Axon Enterprise, Inc. stock research
FY2023 Q1
Axon Enterprise (AXON) Gross Margin — Quarter Ended Mar 31, 2023
Revenue and gross profit both increased compared with the previous quarter and the same quarter last year. However, gross margin declined as cost of revenue grew at a faster rate relative to revenue.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue and gross profit both increased compared with the previous quarter and the same quarter last year. However, gross margin declined as cost of revenue grew at a faster rate relative to revenue.
- The primary observable margin driver is the change in the relationship between cost of revenue and revenue, with cost of revenue increasing more rapidly than revenue, leading to a lower gross margin.
- Gross margin was lower than both the immediately preceding quarter and the same quarter one year earlier, while revenue and gross profit were higher in both comparisons.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.4%
Gross profit
$204.5M
Revenue
$344.3M
Cost of revenue
$139.9M
Quarter-over-quarter change
n/a
Year-over-year change
-1.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $344.3M | $204.5M | $139.9M | 59.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
-1.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable margin driver is the change in the relationship between cost of revenue and revenue, with cost of revenue increasing more rapidly than revenue, leading to a lower gross margin.
Gross margin was lower than both the immediately preceding quarter and the same quarter one year earlier, while revenue and gross profit were higher in both comparisons.
Monitor whether the ratio of cost of revenue to revenue stabilizes or continues to increase.