Axon Enterprise (AXON) 10-Q 6 May 24 2024 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2024	May 01, 2024
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	001-16391
Entity Registrant Name	Axon Enterprise, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	86-0741227
Entity Address, Address Line One	17800 North 85th Street
Entity Address, City or Town	Scottsdale
Entity Address, State or Province	AZ
Entity Address, Postal Zip Code	85255
City Area Code	480
Local Phone Number	991-0797
Title of 12(b) Security	Common Stock, $0.00001 Par Value
Trading Symbol	AXON
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		75,467,220
Entity Central Index Key	0001069183
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 403,870	$ 598,545
Marketable securities	99,720	77,940
Short-term investments	560,186	644,054
Accounts and notes receivable, net of allowance of $2,298 and $2,392 as of March 31, 2024 and December 31, 2023, respectively	476,764	417,690
Contract assets, net	266,172	275,779
Inventory	271,318	269,855
Prepaid expenses and other current assets	123,677	112,786
Total current assets	2,201,707	2,396,649
Property and equipment, net	209,166	200,533
Deferred tax assets, net	208,861	229,513
Intangible assets, net	89,419	19,539
Goodwill	308,470	57,945
Long-term notes receivable, net	2,397	2,588
Long-term contract assets, net	88,209	77,710
Strategic investments	295,497	231,730
Other long-term assets	212,470	220,638
Total assets	3,616,196	3,436,845
Current liabilities:
Accounts payable	82,075	88,326
Accrued liabilities	127,415	188,230
Current portion of deferred revenue	516,404	491,691
Customer deposits	21,979	21,935
Other current liabilities	9,601	9,787
Total current liabilities	757,474	799,969
Deferred revenue, net of current portion	293,878	281,852
Liability for unrecognized tax benefits	18,610	18,049
Long-term deferred compensation	14,700	11,342
Long-term lease liabilities	32,546	33,550
Convertible notes, net	677,895	677,113
Other long-term liabilities	3,078	2,936
Total liabilities	1,798,181	1,824,811
Commitments and contingencies (Note 13)
Stockholders' equity:
Preferred stock, $0.00001 par value; 25,000,000 shares authorized; no shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively
Common stock, $0.00001 par value; 200,000,000 shares authorized; 75,466,171 and 75,301,424 shares issued and outstanding as of March 31, 2024, 2023 and December 31, 2023, respectively	1	1
Additional paid-in capital	1,421,080	1,347,410
Treasury stock at cost, 20,220,227 shares as of March 31, 2024 and December 31, 2023	(155,947)	(155,947)
Retained earnings	564,467	431,249
Accumulated other comprehensive loss	(11,586)	(10,679)
Total stockholders' equity	1,818,015	1,612,034
Total liabilities and stockholders' equity	$ 3,616,196	$ 3,436,845

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Allowance on accounts receivable	$ 2,298	$ 2,392
Preferred stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Preferred stock, shares authorized (in shares)	25,000,000	25,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	75,466,171	75,301,424
Common stock, shares outstanding (in shares)	75,466,171	75,301,424
Treasury stock, shares (in shares)	20,220,227	20,220,227

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Net sales	$ 460,736	$ 343,043
Cost of sales	200,690	138,941
Gross margin	260,046	204,102
Operating expenses:
Sales, general and administrative	152,669	116,567
Research and development	91,097	70,927
Total operating expenses	243,766	187,494
Income from operations	16,280	16,608
Interest income, net	10,374	9,666
Other income, net	139,066	15,610
Income before provision (benefit) for income taxes	165,720	41,884
Provision for (benefit from) income taxes	32,502	(3,255)
Net income	$ 133,218	$ 45,139
Net income per common and common equivalent shares:
Basic (in dollars per share)	$ 1.77	$ 0.62
Diluted (in dollars per share)	$ 1.73	$ 0.61
Weighted average number of common and common equivalent shares outstanding:
Basic (in shares)	75,355	72,638
Diluted (in shares)	77,132	73,880
Net income	$ 133,218	$ 45,139
Foreign currency translation adjustments	(801)	1,676
Unrealized gain (loss) on available-for-sale investments	(106)	184
Comprehensive income	132,311	46,999
Product
Net sales	272,048	219,389
Cost of sales	151,698	107,584
Service
Net sales	188,688	123,654
Cost of sales	$ 48,992	$ 31,357

UNAUDITED CONDENSED CONSOLIDA_2

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Treasury Stock	Retained Earnings	Accumulated Other Comprehensive Loss	Total
Beginning balance at Dec. 31, 2022	$ 1	$ 1,174,594	$ (155,947)	$ 257,022	$ (7,179)	$ 1,268,491
Beginning balance (in shares) at Dec. 31, 2022	71,474,581		20,220,227
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock		33,650				33,650
Issuance of common stock (in shares)	154,500
Issuance of common stock under employee plans, net		(34,841)				(34,841)
Issuance of common stock under employee plans, net (in shares)	335,629
Stock options exercised		54,346				54,346
Stock options exercised (in shares)	1,901,535
Stock-based compensation		34,350				34,350
Issuance of common stock for business combination contingent consideration (in shares)	7,817
Net income				45,139		45,139
Other comprehensive income (loss), net					1,860	1,860
Ending balance at Mar. 31, 2023	$ 1	1,262,099	$ (155,947)	302,161	(5,319)	1,402,995
Ending balance (in shares) at Mar. 31, 2023	73,874,062		20,220,227
Beginning balance at Dec. 31, 2022	$ 1	1,174,594	$ (155,947)	257,022	(7,179)	1,268,491
Beginning balance (in shares) at Dec. 31, 2022	71,474,581		20,220,227
Ending balance at Dec. 31, 2023	$ 1	1,347,410	$ (155,947)	431,249	(10,679)	1,612,034
Ending balance (in shares) at Dec. 31, 2023	75,301,424		20,220,227
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under employee plans, net		(2,710)				(2,710)
Issuance of common stock under employee plans, net (in shares)	164,747
Stock-based compensation		75,115				75,115
Issuance of replacement awards in connection with acquisitions		1,265				1,265
Net income				133,218		133,218
Other comprehensive income (loss), net					(907)	(907)
Ending balance at Mar. 31, 2024	$ 1	$ 1,421,080	$ (155,947)	$ 564,467	$ (11,586)	$ 1,818,015
Ending balance (in shares) at Mar. 31, 2024	75,466,171		20,220,227

UNAUDITED CONDENSED CONSOLIDA_3

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities:
Net income	$ 133,218	$ 45,139
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Gain on strategic investments and marketable securities, net	(97,419)	(15,570)
Stock-based compensation	75,115	34,350
Gain on remeasurement of previously held minority interest, net	(42,292)
Deferred income taxes	20,670	(9,660)
Depreciation and amortization	11,564	6,689
Bond amortization	(4,990)	(3,890)
Noncash lease expense	1,795	1,395
Amortization of debt issuance cost	782	756
Unrecognized tax benefits	544	855
Other noncash items	461	1,047
Change in assets and liabilities:
Accounts and notes receivable and contract assets	(51,132)	(50,431)
Inventory	(710)	(15,811)
Prepaid expenses and other assets	2	(64,348)
Accounts payable, accrued and other liabilities	(84,289)	(37,043)
Deferred revenue	20,743	50,199
Net cash used in operating activities	(15,938)	(56,323)
Cash flows from investing activities:
Purchases of investments	(241,457)	(145,124)
Proceeds from call, maturity, and sale of investments	330,472	81,088
Purchases of property and equipment	(16,194)	(8,513)
Proceeds from disposal of property and equipment	34
Purchases of intangible assets		(125)
Strategic investments	(9,128)
Business acquisition, net of cash acquired	(237,771)
Net cash used in investing activities	(174,044)	(72,674)
Cash flows from financing activities:
Net proceeds from equity offering		33,650
Proceeds from options exercised		39,181
Income and payroll tax payments for net-settled stock awards	(2,710)	(34,841)
Net cash provided by (used in) financing activities	(2,710)	37,990
Effect of exchange rate changes on cash and cash equivalents	(1,978)	779
Net decrease in cash and cash equivalents	(194,670)	(90,228)
Cash and cash equivalents and restricted cash, beginning of period	600,670	355,552
Cash and cash equivalents and restricted cash, end of period	$ 406,000	$ 265,324

UNAUDITED CONDENSED CONSOLIDA_4

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Supplemental disclosures:
Cash and cash equivalents	$ 403,870	$ 263,414
Restricted cash (Note 1)	2,130	1,910
Total cash, cash equivalents and restricted cash shown in the statements of cash flows	406,000	265,324
Cash paid for income taxes, net of refunds	1,413	20,936
Non-cash transactions
Property and equipment purchases in accounts payable and accrued liabilities	$ 1,406	1,130
Receivables from options exercised		$ 15,165

Organization and Summary of Sig

Organization and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2024
Organization and Summary of Significant Accounting Policies
Organization and Summary of Significant Accounting Policies	Note 1 - Organization and Summary of Significant Accounting Policies Axon Enterprise, Inc. (“Axon”, the “Company”, “we”, or “us”) is a market-leading provider of public safety technology solutions. Our mission is to protect life in service of promoting peace, justice and strong institutions. Our headquarters in Scottsdale, Arizona and our software hub in Seattle, Washington house the majority of our in-person employees located in the United States, including members of our executive management team, and sales, marketing, certain engineering, manufacturing, finance and other administrative support functions. We also have subsidiaries and / or offices located in Australia, Belgium, Canada, Finland, France, Germany, Hong Kong, India, Italy, the Netherlands, Spain, the United Kingdom and Vietnam. The accompanying unaudited condensed consolidated financial statements include the accounts of Axon Enterprise, Inc. and our subsidiaries. All material intercompany accounts, transactions and profits have been eliminated. Basis of Presentation and Use of Estimates These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC. Certain information related to our organization, significant accounting policies and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP” or “GAAP”) has been condensed or omitted. The accounting policies followed in the preparation of these unaudited condensed consolidated financial statements are consistent with those followed in our annual consolidated financial statements for the year ended December 31, 2023, as filed on Form 10-K. In the opinion of management, these unaudited condensed consolidated financial statements contain all material adjustments, consisting only of normal recurring adjustments, necessary to fairly state our financial position, results of operations and cash flows for the periods presented and the presentations and disclosures herein are adequate when read in conjunction with our Form 10-K for the year ended December 31, 2023. Our results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results to be expected for the full year (or any other period). Significant estimates and assumptions in these unaudited condensed consolidated financial statements include: ● product warranty reserves, ● inventory valuation, ● revenue recognition, ● reserve for expected credit losses, ● valuation of goodwill, intangible and long-lived assets, ● valuation of strategic investments, ● recognition, measurement and valuation of current and deferred income taxes, ● stock-based compensation, ● business combinations, and ● recognition and measurement of contingencies and accrued litigation expense. ​ The Company believes that estimates used in the preparation of these unaudited condensed consolidated financial statements are reasonable; however, actual results could differ materially from those estimates. Segment Information Our operations comprise two reportable segments: the development, manufacture and sale of fully integrated hardware and cloud-based software solutions that enable law enforcement to capture, securely store, manage, share and analyze video and other digital evidence (collectively, the “Software and Sensors” segment); and the manufacture and sale of conducted energy devices (“CEDs”), batteries, accessories, extended warranties and other products and services (collectively, the “TASER” segment). In both segments, we report sales of products and services. Service revenue in both segments includes sales related to Axon Evidence. In the Software and Sensors segment, service revenue also includes other recurring cloud-hosted software revenue and related professional services. Collectively, this revenue is sometimes referred to as “Axon Cloud revenue.” Reportable segments are determined based on discrete financial information reviewed by our Chief Executive Officer, who is our chief operating decision maker (“CODM”). We organize and review operations based on products and services, and currently there are no operating segments that are aggregated. We perform an analysis of our reportable segments at least annually. Additional information related to our business segments is summarized in Note 15. Geographic Information and Major Customers / Suppliers For the three months ended March 31, 2024 and March 31, 2023, no individual country outside the United States represented more than 10% of total net sales. Individual sales transactions in the international market are generally larger and occur more intermittently than in the domestic market due to the profile of our customers. For the three months ended March 31, 2024 and March 31, 2023, no customer represented more than 10% of total net sales. At March 31, 2024 and December 31, 2023, no customer represented more than 10% of the aggregate balance of accounts and notes receivable and contract assets. We currently purchase both off-the-shelf and custom components, including finished circuit boards, injection-molded plastic components, small machined parts, custom cartridge components, electronic components and off-the-shelf sub-assemblies from suppliers located in the United States, China, Mexico, Republic of Korea, Taiwan and Vietnam. We may source from other countries as well. Although we currently obtain many of these components from single source suppliers, we own substantially all of the injection molded component tooling, designs and test fixtures used in their production for all custom components. As a result, we believe we could obtain alternative suppliers in most cases. Although we have experienced supply chain disruptions relating to materials and port constraints, we have remained focused on closely managing our supply chain. We continue to bolster our strategic relationships in our supply chain, identifying secondary/alternate sourcing, adjusting build plans accordingly, and building in logistic modes in support of our increasing demand while working to minimize disruption to customers. We acquire most of our components on a purchase order basis and do not currently have significant long-term purchase contracts with most component suppliers. Income per Common Share Basic income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the periods presented. Diluted income per share reflects the potential dilution from outstanding stock options and unvested restricted stock units (“RSUs”). The effects of outstanding stock options, unvested RSUs, our 0.50% convertible senior notes due 2027 (the “Notes” or “2027 Notes”), and warrants to acquire shares of our common stock (the “Warrants” or “2027 Warrants”) are excluded from the computation of diluted net income per share in periods in which the effect would be antidilutive. The calculation of the weighted average number of shares outstanding and earnings per share are as follows (in thousands except per share data): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ 2024 2023 Numerator for basic and diluted earnings per share: ​ ​ Net income ​ $ 133,218 ​ $ 45,139 Denominator: ​ ​ Weighted average shares outstanding ​ 75,355 ​ 72,638 Dilutive effect of stock-based awards ​ 1,243 ​ 1,242 Dilutive effect of 2027 Notes ​ ​ 534 ​ ​ — Diluted weighted average shares outstanding ​ 77,132 ​ 73,880 ​ ​ ​ ​ ​ ​ ​ Net income per common share: ​ ​ ​ ​ Basic ​ $ 1.77 ​ $ 0.62 Diluted ​ $ 1.73 ​ $ 0.61 ​ Potentially dilutive securities that are not included in the calculation of diluted net income per share because doing so would be antidilutive are as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ 2024 2023 Stock-based awards ​ 308 ​ 1,469 2027 Notes ​ 2,483 ​ 3,017 2027 Warrants ​ 3,017 ​ 3,017 Total potentially dilutive securities ​ ​ 5,808 ​ 7,503 ​ For additional information regarding our 2027 Notes, refer to Note 9. ​ Warranty Reserves We warranty our CEDs, Axon cameras and certain related accessories from manufacturing defects on a limited basis for a period of one year after purchase and, thereafter, will replace any defective unit for a fee. The company estimates and records a liability for standard warranty at the time products are sold. The estimates are based on historical experience and reflect management’s best estimates of costs to be incurred over the warranty period. Adjustments may be required when actual or projected costs differ. Variations in component failure rates, repair costs and the point of failure within the product life cycle are key drivers that impact our periodic re-assessment of the warranty liability. Revenue related to separately priced extended warranties is initially recorded as deferred revenue at its allocated amount and subsequently recognized as net sales on a straight-line basis over the warranty service period. Costs related to extended warranties are charged to cost of product and service sales when the costs become probable and can be reasonably estimated. Changes in our estimated product warranty liabilities were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ 2024 ​ 2023 Balance, beginning of period ​ $ 7,374 ​ $ 811 Utilization of reserve ​ (2,207) ​ (438) Warranty expense ​ 1,119 ​ 2,928 Balance, end of period ​ $ 6,286 ​ $ 3,301 ​ Fair Value Measurements and Financial Instruments We use the fair value framework that prioritizes the inputs to valuation techniques for measuring financial assets and liabilities measured on a recurring basis and for non-financial assets and liabilities when these items are re-measured. Fair value is considered to be the exchange price in an orderly transaction between market participants, to sell an asset or transfer a liability at the measurement date. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. We categorize each of our fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are: ● Level 1 – Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured. ● Level 2 – Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and/or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets are Level 2 valuation techniques. ● Level 3 – Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect our own assumptions about inputs that market participants would use in pricing an asset or liability. We have cash equivalents and investments, which at March 31, 2024 comprised money market funds, corporate bonds, term deposits, U.S. government bonds, agency bonds and U.S. Treasury bills Cash equivalents and investments at December 31, 2023 also included commercial paper and U.S. Treasury inflation-protected securities. ​ We have an investment in marketable securities, for which c hanges in fair value are recorded in the condensed consolidated statement of operations as unrealized gain or (loss) on marketable securities, which is included in other income, net. ​ We have strategic investments in various unconsolidated affiliates as of March 31, 2024. The estimated fair value of the investments was determined based on Level 3 inputs. In determining the estimated fair value of our strategic investments in privately held companies, we utilize observable data available to us as discussed further in Note 7. ​ The fair value of our 2027 Notes is determined based on the closing trading price per $1,000 of the Notes as of the last day of trading for the period. We consider the fair value of the Notes at March 31, 2024 to be a Level 2 measurement as they are not publicly traded. The fair value of the Notes is primarily affected by the trading price of our common stock and market interest rates. ​ Our financial instruments also include accounts and notes receivable, accounts payable and accrued liabilities. Due to the short-term nature of these instruments, their fair values approximate their carrying values on the condensed consolidated balance sheet. Restricted Cash Restricted cash balances of $2.1 million as of March 31, 2024 and December 31, 2023, respectively, primarily relate to funds held in an international bank account for a country in which we are required to maintain a minimum balance to operate. As of March 31, 2024, approximately $2.0 million was included in prepaid expenses and other assets on our consolidated balance sheet, with the remainder in other long-term assets. Valuation of Goodwill, Intangibles and Long-lived Assets We evaluate whether events and circumstances have occurred that indicate the remaining estimated useful life of long-lived assets and identifiable intangible assets, excluding goodwill and intangible assets with indefinite useful lives, may warrant revision or that the remaining balance of these assets may not be recoverable. Such events and circumstances could include a change in the product mix, a change in the way products are created, produced or delivered, or a significant change in the way products are branded and marketed. In performing the review for recoverability, we estimate the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. The amount of the impairment loss, if impairment exists, is calculated based on the excess of the carrying amounts of the assets over their estimated fair values computed using discounted cash flows. Finite-lived intangible assets and other long-lived assets are amortized over their estimated useful lives. We do not amortize goodwill and intangible assets with indefinite useful lives; rather such assets are required to be tested for impairment at least annually or sooner whenever events or changes in circumstances indicate that the assets may be impaired. We test goodwill and intangible assets for impairment on an annual basis in the fourth quarter and on an interim basis when certain events and circumstances exist. Business Combinations Acquired businesses are included in the consolidated financial statements from the date we gain control of the business. We recognize, separately from goodwill, the identifiable assets acquired and liabilities assumed at their estimated acquisition-date fair values. Our estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, we may record qualifying adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. In addition, uncertain tax positions, tax-related valuation allowances and pre-acquisition contingencies are initially recorded in connection with a business combination as of the acquisition date. We continue to collect information and reevaluate these estimates and assumptions quarterly and record any qualifying adjustments to our preliminary estimates to goodwill provided that we are within the measurement period. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to our consolidated statement of operations. ​ In the event that we acquire an entity in which we previously held an existing ownership interest, the difference between the fair value of the interest as of the acquisition date and the carrying value of the interest is recorded as a gain or loss within other income, net, in the consolidated statement of operations. Preexisting relationships subject to termination as a result of consummating an acquisition may require the recognition of a gain or loss upon settlement, which is recognized within income (loss) from operations on the consolidated statement of operations. All third-party transaction-related costs are recognized as expense in the period in which they are incurred. ​ Recently Issued Accounting Guidance and Disclosure Rules In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 requires annual and interim disclosures that are expected to improve reportable segment disclosures, primarily through enhanced disclosures about significant segment expenses. The new standard is effective for our Annual Report on Form 10-K for the year ending December 31, 2024, and subsequent interim periods, with early adoption permitted. We are currently evaluating the impact of this update on our consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax. The provisions of ASU 2023-09 are effective for our Annual Report on Form 10-K for the year ending December 31, 2025, with early adoption permitted. We are currently evaluating the impact of this update on our consolidated financial statements. In March 2024, the SEC adopted final rules under SEC Release No. 34-99678 and No. 33-11275, The Enhancement and Standardization of Climate-Related Disclosures for Investors Reclassification of Prior Year Presentation Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications are not material and had no effect on the reported results of operations.

Revenues

Revenues	3 Months Ended
	Mar. 31, 2024
Revenues.
Revenues	Note 2 - Revenues Nature of Products and Services The following tables present our revenues by primary product and service offering (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, 2024 ​ Three Months Ended March 31, 2023 ​ ​ ​ Software and ​ ​ ​ ​ Software and ​ ​ ​ ​ TASER ​ Sensors ​ Total ​ TASER ​ Sensors ​ Total TASER Devices (Professional) ​ $ 98,676 ​ ​ — ​ $ 98,676 ​ $ 67,472 ​ $ — ​ $ 67,472 Cartridges ​ 56,198 ​ ​ — ​ ​ 56,198 ​ 46,800 ​ ​ — ​ ​ 46,800 Axon Evidence and Cloud Services ​ 12,221 ​ ​ 175,458 ​ ​ 187,679 ​ 7,201 ​ ​ 118,314 ​ ​ 125,515 Extended Warranties ​ 8,526 ​ ​ 18,474 ​ ​ 27,000 ​ 7,670 ​ ​ 14,085 ​ ​ 21,755 Axon Body Cameras and Accessories ​ — ​ ​ 51,205 ​ ​ 51,205 ​ — ​ ​ 38,797 ​ ​ 38,797 Axon Fleet Systems ​ — ​ ​ 28,387 ​ ​ 28,387 ​ — ​ ​ 32,972 ​ ​ 32,972 Other (1) (2) ​ 3,127 ​ ​ 8,464 ​ ​ 11,591 ​ 5,139 ​ ​ 4,593 ​ ​ 9,732 Total ​ $ 178,748 ​ $ 281,988 ​ $ 460,736 ​ $ 134,282 ​ $ 208,761 ​ $ 343,043 ​ ​ (1) TASER segment “Other” includes smaller categories, such as Virtual Reality (“VR”) hardware, weapons training revenue such as revenue associated with our Master Instructor School, and TASER consumer device sales. (2) Software and Sensors segment “Other” includes revenue from items including Signal Sidearm, Interview Room, Axon Air and other sensors and equipment. ​ The following table presents our revenues disaggregated by geography (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ ​ ​ ​ 2024 ​ ​ 2023 ​ ​ United States $ 392,406 85 % ​ $ 290,938 85 % ​ Other countries ​ 68,330 15 ​ ​ 52,105 15 ​ ​ Total ​ $ 460,736 100 % ​ $ 343,043 100 % ​ ​ Contract Balances The following table presents our contract assets, contract liabilities and certain information related to these balances as of and for the three months ended March 31, 2024 (in thousands): ​ ​ ​ ​ ​ ​ March 31, 2024 Contract assets, net ​ $ 354,381 Contract liabilities (deferred revenue) ​ 810,282 Revenue recognized in the period from: ​ Amounts included in contract liabilities at the beginning of the period ​ 186,485 ​ Contract liabilities (deferred revenue) consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2024 ​ December 31, 2023 ​ Current Long-Term Total Current Long-Term Total Extended Warranty: ​ ​ ​ ​ ​ ​ ​ TASER ​ $ 14,877 ​ $ 18,802 ​ $ 33,679 ​ $ 14,773 ​ $ 18,828 ​ $ 33,601 Software and Sensors ​ 34,396 ​ 15,980 ​ 50,376 ​ 33,940 ​ 16,036 ​ 49,976 ​ ​ 49,273 ​ 34,782 ​ 84,055 ​ 48,713 ​ 34,864 ​ 83,577 Hardware: ​ ​ ​ ​ ​ ​ TASER ​ 54,368 ​ 33,613 ​ 87,981 ​ 42,464 ​ 29,689 ​ 72,153 Software and Sensors ​ 61,353 ​ 117,808 ​ 179,161 ​ 62,635 ​ 117,024 ​ 179,659 ​ ​ 115,721 ​ 151,421 ​ 267,142 ​ 105,099 ​ 146,713 ​ 251,812 Services: ​ ​ ​ ​ ​ ​ TASER ​ 11,808 ​ 2,183 ​ 13,991 ​ 7,939 ​ 3,983 ​ 11,922 Software and Sensors ​ 339,602 ​ 105,492 ​ 445,094 ​ 329,940 ​ 96,292 ​ 426,232 ​ ​ ​ 351,410 ​ ​ 107,675 ​ ​ 459,085 ​ ​ 337,879 ​ ​ 100,275 ​ ​ 438,154 Total ​ $ 516,404 ​ $ 293,878 ​ $ 810,282 ​ $ 491,691 ​ $ 281,852 ​ $ 773,543 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2024 ​ December 31, 2023 ​ Current Long-Term Total Current Long-Term Total TASER ​ $ 81,053 ​ $ 54,598 ​ $ 135,651 ​ $ 65,176 ​ $ 52,500 ​ $ 117,676 Software and Sensors ​ 435,351 ​ 239,280 ​ 674,631 ​ 426,515 ​ ​ 229,352 ​ ​ 655,867 Total ​ $ 516,404 ​ $ 293,878 ​ $ 810,282 ​ $ 491,691 ​ $ 281,852 ​ $ 773,543 ​ Remaining Performance Obligations As of March 31, 2024, we had approximately $7.0 billion of remaining performance obligations, which included both recognized contract liabilities as well as amounts that will be invoiced and recognized in future periods. The remaining performance obligations are limited only to arrangements that meet the definition of a contract under Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers, as of March 31, 2024. We currently expect to recognize between 15% - 25% of this balance over the next 12 months, and generally expect the remainder to be recognized over the following ten years, subject to risks related to delayed deployments, budget appropriation or other contract cancellation clauses.

Cash, Cash Equivalents and Inve

Cash, Cash Equivalents and Investments	3 Months Ended
	Mar. 31, 2024
Cash, Cash Equivalents and Investments
Cash, Cash Equivalents and Investments	Note 3 - Cash, Cash Equivalents and Investments The following tables summarize our cash, cash equivalents, marketable securities and available-for-sale investments at March 31, 2024 and December 31, 2023 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of March 31, 2024 ​ ​ ​ Gross Gross ​ ​ Cash and ​ ​ ​ ​ ​ ​ Amortized ​ Unrealized ​ Unrealized ​ ​ ​ ​ Cash ​ Marketable ​ Short-Term ​ ​ ​ Cost ​ Gains ​ Losses ​ Fair Value ​ Equivalents ​ Securities ​ Investments ​ Cash ​ $ 110,509 ​ ​ — ​ ​ — ​ $ 110,509 ​ ​ $ 110,509 ​ $ — ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 1: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Money market funds ​ 101,721 ​ ​ — ​ ​ — ​ 101,721 ​ ​ 101,721 ​ — ​ — ​ Agency bonds ​ 87,635 ​ ​ — ​ ​ (48) ​ 87,587 ​ ​ 81,640 ​ — ​ 5,947 ​ Treasury bills ​ ​ 310,446 ​ ​ 1 ​ ​ (441) ​ ​ 310,006 ​ ​ ​ — ​ ​ — ​ ​ 310,006 ​ U.S. Government ​ ​ 130,793 ​ ​ — ​ ​ (29) ​ ​ 130,764 ​ ​ ​ — ​ ​ — ​ ​ 130,764 ​ Marketable securities ​ ​ 90,000 ​ ​ 9,720 ​ ​ — ​ ​ 99,720 ​ ​ — ​ 99,720 ​ — ​ Subtotal ​ 720,595 ​ ​ 9,721 ​ (518) ​ 729,798 ​ ​ ​ 183,361 ​ ​ 99,720 ​ ​ 446,717 ​ Level 2: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Term deposits ​ ​ 211,729 ​ ​ — ​ ​ — ​ ​ 211,729 ​ ​ ​ 110,000 ​ ​ — ​ ​ 101,729 ​ Corporate bonds ​ ​ 11,752 ​ ​ 7 ​ ​ (19) ​ ​ 11,740 ​ ​ ​ — ​ ​ — ​ ​ 11,740 ​ Subtotal ​ ​ 223,481 ​ ​ 7 ​ ​ (19) ​ ​ 223,469 ​ ​ ​ 110,000 ​ ​ — ​ ​ 113,469 ​ Total ​ $ 1,054,585 ​ $ 9,728 ​ $ (537) ​ $ 1,063,776 ​ ​ $ 403,870 ​ $ 99,720 ​ $ 560,186 ​ ​ As of March 31, 2024, we had $531.5 million of available-for-sale investments with unrealized losses. Of the $531.5 million of available-for-sale investments with unrealized losses, $25.2 million has been in a continuous unrealized loss position for 12 months or longer, with total gross unrealized losses of less than $0.1 million. We do not intend to sell the investments and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost bases. ​ During the year ended December 31, 2021, we acquired 9.0 million shares of common stock of Cellebrite DI Ltd (“CLBT”) with a fair value of $90.0 million. The CLBT common stock is recorded as marketable securities in the accompanying condensed consolidated balance sheets and its fair value is adjusted every reporting period. Changes in fair value are recorded in the condensed consolidated statement of operations as unrealized gain or (loss) on marketable securities, which is included in other income, net. During the three months ended March 31, 2024, we recorded an unrealized gain on marketable securities of $21.8 million, relating to CLBT. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2023 ​ ​ ​ Gross Gross ​ ​ Cash and ​ ​ ​ ​ ​ ​ Amortized ​ Unrealized ​ Unrealized ​ ​ ​ ​ Cash ​ Marketable ​ Short-Term ​ ​ ​ Cost ​ Gains ​ Losses ​ Fair Value ​ Equivalents ​ Securities ​ Investments ​ Cash ​ $ 406,743 ​ $ — ​ $ — ​ $ 406,743 ​ ​ $ 406,743 ​ $ — ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 1: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Money market funds ​ 1,470 ​ ​ — ​ — ​ 1,470 ​ ​ 1,470 ​ — ​ — ​ Agency bonds ​ 222,057 ​ ​ 2 ​ (174) ​ 221,885 ​ ​ 101,635 ​ — ​ 120,250 ​ U.S. Government ​ ​ 238,747 ​ ​ 120 ​ ​ (237) ​ ​ 238,630 ​ ​ ​ — ​ ​ — ​ ​ 238,630 ​ Treasury bills ​ ​ 148,063 ​ ​ 28 ​ ​ — ​ ​ 148,091 ​ ​ ​ 88,697 ​ ​ — ​ ​ 59,394 ​ Marketable securities ​ ​ 90,000 ​ ​ — ​ ​ (12,060) ​ ​ 77,940 ​ ​ — ​ 77,940 ​ — ​ Subtotal ​ 700,337 ​ ​ 150 ​ (12,471) ​ 688,016 ​ ​ ​ 191,802 ​ ​ 77,940 ​ ​ 418,274 ​ Level 2: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Term deposits ​ ​ 128,205 ​ ​ — ​ ​ — ​ ​ 128,205 ​ ​ ​ — ​ ​ — ​ ​ 128,205 ​ Corporate bonds ​ ​ 80,646 ​ ​ 8 ​ ​ (165) ​ ​ 80,489 ​ ​ ​ — ​ ​ — ​ ​ 80,489 ​ Treasury Inflation-Protected Securities ​ ​ 2,635 ​ ​ — ​ ​ (5) ​ ​ 2,630 ​ ​ ​ — ​ ​ — ​ ​ 2,630 ​ Commercial paper ​ ​ 14,456 ​ ​ — ​ ​ — ​ ​ 14,456 ​ ​ ​ — ​ ​ — ​ ​ 14,456 ​ Subtotal ​ ​ 225,942 ​ ​ 8 ​ ​ (170) ​ ​ 225,780 ​ ​ ​ — ​ ​ — ​ ​ 225,780 ​ Total ​ $ 1,333,022 ​ $ 158 ​ $ (12,641) ​ $ 1,320,539 ​ ​ $ 598,545 ​ $ 77,940 ​ $ 644,054 ​ ​ ​ ​ ​ As of December 31, 2023, we had $420.4 million of available-for-sale investments with unrealized losses. Of this amount, $138.8 million has been in a continuous unrealized loss position for 12 months or longer, with total gross unrealized losses of $0.3 million. We do not intend to sell the investments and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost bases. ​ During the year ended December 31, 2023, we recorded a $38.7 million unrealized gain on marketable securities from our investment in CLBT.

Expected Credit Losses

Expected Credit Losses	3 Months Ended
	Mar. 31, 2024
Expected Credit Losses
Expected Credit Losses	Note 4 - Expected Credit Losses We are exposed to credit losses primarily through sales of products and services. Our expected loss allowance methodology for accounts receivable, contract assets, notes receivable and off-balance-sheet exposures is developed using historical collection experience, published or estimated credit default rates for entities that represent our customer base, current and future economic and market conditions, and a review of the current status of customers’ trade accounts receivables. Additionally, specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. Our monitoring activities include account reconciliation, dispute resolution, payment confirmation, consideration of customers’ financial condition and macroeconomic conditions. Balances are written off when determined to be uncollectible. We review receivables for U.S. and international customers separately to better reflect different published credit default rates and economic and market conditions. ​ The following table provides a roll-forward of the allowance for expected credit losses for finance receivables and off-balance-sheet exposures. The expected credit losses for receivables is deducted from the amortized cost basis of accounts receivable, contract assets and notes receivable to present the net amount expected to be collected (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, 2024 ​ ​ United States ​ Other countries ​ Total Balance, beginning of period ​ $ 3,369 ​ $ 597 ​ $ 3,966 Provision for expected credit losses ​ ​ 195 ​ ​ 22 ​ ​ 217 Amounts written off charged against the allowance ​ ​ (302) ​ ​ (51) ​ ​ (353) Other, including foreign currency translation ​ — ​ ​ 14 ​ 14 Balance, end of period ​ $ 3,262 ​ $ 582 ​ $ 3,844 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2024 ​ December 31, 2023 Accounts receivable and notes receivable, current ​ $ 2,298 ​ $ 2,392 Contract assets, net ​ 1,516 ​ 1,516 Long-term notes receivable, net of current portion ​ 30 ​ 44 Other current liabilities ​ ​ — ​ ​ 14 Total allowance for expected credit losses on customer receivables ​ $ 3,844 ​ $ 3,966 ​

Inventory

Inventory	3 Months Ended
	Mar. 31, 2024
Inventory
Inventory	Note 5 - Inventory Inventories are stated at the lower of cost or realizable values. Cost of inventories is determined on the first-in, first-out basis utilizing a standard cost methodology. Additional provisions are made to reduce excess, obsolete or slow-moving inventories to their net realizable value. These provisions are based on management’s best estimate after considering historical demand, projected future demand, inventory purchase commitments, industry and market trends and conditions among other factors. We evaluate inventory costs for abnormal costs due to excess production capacity and treat such costs as period costs. ​ Inventory consisted of the following at March 31, 2024 and December 31, 2023 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2024 December 31, 2023 Raw materials ​ $ 107,121 ​ $ 104,112 Finished goods ​ 164,197 ​ 165,743 Total inventory ​ $ 271,318 ​ $ 269,855 ​

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Mar. 31, 2024
Goodwill and Intangible Assets
Goodwill and Intangible Assets	Note 6 – Goodwill and Intangible Assets The changes in the carrying amount of goodwill for the three months ended March 31, 2024 were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Software and ​ ​ ​ ​ TASER ​ Sensors ​ Total Balance, beginning of period ​ $ 2,984 ​ $ 54,961 ​ $ 57,945 Goodwill acquired ​ ​ — ​ ​ 250,653 ​ ​ 250,653 Purchase accounting adjustments ​ ​ — ​ ​ (231) ​ ​ (231) Foreign currency translation adjustments ​ (37) ​ 140 ​ 103 Balance, end of period ​ $ 2,947 ​ $ 305,523 ​ $ 308,470 ​ ​ Intangible assets (other than goodwill) consisted of the following at March 31, 2024 and December 31, 2023 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2024 ​ December 31, 2023 ​ ​ Gross ​ ​ Net Gross ​ ​ Net ​ ​ Useful ​ Carrying ​ Accumulated ​ Carrying ​ Carrying ​ Accumulated ​ Carrying ​ ​ Life ​ Amount ​ Amortization ​ Amount ​ Amount ​ Amortization ​ Amount Amortizable (definite-lived) intangible assets: ​ ​ ​ ​ ​ Domain names 3 ​ $ 3,043 ​ ​ (2,205) ​ $ 838 ​ $ 3,043 ​ $ (2,128) ​ $ 915 Issued patents 5 ​ 3,147 ​ ​ (1,648) ​ 1,499 ​ 3,222 ​ (1,707) ​ 1,515 Trademarks 3 ​ 3,214 ​ ​ (935) ​ 2,279 ​ 1,333 ​ (817) ​ 516 Customer relationships 4 ​ 18,629 ​ ​ (2,719) ​ 15,910 ​ 5,530 ​ (3,620) ​ 1,910 Non-compete agreements 3 ​ — ​ ​ — ​ — ​ 448 ​ (448) ​ — Developed technology 3 ​ 82,532 ​ ​ (15,438) ​ 67,094 ​ 29,402 ​ (16,562) ​ 12,840 Total amortizable ​ 110,565 ​ (22,945) ​ 87,620 ​ 42,978 ​ (25,282) ​ 17,696 Non-amortizable (indefinite-lived) intangible assets: ​ ​ ​ ​ Trademarks ​ 1,068 ​ — ​ 1,068 ​ 1,068 ​ — ​ 1,068 Patents and trademarks pending ​ 731 ​ — ​ 731 ​ 775 ​ — ​ 775 Total non-amortizable ​ 1,799 ​ — ​ 1,799 ​ 1,843 ​ — ​ 1,843 Total intangible assets ​ $ 112,364 ​ $ (22,945) ​ $ 89,419 ​ $ 44,821 ​ $ (25,282) ​ $ 19,539 ​ ​ ​ ​ ​ ​ Amortization expense of intangible assets for the three months ended March 31, 2024 was $3.0 million. Amortization expense of intangible assets for the three months ended March 31, 2023 was $1.0 million. Estimated amortization for intangible assets with definite lives for the remaining nine months of 2024, the next five years ended December 31, and thereafter, is as follows (in thousands): ​ ​ ​ ​ ​ 2024 remaining $ 11,520 2025 ​ 12,534 2026 ​ 12,336 2027 ​ 11,394 2028 ​ 11,283 2029 ​ 11,098 Thereafter ​ 17,455 Total ​ $ 87,620 ​

Strategic Investments

Strategic Investments	3 Months Ended
	Mar. 31, 2024
Strategic Investments
Strategic Investments	Note 7 - Strategic Investments Strategic investments include investments in a number of non-public technology driven companies. We account for strategic investments under the ASC 321 measurement alternative for equity securities without readily determinable fair values, as there are no quoted market prices for the investments. The investments are measured at cost less impairment, adjusted for observable price changes and are assessed for impairment whenever events or changes in circumstances indicate that the fair value may be less than its carrying value. ​ In conjunction with certain of our strategic investments, we have the ability to commit additional capital over time through warrants and call options; for some investments, the exercisability and exercise prices are conditional on the achievement of certain performance metrics. ​ The following tables provide a roll-forward of the balance of strategic investments (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, 2024 ​ Three Months Ended March 31, 2023 ​ Strategic investments Warrants ​ Call options Total Strategic investments Warrants ​ Call options ​ ​ Total Balance, beginning of period ​ $ 212,996 ​ $ 1,501 ​ $ 17,233 ​ $ 231,730 ​ $ 277,676 ​ $ 1,654 ​ $ 17,233 ​ $ 296,563 Investments ​ ​ 9,128 ​ ​ — ​ ​ — ​ ​ 9,128 ​ ​ — ​ ​ — ​ ​ — ​ ​ — Fair value adjustments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Realized gains ​ ​ 45,162 ​ ​ — ​ ​ — ​ ​ 45,162 ​ ​ — ​ ​ — ​ ​ — ​ ​ — Realized losses ​ ​ — ​ ​ — ​ ​ (2,870) ​ ​ (2,870) ​ ​ — ​ ​ — ​ ​ — ​ ​ — Unrealized gains ​ ​ 74,784 ​ ​ 855 ​ ​ — ​ ​ 75,639 ​ ​ — ​ ​ — ​ ​ — ​ ​ — Exercises ​ ​ (61,962) ​ ​ — ​ ​ (1,330) ​ ​ (63,292) ​ ​ — ​ ​ — ​ ​ — ​ ​ — Balance, end of period ​ $ 280,108 ​ $ 2,356 ​ $ 13,033 ​ $ 295,497 ​ $ 277,676 ​ $ 1,654 ​ $ 17,233 ​ $ 296,563 ​ In January 2024, the Company acquired the remaining outstanding stock of a strategic investment. The Company’s existing interest had a fair value at acquisition date of $63.3 million which resulted in a non-taxable gain of $42.3 million. For additional information on the business combination, refer to Note 16. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Inception to date ​ Strategic investments Warrants ​ Call options Total Investments ​ $ 133,626 ​ ​ 4,222 ​ ​ 17,233 ​ $ 155,081 Fair value adjustments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Realized gains ​ ​ 57,474 ​ ​ — ​ ​ — ​ ​ 57,474 Realized losses ​ ​ — ​ ​ — ​ ​ (2,870) ​ ​ (2,870) Unrealized gains ​ ​ 149,601 ​ ​ 29,928 ​ ​ — ​ ​ 179,529 Unrealized losses and impairments ​ ​ (82,304) ​ ​ (1,705) ​ ​ — ​ ​ (84,009) Exercises ​ ​ 36,257 ​ ​ (30,089) ​ ​ (1,330) ​ ​ 4,838 Sales ​ ​ (14,546) ​ ​ — ​ ​ — ​ ​ (14,546) Balance, end of period ​ $ 280,108 ​ $ 2,356 ​ $ 13,033 ​ $ 295,497 ​

Accrued Liabilities

Accrued Liabilities	3 Months Ended
	Mar. 31, 2024
Accrued Liabilities
Accrued Liabilities	Note 8 - Accrued Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2024 December 31, 2023 Accrued salaries, commissions, benefits and bonus ​ $ 35,997 ​ $ 125,636 Accrued income and other taxes ​ 22,392 ​ 5,784 Accrued inventory in transit ​ ​ 20,944 ​ ​ 12,197 Accrued professional, consulting and lobbying fees ​ 10,415 ​ 7,377 Accrued warranty expense ​ 6,286 ​ 7,374 Other accrued expenses ​ 31,381 ​ 29,862 Accrued liabilities ​ $ 127,415 ​ $ 188,230 ​

Convertible Senior Notes

Convertible Senior Notes	3 Months Ended
	Mar. 31, 2024
Convertible Senior Notes
Convertible Senior Notes	Note 9 – Convertible Senior Notes 2027 Notes ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2024 December 31, 2023 Principal $ 690,000 ​ $ 690,000 Unamortized debt issuance costs ​ (12,105) ​ ​ (12,887) Convertible notes carrying amount, net $ 677,895 ​ $ 677,113 ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2024 December 31, 2023 2027 Notes $ 1,006.0 ​ $ 873.3 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ 2024 2023 Contractual interest expense $ 863 ​ $ 863 Amortization of debt issuance costs ​ 782 ​ ​ 756 Total interest expense $ 1,645 ​ $ 1,619 ​ Note Hedge ​ ​ ​ ​ ​ ​ ​ ​ Purchase Price ​ Shares Purchased 2027 Note Hedge $ 194,994 ​ ​ 3,016,680 ​ dilution upon conversion of the Notes in the event that the market value per share of our common stock at the time of exercise is greater than the conversion price of the Notes. The Note Hedge is a separate transaction and is not part of the terms of the Notes. Holders of the Notes do not have any rights with respect to the Note Hedge. The Note Hedge does not impact earnings per share, as it was entered into to offset any dilution from the Notes. As of March 31, 2024, 3,016,680 shares remain subject to the Note Hedge. ​ Note Warrants ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Proceeds Shares ​ Strike Price ​ First Expiration 2027 Warrants $ 124,269 ​ ​ 3,016,680 ​ $ 338.86 ​ ​ March 15, 2028 ​ Separately, we entered into the Warrant transactions with certain investment banks, whereby we sold Warrants to acquire, subject to adjustment, the number of shares of our common stock shown in the table above. If the average market value per share of our common stock on each expiration date exceeds the strike price of the Warrants expiring on that day, such Warrants would have a dilutive effect on our earnings per share to the extent we report net income. According to the terms of the Warrants, the Warrants will be automatically exercised over a 60 -trading day period beginning on the first expiration date as set forth above.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2024
Income Taxes
Income Taxes	Note 10 - Income Taxes We file income tax returns for federal purposes and in many states, as well as in multiple foreign jurisdictions. Our tax filings remain subject to examination by applicable tax authorities for a certain length of time, generally three to four years, but can be up to ten years in some jurisdictions following the tax year to which these filings relate. Deferred Tax Assets Net deferred income tax assets at March 31, 2024, primarily include R&D capitalization net of amortization, deferred revenue, convertible debt net of amortization, accruals and reserves, and stock-based compensation expense, partially offset by accelerated depreciation expense, amortization of intangibles, unrealized gains on certain investments, and valuation allowance reserve. Our total net deferred tax assets at March 31, 2024 were $208.9 million. In preparing our condensed consolidated financial statements, management assesses the likelihood that its deferred tax assets will be realized from future taxable income. In evaluating our ability to recover our deferred income tax assets, management considers all available positive and negative evidence, including our operating results, ongoing tax planning and forecasts of future taxable income on a jurisdiction-by-jurisdiction basis. A valuation allowance is established if it is determined that it is more likely than not that some portion or all of the net deferred tax assets will not be realized. Management exercises significant judgment in determining our provisions for income taxes, our deferred tax assets and liabilities, and our future taxable income for purposes of assessing our ability to utilize any future tax benefit from our deferred tax assets. As of March 31, 2024, management continues to believe the positive evidence from projected future earnings outweighs the negative evidence and a valuation allowance is only needed on specific deferred tax assets. We have concluded that a valuation allowance is necessary against unrealized investment losses as well as transaction costs incurred in connection with certain investments. Additionally, we do have Arizona R&D tax credits expiring unutilized each year; therefore, management has concluded that it is more likely than not that our Arizona R&D deferred tax asset will not be realized, and a valuation allowance has been recorded against this net asset. In Australia, we have determined that sufficient deferred tax liabilities will reverse in order to realize all assets except one long-lived intangible where there is not an expectation that the asset may be realized. Therefore, we continue to recognize a partial valuation allowance for Australia. We complete R&D tax credit studies for each year that an R&D tax credit is claimed for federal and state income tax purposes. Management has made the determination that it is more likely than not that the full benefit of the R&D tax credit will not be sustained on examination and recorded a liability for unrecognized tax benefits of $26.1 million as of March 31, 2024. Should the unrecognized benefit of $26.1 million be recognized, our effective tax rate would be favorably impacted. Approximately $6.5 million of the unrecognized tax benefit associated with R&D credits has been netted against the R&D deferred tax asset. Effective Tax Rate Our overall effective tax rate for the three months ended March 31, 2024, after discrete period adjustments, was 19.6%. Before discrete adjustments, the estimated annual effective tax rate was 21.9%, which differs from the federal statutory rate primarily due to the impact of R&D tax credits and net gain related to an investment transaction not recognized for tax, offset by the executive compensation limitation under Internal Revenue Code (“IRC”) Section 162(m) on projected pre-tax income for the year. The effective tax rate was favorably impacted by a $4.1 million discrete tax benefit primarily associated with net windfalls related to stock-based compensation for RSUs and performance stock units (“PSUs”) that vested during the three months ended March 31, 2024.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2024
Stockholders' Equity
Stockholders' Equity	Note 11 - Stockholders’ Equity Restricted Stock Units The following table summarizes RSU activity for the three months ended March 31, 2024 (number of units and aggregate intrinsic value in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of Weighted Average Aggregate ​ ​ Units ​ Grant-Date Fair Value ​ Intrinsic Value Units outstanding, beginning of year 1,615 ​ $ 193.09 ​ Granted 478 ​ ​ 257.49 ​ Released (174) ​ ​ 213.88 ​ Forfeited (42) ​ ​ 186.93 ​ Units outstanding, end of period 1,877 ​ $ 207.73 ​ $ 587,321 ​ Aggregate intrinsic value represents our closing stock price on the last trading day of the period, which was $312.88 per share, multiplied by the number of RSUs outstanding. As of March 31, 2024, there was $321.8 million in unrecognized compensation costs related to RSUs under our stock plans for awards that are expected to vest. We expect to recognize the cost related to the RSUs over a weighted average period of 2.4 years. RSUs are settled when vesting requirements are met. Certain RSUs that vested in the three months ended March 31, 2024 were net-share settled such that we withheld shares to cover the employees’ tax obligations for the applicable income and other employment taxes, and remitted the cash to the appropriate taxing authorities. Total shares withheld related to RSUs were approximately 8,800 and had an aggregate value of $2.7 million on their respective vesting dates as determined by the closing stock price on such dates. Payments for the employees’ tax obligations are reflected as a financing activity within the condensed consolidated statements of cash flows. We record a liability for the tax withholding to be paid by us as a reduction to additional paid-in capital. On January 2, 2024, we granted an aggregate of 0.4 million RSUs to employees whose compensation was under a specified threshold. The RSUs generally vest in five annual installments from March 2024 through March 2028. For the three months ended March 31, 2024, there was $29.6 million of stock compensation expense related to these RSUs that was primarily recorded within cost of product and service sales. Performance Stock Units The following table summarizes PSU activity for the three months ended March 31, 2024 (number of units and aggregate intrinsic value in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of Weighted Average Aggregate ​ ​ Units ​ Grant-Date Fair Value ​ Intrinsic Value Units outstanding, beginning of year 394 ​ $ 201.61 ​ Granted 15 ​ 284.00 ​ Released (1) ​ 180.89 ​ Forfeited (7) ​ 93.32 ​ Units outstanding, end of period 401 ​ $ 206.75 ​ $ 125,533 ​ Aggregate intrinsic value represents our closing stock price on the last trading day of the period, which was $312.88 per share, multiplied by the number of PSUs outstanding. As of March 31, 2024, there was $51.2 million in unrecognized compensation costs related to PSUs under our stock plans for awards that are expected to vest. We expect to recognize the cost related to the PSUs over a weighted average period of 2.7 years. PSUs are settled when vesting requirements are met. 2024 CEO Performance Award and 2024 eXponential Stock Plan On October 14, 2023, our Board of Directors approved the 2024 eXponential Stock Plan (the “2024 Employee XSP”) and, on December 20, 2023, the Board approved a pool of 4,516,370 shares of our common stock to be reserved for grants of awards of eXponential Stock Units (“2024 XSUs”) to employees under the 2024 Employee XSP, including those who elected to have compensation withheld in order to participate in the 2024 Employee XSP. The 2024 XSUs are grants of performance-based RSUs, each with a term of approximately seven years , that vest in seven substantially equal tranches. Additionally, on December 18, 2023, the Compensation Committee granted to our Chief Executive Officer an award of 2024 XSUs covering 679,102 shares of our common stock (the “2024 CEO Performance Award”). Both the 2024 Employee XSP and the 2024 CEO Performance Award are subject to shareholder approval at our upcoming Annual Meeting of Shareholders. Dollar-denominated awards granted under the 2024 Employee XSP and the 2024 CEO Performance Award were converted to 2024 XSUs using a price per share of common stock of $220.88 , which reflects the 90 -day volume weighted average price per share as of the trading day preceding the grant date. Neither the 2024 Employee XSP nor the 2024 CEO Performance Award will have a financial statement impact unless and until either or both are approved by shareholders at our Annual Meeting of Shareholders in May 2024 . Stock Option Activity Options outstanding and exercisable for the period ended March 31, 2024 was 0.5 million with a weighted average exercise price of $28.58 and a weighted average remaining contractual life of 3.9 years. The aggregate intrinsic value was $150.9 million and represents the difference between the exercise price of the underlying stock options and the closing stock price on the last trading day of the period ended March 31, 2024, which was $312.88. There was no stock option activity for the three months ended March 31, 2024. Stock-based Compensation Expense The following table summarizes the composition of stock-based compensation expense for the three months ended March 31, 2024 and 2023 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ 2024 2023 Cost of product sales and service sales ​ $ 29,595 ​ $ 1,320 Sales, general and administrative expenses ​ 23,155 ​ 15,445 Research and development expenses ​ 22,365 ​ 17,585 Total stock-based compensation expense ​ $ 75,115 ​ $ 34,350 ​ Stock Incentive Plan In May 2022, our shareholders approved the Axon Enterprise, Inc. 2022 Stock Incentive Plan (the “2022 Plan”) authorizing an additional 2.5 million shares, plus remaining available shares under prior plans, for issuance under the 2022 Plan. Combined with the shares of our common stock available under our legacy stock incentive plans, there are 1.3 million shares of our common stock available for grant as of March 31, 2024. Stock Repurchase Plan In February 2016, our Board of Directors authorized a stock repurchase program to acquire up to $50.0 million of our outstanding common stock subject to stock market conditions and corporate considerations. During the three months ended March 31, 2024 and 2023, no common shares were purchased under the program. As of March 31, 2024, $16.3 million remains available under the plan for future purchases. Any future purchases will be discretionary. At-The-Market Equity Offering During the year ended December 31, 2023, we sold 467,594 shares of our common stock under our “at-the-market” equity offering program (the “ATM”). We generated approximately $96.4 million in aggregate gross proceeds from sales under the ATM. Aggregate net proceeds from the ATM were $94.7 million after deducting related expenses, including commissions to the sales agent and issuance costs of $1.7 million. No shares were sold during the three months ended March 31, 2024. We were authorized to sell up to a total of 3.0 million shares of our common stock under the ATM, with approximately 2.0 million shares remaining as of March 31, 2024. The ATM expired on April 20, 2024; however, we may amend and extend the program to facilitate the sales of the shares remaining from time to time

Line of Credit

Line of Credit	3 Months Ended
	Mar. 31, 2024
Line of Credit.
Line of Credit	Note 12 - Line of Credit In December 2022, we entered into a credit agreement that provides for a senior unsecured multi-currency revolving credit facility in an aggregate principal amount of up to $200.0 million, $30.0 million of which is available for the issuance of letters of credit. The credit agreement will mature on the earlier of December 15, 2027 or the date that is six months prior to the stated maturity date of the 2027 Notes unless the Notes have been redeemed, repurchased, converted or defeased in full. Additionally, the credit agreement has an accordion feature which allows for an increase in the total line of credit up to $300.0 million, in each lender’s sole discretion. At March 31, 2024 and December 31, 2023, there were no borrowings under the line. Under the terms of the line of credit, available borrowings are reduced by outstanding letters of credit. As of March 31, 2024 we had letters of credit outstanding of approximately $7.5 million under the facility and available borrowing of $192.5 million, excluding amounts available under the accordion feature. Advances under the line of credit bear interest at Term SOFR plus 1.25 to 1.75% per year determined in accordance with a pricing grid based on our net debt to earnings before interest expense, taxes, depreciation and amortization (“EBITDA”) ratio, which for the purposes of the credit agreement excludes investment interest income. “SOFR” is defined as a rate equal to the secured overnight financing rate as administered by the Federal Reserve Bank of New York or a successor administrator of the secured overnight financing rate. We are required to comply with a net leverage ratio, defined as consolidated total indebtedness to EBITDA, of no greater than 3.50 to 1.00 based upon a trailing four fiscal quarter period. At March 31, 2024, our net leverage ratio was (0.15) to 1.00. Additionally, we must comply with a consolidated interest coverage ratio, defined as EBITDA to consolidated interest expense, of no less than 3.50 to 1.00 based upon a trailing four fiscal quarter period. At March 31, 2024, our consolidated interest coverage ratio was 51.03 to 1.00.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2024
Commitments and Contingencies.
Commitments and Contingencies	Note 13 - Commitments and Contingencies Product Litigation As a manufacturer of weapons and other law enforcement tools used in high-risk field environments, we are often the subject of products liability litigation concerning the use of our products. We are currently named as a defendant in two lawsuits in which the plaintiffs allege either wrongful death or personal injury in situations in which a TASER CED was used by law enforcement officers in connection with arrests or training. While the facts vary from case to case, these product liability claims typically allege defective product design, manufacturing, and/or failure to warn. They seek compensatory and sometimes punitive damages, often in unspecified amounts. ​ We continue to aggressively defend all product litigation. As a general rule, it is our policy not to settle suspect injury or death cases. Exceptions are sometimes made where the settlement is strategically beneficial to us. Due to the confidential nature of our litigation strategy and the confidentiality agreements that are executed in the event of a settlement, we do not identify or comment on specific settlements by case or amount. Based on current information, we do not believe that the outcome of any such legal proceeding will have a material effect on our financial position, results of operations or cash flows. We are self-insured for the first $5.0 million of any product claim made after 2014. No judgment or settlement has ever exceeded this amount in any products liability case. We continue to maintain product liability insurance coverage, including an insurance policy fronting arrangement, above our self-insured retention with various limits depending on the policy period. ​ Antitrust Litigation and Inquiry On October 6, 2023, the U.S. Federal Trade Commission (“FTC”) unilaterally dismissed its administrative enforcement complaint against Axon without consent decree or other condition. That complaint alleged that Axon’s May 2018 acquisition of an insolvent body-worn camera competitor, Vievu LLC (“Vievu”), was anticompetitive. Now pending in the District of New Jersey (Case No. 3:23-cv-7182) is a purported class action based primarily on the same unproven, dismissed FTC allegations that the Vievu acquisition substantially lessened competition in the body-worn camera systems market for large U.S. law enforcement agencies. The Township of Howell (NJ), the City of Augusta (ME) and the City of Baltimore (MD) filed their consolidated amended complaint on November 27, 2023, alleging Sherman and Clayton Act violations against both Axon and Safariland LLC, which sold Vievu to Axon. The complaint further alleges that an ancillary holster supply agreement between Axon and Safariland constituted an illegal restraint of trade in the long-range energy weapon market. Axon denies the allegations and is vigorously defending the case. Motion practice is underway on Axon’s motion to dismiss and motion to strike class allegations, with rulings unlikely in 2024. Discovery is stayed pending these rulings. Axon also recently received a request for information from the Pennsylvania Office of Attorney General regarding this same consummated Vievu transaction. Axon intends to cooperate with any such investigation and work to resolve any concerns of the Commonwealth of Pennsylvania. General From time to time, we are notified that we may be a party to a lawsuit or that a claim is being made against us. After carefully assessing the claim, and assuming we determine that we are not at fault or we disagree with the damages or relief demanded, we vigorously defend any lawsuit filed against us. We record a liability when losses are deemed probable and reasonably estimable. When losses are deemed reasonably possible but not probable, we determine whether it is possible to provide an estimate of the ​ Based on our assessment of outstanding litigation and claims as of the date of these financial statements, we have determined that it is not reasonably possible that these losses, if any, from lawsuits will individually, or in the aggregate, materially affect our results of operations, financial condition or cash flows. However, the outcome of any litigation is inherently uncertain and there can be no assurance that any expense, liability or damages that may ultimately result from the resolution of these matters will be covered by our insurance or will not be in excess of amounts recognized or provided by insurance coverage and will not have a material adverse effect on our operating results, financial condition or cash flows. ​ Off-Balance Sheet Arrangements Under certain circumstances, we use letters of credit and surety bonds to guarantee our performance under various contracts, principally in connection with the installation and integration of Axon cameras and related technologies. Certain of our letters of credit and surety bonds have stated expiration dates with others being released as the contractual performance terms are completed. At March 31, 2024, we had outstanding letters of credit issued under our credit facility of $7.5 million that are expected to expire throughout 2024 and 2025.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	3 Months Ended
	Mar. 31, 2024
Accumulated Other Comprehensive Income (Loss).
Accumulated Other Comprehensive Income (Loss)	Note 14 – Accumulated Other Comprehensive Income (Loss) The following tables reflect the changes in accumulated other comprehensive income (loss), net of tax (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized Gains (Losses) ​ ​ ​ ​ ​ ​ ​ ​ ​ on Available-for-Sale ​ ​ Foreign Currency ​ ​ ​ ​ ​ Investments ​ ​ Translation ​ Total Balance, December 31, 2023 ​ $ (399) ​ ​ (10,280) ​ $ (10,679) Other comprehensive loss ​ ​ (106) ​ ​ (801) ​ ​ (907) Balance, March 31, 2024 ​ $ (505) ​ $ (11,081) ​ $ (11,586) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized Gains (Losses) ​ ​ ​ ​ ​ ​ ​ ​ ​ on Available-for-Sale ​ ​ Foreign Currency ​ ​ ​ ​ ​ Investments ​ ​ Translation ​ Total Balance, December 31, 2022 ​ $ (1,251) ​ $ (5,928) ​ $ (7,179) Other comprehensive income ​ ​ 184 ​ ​ 1,676 ​ ​ 1,860 Balance, March 31, 2023 ​ $ (1,067) ​ $ (4,252) ​ $ (5,319) ​

Segment Data

Segment Data	3 Months Ended
	Mar. 31, 2024
Segment Data
Segment Data	Note 15 - Segment Data Our operations comprise two reportable segments: the TASER segment and the Software and Sensors segment. In both segments, we report sales of products and services. Service revenue in both segments includes sales related to Axon Evidence. In the TASER segment, service revenue also includes digital subscription training content. In the Software and Sensors segment, service revenue also includes Axon Cloud revenue. Our Chief Executive Officer, who is our CODM, is not provided asset information, R&D expenses, or SG&A expenses by segment. During the three months ended March 31, 2024, the segment measure of profit and loss used by the CODM was changed from gross margin to adjusted gross margin, defined as gross margin before non-cash This change in segment measure allows the CODM to better assess operating results over time and is consistent with how the CODM evaluates our businesses. Accordingly, we have updated our segment disclosure for the three months ended March 31, 2023 to conform to the new presentation. Information relative to our reportable segments was as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ ​ 2024 ​ 2023 TASER segment net sales ​ $ 178,748 ​ $ 134,282 Software and Sensors segment net sales ​ ​ 281,988 ​ ​ 208,761 Total consolidated net sales ​ $ 460,736 ​ $ 343,043 ​ ​ ​ ​ ​ ​ ​ Adjusted gross margin ​ $ 291,327 ​ $ 205,422 Stock-based compensation expense ​ ​ 29,595 ​ ​ 1,320 Amortization of acquired intangible assets ​ ​ 1,686 ​ ​ — Gross margin ​ $ 260,046 ​ $ 204,102 Sales, general and administrative ​ ​ 152,669 ​ ​ 116,567 Research and development ​ ​ 91,097 ​ ​ 70,927 Interest income, net ​ ​ 10,374 ​ ​ 9,666 Other income, net ​ ​ 139,066 ​ ​ 15,610 Income before provision (benefit) for income taxes ​ $ 165,720 ​ $ 41,884 ​

Business Acquisition

Business Acquisition	3 Months Ended
	Mar. 31, 2024
Business Acquisition
Business Acquisition	Note 16 – Business Acquisition On January 31, 2024, we acquired the remaining 79.7% interest in Fusus, Inc. (“Fusus”), a global leader in real-time crime center technology, for total consideration transferred of approximately $241.3 million, subject to adjustment (the “step acquisition”). The acquisition expands our ability to aggregate live video, data and sensor feeds, which enhances situational awareness and investigative capabilities for our customers in public safety, education and enterprise. Total transaction costs related to the acquisition were $3.5 million for the period ending March 31, 2024. These transaction costs were expensed as incurred in selling, general and administrative expenses (“SG&A”) in our condensed consolidated statements of operations. Our existing 20.3% interest had a fair value at the acquisition date of $63.3 million, which resulted in a non-taxable gain of $42.3 million. The gain is recorded in other income, net in our condensed consolidated statement of operations for the period ending March 31, 2024. Prior to the step acquisition, the fair value of the previously held investment was determined using Level 3 valuation techniques, which include inputs to the valuation methodology that are considered unobservable and significant to the fair value measurement. The purchase price allocation is subject to revision during the measurement period pending final valuation procedures and related calculations. Based on the purchase price allocation, we recorded $250.7 million of goodwill, $72.9 million of identifiable intangible assets, and $8.1 million in net tangible liabilities, excluding deferred taxes. We recorded a net deferred tax liability of $10.9 million. With the assistance of third-party valuation experts, we calculated the fair values of intangible assets using the multi-period excess earnings method for the acquired developed technology and the with and without method for customer relationships. The weighted average amortization period of the acquired intangible assets was 7.5 years. The goodwill generated from the acquisition is primarily attributable to synergies that are expected to be achieved from the integration of the business and is not deductible for tax purposes. Following the acquisition, the consolidated results of Fusus are included in the Company’s Software and Sensors operating segment.

Subsequent Event

Subsequent Event	3 Months Ended
	Mar. 31, 2024
Subsequent Event
Subsequent Event	Note 17 – Subsequent Event On April 30, 2024, we entered into a definitive agreement to acquire the remaining outstanding stock of Dedrone Holdings, Inc. (“Dedrone”) for approximately $400.0 million, subject to customary purchase price adjustments. Axon currently holds an approximately 20% ownership interest in Dedrone. Dedrone is a market leader in air space security combining hardware sensors with software to detect, identify, track, and mitigate drones. The proposed acquisition represents alignment to our mission and positions Axon to accelerate the next generation of drone and air space solutions. The proposed transaction would be considered a “step acquisition” under GAAP whereby our ownership interest in Dedrone held before the proposed acquisition is required to be remeasured to fair value as of the closing date of the acquisition. Closing of the acquisition is contingent upon customary closing conditions, including regulatory approval.

Organization and Summary of S_2

Organization and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2024
Organization and Summary of Significant Accounting Policies
Basis of Presentation and Use of Estimates	Basis of Presentation and Use of Estimates These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC. Certain information related to our organization, significant accounting policies and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP” or “GAAP”) has been condensed or omitted. The accounting policies followed in the preparation of these unaudited condensed consolidated financial statements are consistent with those followed in our annual consolidated financial statements for the year ended December 31, 2023, as filed on Form 10-K. In the opinion of management, these unaudited condensed consolidated financial statements contain all material adjustments, consisting only of normal recurring adjustments, necessary to fairly state our financial position, results of operations and cash flows for the periods presented and the presentations and disclosures herein are adequate when read in conjunction with our Form 10-K for the year ended December 31, 2023. Our results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results to be expected for the full year (or any other period). Significant estimates and assumptions in these unaudited condensed consolidated financial statements include: ● product warranty reserves, ● inventory valuation, ● revenue recognition, ● reserve for expected credit losses, ● valuation of goodwill, intangible and long-lived assets, ● valuation of strategic investments, ● recognition, measurement and valuation of current and deferred income taxes, ● stock-based compensation, ● business combinations, and ● recognition and measurement of contingencies and accrued litigation expense. ​ The Company believes that estimates used in the preparation of these unaudited condensed consolidated financial statements are reasonable; however, actual results could differ materially from those estimates.
Segment Information	Segment Information Our operations comprise two reportable segments: the development, manufacture and sale of fully integrated hardware and cloud-based software solutions that enable law enforcement to capture, securely store, manage, share and analyze video and other digital evidence (collectively, the “Software and Sensors” segment); and the manufacture and sale of conducted energy devices (“CEDs”), batteries, accessories, extended warranties and other products and services (collectively, the “TASER” segment). In both segments, we report sales of products and services. Service revenue in both segments includes sales related to Axon Evidence. In the Software and Sensors segment, service revenue also includes other recurring cloud-hosted software revenue and related professional services. Collectively, this revenue is sometimes referred to as “Axon Cloud revenue.” Reportable segments are determined based on discrete financial information reviewed by our Chief Executive Officer, who is our chief operating decision maker (“CODM”). We organize and review operations based on products and services, and currently there are no operating segments that are aggregated. We perform an analysis of our reportable segments at least annually. Additional information related to our business segments is summarized in Note 15.
Geographic Information and Major Customers / Suppliers	Geographic Information and Major Customers / Suppliers For the three months ended March 31, 2024 and March 31, 2023, no individual country outside the United States represented more than 10% of total net sales. Individual sales transactions in the international market are generally larger and occur more intermittently than in the domestic market due to the profile of our customers. For the three months ended March 31, 2024 and March 31, 2023, no customer represented more than 10% of total net sales. At March 31, 2024 and December 31, 2023, no customer represented more than 10% of the aggregate balance of accounts and notes receivable and contract assets. We currently purchase both off-the-shelf and custom components, including finished circuit boards, injection-molded plastic components, small machined parts, custom cartridge components, electronic components and off-the-shelf sub-assemblies from suppliers located in the United States, China, Mexico, Republic of Korea, Taiwan and Vietnam. We may source from other countries as well. Although we currently obtain many of these components from single source suppliers, we own substantially all of the injection molded component tooling, designs and test fixtures used in their production for all custom components. As a result, we believe we could obtain alternative suppliers in most cases. Although we have experienced supply chain disruptions relating to materials and port constraints, we have remained focused on closely managing our supply chain. We continue to bolster our strategic relationships in our supply chain, identifying secondary/alternate sourcing, adjusting build plans accordingly, and building in logistic modes in support of our increasing demand while working to minimize disruption to customers. We acquire most of our components on a purchase order basis and do not currently have significant long-term purchase contracts with most component suppliers.
Income per Common Share	Income per Common Share Basic income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the periods presented. Diluted income per share reflects the potential dilution from outstanding stock options and unvested restricted stock units (“RSUs”). The effects of outstanding stock options, unvested RSUs, our 0.50% convertible senior notes due 2027 (the “Notes” or “2027 Notes”), and warrants to acquire shares of our common stock (the “Warrants” or “2027 Warrants”) are excluded from the computation of diluted net income per share in periods in which the effect would be antidilutive. The calculation of the weighted average number of shares outstanding and earnings per share are as follows (in thousands except per share data): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ 2024 2023 Numerator for basic and diluted earnings per share: ​ ​ Net income ​ $ 133,218 ​ $ 45,139 Denominator: ​ ​ Weighted average shares outstanding ​ 75,355 ​ 72,638 Dilutive effect of stock-based awards ​ 1,243 ​ 1,242 Dilutive effect of 2027 Notes ​ ​ 534 ​ ​ — Diluted weighted average shares outstanding ​ 77,132 ​ 73,880 ​ ​ ​ ​ ​ ​ ​ Net income per common share: ​ ​ ​ ​ Basic ​ $ 1.77 ​ $ 0.62 Diluted ​ $ 1.73 ​ $ 0.61 ​ Potentially dilutive securities that are not included in the calculation of diluted net income per share because doing so would be antidilutive are as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ 2024 2023 Stock-based awards ​ 308 ​ 1,469 2027 Notes ​ 2,483 ​ 3,017 2027 Warrants ​ 3,017 ​ 3,017 Total potentially dilutive securities ​ ​ 5,808 ​ 7,503 ​ For additional information regarding our 2027 Notes, refer to Note 9. ​
Warranty Reserves	Warranty Reserves We warranty our CEDs, Axon cameras and certain related accessories from manufacturing defects on a limited basis for a period of one year after purchase and, thereafter, will replace any defective unit for a fee. The company estimates and records a liability for standard warranty at the time products are sold. The estimates are based on historical experience and reflect management’s best estimates of costs to be incurred over the warranty period. Adjustments may be required when actual or projected costs differ. Variations in component failure rates, repair costs and the point of failure within the product life cycle are key drivers that impact our periodic re-assessment of the warranty liability. Revenue related to separately priced extended warranties is initially recorded as deferred revenue at its allocated amount and subsequently recognized as net sales on a straight-line basis over the warranty service period. Costs related to extended warranties are charged to cost of product and service sales when the costs become probable and can be reasonably estimated. Changes in our estimated product warranty liabilities were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ 2024 ​ 2023 Balance, beginning of period ​ $ 7,374 ​ $ 811 Utilization of reserve ​ (2,207) ​ (438) Warranty expense ​ 1,119 ​ 2,928 Balance, end of period ​ $ 6,286 ​ $ 3,301
Fair Value Measurements and Financial Instruments	Fair Value Measurements and Financial Instruments We use the fair value framework that prioritizes the inputs to valuation techniques for measuring financial assets and liabilities measured on a recurring basis and for non-financial assets and liabilities when these items are re-measured. Fair value is considered to be the exchange price in an orderly transaction between market participants, to sell an asset or transfer a liability at the measurement date. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. We categorize each of our fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are: ● Level 1 – Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured. ● Level 2 – Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and/or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets are Level 2 valuation techniques. ● Level 3 – Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect our own assumptions about inputs that market participants would use in pricing an asset or liability. We have cash equivalents and investments, which at March 31, 2024 comprised money market funds, corporate bonds, term deposits, U.S. government bonds, agency bonds and U.S. Treasury bills Cash equivalents and investments at December 31, 2023 also included commercial paper and U.S. Treasury inflation-protected securities. ​ We have an investment in marketable securities, for which c hanges in fair value are recorded in the condensed consolidated statement of operations as unrealized gain or (loss) on marketable securities, which is included in other income, net. ​ We have strategic investments in various unconsolidated affiliates as of March 31, 2024. The estimated fair value of the investments was determined based on Level 3 inputs. In determining the estimated fair value of our strategic investments in privately held companies, we utilize observable data available to us as discussed further in Note 7. ​ The fair value of our 2027 Notes is determined based on the closing trading price per $1,000 of the Notes as of the last day of trading for the period. We consider the fair value of the Notes at March 31, 2024 to be a Level 2 measurement as they are not publicly traded. The fair value of the Notes is primarily affected by the trading price of our common stock and market interest rates. ​ Our financial instruments also include accounts and notes receivable, accounts payable and accrued liabilities. Due to the short-term nature of these instruments, their fair values approximate their carrying values on the condensed consolidated balance sheet.
Restricted Cash	Restricted Cash Restricted cash balances of $2.1 million as of March 31, 2024 and December 31, 2023, respectively, primarily relate to funds held in an international bank account for a country in which we are required to maintain a minimum balance to operate. As of March 31, 2024, approximately $2.0 million was included in prepaid expenses and other assets on our consolidated balance sheet, with the remainder in other long-term assets.
Valuation of Goodwill, Intangibles and Long-lived Assets	Valuation of Goodwill, Intangibles and Long-lived Assets We evaluate whether events and circumstances have occurred that indicate the remaining estimated useful life of long-lived assets and identifiable intangible assets, excluding goodwill and intangible assets with indefinite useful lives, may warrant revision or that the remaining balance of these assets may not be recoverable. Such events and circumstances could include a change in the product mix, a change in the way products are created, produced or delivered, or a significant change in the way products are branded and marketed. In performing the review for recoverability, we estimate the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. The amount of the impairment loss, if impairment exists, is calculated based on the excess of the carrying amounts of the assets over their estimated fair values computed using discounted cash flows.
Business Combinations	Business Combinations Acquired businesses are included in the consolidated financial statements from the date we gain control of the business. We recognize, separately from goodwill, the identifiable assets acquired and liabilities assumed at their estimated acquisition-date fair values. Our estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, we may record qualifying adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. In addition, uncertain tax positions, tax-related valuation allowances and pre-acquisition contingencies are initially recorded in connection with a business combination as of the acquisition date. We continue to collect information and reevaluate these estimates and assumptions quarterly and record any qualifying adjustments to our preliminary estimates to goodwill provided that we are within the measurement period. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to our consolidated statement of operations. ​ In the event that we acquire an entity in which we previously held an existing ownership interest, the difference between the fair value of the interest as of the acquisition date and the carrying value of the interest is recorded as a gain or loss within other income, net, in the consolidated statement of operations. Preexisting relationships subject to termination as a result of consummating an acquisition may require the recognition of a gain or loss upon settlement, which is recognized within income (loss) from operations on the consolidated statement of operations. All third-party transaction-related costs are recognized as expense in the period in which they are incurred.
Recently Issued Accounting Guidance and Disclosure Rules	Recently Issued Accounting Guidance and Disclosure Rules In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 requires annual and interim disclosures that are expected to improve reportable segment disclosures, primarily through enhanced disclosures about significant segment expenses. The new standard is effective for our Annual Report on Form 10-K for the year ending December 31, 2024, and subsequent interim periods, with early adoption permitted. We are currently evaluating the impact of this update on our consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax. The provisions of ASU 2023-09 are effective for our Annual Report on Form 10-K for the year ending December 31, 2025, with early adoption permitted. We are currently evaluating the impact of this update on our consolidated financial statements. In March 2024, the SEC adopted final rules under SEC Release No. 34-99678 and No. 33-11275, The Enhancement and Standardization of Climate-Related Disclosures for Investors
Reclassification of Prior Year Presentation	Reclassification of Prior Year Presentation Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications are not material and had no effect on the reported results of operations.

Organization and Summary of S_3

Organization and Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2024
Organization and Summary of Significant Accounting Policies
Schedule of weighted average number of shares outstanding and earnings per share	The calculation of the weighted average number of shares outstanding and earnings per share are as follows (in thousands except per share data): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ 2024 2023 Numerator for basic and diluted earnings per share: ​ ​ Net income ​ $ 133,218 ​ $ 45,139 Denominator: ​ ​ Weighted average shares outstanding ​ 75,355 ​ 72,638 Dilutive effect of stock-based awards ​ 1,243 ​ 1,242 Dilutive effect of 2027 Notes ​ ​ 534 ​ ​ — Diluted weighted average shares outstanding ​ 77,132 ​ 73,880 ​ ​ ​ ​ ​ ​ ​ Net income per common share: ​ ​ ​ ​ Basic ​ $ 1.77 ​ $ 0.62 Diluted ​ $ 1.73 ​ $ 0.61
Schedule of potentially dilutive securities excluded in calculation of diluted net income per share	Potentially dilutive securities that are not included in the calculation of diluted net income per share because doing so would be antidilutive are as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ 2024 2023 Stock-based awards ​ 308 ​ 1,469 2027 Notes ​ 2,483 ​ 3,017 2027 Warrants ​ 3,017 ​ 3,017 Total potentially dilutive securities ​ ​ 5,808 ​ 7,503
Summary of changes in our estimated warranty reserve	Changes in our estimated product warranty liabilities were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ 2024 ​ 2023 Balance, beginning of period ​ $ 7,374 ​ $ 811 Utilization of reserve ​ (2,207) ​ (438) Warranty expense ​ 1,119 ​ 2,928 Balance, end of period ​ $ 6,286 ​ $ 3,301

Revenues (Tables)

Revenues (Tables)	3 Months Ended
	Mar. 31, 2024
Revenues.
Summary of Revenue by Product and Service Offering and Geography	The following tables present our revenues by primary product and service offering (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, 2024 ​ Three Months Ended March 31, 2023 ​ ​ ​ Software and ​ ​ ​ ​ Software and ​ ​ ​ ​ TASER ​ Sensors ​ Total ​ TASER ​ Sensors ​ Total TASER Devices (Professional) ​ $ 98,676 ​ ​ — ​ $ 98,676 ​ $ 67,472 ​ $ — ​ $ 67,472 Cartridges ​ 56,198 ​ ​ — ​ ​ 56,198 ​ 46,800 ​ ​ — ​ ​ 46,800 Axon Evidence and Cloud Services ​ 12,221 ​ ​ 175,458 ​ ​ 187,679 ​ 7,201 ​ ​ 118,314 ​ ​ 125,515 Extended Warranties ​ 8,526 ​ ​ 18,474 ​ ​ 27,000 ​ 7,670 ​ ​ 14,085 ​ ​ 21,755 Axon Body Cameras and Accessories ​ — ​ ​ 51,205 ​ ​ 51,205 ​ — ​ ​ 38,797 ​ ​ 38,797 Axon Fleet Systems ​ — ​ ​ 28,387 ​ ​ 28,387 ​ — ​ ​ 32,972 ​ ​ 32,972 Other (1) (2) ​ 3,127 ​ ​ 8,464 ​ ​ 11,591 ​ 5,139 ​ ​ 4,593 ​ ​ 9,732 Total ​ $ 178,748 ​ $ 281,988 ​ $ 460,736 ​ $ 134,282 ​ $ 208,761 ​ $ 343,043 ​ ​ (1) TASER segment “Other” includes smaller categories, such as Virtual Reality (“VR”) hardware, weapons training revenue such as revenue associated with our Master Instructor School, and TASER consumer device sales. (2) Software and Sensors segment “Other” includes revenue from items including Signal Sidearm, Interview Room, Axon Air and other sensors and equipment. ​ The following table presents our revenues disaggregated by geography (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ ​ ​ ​ 2024 ​ ​ 2023 ​ ​ United States $ 392,406 85 % ​ $ 290,938 85 % ​ Other countries ​ 68,330 15 ​ ​ 52,105 15 ​ ​ Total ​ $ 460,736 100 % ​ $ 343,043 100 % ​
Summary of contract with customer, assets and liabilities	The following table presents our contract assets, contract liabilities and certain information related to these balances as of and for the three months ended March 31, 2024 (in thousands): ​ ​ ​ ​ ​ ​ March 31, 2024 Contract assets, net ​ $ 354,381 Contract liabilities (deferred revenue) ​ 810,282 Revenue recognized in the period from: ​ Amounts included in contract liabilities at the beginning of the period ​ 186,485 ​ Contract liabilities (deferred revenue) consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2024 ​ December 31, 2023 ​ Current Long-Term Total Current Long-Term Total Extended Warranty: ​ ​ ​ ​ ​ ​ ​ TASER ​ $ 14,877 ​ $ 18,802 ​ $ 33,679 ​ $ 14,773 ​ $ 18,828 ​ $ 33,601 Software and Sensors ​ 34,396 ​ 15,980 ​ 50,376 ​ 33,940 ​ 16,036 ​ 49,976 ​ ​ 49,273 ​ 34,782 ​ 84,055 ​ 48,713 ​ 34,864 ​ 83,577 Hardware: ​ ​ ​ ​ ​ ​ TASER ​ 54,368 ​ 33,613 ​ 87,981 ​ 42,464 ​ 29,689 ​ 72,153 Software and Sensors ​ 61,353 ​ 117,808 ​ 179,161 ​ 62,635 ​ 117,024 ​ 179,659 ​ ​ 115,721 ​ 151,421 ​ 267,142 ​ 105,099 ​ 146,713 ​ 251,812 Services: ​ ​ ​ ​ ​ ​ TASER ​ 11,808 ​ 2,183 ​ 13,991 ​ 7,939 ​ 3,983 ​ 11,922 Software and Sensors ​ 339,602 ​ 105,492 ​ 445,094 ​ 329,940 ​ 96,292 ​ 426,232 ​ ​ ​ 351,410 ​ ​ 107,675 ​ ​ 459,085 ​ ​ 337,879 ​ ​ 100,275 ​ ​ 438,154 Total ​ $ 516,404 ​ $ 293,878 ​ $ 810,282 ​ $ 491,691 ​ $ 281,852 ​ $ 773,543 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2024 ​ December 31, 2023 ​ Current Long-Term Total Current Long-Term Total TASER ​ $ 81,053 ​ $ 54,598 ​ $ 135,651 ​ $ 65,176 ​ $ 52,500 ​ $ 117,676 Software and Sensors ​ 435,351 ​ 239,280 ​ 674,631 ​ 426,515 ​ ​ 229,352 ​ ​ 655,867 Total ​ $ 516,404 ​ $ 293,878 ​ $ 810,282 ​ $ 491,691 ​ $ 281,852 ​ $ 773,543

Cash, Cash Equivalents and In_2

Cash, Cash Equivalents and Investments (Tables)	3 Months Ended
	Mar. 31, 2024
Cash, Cash Equivalents and Investments
Summary of Cash, Cash Equivalents, Marketable Securities, and Available-for-Sale Investments	The following tables summarize our cash, cash equivalents, marketable securities and available-for-sale investments at March 31, 2024 and December 31, 2023 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of March 31, 2024 ​ ​ ​ Gross Gross ​ ​ Cash and ​ ​ ​ ​ ​ ​ Amortized ​ Unrealized ​ Unrealized ​ ​ ​ ​ Cash ​ Marketable ​ Short-Term ​ ​ ​ Cost ​ Gains ​ Losses ​ Fair Value ​ Equivalents ​ Securities ​ Investments ​ Cash ​ $ 110,509 ​ ​ — ​ ​ — ​ $ 110,509 ​ ​ $ 110,509 ​ $ — ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 1: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Money market funds ​ 101,721 ​ ​ — ​ ​ — ​ 101,721 ​ ​ 101,721 ​ — ​ — ​ Agency bonds ​ 87,635 ​ ​ — ​ ​ (48) ​ 87,587 ​ ​ 81,640 ​ — ​ 5,947 ​ Treasury bills ​ ​ 310,446 ​ ​ 1 ​ ​ (441) ​ ​ 310,006 ​ ​ ​ — ​ ​ — ​ ​ 310,006 ​ U.S. Government ​ ​ 130,793 ​ ​ — ​ ​ (29) ​ ​ 130,764 ​ ​ ​ — ​ ​ — ​ ​ 130,764 ​ Marketable securities ​ ​ 90,000 ​ ​ 9,720 ​ ​ — ​ ​ 99,720 ​ ​ — ​ 99,720 ​ — ​ Subtotal ​ 720,595 ​ ​ 9,721 ​ (518) ​ 729,798 ​ ​ ​ 183,361 ​ ​ 99,720 ​ ​ 446,717 ​ Level 2: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Term deposits ​ ​ 211,729 ​ ​ — ​ ​ — ​ ​ 211,729 ​ ​ ​ 110,000 ​ ​ — ​ ​ 101,729 ​ Corporate bonds ​ ​ 11,752 ​ ​ 7 ​ ​ (19) ​ ​ 11,740 ​ ​ ​ — ​ ​ — ​ ​ 11,740 ​ Subtotal ​ ​ 223,481 ​ ​ 7 ​ ​ (19) ​ ​ 223,469 ​ ​ ​ 110,000 ​ ​ — ​ ​ 113,469 ​ Total ​ $ 1,054,585 ​ $ 9,728 ​ $ (537) ​ $ 1,063,776 ​ ​ $ 403,870 ​ $ 99,720 ​ $ 560,186 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2023 ​ ​ ​ Gross Gross ​ ​ Cash and ​ ​ ​ ​ ​ ​ Amortized ​ Unrealized ​ Unrealized ​ ​ ​ ​ Cash ​ Marketable ​ Short-Term ​ ​ ​ Cost ​ Gains ​ Losses ​ Fair Value ​ Equivalents ​ Securities ​ Investments ​ Cash ​ $ 406,743 ​ $ — ​ $ — ​ $ 406,743 ​ ​ $ 406,743 ​ $ — ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 1: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Money market funds ​ 1,470 ​ ​ — ​ — ​ 1,470 ​ ​ 1,470 ​ — ​ — ​ Agency bonds ​ 222,057 ​ ​ 2 ​ (174) ​ 221,885 ​ ​ 101,635 ​ — ​ 120,250 ​ U.S. Government ​ ​ 238,747 ​ ​ 120 ​ ​ (237) ​ ​ 238,630 ​ ​ ​ — ​ ​ — ​ ​ 238,630 ​ Treasury bills ​ ​ 148,063 ​ ​ 28 ​ ​ — ​ ​ 148,091 ​ ​ ​ 88,697 ​ ​ — ​ ​ 59,394 ​ Marketable securities ​ ​ 90,000 ​ ​ — ​ ​ (12,060) ​ ​ 77,940 ​ ​ — ​ 77,940 ​ — ​ Subtotal ​ 700,337 ​ ​ 150 ​ (12,471) ​ 688,016 ​ ​ ​ 191,802 ​ ​ 77,940 ​ ​ 418,274 ​ Level 2: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Term deposits ​ ​ 128,205 ​ ​ — ​ ​ — ​ ​ 128,205 ​ ​ ​ — ​ ​ — ​ ​ 128,205 ​ Corporate bonds ​ ​ 80,646 ​ ​ 8 ​ ​ (165) ​ ​ 80,489 ​ ​ ​ — ​ ​ — ​ ​ 80,489 ​ Treasury Inflation-Protected Securities ​ ​ 2,635 ​ ​ — ​ ​ (5) ​ ​ 2,630 ​ ​ ​ — ​ ​ — ​ ​ 2,630 ​ Commercial paper ​ ​ 14,456 ​ ​ — ​ ​ — ​ ​ 14,456 ​ ​ ​ — ​ ​ — ​ ​ 14,456 ​ Subtotal ​ ​ 225,942 ​ ​ 8 ​ ​ (170) ​ ​ 225,780 ​ ​ ​ — ​ ​ — ​ ​ 225,780 ​ Total ​ $ 1,333,022 ​ $ 158 ​ $ (12,641) ​ $ 1,320,539 ​ ​ $ 598,545 ​ $ 77,940 ​ $ 644,054 ​

Expected Credit Losses (Tables)

Expected Credit Losses (Tables)	3 Months Ended
	Mar. 31, 2024
Expected Credit Losses
Schedule of roll-forward of allowance for credit losses	The following table provides a roll-forward of the allowance for expected credit losses for finance receivables and off-balance-sheet exposures. The expected credit losses for receivables is deducted from the amortized cost basis of accounts receivable, contract assets and notes receivable to present the net amount expected to be collected (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, 2024 ​ ​ United States ​ Other countries ​ Total Balance, beginning of period ​ $ 3,369 ​ $ 597 ​ $ 3,966 Provision for expected credit losses ​ ​ 195 ​ ​ 22 ​ ​ 217 Amounts written off charged against the allowance ​ ​ (302) ​ ​ (51) ​ ​ (353) Other, including foreign currency translation ​ — ​ ​ 14 ​ 14 Balance, end of period ​ $ 3,262 ​ $ 582 ​ $ 3,844 ​ ​ ​ ​
Schedule of allowance for expected credit losses for each type of customer receivable	As of March 31, 2024 and December 31, 2023, the allowance for expected credit losses for each type of customer receivable and off-balance-sheet exposures were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2024 ​ December 31, 2023 Accounts receivable and notes receivable, current ​ $ 2,298 ​ $ 2,392 Contract assets, net ​ 1,516 ​ 1,516 Long-term notes receivable, net of current portion ​ 30 ​ 44 Other current liabilities ​ ​ — ​ ​ 14 Total allowance for expected credit losses on customer receivables ​ $ 3,844 ​ $ 3,966 ​

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Mar. 31, 2024
Inventory
Inventory	Inventory consisted of the following at March 31, 2024 and December 31, 2023 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2024 December 31, 2023 Raw materials ​ $ 107,121 ​ $ 104,112 Finished goods ​ 164,197 ​ 165,743 Total inventory ​ $ 271,318 ​ $ 269,855 ​

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2024
Goodwill and Intangible Assets
Schedule of Goodwill	The changes in the carrying amount of goodwill for the three months ended March 31, 2024 were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Software and ​ ​ ​ ​ TASER ​ Sensors ​ Total Balance, beginning of period ​ $ 2,984 ​ $ 54,961 ​ $ 57,945 Goodwill acquired ​ ​ — ​ ​ 250,653 ​ ​ 250,653 Purchase accounting adjustments ​ ​ — ​ ​ (231) ​ ​ (231) Foreign currency translation adjustments ​ (37) ​ 140 ​ 103 Balance, end of period ​ $ 2,947 ​ $ 305,523 ​ $ 308,470
Intangible Assets Other than goodwill	Intangible assets (other than goodwill) consisted of the following at March 31, 2024 and December 31, 2023 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2024 ​ December 31, 2023 ​ ​ Gross ​ ​ Net Gross ​ ​ Net ​ ​ Useful ​ Carrying ​ Accumulated ​ Carrying ​ Carrying ​ Accumulated ​ Carrying ​ ​ Life ​ Amount ​ Amortization ​ Amount ​ Amount ​ Amortization ​ Amount Amortizable (definite-lived) intangible assets: ​ ​ ​ ​ ​ Domain names 3 ​ $ 3,043 ​ ​ (2,205) ​ $ 838 ​ $ 3,043 ​ $ (2,128) ​ $ 915 Issued patents 5 ​ 3,147 ​ ​ (1,648) ​ 1,499 ​ 3,222 ​ (1,707) ​ 1,515 Trademarks 3 ​ 3,214 ​ ​ (935) ​ 2,279 ​ 1,333 ​ (817) ​ 516 Customer relationships 4 ​ 18,629 ​ ​ (2,719) ​ 15,910 ​ 5,530 ​ (3,620) ​ 1,910 Non-compete agreements 3 ​ — ​ ​ — ​ — ​ 448 ​ (448) ​ — Developed technology 3 ​ 82,532 ​ ​ (15,438) ​ 67,094 ​ 29,402 ​ (16,562) ​ 12,840 Total amortizable ​ 110,565 ​ (22,945) ​ 87,620 ​ 42,978 ​ (25,282) ​ 17,696 Non-amortizable (indefinite-lived) intangible assets: ​ ​ ​ ​ Trademarks ​ 1,068 ​ — ​ 1,068 ​ 1,068 ​ — ​ 1,068 Patents and trademarks pending ​ 731 ​ — ​ 731 ​ 775 ​ — ​ 775 Total non-amortizable ​ 1,799 ​ — ​ 1,799 ​ 1,843 ​ — ​ 1,843 Total intangible assets ​ $ 112,364 ​ $ (22,945) ​ $ 89,419 ​ $ 44,821 ​ $ (25,282) ​ $ 19,539
Estimated Amortization Expense of Intangible Assets	Estimated amortization for intangible assets with definite lives for the remaining nine months of 2024, the next five years ended December 31, and thereafter, is as follows (in thousands): ​ ​ ​ ​ ​ 2024 remaining $ 11,520 2025 ​ 12,534 2026 ​ 12,336 2027 ​ 11,394 2028 ​ 11,283 2029 ​ 11,098 Thereafter ​ 17,455 Total ​ $ 87,620 ​

Strategic Investments (Tables)

Strategic Investments (Tables)	3 Months Ended
	Mar. 31, 2024
Strategic Investments
Schedule of Roll-Forward of Strategic Investments	The following tables provide a roll-forward of the balance of strategic investments (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, 2024 ​ Three Months Ended March 31, 2023 ​ Strategic investments Warrants ​ Call options Total Strategic investments Warrants ​ Call options ​ ​ Total Balance, beginning of period ​ $ 212,996 ​ $ 1,501 ​ $ 17,233 ​ $ 231,730 ​ $ 277,676 ​ $ 1,654 ​ $ 17,233 ​ $ 296,563 Investments ​ ​ 9,128 ​ ​ — ​ ​ — ​ ​ 9,128 ​ ​ — ​ ​ — ​ ​ — ​ ​ — Fair value adjustments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Realized gains ​ ​ 45,162 ​ ​ — ​ ​ — ​ ​ 45,162 ​ ​ — ​ ​ — ​ ​ — ​ ​ — Realized losses ​ ​ — ​ ​ — ​ ​ (2,870) ​ ​ (2,870) ​ ​ — ​ ​ — ​ ​ — ​ ​ — Unrealized gains ​ ​ 74,784 ​ ​ 855 ​ ​ — ​ ​ 75,639 ​ ​ — ​ ​ — ​ ​ — ​ ​ — Exercises ​ ​ (61,962) ​ ​ — ​ ​ (1,330) ​ ​ (63,292) ​ ​ — ​ ​ — ​ ​ — ​ ​ — Balance, end of period ​ $ 280,108 ​ $ 2,356 ​ $ 13,033 ​ $ 295,497 ​ $ 277,676 ​ $ 1,654 ​ $ 17,233 ​ $ 296,563 ​ In January 2024, the Company acquired the remaining outstanding stock of a strategic investment. The Company’s existing interest had a fair value at acquisition date of $63.3 million which resulted in a non-taxable gain of $42.3 million. For additional information on the business combination, refer to Note 16. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Inception to date ​ Strategic investments Warrants ​ Call options Total Investments ​ $ 133,626 ​ ​ 4,222 ​ ​ 17,233 ​ $ 155,081 Fair value adjustments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Realized gains ​ ​ 57,474 ​ ​ — ​ ​ — ​ ​ 57,474 Realized losses ​ ​ — ​ ​ — ​ ​ (2,870) ​ ​ (2,870) Unrealized gains ​ ​ 149,601 ​ ​ 29,928 ​ ​ — ​ ​ 179,529 Unrealized losses and impairments ​ ​ (82,304) ​ ​ (1,705) ​ ​ — ​ ​ (84,009) Exercises ​ ​ 36,257 ​ ​ (30,089) ​ ​ (1,330) ​ ​ 4,838 Sales ​ ​ (14,546) ​ ​ — ​ ​ — ​ ​ (14,546) Balance, end of period ​ $ 280,108 ​ $ 2,356 ​ $ 13,033 ​ $ 295,497

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	3 Months Ended
	Mar. 31, 2024
Accrued Liabilities
Schedule of Accrued liabilities	​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2024 December 31, 2023 Accrued salaries, commissions, benefits and bonus ​ $ 35,997 ​ $ 125,636 Accrued income and other taxes ​ 22,392 ​ 5,784 Accrued inventory in transit ​ ​ 20,944 ​ ​ 12,197 Accrued professional, consulting and lobbying fees ​ 10,415 ​ 7,377 Accrued warranty expense ​ 6,286 ​ 7,374 Other accrued expenses ​ 31,381 ​ 29,862 Accrued liabilities ​ $ 127,415 ​ $ 188,230 ​

Convertible Senior Notes (Table

Convertible Senior Notes (Tables)	3 Months Ended
	Mar. 31, 2024
Convertible Senior Notes
Schedule of net carrying amount of convertible senior notes	The following table summarizes the carrying value of the Notes (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2024 December 31, 2023 Principal $ 690,000 ​ $ 690,000 Unamortized debt issuance costs ​ (12,105) ​ ​ (12,887) Convertible notes carrying amount, net $ 677,895 ​ $ 677,113 ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2024 December 31, 2023 2027 Notes $ 1,006.0 ​ $ 873.3
Schedule of interest expense of convertible senior notes	Interest expense related to the Notes was as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ 2024 2023 Contractual interest expense $ 863 ​ $ 863 Amortization of debt issuance costs ​ 782 ​ ​ 756 Total interest expense $ 1,645 ​ $ 1,619
Schedule of convertible note hedge transaction	​ ​ ​ ​ ​ ​ ​ ​ Purchase Price ​ Shares Purchased 2027 Note Hedge $ 194,994 ​ ​ 3,016,680
Schedule of warrants details of convertible senior notes	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Proceeds Shares ​ Strike Price ​ First Expiration 2027 Warrants $ 124,269 ​ ​ 3,016,680 ​ $ 338.86 ​ ​ March 15, 2028

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2024
Stockholders' Equity
Summary of Restricted Stock Unit Activity	The following table summarizes RSU activity for the three months ended March 31, 2024 (number of units and aggregate intrinsic value in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of Weighted Average Aggregate ​ ​ Units ​ Grant-Date Fair Value ​ Intrinsic Value Units outstanding, beginning of year 1,615 ​ $ 193.09 ​ Granted 478 ​ ​ 257.49 ​ Released (174) ​ ​ 213.88 ​ Forfeited (42) ​ ​ 186.93 ​ Units outstanding, end of period 1,877 ​ $ 207.73 ​ $ 587,321
Summary of Performance Stock Unit Activity	The following table summarizes PSU activity for the three months ended March 31, 2024 (number of units and aggregate intrinsic value in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of Weighted Average Aggregate ​ ​ Units ​ Grant-Date Fair Value ​ Intrinsic Value Units outstanding, beginning of year 394 ​ $ 201.61 ​ Granted 15 ​ 284.00 ​ Released (1) ​ 180.89 ​ Forfeited (7) ​ 93.32 ​ Units outstanding, end of period 401 ​ $ 206.75 ​ $ 125,533
Reported Share-Based Compensation	The following table summarizes the composition of stock-based compensation expense for the three months ended March 31, 2024 and 2023 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ 2024 2023 Cost of product sales and service sales ​ $ 29,595 ​ $ 1,320 Sales, general and administrative expenses ​ 23,155 ​ 15,445 Research and development expenses ​ 22,365 ​ 17,585 Total stock-based compensation expense ​ $ 75,115 ​ $ 34,350

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (Tables)	3 Months Ended
	Mar. 31, 2024
Accumulated Other Comprehensive Income (Loss).
Summary of changes in accumulated other comprehensive income (loss), net of tax	The following tables reflect the changes in accumulated other comprehensive income (loss), net of tax (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized Gains (Losses) ​ ​ ​ ​ ​ ​ ​ ​ ​ on Available-for-Sale ​ ​ Foreign Currency ​ ​ ​ ​ ​ Investments ​ ​ Translation ​ Total Balance, December 31, 2023 ​ $ (399) ​ ​ (10,280) ​ $ (10,679) Other comprehensive loss ​ ​ (106) ​ ​ (801) ​ ​ (907) Balance, March 31, 2024 ​ $ (505) ​ $ (11,081) ​ $ (11,586) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized Gains (Losses) ​ ​ ​ ​ ​ ​ ​ ​ ​ on Available-for-Sale ​ ​ Foreign Currency ​ ​ ​ ​ ​ Investments ​ ​ Translation ​ Total Balance, December 31, 2022 ​ $ (1,251) ​ $ (5,928) ​ $ (7,179) Other comprehensive income ​ ​ 184 ​ ​ 1,676 ​ ​ 1,860 Balance, March 31, 2023 ​ $ (1,067) ​ $ (4,252) ​ $ (5,319) ​

Segment Data (Tables)

Segment Data (Tables)	3 Months Ended
	Mar. 31, 2024
Segment Data
Summary of Operational Information Relative to the Company's Reportable Segments	Information relative to our reportable segments was as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ ​ 2024 ​ 2023 TASER segment net sales ​ $ 178,748 ​ $ 134,282 Software and Sensors segment net sales ​ ​ 281,988 ​ ​ 208,761 Total consolidated net sales ​ $ 460,736 ​ $ 343,043 ​ ​ ​ ​ ​ ​ ​ Adjusted gross margin ​ $ 291,327 ​ $ 205,422 Stock-based compensation expense ​ ​ 29,595 ​ ​ 1,320 Amortization of acquired intangible assets ​ ​ 1,686 ​ ​ — Gross margin ​ $ 260,046 ​ $ 204,102 Sales, general and administrative ​ ​ 152,669 ​ ​ 116,567 Research and development ​ ​ 91,097 ​ ​ 70,927 Interest income, net ​ ​ 10,374 ​ ​ 9,666 Other income, net ​ ​ 139,066 ​ ​ 15,610 Income before provision (benefit) for income taxes ​ $ 165,720 ​ $ 41,884 ​

Organization and Summary of S_4

Organization and Summary of Significant Accounting Policies - Narrative (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2024 USD ($) customer country segment	Mar. 31, 2023 USD ($) country customer	Dec. 31, 2023 USD ($) customer	Dec. 31, 2022
Summary Of Significant Accounting Policy [Line Items]
Restricted cash balance	$ 2,100,000		$ 2,100,000
Restricted cash including prepaid expenses and other assets	2,000,000
Reserve for expected credit losses	3,844,000		3,966,000
Additional credit loss expense	217,000
Sales, general and administrative	$ 152,669,000	$ 116,567,000
Warranty period	1 year
Research and development costs	$ 91,097,000	70,927,000
Cash surrender value of corporate-owned life insurance policies	8,100,000		$ 7,600,000
Denomination of notes used for determination of fair value	$ 1,000
Number of reportable segments of company | segment	2
Recorded share-based compensation expense	$ 29,595,000	$ 1,320,000
Net Sales | Geographic Concentration Risk
Summary Of Significant Accounting Policy [Line Items]
Number of countries outside the U.S. representing more than 10% of total net sales | country	0	0
Net Sales | Customer Concentration Risk
Summary Of Significant Accounting Policy [Line Items]
Number of major customers | customer	0	0
Accounts and notes receivable and contract assets | Customer Concentration Risk
Summary Of Significant Accounting Policy [Line Items]
Number of major customers | customer	0		0
2027 Notes
Summary Of Significant Accounting Policy [Line Items]
Denomination of notes used for determination of fair value	$ 1,000		$ 1,000
Interest rate (as a percent)	0.50%			0.50%

Organization and Summary of S_5

Organization and Summary of Significant Accounting Policies - Weighted Average Number of Shares Outstanding and Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Numerator for basic and diluted earnings per share:
Net income	$ 133,218	$ 45,139
Denominator:
Weighted average shares outstanding - basic (in shares)	75,355	72,638
Dilutive effect of stock-based awards (in shares)	1,243	1,242
Dilutive effect of 2027 Notes (in shares)	534
Diluted weighted average shares outstanding (in shares)	77,132	73,880
Net income (loss) per common share:
Basic (in dollars per share)	$ 1.77	$ 0.62
Diluted (in dollars per share)	$ 1.73	$ 0.61

Organization and Summary of S_6

Organization and Summary of Significant Accounting Policies - Antidilutive Securities Excluded From Computation of EPS (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Antidilutive securities excluded from computation of earnings per share
Total potentially dilutive securities	5,808	7,503
Stock-based awards
Antidilutive securities excluded from computation of earnings per share
Total potentially dilutive securities	308	1,469
2027 Notes
Antidilutive securities excluded from computation of earnings per share
Total potentially dilutive securities	2,483	3,017
2027 Warrants
Antidilutive securities excluded from computation of earnings per share
Total potentially dilutive securities	3,017	3,017

Organization and Summary of S_7

Organization and Summary of Significant Accounting Policies - Summary of Changes in Estimated Warranty Reserve (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Movement in Standard and Extended Product Warranty
Balance, beginning of period	$ 7,374	$ 811
Utilization of reserve	(2,207)	(438)
Warranty expense	1,119	2,928
Balance, end of period	$ 6,286	$ 3,301

Revenues - Revenues by Products

Revenues - Revenues by Products and Service Offerings (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	$ 460,736	$ 343,043	$ 343,043
TASER Devices (Professional)
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	98,676		67,472
Cartridges
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	56,198		46,800
Axon Evidence and Cloud Services
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	187,679		125,515
Extended Warranties
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	27,000		21,755
Axon Body Cameras and Accessories
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	51,205		38,797
Axon Fleet Systems
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	28,387		32,972
Other
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	11,591		9,732
TASER
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	178,748	134,282	134,282
TASER | TASER Devices (Professional)
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	98,676		67,472
TASER | Cartridges
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	56,198		46,800
TASER | Axon Evidence and Cloud Services
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	12,221		7,201
TASER | Extended Warranties
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	8,526		7,670
TASER | Other
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	3,127		5,139
Software and Sensors
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	281,988	$ 208,761	208,761
Software and Sensors | Axon Evidence and Cloud Services
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	175,458		118,314
Software and Sensors | Extended Warranties
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	18,474		14,085
Software and Sensors | Axon Body Cameras and Accessories
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	51,205		38,797
Software and Sensors | Axon Fleet Systems
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	28,387		32,972
Software and Sensors | Other
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	$ 8,464		$ 4,593

Revenues - Revenues By Geograph

Revenues - Revenues By Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	$ 460,736	$ 343,043	$ 343,043
United States
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	392,406
Other countries
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	$ 68,330
Revenue from Contract with Customer | Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk (as a percentage)	100%
Revenue from Contract with Customer | Geographic Concentration Risk | United States
Disaggregation of Revenue [Line Items]
Concentration risk (as a percentage)	85%
Revenue from Contract with Customer | Geographic Concentration Risk | Other countries
Disaggregation of Revenue [Line Items]
Concentration risk (as a percentage)	15%

Revenues - Contract Assets, Con

Revenues - Contract Assets, Contract Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Revenues.
Contract assets, net	$ 354,381
Contract liabilities (deferred revenue)	810,282	$ 773,543
Revenue recognized in the period from:
Amounts included in contract liabilities at the beginning of the period	$ 186,485

Revenues - Summary of Deferred

Revenues - Summary of Deferred Revenue (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Disaggregation of Revenue [Line Items]
Current	$ 516,404	$ 491,691
Long-Term	293,878	281,852
Total	810,282	773,543
TASER
Disaggregation of Revenue [Line Items]
Current	81,053	65,176
Long-Term	54,598	52,500
Total	135,651	117,676
Software and Sensors
Disaggregation of Revenue [Line Items]
Current	435,351	426,515
Long-Term	239,280	229,352
Total	674,631	655,867
Warranty
Disaggregation of Revenue [Line Items]
Current	49,273	48,713
Long-Term	34,782	34,864
Total	84,055	83,577
Warranty | TASER
Disaggregation of Revenue [Line Items]
Current	14,877	14,773
Long-Term	18,802	18,828
Total	33,679	33,601
Warranty | Software and Sensors
Disaggregation of Revenue [Line Items]
Current	34,396	33,940
Long-Term	15,980	16,036
Total	50,376	49,976
Hardware
Disaggregation of Revenue [Line Items]
Current	115,721	105,099
Long-Term	151,421	146,713
Total	267,142	251,812
Hardware | TASER
Disaggregation of Revenue [Line Items]
Current	54,368	42,464
Long-Term	33,613	29,689
Total	87,981	72,153
Hardware | Software and Sensors
Disaggregation of Revenue [Line Items]
Current	61,353	62,635
Long-Term	117,808	117,024
Total	179,161	179,659
Services
Disaggregation of Revenue [Line Items]
Current	351,410	337,879
Long-Term	107,675	100,275
Total	459,085	438,154
Services | TASER
Disaggregation of Revenue [Line Items]
Current	11,808	7,939
Long-Term	2,183	3,983
Total	13,991	11,922
Services | Software and Sensors
Disaggregation of Revenue [Line Items]
Current	339,602	329,940
Long-Term	105,492	96,292
Total	$ 445,094	$ 426,232

Revenues - Remaining Performanc

Revenues - Remaining Performance Obligations (Details) $ in Billions	Mar. 31, 2024 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 7
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation to be recognized in the next twelve months (as a percentage)	15%
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation to be recognized in the next twelve months (as a percentage)	25%
Revenue, remaining performance obligation, expected timing of satisfaction, period	12 months
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2034-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period	10 years

Cash, Cash Equivalents and In_3

Cash, Cash Equivalents and Investments (Details) - USD ($) $ in Thousands, shares in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023	Dec. 31, 2021
Restricted Cash and Cash Equivalents Items [Line Items]
Amortized Cost	$ 1,054,585	$ 1,333,022
Gross Unrealized Gains	9,728	158
Gross Unrealized Losses	(537)	(12,641)
Fair Value	1,063,776	1,320,539
Cash and Cash Equivalents	403,870	598,545
Marketable Securities	99,720	77,940
Short-Term Investments	560,186	644,054
Debt securities, available-for-sale, unrealized Loss	531,500	420,400
Continuous unrealized loss position of available-for-sale investments, unrealized losses	25,200	138,800
Continuous unrealized loss position of available-for-sale investments, gross unrealized losses	100	300
Share Purchase Agreement with CLBT
Restricted Cash and Cash Equivalents Items [Line Items]
Marketable Securities			$ 90,000
Investment owned, shares held			9
Investment, type			Common Stock
Marketable securities, unrealized gain	21,800	38,700
Fair Value, Inputs, Level 1
Restricted Cash and Cash Equivalents Items [Line Items]
Amortized Cost	720,595	700,337
Gross Unrealized Gains	9,721	150
Gross Unrealized Losses	(518)	(12,471)
Fair Value	729,798	688,016
Cash and Cash Equivalents	183,361	191,802
Marketable Securities	99,720	77,940
Short-Term Investments	446,717	418,274
Fair Value, Inputs, Level 2
Restricted Cash and Cash Equivalents Items [Line Items]
Amortized Cost	223,481	225,942
Gross Unrealized Gains	7	8
Gross Unrealized Losses	(19)	(170)
Fair Value	223,469	225,780
Cash and Cash Equivalents	110,000
Short-Term Investments	113,469	225,780
Cash
Restricted Cash and Cash Equivalents Items [Line Items]
Amortized Cost	110,509	406,743
Fair Value	110,509	406,743
Cash and Cash Equivalents	110,509	406,743
Money market funds | Fair Value, Inputs, Level 1
Restricted Cash and Cash Equivalents Items [Line Items]
Amortized Cost	101,721	1,470
Fair Value	101,721	1,470
Cash and Cash Equivalents	101,721	1,470
Agency bonds | Fair Value, Inputs, Level 1
Restricted Cash and Cash Equivalents Items [Line Items]
Amortized Cost	87,635	222,057
Gross Unrealized Gains		2
Gross Unrealized Losses	(48)	(174)
Fair Value	87,587	221,885
Cash and Cash Equivalents	81,640	101,635
Short-Term Investments	5,947	120,250
Treasury bills | Fair Value, Inputs, Level 1
Restricted Cash and Cash Equivalents Items [Line Items]
Amortized Cost	310,446
Gross Unrealized Gains	1
Gross Unrealized Losses	(441)
Fair Value	310,006
Short-Term Investments	310,006
U.S. Government
Restricted Cash and Cash Equivalents Items [Line Items]
Amortized Cost	130,793
Gross Unrealized Losses	(29)
Fair Value	130,764
Short-Term Investments	130,764
Marketable securities | Fair Value, Inputs, Level 1
Restricted Cash and Cash Equivalents Items [Line Items]
Amortized Cost	90,000	90,000
Gross Unrealized Gains	9,720
Gross Unrealized Losses		(12,060)
Fair Value	99,720	77,940
Marketable Securities	99,720	77,940
Corporate bonds | Fair Value, Inputs, Level 2
Restricted Cash and Cash Equivalents Items [Line Items]
Amortized Cost		80,646
Gross Unrealized Gains		8
Gross Unrealized Losses		(165)
Fair Value		80,489
Short-Term Investments		80,489
Treasury bills | Fair Value, Inputs, Level 1
Restricted Cash and Cash Equivalents Items [Line Items]
Amortized Cost		148,063
Gross Unrealized Gains		28
Fair Value		148,091
Cash and Cash Equivalents		88,697
Short-Term Investments		59,394
Term deposits | Fair Value, Inputs, Level 2
Restricted Cash and Cash Equivalents Items [Line Items]
Amortized Cost	211,729	128,205
Fair Value	211,729	128,205
Cash and Cash Equivalents	110,000
Short-Term Investments	101,729	128,205
Corporate bonds | Fair Value, Inputs, Level 2
Restricted Cash and Cash Equivalents Items [Line Items]
Amortized Cost	11,752
Gross Unrealized Gains	7
Gross Unrealized Losses	(19)
Fair Value	11,740
Short-Term Investments	$ 11,740
Commercial paper | Fair Value, Inputs, Level 2
Restricted Cash and Cash Equivalents Items [Line Items]
Amortized Cost		14,456
Fair Value		14,456
Short-Term Investments		14,456
U.S. Government | Fair Value, Inputs, Level 1
Restricted Cash and Cash Equivalents Items [Line Items]
Amortized Cost		238,747
Gross Unrealized Gains		120
Gross Unrealized Losses		(237)
Fair Value		238,630
Short-Term Investments		238,630
Treasury Inflation-Protected Securities | Fair Value, Inputs, Level 2
Restricted Cash and Cash Equivalents Items [Line Items]
Amortized Cost		2,635
Gross Unrealized Losses		(5)
Fair Value		2,630
Short-Term Investments		$ 2,630

Expected Credit Losses (Details

Expected Credit Losses (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	$ 3,966
Provision for expected credit losses	217
Amounts written off charged against the allowance	(353)
Other, including foreign currency translation	14
Balance, end of period	3,844
United States
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	3,369
Provision for expected credit losses	195
Amounts written off charged against the allowance	(302)
Balance, end of period	3,262
Other countries
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	597
Provision for expected credit losses	22
Amounts written off charged against the allowance	(51)
Other, including foreign currency translation	14
Balance, end of period	$ 582

Expected Credit Losses - Type O

Expected Credit Losses - Type Of Customer Receivable (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Expected Credit Losses
Accounts receivable and notes receivable, current	$ 2,298	$ 2,392
Contract assets, net	1,516	1,516
Long-term notes receivable, net of current portion	30	44
Other current liabilities		14
Total allowance for expected credit losses on customer receivables	$ 3,844	$ 3,966

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Inventory
Raw materials	$ 107,121	$ 104,112
Finished goods	164,197	165,743
Total inventory	$ 271,318	$ 269,855

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Schedule of Goodwill (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)
Changes in carrying amount of goodwill
Balance, beginning of period	$ 57,945
Goodwill acquired	250,653
Purchase accounting adjustments	(231)
Foreign currency translation adjustments	103
Balance, end of period	308,470
TASER
Changes in carrying amount of goodwill
Balance, beginning of period	2,984
Foreign currency translation adjustments	(37)
Balance, end of period	2,947
Software and Sensors
Changes in carrying amount of goodwill
Balance, beginning of period	54,961
Goodwill acquired	250,653
Purchase accounting adjustments	(231)
Foreign currency translation adjustments	140
Balance, end of period	$ 305,523

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Definite-Lived Intangible Assets Other than Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Intangible Assets
Gross Carrying Amount	$ 110,565		$ 42,978
Accumulated Amortization	(22,945)		(25,282)
Total	87,620		17,696
Not amortized, Gross Carrying Amount	1,799		1,843
Intangible assets, Gross Carrying Amount	112,364		44,821
Intangible assets, Net Carrying Amount	89,419		19,539
Amortization expense of intangible assets	3,000	$ 1,000
Trademark
Intangible Assets
Not amortized, Gross Carrying Amount	1,068		1,068
Patents and trademarks pending
Intangible Assets
Not amortized, Gross Carrying Amount	731		775
Domain names
Intangible Assets
Gross Carrying Amount	3,043		3,043
Accumulated Amortization	(2,205)		(2,128)
Total	$ 838		915
Domain names | Minimum
Intangible Assets
Useful Life	3 years
Domain names | Maximum
Intangible Assets
Useful Life	10 years
Issued patents
Intangible Assets
Gross Carrying Amount	$ 3,147		3,222
Accumulated Amortization	(1,648)		(1,707)
Total	$ 1,499		1,515
Issued patents | Minimum
Intangible Assets
Useful Life	5 years
Issued patents | Maximum
Intangible Assets
Useful Life	25 years
Trademarks
Intangible Assets
Gross Carrying Amount	$ 3,214		1,333
Accumulated Amortization	(935)		(817)
Total	$ 2,279		516
Trademarks | Minimum
Intangible Assets
Useful Life	3 years
Trademarks | Maximum
Intangible Assets
Useful Life	15 years
Customer relationships
Intangible Assets
Gross Carrying Amount	$ 18,629		5,530
Accumulated Amortization	(2,719)		(3,620)
Total	$ 15,910		1,910
Customer relationships | Minimum
Intangible Assets
Useful Life	4 years
Customer relationships | Maximum
Intangible Assets
Useful Life	10 years
Non-compete agreements
Intangible Assets
Gross Carrying Amount			448
Accumulated Amortization			(448)
Non-compete agreements | Minimum
Intangible Assets
Useful Life	3 years
Non-compete agreements | Maximum
Intangible Assets
Useful Life	4 years
Developed technology
Intangible Assets
Gross Carrying Amount	$ 82,532		29,402
Accumulated Amortization	(15,438)		(16,562)
Total	$ 67,094		$ 12,840
Developed technology | Minimum
Intangible Assets
Useful Life	3 years
Developed technology | Maximum
Intangible Assets
Useful Life	8 years

Goodwill and Intangible asset_4

Goodwill and Intangible assets - Estimated Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Goodwill and Intangible Assets
2024 remaining	$ 11,520
2025	12,534
2026	12,336
2027	11,394
2028	11,283
2029	11,098
Thereafter	17,455
Total	$ 87,620	$ 17,696

Strategic Investments (Details)

Strategic Investments (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		43 Months Ended	47 Months Ended
	Jan. 31, 2024	Mar. 31, 2024	Mar. 31, 2023	Sep. 30, 2023	Jan. 31, 2024
Equity Securities without Readily Determinable Fair Value [Line Items]
Balance, beginning of period	$ 231,730	$ 231,730
Investments		9,128			$ 155,081
Fair value adjustments, Realized gains		45,162			57,474
Fair value adjustments, Realized losses		(2,870)			(2,870)
Fair value adjustments, Unrealized gains		75,639			179,529
Fair value adjustments, Unrealized losses and impairments					(84,009)
Fair value adjustments, Exercises		(63,292)			4,838
Fair value, Sales					(14,546)
Balance, end of period	295,497	295,497	$ 1,654		$ 295,497
Gain on acquisition	42,300
Acquisition 1
Equity Securities without Readily Determinable Fair Value [Line Items]
Fair value	63,300
Strategic investments
Equity Securities without Readily Determinable Fair Value [Line Items]
Balance, beginning of period	212,996	212,996
Investments		9,128		$ 133,626
Fair value adjustments, Realized gains		45,162		57,474
Fair value adjustments, Unrealized gains		74,784		149,601
Fair value adjustments, Unrealized losses and impairments				(82,304)
Fair value adjustments, Exercises		(61,962)		36,257
Fair value, Sales				(14,546)
Balance, end of period		280,108		280,108
Warrants
Equity Securities without Readily Determinable Fair Value [Line Items]
Balance, beginning of period	1,501	1,501
Investments				4,222
Fair value adjustments, Unrealized gains		855		29,928
Fair value adjustments, Unrealized losses and impairments				(1,705)
Fair value adjustments, Exercises				(30,089)
Balance, end of period		2,356		2,356
Call options
Equity Securities without Readily Determinable Fair Value [Line Items]
Balance, beginning of period	$ 17,233	17,233
Investments				17,233
Fair value adjustments, Realized losses		(2,870)		(2,870)
Fair value adjustments, Exercises		(1,330)		(1,330)
Balance, end of period		13,033		$ 13,033
Strategic Investments And Warrants
Equity Securities without Readily Determinable Fair Value [Line Items]
Unrealized gain on investments		$ 75,600

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Accrued Liabilities
Accrued salaries, commissions, benefits and bonus	$ 35,997	$ 125,636
Accrued income and other taxes	22,392	5,784
Accrued inventory in transit	20,944	12,197
Accrued professional, consulting and lobbying fees	10,415	7,377
Accrued warranty expense	6,286	7,374	$ 3,301	$ 811
Other accrued expenses	31,381	29,862
Accrued liabilities	$ 127,415	$ 188,230

Convertible Senior Notes - Narr

Convertible Senior Notes - Narrative (Details) - 2027 Notes - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2022	Dec. 31, 2023
Senior Convertible Notes
Aggregate principal amount	$ 690,000	$ 690,000	$ 690,000
Interest rate (as a percent)	0.50%	0.50%
Issuance costs		$ 16,200
Net proceeds from issuance of notes		$ 673,800
Effective interest rate		0.99%
Repurchase price (as percentage)	100%
Maximum
Senior Convertible Notes
Additional principal amount purchase option		$ 90,000

Convertible Senior Notes - Net

Convertible Senior Notes - Net carrying amount (Details) - 2027 Notes - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Senior Convertible Notes
Principal	$ 690,000	$ 690,000	$ 690,000
Unamortized debt issuance costs	(12,105)	(12,887)
Convertible notes carrying amount, net	$ 677,895	$ 677,113

Convertible Senior Notes - Esti

Convertible Senior Notes - Estimated Fair Value (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Senior Convertible Notes
Denomination of notes used for determination of fair value	$ 1,000
2027 Notes
Senior Convertible Notes
Denomination of notes used for determination of fair value	1,000	$ 1,000
Fair value of notes	$ 1,006,000,000	$ 873,300,000

Convertible Senior Notes - Inte

Convertible Senior Notes - Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Senior Convertible Notes
Amortization of debt issuance costs	$ 782	$ 756
Convertible Note Hedge 2027
Senior Convertible Notes
Contractual interest expense	863		$ 863
Amortization of debt issuance costs	782		756
Total interest expense	$ 1,645		$ 1,619

Convertible Senior Notes - Hedg

Convertible Senior Notes - Hedge (Details) - 2027 Note Hedge	Mar. 31, 2024 USD ($) security
Senior Convertible Notes
Purchase price	$ 194,994
Shares purchased	3,016,680

Convertible Senior Notes - Warr

Convertible Senior Notes - Warrants (Details) - 2027 Warrant	3 Months Ended
	Mar. 31, 2024 USD ($) D $ / security shares
Senior Convertible Notes
Proceeds | $	$ 124,269
Shares | shares	3,016,680
Strike Price | $ / security	338.86
Warrants exercise trading day period | D	60

Income Taxes (Details)

Income Taxes (Details) $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($)
Income Taxes
Deferred tax assets, net	$ 208.9
Liability for unrecognized tax benefits	26.1
Research and development tax credit studies	$ 6.5
Effective tax rate (as a percentage)	19.60%
Effective tax rate, estimate before discrete adjustments (as a percentage)	21.90%
Discrete tax benefit, stock-based compensation	$ 4.1

Stockholders' Equity - Summary

Stockholders' Equity - Summary of RSU and PSU Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) $ / shares shares
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Number of Units outstanding, beginning of year (in shares) | shares	1,615
Number of Units, Granted (in shares) | shares	478
Number of Units, Released (in shares) | shares	(174)
Number of Units, Forfeited (in shares) | shares	(42)
Number of Units outstanding, end of period (in shares) | shares	1,877
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted Average Grant Date Fair Value, Units outstanding, beginning of year (in dollars per share) | $ / shares	$ 193.09
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | $ / shares	257.49
Weighted Average Grant Date Fair Value, Released (in dollars per share) | $ / shares	213.88
Weighted Average Grant Date Fair Value, Forfeited (in dollars per share) | $ / shares	186.93
Weighted Average Grant Date Fair Value, Units outstanding, end of period (in dollars per share) | $ / shares	$ 207.73
Aggregate intrinsic value at end of period | $	$ 587,321
Performance Stock Units (PSUs)
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Number of Units outstanding, beginning of year (in shares) | shares	394
Number of Units, Granted (in shares) | shares	15
Number of Units, Released (in shares) | shares	(1)
Number of Units, Forfeited (in shares) | shares	(7)
Number of Units outstanding, end of period (in shares) | shares	401
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted Average Grant Date Fair Value, Units outstanding, beginning of year (in dollars per share) | $ / shares	$ 201.61
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | $ / shares	284
Weighted Average Grant Date Fair Value, Released (in dollars per share) | $ / shares	180.89
Weighted Average Grant Date Fair Value, Forfeited (in dollars per share) | $ / shares	93.32
Weighted Average Grant Date Fair Value, Units outstanding, end of period (in dollars per share) | $ / shares	$ 206.75
Aggregate intrinsic value at end of period | $	$ 125,533

Stockholders' Equity - RSU and

Stockholders' Equity - RSU and PSU - Additional Information (Details) $ / shares in Units, $ in Thousands		3 Months Ended
	Jan. 02, 2024 installment shares	Mar. 31, 2024 USD ($) $ / shares shares	Mar. 31, 2023 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Tax payments, for net share settlement of share based award		$ 2,710	$ 34,841
Stock based compensation expense		$ 29,595	$ 1,320
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate intrinsic value price per share (in dollars per share) | $ / shares		$ 312.88
Unrecognized stock-based compensation expense		$ 321,800
Weighted average period over which costs are recognized		2 years 4 months 24 days
Shares withheld, for net share settlement of share based award (in shares) | shares		8,800
Tax payments, for net share settlement of share based award		$ 2,700
Number of shares granted to employees | shares	400,000
Number of annual vesting installments | installment	5
Restricted Stock Units (RSUs) | Grant date of January 2, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense		$ 29,600
Performance Stock Units (PSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate intrinsic value price per share (in dollars per share) | $ / shares		$ 312.88
Unrecognized stock-based compensation expense		$ 51,200
Weighted average period over which costs are recognized		2 years 8 months 12 days

Stockholders' Equity - 2024 CEO

Stockholders' Equity - 2024 CEO Performance Award and 2024 eXponential Stock Plan (Details) - Exponential Stock Plan 2024	Dec. 22, 2023 D	Dec. 18, 2023 shares	Oct. 14, 2023 tranche $ / shares	Dec. 20, 2023 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share of Common stock				4,516,370
Weighted average price per share | D	90
Share price | $ / shares			$ 220.88
Performance Based Restricted Stock Unit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period			7 years
Number of award tranches | tranche			7
CEO Performance Award
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted		679,102

Stockholders' Equity - Stock Op

Stockholders' Equity - Stock Option Activity (Details) - Employee Stock Option [Member] $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($) $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option outstanding value | $	$ 0.5
Weighted average exercise price | $ / shares	$ 28.58
Weighted average remaining contractual life	3 years 10 months 24 days
Aggregate intrinsic value | $	$ 150.9
Aggregate intrinsic value price per share (in dollars per share) | $ / shares	$ 312.88

Stockholders' Equity - Reported

Stockholders' Equity - Reported Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 75,115	$ 34,350
Cost of product sales and service sales
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	29,595	1,320
Sales, general and administrative expenses
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	23,155	15,445
Research and development expenses
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 22,365	$ 17,585

Stockholders' Equity - Stock In

Stockholders' Equity - Stock Incentive and Repurchase Plan - Additional Information (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	May 31, 2022	Feb. 29, 2016
2022 Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance (in shares)			2.5
2016 Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding common stock repurchase program authorized amount (up to)				$ 50
Shares repurchased during period (in shares)	0	0
Remaining authorized repurchase amount	$ 16.3
2022 Inducement Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grant (in shares)	1.3

Stockholders' Equity - At-the-M

Stockholders' Equity - At-the-Market equity offering - Additional Information (Details) - ATM Equity Offering - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock sold (in shares)	0	467,594
Gross proceeds		$ 96.4
Net proceeds		94.7
Commissions		$ 1.7
Maximum number of common stock shares to be sold	3,000,000
Number of shares remaining to be sold	2,000,000

Line of Credit (Details)

Line of Credit (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2022	Dec. 31, 2023
Debt Instrument [Line Items]
Debt instrument covenant net leverage ratio	(0.15)
Debt instrument covenant consolidated interest coverage ratio	51.03
Senior Unsecured Multi Currency Revolving Credit Facility
Debt Instrument [Line Items]
Total availability under line of credit agreement		$ 200
Line of Credit
Debt Instrument [Line Items]
Total availability under line of credit agreement		30
Accordion feature allowing for increase in borrowing capacity		$ 300
Letters of credit outstanding amount	$ 7.5
Available borrowing under letter of credit	192.5
Line of credit borrowings	$ 0		$ 0
Line of Credit | 2027 Notes
Debt Instrument [Line Items]
Debt Instrument, Maturity, Prior to Stated Maturity of Convertible Senior Notes		6 months
Minimum
Debt Instrument [Line Items]
Debt instrument covenant consolidated interest coverage ratio	3.50
Minimum | Line of Credit | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Debt instrument basis spread on variable rate (as a percentage)	1.25%
Maximum
Debt Instrument [Line Items]
Debt instrument covenant net leverage ratio	3.50
Maximum | Line of Credit | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Debt instrument basis spread on variable rate (as a percentage)	1.75%

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($) lawsuit
Loss Contingencies [Line Items]
Number of lawsuits against Company | lawsuit	2
Amount self-insured for any product claim	$ 5
Surety Bond
Loss Contingencies [Line Items]
Letters of credit outstanding amount	$ 7.5

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Accumulated other comprehensive income (loss):
Beginning balance	$ 1,612,034	$ 1,268,491
Other comprehensive loss	(907)	1,860
Ending balance	1,818,015	1,402,995
Accumulated Other Comprehensive Loss
Accumulated other comprehensive income (loss):
Beginning balance	(10,679)	(7,179)
Other comprehensive loss	(907)	1,860
Ending balance	(11,586)	(5,319)
Unrealized Gains (Losses) on Available-for-Sale Investments
Accumulated other comprehensive income (loss):
Beginning balance	(399)	(1,251)
Other comprehensive loss	(106)	184
Ending balance	(505)	(1,067)
Foreign Currency Translation
Accumulated other comprehensive income (loss):
Beginning balance	(10,280)	(5,928)
Other comprehensive loss	(801)	1,676
Ending balance	$ (11,081)	$ (4,252)

Segment Data (Details)

Segment Data (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2024 USD ($) segment	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments of company | segment	2
Net sales	$ 460,736	$ 343,043	$ 343,043
Adjusted gross margin	291,327	205,422
Stock based compensation expense	29,595	1,320
Amortization of acquired intangible assets	1,686
Gross margin	260,046	204,102
Sales, general and administrative	152,669	116,567
Research and development	91,097	70,927
Interest income, net	10,374	9,666
Other income, net	139,066	15,610
Income before provision (benefit) for income taxes	165,720	41,884
TASER
Segment Reporting Information [Line Items]
Net sales	178,748	134,282	134,282
Software and Sensors
Segment Reporting Information [Line Items]
Net sales	$ 281,988	$ 208,761	$ 208,761

Business Acquisition (Details)

Business Acquisition (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Jan. 31, 2024	Mar. 31, 2024	Dec. 31, 2023
Business Acquisition
Transaction costs		$ 3,500
Gain on acquisition	$ 42,300
Goodwill	250,700	$ 308,470	$ 57,945
Identifiable intangible assets	72,900
Net tangible assets	8,100
Intangible assets, weighted average useful life		7 years 6 months
Business Acquisitions
Business Acquisition
Deferred tax liability		$ 10,900
Fusus Inc
Business Acquisition
Total Consideration	241,300
Fair value	$ 63,300
Ownership interest	20.30%
Remaining interest acquired	79.70%

Subsequent Event (Details)

Subsequent Event (Details) - Dedrone, Inc - USD ($) $ in Millions	Apr. 30, 2024	Mar. 31, 2024
Subsequent Event [Line Items]
Ownership interest		20%
Subsequent Events
Subsequent Event [Line Items]
Approximate consideration	$ 400

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 133,218	$ 45,139

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
Exercise of Stock Options Arrangement
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Trading Arrangement Other than Exercise of Stock Options
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Rule 10b5-1 Arrangement Modified	false
Non-Rule 10b5-1 Arrangement Modified	false