Axon Enterprise (AXON) 8-K Axon Reports 2017 First Quarter Results

Operating Metrics (Unaudited)

	2017	2016				2015
	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Axon & Evidence.com Bookings (millions)	$60.1	$72.5	$57.5	$72.0	$52.1	$44.7	$36.9	$30.6	$22.9
Sequential % Change	-17%	26%	-20%	38%	17%	21%	21%	34%	-7%
Annual Service Revenue (millions) (1)	$46.2	$40.2	$32.0	$21.1	$18.1	$16.7	$12.0	$9.8	$7.8
Future Contracted Revenue (millions) (2)	$390.0	$350.8	$302.0	$262.8	$202.3	$159.0	$122.4	$94.9	$71.1
Sequential % Change	11%	16%	15%	30%	27%	30%	29%	33%	33%
Multiple Year Contract % (3)	94%	88%	89%	95%	95%	92%	91%	88%	90%
LTV/CAC	4.3x	6.0x	4.9x	6.2x	5.1x	4.3x	4.6x	4.5x	3.5x
Weapons Op Inc %	35.1%	36.1%	38.0%	33.2%	33.5%	37.4%	35.4%	38.7%	40.1%
Evidence.com new seats booked	16,400	21,400	15,600	20,200	15,800	13,200	9,300	9,500	7,400
Evidence.com cumulative seats booked	148,400	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 the Software and Sensors segment minus cumulative recognized revenue related solely to Software and Sensors segment
(3) For orders booked with Evidence.com seats, the % that signed multiple year contracts

SG&A Expenses by Segment (Unaudited)

	Three Months Ended March 31,								Dollar Change			Percent Change
	2017				2016
TASER Weapons segment:
Salaries, benefits and bonus	$	8,074	26.2	%	$	5,719	23.0	%	$	2,355		41.2	%
Stock-based compensation	1,480		4.8		758		3.1		722			95.3
Professional, consulting and lobbying	1,852		6.0		2,958		11.9		(1,106		)	(37.4	)
Sales and marketing	1,255		4.1		2,668		10.7		(1,413		)	(53.0	)
Travel and meals	1,318		4.3		945		3.8		373			39.5
Other	3,237		10.5		2,224		9.0		1,013			45.5
TASER Weapons segment	17,216		55.8		15,272		61.5		1,944			12.7
Software and Sensors segment:
Salaries, benefits and bonus	6,002		19.5		3,955		15.9		2,047			51.8
Stock-based compensation	548		1.8		632		2.5		(84		)	(13.3	)
Professional, consulting and lobbying	2,712		8.8		1,034		4.2		1,678			162.3
Sales and marketing	2,158		7.0		2,139		8.6		19			0.9
Travel and meals	1,354		4.4		1,074		4.3		280			26.1
Other	867		2.8		727		2.9		140			19.3
Software and Sensors segment	13,641		44.2		9,561		38.5		4,080			42.7
Total sales, general and administrative expenses	$	30,857	100.0	%	$	24,833	100.0	%	$	6,024		24.3

R&D Expenses by Segment (Unaudited)

	Three Months Ended March 31,								Dollar Change			Percent Change
	2017				2016
TASER Weapons segment:
Salaries, benefits and bonus	$	1,107	8.9	%	$	293	4.2	%	$	814		277.8	%
Stock-based compensation	128		1.0		143		2.1		(15		)	(10.5	)
Professional and consulting	325		2.6		354		5.1		(29		)	(8.2	)
Travel and meals	103		0.8		37		0.5		66			178.4
Other	549		4.4		293		4.2		256			87.4
TASER Weapons segment	2,212		17.7		1,120		16.2		1,092			97.5
Software and Sensors segment:
Salaries, benefits and bonus	6,049		48.5		$	3,631	52.4		2,418			66.6
Stock-based compensation	1,212		9.7		587		8.5		625			106.5
Professional and consulting	1,247		10.0		432		6.2		815			188.7
Travel and meals	199		1.6		154		2.2		45			29.2
Other	1,544		12.4		1,003		14.5		541			53.9
Software and Sensors segment:	10,251		82.3		5,807		83.8		4,444			76.5
Total research and development expenses	$	12,463	100.0	%	$	6,927	100.0	%	$	5,536		79.9