Axon Enterprise (AXON) FY2023 results: revenue $1.6 billion, up 31.7% on the year

Axon Enterprise, Inc. (AXON) reported revenue of $1.6 billion for fiscal 2023, the year ended 31 December 2023, up 31.7% on the year before. Net income was $176 million, up 19.5%, and diluted earnings per share $2.33. The figures are the company's own, from the 10-K it filed with the SEC on 27 February 2024.

Revenue

$1.6 billion

+31.7% on the year

FY2016FY2023

Operating margin

10.0%

7.8% a year earlier

FY2016FY2023

Net income

$176 million

+19.5% on the year

FY2016FY2023

Diluted EPS

$2.33

+14.8% on the year

FY2016FY2023

this yearthe year beforeHover a bar for its figure.

The year in brief

The four quarters: Q1 FY2023 · Q2 FY2023 · Q3 FY2023 · Q4 FY2023

Income statement (profit and loss)

$ million	FY2023	FY2022	FY2021	On the year
Revenue	1,563	1,187	863	+31.7%
Cost of revenue	605	461	322	+31.2%
Gross profit	955	726	541	+31.6%
Gross margin	61.1%	61.2%	62.7%
Research and development	304	234	194	+29.9%
Selling, general and administrative	495	399	515	+23.9%
Operating income	157	93.0	-168	+68.7%
Operating margin	10.0%	7.8%	-19.5%
Interest expense	7.0	n/a	n/a
Pre-tax income	157	197	-141	-20.1%
Income tax	-18.7	49.4	-81.4
Effective tax rate	-11.9%	25.1%	n/a
Net income	176	147	-60.0	+19.5%
Net margin	11.2%	12.4%	-7.0%
Diluted EPS	$2.33	$2.03	-$0.91	+14.8%

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	FY2023	FY2022	FY2021	On the year
Operating cash flow	189	235	124	-19.6%
Capital expenditure	59.6	55.8	49.9	+6.9%
Free cash flow	130	180	74.6	-27.8%
Free cash flow margin	8.3%	15.1%	8.6%
Cash from investing	12.5	-831	253
Cash from financing	41.3	598	-174	-93.1%
Depreciation and amortisation	19.3	23.1	18.7	-16.4%
Share-based compensation	131	106	303	+23.7%
Diluted shares, weighted	75m	73m	66m	+4.0%
Shares outstanding at period end	75m	71m	71m	+5.4%

Balance sheet

$ million	FY2023	FY2022	FY2021	On the year
Shareholders' equity	1,616	1,268	1,050	+27.4%
Debt	677	674	0.0	+0.5%
Operating lease liabilities	33.5	37.1	20.4	-9.7%
Other liabilities	1,083	872	618	+24.1%
Total liabilities and equity	3,409	2,852	1,688	+19.5%
Fixed assets	201	170	138	+18.1%
Goodwill	57.9	45.0	43.6	+28.8%
Intangible assets	19.5	12.2	15.5	+60.7%
Investments	644	738	45.7	-12.7%
Cash and equivalents	599	354	356	+69.2%
Inventory	270	202	109	+33.3%
Other assets	1,619	1,331	980	+21.6%
Total assets	3,409	2,852	1,688	+19.5%

10-K for the year ended 31 December 2023, filed 27 February 2024: the filing.