TASER International, Inc. Operating Metrics (Unaudited) 2016 2015 Q2 Q1 Q4 Q3 Q2 Q1 Axon & Evidence.com Bookings (millions) $72.0 $52.1 $44.7 $36.9 $30.6 $22.9 Sequential % Change 38% 17% 21% 21% 34% -7% Annual Service Revenue (millions) (1) $21.1 $18.1 $16.7 $12.0 $9.8 $7.8 Future Contracted Revenue (millions) (2) $262.8 $202.3 $159.0 $122.4 $94.9 $71.1 Sequential % Change 30% 27% 30% 29% 33% 33% Multiple Year Contract % (3) 95% 95% 92% 91% 88% 90% LTV/CAC 6.2x 5.1x 4.3x 4.6x 4.5x 3.5x Weapons Op Inc % 33.2% 33.5% 37.4% 35.4% 38.7% 40.1% Evidence.com new seats booked 20,200 15,800 13,200 9,300 9,500 7,400 Evidence.com cumulative seats booked 95,000 74,800 59,000 45,800 36,400 27,000 (1) Monthly recurring license, integration, warranty and storage revenue annualized. (2) Cumulative bookings for Axon and Evidence.com minus cumulative recognized revenue related solely to Axon and Evidence.com (3) For orders booked with Evidence.com seats, the % that signed multiple year contracts
TASER International, Inc. SG&A Expenses by Segment (Unaudited) R&D Expenses by Segment (Unaudited) TASER Weapons segment: Salaries, benefits and bonus 5,150$ 21.1 % 3,704$ 24.0 % 1,446$ 39.0 % Stock-based compensation 863 3.5 % 656 4.2 % 207 31.6 % Legal, professional and accounting 1,566 6.4 % 1,276 8.3 % 290 22.7 % Sales and marketing 2,102 8.6 % 1,169 7.6 % 933 79.8 % Consulting and lobbying services 987 4.0 % 996 6.4 % (9) (0.9)% Travel and meals 964 4.0 % 893 5.8 % 71 8.0 % Other 3,052 12.5 % 2,129 13.8 % 923 43.4 % TASER Weapons segment 14,684 60.2 % 10,823 70.1 % 3,861 35.7 % Axon segment: Salaries, benefits and bonus 4,177$ 17.1 % 1,922$ 12.4 % 2,255$ 117.3 % Stock-based compensation 596 2.4 % 269 1.7 % 327 121.6 % Legal, professional and accounting 335 1.4 % 3 0.0 % 332 ** Sales and marketing 1,418 5.8 % 948 6.1 % 470 49.6 % Consulting and lobbying services 1,438 5.9 % 475 3.1 % 963 202.7 % Travel and meals 1,104 4.5 % 699 4.5 % 405 57.9 % Other 627 2.6 % 304 2.0 % 323 106.3 % Axon segment 9,695 39.8 % 4,620 29.9 % 5,075 109.8 % Total sales, general and administrative expenses 24,379$ 100.0 % 15,443$ 100.0 % 8,936$ 57.9 % Three Months Ended June 30, Dollar Change Percent Change2016 2015 TASER Weapons segment: Salaries, ben fits and bonus 419$ 6 2 358$ 6 1 6$ 17 Stock-based compensation 14 .1 8 2.2 14 10.9 Legal, pr fessional and accounting 1 . 110 1.9 (96) (87.3) Sales and marketing 5 0.1 % 5 0.1 % — — Consulting and lobbying services 02 1.5 59 1.0 43 72.9 Travel and meals 155 .3 91 .5 64 70.3 Other 408 6.1 326 5.5 8 25.2 % TASER We pons segment ,245 18.6 1,077 18.2 168 15. Axon segme t: Salaries, ben fits and bonus 3,432$ 51.1 2,826$ 47.8 6 6$ 21.4 Stock-based compensation 35 9.5 537 9.1 98 18.2 Legal, professional and accounting 16 0.2 72 1.2 (56) (77. ) Sales and marketing 89 1.3 8 0.1 81 ** Consulting and lobbying services 546 8.1 % 626 10.6 % (80) (12.8)% Travel and meals 146 2.2 % 221 3.7 % (75) (33.9)% Other 601 9.0 % 539 9.1 % 62 11.5 % Axon segment 5,465 81.4 % 4,829 81.8 % 636 13.2 % Total research and development expenses 6,710$ 100.0 % 5,906$ 100.0 % 804$ 13.6 % Three Months Ended June 30, Dollar Change Percent Change2016 2015