Carsgames

Axon's Q3 revenue was better than expected. And its profits were, too. Many investors were impressed by its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), which was up 54% to $145 million.

Jon Quast has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Axon Enterprise. The Motley Fool has a disclosure policy.

Carsfor sale

Star race car Lightning McQueen and his pal Mater head overseas to compete in the World Grand Prix race. But the road to the championship becomes rocky as Mater gets caught up in an intrigui... Read allStar race car Lightning McQueen and his pal Mater head overseas to compete in the World Grand Prix race. But the road to the championship becomes rocky as Mater gets caught up in an intriguing adventure of his own: international espionage.Star race car Lightning McQueen and his pal Mater head overseas to compete in the World Grand Prix race. But the road to the championship becomes rocky as Mater gets caught up in an intriguing adventure of his own: international espionage.

You're reading a free article with opinions that may differ from The Motley Fool's Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Carsbrands

Tasers have been around for some time so one wouldn't expect Axon to be a high-growth company at this point. But by expanding into new verticals and product offerings, the company has strung together 11 consecutive quarters of greater than 25% growth, with Q3 revenue up 32% year over year to $544 million.

One of the great things about Axon's business is that investors have better-than-average visibility into the future. Much of its revenue is recurring and law enforcement agencies sign long-term contracts.

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.

CARSMCAT

Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, personal finance education, top-rated podcasts, and non-profit The Motley Fool Foundation.

Carscharacters

I believe there could be reasons for investors to question the valuation of Axon stock here but that's a story for another time. The real story here is that Axon's business is extremely healthy and well positioned for strong future growth.

With Q3 ahead of expectations, Axon's management raised its full-year guidance. Previously it guided for full-year 2024 revenue of $2 billion to $2.05 billion along with adjusted EBITDA of $460 million to $475 million. But it raised its revenue guidance to $2.07 billion and its adjusted EBITDA guidance to $510 million.

Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, personal finance education, top-rated podcasts, and non-profit The Motley Fool Foundation.

Shares of law enforcement technology company Axon Enterprise (AXON 0.38%) soared on Friday after the company delivered strong financial results for the third quarter of 2024. As of 10 a.m. ET, Axon stock was up 13% and had hit an all-time high of about $550 per share.

Looking at these metrics paints an optimistic picture for Axon's shareholders. In Q3, its annual recurring revenue hit $885, which was up 36% year over year -- faster than Q3 revenue growth, suggesting that growth could accelerate further. Moreover, its future contracted revenue hit $7.7 billion, up 33% from the prior-year period.