Axon Enterprise (AXON) 11 May 222022 Q1 Earnings call transcript

Company Profile

Participants

Andrea James	Investor Relations
Rick Smith	Chief Executive Officer
Luke Larson	President
Jim Zito	Interim CFO
Jonathan Ho	William Blair
Sami Badri	Credit Suisse
Erik Suppiger	JMP Securities
Scott Berg	Needham & Company
William Power	Robert W. Baird
Keith Housum	Northcoast Research Partners
Erik Lapinski	Morgan Stanley
Paul Chung	JPMorgan

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Andrea James

Okay. Hello, everyone. Thank you for joining our executive team for our First Quarter 2022 Earnings. I hope you had a chance to read our Shareholder Letter that we posted to investor.axon.com. The remarks we're going to make today build upon the information in that already robust letter.

will business we forward-looking and call, statements. this discuss outlook our make During made to Private are meaning forward-looking today Any statements pursuant Act XXXX. Safe provision Reform of Harbor and of Litigation the Securities of the the within predictions These expectations today, future as of and comments guarantees on not of based performance. are our are are risks to and statements materially. differ that could forward-looking All uncertainties subject to results cause actual are in our discussed risks These filings. SEC Rick, to before going play our go video. And quarterly to we're we Presentation] [Audio/Video

Rick Smith

Angel. And call. job everybody. that on Andrea and for conference Great joining for quarterly today hello, us video, Thanks our

the As to with we are look world, truth being mission its a protect where at never lost being for is values, and invasion our egregiously by the and when lives it what's to of important happening clouded disregard truth with Russia lethality more especially life and in truth, and been our protect reckless real disregarded distorted in has emphasize Ukraine. wanton life and

in are scaled the than digging category, stronger mission leader ever. As our into our we

about the our great way doing the and scaling. is business are all We things we're energized

we sharing in more war, combine can our and in I've officer unfolds. not goal, of shootings States things the about with not One brainstorming accept killing decade. our facto forward you, policing, as of goal, with fatal de which the can part highlighted policies Shareholder in is design, you how We customers human the to in in not We by -- officer XX% this our to sharing have to is United cut Letter not training. been we existence, tell over homes. product do moonshot next involved as a I our look together this year

Jim Zito broad reality XX% with languages is What guidance. On year software, and this demonstrating course, is automatic investment last disruptive adjusted what the Just the conjunction and invest expecting room talk on company and We're We're everyone Last CFO of revenue solve our to raised our successes revenue energy forces the And like in at and as revenue transition growth the is stay a EBITDA TASER grow customers year to full happens this front week, we before in body join and builds R&D in when about in in killing. our seeing XX% and lot XX% announcement, problems this, a public And for driving year license to that. stay when in this a excited it's reduce real-world top my is with the we now year where products of interim innovation training. not growth international revenue year virtual a to to new leader. just that initiatives our cameras, scenarios product midpoint. but category international growing with global in expected our of adding suite in adding will There's that area we're in a be new into the and plate some friend of features. in-car U.S. training, welcoming cameras we're call safety We'll outperformance we note, our with reading globally revenue market by and One front accommodate VR final new customers. Fleet investing our cloud duals to as fastest-growing CFO. the and of want XXXX. start and is

Board Jawad best. of remains Arizona. We to and I key Axon's team, implementation all press seen On smooth President stronger was more organization, morning, have and over overseeing operational management role announcing a to company here behalf world-class the for innovate transition Axon the and processes as of our committed exciting the CFO work helping our excited Jim release new dedication of the rigor wish in there played this Jawad As Jim role Aira, enhancing thank and the results. want a to new tech you role. about and an our and may of his couldn't Jawad's controls years, and accounting building future. to internal a financial the reporting improve X drive be last in financial grow, controllership him has we over the

like embark CFO on we you transitions. our my philosophy with As I'd search, to leadership on share

a inherits CFO capital Our combine our discipline value can with rigor creation. with creation and marry energized strong about societal looking I'm a of culture operational next allocation who and in how a value CFO that very bench. shareholder to is that understanding for

Luke Now off I'd highlights. through our Luke? operational of hand some like you to to who take will

Luke Larson

Thanks, Rick.

call want You we expect to at continue on the that this I to our played focused and the give a feel we talent, world-class all great these Many shout and great called our us the call work do mission-driven in in, done saw today. ability focus. thanks attracting we a in are so. are do to future, highly the build world-class they've with huge about on company. of And start lots this we that and on video help There's Axon them to teammates for of the to

The supply demand. meets satisfy this on Another to item has us key on customer well for our our ensuring has been execution team executed chain front. that ability

production that the place us We meet increased has has to areas quarter. in first goals and plan several have solid in a in enabled

normalized shutdown, supporting to to out product midpoint have the into updates we are our our you key are of return backlog some China's outsized check year. in Letter. beginning an guidance revenue we Shareholder monitoring the supply X latest And at the encourage to flagged led visibility we more to issues I the COVID that full levels. past chain Also, throughout quarters While cautiously the now

Fleet truly that camera across Our traffic transforms automatically be cameras. the X changer dash one X,XXX R&D X lanes public Fleet multiple scan the team to at in-car in date, space. plates game forefront of is To have proving we at is installed reading our fleet. innovation can plate over cameras. of also it's safety in traditional our closing the only a Axon for staying hour, is agencies making ethical of misuse we strategic not vehicle protect design do, the into XXX believe affordable miles up to for citizen to framework automatic to advantage. thing it huge a right their speeds data license to per disruptively and privacy deploy And

in major Axon to You record management than and to brings also records nearly XX,XXX long-term on it Records, sworn launch including We with replace That officers systems. our XX just their trajectory. the our that fully legacy remain may more agencies already region. had accelerate. excited with confident have using live momentum starting are us seen X city is Tucson We in to a

Our driving focus is at on short-term success, a time. one deployment customer

that recognize growing a macroeconomic Speaking there is more sense uncertainty. broadly, of we

execute robust long-term our Axon's we in positioning. look As and further pipeline into against confident incredibly future, the remain we

across We have the teams stellar organization.

leaders. a are category and product We

been rigor that future, are on real areas had business where Zeto an relationships customer Axon And by and mindset. devices, is flywheel a last maintain strong the workflow Our has and intelligence while scaling to across instrumental operational we over build with with are all that X to great always mission accelerate years, and our This the underpinned the we enduring financial life growth unrivaled. continuing These leader. as and won't a rigor. I'm focus discipline. a proud protect Jim long-term we've

Now Jim his earnings I'm excited over super for to it first turn call. to

Jim Zito

and strong the helped I've our prepared of impact Hello, that have background the demonstrating nearly over Luke. I seen out internal to when at experiences and software me operate processes especially I culture Axon the XXXX controls at an I at It's These a arrived. have the inside the rigor how X scale. $X XXX enhancing joining with of companies of played our Global billion to every in lead accounting my culture Bobra, of of Healthcare the part overseeing to everyone. is to organization, global auditor be implementation spoke role building Thanks, insides and build company moment from great time and to company today, they at career financial controllership discipline an succeed. momentum. stronger I'd at General enable creation across cross-functional the partnered and the to and serving you my company like clubbing I rigor to the Electric. of our a of financial nearly a our business years to. the some Rick the past of operating X tremendous to leaders as SVP share joined as of FP&A, discipline after improve Digital, other GE of our Arvind drive spent PwC, results. necessary I've Controller first in years to rigor our Fortune previously internal Axon,

in cost CFO. EBITDA flow record well already upon I'm confident $X.XX revenue we I've deliver to already. million cash the we ground free adjusted that few years. by of flow of opportunity opportunity Interim revenue ability $X.X strategic discipline strategy, to to growth, role forward started new the upwardly hit established We've your flow. We outlook the results. outlook our a February, deliver at operating raised To to as at to translate natural allocation. the midpoint. line adjusted lead full reflecting team, initiatives growth as that XX% past our million added and can and cash to improved of scale taking we And about honored to our continue annual adjusted the transition is talk that, energized with an of support targets to in our related our financial a how questions. year track free contributing as billion X over quickly. execution with seen and range flow. invest cash I'm my $XX company a we've the to coupled world-class given bottom cash our revised to capital outperformance profitability QX, This remain revenue impressive quarter. expectations to billion, finance our $XX into some running. look We've touch to themes And reflects start our supported accelerating In this You've In and

Andrea James

bring and gallery I team. into up thanks you you I have everybody Thank your you, putting up. see in view? And all Jim analysts. queue. There. Can the hands we

We will Ho We'll William question Blair. first get Jonathan our it. at to from take

Jonathan Ho

it that with maybe guidance revenue giving to so out guidance confidence? wanted early you're to the to seeing What demand the the try just is raise understand the start in raise better in what's much I year? environment you the and

Rick Smith

the Jonathan. a Thanks Ultimately, few question, things. it's for Yes.

really, work us to really a achieve The strategy a lot lot diversified our kind is across different a and globe revenue a gives of this of of that's products got goals. And doing ways great different different first markets. strong we've team the of lot around

indicator confidence of combine strong years Now and prior, it probability we that gives when through is we year up just of really closing, last forward the revenue built from a and across we've I this lot year high with of good that us think board. which a the a pipeline that just see bookings

So forward. the year and of of that's certainly proud team the came way out the of the we gate hope in point QX, low the moving

Jonathan Ho

Excellent. the to sort navigate just the your your supply you're And of of what chain, then can issues the a just what about supply of you've in persist? you seeing, now challenges? of bit And the China, again some around able commentary terms how around given that little confidence uncertainty chain some underpins talk been

Luke Larson

We've down Yes. been got we're bring to that situation, have Thanks, diversified portfolio. reiterate, sight Jonathan. line and the provided. of I and we monitoring we've a product also backlog, that guidance able the to would we’ve just

do And go orders single supply mission with our out. give our derisk a type they that can it. a want fulfill. of to of issue, key the with kind that manage strategic huge actively and I plan our they and aligns out highlight, So we see shout team lot of and talking if they're a when would we that One suppliers,

delivered hearing for over ton And what next confidence months. a and outlook we're because of we've the X Axon is the life-saving not that as world. got that team they'll the might we've So other and the impact the results in of months in last just in have the products companies that prioritize our critical XX

Andrea James

Thanks, Sami Badri Jonathan. our question Suisse. We'll at Credit take next from

Sami Badri

first increase cash My the It's my raised time. adjusted EBITDA not but is for first so the did you've also conference call, flow. appreciate free I year, you question

you that just of up? around piece out flows bit guys explanation a kind good to safety? into I of reinvest even CapEx get like Is in demand other to an it cash a demand So why bigger environment. little of build of public reason there and And working more is, stepping this on even an products you the of lot backdrop a incremental a a service bit the lot platform sounds would with given profitability are wanted

Jim Zito

take one. Yes. I the Sami. can Thanks, first

is is the a cash we this free of range update got the wide added main largely we've rest we've and cash. So the fairly to out flow going driver between spread of delivery why a cash into guidance, typically and sort there's the the most be year, first free that flow year and translate of didn't performance revenue the over guidance I of revenue of over think is that lag

we could of year. slip delivery So flow that next see cash QX some over of into

Sami Badri

And it. the just okay, that that -- explains Got part. then

your given take of expedite you been generally a guys I to individuals? shipping Is specific part are importance Or deliveries? out constraints. the on other to getting sure to had you from parts suppliers that that products prioritization The to your a make specific amount public there and can have speaking, you safety you supply the components chain of maybe charge make have

Luke Larson

Yes. Great question, Sami.

of an actually offset some that and those our is our operations. So of fees expand we've mix able really pistons to this about paying the good we where margins been get have feel gross where overall some and business to our been components of example we expedited product all But firing our increases, business, strength the just is have again, on our in.

Rick Smith

And welcome, Sami.

Andrea James

Okay. Suppiger at take question We'll next from Eric our JMP.

Erik Suppiger

of couple A right. All things.

management terms before? your can purchase better First constraints? to than bit your done inventory question Have the earlier in agreements little differently a the you you about had supply able what you or of commitments? been chain off, anything expand had you lock-in Have on

Luke Larson

methodology Yes. methodology. Great and that on a life on we products, question, cameras. just-in-time the had never X-year our And Erik. a Most companies pre-COVID the life because manufacturing had have X.X-year Axon really TASERs

we business months into demand have manage And can to so X proactively that components meet a to where been quarter buffer going that as different bought forecast can of cases, would looked we've up our us for based Throughout good downturn. to XX inventory have delivery working we our last the with more strategies to customers. supply our at-risk to suppliers and for gave further ensure as we oftentimes, or chain on at and In make we we actually some deliver to months, well up XX customers. that our sure

Erik Suppiger

compared are you of you are then And at deliveries Okay. days were where you terms me constraints, Actually, in to the supply getting better seeing different XX point let this -- ago? rephrase.

quarter? deferred that You How in had business. what And confidence still? much a the the of $XX million in your fell half falls is that first

Rick Smith

Confidence in of first We couple that as demand out also but half. It well. ship is in did falls strong it the of really we the QX, some high. gate with

commits suppliers And continue we'll question, to of into certainly, terms QX is And in your to here. promising. the outlook so the from ship answer into more getting is getting QX

the year while half another revenue strong the to quarter first really So in remainder of clear track delivering in backlog QX. of certainly, on the the

Jim Zito

it a anomaly back this higher-than-normal bit half we'll an of more like here forward. was of backlog sort normalized get of slipped sort first that of backlog into That levels QX to the from I year, of going Yes. think

Luke Larson

Yes.

we've middle Just to color your We would add year our and good QX to we outlook. commitments. to manage X terms low XX of really the being get today suppliers worked was real hand feel around QX out. can having last probably than days that we the not last to a some in to kind able of get service question from reiterating about see more suppliers of is just our And is just it really with year those ago. better them the specific watermark In ensure to commitments months, end

Erik Suppiger

the Okay. Then of CFO is Jim what quick for your one. Or one are one status? you Zito, last position? the candidates

Jim Zito

We business close heads last as for I focusing us, the it's usual. And every the on for have been X down months. week, books for executing the quarter.

So on we've that. focused got team great a

great I'm the company in consider out, be. as team it's very certainly mission on process Rick cylinders. internal attractive the the to a and I think Board some world, and candidates, will got plays is and It's position. external a the attractive and all that it's an confident place clicking and The

Rick Smith

In position color have Yes, really Let sure too. senior some and me like add this, there, talked I want Jim a any to make about run this. we process. rigorous we

the enjoys raft internal as confidence, so with And of make the qualified be going well say, we've It the to for his a see get sure may confident Jim we're to he level right that very how team we forward, an there's And well And just and candidates to role CFO roll it would process where we're a to be may decades. a done going as for team the gets Controller. that make right full for as and to on to Controller. candidates. the I got role here on we're this really a us then positions opportunity Jim returning gives it role. try us to as going want we've and next external to that compared sure that high

Andrea James

Berg our Needham. take question to at going from We're Scott next

Scott Berg

live I movement a up in for didn't went over cloud component that's revenue quarter, between an wanted product guess XX%. mid-XXs in the It's on but business? the the is acceleration it low with nice areas? how My you a a is clearly those of training? couple upward. it, seeing should in period, XX% driven I area the customers but that, of extended last we'll call VR it's different start got I know break that to This Evidence.com of been of in a might of or we revenues momentum that some Records growth the year. think up the, layering in is the here. How growing lot an more that about by the the Is some or to

Rick Smith

Yes.

of just And think users going to kind I is within have a lot users camera we're now get that that adding new deployment. our every not lot of is were agency full a platform. of quarter started, body but ultimately, new might bought onto an

And Fleet And a of so revenue as to our is with result of kind as the dynamic add-ons bundle, the video all combined feel our more licenses. up-and-coming of though safety with software more factors that that We and a top helping contributing then in-car there's users, as and with business like of certainly trajectory more think of we service of service it adds officer deploy with some certainly, the great and revenue. well. more more same some come of are the now. selling devices to of that's growing the and those our right I about the offerings really world line lot And around VR plan licenses, deploying those more

Luke Larson

on incredibly expansion geographies. across diverse and new like products, and new like to and then and like adding vectors, into those right, market a about on range to other into Rick outside VR federal into customers building value that's for And all our segments gratified and Evidence.com plans. our well as the earlier, there. So down Yes, la things carte able just talked expanding on the as the higher and just board our others and products right? be of global that we're features to upping both new premium it's add-ons doubling add And existing top expansion bundles as of those, combination ecosystem of on the even justice of out keep customers about it's of classic our

products. ones the X new existing our their all those both ecosystem just seeing of bet growing logos on Axon and So vectors across with

Scott Berg

in in Great. I've right things the very are we product given the from is about question of a is devices set a And think a Axon penetration I has at my think States follow-up multiple about think they're how workforce with all areas because Helpful. penetration on cameras. I now perspective, cameras like feel basis, this to headline in obviously police on local with you And and and are should other all global on camera rates, top today? or I now But wearing actually was United we question areas? probably body to penetration on a They're is happening all newspaper the body received a in how domestically side, rates where least body then the the high recently times rates? Minnesota at up Trooper TASERs rate. understand about more around penetration TASER, But how tighten TASERs. given penetration that Justice especially a think couple

Rick Smith

Yes.

other call and Australia some Tier UK, a have And able both very I we've lethal the across fortify now around strategy focus less we're the years Canada beyond several for the which same become teams the executed strategy think intentional few we X and regard had over we there, such into is cameras. market that body world. and think that to try in now, markets last that to I really the and expand leader really well large time what markets, that the would our

early we're becoming capable products, customers of on approach now with really both mechanism market sales so and a working in same using force that building kind expand to land leader and of that that's and categories. then growing in those markets, those selling repeating the up And focused same

those can we're as in of successful we be to I United And kind States that we part in very continue scale really well. so sure market the every this calculated federal doing are And we up of make of capable a the I'd to teams enter. outcomes. way include that government very think delivering in And that as in a

like we that and to we'll outside the plenty execute as we United TAM feel in and room of government, here. to grow States fulfill to the continue of go there's So federal

Luke Larson

then cameras, as modest amount white mean, tremendous our still even we on building we of as space and our -- TASER bottom there's products penetration, line And new body of that, can growing. pretty of a as penetration and overall shared of another where by example expands the on I where classic keep Yes, cameras, is have in it categories the even a body before, category that, opportuniti. like we like adding to on top

the on the connected is camera Respond, So products body of features live one fastest-growing top of camera. which other is have we and our streaming

so customers And who overall or may socket the either as up bought example body it's the of if grow continuing already even have camera basic bundle la just filled a that a through with a to category an carte, that, into has already been camera.

Andrea James

Power Next Baird. question from Will at

William Power

follow Records Okay. of I couple in revenue agencies the XX a to X guess on to business, some questions. the and using Maybe up replacement. there. Great. close It with was who to just notable full first, felt acceleration it, up cloud strength like

helping going key understand couple quarters the expectation features is been think new about every Has you the What momentum added? add -- want the there? of just going I to do more there? keeps kind accelerate of Can How what's few of Records you're lines adoption to we from So the customers? there trend a here? kind

Rick Smith

Axon of agencies And have and built-in as part the that. Axon activate a of of Records major Safety the and of while introduce adopted as that remember we there state for Plan, counties part was launched ago, I those plan have and now, cities have covered that little Records now they that police the Officer strategy all So a option years when that bundle. part couple to several for to

deployed first with going module in standards, like Records, might some all of are getting the the which start and on quickly. and Tucson Records product Now is some

to have so very now. And we Records a healthy very, waiting of deploy queue customers

accelerate product. professional to deploying and future the Tucson. necessary, customer we what see COGS the And next about that that up really records. feeling any we more Records services We of invest really just got tell we a went product really with kind challenges real as we confident and fast on I'll product it for to services the personnel of running. fun the and And to more and in resource to we holds and in We it's continue expect moved -- And the excited going, was as adopt meaning in deployment we're team really, live you that's that after without across this and how Records.

William Power

success small some everybody just kind there. you I'd see but small. But impact, broader suite focus get I love trends, conflict customer for to think in Ukraine-Russia Great appetite products you how our of Maybe pretty any on have in has exposure? force a think gears, it's of to growth? broadly, your Ukraine, big the I switching more been Europe. that sales a perspective kind are continent across seeing of

Rick Smith

over in think I the of kind current the there last the products have applicability what every of regardless demand business couple would future is of see this months here. tragic do our about of the and state I say, obviously, there, across at very TASER we'll Ukraine, we over Europe have small affairs. day point, Certainly, the a thing holds. nice they a

safety more alternative desire continue and bullet. so of to terms for to demand, And see in the transparency the public we both strong also across an

exciting seeing believe really of here. on of sure both grow to the I'm major lot some more I time growth talk Europe really markets. we'll indicators European product a Europe about we're so demand as in But And goes and that lines. in in kind those continues

Andrea James

Okay. Housum our at take Keith next from We'll Northcoast. question

Keith Housum

obviously, far plans into you the But And The very guys but too details significantly, get I have like I to the know TASER well. they're guess, I XXXP. and of next year-over-year. TASER valuable. down were trying volumes generation the XX of the noticed not here, as I'm kind device

color what focused the older not? heading? Was products plan it's for the the terms or could in it just of and you TASER on So where perhaps provide the portfolio drawdown now

Rick Smith

Yes.

have the do customers, international I thing in of approval demand. spaces be legacy bullet I'm have hit got of goal And still mark. X, I that pleased move really with on ball just still towards a in our systems think really down particularly its might really and And hitting sort field we stride. long right that But now making lines some to X is largely see to the continue we is the those federal our TASER next-generation think TASER shift devices. time The of course, it is and it's of that more obsolete.

Keith Housum

the Was And dropped on quarter on that, base guys more saw the we -- that. XX% Great. last XX% with spectrum Obviously, the go of know from TASER that to that you sales further for I this just as on you one? payment upward Weapons international or year. dropped kind recurring perhaps or trend down go this go

Rick Smith

dependent is on metric That the mix. Yes. largely

So in of of service change international bring X a markets. our when can United the Tier States we of terms no have down. shipments in of the number in there's momentum I'd say kind all at plans or that that

believe I every the is that TASER right that is a deployed that Australia as I in payment been in Canada now repeat on plan. and UK looking think And has fact, In sold well. we're to

And large plans. our so markets, generally when get markets we on Tier orders not onetime from these they're of some outside of X

to of first-time if first-time a working customer. we're Some of a due with or collectibility, that's distributor the risk

metric over that into that, say So that would but less give wouldn't there's us there's time. a lot I that confidence goes in any developments

Andrea James

up, Next Lapinski, Stanley. Eric Morgan

Erik Lapinski

I there. mostly kind state gotten Fleet for and Are of already you guys we tend on-body if I cameras. weren't have cameras about think talked both? that that I'm maybe seeing the on-body just traction early had deploying cross seeing to a having I you know in-car police and could lot of customers a curious, a using maybe Maybe talk cameras? you're about like from guess is coming second.

on-body that the in So from it's camera early interest just Fleet customers is angle wondering if already? more or

Luke Larson

in excited Yes. We're very general. very, about Fleet

how product kind demonstrated have product place a then propelled case market if case the versions their highways. among on in study state and of we're market a couple kind I the think where subsequent and patrolling leaders, most the are space. of first the not where customers into great that in And use us the it's of the of use case police the doing leader often of

a counties supplemental is But viewpoint as a well product we're also for adopt. to across for natural of body seeing the Fleet very So camera. cities we and them it kind as line --

term exciting that's of So one I to offering. been And within of software additional things the about long Fleet adoption the nice see. is Fleet think

are plate being of lower selling our it to one than used become add-ons to far license ALPR, they're because cost valuing that every additional and to in at which car, customers they're So fastest deploy recognition really a able used has capability not historically.

certainly So about holds revenue just there. with the core excited Fleet kind for future additional system opportunities that along the excited of what the come and in

Rick Smith

Yes.

people be they are wanted bought our let toe with we're body we -- is body do It Fleet get able With cameras they and as light to to customers market, for in-car of never largely had Let able in work speeds first who've and And getting toe. conditions, that's still bought cameras systems optimized X image our them it's enough to on going really and reason the the a image the We've can't best got their the because cameras winning systems system balancing the software. video deals they high this X, and the ALPR there, Fleet have me or And X Fleet body in market, just cameras. really buying work one add full take body video compliment the on the our because his Fleet one well. other The they second and I size I'm love on and our in at X, won poor me of Jeff -- sorry, stop. did really right they team great focused and lanes to us. particular, head-to-head ALPR video resolution, with level there. those to be have performance. performance. design against imaging in

best combination pretty the now expectations really as got X demand expectations the ALPR a and cameras is body outpaced that we've killer best down on seeing above it's cameras we're think strongest the I Fleet the and that's And attach hands software for Fleet ecosystem. our So and well. why the rate also

Luke Larson

on that you as both. build Okay. that Thank great I well. really for on information can't one small resist

any a built Because I disruptively price like of a that the to impact mission agency example into right it it's they're just happen that every just model things changer driving every for and be it something immediately down then capability lanes single the ALPR a has and X vehicle them that to at of are going if few only a if instantly alerts on those too. have expensive a vehicle there. and having the school on present that piecemeal something it. And road disruptively a going every immediacy right to to an think ALPR cars pass action going mission is, why affordable with X to the affordable become vehicle, game wherever they're speaks is when of is effective they're But going they they because can stolen and technology-enabling is moment. perfect be over, old get whatever to the car, far vehicles physically of happens an boom, because with unit, single for the car, hit few combined match between business where

Erik Lapinski

for And Fleet appreciate the understand in cycle? is then help that, just typically if kind contract I -- a even of within cycles actual could you twice cycles just the you versus contract info. all body of and us on it replacement kind hardware Can or better the the of for that ship difference the cameras. once product similar X-year or kind

Luke Larson

thing. Sure

our customers, We're for out cases normal of cameras, some years largest some X with XX kind body So is to of historically contract exciting. length our was that really seeing years. expand which actually in

life then X.X receives that what they contemplates receive a years, camera cameras upfront first every cycle. their the With customer Now is a it's X-year Fleet, and refresh.

of and kind because thing agencies out cameras. swapping camera more -- is systems also So cars kind reinstalling for a involved that of is good than in body much they're

there's wouldn't cycle. much demand accelerate to I that So say

at it's And more so Fleet, years. years X.X cameras, body for and for we're like X

Rick Smith

There's to add. one the hardware. other feel thing not I just compelled It's

used sauce from Fleet. moved a to cliché. we can And a deployed that mindset because tremendous -- we I recent secret they kudos. software had guys go it hat control passionate me trooper is And their over that led case, live fantastic a big She you award people. team, and competitor, a had recently or I can up a said, -- just know the manager Jenny. they had "Hey, we how his just and like in they job, that did We mission to can't important asked to rely feel on But I was who are think me overstate the state wanted of where come the real sound when Jeff called tell major program you, can installation. got to you. I and is Our And the people chief you

you'll leaving is agency midnight my it's You're That is in Nobody the that helping statements. there o'clock. job. trenches but probably There's our our the never no have way financial on our around mission. see represent that advantage with is intangible We at past had thing people not live." there, is to that greatest rallied single us. X:XX people Nobody we saying passionate the bring is it competitive

Andrea James

Right. And least, Chung JPMorgan. at last, but Paul not certainly

Paul Chung

right. All

verticals. you're momentum expand on on just of the you kind across the that seeing So commercial sector, can

follow that over some some And I of how have key be that are up. wins mentioned You evolving? this you there. is time? market material And can how a Where seeing momentum?

Rick Smith

detail. I'll Let intro give hand more and me an make to some to Josh then

And happen that rules we're and what X of these this, difficult of off this this very think between in the public environments supercritical that solved seeing the federal to state rules of has we've very out there's meet police videos case, Evidence be then that wild and handle which sort stuff is come the to for is protected room and interactions is I failure. Evidence. use difficult in a it that

down almost and this starting less law in built that, nicely to just virtually over sort structured as Josh enterprise could believe a about more to enforcement or actually the you documentation fulsome let's the extract these maybe probably to most forms, they all person So of delivery other, tools be. forms happened great get there's it's begin areas what's port cameras interaction. typing more to a into and incidents, the difficult with get and and have handle the here, And document I other getting or earth, get ultimately, extract a can And to by want metadata to With whether a business these may and alerts into of business that then how these say, me able where to gains. every don't reporting from be today a mission-critical security the efficiency imagine, computer. and I too building use we've a this we're But in to use data on enterprise able let whatever hand record out their populate something you're we of it on think creates with they really demanding way variable interactions, -- video can happens that specific. pen level need of paramedic to on to are very port interactions, to reliability areas. little a And but excited in type we've delivery more of ability to be that of human some what where in record consumer filling smarter cases, things transcripts to created record area, any with that to to And interacting happening people because now paper patient line. recording

Luke Larson

some Yes. our we of team signed early to kind this more believe And doing vendors I leads working by finding like kind the this with scrappy of happily safety really are those we've agree that household and small products more and part customers future. we're that opportunity, good is terms big early our of already and with everything really Rick commercial customers. on space are deployed, in a names and our of contracts said Mike in job now. really our in And kind other the names public a getting in just deploying space, big phase that of

And going many even outside this more and road to at we're, we leads. make the of seeing product these and some public point, still investments this make making will about think planning, to where I we're more attractive adopt safety, not think excited that future and Evidence cameras I kind of next into really of kind companies investments our round customers body management of software.

Paul Chung

expand of you on kind whole a you strategy as know And -- of but started sport level Yes. sales that's but the you I leagues? hometown, Arizona you different of work your the kind your kind league can Diamondbacks, across work can country, with that is well? in

Luke Larson

a still We represents of in can, scheme things. but we pretty that small the and will, grand TAM

like Fortune mile the feedback we're I the positive thing about on in of and companies a level delivery well. cameras last some of kind I focused deploying body at retail hospitality, use for in use we're of there as lot think And of this, see Whether really getting macro some in in deployment other cases it and U.S. cameras, retail, XXX there opportunities. same was seeing UK, that or coverage kind that management or seeing clear we're the a it's services risk on where with are think it's we're a need whether of

we're So this will excited about lead. where

Paul Chung

And lastly, the segment. consumer

consumer? been will the take kind you of what's Are adoption there? some that of tracking for time your momentum it Is expectations? some Or seeing reception So in StrikeLight? the kind of

Luke Larson

I the deliver really that. on -- given saw little. ramping around just can we that a focus of We our to core some business, touch were up

X And small early relatively I response for part too I would think a tell. I highest be friends might good been demand and still and giving little is family it business was has a I But a lot them. consumer StrikeLight purchaser. say our it's of the think I the to the Our to business. from hearing of high.

Rick Smith

consumer to the nice going explosive to exponential They're nice say to are Yes. continued -- of They we're lead leading those products. that in growth they're growth. would not proud segment. I but will refreshes

historical out curves TASER that the we of I think to technology, of next-generation we've start see of demand break to kind that's things might in. As we been look that sort where

stay So tuned.

stuff I of first the begin we'll really think leverage you'll we market obsolete could some expand from come consumer that our innovations see I core And as newer there, the think to bullet. adoption. to look then to

Andrea James

No, on joined mean to Thank the Craig Hallum you didn't you. from has call. Hamblin And the spot. I no? Jeremy put Okay, good.

you do you hand Is put Give to has a up? second Okay. who a there a anyone here. want follow-up,

Andrea James

have for We so us. close the else you much Thank joining out. Rick this is Okay. to queue. don't anyone in going

Rick Smith

for been it's there Awesome. rough know of Well, our environment out investors. a we all hey,

And I has As try the the at turn thrown really control. to of tell really all results focus world to not challenges us. I'm of on things that team, the despite proud my to has we outside our all in are for team forth the the continued at we guidance us to environment, have to of to raise outlook when come confidence world and increasing amount see, look obviously, fair for pulling this took confidence a us and the share of across most in an the business is back.

investors, excited of thankful of we're future. team, for So more be I our prouder couldn't the the and

our seeing on to earnings Meeting, We've a forward later busy at look times few of of you and months call got some course. the coming up. back now month and Shareholder we this So ACCELERATE from some

thanks, thanks to just fantastic to team continuing everybody, our So deliver. for and again

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.