AXON ENTERPRISE Announces Q2 Fiscal Year 2023 Earnings Results
August 12, 2023
🌥️Earnings Overview
AXON ENTERPRISE ($NASDAQ:AXON) released their second quarter fiscal year 2023 earnings on June 30th 2023, reporting total revenue of USD 374.6 million, a 31.2% increase compared to the same period in the previous year. Unfortunately, their net income decreased by 75.6% year-over-year, settling at USD 12.4 million.
Price History
The stock opened at $179.2 and closed at $175.7, representing a decrease of 2.2% from the company’s previous closing price of $179.7. The earnings results showed that overall revenue for the quarter was up 4%, with net income increasing by 12%. This was driven by strong sales in their portfolio of innovative products and services, along with cost cutting initiatives. The earnings also revealed that AXON ENTERPRISE has continued to invest heavily in research and development activities, which is anticipated to drive future growth for the business.
The company has also strengthened its balance sheet with improved cash flow and debt levels. Overall, the Q2 earnings report was mostly positive and was well received by investors. With continued investments in its product portfolio, and a share buyback program in place, it appears that AXON ENTERPRISE is well positioned for future success in the coming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Axon Enterprise. More…
| Total Revenues | Net Income | Net Margin |
| 1.37k | 98.86 | 7.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Axon Enterprise. More…
| Operations | Investing | Financing |
| 158.35 | -550.92 | 652.75 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Axon Enterprise. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.08k | 1.63k | 19.33 |
Key Ratios Snapshot
Some of the financial key ratios for Axon Enterprise are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 32.2% | -11.1% | 8.2% |
| FCF Margin | ROE | ROA |
| 8.1% | 4.9% | 2.3% |
Analysis
At GoodWhale, we have conducted an analysis of AXON ENTERPRISE‘s financials and classified them as a ‘gorilla’, a type of company that has achieved stable and high revenue or earnings growth due to a strong competitive advantage. As such, investors interested in such companies may be interested in investing in AXON ENTERPRISE. The company is strong in terms of assets, growth and profitability, but weak in dividend payments, indicating that investors could expect a lower return on their investment than with other stocks. Despite this, AXON ENTERPRISE has a high health score of 9/10 considering its cashflows and debt, making it a safe investment even during times of crisis where there is no risk of bankruptcy. More…
Peers
Its competitors include Shi Corp, Ultra Electronics Holdings PLC, and Shenzhen TVT Digital Technology Co Ltd.
– Shi Corp ($OTCPK:SHCC)
Shi Corp is a publicly traded company with a market capitalization of 1.39k as of 2022. The company has a Return on Equity of -0.64%. Shi Corp is engaged in the business of providing technology solutions and services. The company’s products and services include enterprise software, cloud computing, big data, and analytics.
– Ultra Electronics Holdings PLC ($SZSE:002835)
Shenzhen TVT Digital Technology Co Ltd has a market cap of 2.64B as of 2022, a Return on Equity of 8.41%. The company operates in the field of digital technology, providing products and services related to digital television, set-top boxes, and other digital products and services. It is headquartered in Shenzhen, China.
Summary
AXON ENTERPRISE reported total revenue of USD 374.6 million for the second quarter of their fiscal year 2023, representing a 31.2% year-over-year increase. Despite this growth in revenue, their net income decreased by 75.6% year-over-year to USD 12.4 million. This decrease in net income raises questions about the company’s ability to scale and generate sustainable profits. Investors should be cautious when considering investing in AXON ENTERPRISE, as continued negative performance could indicate an unstable future for the company.
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