OPERATING METRICS (UNAUDITED) 2016 2015 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Axon & Evidence.com Bookings (millions) $72.5 $57.5 $72.0 $52.1 $44.7 $36.9 $30.6 $22.9 Sequential % Change 26% ‐20% 38% 17% 21% 21% 34% ‐7% Annual Service Revenue (millions) (1) $40.2 $32.0 $21.1 $18.1 $16.7 $12.0 $9.8 $7.8 Future Contracted Revenue (millions) (2) $350.8 $302.0 $262.8 $202.3 $159.0 $122.4 $94.9 $71.1 Sequential % Change 16% 15% 30% 27% 30% 29% 33% 33% Multiple Year Contract % (3) 88% 89% 95% 95% 92% 91% 88% 90% LTV/CAC 6.0x 4.9x 6.2x 5.1x 4.3x 4.6x 4.5x 3.5x Weapons Op Inc % 36.1% 38.0% 33.2% 33.5% 37.4% 35.4% 38.7% 40.1% Evidence.com new seats booked 21,400 15,600 20,200 15,800 13,200 9,300 9,500 7,400 Evidence.com cumulative seats booked 132,000 110,600 95,000 74,800 59,000 45,800 36,400 27,000 (1) Monthly recurring license, integration, warranty and storage revenue annualized. (2) Cumulative bookings for Axon and Evidence.com minus cumulative recognized revenue related solely to Axon and Evidence.com (3) For orders booked with Evidence.com seats, the % that signed multiple year contracts
TASER International, Inc. TASER Weapons segment: Salaries, benefits and bonus 7,450$ 24.2 % 5,055$ 23.1 % 2,395$ 47.4 % Stock‐based compensation 912 3.0 % 1,070 4.9 % (158) (14.8)% Professional & Consulting Expenses 2,073 6.7 % 2,744 12.6 % (671) (24.5)% Sales and marketing 2,178 7.1 % 1,924 8.8 % 254 13.2 % Travel and meals 1,216 4.0 % 716 3.3 % 500 69.8 % Other 3,393 11.0 % 2,662 12.2 % 731 27.5 % TASER Weapons segment 17,222 56.0 % 14,171 64.8 % 3,051 21.5 % Axon segment: Salaries, benefits and bonus 5,651$ 18.4 % 2,586$ 11.8 % 3,065$ 118.5 % Stock‐based compensation 598 1.9 % 242 1.1 % 356 147.1 % Professional & Consulting Expenses 3,587 11.7 % 1,013 4.6 % 2,574 254.1 % Sales and marketing 1,702 5.5 % 2,417 11.1 % (715) (29.6)% Travel and meals 1,161 3.8 % 668 3.1 % 493 73.8 % Other 822 2.7 % 759 3.5 % 63 8.3 % Axon segment 13,521 44.0 % 7,685 35.2 % 5,836 75.9 % Total sales, general and administrative expenses 30,743$ 100.0 % 21,856$ 100.0 % 8,887$ 40.7 % TASER Weapons segment: Salaries, benefits and bonus 881$ 9.2 % 257$ 3.9 % 624$ 242.8 % Stock‐based compensation 211 2.2 % 106 1.6 % 105 99.1 % Professional & Consulting Expenses 427 4.4 % 418 6.3 % 9 2.2 % Sales and marketing 1 0.0 % — —% 1 — Travel and meals 119 1.2 % 82 1.2 % 37 45.1 % Other 475 4.9 % 189 2.9 % 286 151.3 % TASER Weapons segment 2,114 22.0 % 1,052 15.9 % 1,062 101.0 % Axon segment: Salaries, benefits and bonus 4,291$ 44.6 % 3,556$ 53.7 % 735$ 20.7 % Stock‐based compensation 811 8.4 % 642 9.7 % 169 26.3 % Professional & Consulting Expenses 545 5.7 % 651 9.8 % (106) (16.3)% Sales and marketing 242 2.5 % 11 0.2 % 231 ** Travel and meals 145 1.5 % 239 3.6 % (94) (39.3)% Other 1,466 15.2 % 471 7.1 % 995 211.3 % Axon segment 7,500 78.0 % 5,570 84.1 % 1,930 34.6 % Total research and development expenses 9,614$ 100.0 % 6,622$ 100.0 % 2,992$ 45.2 % ** not meaningful SG&A Expenses by Segment (UNAUDITED) R&D Expenses by Segment (UNAUDITED) Three Months Ended December 31, Dollar Change Percent Change2016 2015 Three Months Ended December 31, Dollar Change Percent Change2016 2015