Axon Enterprise, Inc. stock research
FY2023 Q2
Axon Enterprise (AXON) Gross Margin — Quarter Ended Jun 30, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved relative to the prior quarter and was slightly higher than the same quarter one year earlier.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved relative to the prior quarter and was slightly higher than the same quarter one year earlier.
- The strongest observable margin driver was the increase in gross profit relative to revenue growth, as the gross margin rose both sequentially and year over year.
- Gross margin improved from the immediately preceding quarter and was slightly higher than the same quarter one year earlier, reflecting a favorable relationship between revenue and cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
62.1%
Gross profit
$231.8M
Revenue
$373.3M
Cost of revenue
$141.5M
Quarter-over-quarter change
+2.7 pts
Year-over-year change
+1.2 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% |
| Jun 30, 2023 | $373.3M | $231.8M | $141.5M | 62.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+2.7 pts
Year-over-year change
Jun 30, 2022
+1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver was the increase in gross profit relative to revenue growth, as the gross margin rose both sequentially and year over year.
Gross margin improved from the immediately preceding quarter and was slightly higher than the same quarter one year earlier, reflecting a favorable relationship between revenue and cost of revenue.
Monitor the trend in cost of revenue relative to revenue, as a higher cost growth rate could pressure future gross margins.