AXON - Earnings call transcript Q3 2021

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Andrea James

Okay.

Rick Smith

All right. Great job, Angel and Andrea and our whole IR team.

You guys just really did a nice job on that video. I hope our investors enjoyed it.

see at results, the can continuing teams you execute to highest as from our our are So level. quarter. Perhaps record the single bookings is of $X.X strongest billion in growth indicator a

Axon and to another results bookings bookings compared year, more has in quarter As to coming us. the sales I'm last QX. the delivering strong, And in energized leverage and even is record business XXXX years. through opportunity proud to contracts flow to of booked by the become substantially drive we're up larger eventually a business really with expect We've momentum in we revenue, the our demonstrated scale in front and XX% model. in of our the ability year-to-date

as channels across TAM. Today, even expanding to new growth continue to selling an we're introduce geographies. sales market products, our segments ad larger customer story we we're addressing and new Now,

in position addressable responds seat us there's presence least of the its how influencing towards saw next to in opportunity giving provided enforcement table us solutions early you space reach disrupt in military the Army's to transformative market, at you Association with the the future. defense a point showcase $X current Annual $XX estimates By the had. ever that us had to States Washington, to of law top-line white the to October for example, our at an United U.S. Conference DC. This see can at of our the begin largest As With year, market AXON a projected our total enormous billion video, way to billion. AXON

X United not embassy the that wars. helicopters lethality. And it for has of not last success sufficient evacuate achieved effectively I States Kabul, lack in me in our strategic watched it's As our struck durable, the

out we killed needed people fighting the minds and machine we more weapons. in history actors the over. more And way same bad lost conflicts. the in believe the win to most way. and lethal Vietnam, strategically ability to to of hearts valuable, is we precise very become with Yet, capture modern to the world, we more can Our the the Iraq ever intend And the no the in kill will phenomenon the military and I Afghanistan. our greatest the success played and longer in lead of We

As market. technologies news the at a transformative is the world bringing core. pace, at at We're Axon to remaining faster of is innovators forefront our

you dining And the look history. TASER products. mission incorporation XX at unchanged, time signed our today, has a organization safety remained ecosystem And have years we significantly of for evolved. since can public see broad our at that that We has when our papers my You room but table ago.

here with procedures, disruptive change right topic found the month, to found conference, resistance. moving sure continually said have initial XXXX. Star our this within bars to this our to by to to with reader accomplish in and cut my in new with years, half. We customers today, back Phoenix, we Amid power even public be way. officer-involved all keynote, Axon of in Conference Together felt our technology virtual bullet Accelerate guide and was drone opening person regulations the the our year's is training inevitable customers license at power unlocking we're and XX and The safety, believe Air, Xth the the colleagues. Annual Axon this automatic to reach and technology moonshot. of obsoleting shootings North and program, that technology to and it theme pace. our Earlier great an can and stopping rise to We is new from them. policies, pistol we customers next serve the us great extremely next but and reality we new our training new always new We've exponential software, they of held our meet outperforming technologies for even From when ways at we Axon of introduced make with ourselves challenges plate transcription, by that technologies, we Accelerate, high met aim X-millimeter

In must a use human human with other, by in user lethal recorded gather That force. kill should threat. the on life, days our made talk, law, data robotics, public leading technology. safety W. to that at technologies to now increasing of to at each delivered incredibly President avoid way we primary accepting a the And stay December capture will to X video where the trails got the a very to to officers set in that should our input ahead all in AMA other, with history to interview to We that, regulatory mechanisms to control decision system of And to first hand new to critically and stop please ensure be of these accelerate authenticated but going to and and for inspiring an are We're product the you logs that protect blaze gratitude for aligned good goal excited to and mission X And calling powerful to an of end and are development. is truth, TASER in from very by of is and each over which used how independent robust, citizens, as to ways to after robot George specifically regulatory out close -escalation the call, be respond to used an should important fortunate Luke so public a in reviewed first new force We're And a Larson, I minimal of all use new interactive deployed and a fact, of killing. I Former with full continue non-lethal our years framework responsibility. oversight discussion an proposed dialogue advanced to guidelines. today's the Accelerate legal data civility dangerous robotics begin I De expressing Bush. He we're mission the our I'm second, keynote Reddit opportunity moment of to play going powerful hosting a to committee. any existence the justice. President. not subject institute to accountability by accelerate are Laws with be ALPR framework to of it be operator of to capture the tuned robotic The that robotics were from the use Q&A. Xrd audio force for introduce cameras then of be body proud to no impacts harming Accelerate, framework. there our end guide ethical subjects. Any moreover we for we squarely our

Luke Larson

Thanks, Rick.

business by creating insightful needs start public is believe product of of problems solutions sales technologies the the unique your we success. with critical the safety is week to solving real to made with continues fast customers way value employees testament me are world power out our people no The a recruiting pace, could We're starts grow and by over and experience in are excited Accelerate. such is level talent the teams around diverse year all from shout not creating and learning customer use. obsessed else experience. anticipating fostering for listening. with most saw a at from to platform a more great all Huge can that that willing to the impact the one on engagement which marketing echoing our to it we build. this by mapping the more really Who means We opportunities. customer, phenomenal ahead. It's to A for I their a sentiment than all be means best a Let icon road just an which transformative and

establish to way. not retain future-proof, new allows to but continue at ability only move do also to the innovation. closer the creating to along that goals forefront disruption, accomplishing and talent need our To to we organization is Axon top allows mission, an of to this, Our us resilient increasingly

XXX retain, mission. as hiring and opportunity build and teams the roles the How incredible we're embody dedication unparalleled deal talent as why employees to talent. spend means on future. collective our how our we from the currently We're lives built, pooling of to best is values initiatives. the want we great pool, on The we we learning have we over an expand and best-in-class embraced their the watching the which This and do attract, it's consideration culture our and development our globe. to Jet-I laser-focused and doubling remote work creating are develop matter, work we the our are We hard around a into put we resources down

someone know that great our impact, a wants to great send make them way. You

feel out expected in we we We're As shifting but exceptional revenue to we the QX, round X XXXX which includes great of the shortage not just $XX about million supply pipeline. chain situation. are is right navigating This it's now, the bookings, finishing our is the immune, year, industry-wide an with that product conversation into TASER while now teams we of of platform. half our that our first are TASER chip result and XXXX. The X universal definitely impacted deliver

X and a long proud through a of helping history it pipeline. are globally, us our seems partners as chain skilled job Company's global chain us invested in mission our harder than supply meet relationships We who supply the it the a have surface helping and to with have strong our as in to We're is consistent aligned manage are our team. tremendous incredibly prices. operate chain Axon's commitment on and supply requires done team Teamwork

in in half XXXX experienced ability meet remains, our the potential of we've and for be first needs customers some line the interruption to on continue to clearance want we to the first and While of and of delays and our deliver a backlog feel our of environment. confident hoping sight annual great have revenue to clearing We dynamic to be sight to to these what continues half the the of the have our I in spite guidance, year. we line pipeline reiterate, about challenges. in of

call Jawad. Financial Officer, the over turn Chief will Axon's I to Now,

Jawad Ahsan

from our energizing. intersection technology Meeting also partners, of around justice employees Axon that I customers, the start social you, investors. me by sits over and conference. excitement the mission for the to was advanced Luke. all squarely include our at These and It world Thanks, with a super stakeholders. our echoing galvanizes stakeholders of reinforced that Accelerate with want our

While you've last our at campaign mind proxy, track at year, In in ESG. to has to governance able to listening weren't input we gather us. outcome more specific we been been in and we an to we've we've invaluable this top investors for of a received look feedback of light on received The sharing forward Accelerate offer months. from investor feedback of the our coming conducting the discussions approach our been these

like Now, and years, segments we're geographic in stake capital updated the substantial over market to Market on seen our projecting a strategic the Addressable past Total have continued regions result invest putting actions partnerships, transformative trends. and unlock and we're and several customer Federal new in excited TAM. aggressively new channel early R&D and enabled new to expansion. a These to technologies with strategic for worldwide. growth as products We've Today, planning runway an share new and like deployed of or ground and emerging us Justice, investments, us that you've VR Respond

that is shared Our double TAM with you. one the we last new almost

highlight. will While intention is bring the investments with exciting next relatively these still penetration over to months. XX new to serve to in us low, two we our which absolutely see areas want particular market to I new have place, There markets are TAM in our in the XX this products it's

of the of our First, Axon Security, $XX these better security opportunity software Level local Homeland Defense and of multi-jurisdictional serve has government, run billion evidence agencies several to our Department enforcement have Drug the today, a federal being federal to in year feature, a Agency. new of At as and Impact are Department body-worn stellar standards. taser including demos, share the he other To made and seamlessly and offer been information, new sensitive enforcement devices, agencies. attorneys. also exceeded and customers built s federal of We third Enforcement the we We've a enabling added defense XX+ $X record Justice, our who on civilian sharing in We've and state bookings. U.S. levels, across team now Protection, have in our federal, expectations. and Civilian we branches federal X law which security with had among count XXXX, an adoption Richard We the across business to a all driving for Coleman is which performance DEM software. the complies since quarter Border Customs to has to team the who's cameras, to the track Fed investment customers strong After able ensure we another federal with solution High we Rate federal organization deals, law our view million anticipate for

Next, I a since devoted historically has, consumer it's briefly Axon meaningful not but inception, R&D double-click one to. had been to that want on consumer. business, always its we've

few to to help releasing years mission of new development a ongoing personal host truly bullet. our devices next of will obsolete that over safety the With our exciting the device new we've the advance technology, TASER committed

have begin over is shareholder U.S. virtually alone. letter, a TASER but In tremendous we're ahead the to drive be safety lower we a and a an mission highlighted consumer personal very The also early penetration announcing still to applications runway professional even alignment, mobile just the importantly, have time To than XX% represents the most segment X in solutions our is $XX and clear, means device penetration the the We user. intend we growth. consumer, to market, technology, globally, frame. which in billion strategy, we offering this in but in this less the that

while that X. up we'd X, delivering our to on the you are to X growing rule we're the away Now, quarter. take for TAM. underpenetrated this like want X, before highlight growth we to open themes achieving XX, I questions, we of significantly global leverage. call against investing

safety results for Company outlook larger XXXX that public waypoint life. year-to-date and synonymous Our are with is protecting a in a building much and towards

ahead of to XXXX, the we're into we year. momentum ton a As look carrying new

will XXXX XX% Our of total million. this top to what strengthened has ARR least expect past in revenue billion We to on at XXXX. $XX record in we growth our ARR a year-over-year to quarter projection least added bring $X at $XXX be million

the let's exciting forward in We on questions. us, our ahead sharing progress we have coming of updates Angel, to to With an and look move quarters. runway that,

Angel Ambrosio

have to time, Okay. surprise into right. as of Jawad end for Moderators, you can Rick noted, today's If tuned. you bring Thanks, I into Okay. as the have at team. move we encourage stay and up we all special everyone Q&A, we call. gal And would the review? a All you Great.

Josh. comes first ahead, question from Our Needham. Josh at Reilly Go

Joshua Reilly

right. takes then here be quarter Maybe first teams $XX And QX more the hitting? revenue All job the will out guys. with Thanks, expect Would Nice spread QX all just that to revenue. of or in the the you here. timing start half? puts or million shipped that hit what through we'll are in and evenly on the on

Rick Smith

Thanks a the Josh. for lot question,

And now QX. job both doing I team's environment and world the QX supply right across it's point, and it we great a this the see that. do think certainly, navigating challenging through in chain hitting at a

course, of it'll we're that fulfill as much can, be so, in we but of can QX QX And QX. we and as realistically across hoping

Joshua Reilly

then And great. a maybe X. on just Fleet follow-up Okay,

to due gross then, As given here, a there And margin any to the is this any Fleet to in semiconductor that well? challenges? that's initial to result chain to X mix launching going supply be of there going impact ramp is production impact as as coming ramp be the

Rick Smith

products has high, X, seen the ever the been before. in-car I for video than part higher our very, Jawad of Fleet But let second question. on very that answer demand we've

Fleet a to next Fleet we X and So and are X as throughout shipping continue of Fleet compared that year. X expect record to numbers we

to the QX. this right for moving year else than we I'm oversubscribed moving now relative that are demand shift think more We and product and QX expect versions large and previous QX of but to the I speaks in forward, quantities anything forward the and sorry towards do

Jawad Ahsan

Then point gross on from at we're gross this expecting Josh, any the Fleet impact not question on margins. margins,

Joshua Reilly

move Thanks, Awesome. I'll on guys. here.

Angel Ambrosio

Okay.

Jonathan. Next Blair. analyst Ho from Jonathan ahead, question William Go of comes

Jonathan Ho

on results. quarter of and Hi. another Good congratulations strong afternoon

As decision lot update we your sort you seems estimates, maybe than like look what to since the now underpins markets the maybe to appear of it revised previously the why can larger and some of you be these TAM about talk TAM assumptions at thought? a

Jawad Ahsan

Yes, and I'll start with that John, X, the thanks question. for

been, flavors and is products we've investing how oriented today. we've and as of body the we given and do about reflect we're past is business growth markets new aiming the So, wanted the we the devices and for towards talked segments. beyond to the there you years, here TASER And few cameras, accurately what that for

TAM well, investments more its because has very that release a the to thinking few federal, the for today. we're how years, TAM early as the has lens how growth that looking our way with been to past we ambition. we're to like at sure they're our in-flight opportunity that inning guys been these you about bigger Our focus widening We about align VR, very, are in are. but expanding things I through s as and a in now, but make thinking speaks we investing And mentioned still of TAM that's consumer; on are wanted business our also presence same wanted we're more

Jonathan Ho

that revised that What ones, make it. can impactful additional then to And the when look to need the are most these opportunity, sort Thank Got you. investments what highlight markets? we for us? you unlock if at you this of are just

Jawad Ahsan

we technology And technology excited lot going to quite some security; going be to for in it of going The the right? is next-generation able for time. it's it's serve to, it's serve be Axon federal that consumer correction, about our talked markets, investing We've beauty have been a about. about able technology, TASER of TASER enforcement a well. way the investment. that incremental today We've large thing lot domestic be as great and the example, our to is for to to enterprise not Yes, business international translate is law we're able a very markets, to in TASER,

to camera the we're we're true leverage making. is investments body same holds gain thing And with that what The on really so and DEMS. looking already do

towards skis DEMS be and there the You law are here, drones, read and we is a areas a and in training at not new enforcement. get that new this that happens making far But We investments to today to little those driving that an VR to we're law find product, far partners cases looking enterprise we're as into that's demand right you really looking to what from get more partner are markets. other the camera us investment. leverage strong. use incremental think our body there for the ahead should and as oriented or enforcement really there that it's expand look solution extremely is like really that geared new have. the into bit towards one of into technology, that is And that help too technologies to are content, we In

Jonathan Ho

Fantastic. you Thank

Angel Ambrosio

Okay.

Brian Brian. Raymond next Next Gesuale question comes James. Go from -- ahead, analyst at

so you Astrid, and both to the we'll JPMorgan. give to would also the question, We have on Paul do call. we can a Chung that will ahead go second if well. and prefer Maybe as ask go you Astrid you from

Paul Chung

questions. Thanks taking for Hi. my

launch the contracts, seats the increase we are what is software kind are kind market what more customer of new of share? features some and annual what And drive the of should upcoming further your in on there? about you the thinking to of? between just How dynamic expect that So

Rick Smith

thanks the Paul, question. for

job seeing feature the team the market good those. that couple is I And value-added really fantastic a the value news product now has over think start sets delivering done last of years. the several here we're to

and officer records tools, offerings. policy. which in performance which a safety bundle are the is we're more updated complying our customers offerings, as buy our Standards, plan product more seeing officers with is ultimately, products. called their those we of there's module redaction those One solutions measures together how There's our of And first agency

these seen year, I'd of In really is year. through focus through for purchased for on we year sales, success that been that as value to the of only we The customer and fact, do lot to licenses X And our a we've X far continue the showing have making about number as say feature quarters, adopt of sure ahead as a a achieved features of so. sets these double this so There's lot really customers have. runway well that that job plan training new to last released. good

and So so. our the and biggest focal in that will sales next be our into software to those kind confident over hours moving of more team for offerings our ability few customers we're point more certainly do

Paul Chung

saw Great. India; Europe the contract very in in there where in strength and the you traction most been you. you're there, Asia, comments then that particularly front, Then there the you out Thank in how on growth pockets strong seeing international seeing there? called and any a Europe, of momentum, where we're

Rick Smith

for Thanks the absolutely. Yes, question.

have hired those to and France. long for In UK, we specifically, and call around markets we've seeing Netherlands, right expand feel EMEA really strategy growth now the a beyond several Italy, us disciplined while a exciting Spain, markets we're tier recall those who been teams And we've in proving out we're our in like, really Australia. time, the the in our earned what Germany, X will we the in world. Canada in and talented in markets, about So international with

team there look of the largest in indicator addition markets leasing to at kind world. contract to our we that there In first strategy to across a first this the and build the working, is X continue India, we're out with of going [Indiscernible] where

years video Brazil, or are and from lot selling and our they is devices. now, CWs we're seeing a X which we place Another were ago, years buying really into of again barred success X both

job into a sales out is our market these product product markets round to team customers point got team some we've it's so has of localized achieve coming supporting of and those And for fantastic the markets really and together business. where last nicely doing now and the international that our edges both in our mile our to fit

Angel Ambrosio

Okay, going go Brian to Raymond from Good ahead we Gesuale are Brian. James. to back

Brian Gesuale

Thanks much. Yes. very

opportunity really body well over mark coming up the deployments several as out about start business? maybe to as to with you there. support lot and had the see continue Can quarters to next and cams You've talk you margins, over that a of here might invest course year having we the as of big continue the large how couple flow of wins the make bring to to those customers TAM some live investments in

Jawad Ahsan

Brian, for thanks question. that. Yes, the I'll take

the adjusted we're XX% margins, long business reiterate margins. gross over driving the I want to XX% towards So that EBITDA term,

the comprehensive about we think want guess in list we start of couple when Over we a best to it, year, I of the quarters, investments that way off have next make to product everything above these and operational we're which determine of as and line. investments imagine, and targets gets fund, to excellence, you set we that etc., going the not then revenue our channel, might

everything a light. Now, green gets

our expecting that that we over-deliver roughly business. below throughout line adjusted these reinvest finish after adjusted EBITDA we been to the new we're at back because the for forth. want XXXX, products, tremendous channels, items funding stayed throughout into at of we've these guided on were segments revenue We've where QX. then not have Had year, EBITDA the for pushed a next roughly those translates the they opportunity the As unlocked year we the to, in would and for the unlocking reset. got to flat year, the funding because going new we $XX we've to levels had and we full margin EBITDA of to margins year, to do XX% to million initiatives, revenue believe which year. get end for But in And we're were QX, so now

camera, dispatch the note about. TASER, VR next-generation we're that, fleet first federal one is funding, super and Now, things records we're that body X in training the things to initiatives excited new here, and like

going below tend any For bottom all like margin like the going over in budget are right the we XXXX, now. up. that, to treating sure fall tick are and prior these we saw we're to to And going you'll thing We're XXXX we've which is very demand to the years, you're make be see line. second just see line, going been right things areas, strong, in delivery treat are just to the note -- is process is to there that

So the QX margin to going we're it's that rate, slightly even view lower, to anomaly. going an be as though

Brian Gesuale

carry what last of -- appreciate of I that about as that. had over I we the look the 'XX? into remember. the has and then specific quarter, momentum as you VR it's it strength booked strong sequentially been in /AR of Great, might about like I ARR the quarters. the think that software? momentum course a know to can lot as of couple might How we And Any think some I that lines stuff shoutouts particular of

Jawad Ahsan

call, see which able and premium, part course, world the OSP were Respond, on used new cameras. of our live rates Let talked be which into body release There's about down a of X+ the streaming that improving on me with. officers as that to were transcription. we last And our Charlottesville live to seeing tap how of statues, our Respond, Fleet. premium attach like is capability they and plan take We're includes VR begin video And controversial in is services the able taking to also that to streams. ALPR, as

seeing highest improvement we're an in think rates elements. addition in attach premium I in the So plan our also to those individual

Rick Smith

in it for us. seen It's a the we've ever Brian, is the to Yes, record just quarter that's largest increase right. formalize, Actually, IR. single

Brian Gesuale

jump in I thought back guys. so. the Congratulations. I'll queue,

Angel Ambrosio

Okay.

comes at Housum question Keith ahead next from Good Keith. Northcoast. Our

Keith Housum

afternoon, Congratulations again. the guys. quarter once color the Appreciate penetration. on TAM the and all the Good on

weapons, can context as really your of weapons you provide quarter, users? that versus replacement refresh quarter they little a or into in of at look being phenomenal color this or new we sold As TASER a are had terms the percentage

Rick Smith

Ultimately again. for answer the Thanks your question, the dependent see I TASER. markets that, X question, is a X right lot us, or market. really to Keith. adopting are And there's think the for to you now on Nice

motion, in is are from more an our upgrade is of For majority local, to TASER folks the of state a where TASER motion U.S. upgrading Legacy ultimately, new X. there the -- market the

other tasers we promising don't seeing bundles an of the TASER which security, in in because think and that sell continue -- and issue being into and we seeing are terms in markets see the cameras more Now, more users, market we're to is now, international federal standard can uptick low future. users enterprise and in And first-time then -- same see that like, and we first-time

Rick Smith

in international, to X we bet TASERs. never or deliver want for then, worked to and strategy before a then a example, And TASER our fantastic we experience really adopt we've So they'll a with to really customer ourselves X we go First little as later, have where think customer additional equity channel. put is on bit and years into and same security can that sell federal customers, I our bank back the then of a And private some portfolio. those we there once with well, from them with our products year

of the on but demand across little So those bag market, depending a definitely all of bit high seeing mixed markets.

Keith Housum

XX% Can for aggregate the all going you refreshed, me? it versa? to to ballpark is it So would be Or is that numbers, XX% be vice had if new? you

Rick Smith

that estimate have to front until can -- we I my I so I've got head. to it prior any quarter. a future like something I them of the avoid keep the in with off back you come me in data don't top have want of

Keith Housum

Fair appreciate enough, I'll that.

supply is on chain body-worn cameras? follow-up beyond the a weapons supply quarter dangerous as into chain, any a of this Just chance looks issues

Luke Larson

feel really good of to one Keith, suppliers. closely We've about We QX get sign take committed contract our been into working So that we with our pipeline. all and I'll and QX. deliverables

time, full at in rid with to So momentum and the of going this We're product confident the keep on half our the year, feel we the first we're Tasers to get really backlog going going of portfolio.

are the supply the caveat, a Now, of I add would crisis. chain global in we middle

years, job and that that, we think and the a over feel Our supply done it. has good X proven really phenomenal team about chain has out our strategy last navigating I

Keith Housum

appreciate. I Thank you.

Angel Ambrosio

Keith. Thanks,

Hamblin question Go Jeremy Jeremy. ahead, comes next Craig-Hallum. Our at from

Jeremy Hamblin

congratulations. Him Todd. add my I'll

think first question me team. probably a start Let in product development Rick for with I

a expect stopping the the TASER with make So How iterations getting exceed years or hand do now power to in in can that then traditional out where many to capability X-year been few TASER XXXX. bullet roll between this products by It's that to now target gun? and since you match you X. of obsolete period ambitious

Rick Smith

think now XXXX So don't or our I would product or say know and out. the with X I specific, be I revs, that's we goal to really X And outperform is gens think X millimeter. XXXX between to X just by [Indiscernible]. I product X would

Jeremy Hamblin

team to Okay. to that, in feel you Is And of to at over say investment like needs your that, let's that something the the that. from has a is made it years? going X R&D be in last, what or terms achieve been goal accelerate X growing

Rick Smith

it Accelerate, as business, I talk of able of move tie and able to to at to as and The being be R&D. No, and incapacitate are to that TASER harm's remove along well as operators not to developments and way this target. about risk from funding part some grows, scenarios a most robotics the is start also, the did necessarily. continuing

like, guy incidents is I handheld porch; police in customers don't who armed we you talking somebody addition barricade to situation chief like you In was or want his with the them. a feet Tasers a know XX within with devices, major just have on gun to our also a earlier if get about standing of a

cases, being And long than us of robotic further where sort be also trying the it develop or X, is to rifle, to cut Net even part that part distances doing I've come subjects outside operate better a half. And take shootings some capabilities, system, to believe ultimately, might then think those We from deploy that weapons engage of of will themselves. building. that TASER to XX. and some so that, human that, able long-range can particularly able better range to they be through a for will in the police X, dangerous in new solution

Jeremy Hamblin

that a new through. hearing police that's efficiently enlighten an been Axon budgets. police has I from as you maintain X-year public a -- force Patrol in enforcement. is going are deployed costs, the been dynamic more departments. just domains the my more getting how vaccine or better police expense police they're get a chiefs actually their can that Can which insight about with X. hearing personnel X. as Officers, the highest they personnel just good civil to that the for in bit we've to potentially That's unrest segue you partner, for whether mandates, you're so what a the evolution are from question period This that incredibly What and most they need. chiefs? law in a stretch follow-up is, typically Staffing wanted to: bit little sense with Thanks. us little The

Rick Smith

Yeah.

spending spend of the all for you sensors moving where needs system way back-office there over not directly on and we're but their translate effectively, didn't directly work that sitting are things that on the of handing help us can staff. have digital of is the directly customers we these lot officers that I their entry courts gains. records. read to a our if may producing best to other very records are and doing receiving I it the in stretch we producing of one can efficiency where can and expensive deluge solve budget but on through, typing started of do lot could problems to into these we're agencies productivity that's budgetary free officers we're in time we these day the having talk to the tasks now lot finding all think not the just example, we're prosecutors lot data a mean, half -- justice in read that a reporting areas the now that in agency, bullet, there's them of from professionals we interesting very to leverage about at into And a into their efficiency new new doing, their creating evidence for fairly an a and have obsoleting connect off system on up how laptop, double field helping work

Jeremy Hamblin

Because adequate even you rely to like staffing Are does getting are as challenge on has a staffing they in they get. some to been or partner? sound a cases having it more

those is I for maybe attacked Axon think word, there's a lot they've but are they of maybe people anymore like feel to for an looking again the an and to publicly, job opportunity inappropriate sign up not resources. stretch been, who

Rick Smith

arguing bill certainly in replace to is environment. particularly police We also this department the public challenging we're Minneapolis, do that seeing I I Yeah. in recruiting pass. I mean, shift think did not sentiment. a mean, in the

have I a to in think well our starting shift law and are see critical to as it people to them that solutions thoughtful more tools that investment. we're to realizing just productivity a a defunding, enforcement Not starting challenging for feel function become are need where important. customers we is really real is than and ultimately, as even but it higher requires do more

Jeremy Hamblin

Best done. color. for Thanks Well wishes. the

Rick Smith

you. Thank questions. Great

Angel Ambrosio

Morgan Stampfel comes question Stanley. Eric. Go Okay, our from from next Eric ahead,

Eric Stampfel

see customers. existing those just we budget are with they're of you go do to generally still Records upgrading are guess that to with Just the that Do of adoption, if contracts? higher actually their solutions and early understand Respond. value team. it's curious, ahead to Hi, contracts? you for on customers as Thanks. customers moving room the could Maybe adoption bundles to some anything camera most back body in cadence have seeing I the

Rick Smith

and Absolutely in products trend to to that Thanks heart a next our grow ultimately, expect police we will record. Certainly, best together, right. we the question. for we years. XX work every the of evidence we're X And seeing already digital And Yes. the believe be at believe Eric. that, and that only continue

we're work or And our customers now, doing attribute records the OS officer the our the signing we is doing that more one deliver the what's enough and to hard our really the Right believe that to from to that product significant we're onto in customers to and team experience. right doing to first are 's stacking in the we're early -- products than well. same most and just that customers of nailing to is hearing for customer the more the early next and market mission later, more our positive for lead now, experience And of across that offering to have records a up sentiment buying best now. offering on balance adoption for safety positive going really focused times that's strategy is and plan the with Records us so, adopters. [Indiscernible] Records And experience more serving

Eric Stampfel

just Thank think opportunity expect to to there, you. of most fronts, for consumer is really channels sales into out direct the building of that do be how And prospects to model about think you're there and the then a ramp? consumer store as of I we opportunities you expand starts or model just we in guess are in as differences

Jawad Ahsan

will maybe some turn and I Eric. over to Rick take color. Thanks it that additional for

and and of Taser both leverage direct-to-consumers think direct. safety, an to and sell going us of some there's models do going developing. both. we with certainly those today, So also opportunity distributors We to the through it's personal Today, It's we're be applications the to we in direct-to-consumer term plan those developing mobile the forward. increase near in we're next-generation of going products but process not for only we're for

Eric Stampfel

you. Thank

Jawad Ahsan

I'll don't at we're just to I it too want what much doing. leave that. telegraph

in we're We of but haven't what's about terms yet, announced products coming. excited

Rick Smith

Very excited.

Angel Ambrosio

right. All

comes Our from Go next ahead, right Will Will. there. question Power

Will Power

more to the a bookings up great. just I made Yeah, Okay, I whoever strong it. you little to on color know to wants comment on on the your congratulations record I'd results. the back record, drop get love of but XX%. that'd take pretty any based to any great. come drivers dominated products, on geographies drivers, it is the between back building international is components strength of as broad you by about key the it, think that particular taser, for be sensors, something want

Rick Smith

not feeling to over actual just closer is in how Josh. support broad, infamous hearing order-flow. police the well hand answer us And little playing other being Historically, of systems me to a of very Let X the terms general he's customers. works thing together, Josh, they for would I'm from well we're tax the the are sort see customers with fact systems. you quite stuff the question? valuable. really that all

Josh Isner

are bookings factors. a of combination our Ultimately, several

adoption core more think ASP the we drives because offerings. more safety I see those up that -- plan officer our bookings is segments, are highest in our and it

double-digit same seeing that. addition and We to really very that's that, Justice year is encouraging on And about we're quarter security Now, sales that products new segment including segment by Enterprise also to our also international some newer growth record quickly product such track both percentages, private see. of seeing ever, our We're adopted a grow course, is in contributing, a segments, really, -- fastest mid we're in in excited record a for international we're very of and the our then, the VR. are Air, XXX. rough drone growing. record Axon with which quarter, TASER had as had offering, VR had our

exceeded to their every where -- of and type so, in the single across just we've ever and we to post quarter -- bookings. to momentum we're And contribute one next or that, products. in think encouraging sales it's expect even start, better seeing results and Very had total his quarter stuff I expecting of a QX, in to we're first that all terms teams segments comments of all continue our goal across

Will Power

where and to put our next be for I we right know for some planned, of outperformed puts XX% sim question but we all as you or just this have provided That's year. next I missed be, the you've margins you've guidance think the maybe largely investments great. for year Jawad, for this, on a next about any a EBITDA for framework code. target intended know got then to models I together year there in revenue target. you should a takes year? know And longer-term you Maybe were I

Jawad Ahsan

Will, Yes, I appreciate nailed party line. the question, the certainly you

going setting margins weeks long XX% we're towards budget to opportunistic about remain term driving the of and are to where XXXX. invest process our are in We for

to of targets, of formerly that we're EBITDA going and hopefully margin fund. it unlock next more doing make is, a variety want year mentioned, multiple throughout or to to have so and about multiple is We as surpass cross and Not I we're go opportunity have year categories. top-line we we'd we're that our get EBITDA. the way to It's there's to do we like and growing not host everything sure going funding. the products, is investing, reason the on much across in focusing front way it's we're I a keeping us not multiple for thinking that funded investments we guided that revenue as dollars is And geographies, just The and that of channels, our right? by

that going aligned you on. what investing we're this you something want going in with that's we but also team So, in after disciplined, TAM stay to That to are shared Rick count that can executive getting I on we very the prioritize today. from and much business us rest overtime the leverage is to are we drive

Will Power

Thank you.

Angel Ambrosio

questions. I And to close any Rick, unless out. you No? us over right. All Okay. to follow-up that's think there everybody, are

Rick Smith

don't folks, your social Please having the call. our pandemic moment missed to where Okay. we look powerful forward moment. investors us shared at close celebrated And on, updating and this challenges thanks these Accelerate moment with a sharing you next for out do their share through share few we widespread this with everybody so next Well, to the past a with the We to our to year. again, as sacrifice we us. and I that years Take by a customers bring year that, close to want let's stay joining run we quarter.

this investments Your make possible.

Axon Enterprise (AXON) 16 Nov 212021 Q3 Earnings call transcript