TASER International, Inc. Operating Metrics (Unaudited) 2016 2015 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Axon & Evidence.com Bookings (millions) $57.5 $72.0 $52.1 $44.7 $36.9 $30.6 $22.9 Sequential % Change -20% 38% 17% 21% 21% 34% -7% Annual Service Revenue (millions) (1) $32.0 $21.1 $18.1 $16.7 $12.0 $9.8 $7.8 Future Contracted Revenue (millions) (2) $302.0 $262.8 $202.3 $159.0 $122.4 $94.9 $71.1 Sequential % Change 15% 30% 27% 30% 29% 33% 33% Multiple Year Contract % (3) 89% 95% 95% 92% 91% 88% 90% LTV/CAC 5.0x 6.2x 5.1x 4.3x 4.6x 4.5x 3.5x Weapons Op Inc % 38.0% 33.2% 33.5% 37.4% 35.4% 38.7% 40.1% Evidence.com new seats booked 15,600 20,200 15,800 13,200 9,300 9,500 7,400 Evidence.com cumulative seats booked 110,600 95,000 74,800 59,000 45,800 36,400 27,000 (1) Monthly recurring license, integration, warranty and storage revenue annualized. (2) Cumulative bookings for Axon and Evidence.com minus cumulative recognized revenue related solely to Axon and Evidence.com (3) For orders booked with Evidence.com seats, the % that signed multiple year contracts
TASER International, Inc. TASER Weapons segment: Salaries, benefits and bonus 6,214$ 22.1 % 4,113$ 23.1 % 2,101$ 51.1 % Stock-based compensation 806 2.9 % 809 4.5 % (3) (0.4)% Professional & Consulting Expenses 2,165 7.7 % 2,882 16.2 % (717) (24.9)% Sales and marketing 1,357 4.8 % 1,174 6.6 % 183 15.6 % Travel and meals 1,152 4.1 % 729 4.1 % 423 58.0 % Other 4,745 16.9 % 2,234 12.5 % 2,511 112.4 % TASER Weapons segment 16,439 58.5 % 11,941 67.0 % 4,498 37.7 % Axon segment: Salaries, benefits and bonus 4,742$ 16.9 % 2,289$ 12.8 % 2,453$ 107.2 % Stock-based compensation 542 1.9 % 320 1.8 % 222 69.4 % Professional & Consulting Expenses 2,643 9.4 % 885 5.0 % 1,758 198.6 % Sales and marketing 1,568 5.6 % 939 5.3 % 629 67.0 % Travel and meals 1,354 4.8 % 672 3.8 % 682 101.5 % Other 833 3.0 % 788 4.4 % 45 5.7 % Axon segment 11,682 41.5 % 5,893 33.0 % 5,789 98.2 % Total sales, general and administrative expenses 28,121$ 100.0 % 17,834$ 100.0 % 10,287$ 57.7 % TASER Weapons segment: Salaries, benefits and bonus 707$ 9.6 % 421$ 6.4 % 286$ 67.9 % Stock-based compensation 143 1.9 % 135 2.1 % 8 5.9 % Professional & Consulting Expenses 230 3.1 % 324 5.0 % (94) (29.0)% Sales and marketing 0 0.0 % 4 0.1 % (4) — Travel and meals 34 0.5 % 48 0.7 % (14) (29.2)% Other 294 4.0 % 219 3.4 % 75 34.2 % TASER Weapons segment 1,408 19.1 % 1,151 17.6 % 257 22.3 % Axon segment: Salaries, benefits and bonus 3,625$ 49.3 % 3,015$ 46.2 % 610$ 20.2 % Stock-based compensation 648 8.8 % 488 7.5 % 160 32.8 % Professional & Consulting Expenses 443 6.0 % 755 11.6 % (312) (41.3)% Sales and marketing 158 2.1 % 5 0.1 % 153 ** Travel and meals 179 2.4 % 214 3.3 % (35) (16.4)% Other 897 12.2 % 900 13.8 % (3) (0.3)% Axon segment 5,950 80.9 % 5,377 82.4 % 573 10.7 % Total research and development expenses 7,358$ 100.0 % 6,528$ 100.0 % 830$ 12.7 % ** not meaningful SG&A Expenses by Segment (UNAUDITED) R&D Expenses by Segment (UNAUDITED) Three Months Ended September 30, Dollar Change Percent Change2016 2015 Three Months Ended September 30, Dollar Change Percent Change2016 2015