Quarterly solid results supported Axon Enterprises’ quotes

Law enforcement hardware and software maker Axon Enterprise Inc. (AXON) reported double-digit revenue growth in the second quarter. The primary market for the company is still the police, but the management plans to increase sales in the civilian market. Axon Enterprise’s revenue in the second quarter increased by 31% year-on-year to almost $286 million. Sales of Taser non—lethal weapons increased by 20.5% year-on-year, sales of body cameras – by 49%, and sales of cloud storage increased by 35%. 

Adjusted earnings per share were $0.44. The company easily surpassed Wall Street forecasts in revenue and profit; management even slightly increased the estimates for the entire year to $1.07-$1.12 billion. Adjusted EBITDA to be between $190 million and $200 million. The primary target audience for Axon Enterprise is law enforcement agencies, the offer for which is steadily expanding. The business was an early adopter and industry leader in many now-standard technologies for law enforcement and other government agencies in the United States, including live video streaming from body cameras to the cloud.

A promising market for the company is sales in the civilian market. This segment is at the initial stage of development — Axon sales in this segment amounted to $5.2 million for the quarter. Axon management believes that someday the consumer business may become as large as the market for law enforcement equipment. In particular, the company planned to produce specialized drones, GPS trackers for continuous location monitoring, and emergency medical services. Axon Enterprise also has a significant unrealized potential for international expansion. In nations where citizens do not have access to more suitable forms of self-defense, we are discussing the possible growth of the market for Taser shock guns.