Axon Enterprise Stock Soars to All-Time High Following Strong Q3 Financial Results

Axon Enterprise Inc. saw its stock surge to an all-time high on Friday, November 8, 2024, following the release of its robust third-quarter financial results. As of 10 a.m. ET, Axon‘s stock was up 13% and had reached a high of approximately $550 per share.

The significant increase in stock price is attributed to Axon’s impressive Q3 performance, which included a 32% year-over-year revenue growth to $544 million. This marks the company’s 11th consecutive quarter of growth exceeding 25%.

Axon’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) also saw a substantial increase, rising 54% to $145 million. These strong financial metrics exceeded investor expectations and prompted the company to raise its full-year guidance. Axon now anticipates revenue of $2.07 billion and adjusted EBITDA of $510 million for 2024, up from the previous estimates of $2 billion to $2.05 billion in revenue and $460 million to $475 million in adjusted EBITDA.

The company’s recurring revenue and long-term contracts with law enforcement agencies contribute to its stable and promising outlook. Axon’s annual recurring revenue (ARR) increased by 36% year over year to $885 million, and its future contracted revenue rose by 33% to $7.7 billion. These metrics indicate sustained growth and strong demand for Axon’s products and services.

Axon’s expansion into new verticals, including AI initiatives such as the Draft One product, and strategic acquisitions like Dedrone, are also driving its growth. The company is seeing strong international bookings and is well-positioned for future expansion in the public safety and technology sectors.