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Axon (NASDAQ:AXON) charged to the top of Wednesday’s S&P 500 leaderboard, closing +13.7% with an all-time intraday high $318.90, after the Taser maker reported Q4 adjusted earnings that easily beat Wall Street estimates and issued sales guidance that exceeded expectations.
Q4 net income rose to $57.3M, or $0.75/share, from $29.2M, or $0.40/share, in the year-earlier quarter, while revenues rose 28.5% Y/Y to $432.1M, primarily driven by Axon Cloud software, whose sales jumped 44% to $163.6M, reflecting user growth and increasing adoption of premium add-on features related to Axon Evidence; Taser segment revenue rose 18%, driven by the continued ramp of Taser 10, partially offset by a decline in Taser 7.
For FY 2024, Axon (AXON) forecast revenues of $1.88B-$1.94B, above $1.88B analyst consensus estimate, representing 20%-24% annual growth.
Beyond 2024, Axon (AXON) said it expects to achieve continued 20% or greater compound annual revenue growth and continues to target adjusted EBITDA margins of ~25%, while also remaining committed to delivering strong cash generation with adjusted free cash flow conversion on adjusted EBITDA of at least 60% by 2025.