Axon Enterprise, Inc. stock research
FY2024 Q1
Axon Enterprise (AXON) Gross Margin — Quarter Ended Mar 31, 2024
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was higher than a year ago but slightly lower than the prior quarter. Cost of revenue rose more than proportionally, causing gross margin to weaken relative to both comparison periods.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was higher than a year ago but slightly lower than the prior quarter. Cost of revenue rose more than proportionally, causing gross margin to weaken relative to both comparison periods.
- The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth; revenue increased while cost of revenue rose at a faster pace, compressing gross margin.
- Compared to the immediately preceding quarter, gross margin weakened as cost of revenue grew faster than revenue. Versus the same quarter one year earlier, gross margin also weakened, with cost of revenue increasing more than gross profit.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
56.2%
Gross profit
$258.6M
Revenue
$459.9M
Cost of revenue
$201.2M
Quarter-over-quarter change
-5.1 pts
Year-over-year change
-3.1 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2024 | $459.9M | $258.6M | $201.2M | 56.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-5.1 pts
Year-over-year change
Mar 31, 2023
-3.1 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 while cost of revenue rose at a faster pace, compressing gross margin.
Compared to the immediately preceding quarter, gross margin weakened as cost of revenue grew faster than revenue. Versus the same quarter one year earlier, gross margin also weakened, with cost of revenue increasing more than gross profit.
Monitor the trajectory of cost of revenue relative to revenue, as its faster growth has been the primary factor behind the gross margin decline.