Axon Enterprise Inc (NASDAQ:AXON) stock rose 3.35% (As on May 7, 11:27:38 AM UTC-4, Source: Google Finance) after the company raised its full-year core profit and revenue forecast, banking on strong demand for its software products and recently launched TASER 10 policing device. Non-GAAP company gross margin of 63.2% increased 330 basis points year over year driven by increased mix from high-margin Axon Cloud & Services revenue and the absence of one-time items related to inventory and other cost adjustments recognized in Q1 2023. Operating profit of $16 million was approximately flat year over year, with higher revenue offset by increased stock-based compensation expenses in our COGS. Operating expenses as a percent of revenue improved to 52.9% as compared to 54.7% in Q1 2023 and included $45 million in stock-based compensation expenses. The company reported net income of $133 million (28.9% net income margin, compared to 13.2% in Q1 2023). Adjusted EBITDA of $109 million increased 67.3% year over year driven by higher revenue and operational leverage. Operating cash flow reflects a $16 million outflow in the quarter, an improvement of $40 million year over year and in-line with expected cash flow seasonality of prepaid expenses and other payments, such as company-wide bonus payouts and commission payments tied to strong 2023 performance. As of March 31, 2024, Axon had $964 million in cash, cash equivalents and investments, and outstanding convertible notes in principal amount of $690 million, for a net cash position of $274 million, down $279 million sequentially, primarily driven by the closed acquisition of Fusus.

AXON in the first quarter of FY 24 has reported the adjusted earnings per share of $1.15, beating the analysts’ estimates for the adjusted earnings per share of 94 cents, according to LSEG data. The company had reported the adjusted revenue growth of 34 percent to $461 million in the first quarter of FY 24, beating the analysts’ estimates for revenue of $441.6 million.

The company now expects full-year 2024 revenue to be between $1.94 billion and $1.99 billion, compared with its previous forecast of $1.88 billion to $1.94 billion. It expects adjusted core profit in the range of $430 million to $445 million, up from its previous forecast range of $410 million to $430 million.

In addition, Axon also announced that it would acquire drone defense firm Dedrone. However, it did not disclose a deal value. The transaction would increase Axon’s total addressable market size by $14 billion, is expected to close in the second half of 2024.