Axon Enterprise (AXON) Q4 2024 earnings summary

Executive summary

• Achieved $2.1 billion in 2024 annual revenue, up 33% year-over-year, marking the third consecutive year of 30%+ growth and strong profitability with high recurring revenue from subscription plans.

• Q4 revenue reached $575 million, up 34% year-over-year, with double-digit growth across all business areas and product segments.

• Booked over $5 billion in business for the year, with future contracted bookings now exceeding $10.1 billion.

• Strong adoption of new products, especially TASER 10, AI-driven solutions, and real-time crime center tech, with rapid uptake in international and enterprise segments.

• Major product innovations included AI-powered policing, enterprise security, and expansion through acquisitions such as Fusus and Dedrone.

Financial highlights

• 2024 adjusted gross margin was 63.2%, with Q4 at 63.2%; adjusted EBITDA margin reached 25% for the year and 24.6% in Q4.

• Annual recurring revenue (ARR) increased to $1.0 billion, up 37% year-over-year; net revenue retention remained strong at 123%.

• Free cash flow for 2024 was $344 million, with a conversion rate exceeding 60%.

• Non-GAAP net income for 2024 was $466 million; diluted non-GAAP EPS was $5.94.

• As of year-end, cash and investments totaled $800 million; net cash position was $110 million after accounting for $690 million in convertible notes.

Outlook and guidance

• 2025 revenue guidance is $2.55–$2.65 billion, implying ~25% annual growth at midpoint.

• 2025 adjusted EBITDA expected between $640–$670 million, maintaining a 25% margin.

• CapEx projected at $140–$180 million, up year-over-year, mainly for TASER 10 capacity, R&D, and facilities expansion.

• Guidance assumes no incremental revenue from Ukraine.

• Stock-based compensation for 2025 projected at $580–$630 million, including $325 million for broad-based and CEO performance awards.