Axon has reported the company’s first quarter 2020 financial results as well as its progress on new initiatives, Axon announced on Friday.
Axon noted that the company’s revenue grew 27 percent year over year to $147 million, with strength driven by our Software & Sensors product segment, which grew 41 percent year over year due to demand for Axon Cloud software offerings and Axon Body 3.
The company’s gross margin increased both sequentially and year over year to 60.2 percent and Axon’s operating expenses of $89 million included $20 million in stock-based compensation expense and $6 million in costs related to the FTC litigation.
The GAAP EPS was $0.07 and Non-GAAP EPS was $0.40. Axon’s quarterly adjusted EBITDA of $30 million more than doubled year over year, representing a 20 percent margin on revenue, and delivering a 51 percent incremental contribution margin on revenue when compared with Q1 2019.
Axon’s cash and cash equivalents and investments totaled $395 million, including an investment payable of $13.5 million at March 31, 2020. In addition to the company’s report, Axon also gave progress updates on Axon Dispatch.
The company noted that its SaaS strategy has driven a net revenue retention of 120 percent. Axon has driven adoption of its cloud software solutions through integrated bundling, which has created a flywheel effect of compounding benefits for customers.
Axon’s Officer Safety Plan 7+ has combined the company’s latest generation TASER devices and body cameras with a growing suite of cloud software, including the Axon Records records management system (RMS) and the Axon Aware live-streaming and real-time situational awareness platform.
The company has experienced major cities upgrading their subscriptions at individual net dollar retention rates of 150 percent to 300 percent to take advantage of Axon’s growing suite of productivity and digital evidence management tools.
The combined factors have sustained a dollar-based net revenue retention of about 120% across our entire SaaS customer base over the past two quarters. In addition, Axon has increased momentum in corrections. The company has engaged with more than 10 state departments of corrections, including the five most populous states in the country, including California, Texas, Florida, New York and Pennsylvania.
Axon is a mission-driven company whose overarching goal is to protect life. Our vision is a world where bullets are obsolete, where social conflict is dramatically reduced, and where everyone has access to a fair and effective justice system. Axon is also a leading provider of body cameras for US law enforcement, providing more transparency and accountability to communities than ever before.