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Axon Enterprise, Inc. Stock Price: Quote, Forecast, Splits & News (AXON)

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Company Profile

New

Axon Enterprise, Inc. Price & Performance (AXON)

Stock Performance

Updated Mar 21, 8:00 PM UTC

AXON:NASDAQ

$560USD

0.28% · $1.59

After Hours

+0.35% · $1.98

Open

$553.91

High

$560.68

Low

$544.34

Market Cap

$42.91B

P/E Ratio

116.7

Volume

704.48K

Year High

$715.99

Year Low

$273.52

News & Market Insights

Axon Enterprise Shows Resilience Amid Market Challenges
Mar 21, 2025
Axon Enterprise has been navigating a volatile market, with its stock recovering from a 30% drop due to analyst downgrades. The company's Q4 earnings beat expectations, reporting $575 million in revenue and $2.08 per share. Its innovative AI tools and expanding customer base signal long-term growth potential despite federal budget concerns.123
Analysts Remain Divided on Axon’s Valuation Prospects
Mar 20, 2025
Analysts are split on Axon Enterprise's valuation. While some maintain bullish targets of up to $725 citing robust revenue growth, others express caution due to high multiples and market sentiment. The company’s strong bookings and guidance for 2025, including a $2.5 billion backlog, continue to attract investor interest.456
Options Market Activity Highlights Axon’s Uncertain Path
Mar 20, 2025
Recent options activity around Axon Enterprise reveals mixed sentiment among investors. While some bullish trades target prices up to $600, bearish positions indicate caution. This activity comes as Axon continues to innovate with AI-driven solutions and expands its market presence, despite facing valuation and market headwinds.786

What's Happening

Peers

Earnings

Report Date

Feb 25, 2025

Reported Revenue

575.1M

Avg 1d Change

16.72%

Report Period

Q4 2024

Reported EPS

0.89

Implied Move 1d

14.32%

Transcript

34s

What an amazing group of people. The people I get to work with are employees, my teammates, our customers, working on problems we care about, it's it's a privilege I get to work here.

44s

All right. Welcome to another one of our team members, our investors, [indiscernible] we're here to report our fourth quarter twenty twenty four and year end. We just finished what I believe will be a pivotal year in the history of our company. And we're looking forward to another exciting year in 2025. The most rewarding part of my job is getting to spend time with our customers. As you can see in the video, we feel like we're on this mission together. Understanding the challenges they face every day is our guiding light and we have worked tirelessly to become their trusted technology partner. There's so much we can do to make their jobs easier, their lives safer, and their days just a little bit better. While helping them protect us. Over the years, we've introduced new tools that have advanced the way our customers operate and how they think about technology. We are at a place where the benefits of adopting newer technologies are so clear it's almost too impossible imagine what the world would be like if they were never brought forward. We launched TASER 10 about two years ago. It's just one example of a product that is not only driving growth in our business, but it's changing the world.

1m 51s

I rarely go a day without one of our customers telling me how this device has changed their world we're investing to make it better. We have a lot of work ahead of us to deliver on our moonshot, and I believe we have the roadmap to get us there.

2m 6s

I mean, in international market, I just came back from one of the most inspiring days of my career, and I can't wait to share the results that will unfold over the next twenty four months as we move forward towards our moonshot It's bigger than just The United States and cutting gun related deaths between police and the public in The U. S. Is a worldwide phenomenon that's going to happen here. Stay tuned. We're going to have better efficiency, better training and new ways to apply our technology over the horizon. Our cameras and our sensors are helping our customers capture more moments. Our acquisition Fuses helps us connect more sensors and cameras than ever before There are countless places where the benefits of better transparency and operations with the increased application of connected technology are just undeniable. Our investments and our ability to lean in at the foresight to invest in the things that led us here, that enable connectivity and software behind not just cameras, but all these sensors that are now taking flight into so many new sets of customers where we've never had the chance to engage previously. In the world. We now have more than 1,000,000 users of our software solutions spanning evidence management, real time operations, productivity, and yes, artificial intelligence.

3m 25s

We understand the interconnection of advanced software and hardware and we unlock value in solutions that leverage the seamless connectivity to solve problems we care deeply about.

3m 35s

This is where we differentiate ourselves, [indiscernible] and with our customers. With this foundation, we see several major tech trends unfolding before our very eyes. Exponential advances in artificial intelligence, increasing connectivity, real time sensor fusion and growing applications for drones and robotic to name a few. These aren't just buzzwords to us. These are our passions and we're making them real and real businesses. These product areas were more or less elements of our imagination a few years ago, and today, they account for nearly half of the overall opportunities our pipeline. Believe we will be the partner who enables our customers to leverage these tools to make them work to make their jobs safer, to make them better and more efficient, I continue to spend my time thinking about the big picture, While ensuring that we're on the right path to make giant leaps that challenge our conventional thinking so we can be prepared for and deliver be the driver of the future. For our customers. I've never felt more confident about our position or more just insanely excited and motivated what we're doing and frankly by the people I get to work with every day. One final note before I pass it on.

4m 44s

I would like to provide an update about something near and dear to me. Our headquarters campus. We have a vision for a campus we've put in a lot of work. I personally have and time into that vision. We hope to keep it based here in Arizona. We love Arizona, and we want to be here. Unfortunately, Arizona has a political and legal environment that is making it challenging for businesses like us to invest here. After several years of working with our very selected administrative officials, developing plans that were responsive to our community, and we received unanimous approvals from the planning commissions and then through a vote of our elected officials, without a setback. Unlike states like Florida and Texas, Arizona allows zoning decisions to be subjected to political petitions and, frankly, political gainsmanship. In our case, we faced paid petitioners collected 93% of the signatures on a pay for signature basis with two thirds of those people coming from outside the state of California I'm sorry, outside the state of Arizona, from another state who I may have just fraudingly mentioned. If we allow this to stand, this would delay our project by two years and reintroduce the risk of having to start over.

5m 51s

Unfortunately, this same phenomenon caused Arizona to lose our NHL sports team and it's placing Axon and other major projects at risk. So like many things, we're digging in to fix the problem. I'm working with our elected officials, to try to fix this situation and enable Arizona to be an attractive, predictable environment for businesses. If we can fix it, it'll keep us here. And it'll help the state attract other businesses and really grow into the tech center I believe it can be. If we can't fix it, well, we're gonna have to move on. We have several states courting us that don't have this same risk profile. So, it's we're not going to leave this decision open forever. We will update you again as soon as we have fully vetted our options and come to a final decision I intend to make that decision together with our Board in the coming weeks. So with that, I'll pass it on to Guy again, who I'm just excited to work with. Who really leads the business, gives me the time to spend a lot of time with our customers, And Josh is going to give you the details on [indiscernible] incredible team accomplished in this most recent quarter. [indiscernible] Thanks a lot, Rick.

6m 52s

I appreciate the kind words.

6m 55s

Good afternoon, everybody. As Rick mentioned, our customers remain at the center of our universe. I believe that mindset is what has afforded us The results that we have the privilege of reporting to you today. I'd like to share a few updates that recap the year and then some thoughts about where we're headed next. First, we just closed the year with revenue in excess of $2,000,000,000 That's nearly double the revenue we reported only two years ago. And it marks our third consecutive year of growing over 30%.

7m 27s

This growth is a testament to our ability to deliver products that drive clear value for our customers to connect our customers with the right solutions. Takes an entire team to deliver results like these and everyone at Axon continues to rally behind Rick's visionary leadership. Second, we booked over $5,000,000,000 in business last year, with about half of that closing in Q4 and there was strength across the board. Eight quarters in, TASER 10 orders continue to outpace TASER seven by 2x, and we continue to see encouraging demand from our emerging market customers.

8m 5s

To that end, seven of our top 10 TASER 10 orders to date from outside U. S. State and local law enforcement including customers in international, federal and corrections. We also had our highest ever officer safety plan bookings in Q4, nearly booking more seats in the quarter than the prior three quarters combined. And we continue to see strong adoption of our premium plans within that mix, along with adoption of our emerging products. Draft one continues to garner strong interest, and we were able to close our first 10 AI aeroplan deals in Q4. We are extremely pleased with this outcome given the fact that the plan launched at IACP in late October. New product pipeline generally takes three to six months to materialize, and we view that accelerated adoption of this plan as a positive indicator of the things to come. We updated our TAM and as Rick mentioned, we believe our investments around AI real time operations and drones and robotics roughly doubles our overall opportunity set. We're seeing early signs in our product bookings to support that outlook. Third, I want to talk about two growing customer groups that I'm particularly excited about right now.

9m 21s

International and enterprise. Our international bookings grew nearly 50% sequentially in Q4, and that's on top of 40% sequential growth that we saw in Q3. In enterprise, our bookings roughly tripled year over year. I'm happy to report that in Q4, our enterprise team booked the largest deal in company history with a global logistics provider. Congrats to Mike Shore, Billy Corbett, and the dozens of Axon employees who supported this deal. This development continues to give us confidence that given the large TAM and growing product market fit, the enterprise segment represents one of Axon's largest opportunities into the future along with federal and international. As we expand and grow, these three customer groups account for over $100,000,000,000 of opportunity. Turning to what's next, have a lot of runway ahead. We ended the year with total future contracted bookings of over $10,000,000,000 and our pipeline is the healthiest [indiscernible] We expect another record bookings year in 2025, with line of sight into several years of exciting growth ahead. Our team is focused on executing on the many opportunities in front of us and we are putting in the work to achieve our goals and deliver on our mission protecting life.

10m 47s

I know I say this a lot, but we run our team with a next play mindset. What excites me most about our results is what they signal for the years ahead. That's why I love the beginning of the year.

10m 59s

While it affords the opportunity for others to hypothesize and speculate on varying expectations, that's the same energy that fuels us to win more often in more places and deliver bigger and bigger societal outcomes. And that's exactly what we plan to do in 2025 and beyond. Over to you, Britney. Thank you, Josh. As Rick and Josh mentioned, it's wonderful to come back to you with another great quarter. And to report results that exceeded our expectations once again. Q4 revenue of $575,000,000 increased 34% year over year for our twelfth consecutive quarter of over 25% revenue growth. I'm particularly excited that we saw double digit year over year growth in all of our business areas with TASER up 37%, sensors up 18%, and software and services up 41%.

12m 3s

Our software remains a driver of our overall growth and contributed 40% of our total revenue in Q4. ARR increased to $1,000,000,000 up 37% year over year and net revenue retention remained strong at 123% reinforcing the visibility and predictability our business. Adjusted gross margin was 63.2% and has been very stable across the year at an overall company level. Adjusted EBITDA margin was 24.6% and we continue to invest in our business to ensure we are positioned to grow with customers and markets, while driving innovation in our technology. [indiscernible] On a full year basis, we delivered over 33% top line growth, driven by continuing to deliver more to our customers with strong product performance across the board. We also delivered strong bookings, taking our total future bookings above $10,000,000,000 and providing support for years to come. We made significant strides in profitability expanding adjusted EBITDA margins almost 400 basis points this year. As a result, we achieved a 25% adjusted EBITDA margin for the full year a milestone we initially set for 2025.

13m 26s

With this result, we reached both our three year revenue and adjusted EBITDA margin targets a full year ahead of schedule.

13m 34s

As we exit the year, our product teams are working on new technology that will support our growth outlook for many years ahead. We are quite excited about our newer product areas, and continue to invest in R and D to support our growth. We are entering the New Year in the strongest and cleanest inventory position we've been in for the last three years. We did all that with strong free cash flow generation above 60%. We continue to drive strong customer satisfaction, which is our North Star. It's humbling to think about where we are, and I thank our teams across the company for the work they put in. During this incredibly busy and exciting year. Now I'll turn to our 2025 guidance. We expect 2025 revenue in a range of $2,550,000,000 to $2,650,000,000 or approximately 25% annual growth at the midpoint. This would mark our seventh consecutive year of 25% or greater [indiscernible] Similar to past years, we looked at the strong execution across all segments, momentum in future contracted bookings, and our pipeline entering the year to develop this guidance. We expect 2025 adjusted EBITDA in a range of $640,000,000 to $670,000,000 representing approximately 25% margin.

14m 59s

We believe this margin level puts us at the right balance to invest in the future growth opportunities we see while still delivering strong profitability and cash flow. As a management team, we are focused on delivering year after year over the long term. That requires continued innovation, product risk taking and investment. And we're lucky to have Rick, who is such a visionary in this space. I hope you can tell we're excited about the opportunities in front of us. It is this type of product innovation that has allowed us to deliver our consistent impressive top line growth numbers. Beyond R and D, we're also investing in our sales to support new customers and market opportunity. Well as continuing to scale the business.

15m 47s

For some context, we are now at four years of hitting fifth well above the rule of 40.

15m 53s

We're pleased our guidance implies another year of hitting that type of number. We also expect CapEx in the range of $140,000,000 to $180,000,000 up year over year on a dollar basis but only up two points as a percent of revenue.

16m 9s

This is driven both by Mortise or 10 capacity to keep up with our continued strong demand as well as investment in both R and D and manufacturing for our many exciting new product areas.

16m 21s

We're proud of all we accomplished in 2024 and are looking forward to another dynamic and innovative 2025 that delivers for our customers and our shareholders. Now we will turn it over to take your question. Thanks, Britney.

16m 37s

Pull everyone into gallery view.

16m 47s

All right.

16m 52s

Thanks and congrats the very strong results and guidance. I wanted to start with, I figured, a topical question and, you know, just get a sense for What portion of your total revenues are coming from federal contracts with the U. S. Government. Some of the things that are happening in terms of hiring freezes, you expect to have any potential change in the timeline of deployments, or anything you might be able share on that to provide us a little bit better sense. We've certainly got a lot of questions around the potential risk around this area.

17m 32s

Yes, I really appreciate it, Jeremy. Thanks. A couple of thoughts on this one. Number one, I certainly don't think in terms of Axon's case in our future, there's any real cause for concern about what's happening with the funding cuts and and doge and so forth. Actually, I think there's a world where we could come out of this with more opportunity as they start to look at, hey, where are you know, federal law enforcement getting their bang for their buck in technology? And I I think they point back to Axon Axon. And I think we'll have the opportunity to continue to support the federal government across both federal civilian and DoD hopefully in bigger ways in DoD moving forward. And we're excited to compete for more business there. So, I I personally think there's more opportunity than risk right now for us in the federal Great. And then potentially related questions. So other topical news, is, you know, it looks like we may be coming towards an end, hopefully, hopefully, in the war in Ukraine. I know that Dijron has certainly been impactful in terms of operational support in those efforts. I also know that, the recent kind of government changes in terms of funding outlined that drones would not be impacted by any hiring.

19m 1s

I wanted to understand the potential mix of change related to if we get an end to kind of Ukraine war in the next month or two, and then vis a vis what you expect from a border patrol support in opportunities that are coming from or there for D drone related to those efforts. Got it. Let me maybe take this one. So yes, I mean, D drone has sold a lot of stuff in Ukraine.

19m 32s

But the far bigger picture is what happened in Ukraine has put drones on everybody's roadmap. Every military in the world is thinking about how do you detect small drones that traditional military systems are not designed to detect. Do you defend against them? We acquired the world leader in drone detection We acquired the at least one of the world leaders in indoor tactical drones. We We've partnered with the leading U. S. Maker of long range autonomous AI driven drones. In the moment where Basically, DJI is largely being made illegal in The United States. So we think we are in an amazing position for drones and robotics. It's an area we're investing heavily. We are currently either the leader or partnered with the leader in the key market segments. And when you think about things like patrolling borders, protecting stadiums, [indiscernible] I mean, Ukraine is strong, like, anybody could do with a drone you can buy for less than $500 in in the world is thinking about how to defend against those, and we think we are if not the best positioned, among the best positioned, for helping our customers globally solve that problem. So You know, from a human perspective, I certainly hope that all the violence we're seeing in the world comes to an end, but in a way that is persistent and sort of long term puts these issues to rest.

21m 1s

And we look forward to playing a role in helping use technology to protect people from killer drones, We're not going to get into the lethal drone business ourselves. [indiscernible] we're going to absolutely be a leader helping defend against those kinds of threats and then using drones be able to go out, to act more intelligently, save lives, and stop threats without using lethal force. And we think those those opportunities have all gotten bigger just given the quick evolution of space that's been caused by what's been happening in The Middle East and in Ukraine.

21m 36s

And Rick, I might just add one more thing there, which is just to the first part of your question, Jeremy, just to to address any ambiguity, none of our forward looking guidance assumes any incremental revenue from Ukraine.

21m 51s

Understood. Thanks so much for the color and best wishes on continued success.

21m 56s

Thanks. Thanks, Jeremy. Next, we have Meta Marshall at Morgan Stanley.

22m 2s

Great. Thanks. Congrats on the quarter. Maybe to start with great traction on kind of noting the 100,000 incident reports kind of already completed kind of with the AI tools. Just what are you seeing in terms of kind of AI adoption either into what type of bundles they're opting for or just kind of pipeline there? And then maybe as a second question, noted kind of the large enterprise win Just what was kind of the entry point there? Was it FUSUS? Was it kind of body cameras? Just any contact there would be helpful. Thanks.

22m 37s

Take the first part and I'll have Josh talk about the second part.

22m 41s

So in terms of AI, like, without a doubt, These are the fastest growing adoption products we've ever had And it's not by a small margin, So we we're seeing these products, these services really resonate with our customers. And they're, you know, it's unbelievable, the AI aeroplane that we were closing deals within eight or nine weeks of launch. [indiscernible] like, I I don't think we've ever seen things move that fast. Maybe a little bit with, like, with a taser, but, you know, that's where like somebody had an existing taser line item, we introduced a new taser and they like from TASER seven to TASER 10. Yes, that has happened. But a new product category going from zero to to deals in that shorter timeframe is super encouraging.

23m 28s

Awesome.

23m 29s

On the second part of that question on enterprise, I think the really exciting news is there are multiple entry points into some of these large opportunities. I think FUSUS is certainly relevant. Body cameras are certainly relevant. D drone is relevant. Drones are relevant. Obviously, evidence.com, I think there's we're starting to see, like I said, just better and better product market fit to address this group of customers. And really the most encouraging thing of that is it's still along the lines of our mission and use cases that we really want to support and that they lead to better, safer outcomes you know, in these enterprise environments. And so it really is exciting. We're we're I believe this is going to be a major, major part of our business, maybe even the biggest part of our business long term. And I think we're on the right track there for sure.

24m 26s

Great. Thanks. I'll pass it on. Thanks, Meta. Up next, we have Josh Riley at Needham. All right. Thanks for taking my questions.

24m 36s

Just wanted to hit on the news with the Flox Safety partnership.

24m 40s

Maybe what happens in terms of the technology licensing for Fleet three ALPR technology now that the partnership is maybe ended? And then how are you thinking about more broadly your relationship with the company moving forward and your strategy around fixed LPR? Yes. Thanks a lot, Josh.

24m 58s

Look, a lot's been made of this, obviously, in the last week. And And frankly, I think it's somewhat overblown. We did exit a partnership with Flock. However, I think both sides have an interest in getting back to that partnership. We proposed new terms think what we're asking for is just a more fair flow of information into FUSYS, just like we support into FLOC OS and to FLOCS Credit. They've been receptive, to to our feedback there, and we and we hope to be able to resume it. And so I'm not going to speculate on on what happens if that doesn't come into fruition. Of course, we'd have to look at how we support those customer use cases, but right now, our focus is just on, making sure that that we can arrive at a new partnership that, that really in the end benefits our customer and the use of their own data.

25m 51s

Understood. And then maybe just back on the federal business, have you heard any feedback thus far from customers with regards to their ability to expand and take down more body cameras or tasers under the existing contract structures to my understanding were often open ended with their ability to add more products since the election has happened.

26m 12s

Yes. Thanks for the question. So on some of these customers in federal, as you probably saw in the news, one of the first executive orders addressed body cameras for federal law enforcement and yet our customers are still wearing our body cameras. They're seeing a lot of great outcomes as a result of wearing them. And we do believe these programs will continue to expand into federal. So, again, I don't think the world has changed much if at all for us in the federal space I think that's the benefit and reward for having products that drive true outcomes in the field. And I think our customers see that and we get a lot of support from them on this. So we're proud of the partnership and and certainly think it's it's going to be a bright future there.

26m 58s

And Josh, let me add it in as well. When we first introduced body cameras in law enforcement, most cops didn't want to carry it, didn't want to wear them. And there was one of the statewide union leaders sort of famously told me, no cop wants to wear a body camera until they've worn one for thirty days and then they'll refuse to go on patrol without it. Because they realize in today's world, it protects them from all the crazy allegations somebody could make. That's also true of our federal customers. I meet with them all the time. And so like early on, I think it was kind of helpful to get a political push from the top to get these agencies to try it. But once they start using it, we see the same phenomenon. [indiscernible] If you're whatever federal agency you work for, you just realize, like, your job [indiscernible] but at risk of being accused of just about anything and having a video that shows you're a professional doing the job the right way.

27m 54s

Is something that gives them great comfort to go do their jobs with confidence [indiscernible] they're not going to get hung out to drive by somebody making something up about what they did.

28m 4s

Understood. Thank you, guys.

28m 8s

And by the way, the other thing I'll add is, these new tools like Draft1, customers absolutely love it. I mean, Cops are over the moon about this The idea that god, I don't have to spend four hours a shift doing reports. I'm like cutting that in half. And I was just demonstrating our new real time Translator. I'm Outside Of The U. S. Right now. [indiscernible] did a demo in Icelandic yesterday guy said, we think there's no way it was going to work, and his jaw hit the floor. Before we did Arabic, Norwegian, and a couple other, you know, not exactly in the set of, like, the most heavily used languages in the world. We think the real time translator is going to be another real hit. So the body camera is evolving and our customers are seeing it. It's not just a recording that can help me. It's now the edge of the AI Internet on my chest. I've got a real time AI assistant help me translate, that'll help me write my reports, will help me look up things I need to know, will help me ask policy questions, I don't have to call a lawyer at 2AM in the morning, about how to deal with some obscure legal situation.

29m 11s

I can just immediately cross reference my reports. And all those capabilities are included in the new Aeroplan, which is why we saw it go from zero to revenue so quickly.

29m 20s

And I think one of the things you continually hear in the industry right now is a lot of theory and not a lot of practice. And application with the power of these new AI tools. And what we are all about is the applied practice directly in service of real problems for our real customers that's what they love about what we're building.

29m 41s

Thank you.

29m 43s

Thanks, everyone. Up next, we have Mike Ng at Goldman Sachs. Hey, good afternoon. Thanks for the question. I just have two.

29m 52s

One on bookings and one on cloud. First, just on bookings, it's a two parter.

29m 59s

You guys had bookings of over $5,000,000,000 this year.

30m 2s

I think this is at least the third year of bookings growing $1,000,000,000 year on year. So when you look at your pipeline going into 2025, In your base case or in your bold case, like, are you assuming bookings grow $1,000,000,000 again to 6,000,000,000 thoughts qualitative or quantitative would be helpful.

30m 24s

Sure thing. Like I said, Mike, in my prepared remarks, the the pipeline is extremely healthy right now, even healthier as relative to where it was at this time last year. And look, our goal is that our bookings growth rate [indiscernible] similar to our revenue growth rate. And that just at back of the napkin, it kind pencils out to, hey, we can just keep this high growth rate going well in [indiscernible] more about, hey, can we have our bookings growth rate somewhat mirror our revenue growth rate And if we do that every year, the business will be very, very healthy for a long time.

31m 6s

Great. Thank you. And then just on cloud, Axon evidence and cloud services revenue within software and sensors, that saw a solid step up Q on Q. I think it was up $35,000,000 Sequentially, I think the largest on record. Could you talk a little bit about some of the key things that drove that strength? Was there anything unusual that made that sequential growth particularly good this quarter or are you thinking that, hey, the structural [indiscernible] Run rate of sequential increases may have stepped up.

31m 42s

Okay. I'll take on I think it's very much what we talk about from a seasonality standpoint as we go through the year, which is that our step up from a software standpoint often lags how we're doing on bookings by a quarter. Now, it's not always perfect, right, because there's timing inside of the quarter, But as you think about it, our strongest bookings quarters tend to be Q3 and Q4. And then Q1 is our seasonally softest and it depths goes through the year that way.

32m 14s

And so if this step is lagging by a quarter, what you see typically is Q4 and Q1, have the bigger steps up from a software standpoint. I think you're just seeing the strength in the software business come through. We're seeing more user adoption. And we're seeing more products, more software products get sold into those users. You also, g drone is not material to our business. But they do have some software revenue and so you are seeing a small bit of D drone come into the software step for the first time this quarter. Great. You, Britney. Thank you, Josh. Thanks, Mike.

32m 52s

Next, we have Jonathan Ho at William Blair.

32m 55s

Good afternoon. And let me echo my congratulations as well on the strong quarter.

33m

With your international bookings, can you talk a little bit about the strength here? And maybe what's changed in the decision to expand sort of the TAM Yeah. So I think a lot Josh might cover the strength Axon international, but I think a lot of what you're seeing in the TAM is we refresh the TAM every two years. We did a little bit of an interim update when we did our FUSES and our D drone acquisitions, but that was really an interim process. And so as we came back to look at our TAM this year, we really looked out over the next two years And what's changed a lot from two years ago is really the number of products [indiscernible] And so that applies to international as well. As you look at the international market, we now have lot more products that we can go ahead and sell into the international market [indiscernible] like Dedron, like AI. And so you're seeing that strength come through. We're also continuing to see some nice track outside of some of our Commonwealth markets. And so that gives us increasing confidence in that higher international TAM.

34m 9s

Yes. And I'd just add Jonathan, on the international bookings piece. I think it's just a story about execution. I think we have plenty of product market fit to be very successful internationally. I think the team is this is been somewhat of a transformative year for our international business in terms of the team, bringing on Cameron Brooks as our c, CRO out in in Europe and he's made a couple of key hires in Europe and our Latin America and Canada function is going very, very well under Vishal Dier. And we just we've got more of the team in place that's just executing on a higher level. And so we're pretty pretty bullish on international moving into the future here as Purnee was saying. I think now as we're landing in more places, there's going to be the opportunity to expand with more and more products Excellent. And just as a follow-up, a big quick big picture question for Rick.

35m 8s

We've clearly seen a strong value proposition here from generative AI tools How do you imagine what you can do with agentic AI, which seems to be sort of all the rage on the tech side and potentially is even more impactful than generative AI. Thank you.

35m 25s

Yes. I mean, I think it just sort of builds. For us, it's all about [indiscernible] customers to do the things they need to do? In their jobs. So I think a lot of it right now is like, okay, take this transcript, run it through, and create a report for me, or like, hey, take this and translate it. I think agentic AI allows you to start to do things like go search across this giant dataset and help me solve like, some problem that currently I have teams of people working on And we think we're in a unique position given our customer trust, given that we're housing you know, so much of their data for them and managing their sensors. That will just kind of keep going down the list of their problems. And then for us, there's also a risk reward trade off Like, we intentionally started with report writing rather than, for example, facial recognition where there's various privacy and related concerns, where report writing was like, hey, we can ensure there's human oversight if the AI gets it wrong, it's actually not a catastrophic failure. You've always got the underlying evidence. We can put in say speed bumps to make the officer do it.

36m 32s

I mean, we are starting to look at more uses of AI that will help us some No. Core law enforcement functions. We're going to do it in a way that we will always be proud of, respects and balances, you know, privacy and we want to build the world of Gene Roddenberry, not George Orwell. And, you know, these agentic workflows would just allow us to start handling higher levels of complexity But for us, starts with I go out, I meet with customers, I hear what their problems are, and I get to come back to the company looking like a genius with all these great ideas. I'm like a bee carrying pollen back to the hive. And then Jeff's got to make sense of it all, segment it, work with our thousand plus engineers and product people to take these great customer ideas and put them together Josh and Brittany, you're going to like then staff and execute the business to run it, and I get to go out the team works really well together and I just I love my job getting to go just sort of imagine customers out their problems and try to match it on, okay, what tech work.

37m 36s

And to be honest, Jeff really holds me accountable.

37m 38s

Lot of our conversations, Jeff uses the word actually a lot.

37m 41s

Okay, Rick. Like, this is great stuff. What can actually work right now in a way that customers will [indiscernible] approach it kind of the same way. Okay. Where are we at? And what will work well for our customers and it's a lot of it's just getting the sequencing down.

38m 6s

Up next, we have Andrew Sherman. Andrew, welcome to the call.

38m 9s

Great. Thanks, Eric. Good to be on the call.

38m 12s

Congrats on the quarter. Britney, one for you on the revenue growth guide of [indiscernible] any color on the AI error contribution the sustainability of the strong 123% NRR and any change to your guidance philosophy versus the past couple of years?

38m 35s

Yes. Thank you. [indiscernible] So as I talked about, no actual change in our guidance philosophy [indiscernible] we've got our future contracted bookings. We know approximately how much of that will convert in the next year.

38m 50s

So we know how much of a go get we have. And then we can look at our pipeline and see how our pipeline stacks up and how we feel about that go get. So that's pretty much how we do it and that's how we continue to do it this year. In terms of assumptions going forward, I mean, we have really low churn. Our NRR has really only continued to be very stable to positive, so no major changes in assumptions going forward. Great.

39m 22s

Thanks. And for also for Britney and Josh, maybe just touch on where the supply demand imbalance for TASER 10 great to see that it's still tracking at 2x T7, but where do we stand today, supply, demand and balance I think Britney, your CapEx comments would imply more supply coming on. So what is that signal for growth this year?

39m 45s

You got it. We are still outpacing our our supply with our demand, so still in a great place. We are investing next year to try and bring more supply online. So So we'll see where demand goes. I think we imagine that sometime next year, we've got that supply demand imbalance. But what you're really seeing right now is we are basically selling as much as we can make. And so we've got to keep investing behind our capacity.

40m 15s

Great. And Andrew, thanks a lot. We're particularly excited about T10 just because what it means for our mission and moonshot as well. The more customers deploying it, we are seeing videos of better and better outcomes in the field. And I think that's kind of continuing, in through a network effect across the entire market. And so we're very excited about what the future holds for TASER 10. I don't think there's any slowdown in sight here. You know, it's our highest demand CEW ever and I think that will continue.

40m 45s

Yes, I just met with some new European customers who have not had t 10 for very long. And two of them told me they have already averted at least one shooting, saved at least a life in the early few months of them deploying it in the field. And these are countries obviously that don't have the frequency of shootings that we do in The U. S. So it was pretty significant to hear that from them.

41m 5s

And while all of our products work so well together as an ecosystem, there are you know, pairs here and there that are you know, doubly so peanut butter and chocolate and and drive each other forward. And so with t 10, the story with VR is such a great one because T10 is not only so transformational in its capability, but it is new and different in a way that really motivates the sale and adoption of our VR training that goes along with it. It's the catalyst for getting the best possible outcomes with t10. And a similar story for like DFR and robotics, with FUSUS and RTCC. So you see all these pairings that go so well together combined with the leverage of them adopting more and more of our whole ecosystem.

41m 49s

Great. Thank you all. Thanks, Andrew. Up next, we have Will Power at Baird.

41m 57s

Great. Thanks.

41m 58s

Guess I got a couple. Well, I guess first, Rick, I'm through the Lone Star State. We'd love to have you.

42m 7s

You know, question, maybe first question for for Josh or Rick Rulis to take it. Look, it sounds like really strong early success with the AI Europe play and I think you noted 10 deals in Q4. Just want to understand the confidence and visibility there as you move forward, because it's a big lift in OS OSB pricing, right? I mean, going from $3.50 at the high end to $5.50 What's the conviction, confidence, visibility in agencies having enough budget to be able to adopt this at a rapid pace from here.

42m 34s

Yes, it's interesting. Well, it's a great question and it's The What I would say about the AI airplane and about our AI products in general is they are driving such an ROI that can be measured in staffing and officer time our customers are saving money as a result of of deploying this for $200 a person. Like the you could just do the math on draft one alone, and essentially, what it is allowing you to do if if you're a police chief is have 20% more capacity day to day of your police officers.

43m 14s

And you know, this is an environment where police departments are still very understaffed. They've got dozens a lot of cases, hundreds of open roles that are unfilled. And so when they can allocate some of those dollars over to these tools that that might mitigate the need to have more officers at department to begin with, that's highly valued. And so we're very, very encouraged And it's mostly because we know what type of financial outcome outcomes some of these AI products are driving for our customers.

43m 50s

Yes. Let me jump in on that. I met with a large customer in a relatively new segment for us, so it's not [indiscernible] Big agency and meeting I spent a day with the customer going through their operations, learning how things work. It was a lot of fun for me. And there is a new AI service we could do that would literally offload more than half of what their entire staff spends their time doing that they hate doing that's administrative in nature got a lot of the similar characteristics to Draft One.

44m 23s

To where this customer is like, oh my god, this would this would be game changing for my budget. It would free up my people to do like, more training and and I wouldn't need as many people so I could grow a little slower. And my morale would go up dramatically.

44m 41s

And that's when I came back to Jeff and we're like, okay, let's put a team on how to figure out how to do this. And with the new AI tools, [indiscernible] It's It's going to be very doable. And so again, that's just another example where AI is allowing us to rapidly bring the promise of like AI tech doing sort of repetitive jobs. And because our customers, one of the things that's sort of great is it's not like they're firing people or this is taking people's jobs. It's taking the crappy low value time consuming bureaucratic suck of their job away. And that's like a win win. And they're just excited. Like, yeah, I I get to go do stuff I enjoy doing that gets me excited to go to work.

45m 21s

Then for the chief, it's like, yeah, I'm getting more out of my people. So, it's paying for itself.

45m 26s

That was great to hear. It sounds like Jeff's got job security as he works on those projects. And maybe just a quick second one. Probably for Josh, just the enterprise deal, you know the largest deal I think in history. Maybe I missed this, but any color as to exactly what they're utilizing? Are they utilizing body worn cameras? Is it fuses? Is it both? Is it don't know, even de drug for facilities? What's kind of getting used there?

45m 52s

Yes. I think in this particular deal, Will, it's body cameras and FUSYS with, of course, Evidence.com licensing as well. But the same customer has a lot of interest in D Drone and and other products as well. So I think what you're going to see throughout this year in the enterprise segment is We'll be landing in a lot of cases with FUSYS and body worn cameras, but just like I was saying about international, I think the same holds true where a bigger and bigger part of our product portfolio will be applicable to the enterprise segment, and we're very excited about that.

46m 26s

Thank you. Thanks, Will. Up next, we have Trevor Walsh of JMP.

46m 33s

Great. Thanks, team, for taking the questions.

46m 35s

Josh, maybe for you, but Rick, feel free to jump in. I want to ask the federal question maybe a different way. So I understand it's more opportunity versus risk on the federal opportunity itself But one of your peers kind of in the state and local technology centered kind of sales motion gave some statistics on their call a few weeks back about kind of how federal funding flows down in the state and or local budgets. Just curious, it sounds like from that kind of just general commentary that state budgets can be a little bit more impacted or kind of do draw a lot more from federal funds. So just curious if you're hearing concerns or for that state level, state police, whatever it might be, types of orgs having maybe worries or concerns around what the federal fund kind of flow will be for them, less so obviously like county and local level, if that makes sense?

47m 24s

Yes. Thanks a lot. Personally, I'm not sure I agree with that commentary. It is true that some grants and other programs have dried up A lot of those were not particularly impactful to Axon, maybe some other companies. But I still think there's a universe where police in federal military are better funded by the federal government, state and local police and federal military are better funded by the federal government I think, people are assuming. And so, Personally, I don't necessarily see any headwinds in that way that would have any material impact on our business.

48m 5s

And if you hear the types of projects that are getting paraded in front of the cameras, there's like examples of waste. None of them are like critical public safety equipment and technology. It's, you know, stuff that people are like, oh, wow. That's weird. They're spending my money on that. And and, like, we just don't think we're like our products make a ton of sense for customers that bipartisan are pretty universally the republicans and democrats in the last election cycle, I think, were going out of their way to make sure that they knew that they were pro public safety, pro law enforcement, So we're I don't want to be arrogant about it and say we're bulletproof, but I would say you know, we think net We haven't seen the political wins really affect us that much. As long as we're delivering things that actually help our customers do their job, [indiscernible] whether it's in a blue city, a red city, Trump administration, a Biden administration, [indiscernible] the product carries today.

49m 3s

Great. Thanks both for the color. Maybe just one quick follow-up for Britney. Appreciate the new future contracted bookings metric, always low. Adding a new metric to keep tabs on. Can you it sounds like it's RPO basically plus additional contracts that have T4C or other clauses that kind of obviously don't put them into RPO. Is that kind of new metric a function of that more of those termination clauses are doing more contracts that have more of those types of things. And so it kind of helps to give more visibility there. Where I guess where are those contracts falling? Are those federal customers that just generally have that written in or are there other places where you're seeing that kind of more and more from a contract perspective? Thanks.

49m 46s

Yes, I mean, you nailed it. That's exactly what it is. And so we're going to move to talking about our new total future bookings number because it's really more indicative of what the business is doing in the bookings commentary and color We get we have been going through and we changed accountants this year. So we've really been scrubbing RPO and there's just a lot, that ASC six zero six doesn't allow us to put in from a GAAP standpoint. So you will still find our GAAP RPO number in the like 10 ks, we have to report that, you'll see that. But just more and more, it's diverging from how we actually measure our business and we don't go back and look at our historical contracts, like even when we have term for convenience, our customers don't actually leave us. Like they don't utilize that. We really don't have churn. So it's just non indicative. In terms of where we're seeing it, honestly, it's across the board, like more and more customers just want turn for convenience as a best practice. And so we're seeing it in a lot of places And so we're just going to move to this sort of non GAAP version of the metric which we think is a better reflection.

50m 57s

Great.

50m 57s

Thanks all. Great finish to the year. Up next, we have Jordan Linus at Bank of America.

51m 6s

Hey, thanks for taking the question. Could you guys talk about how you're approaching your go to market with Skydio and the Sky Swap program and how that's been going so far?

51m 18s

Yeah. And and certainly, I'll I'll I'll start, but I think others should chime in on this one. Look, we're really excited to have Sky as a partner. We think they're the most talented team in drone technology They're a phenomenal cultural fit with us in terms of our go to [indiscernible] Like Rick was saying, DJI has fallen out of favor in U. S. Public safety. And Skydio is the obvious choice behind them. And so we're really excited to be able to kind of augment our ecosystem with, with Skydio hardware and really give our customers more situational awareness and more opportunities for really integrated DFR, drone as a first responder experience. So, I think that's something that we're very, very excited about. And very encouraged about what the results have been so far in that partnership.

52m 18s

Yes, let me jump in and actually stay. It's not even I wouldn't say, Scotio is behind DJI. DJI Like, got to market first with scale, but Skydio is actually the world leader in autonomy like many things that the Chinese companies had really inexpensive hardware, and they did a great job with the user experience. You know, Skydio has a big team in Silicon Valley. It's been very much focused on leveraging AI and sensors so that the drones can launch and fly themselves autonomously. Now, look, we bought a drone company two years ago ish with Sky Hero, that was for a different use case. That's for indoor, like, tactical drones. And as we did an assessment on the make, build, buy, you know, what Skydio is doing is just a different level of complexity if a tactical drone falls out of the sky, it falls to the floor from six feet, it doesn't fall on somebody. It doesn't have to fly itself. You build it to be more resilient, to bump into things, and you don't need fact, all the autonomy can get confused in an indoor environment. And there's other applications for the long term that we felt Sky Hero would be transformative for us to own and work on.

53m 30s

Skydio, this was just our assessment was, wow, it took a team of like 600 people working for the better part of a decade pretty massive investments to do this and they've got a huge you know, head start. And as we got to know each other, was one of those, you know, like Jeff and say chocolate and peanut butter moments. It was really a great fit. I've developed a great personal relationship with the team and and Adam up there, and it really fits nicely Like, like a lock in a key with each other's portfolios. And so we're going to market hard to think, with the partnership. And we're getting tremendous customer feedback. In fact, It actually costs you a lot less to deploy an American Skydio drone than a DJI drone.

54m 8s

For this reason. DTI, you put it in the trunk of the car, and then you've basically generally turned your police officer into an Uber driver for drones. He drives to the scene, then he stands on scene, flying [indiscernible] dollars $200 per year to get that drone driven around the city. Over the Skydio Dock, yes, the hardware is a bit more, and the software [indiscernible] you know, for $50,000 you can have that drone autonomously that does not consume an officer. It can be autonomously flown. It flies to a site With that any need for, like, human oversight. And you pair that with our d drone sensors, Now that is an amazing pairing. You can now see the airspace to see where everything is. You can the drone can fly autonomously connecting those two systems together.

54m 53s

Then whoever needs to see the feed just magically sees a camera in the sky where they want it, looking at what they want to see, with zero human oversight. So it's actually about a quarter of the price when you consider the human labor elements. We think this is both an interesting political moment in the US government policy and the rift with China is accelerating that transition. But it's just matching this wonderful moment in time where AI is now making the autonomous flight possible, Skydio, is in the process of releasing from beta to production their dock that unlocks this, like, complete autonomy. So it's just a really exciting part of the business. [indiscernible] always look to look for and just make the best decisions where we should make, what we should build ourselves, where we should partner, in this case, it was a we found a great partner and confident that, you know, it's got the right relationship fit and long term dynamics.

55m 42s

And for your customers, your DEA or Border Patrol can they just go through you to buy the Skydio drone and you guys will put on your kit? So it's all connected or do you need both of you?

55m 55s

We could do those deals on what we call Axon paper or on Skydeal paper.

55m 59s

Got it.

56m 1s

And more and more and more as customers get excited about this space for all the reasons Rick just went through, again, they think of the evolution of the real time crime center space and that opportunity [indiscernible] hand in glove with DFR and drones' first responder. And so the combination of FUSUS with Skydio with the rest of the Axon suite is just hands down unmatched in terms of bringing the capability that customers want and need giving them the situational awareness and autonomous response that they're looking for.

56m 32s

Yeah. One example as well, like an officer with their body camera, in the near future, we'll be able to say, hey, I need a drone. And we deploy the drone to the body camera as it flies in, Skydio has done a great job integrating You'll see a blue augmented reality pillar growing to the sky that tells you right where your officer is so there's no searching around to find them It's, you know, a seamless mesh of our body cameras, our FUSES, and Skydio's autonomy and their flight software. But to the customer, it doesn't matter. It's one experience. Like, oh, that officer needs a drone. There it is. And there's my officer and I can see him and I can pass that video feed whoever I need to pass it to. Got it. Thank you all. Thanks, Jordan. Up next, we have Joe Cardoso at J. B. Morgan.

57m 21s

Hey, good afternoon, everyone. Thanks for the question. Maybe just wanted to follow-up on the drone question, but from a different point of view and maybe a bigger picture point of view, like how are you guys thinking about the timing of that opportunity materializing in a more material way for Axon the ramping much faster than maybe the conversations we were having last year. And just kind of curious like when we're thinking about the size of this potential business for Axon, a year out, two years out, like can we think about this as being material volumes or is that just getting a little bit ahead of our skis as you guys are doing more kind of pilots and programs with some of your end customers or or are we actually starting to see some more bigger moves here from your end customers in terms of adoption?

58m 11s

They typically prevent me from throwing numbers out because I get too enthusiastic, but I would say qualitatively, we're at a tipping point.

58m 17s

Okay.

58m 18s

You're starting to see more of an sorry, go ahead, Britney. I was going to say, we've got the TAM at about $20,000,000,000 for this.

58m 24s

And we are in such early innings. So So we took that up because I think we see the opportunity much more clearly in front of us. Now like just from a logistics and a timing thing, right, we do long term bookings, they go into bookings, that's what's giving us excitement about momentum. It takes a little bit of time to start seeing that all flow through the P and L. Got it. And then maybe quick question for Britney. Like obviously, you talked about it hit the 25% EBITDA target a year ahead plans, still guiding for 25 for 2025. Appreciate that you talked about the investments in your prepared remarks. Maybe just flush out a bit more in terms of where those investments are exactly targeting, like is there any particular areas that you guys are kind of putting those dollars to spend in different parts of the portfolio or engineers, etcetera. Just curious, you know, where those dollars are kind of being spent? And then anything that we should be interpreting in terms of implication around gross margin expansion for the year from those comments? Or is it really just just largely taking those dollars and investing it in OpEx Yes.

59m 27s

I'd say it's largely taking those dollars and investing them back in into R and D, and it's all the areas we've talked about. Right? It's It's drones, it's robotics, it's FUSUS, it's all of these new markets that we're so excited about.

59m 43s

Got it. And I'd also add, Britney, just it's also our enterprise go to market function as well. That's a big investment for us this year as we're seeing these early results. Now it's about, hey, how do we really cover the market well from a sales and sales support and customer success perspective. So that's a large investment center this year for us and one that we have high conviction will pay off nicely in the years to come.

1h 12s

Thank you.

1h 13s

Thanks, Joe. And finally, we go to Keith Housum at Northcoast.

1h 19s

Good morning, Good afternoon here. Thanks. I appreciate it guys. In terms of the enterprise opportunity, obviously, it sounds like we're having a lot of traction here. Brittney, maybe can you talk about the pricing there? I know it's still Mason, but in the public safety space, you guys have that nice matrix that you guys provided investors or several years. How do you think about pricing for the enterprise market? Is it in a similar vein or is there different pricing schemes that you're going through?

1h 48s

I mean, I would say it's in a similar vein. I wouldn't think about it as being materially different [indiscernible] price market, of course, but they're still buying gems licenses. They're thinking about fuses. They're thinking about body cameras. [indiscernible] There's certainly nuances, but nothing large I would call out for you on being highly different at this point.

1h 1m 12s

Okay. I appreciate that. And I apologize if I missed this perhaps earlier in the call. But obviously tariffs are top of mind for a lot of people these days, both on the a cost perspective for the companies as well as perhaps demand issues for geopolitical issues How are you guys thinking about tariffs from both aspects?

1h 1m 30s

Yes, we've tried to stay really flex you know, tariffs of some kind for a number of years. And so we really have found that just just being flexible and diversified is key. Now it's hard to exactly predict what is going to happen going forward. So without certainty on what the tariffs are going to be, it's hard to give a perfect answer. But based on what the talk is at least right now in terms of some of the proposed tariffs, there's nothing that I see that would really impact our guidance in any way. We think we've pretty well baked in what is knowable today.

1h 2m 12s

Great. Thanks guys. Good luck.

1h 2m 16s

Thank you.

1h 2m 21s

Awesome. All right. Well, obviously, we're delighted to have delivered another great year. Team's just doing a great job. I am insanely motivated by our customer feedback, one of the things I'd mentioned is I think ultimately TDEN has the opportunity to become a primary weapon system, and that could drive growth in the international markets even more than in The U. S. Where they will carry a gun and a TASER frequently on every officer. And my confidence in that future is growing. So, here's to a great 2025. We look forward to seeing you all on our next earnings call. Thanks for being part of the team.

Key Insights

Axon reported over $2 billion in revenue for 2024, nearly doubling its revenue from two years ago, with a third consecutive year of over 30% growth. The company also booked over $5 billion in business last year, with strong demand for TASER 10 and emerging products like AI Aeroplan.
International bookings grew nearly 50% sequentially in Q4, and enterprise bookings tripled year-over-year, including the largest deal in company history with a global logistics provider. These segments represent significant growth opportunities, with a total addressable market (TAM) of over $100 billion.
Axon achieved a 25% adjusted EBITDA margin for 2024, a milestone initially set for 2025, and provided 2025 guidance of $2.55-$2.65 billion in revenue (approximately 25% growth) and $640-$670 million in adjusted EBITDA (25% margin). The company plans to invest heavily in R&D, drones, robotics, and enterprise go-to-market functions.
AI tools like Draft1 and the AI Aeroplan are driving rapid adoption and delivering measurable ROI for customers, with significant time savings and operational efficiencies. Axon sees strong potential for agentic AI to further enhance customer workflows and solve complex problems.
The partnership with Skydio for autonomous drones is gaining traction, with Axon integrating Skydio's technology into its ecosystem. The drone market is seen as a $20 billion TAM opportunity, with Axon at a tipping point for broader adoption.

Recent Transcripts

Axon achieved record revenue and growth, with strong demand for TASER 10 and AI tools.

Income Statement

Revenue

	2020	2021	2022	2023	2024
Revenue	$681M	$863M	$1.2B	$1.6B	$2.1B
Cost of Revenue	$265M	$322M	$461M	$608M	$841M
Gross Profit	$416M	$541M	$729M	$955M	$1.2B
Gross Profit %	61%	63%	61%	61%	60%
R&D Expenses	$123M	$194M	$234M	$304M	$442M

2020

2021

2022

2023

2024

Revenue

$681M

$863M

$1.2B

$1.6B

$2.1B

Cost of Revenue

$265M

$322M

$461M

$608M

$841M

Gross Profit

$416M

$541M

$729M

$955M

$1.2B

Gross Profit %

61%

63%

61%

60%

R&D Expenses

$123M

$194M

$234M

$304M

$442M

Cash Flow

Net Income

	2020	2021	2022	2023	2024
Net Income	-$1.7M	-$60M	$147M	$174M	$377M
Dep. & Amort.	$12M	$19M	$24M	$33M	$48M
Def. Tax	-$16M	-$82M	$26M	-$68M	-$85M
Stock Comp.	$134M	$303M	$106M	$131M	$383M
Chg. in WC	-$101M	-$43M	$19M	-$118M	$0

2020

2021

2022

2023

2024

Net Income

-$1.7M

-$60M

$147M

$174M

$377M

Dep. & Amort.

$12M

$19M

$24M

$33M

$48M

Def. Tax

-$16M

-$82M

$26M

-$68M

-$85M

Stock Comp.

$134M

$303M

$106M

$131M

$383M

Chg. in WC

-$101M

-$43M

$19M

-$118M

Balance Sheet

Cash

	2020	2021	2022	2023	2024
Cash	$155M	$356M	$354M	$599M	$455M
ST Investments	$407M	$87M	$621M	$722M	$198M
Cash & ST Inv.	$562M	$443M	$975M	$1.3B	$653M
Receivables	$293M	$501M	$555M	$693M	$916M
Inventory	$90M	$109M	$202M	$270M	$265M

2020

2021

2022

2023

2024

Cash

$155M

$356M

$354M

$599M

$455M

ST Investments

$407M

$87M

$621M

$722M

$198M

Cash & ST Inv.

$562M

$443M

$975M

$1.3B

$653M

Receivables

$293M

$501M

$555M

$693M

$916M

Inventory

$90M

$109M

$202M

$270M

$265M

Go Deeper

Financial information provided by Financial Modeling Prep. Options data provided by Unusual Whales. Live transcripts provided by Quartr. All data is provided for informational purposes only, and is not intended for trading purposes or financial, investment, tax, legal, accounting or other advice. · See all tickers.

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RelatedRelated
EarningsEarnings
Income StatementIncome Statement
Cash FlowCash Flow
Balance SheetBalance Sheet

Earnings

Report Date

Feb 25, 2025

Reported Revenue

575.1M

Avg 1d Change

16.72%

Report Period

Q4 2024

Reported EPS

0.89

Implied Move 1d

14.32%

Transcript

34s

What an amazing group of people. The people I get to work with are employees, my teammates, our customers, working on problems we care about, it's it's a privilege I get to work here.

44s

1m 51s

2m 6s

3m 25s

We understand the interconnection of advanced software and hardware and we unlock value in solutions that leverage the seamless connectivity to solve problems we care deeply about.

3m 35s

4m 44s

5m 51s

6m 52s

I appreciate the kind words.

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I know I say this a lot, but we run our team with a next play mindset. What excites me most about our results is what they signal for the years ahead. That's why I love the beginning of the year.

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With this result, we reached both our three year revenue and adjusted EBITDA margin targets a full year ahead of schedule.

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For some context, we are now at four years of hitting fifth well above the rule of 40.

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This is driven both by Mortise or 10 capacity to keep up with our continued strong demand as well as investment in both R and D and manufacturing for our many exciting new product areas.

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Pull everyone into gallery view.

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All right.

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Understood. Thanks so much for the color and best wishes on continued success.

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Thanks. Thanks, Jeremy. Next, we have Meta Marshall at Morgan Stanley.

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Take the first part and I'll have Josh talk about the second part.

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Awesome.

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Great. Thanks. I'll pass it on. Thanks, Meta. Up next, we have Josh Riley at Needham. All right. Thanks for taking my questions.

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Just wanted to hit on the news with the Flox Safety partnership.

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Is something that gives them great comfort to go do their jobs with confidence [indiscernible] they're not going to get hung out to drive by somebody making something up about what they did.

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Understood. Thank you, guys.

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I can just immediately cross reference my reports. And all those capabilities are included in the new Aeroplan, which is why we saw it go from zero to revenue so quickly.

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Thank you.

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Thanks, everyone. Up next, we have Mike Ng at Goldman Sachs. Hey, good afternoon. Thanks for the question. I just have two.

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One on bookings and one on cloud. First, just on bookings, it's a two parter.

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You guys had bookings of over $5,000,000,000 this year.

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Next, we have Jonathan Ho at William Blair.

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Good afternoon. And let me echo my congratulations as well on the strong quarter.

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And to be honest, Jeff really holds me accountable.

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Lot of our conversations, Jeff uses the word actually a lot.

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Up next, we have Andrew Sherman. Andrew, welcome to the call.

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Great. Thanks, Eric. Good to be on the call.

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Great. Thank you all. Thanks, Andrew. Up next, we have Will Power at Baird.

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Great. Thanks.

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Guess I got a couple. Well, I guess first, Rick, I'm through the Lone Star State. We'd love to have you.

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Then for the chief, it's like, yeah, I'm getting more out of my people. So, it's paying for itself.

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Thank you. Thanks, Will. Up next, we have Trevor Walsh of JMP.

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Great. Thanks, team, for taking the questions.

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Great.

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Thanks all. Great finish to the year. Up next, we have Jordan Linus at Bank of America.

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Hey, thanks for taking the question. Could you guys talk about how you're approaching your go to market with Skydio and the Sky Swap program and how that's been going so far?

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And for your customers, your DEA or Border Patrol can they just go through you to buy the Skydio drone and you guys will put on your kit? So it's all connected or do you need both of you?

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We could do those deals on what we call Axon paper or on Skydeal paper.

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Got it.

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They typically prevent me from throwing numbers out because I get too enthusiastic, but I would say qualitatively, we're at a tipping point.

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Okay.

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You're starting to see more of an sorry, go ahead, Britney. I was going to say, we've got the TAM at about $20,000,000,000 for this.

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Thank you.

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Thanks, Joe. And finally, we go to Keith Housum at Northcoast.

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Great. Thanks guys. Good luck.

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Thank you.

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Key Insights

Axon reported over $2 billion in revenue for 2024, nearly doubling its revenue from two years ago, with a third consecutive year of over 30% growth. The company also booked over $5 billion in business last year, with strong demand for TASER 10 and emerging products like AI Aeroplan.
International bookings grew nearly 50% sequentially in Q4, and enterprise bookings tripled year-over-year, including the largest deal in company history with a global logistics provider. These segments represent significant growth opportunities, with a total addressable market (TAM) of over $100 billion.
Axon achieved a 25% adjusted EBITDA margin for 2024, a milestone initially set for 2025, and provided 2025 guidance of $2.55-$2.65 billion in revenue (approximately 25% growth) and $640-$670 million in adjusted EBITDA (25% margin). The company plans to invest heavily in R&D, drones, robotics, and enterprise go-to-market functions.
AI tools like Draft1 and the AI Aeroplan are driving rapid adoption and delivering measurable ROI for customers, with significant time savings and operational efficiencies. Axon sees strong potential for agentic AI to further enhance customer workflows and solve complex problems.
The partnership with Skydio for autonomous drones is gaining traction, with Axon integrating Skydio's technology into its ecosystem. The drone market is seen as a $20 billion TAM opportunity, with Axon at a tipping point for broader adoption.

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