Shares of law enforcement technology company Axon Enterprise (NASDAQ: AXON) surged on Wednesday, hitting all-time highs, after it reported financial results for the fourth quarter of 2022. As of 11:45 a.m. ET today, Axon stock was up about 7%.

In 2022, Axon's revenue climbed 38% year over year to $1.2 billion. This was a sharp acceleration from its revenue growth of 27% in 2021. Moreover, the company's fourth-quarter net sales of $336 million far exceeded the high end of management's guidance of $310 million.

Axon sells hardware devices, but they're often bundled with software and sold as a subscription product, making recurring revenue an important metric to track as well. In the fourth quarter, the company reached annual recurring revenue of $473 million, an all-time high, up a massive 17% from the previous quarter, suggesting there were many important contract wins to close the year.

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Source Fool.com