Published on 11 Apr 2024 on Zacks via Yahoo Finance
Axon Enterprise (AXON) Banks on Solid Product Demand Amid Risks
Axon Enterprise, Inc. AXON has been witnessing solid momentum in its TASER segment, driven by growing orders for devices and cartridge products. Stable demand for virtual reality training services has also been supporting the segment’s growth. Also, solid momentum in Axon Evidence and cloud services, driven by increased number of users, average revenue per user and software add-ons, is driving the Software & Sensors segment’s growth.The company’s investments in product innovations, automation and manufacturing efficiency are expected to drive growth. For instance, AXON launched its next-generation body-worn camera, Axon Body 4, in April 2023. With upgraded features such as a bi-directional communications facility and a point-of-view camera module option, this body camera has been generating significant demand, thus bolstering the segment’s growth.Axon believes in adding complementary businesses to its portfolio via acquisitions. Its acquisition of Sky-Hero (July 2023), an innovator in drones and ground-based vehicles, expanded Axon Air portfolio. The buyout expanded Axon Enterprise’s capabilities to protect life and helps the company move ahead in its moonshot goal.Given strength across its business, management provided a bullish guidance for 2024. The company expects revenues in the range of $1.88-$1.94 billion, indicating growth of approximately 20-24% from a year ago. It expects adjusted EBITDA of $410-$430 million in 2024 with a margin expansion from 2023.
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