Law and order profits

Over the last 12 months, revenue at Axon Enterprise (Nasdaq: AAXN) has grown 21 percent. That’s pretty good, and if you look under the hood, you’ll see multiple levers that could push the growth trajectory higher. Axon has two major product lines: legacy stun guns (the company was formerly known as TASER International) and body cameras. While its stun guns are the nonlethal weapon of choice for police departments across the nation and, increasingly, around the world, bringing in the majority of revenue, the latter is growing at a breakneck pace. All of that body camera footage is stored and analyzed on Axon’s software-as-a-service (SaaS), Evidence.com. Police departments pay a monthly subscription for the service. In the most recent quarter, Evidence.com’s high-profit-margin revenue from subscriptions increased 48 percent to $24 million — or roughly one-quarter of all company revenue. Better still, the company is coming out with a new SaaS business next year, Axon Records, which could be just as lucrative. It aims to help reduce paperwork and get police officers out from behind their desks and connecting with the community. And here’s the kicker: Axon has virtual monopolies in both its stun gun and body camera businesses. Recently trading at a market value of just $3 billion, Axon is worth consideration for long-term investors. (The Motley Fool owns shares of and has recommended Axon Enterprise.)