Shares of law enforcement hardware and technology company Axon Enterprise (NASDAQ: AXON) got hammered on Wednesday after the company reported financial results for the first quarter of 2023. As of 11:15 a.m. ET, Axon stock was down about 17%.

There are a lot of moving pieces in Axon's financial reports, but suffice it to say that most metrics are pointing up. The company generated record revenue of $343 million in Q1, up 34% year over year. Moreover, much of Axon's revenue is on a subscription plan, making recurring revenue a metric worth tracking. Annual recurring revenue (ARR) reached $520 million in Q1, up an even more impressive 49%.

However, while year-over-year numbers looked good for Axon, investors may be fretting today about its future growth rate. The company signs long-term contracts with law enforcement agencies and, for this reason, investors look at future contract revenue to get a sense of growth going forward.

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Source Fool.com