What happened

Shares of Axon Enterprise (AXON -0.34%) were flying higher Wednesday after the company delivered a strong third-quarter earnings report, beating estimates on the top and bottom lines, and raising its guidance for the year.

The stock closed up 14.6%.

So what

Axon, which makes TASER stun guns, body and dashboard cameras, and software for evidence and records management, posted strong growth across the board last night.

Overall revenue was up 34% to $312 million, which was well ahead of estimates of $279.1 million. Growth was strong across all of its segments. TASER sales increased 19% to $144.9 million, while its cloud and sensors segments both grew 51% to $96 million and $71 million, respectively.

On the bottom line, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 36% to $68 million, and adjusted earnings per share came in at $0.60, beating the consensus of $0.49.

Management touted adoption of its premium officer safety plan and strong growth from the federal government, among other factors, for the impressive quarter. 

In its shareholder letter, management said, "Our demand backdrop remains robust and we have tremendous confidence in our sustainability of pipeline, which is supported by our mission-critical product offerings and long-term contracts. Importantly, our highly recurring, stable business model benefits our company as well as our customers, who see us as their trusted technology partner."

Now what

Axon also raised its guidance for the year, and sees fourth-quarter revenue of $300 million to $310 million, up 40% at the midpoint of that range, which was well ahead of estimates of $285.6 million. It also raised full-year adjusted EBITDA guidance from $200 million to $215 million-$220 million.

With the emergence of its cloud business and strong growth in all categories at a time when many companies are facing macro headwinds, it's clear that Axon is firing on all cylinders. It has a unique business model and little direct competition in the law enforcement arena, and the growth stock looks to have a bright future.