AX

Axon Enterprise, Inc. stock research

Sep 30, 2024

FY2024 Q3

Axon Enterprise (AXON) Gross Margin — Quarter Ended Sep 30, 2024

Revenue and gross profit both grew compared to the immediately preceding quarter and the same quarter one year earlier. Cost of revenue increased at a slower rate than revenue, leaving gross margin stable versus the prior quarter but slightly lower than the year-ago quarter.

Gross margin takeaway

Quarter ended Sep 30, 2024 · FY2024 Q3

Revenue and gross profit both grew compared to the immediately preceding quarter and the same quarter one year earlier. Cost of revenue increased at a slower rate than revenue, leaving gross margin stable versus the prior quarter but slightly lower than the year-ago quarter.

  • Gross margin remained unchanged from the prior quarter, indicating that the relationship between revenue and cost of revenue held steady in the most recent period.
  • Compared to the immediately preceding quarter, gross margin was stable. Compared to the same quarter one year earlier, gross margin was slightly lower.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

60.8%

Gross profit

$330.7M

Revenue

$544.3M

Cost of revenue

$213.5M

Quarter-over-quarter change

-0.1 pts

Year-over-year change

-1.1 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Dec 31, 2023$430.4M$264.0M$166.4M61.3%
Mar 31, 2024$459.9M$258.6M$201.2M56.2%
Jun 30, 2024$503.2M$306.2M$197.1M60.8%
Sep 30, 2024$544.3M$330.7M$213.5M60.8%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jun 30, 2024

-0.1 pts

Year-over-year change

Sep 30, 2023

-1.1 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

Gross margin remained unchanged from the prior quarter, indicating that the relationship between revenue and cost of revenue held steady in the most recent period.

Compared to the immediately preceding quarter, gross margin was stable. Compared to the same quarter one year earlier, gross margin was slightly lower.

Monitor whether gross margin can revert to the year-ago level as revenue continues to grow, or whether cost of revenue growth will persist at a pace similar to revenue.

AXON Gross Margin — Quarter Ended Sep 30, 2024