Name: Axon Enterprise Inc. (NASDAQ:AXON) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Download chart

Axon Enterprise Inc., consolidated income statement

US$ in thousands

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net sales from products	801,388)	608,525)	500,250)	399,474)	327,635)
Net sales from services	388,547)	254,856)	180,753)	131,386)	92,433)
Net sales	1,189,935)	863,381)	681,003)	530,860)	420,068)
Cost of product sales	(363,219)	(260,098)	(224,131)	(190,683)	(139,337)
Cost of service sales	(98,078)	(62,373)	(40,541)	(32,891)	(22,148)
Cost of sales	(461,297)	(322,471)	(264,672)	(223,574)	(161,485)
Gross margin	728,638)	540,910)	416,331)	307,286)	258,583)
Sales, general and administrative	(401,575)	(515,007)	(307,286)	(212,959)	(156,886)
Research and development	(233,810)	(194,026)	(123,195)	(100,721)	(76,856)
Operating expenses	(635,385)	(709,033)	(430,481)	(313,680)	(233,742)
Income (loss) from operations	93,253)	(168,123)	(14,150)	(6,394)	24,841)
Interest expense	(488)	(28)	(55)	(46)	(86)
Investment interest income	4,782)	1,511)	4,086)	7,040)	3,002)
Other income, net	98,971)	25,265)	3,828)	1,470)	347)
Interest and other income, net	103,265)	26,748)	7,859)	8,464)	3,263)
Income (loss) before (provision) benefit for income taxes	196,518)	(141,375)	(6,291)	2,070)	28,104)
(Provision) benefit for income taxes	(49,379)	81,357)	4,567)	(1,188)	1,101)
Net income (loss)	147,139)	(60,018)	(1,724)	882)	29,205)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

The financial performance from 2018 to 2022 is characterized by aggressive top-line growth and a strategic transition in revenue composition, followed by a period of significant operational investment that culminated in a return to profitability in 2022.

Revenue Growth and Diversification: Total net sales grew consistently from 420.1 million US dollars in 2018 to 1.19 billion US dollars in 2022. While product sales remain the primary revenue driver, service sales demonstrated a more rapid growth trajectory, increasing from 92.4 million US dollars to 388.5 million US dollars over the period. The proportion of total revenue derived from services rose from approximately 22% in 2018 to 32.6% in 2022, indicating a successful shift toward a more recurring revenue model.
Gross Profitability and Margin Stability: Gross margin expanded in absolute terms from 258.6 million US dollars in 2018 to 728.6 million US dollars in 2022. The gross margin percentage remained remarkably stable, hovering around 61% throughout the five-year period. This stability suggests that the company effectively managed the cost of sales for both products and services even as the scale of operations increased nearly threefold.
Operating Expense Trends: Operating expenses exhibited a sharp upward trend, peaking in 2021 at 709 million US dollars. Research and development costs showed a steady linear increase, rising from 76.9 million US dollars in 2018 to 233.8 million US dollars in 2022. Sales, general, and administrative expenses surged significantly between 2018 and 2021, peaking at 515 million US dollars before correcting to 401.6 million US dollars in 2022. This indicates a period of intensive organizational scaling or market expansion followed by an optimization of operational costs.
Operating and Net Income Volatility: Operational profitability experienced significant volatility. After a profitable 2018, the company entered a period of operating losses from 2019 to 2021, with the deficit deepening to 168.1 million US dollars in 2021. This decline correlates with the spike in operating expenses. However, 2022 marked a sharp reversal, with income from operations returning to a positive 93.3 million US dollars.
Non-Operating Items and Bottom Line: Net income was heavily influenced by non-operating items and tax provisions. Other income, net, grew substantially, reaching 98.9 million US dollars in 2022, which contributed significantly to the final net income of 147.1 million US dollars. The transition from a net loss of 60 million US dollars in 2021 to a net profit of 147.1 million US dollars in 2022 reflects both an improvement in operating efficiency and the impact of significant other income.

AI Ask an analyst for more

My previous chats

Add tokens

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?