Axon raises FY24 revenue view to $1.94B-$1.99B from $1.88B-$1.94B

Consensus is for FY24 revenue $1.93B. Sees FY24 Adjusted EBITDA $430M-$445M, implying Adjusted EBITDA margin of approximately 22%. This is an increase from prior Adjusted EBITDA guidance of $410M-$430M. Raises FY24 CApEx view to $80M-$95M from $60M-$75M. The company said, “We provide Adjusted EBITDA guidance, rather than net income guidance, due to the inherent difficulty of forecasting certain types of expenses and gains such as stock-based compensation, income tax expenses and gains or losses on marketable securities and strategic investments, which affect net income but not Adjusted EBITDA. We are unable to reasonably estimate the impact of such expenses, which could be material, on net income. Accordingly, we do not provide a reconciliation of projected net income to projected Adjusted EBITDA. We expect stock-based compensation expenses to be approximately $215M-$230M for the full year. Full year expected stock-based compensation expense includes approximately $43M in expenses related to a one-time enhanced equity compensation program provided to employees whose compensation is under a specified threshold. We expect this expense to be primarily reflected within COGS. Approximately $30M in stock-based expense related to this compensation opportunity was recognized in the Q1, in-line with vesting schedules.” The company added, “The increase in our CapEx expectations is primarily a result of accelerated capacity expansion investments to meet higher demand for TASER 10. Our 2024 CapEx plans include investments in TASER 10 automation and capacity expansion, including cartridge capacity and lab enhancements and global facility build-out and upgrades, such as warehousing support for global shipping facilities.”