Axon Enterprise, Inc. stock research
FY2024 Q2
Axon Enterprise (AXON) Gross Margin — Quarter Ended Jun 30, 2024
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue decreased, resulting in an improved gross margin. Compared to the same quarter last year, revenue and gross profit were higher, but cost of revenue also rose, leading to a lower gross margin.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue decreased, resulting in an improved gross margin. Compared to the same quarter last year, revenue and gross profit were higher, but cost of revenue also rose, leading to a lower gross margin.
- The strongest observable margin driver is the relationship between revenue growth and cost of revenue change: revenue increased while cost of revenue declined from the prior quarter, directly supporting gross margin expansion.
- Gross margin improved sequentially from the prior quarter but weakened compared to the same quarter one year earlier. The sequential improvement occurred as revenue grew and cost of revenue fell, while the year-over-year decline reflects a larger increase in cost of revenue relative to revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
60.8%
Gross profit
$306.2M
Revenue
$503.2M
Cost of revenue
$197.1M
Quarter-over-quarter change
+4.6 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2024 | $503.2M | $306.2M | $197.1M | 60.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+4.6 pts
Year-over-year change
Jun 30, 2023
-1.2 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 change: revenue increased while cost of revenue declined from the prior quarter, directly supporting gross margin expansion.
Gross margin improved sequentially from the prior quarter but weakened compared to the same quarter one year earlier. The sequential improvement occurred as revenue grew and cost of revenue fell, while the year-over-year decline reflects a larger increase in cost of revenue relative to revenue.
Monitor the trajectory of cost of revenue relative to revenue, as its year-over-year increase outpaced revenue growth and compressed gross margin.