Axon reported record fourth-quarter 2024 revenue of $575 million, a 34% increase year-over-year, marking its twelfth consecutive quarter of over 25% growth. For the full year 2024, revenue grew 33% to $2.1 billion, achieving its third consecutive year of over 30% annual revenue growth. The company reported a full-year net income margin of 18.1% and an Adjusted EBITDA margin of 25.0%.
In Q4, TASER revenue grew 37% to $221 million, driven by TASER 10 and VR training solutions. Sensors & Other revenue increased 18% to $124 million, supported by demand for Axon Body 4 and Axon Fleet 3. Axon Cloud & Services revenue, which accounted for 40% of total revenue, grew 41% to $230 million, fueled by premium subscription adoption. The company's Q4 adjusted earnings per share of $2.08 surpassed analyst estimates of $1.53.
Axon provided its full-year 2025 guidance, projecting revenue between $2.55 billion and $2.65 billion, representing approximately 25% annual growth at the midpoint. Adjusted EBITDA for 2025 is expected to be between $640 million and $670 million, targeting an approximate 25% margin. This outlook reflects confidence in continued momentum and strategic execution.
The company highlighted five key innovative leaps in 2024, including the introduction of its AI-powered solutions like Draft One, which contributed to over 100,000 incident reports and saved officers 2.2 million minutes. Axon also strengthened its Real-Time Operations platform with the acquisition of Fusus and expanded its Drone as First Responder (DFR) solution through the acquisition of Dedrone and a partnership with Skydio. These advancements contributed to an expanded total addressable market (TAM) estimate of $129 billion.
Effective in Q1 2025, Axon realigned its business segments into Connected Devices (hardware) and Software & Services (software and services) to better reflect its expanded offerings. As of December 31, 2024, Axon had $800 million in cash, cash equivalents, and investments, with a net cash position of $110 million, following the Dedrone acquisition.
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