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Investing.com -- Axon Enterprise, Inc. (NASDAQ:AXON) reported first-quarter results that surpassed analyst expectations, driven by strong growth in its Software (ETR:SOWGn) & Services segment. The company also raised its full-year revenue guidance, sending shares up 2.2% in after-hours trading.
The law enforcement technology company posted adjusted earnings per share of $1.41, beating the analyst consensus of $1.30. Revenue for the quarter reached $604 million, exceeding estimates of $585.67 million and representing a 31% increase YoY.
Axon’s Software & Services segment was a key driver of growth, with revenue surging 39% YoY to $263 million. The company’s Annual Recurring Revenue (ARR) grew 34% YoY to $1.1 billion, reflecting strong demand for its premium software offerings.
Connected Devices revenue, which includes TASER and body camera sales, increased 26% YoY to $341 million. TASER revenue grew 19% to $195 million, while Personal Sensors revenue rose 30% to $88 million.
"Axon delivered a strong start to 2025, achieving record quarterly revenue while maintaining healthy margins and reinforcing our foundation for long-term growth through continued product innovation," said Rick Smith, Axon’s Founder and CEO.
Based on its strong performance, Axon raised its full-year 2025 revenue outlook to a range of $2.60 billion to $2.70 billion, up from its previous forecast of $2.55 billion to $2.65 billion. This new guidance represents approximately 27% growth at the midpoint and surpasses the analyst consensus of $2.62 billion.
The company maintained its target for an Adjusted EBITDA margin of approximately 25%, or $650 million to $675 million, an increase from its previous outlook of $640 million to $670 million.
Axon’s net income for the quarter was $88 million, supporting a non-GAAP net income of $115 million and Adjusted EBITDA of $155 million.
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