Axon Enterprise, Inc. stock research
FY2023 Q3
Axon Enterprise (AXON) Gross Margin — Quarter Ended Sep 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 was slightly lower than the prior quarter but remained broadly stable relative to the year-ago period.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
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 was slightly lower than the prior quarter but remained broadly stable relative to the year-ago period.
- The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth; revenue increased more than cost of revenue on a sequential basis, supporting gross profit expansion despite a marginal gross margin decline.
- Compared to the immediately preceding quarter, gross margin weakened slightly. Compared to the same quarter one year earlier, gross margin was essentially stable.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
61.8%
Gross profit
$255.2M
Revenue
$412.7M
Cost of revenue
$157.4M
Quarter-over-quarter change
-0.2 pts
Year-over-year change
-0.1 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% |
| Sep 30, 2023 | $412.7M | $255.2M | $157.4M | 61.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-0.2 pts
Year-over-year change
Sep 30, 2022
-0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth; revenue increased more than cost of revenue on a sequential basis, supporting gross profit expansion despite a marginal gross margin decline.
Compared to the immediately preceding quarter, gross margin weakened slightly. Compared to the same quarter one year earlier, gross margin was essentially stable.
Monitor the trend in cost of revenue relative to revenue, as a sustained faster increase in cost of revenue could pressure gross margin.