Axon Enterprise (AXON) 9 May 232023 Q1 Earnings call transcript

Hello, everyone. Welcome to our First Quarter 2023 Earnings Call. We hope you have had a chance to read our shareholder letter, which you can find at investor.axon.com.

Our prepared remarks today are meant to build upon the already robust information you find in that letter.

During this call, we will discuss our business outlook, and make forward-looking statements. today safe to Private harbor Reform of made meaning within Securities statements Act the of provision XXXX. forward-looking are and pursuant the Litigation Any of the of our performance. future and on guarantees based are are not comments expectations These as today and of predictions to are in results our materially, forward-looking SEC cause statements uncertainties could discuss to filings. subject All and and we risks that actual differ risks these

video ideas today. Rick, we we over will about turn a quarterly our before X-minute And to update the play call

[Video Presentation]

and XXXX Alright. and start Hello, years. XX to XX% you, deaths goal Andrea Thank great We police related Angel. gun moonshot fantastic between and by job, over shareholders. last and our the feel a produce public year after our next welcome is to announcing great to that off the

market Axon mission our customers two When have Saturn great. us true in get product to many and cut rocket. XX TASER major control. March to We the can gun began X product been TASER our goal releases there. to And game workhorses called the serve a moonshot has brought X deaths, We is reception shipping Customer Body changer. is to as help we about talk that XX

deployment. and For trial devices get those business, customers trained of terms who they quarters to to in to new new before take go our of you are TASER ramp few our full into a sales need can as

the the up body video, just you networks, Alexa opposed your on earnings X. chest interesting something like open and wear told saw future and Axon a our call, more in Body our for X safety. to can you we become whole host And once cameras really they’ve our services. as camera Next, record, on of would talk to Axon vision wireless that as cameras over a of an about public last ago you as Accelerate month, years announced I

think and officers especially an communicate new are first in dealing to officers or time mental crises with one Well, another time for barriers. remote is support, ever, real level and with We can language provide support now battling health situational when the this device. going teams awareness two-way of with entirely a

of Our are apply to can’t to thinking what already with and new they’ll this ways customers wait technology, do see it. we

our vision our future cameras of Our paired safety the respond, for and public Axon is new is capabilities body When together. technology operational coming with TASER full of unlocked. the are power real-time

leading And their about. care has best achieve inspired many We the the do. challenges to problems to the fortunate so are be company best inspired are solve to when they I’m space work to can do of a attracted decision-making that out we set today. they solve globe We safety that people the what truly to public professionals believe across talent

we people problems. who We are So and about big hire mission. value falls our else passionate create into saw And place. we everything

positive. remarkable a for to has our and Finally, to mission of I’d take impact. the it days are journey to and customers, business to garage, a best Tucson We Axon’s making testament like as yet you in acknowledge XXX S&P Thank partners stable our and global the model, also XX and opportunity this May employees in ago Axon’s the inclusion been to Axon our X, our years founded come. growth

Chief Josh that, over to our Isner. with Officer, to like Operating so And I’d turn

a and Enthusiasm they me What see become has Rick. from our part our passion when moves been is lot, a it. of our Thanks customers infectious. customers really

way see that we report doing we they focus and are strong pleased and focused areas to know our better, February, are and am Accelerate XXXX for spoke hosted. We work. of I our for growing we In best of Our objectives. changing I on year jobs remain demand tell we I this X annual the their ever and XXXX well doing beyond, executing pipeline them and about are these biggest the job. each was customers approach When the and conference best we motivating a me for on

Top Our and remains number one more a we operational the that business to value grow focus our is We can line revenue. growth so invest priority. deliver market.

paying Our are investments off.

achieving year-over-year top We grew revenue line the the for quarterly XX% QX, in a company. record

were reflect nearly Our safety. and we been globally. evangelize do just cloud to safety public in it’s remarkable public will cloud ago, and years grew XX% that few We’ve proud unheard the adoption to continue business to year-over-year, a so U.S., of cloud in applications

to business of and weapons XX% our of demand Taser Our continuing most TASER year-over-year, tied grew strong platform. that was X

our in is only of shipping which of any strongest are TASER TASER in economy. seeing newest the initial the early demand history XX, stages weapon product, the of the We

enthusiasm seen customer and have product I TASER TASER at several for any Axon previous launches trumps model. XX

in markets, for driven growth in EBITDA details new second the in minute, digits, our in at we’re margin. leverage and our bookings force us. Brittany will double continue high We’ve first you expansion. Our in new capabilities year-over-year focus through And three, triple-digit adjusted operational Europe. pleased bookings investments. the take In support from Number our a level, quarter, XXX% grew we by QX. growth new I’m saw we these our seeing booking Justice market nearly an and which emerging profitability, but a these sales is with measure performance invested in segment, by also international to market heavily

our employee double-digit this real which number is ALPR, the including Finally, cannot testament these tech priorities are journey. this by We of to investing financial build play our The number rates, us underpinning foundation ability who moonshot of in problems. mission skill of of averages, air accomplish and all any on ability categories, we enjoy then launch help retain a our to attract and the stratosphere talent. next high four, the the saw a be We that of mindset team customers. to outperformed a brings to focus discipline, a our adopted without tirelessly emerging we adoption, to We our growth and sets products through reality. and to virtual product retention world-class is and new solving ensure bookings product our continue

In two launched new QX, products. sum, have we strongly into executed in

solid beyond. Our line we the quickly focused the and strong year, and I more to on strong team pipeline of they even for a page that start such am sight proud is have our turned proud are QX and momentum have I’m but of a half. in to sustaining the very driving back

over take more a lot. turn to Thanks And it us financials in I’ll with to Brittany that, through detail. our

Josh. you, Thank

strong our across report pleased another quarter, reflecting are We strength broad-based to business.

offering. line top growth the cloud business year-over-year in XX% continues of growth Our almost supported demonstrate of XX% our to value by our

are sequential coming we Given gross QX headwinds and raising from QX had our confident our for growth performance, outlook in rate margin, revenue XX% some to we from in year. On the XX% revenue mix gross the Fleet we of margin as of we did benefit with saw repeat revenue sales in grew catch-up associated professional QX that the and services software ‘XX. Axon those and

reflects related Gross an of adjustments. inventory other and cost to also margin onetime items impact

flat shipping would And To in we the demand exceeded ‘XX, impact we margins quarters has consistently remain level. as QX of or on fleet, remaining approximately improve gross result, remain strong. for our to expect expectations modestly began fleet only XXXX. Fleet of double-click since the demand a we to from expect X Over

are margin XXX% success. high-margin leadership transitions upfront our long-term software carries also In example, fleet grew solidifies us fleet a investing and Our business buy they hardware, first for to market of the revenue of software When this sets Fulfilling time. up broader quarter, high-margin offering. ecosystem and lower demand recurring in for over revenue year-over-year. customers more our our our

continue to supply Over efficiency, stabilizing these in XXXX chain continue automation in invest the as time, improving We pleased we’re along see our efforts also our ongoing high-margin to benefit to expected. margins. business manufacturing software gross with in growth and should and

operating remains our priority a long-term Regarding R&D investment revenue growth. to expenses, support

to and investments to to discipline the year past made our investments revenue continue with billion the digest scale are in We beyond. needed OpEx SG&A $X we business balancing and over

to increased anticipated, As everyone as in-person returns meetings we and expenses also events. had travel have

I revise outlook. am our pleased to upwardly

are midpoint. XX% at billion, We our year $X.XX full growth representing to revenue the range increasing of billion $X.XX revenue year-over-year

a full adjusted million. We our remain of delivering continue focused on We financial on year to XX%, $XXX range $XXX both to EBITDA million implying of margins commitments. near-term target and long-term

free continuing these to flow, ecosystem. towards sustainable dilution, include equity the responsible support to management cash and above, addition moving partner sheet In long-term our balance our of

in All QX. of these shape are great exiting

expanding look I our and next on all top this EBITDA TASER our forward to term, while margin. OpEx XX, further growth EBITDA our gross work you continue will line to our target we of adjusted updating and Longer XX% margins new XXXX our our software continued Axon fleet towards adjusted support outlook. Great including our X, to progress increasing quarter. as leveraging on we products, focus on Body delivering continue

with to questions. And I open that, would it up like to

Thank Barclays. you. question Instructions] We up. Long you take [Operator at first Tim, from Tim our will are

Thank sneak two in I you. here. I hoping was could

the into you products year, full bit so obviously, could a of can pretty these second and saw subscription, someone’s about accelerated towards And a QX? on kind bit not get upgrade. more what’s that bit we a a if just it the built tied talk like they about could see why you those rest subscriptions the are benefit in new outlook if Obviously, of in strong and end, I want QX talk a people does have you medium subscription the outlook, demand. coming than of you if on growth even growth the year – How half of But products deal? just how then decel in to little that if talk the the First, bit, sounds into just a to new second, from just guess, a little touch implying tougher. upgrade lot fit Can you was term compares little of little the or longer out. a on conservative a could into

take over Josh. turn and then guidance customers Maybe to I’ll

Okay.

buying year, So TASER and less transition Axon though, of really a for goes is near X are what performance. pleased as along Body as period products our we QX term Part older those for of our the new with as look guidance like existing products. to customers at and products, full with there we’re transition our our strong new introducing obviously, XX

So baking the that guidance fact strong really the look as had guidance, look at and baking we we year, more second half. last of so half we’re comps as a transition get into back that we’re our difficult we at our in also the

just out that, skis guidance. on want to And never absolutely. our we add to over get to Yes,

we way I outperforming actually at lot But a see today. materialize the are working towards in, be can think look we important the of data a guidance to certainly, and feel as like there we to it’s confidence we we to are that have pipeline in those. paths measured until and how

is as of how build team can, And bundles feel into we we and so of the new year in have revenue-wise that do as good terms focus of and confident a certainly, that, the top and that products offerings. on our delivering we we in to

I think lot those of rewrite contracts. are actually opportune times to a the

flagship the leads a into customers whenever a our back like asking a or opportunity new questions on those bundle. customers body how hey, that and either offering so or new the something a of CW And conversations kind to new them, gives or value they TASER TASER, start this that to there’s us the go we and do like those about, products camera about contract upgrading and a bundle product new adding as build comes out to to that demo product software

team rewrite So those are great the longer sales for term. contracts our to these opportunities for

process. new So into at kind the that’s we how look sales of product introduction

Okay. Thanks. Thank you. helpful. Very

Okay. Keith our at public is Keith next a doing We’ll call. to space Housum go in Northcoast. earnings

back come to will we Keith. maybe So

Okay.

to will from We Credit ahead, Sami Suisse. Sami. Badri Go go

tricky you. some I and had questions. Thank maybe Alright. a tricky then question first less

virtual some software. many a follow-up. maybe is, how in points, the to into are conversations Is So various The a very maybe budgets? could their you have us are reality And replacing that been all police capabilities the big first having introducing training to you’ve pay from they now this maybe things? the departments customers and these software perhaps could taking of away other have products released they price is your one, as it justifying field to for question really for? clear explain Is been justification straightforward, actually the that and but then this? company, building What Rick, categories? many it at And that way making has how and I are be the budget line space thing are one kind you’re items

Yes. Great.

So all problem them funding is asked see in. will look upfront. you great will okay, at, at for this a VR. these developing our then new mentioned first value So we look We also services from? we customers where these valuable ourselves that is solving And the come

from So TASER customers, backfilling of at that’s several greater international than rollout our we’ve hardware could a learning able be oversight without time the need going great in. instructor by been the effort are goes of a creating all of base example. training we’re times closely and that an are the skills. the Especially to a training where off of street, happen officers streamline where all this terms it VR, lot officers logistics of with its to virtual very the with costs with even bringing actually cost spaces, they be direct dramatically associated training the the can And in repetition in, human the they into of as it. lot when looking We

So cartridges they year. per hire. for fire We unlimited between But compare and of agencies somewhere right X rounds. may bullets the to they maybe with a example, thousands fire VR, of of that maximum numbers can XX that now,

we is time-efficient are VR, fire training, over certification and that be office a in distribute and muscle and our by able going way, skill we TASER it So year, the much more will through training. can will XXX every in really do the cartridges all to building memory anticipation next

of out believe transcripts station locations. look So for of some training happen for the provide at training, murder and lot Canada, doing piece our many the training of the level having for including cases of around example, or our evidence of example, for example, services AI high-level If other than better can a every that cases. at is bring to rather around, this precinct have I things into felony recurrent type level I example, of centralized we’re in in some customers, transcription, particularly to submitted, in officers

So linked provide to time. intervention. amount greatly the that’s able time, no a And to where in will point over we the our to transcript video there get of think reduces ability with need we will machine be a human be for

budget vehicle will system. like some into in agencies a camera historically, might inefficiency doing put we’re bespoke hardware to somewhere find to what we sits place designed with top we’re pay $XX,XXX existing or offering, dedicated turned that value in-car on where is to service, in So layer products our our cases, did create a everything service a a that displacing of that the that $XX,XXX competing just as camera. We’ve per virtualized current ALPR which ALPR

on running And all So our provides competitive, to on cost choose as in-car can and its top. is service turn great camera value. really own ALPR layer on software they now a just

helpful. hope that’s I So

at that looking from we’re is we’re are costs the existing reduce displacing that of budget there either valuable increased and solving problems competitors. path make to as to sure all both for general, solve efficiency, in some come Just a these we or

it. follow-up, you that. And for a for Got it’s Thank then for Josh.

it fleet one buying Are are in are they about they one a a consuming how all talked us was product? TASERS, context a up And or can they carte they body international la bookings kind bit consuming You product by customers and and your color within Are buying? are assuming everything? cameras? by ramping really of what it more bundle, international kind of give of terms hoping I you

Sami. Thanks Yes. the question, for

is of expanding. unchanged. really I and landing It’s think strategy one our

to body start they there other and evangelize more lot this drive the of TASER lot cases, products hey, on product of on really commonly trust and – them great in side, their cam problem then number right of a we’re to customers that in to the is say, a And job our the the build products tandem to kind solve are successful body and is probably portfolio international then deployment, our right start first looking and results time, sell one our we’re in in camera. now. in. over So earned side in make some Then have other with and the

kind think I those openness starts more it’s devices signs that of seeing mix to TASER those but a It of federal exciting, And a is process are which core governments of open move with healthy our two so seeing products. think we’re usually early a major And long-term And what these to to well. next-generation to internationally, more you’re things. some customers one that cloud customers be international as over deploy I of little cloud. will is getting

So executing, be where we long have playing certainly and team are bookings is for when be year, see exciting game par others doing a more double-digit year-over-year really the about internationally, will the great way. of or at and triple-digit the the some growth we’re kind quarters excited job of growth, internationally. there’ll there’ll we all that that them really end course up then the add the But along we

it. Got you. Thank

Next up, Goldman Mike Ng from Sachs.

Hey, sales And the was for questions Thank question. very there. the much encouraging good see I afternoon. It have strong the quarter. fleet two in you to

better sharp how have launched how to TASER the also And I fleet BodyCam dynamics impact understand despite sales to inflection helpful fact not X about fleet think understand it’d to there XX. Thanks. be understand was a way in follow-up. just but those and for that purchase the is years First, Fleet potentially only a to ago, may better X X

Mike. Yes. for the much Thank you question. very Absolutely,

time to X might from have a is time, than this we body we see launched to a really been about a lot. camera or excited We’re back that to longer even of ago learned when that, X built And about X little market. windshield. years fleet, kind we X, accelerated and then the Fleet – talk X which but a Fleet was Fleet got parity market a leadership of us attached in product a We position. into kind we And us

the on steeper steeper customers we then And and ALPR has cycles another dynamics Axon last great X of – there that Fleet in so Then generation environment is one ramp company is to years. to navigating of ramp just couple up of few Fleet that. relying or in is we’ve just different the faster Fleet supply the able demand now in climb in-car one next Part a growing feel the at at X and to last supply there and supply deploy is fantastic with done supply team upgrade slower is the chain a where by chain to video, existing for the opening of it chains that the been which just hardware. a clip led challenges. COVID on seeing continue And X, about a third-party more customers. But a were adoption job been later. chain we’re and we’re

healthy frames, back-end to be have that’s just would So that I of requirements little time upgrade systems when distant they those that every day, well cars can they those. their be how customers a for each as one certain of a of a fourth loaded use deployments. think over for it’s mix Maybe do across police hundreds

such of product really we’re next to of team continue an think manage our for awesome to So couple the will scale we years, customers. throughout certainly proud things but and fleet delivering we the

in fleet be, Are think Thank answer. how follow-up translation And for that to you between just the benefit cloud. to would any upgrades then about Great. Axon installed the lagged try how of growth or to the the talk to growth. about matter that sales you about to ways X there base are the how does Fleet cloud think very into even about we versus into translates the cloud effects comprehensive think as sales Axon could much

the officer’s our It’s so skies is a of they believe on in body really Like hardware officer’s Axon strategy connected the paying hardware off, car, on and a Air building right? we at are great belt police the in devices, Yes, the in network it’s just that question. case we’re what of the Axon really whether forth.

so value competitive hardware a And police your in evidence a any the biggest police the those connects of or of as of you whenever officer proposition we one ecosystem to that products a administrator. use it platform, rest is very day-to-day launch

the is customer And one fantastic really Fleet it’s that’s just X leads this so of it a more day-to-day. plugs to into And you – that thing network use experience. magic that already it

think and very market to of and established much existing took a incumbents ourselves market this lot category, into leader be against entered an to it’s thrilled compete we’re I time. this about we and had some that the in that as really But was even distancing now more.

thoughts. your for you Thank

get the I answer us only add, can that’s really the little called then at fleet able fulfilling turn out and installed point start a being fast is was revenue some how we you’re and seeing think thing I now which need, that higher-margin installed, of cameras of thing is but out the of services at this really only so we limiting the actually is bit those very will to how cloud fast able and what customer. we at component what we’re professional Mike, And installed Josh’s supply to running this that is them our the that tactically up comprehensive, why trigger demand. that’s the The get have on customer. getting year just we we can cameras

of what One last thing ties before. there back saying kind to and to was add Rick

help results are active day, and their they getting. car Where sensors into day, Fleet adopts the versus expensive day every does, every cloud city, with fleet addition this and for connected What respond software power across turns all all entire traditional to the case. and broad across vehicles In ALPR those inversion price department on cars a that their every cloud software made to day when the every peer used of cameras this X car being as ALPR available that a to a thing. entire handful those use are making

our So getting their that the value of to further they reinforces connection ecosystem. out overall are

Jeff. you, Thank

Reilly Thanks, Needham. Mike. at Josh Go ahead.

we for evaluating that but Is questions. at switch there Hi, from think event about of then are there. the implication coming were year the buying speak I was Accelerate? with able should post customers about taking TASER How thinking who for backlog X, to Thanks some XX the my that the were to of any that? to here something the the you is XX. for whether they there seeing the out And for balance the model conference?

Yes. in Josh, take his TASER it does a once announce trials as evaluations remarks, said we for little Rick and time place. take a to

to little see We’ve the and this. purchasing. you lag the from so worked through this. now of understand in TASER very back how the puts effectively. lot be for the good I to what on a is. we’ve do we And is on that the and news this us us We sorry, just see to this fantastic customer market really fit. We kind reaction But the a the – demand upgrade through the manage several time sales feel seventh about eighth year, a or communicate able years. XX, bit fantastic XX, the have growth the will and and how to continue I’m been are. think TASER in of with of that the is between a product. will what interest We But feel We to project you’ll in it’s the we timing understand customers half takes and cycle or X striking the demand product of for TASER the evaluate And on next confidence they about and that plan

on other And moving any and maybe system key any in highlight of And size is Records pipeline? that’s characteristics could priorities – hear. near-term? here the of then platform update we an Awesome. records terms legacy kind Great profile to from development some on? And of Axon adopting fully their get some the there then customer are what the product for or

Axon the pipeline, that investments over X-year at customers and complaints with really over the talk don’t the some are as building start the I of teams. Axon feature it – a X- Safety to next on operating pass And the to that our team to become then demand this position example cycle. early a Records. the is ability selling hearing better just to that tough about mentally adversity team we the to lot system And thing now I’ll a just safety the for life in motion to records we we’ve want where the and is the of – to market of talk part there. years huge about several that us Plan Jeff give customers I part deploy and – there as set see allows of in and public at to the and confident know a feedback shout And times Records Wheeler for bundle. looking of get responding early of and Maybe Sure. long-term. I’ll the pipeline Officer got leadership And so closer Brian and and in the our of it we a to view deploy entire of very differentiators we’re to out Axon product’s this

Totally.

includes that So major great just Axon who their their as transitioned and RMS. are at fully such coming on Virginia And today of use entirely deployed, cities that nearly Baltimore, already Tucson, officers that replace on soon. least module the – to one are out XX now, to Fresno XX,XXX that live legacy some Beach already represent with more numbers, nearly agencies we’ve and actually XX Records, includes got agencies sworn right of

transitioned of the me X be very, as joined them space records, you leader were that to RMS. talk first of time, of I Josh value going be again, module that’s but this Josh very the for pipeline and legacy to on when the but to and confident in. become of on Axon one ago as heard getting case adoption positioned fantastic well at what’s deployed this feel sell least and going and this journey, the agencies product with with nearly strength the years overall rest we about the we our said, both in the most which the as the that exactly So long full that both the said, wanting frequently product company And over the itself, to we we’ve clear – adopt customers of inherent as its strategy we’d of one in entire their as to then their connections already ecosystem, a that get got, things was coherence to replace

Awesome. Fun on product see Thanks the success to that there. guys.

Thanks, Josh.

much. Thank very you

at Baird. Power Will

Okay. Do I’ll kind And guess, you’re I capability? I curious Great. great a X. questions. utilized, receiving so of some on try voice officers What most of are that of hearing something going bidirectional the mean early kind couple it they to be first, far? the feedback kind you’re to getting would any AB feedback be they just are what on I’d think utilize? what’s they about? is are features, of to the excited of you’re really get won’t Yes, are utilize, they

Yes, absolutely. the question. for Thanks

incredibly customers as course, it. and we’re video customers response that the the perspective it’s, in accelerate the customers, it saw actively both early the initial letter, a but excited shareholder about are of about you as bit from So as in trialing and hearing well days,

life our particular, the and the both perceived respond dedicated of lot signal I of and sensor a it button support the we’re it need a field, right about really, And video growing Watch it both a control the watch Me in for in we puts agencies as until a and jump staff, heard heard for the proactive for of us ever I now. that is hey, are the from up is my things on can reason I side, control are and you inverts the of with of being, the now this today’s that the getting and and it lot it that whoever them makes makes we help, if hands all There command been to one as why is, and in to camera. on bidirectional, way, a asking And staff, things, things. to that of when the they consuming a there that opposed there conversation what comp creates possible, right request the lot then in encouraging had for that, the accessory idea before. as talking or enthusiasm multiple only and the years live and in to of POV think of getting be now you’ve potatoes individual that the And officer deciding return alerts adoption of go those someone to excitement on from battery an way in for or Rick, watching have talking excitement is, want trialing about streams requires the and back, court time. is unified to having and streaming, the come ton passively the healthy, in and best excitement might like be which really time both in we’re is officer, to sales of the there even for never if to deciding far, the camera meat someone signal with in those So that of

a And response ramping keep to of all of that. it over overall, has So we there couple lot is just years. past of expect the about as excitement

world supporting his you’re results XX moment the was one hold. is happening says future author, Live ago Texas chief But we of science my to calls while streaming Yes. probably concepts take new to five my take there every a really concept. different it’s into totally it years where tech is police introduced my I’ll distributed. in Texas call we in agency just officers. is today’s launched few favorite body He teeno. that during when William live one an when jump quotes cameras, phenomenal. And have not different for fiction a and who you’re little here, had first just the is in from now with Medical Center. Gibson, streaming called this been evenly industry a Imagine a for new in dispatch, XX We with service up dispatcher just a the

well messages actually a managing. You’ve people got cryptic of with these what largely what’s to about And at keep managing as other you very on the shared are radio what’s through as these little track calls. happening channel have you’re idea officers happening

highly turns a ordinary. then out visually see that different things tuned to of officers. flip all can you out is can And world you’re happening for that system where those doing this, you notice as our to visual abnormal or are screen And have a what’s it the where

in cases, you what is or right. doesn’t periphery, dispatcher, they example, these to look precut if you Well, tune is minute, then call good the rapidly here, For supervisor photo happening live, that to that. far who, are something, hearing an is a at what’s text it sitting your are your reading dispatchers don’t In don’t are even able from grab visual to it’s will a for there in resources. we they something system person creepy are of get dispatch next or when will phone to notice your want officers. really to a some may focus. right wait is are attention. officers to additional even TMC you they They they us and this the you of helping some just us. with though they And mean person tune to will I And if invade and now on next person you None airplane, but going in on, immediately somebody

who or that then fake in gave One of been false name. who a officer call, a noticed somebody of ID them different would

idea book years, that are So, and just run and then have LTE and iterating decision is do to put radio see customers cases. of confidence this X going with learn to of department sensors. to the audio we another I new a start XX of we the into integration these every about the And camera voice together our years edge more police made kind video with on with sophisticated really clubs ABX to can we the use you believe to allow trying high traffic only that in once to with crazy

see two-way not is communicate is once the video, can frequently a thing air have radio tightly to you to over and it next a you do traffic the person voice, one-on-one. want very with not do that So, that controlled. It’s

a You rich conversation. can’t have

to you conversation. people involved also XX use You XX that or to cryptic transmitting have in that aren’t because codes are other

the capability we feature the shoulder, hits in So, the new and officers but always rolling early camera, prefer camera. ABX many to have then simple think things mounted you have like or from and can where We while have both them. the if can where with it recharge set wherever infinite car battery in still effectively body been some gives couldn’t to people options, go to now magnetic now SKUs Those reconfigure we life. are on transformative some the you out, disconnect like ability some head two mount SKU we many separate reconfigure are love you mounting the the us have one you patrol map SWAT to a

basics. of think the we been and both So, combination just continuing a to this deliver on transformative has great

Thanks cash on quarter, have in in I great. get the can think flow, for the more free some If we question that. for Brittany a has years. seen past I in so impacts than That’s

So, any color the for cash outlook Just year? just flow any there? free other thoughts maybe on the

in of bit in items. stock of over it some we ability changes any what terms strong QX some one-time permitting more of commissions, inventory, and around, mostly terms but uses including of in of a I timing seasonality stock for options, little taxes year. cash, bonus, More those some the of to shared, course had generate flow We just say the free my than wouldn’t our of cash view

Okay.

QX, will that step of price we cadence is beginning in and… I back year the suppose, So, see

Yes.

will you cash think the year. I flow see healthy free good still for

you. Thank Okay.

Of course. Thanks.

to question, Keith noise. place in I’m So going allowed. bad He read background a public Housum’s is with

So, Northcoast terms users at an for update can Keith on goals over availability, year modules geographic and of Housum our XXXX. in VR provide asking, growth, the of past number we

in into product any line. fill user in. think – we the Sure. growth blanks officers there, of ready training I or future. here police are higher The a kind for we the can at any talk really about maybe on quality a much don’t Rick detailed well start are can and on building Instead, quite platform VR to yet focused I financials

and will software product very but the verbal be the over And engagement such modules. our terms we trainers we rapidly is the firearm needed integrating a more to what U.S., and market. released modules use are And the so specific the the do and experience of will built with solid the accompanies it otherwise. of foundation officers as start, TASER, But for scenarios again, scenario-based between being in see for foundation us, it’s really our community some that the in about, will have the skills between international sensors you hey, in the how training from to be order and themselves. the communication growing in you markets has more to time, see Federal corrections of In the

getting built. we other then right products, basics fleet, that body moving like whether solidly just TASER, our camera have the and first platform so very with once And about it’s quickly

are to really growing but the one we in make long-term, expect things ourselves want be seeing up. we fastest It’s we ever. excited continue And products get from of the of for ground trend And and about don’t right the sure our that to we to bookings we ahead so do VR. continue

Jonathan. Okay. in today. Jonathan Ho we try William have four And we going everybody, to ahead Go at get the analysts are more Blair. and queue to to

you the of maybe help of the of to gross newer I some and question, maybe trend margin expect will how understand keep one the some to course things us products, stick just over dynamics around Can I your just that guess to probing. you year?

No, appreciate Yes. I that.

margins very out being called it only be QX. they we similar have gross to will improve, as probably really if slightly. So, And

a lower couple to has So, from of that in that be plus are the we inherently to rest really upfront, revenue really margin this it growth continued the we for and year. seeing of that mix the we go are dynamic have we are professional services installed. into fleet are get that seeing fleet the expecting things A

improve it see would TXX say a to half benefit a is will we a So, software were our year with tailwind, in in continued us. which growth be some to that us, fleet towards will And continue mix year, ramp over be dynamics. we I to that’s we time an that like would offset the but the expect impact time. of about, these back as revenue this of talking be impact but then for will This over

Jeremy Hamblin from Craig-Hallum.

journey your of last Thanks. the And amazing my congratulations wanted – It’s ARR, S&P you XXX. to the where at to XX years up team being milestone guys nearly I were just the which pretty Rick ago. ask about this over and a on is XX%.

bit of in think more you company’s terms that, like color could add last you I And a but just probably bit the X little history, release little in if maybe the provided growth basis, fastest but to ARPU. certainly seats between on the years. dynamics a of the in year-over-year versus on see in wanted a the booked

any be imagine basis. color packages But you You launches I product could more on how and TASER little talked to XX, that. will sign on we I to a bit But could ABX, higher around share are with that you around up getting thinking for. share color wanted premium be about see go-forward getting should your some that about you clients bundled if you packages a

we are I moving many, of starting the and our jump is benefits move products that. is seeing Yes. are And so us will I to in and benefit hardware I people it. come our to really many some then terms see added growth. we of taking I to say of seeing get this ARR started will you are the of see and premium effect, add Certainly, then of more fruition. think in work of flywheel into curve Josh, from sort years the to up continuing maybe, customers rep But offerings to wants would software mean Josh to to into you it the the some to and if

simplifying lot kind all appreciate and I thing fun in well. only of and been I of to very now. But on really a The a these of entry long would Jeremy, I Yes. upon for things of to ARR doing Axon And for much, the his give there, credit it’s Jeff you ago. this growth, time kind lot very words. the few guys have add terms calls two years a it’s a Thank you

do we are results we sell to products So, seeing new existing to our to the new types you our now. customers. very got those that customers, products sell existing we we and And when well, of in to got things, parallel see

OSP, exciting and so corrections then And Federal it’s in supplementing leading great said, getting things as across with growth. and results going Brittany the in our to now but markets, great flywheel parallel, and enterprise, that’s in two existing doing an international, those

you other the want ABX X faster, of cycle what XX, ABX color share seen compare follow-up would with in ramps, Got that launch on times any one just it. slower, you have whether versus kind the or great? you it prior in to the and adoption that, of TASER terms TASER depth And more can be to of here

TASER business cycle. in say in general, it’s would X-year a the generally Sure. I upgrade

with the the customers on interest whenever most that ago to a And see early a bought excited in that midway that’s are when you their generations customers that are as upgrading new we TASER that with are the or lot thing TXX, are through interest. XX. that previous TASER customers from expressing early your you we very – So, have X-ish the X launch you launch seeing of years is a cycle TASER but TASER of device, different about, most early

happen value, and So, that to speaks line to customers that only on the faster of not really on range them maybe of the a terms terms resources kind think that’s cycle. but see our up also in their to allow improvements forth of end upgrade that training so and effectiveness, in to the upgrade I early, huge and driving

and So, we very excited are encouraged.

into doing team have is have that. but we course, a we confidence got we got of our to and of that have execute, Of to got fruition, lot drive capable that

forgive in end was will the by is order got they in in purchasing back and XX, and midsize actually customer one that changed of officer I we believe the the day. order agency through, department anecdote sitting but a hundred in and of chief Signature process, my and that enthusiasm, Chief city was they the One their several called share, had to that I keynote TASER at the the

versions meaningful where that and I we tool, weapon an legal thing a And picked nations didn’t in in European that primary I guns police really get have the average TASER have because process that wearing is the live don’t was that need don’t the their as that really excited I not gun of And to your crime TASER U.S. saw pistols the on to seen whole have me that have are weapons. thing make probably probably watch but officers the have first approved. previous disrupting reaction a and huge a markets. primary international all worth could But XX order defensive in you country can the something a in I the new problem. difference the standpoint, we really where XX, country shots where up We is too as I think for to not something time, that I in like from they to enough the tool just extremely we the get want was And a opportunity this it a now again, that that primary tool. really dime to the to think think open TASER the pivot enough on existing projection then are international would we range, yourself. other rely become would Rubicon. crossing capability And weapon think tell have markets become officer’s you defend stop defensive

you. Thank

at Suppiger JMP. Erik

Erik, you on it are looks like mute.

was you me? a hear follow-on just of from saying. kind Just Can go. we There what Rick

about the international being the multiples for have You of opportunity. talked opportunity as TASER domestic

bigger your about it the they the that in more that in than products, adopting of of or you As seen can of bit have are opportunity you something is adoption dynamics that you can a said are a talk in Europe, towards TASER. shift is be some what – body the dynamics Europe? Is a how some strength of getting camera, the the terms little

start the there. of low Erik, took adopting are regardless and either lower we dozens years that’s some of that happening adopt really, reap much or And a the as time particular units a X at when driving are a seeing really it number the of TASER Yes. once we just proliferation willingness planting growth of first certain it’s geography or in in aimed would of that’s number police of really years we markets I more there ago the that’s off. And number as see force. some to that, TASER of are at in or hundreds SWAT this use starting with it’s number in exciting also users they To starts start higher seeds early a pay case, markets But whether start, the where we market, are, a devices. to then X then point, of couple to quantities. European years, the we benefits generally will say other in for they of actions well. see And And success, programs a or really

very, a In still or about relative and long-term, start the opportunities and really the cloud attractive more scale. are both only our are that compelling more ARPUs Europe to the we opportunity, over associated little still because body very got faster longer the certainly of video the some as terms guess business there. But body excited have But to in my you especially one international continue we in business grow markets. – is and camera are TASER and generally, to cloud international evangelize the would with as still exciting is we at the I cameras higher TASERs of versus say TAM our move higher very will term, they in

That’s you. it. Thank

ahead Chung Paul. Okay. Awesome. at Paul Go JPMorgan.

Hi. hear Great. me? you Okay. Can

squeezing for thanks me in. So,

on on upgrade been most – the XX, details the the but all on have TASER Just just cycle. thanks for questions of asked,

gradual try So, volume case the the effectiveness of we use. about use the to given boost is easy the dynamics? helpful for is And overall a for of the clear you pretty of you on in second be quite there. margin on Talk expand to – accelerate to cartridge got a Thank it you. kind magnitude Can mentioned upgrade use well. the as is would more half? And more profile ramp this

I probably start this can the what important we you shots over cartridge with each is think train over I just talk to and see go the then XX might In able it the to more Brittany gross on looks about in up, bundle the and demand margins be hand volumes it’s shot to the duty bundle have training to an as up individual shot, I drives that well. like, really cartridge product, ramp. time, since and device thus, will and because

as are the that speed to and high growing the on with automation add manufacturing, volumes of ramp maybe up of and at on if the has anything to margin have demand. into us to can we there you these, fast all selling able side. for get versus of has some but Brittany the to we And course, how bundle contemplates go our priced implications TX, that on cartridge look So, that relative the we website pricing

I think it’s which get you pretty because bundled much starting nailed to in. is it,

handles really versus about not margin standpoint. are cartridges a separately We from thinking gross

We TASER together. package really thinking are full about the

the we And of about as through half we year. improving talk year the go get back and margins so teaser the as to

– view bundled together it of sort as as together, margin I our in well. that’s have bundled We outlook would because

the Got it new the Thanks. it. one as That’s That’s from cam, well. that’s And the helpful. for Axon, dynamic me. the body

of the respond to growth hardware. grow core sell volume of some think thing is, body cam, add we the features the are licenses the is the about to in opportunity see as opportunity is result there communication Yes. thing of camera excited some I the over more would real there the of hardware time streaming a outside terms features respond, new and in and capabilities sold of the There, that of the service. and I while because on Paul, a respond ABX only some there And for the we drives of ABX. body

Great. Okay.

everyone. It you think joining for I we Do have follow-ups, that’s I any a give no. will us. it like looks Thank second.

this out. have Rick Let’s close

two be major off good start, a new product to Awesome. to Obviously, launches. excited

some you strived asked start back was I questions going really here year. it think guys half VR, of about which to the getting this

We sensors TASER have that first. be will XX integrated new so

start other fine-tuned, We smooth, have a and will out we very firearms will X TASER integrated rolling will platforms. experience. then really product various and follow,

really whole then VR really this moonshot that’s to for and standard. towards services opportunity progress the trained a believe to us on will go wide for value-added we think we So, pretty are content to we getting much and think every launch the our an lot be become right new going By sell through TASER that create these with officer, can premium and next is VR. VR continue two instructor with setting and who stage to year, to that And products our services platform. we more common

a with strategy a software hiring the Jeff the of doing pieces. So, layer and hardware job all great putting has in and talent the for how this been team, and just bringing build together great to then to all

and ahead to excited it. do we going our started. And I march in of exciting am you are cut just We have half, got gun we related are getting analysts shareholders So, to XX-year journey. confident to deaths just of been we and an really have are who us

then wrap up I and So, at to our with QX. all see next meeting shareholder next at that, have you our will quarterly we results,

and everybody, night. thanks have So, a great