Axon delivered a strong set of results: sales and earnings beat expectations, and the company also raised its outlook.
Growth is primarily driven by AI products, software, and the counter-drone segment, where demand remains high. The core business, such as cameras and Tasers, is also performing quite well.
Yes, but there are some downsides… margins are under pressure and cash flow turned negative due to inventory growth. The overall picture is still positive, but profitability is concerning investors.
https://x.com/StockSavvyShay/status/2052118686400700670
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According to Axon’s founder, the company is now developing drones that could stop suspects without using lethal force.
Currently, drones provide police with situational awareness, but they are not yet able to influence the “target” itself. The company emphasizes that it does not intend to manufacture lethal drones; instead, the goal is to develop methods that reduce fatal incidents.
Drones will be stopping perps in the future, Axon (AXON) co-founder Rich Smith says.
“The drone that is capable of stopping somebody is in the future. The drones today will effectively fly over a scene, and they will give you an immediate awareness of what’s happening … But we do not yet have the ability to put an effect on somebody. That is something we’re actively in R&D on,” Smith said in a new episode of the Power Players with Brian Sozzi podcast (video above; listen in below).
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Axon continued its strong growth; revenue grew significantly, beating expectations for the tenth consecutive quarter.
Software, service, and hardware sales performed well, and both the order backlog and recurring revenue saw strong growth. The company raised its full-year revenue guidance. On the other hand, EPS was lower than last year, and free cash flow was slightly negative this time.
https://x.com/earnings_guy/status/2085093846115926164
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