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Stock Analysis on Net

Axon Enterprise Inc. (NASDAQ:AXON)

This company has been moved to the archive! The financial data has not been updated since May 9, 2023.

Common-Size Income Statement
Quarterly Data

Axon Enterprise Inc., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Net sales from products 63.95 63.88 67.49 70.04 68.72 66.83 71.47 71.49 72.24 76.99 72.15 69.91 72.90 78.26 73.75 71.55 76.06 77.55 77.19 77.32 80.00
Net sales from services 36.05 36.12 32.51 29.96 31.28 33.17 28.53 28.51 27.76 23.01 27.85 30.09 27.10 21.74 26.25 28.45 23.94 22.45 22.81 22.68 20.00
Net sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Cost of product sales -31.36 -30.54 -30.06 -30.64 -30.95 -29.80 -30.75 -29.85 -30.06 -32.56 -34.73 -31.02 -33.22 -40.98 -32.44 -34.02 -34.19 -37.34 -31.43 -31.33 -32.04
Cost of service sales -9.14 -8.28 -7.95 -8.45 -8.32 -8.12 -6.93 -7.11 -6.69 -4.96 -6.25 -6.55 -6.57 -5.12 -6.28 -7.64 -6.30 -5.73 -5.96 -5.03 -4.27
Cost of sales -40.50% -38.81% -38.01% -39.09% -39.27% -37.93% -37.68% -36.96% -36.75% -37.51% -40.98% -37.58% -39.79% -46.09% -38.73% -41.65% -40.49% -43.07% -37.39% -36.36% -36.31%
Gross margin 59.50% 61.19% 61.99% 60.91% 60.73% 62.07% 62.32% 63.04% 63.25% 62.49% 59.02% 62.42% 60.21% 53.91% 61.27% 58.35% 59.51% 56.93% 62.61% 63.64% 63.69%
Sales, general and administrative -33.98 -34.04 -32.73 -33.26 -35.15 -51.22 -42.80 -81.20 -64.92 -43.13 -44.73 -51.18 -42.83 -45.55 -37.01 -38.59 -37.04 -36.67 -37.85 -39.65 -35.33
Research and development -20.68 -20.44 -18.97 -20.15 -18.88 -23.29 -18.27 -24.66 -24.11 -16.81 -17.57 -20.93 -17.93 -16.73 -19.21 -20.91 -20.17 -18.52 -20.97 -18.65 -14.94
Operating expenses -54.66% -54.48% -51.69% -53.41% -54.03% -74.51% -61.07% -105.86% -89.02% -59.93% -62.30% -72.10% -60.75% -62.28% -56.22% -59.50% -57.20% -55.19% -58.82% -58.30% -50.27%
Income (loss) from operations 4.84% 6.71% 10.30% 7.50% 6.71% -12.44% 1.25% -42.82% -25.77% 2.55% -3.27% -9.68% -0.54% -8.37% 5.06% -1.15% 2.31% 1.74% 3.78% 5.34% 13.42%
Interest and other income (expense), net 7.37 3.63 -3.61 16.46 21.57 -4.66 -2.38 19.12 0.30 1.44 1.23 1.14 0.64 1.45 1.39 1.64 2.00 0.89 1.22 -0.30 1.25
Income (loss) before (provision for) benefit from income taxes 12.21% 10.33% 6.69% 23.96% 28.27% -17.10% -1.14% -23.70% -25.47% 4.00% -2.05% -8.54% 0.10% -6.92% 6.45% 0.49% 4.30% 2.63% 5.00% 5.04% 14.67%
(Provision for) benefit from income taxes 0.95 -1.65 -2.80 -6.12 -6.87 10.90 22.05 2.16 0.90 7.43 1.52 -13.24 2.67 -0.28 -1.78 0.17 1.24 -0.81 0.45 3.51 -1.90
Net income (loss) 13.16% 8.68% 3.89% 17.84% 21.40% -6.21% 20.92% -21.53% -24.57% 11.42% -0.52% -21.77% 2.77% -7.20% 4.67% 0.66% 5.54% 1.81% 5.45% 8.55% 12.77%

Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

The financial data reveals a strategic shift in the revenue composition and a period of significant volatility in operating expenses, followed by a trend toward operating stabilization. A consistent transition is observed from a product-heavy revenue stream toward a more balanced mix with a growing contribution from services.

Revenue Mix Transition
A long-term structural change is evident in the revenue streams. Net sales from products declined from 80.00% in March 2018 to 63.95% by March 2023. Conversely, net sales from services increased from 20.00% in the same starting period to 36.05% by the end of the analysis period. This indicates a steady migration toward a service-oriented business model.
Gross Margin Stability
Gross margins remained relatively resilient throughout the observed period, generally fluctuating between 53.91% and 63.69%. Despite the shift in revenue mix, the total cost of sales has remained largely stable, typically ranging between 36% and 41% of net sales. While the cost of service sales has trended upward—increasing from 4.27% in March 2018 to 9.14% in March 2023—this has been offset by the relative stability of product sales costs.
Operating Expense Volatility
Operating expenses exhibited extreme volatility, particularly between 2020 and 2021. A significant peak occurred in June 2021, where operating expenses reached 105.86% of net sales, driven primarily by a surge in sales, general, and administrative (SG&A) expenses to 81.20%. Following this peak, SG&A expenses normalized, settling between 32% and 35% of net sales from March 2022 through March 2023. Research and development (R&D) spending remained more consistent, generally oscillating between 16% and 24% of net sales.
Operating and Net Profitability
Income from operations showed a cyclical pattern of losses and gains. After a period of instability and significant losses in 2020 and 2021, operating income returned to positive territory starting in March 2022, maintaining a range between 4.84% and 10.30% through March 2023. Net income exhibited higher volatility than operating income, heavily influenced by fluctuations in interest and other income, as well as tax provisions. Notably, significant spikes in net income observed in 2021 and 2022 appear closely linked to non-operating income rather than core operational performance.

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