings of $0.70 per diluted share on a non-GAAP basis, well ahead of the $0.51 consensus estimate, while revenue of $336.14 million beat expectations by 9.90% and grew 54.5% year over year. The primary engine behind that growth was Axon Cloud, where Q4 revenue climbed 65% year over year to $113.54 million, helping push annual recurring revenue to $473.00 million and reflecting a net revenue retention rate of 121% that signals strong customer expansion within the existing base. Full-year revenue crossed $1.19 billion, up 38%, and adjusted EBITDA reached $232.31 million at a 19.5% margin, while free cash flow of $119.42 million in the quarter underscored the company's improving cash generation profile. Looking ahead, management guided 2023 revenue to at least $1.43 billion, targeting a 20% adjusted EBITDA margin, with a longer-range goal of reaching $2.00 billion in revenue and 25% adjusted EBITDA margins by 2025.

Key Takeaways

  • Strong domestic demand for premium integrated bundles driving 66% domestic revenue growth in Q4
  • Axon Cloud software suite as top growth driver with 50% annual revenue growth
  • Strong Axon Fleet in-car camera shipments reflecting high demand and improved inventory execution
  • Subscription transition: 79% of TASER devices sold on subscription in Q4
  • Net revenue retention of 121% reflecting strong upselling and minimal attrition
  • Annual Recurring Revenue growth of 45% to $473 million
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AXON YoY Financials

Q4 2022 vs Q4 2021, source: SEC Filings

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AXON Revenue by Segment

With YoY comparisons, source: SEC Filings

Q4 22 Q4 25
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AXON Revenue by Geography

With YoY comparisons, source: SEC Filings

Q1 25 Q4 25