Why Axon Enterprise Stock Soared on Friday

Shares of Axon Enterprise (NASDAQ: AAXN) soared on Friday after the company reported results for the third quarter of 2020. The company, formerly known as Taser International, saw its growth accelerate during Q3, further confirming its business strategy pivots were smart moves. As of 1 p.m. EST, the stock was up 12% but it had been up as much as 18% earlier in the day.

Actual Q3 revenue for Axon came in at $166 million, representing 27% year-over-year growth. However, the company's revenue is a little complicated to break down because it offers both hardware products and software as a service. Therefore, much of its revenue is on a contract, making annual recurring revenue (ARR) an important metric to track. ARR for Q3 was $204 million -- up 44% from last year and twice as much as it was two years ago.

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Source Fool.com