Axon Enterprise, Inc. reported significant financial growth in its third quarter and the first nine months of 2024, driven by increased sales across its product lines. For the three months ended September 30, 2024, total revenue reached $544.3 million, a 31.7% increase from $413.3 million in the same period of 2023. For the nine months ended September 30, 2024, total revenue was $1.5 billion, up 33.4% from $1.1 billion in the prior year. The growth was primarily attributed to strong sales in the TASER Devices and Software and Sensors segments, with TASER segment net sales increasing by 32.1% to $597.4 million for the nine-month period.

Despite the revenue growth, Axon experienced a decline in income from operations, which fell to $24.1 million in Q3 2024 from $57.4 million in Q3 2023. For the nine-month period, income from operations decreased to $74.3 million from $114.1 million in the previous year. The gross margin for Q3 2024 was 60.8%, down from 62.1% in Q3 2023, while the nine-month gross margin also decreased to 59.4% from 61.2%. The decline in margins was attributed to increased stock-based compensation expenses and higher operating costs.

Net income for Q3 2024 was $67.0 million, compared to $61.3 million in Q3 2023, while net income for the nine months ended September 30, 2024, was $241.9 million, significantly up from $118.7 million in the same period of 2023. The increase in net income was bolstered by unrealized gains on marketable securities, which amounted to $44.0 million in Q3 2024, compared to $4.1 million in the prior year.

Strategically, Axon made notable acquisitions, including the remaining 79.7% interest in Fusus, LLC for approximately $241.3 million, enhancing its capabilities in real-time crime center technology. Additionally, in October 2024, Axon acquired Dedrone Holdings, Inc. for about $400 million, further expanding its Software and Sensors segment. These acquisitions contributed to a significant increase in goodwill, which rose to $308.5 million as of September 30, 2024.

The company also reported a substantial increase in operating expenses, which rose to $306.7 million in Q3 2024 from $199.2 million in Q3 2023, reflecting higher stock-based compensation and increased headcount. As of September 30, 2024, Axon had total current assets of $2.4 billion, up from $2.4 billion at the end of 2023, and total assets of $4.0 billion, compared to $3.4 billion at the end of the previous year.

Overall, Axon’s performance in 2024 reflects strong revenue growth and strategic expansion through acquisitions, despite challenges in profitability and increased operational costs.