Press release
Axon raises outlook after Q2 2023 revenue grows 31% to $375 million
SCOTTSDALE, Ariz., Aug. 8, 2023 /PRNewswire/ -- Axon Cloud & Services revenue of $133 million up 62% year over yearAnnual recurring revenue grows 52% to $559
About this update from Axon Enterprise, Inc.
[{"type":"text","content":"SCOTTSDALE, Ariz., Aug. 8, 2023 /PRNewswire/ -- \n\n \n \n \n \n \n \n\n \nAxon Cloud & Services revenue of $133 million up 62% year over yearAnnual recurring revenue grows 52% to $559 millionNet income of $12 million supports Adjusted EBITDA of $82 millionFull year revenue outlook raises to $1.51 billion to $1.53 billion, or approximately 27% to 29% annual growth; maintains 20% full year Adjusted EBITDA margin guidanceFellow shareholders,\nAxon delivered a strong first half of 2023 supported by robust demand across our product portfolio, with notable strength in Axon Cloud & Services. We achieved second quarter annual revenue growth of 31% alongside our sixth consecutive quarter of GAAP profitability.\nAxon Cloud & Services grew 62% year over year, highlighting the powerful market appetite for our cloud platform and premium bundles. We drove this growth through both signing on new customers as well as expanding services to existing customers. Net revenue retention increased to 122% from 121% last quarter. As a reminder, net revenue retention (\"NRR\") measures our ability to grow with our existing Software-as-a-Service (\"SaaS\") customers. NRR compares the revenue contribution of our year-ago SaaS cohort with their revenue contribution today. We want to highlight that even with this continued strong growth, the penetration rate of our Officer Safety Plan (\"OSP\") bundles is less than 20% relative to our potential state and local law enforcement install base in the U.S.(1)\nWe are pleased to update our full year outlook to about 28% revenue growth at the midpoint and maintain our Adjusted EBITDA margin guidance of 20%. Our updated outlook reflects increased visibility after the successful launch of two new products, TASER 10 and Axon Body 4, as well as continued momentum in Fleet cameras and software. We commit to long term subscription contracts with our customers that allow us to execute on our goals to drive growth and improve profitability.\nLooking further ahead\nInnovation has always been core to our DNA. What sets us apart is our relentless drive to power adoption of disruptive technology. Six years ago, we published a vision video with the idea that artificial intelligence could one day extract key information from body camera videos, which together with a brief oral description from the officer, could be used to write...