Shares of Axon Enterprise (NASDAQ:AXON) popped 6.2% on Tuesday after the public safety equipment and technology provider delivered strong third-quarter earnings results.
Axon's revenue surged 39% year over year to $232 million. The gains were broad-based. Revenue in the company's Taser, Axon Cloud, and sensors divisions climbed 44%, 39%, and 29%, respectively.
Axon said its customers are purchasing a broader array of its offerings, such as Taser devices, body cameras, and digital evidence management software. This dynamic can be seen in Axon's impressive net revenue retention rate of 119%.
Better still, Axon is becoming more profitable as it scales its operations. Its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) soared 50% to $51 million.
Management projects that Axon will achieve the top end of its revenue guidance of $840 million to $850 million, which would represent growth of roughly 25%. The company also boosted its adjusted EBITDA forecast to between $163 million and $168 million, up from its prior guidance of $155 million to $160 million.
Moreover, Axon now pegs its total addressable market at a whopping $52 billion, nearly double its previous estimate of $27 billion. New products, new customer segments, and international expansion are all helping to widen Axon's market opportunity.
"We are on pace to becoming a substantially larger business in the coming years," CEO Patrick Smith said during a conference call with analysts.