Axon Enterprise Reports 33.4% Revenue Growth to $2.1 Billion for Fiscal Year 2024

Axon Enterprise, Inc. reported significant financial growth for the fiscal year ending December 31, 2024, with total revenues reaching $2.1 billion, an increase of 33.4% from $1.56 billion in 2023. The company achieved a net income of $377 million, compared to $175.8 million in the previous year. This growth was driven by strong sales across both its TASER and Software and Sensors segments, with notable increases in product sales, particularly in TASER devices and cloud services. The gross margin for the year was 59.6%, down from 61.2% in 2023, primarily due to higher stock-based compensation expenses and amortization of acquired intangibles.

In terms of operational developments, Axon expanded its customer base and product offerings, with a notable increase in annual recurring revenue from its cloud-hosted services, which totaled $1 billion as of December 31, 2024. The company also reported a 23% increase in its employee headcount, bringing the total to over 4,100 full-time employees, reflecting its ongoing investment in research and development and operational capabilities. Axon’s international sales also grew, accounting for 15% of total revenue, up from 14% in the previous year, indicating successful geographic expansion.

Strategically, Axon completed two significant acquisitions in 2024, acquiring the remaining interests in Fusus and Dedrone, which are expected to enhance its capabilities in real-time crime center technology and airspace security, respectively. These acquisitions contributed to a substantial increase in goodwill and intangible assets on the balance sheet, with the company recording $701.7 million in goodwill from Fusus and $451.1 million from Dedrone. The integration of these businesses is anticipated to drive further growth and innovation in Axon's product offerings.

Despite the positive financial performance, Axon acknowledged a material weakness in its internal controls related to revenue recognition, which could impact future financial reporting. The company is actively working on remediation plans to address these issues. Looking ahead, Axon remains optimistic about its growth trajectory, with plans to continue expanding its product lines and enhancing its software and services offerings, while also navigating the challenges posed by market conditions and regulatory environments. The company expects to maintain strong revenue growth and improve operational efficiencies in the coming fiscal year.