Axon Enterprise, Inc. stock research
FY2024 Q3
Axon Enterprise (AXON) Gross Margin — Quarter Ended Dec 31, 2023
Revenue increased, driving a higher gross profit, but cost of revenue also rose, resulting in a slight decline in gross margin. The quarter's gross margin reflects the relationship between these metrics, with cost of revenue growing faster than revenue.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2024 Q3
Revenue increased, driving a higher gross profit, but cost of revenue also rose, resulting in a slight decline in gross margin. The quarter's gross margin reflects the relationship between these metrics, with cost of revenue growing faster than revenue.
- The primary observable driver is the relative growth of cost of revenue compared to revenue, as cost of revenue increased at a faster pace, compressing the gross margin.
- Compared to the prior quarter and the same quarter a year ago, revenue and gross profit were higher, but cost of revenue also increased, leading to a slightly lower gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
61.3%
Gross profit
$264.0M
Revenue
$430.4M
Cost of revenue
$166.4M
Quarter-over-quarter change
-0.5 pts
Year-over-year change
-0.5 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% |
| Dec 31, 2023 | $430.4M | $264.0M | $166.4M | 61.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-0.5 pts
Year-over-year change
Sep 30, 2023
-0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver is the relative growth of cost of revenue compared to revenue, as cost of revenue increased at a faster pace, compressing the gross margin.
Compared to the prior quarter and the same quarter a year ago, revenue and gross profit were higher, but cost of revenue also increased, leading to a slightly lower gross margin.
Monitor the trend of cost of revenue growth relative to revenue growth in upcoming quarters.