#How Did Axon Enterprise Perform in the Fourth Quarter?
Axon Enterprise experienced impressive growth in its fourth quarter, with shares increasing over 20%. This surge was driven by a notable rise in the demand for its AI-enhanced software tools. The company's efforts resulted in significant adoption across its expanding customer base.
In its most recent results, Axon reported record Software & Services revenue of $343 million. This marks a 40% increase and demonstrates the ongoing momentum in its high-margin SaaS business. Furthermore, full-year revenue climbed by 33%, reaching $2.8 billion for the fourth consecutive year of over 30% growth. This growth was bolstered by strong bookings, totaling $7.4 billion, and future contracted bookings anticipated to be $14.4 billion.
#What Are Axon's Financial Highlights?
In the latest financial report, Axon revealed net income of $3 million in the fourth quarter. Non-GAAP net income hit $178 million, while Adjusted EBITDA was reported at $206 million. The company also maintained a Rule of 40 score above 55 and achieved a full-year Adjusted EBITDA margin of 25.5%. This performance occurred despite ongoing strategic investments in artificial intelligence, new product categories, and acquisitions.
#What Does the Future Hold for Axon?
Axon has set ambitious revenue growth projections for 2026, estimating an increase between 27% and 30%. The company has established targets for 2028, aiming for $6 billion in revenue and an Adjusted EBITDA margin of 28%. These goals reflect management's confidence in the rapidly expanding AI ecosystem and the recurring revenue model.
Rick Smith, Axon’s CEO and founder, described the current environment as unprecedented. He emphasized the company's strategy to deploy AI more aggressively and thoughtfully, which they believe will create unique value for customers.
By focusing on these strategic initiatives, Axon aims not only to enhance its position in the market but also to foster a responsible approach in utilizing its AI capabilities for optimal customer service.