Axon reported third-quarter 2024 revenue of $544 million, marking a 32% increase year-over-year. This represents the company's eleventh consecutive quarter of revenue growth exceeding 25%. The company achieved a net income margin of 12.3% and an Adjusted EBITDA margin of 26.7%, which is its highest in over three years.
Performance was driven by strong demand across all segments, with TASER revenue growing 36% year-over-year to $222 million, primarily due to TASER 10. Axon Cloud & Services revenue increased 36% year-over-year to $203 million, fueled by new customer adoption and a net revenue retention rate of 123%. Sensors & Other revenue rose 18% to $120 million, with over 100,000 Axon Body cameras shipped in the quarter.
For the fourth quarter of 2024, Axon expects revenue between $560 million and $570 million, representing over 30% year-over-year growth at the midpoint. The company also projects Adjusted EBITDA for Q4 in the range of $130 million to $135 million, or approximately a 23.5% margin. This implies a full-year 2024 revenue of approximately $2.07 billion, reflecting over 32% annual growth, and a full-year Adjusted EBITDA margin of approximately 24.6%.
Axon announced the introduction of its AI Era Plan in Q4, which includes products like Draft One, Axon Auto-Transcribe, automatic license plate reading (ALPR), and video redaction. Draft One leverages real-time connected body cameras, cloud evidence management, video transcription, and generative AI. Axon Body 4 Live Translation is expected to be available to AI Era Plan subscribers in the first half of 2025.
The company also confirmed the closing of its acquisition of Dedrone, integrating airspace security technology into its Drone as First Responder (DFR) solution. The Campbell Police Department in California received a groundbreaking FAA waiver for beyond visual line of sight (BVLOS) DFR operations, including nighttime use, utilizing Dedrone by Axon. As of September 30, 2024, Axon held $1.01 billion in cash, cash equivalents, and investments, with a net cash position of $317 million.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.