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

Operating Metrics (Unaudited)

	2017						2016												2015
	Q2			Q1			Q4			Q3			Q2			Q1			Q4			Q3			Q2
Axon & Evidence.com Bookings (millions)	$	81.9		$	60.1		$	72.5		$	57.5		$	72.0		$	52.1		$	44.7		$	36.9		$	30.6
Sequential % Change	36		%	-17		%	26		%	-20		%	38		%	17		%	21		%	21		%	34		%
Annual Service Revenue (millions) (1)	$	54.7		$	46.2		$	40.2		$	32.0		$	21.1		$	18.1		$	16.7		$	12.0		$	9.8
Future Contracted Revenue (millions) (2)	$	446.4		$	390.0		$	350.8		$	302.0		$	262.8		$	202.3		$	159.0		$	122.4		$	94.9
Sequential % Change	14		%	11		%	16		%	15		%	30		%	27		%	30		%	29		%	33		%
Multiple Year Contract % (3)	97		%	94		%	88		%	89		%	95		%	95		%	92		%	91		%	88		%
LTV/CAC	5.5x			4.3x			6.0x			4.9x			6.2x			5.1x			4.3x			4.6x			4.5x
Weapons Op Inc %	33		%	35		%	36		%	38		%	33		%	34		%	37		%	35		%	39		%
Evidence.com new seats booked	20,600			16,400			21,400			15,600			20,200			15,800			13,200			9,300			9,500
Evidence.com cumulative seats booked	169,000			148,400			132,000			110,600			95,000			74,800			59,000			45,800			36,400
(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 June 30,								Dollar Change			Percent Change
	2017				2016
TASER Weapons segment:
Salaries, benefits and bonus	$	6,993	22.0	%	$	5,150	21.1	%	$	1,843		35.8	%
Stock-based compensation	1,432		4.5		863		3.5		569			65.9
Professional, consulting and lobbying	2,408		7.6		2,932		12.0		(524		)	(17.9	)
Sales and marketing	2,254		7.1		2,102		8.6		152			7.2
Travel and meals	1,245		3.9		964		4.0		281			29.1
Other	3,160		9.9		2,673		11.0		487			18.2
Total TASER Weapons segment	17,492		55.0		14,684		60.2		2,808			19.1
Software and Sensors segment:
Salaries, benefits and bonus	6,790		21.3		4,177		17.1		2,613			62.6
Stock-based compensation	723		2.3		596		2.4		127			21.3
Professional, consulting and lobbying	2,511		7.9		1,929		7.9		582			30.2
Sales and marketing	2,196		6.9		1,418		5.8		778			54.9
Travel and meals	1,443		4.5		1,104		4.5		339			30.7
Other	669		2.1		471		1.9		198			42.0
Total Software and Sensors segment	14,332		45.0		9,695		39.8		4,637			47.8
Total sales, general and administrative expenses	$	31,824	100.0	%	$	24,379	100.0	%	$	7,445		30.5

R&D Expenses by Segment (Unaudited)

	Three Months Ended June 30,								Dollar Change			Percent Change
	2017				2016
TASER Weapons segment:
Salaries, benefits and bonus	$	742	5.7	%	$	419	6.2	%	$	323		77.1	%
Stock-based compensation	129		1.0		142		2.1		(13		)	(9.2	)
Professional and consulting	324		2.5		156		2.3		168			107.7
Travel and meals	152		1.2		155		2.3		(3		)	(1.9	)
Other	516		4.0		373		5.6		143			38.3
Total TASER Weapons segment	1,863		14.3		1,245		18.6		618			49.6
Software and Sensors segment:
Salaries, benefits and bonus	6,286		48.4		3,432		51.1		2,854			83.2
Stock-based compensation	1,537		11.8		635		9.5		902			142.0
Professional and consulting	1,105		8.5		625		9.3		480			76.8
Travel and meals	271		2.1		146		2.2		125			85.6
Other	1,927		14.8		627		9.3		1,300			207.3
Total Software and Sensors segment:	11,126		85.7		5,465		81.4		5,661			103.6
Total research and development expenses	$	12,989	100.0	%	$	6,710	100.0	%	$	6,279		93.6