Earnings call transcript Q4 2022

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Andrea James

Okay. Welcome, everyone, to our Q4 2022 Update. I hope you've all had a chance to read our shareholder letter at investor.axon.com.

Our prepared remarks today are meant to build on the information and tables in that very robust letter.

During this call, we will discuss our business outlook and make forward-looking statements. today safe to Private harbor Reform of made meaning within Securities statements Act the of provision XXXX. forward-looking are and pursuant the Litigation Any of the

of our performance. We future forward-looking discuss differ our could statements risks in and on cause guarantees to All based SEC subject these uncertainties are are not risks comments expectations These filings. materially. as and today are actual and of to predictions that results

play will quarterly call It's over to go And and earnings before we ahead we video, turn the about Rick, a our settle in. XX-minute video.

Rick Smith

for a Andre Angel. video. of the is I important that passion the most solving things when And you, Thank right. really see that this our most feel comes are gets to that year. job. And results from ultimately investors, I'm that All for team. up problems you you the part can the us we problems customers. one is focus the and us be on solve formula Great that is what just the in our And work last we also puts so And that through of can valuable hope to humbled

weapon created. sophisticated, most and TASER is XX So the It's leap effective we've TASER forward. accurate huge energy ever a

our if drive generations had that always granted take truly like forward, the as technological for lethal our may goal. advancements technologies they simply capable existed. Future existence that of less these all is And society

customer reception has the been Now fantastic.

and the of technology change. to societal at be are humbled forefront incredibly We breakthrough

results follows cash and XX% macro strong environments. multiple revenue and XXXX Our with difficult standout years exceptional of through performance flow even up profitability

change team and our and investments strategic solid conviction traced cumulative superior our our of of execution unprecedented focus down passionate few our to trust. talented to amazing attracts can on thinking, double customers, a long-term history mission; a just things: to we an that upon of and foundation Axon's and build And drive people on relentless be key customer finally, and growth. vision

example that talk a decade stop. a ago high-margin ensure the -- of take to we're future areas our more of that investing continuing we drive comprised we're In see to The today. A a moment our include had It's XXXX, this Axon value horizon to continues to foresight recurring company great prime the to is XX% I'll beyond end, well than total. to a more building business. software cloud to long-term start policing currently creation more be strategies revenue XXXX will full security, about planning sharing robotic the where than

visibility stood is extend and playing as disaster crime role a we Axon security a communications invest to drone Robotic Air accident scene drone important foremost, first and and and or already in robotics as new an program and increasingly We response, and of responders. a ago, years DFR way in search our category few first revenue that. view up first responder. a natural to continue technology, for We and reconstruction

cases. force security to frequency robotic possible to everything play role on do for high-profile have seen a potential the news all use We departments to tragedies police greater de-escalation. the see of reduce inspired Numerous of We've in these incidents.

SWAT Substituting need reduce example teams. One help home enter people robot to as firearms with high-risk example. officers to the see of can is a for a scenarios. opportunity for a types drawn, many for the in human police We with entry

in port and both intelligent integrate the fusion is real-time of coming to investigations. system, into and to with cameras response How see types public of we assist area ecosystems for video safety. to long Another that multiple sensors support one

that published from officer. these together be for about X a oral videos, intelligence to artificial Nearly description one we a and could camera officer in with used from key body the ago, which, years report idea information the AI excited generative that police the extract brief can day with recent advances also vision We're video write

we able mundane make like of much in feels our capabilities building longer our what decade, will next automating many This efficient tax fiction. to no our and vision leverage cloud to the was yet focus and dollars are the and part excited science time-consuming thesis vision over years tasks. customers more out to public over infrastructure that to we see Well, past by be delight few very our our

corners. We Ethics we look individuals public provides And We build ask governments, dynamic, councils, Equity ethical to work and who feedback. questions future, in and finally, help invaluable impressive and continue that them our around their when right. counsel to Council. the with city design in for for ensuring constituencies. leaders hard each work highly Advisory council They and assistance to our see us successful own us are we our and safety with trusted with the collaborate we This

I'd that, talk with detail our COO, like Isner, to now over And more Josh? turn business. to Josh in the about to

Josh Isner

talked of pleased Last to that we report about focus And areas for delivered on XXXX. lot, of four the fronts. I'm August, I major a all Thanks Rick. back half

than opportunities. efforts and First, revenue a say a just yes, up phenomenal and half in results we weeks The include few with win. launch are business. XX% TASER our We a XX% And product And in game-changing year close of across say when more driving we XX the discipline later. no alone. back the QX of the we many prioritization then to to do

billion today, our categories, core our total addressable which cameras, in TASER, The That shows billion analysis. base second In I outlines shareholder federal, a about to growth grew in professional $XX talked customer area opportunity markets. TAM penetrate enterprises which from VR Air, was includes our updated commercial billion a SaaS TAM, a and includes international core and Axon to our U.S. and that $XX $XX analysis investing letter new we introduced our market.

position and ago. as discussed Rick see have to positioned leader future the a best We us pioneer. as we areas is the a of the a today in Much TAM ourselves moment of our that on as policing pursue where deliver investments helped

I'm Thirdly, our flow. on see strong to promise to very cash generate us deliver pleased

the allowed adjusted million. was we forefront free year, last investing million year, in ensure to to $XXX innovation. to we adjusted cash $XXX the This on scale stay CapEx ecosystem us global This in at industry cash deploying EBITDA of flat flow. of XX% in strategic an For investments to maintain full million delivered roughly conversion $XX a position net while drive

you some call Finally, we are assembling whom a see of here the from top to bottom, on world-class team today.

outside and years X to a the drive next beyond. next the capability outcomes mindset for This team brings discipline, financial and play

We deliver are and commitments to on where employees, we building culture a customers our expect investors. to to to our

we following: Top with Working to take continue core the remains top a margin, are which expansion and in market number products have bonus federal items. streamlined revenue. our you XXXX, EBITDA toward customers. four adopted a to and company-wide will new in entire ensuring one, government product Number number by U.S. Number building our organization three, The exceed we Bindi and to drive metrics used international adoption, be that measure, forward the moment. Looking four, line and to the through new is Britney, priority. incentivized adjusted growth two, markets

chain stopped take and the new never customer base features. our advantage We to software of existing helping walk value our up

wanted provide plan X-year our I out lays milestone. will bringing to think in revenue, color we build on to achieve before billion help toward $X some us Finally, that what

existing and path selling Our will and markets new be into markets. products in revenue a by combination to our products $X new existing of billion beyond into driven by selling

to our wallet U.S. We we of continue to state value that market. will existing deliver to introduce of customer share that continue our enforcement, local believe grow in law new and products we base and

and Fleet TASER multiple these leveraging Not and our growth paths Axon the continue the portfolio. of provide of create parallel, federal growth we line Dispatch, will XX, revenue will as well will simultaneous amongst continue X, grow also drive Evidence.com year year Air Records, add-ons reality, our top such to Axon US local in but our beyond motions out. to virtual In for XXXX, opportunities the core to and customers. enterprise, international, future, multitude guidance and will two state they Items annual Axon product combination only

I'll it to over Brittany. turn with that, And

Brittany Bagley

Annual our Axon Cloud Notably, you, net Thank see strength the revenue and XXX%. recurring growth about grew best-in-class million broad-based margin. grown metrics business and performance. a Both across revenue represents to execution. XXXX software the robust revenue million to third particularly strong $XXX gratifying is carrying cloud net It's to now with revenue of and Josh. driving retention. $XXX are gross XX% business, on retention one hardware and has In XXXX, XX% our

of done revenue a subscription-based. to in total few when the fantastic tied we addition, years and proud In was of than subscription a was X% job selling subscription has hardware are of half bundles. XXXX less to Axon just compared ago incredibly revenue

Following the analysis on organization. as opportunity, our an updated Josh's focus regarding more closely commentary aligns our GAM with

opportunity, core lead $XX commercial the billion and currently the I'm Air Axon's protection time, an opportunities federal, for enterprise. permanent cameras, and TASER, same professional U.S. VR recruiting a customer categories public remains business. personal base SaaS includes across to the and and of Axon reflects international TAM market GM a safety, consumer At

terms shareholder However, our $XX as of from are market in billion letter, our to billion we this TAM. in on analysis we refarming noted $X total

rightsizing our that opportunity is focus we're we better normal reflect interested billion are in opportunity pursuing, $X to core Almost in we large see but still business. our the

revenue in You'll XXXX. to completed implementation revenue million our relates previously recognized underreported. that unrecognized periods also to cloud note was that due $X.X work and we of was This had in prior QX, that we ERP in

our While is result weakness. did to a in it the financials, impact material immaterial

our robust will laid detailed be for environment, exceptional backdrop thrilled are XXXX out an this improving demand outlook and the XXXX, the XX-K. year to a be have sharing a and ahead. Against in plan focus another we an we of in Remediating

into that some time X-year had I've business, now to introducing are we dig the goals. financial Additionally,

of my key XXXX, growth following: financial financial XX%. first, at revenue are for our against the the delivering of objective Looking priorities executing year

our TASER XXXX, opportunities of can in over half and margin towards growing against gross and improving XX year, offsetting in-car automation, on in working the up gross camera catch software inflation are manufacturing mix our include the margin feel first with levers balancing pull in to continuing pricing. the installations. In efficiency revenue we ramping fleet which We Second, investing time, long-term on further improvement. confident these we

software Our over high-margin carries upfront time. margin transitions Fleet a and revenue business to lower recurring

we Third, we controlling discipline. our financial are and XXXX by enhancing large investments for growth. XXXX, still digesting investing expenses in In operating made

goals. X-year XX% potentially to leveraging of fifth, setting And strategic up hitting the guiding on improvement partnerships, EBITDA adjusted we M&A. us year-over-year. margin, XX vision and which delivering ecosystem Fourth, path on are to are implies our to our basis We by points investments ensure

goals. to Turning those

billion that Our $X outlook underpinned we by laid deliver on out communicated we've can and Josh for drivers. the XXXX our more that than confidence revenue in the as previously, CAGR is XX%

Over next adjusted gross we expect to to and drive margins EBITDA years, leverage three XX% our margins. approximately also operating achieve the expenses

expansion the significant the points. XXX We are business, and profitability of demonstrate represents excited more this than to of increasing basis

We on adjusted EBITDA. of cash adjusted capital are CapEx, also on targeting through conversion and free cash prudent are working management XX% flow we flow focusing and above

in This us invest both cash attractive our business free allows and flow deliver generation. to

over are working Personally, Finally, runway go-forward bring And expenses, down energized while you few a dilution next basis. our spend see years we comp the to on dilution. I'm existing by share heard stock we through incredibly the three we count years. we have on next the will committing

growing compelling capabilities user that need. are We penetration, a market model, enjoys TAM enjoy critical and customer global stable building a and relationships, subscriptions end delivering solutions Axon to innovative a low market. business meet R&D to strong

I would to to With it like that, open questions. up

Andrea James

Badri we Thank And have you. Sami Suisse. view? in Okay. from gallery Credit do everyone

Sami Badri

a have couple. Just

is one for Rick. First

to? ramping mentioned a or would their TASER feature actual line just there very customers one strongly think be actually or and of up early lot out going or nonlethal shipment you think the that weapon, refresh I your that an proposes laid is type XXXX. But subscribed would Brent to in the XX an stick TASER kind the thing what feel to they've they of maybe of signed I set and have to already customers subscription be that to about is early plan that just are video XX in time TASER

Rick Smith

business, which seen great in new in history news. never have a already The have TASER question. demand say would my this Well, the great I does model launch strong in I is subscription to of with upgrade a our early. that lot but working basis, on upgrade increase customers on an getting are a Josh pathway, I'm and we Britney people closely for want customer-by-customer and

the with obviously, a the complex. multiple revenue bit on is contracts deliveries so -- accounting And on our the

be believe capability that overall, profitable take customers on our those that in we find early work basis. be So for for us able also hope to without case-by-case we're this and upgrades need shareholders taking other to our any that they'll of ways help also to will some accommodate to But to a launching the able onetime our expenditures we're we get sooner to that ways are other and obviously, we and by just forward our adjust bring and things. new able being customers big new VR for and some of capabilities upgrade

cycles. we example a our us the win-win is for up -- And to the ability to us upgrade So set really business the for think this continues great one model and customers. accelerate

Sami Badri

Got it.

be four you for Josh. will measured Next one talked by compensation about drivers. how key is Josh,

actually drivers being other motion? of cloud feature isolated products the selling that Or Axon partners services? or that products is that sales cross-selling. through in just part Will set also Axon of and was are very ecosystem your One the include pulled to

Josh Isner

Sam. I part think say for we when impact sell time we're year. through will to overall be small Great a expectations, agent, there I'd product. is revenue partner's that Yes. a But a revenue set next any sales a relatively of our question,

the and sales of in new do part team look new rep part in then you of at compensated large is product it. essentially commission we momentum it's sales. plans, So that have products when both partner And level a

solve we that's how that. for So

Sami Badri

made software, products. comments last I'm burning expansion the points the going Brittany. regarding this to ramp one XXXX. of be the one across release just for comment the [indiscernible] made comments these loaded products, you they because as regarding of up And back some for Got in you Is and of for press that then then half basis years it. XXX And some does three neutrality by with of margin these the made well, actual the

Andrea James

I froze, so think got the it. of question, we but think I this we Sami answer gist can

Brittany Bagley

Yes.

looking the get are be there in bunch to make puts XXXX, we're really the a of like XXXX. at margin. gist of those and to to we're the sure XX% when we've certainly, is getting leverage that for both OpEx that looking there taking $X question I'm we by to about takes getting of that that So to Sami, get billion revenue. part might And And we talked

pull a And levers levers, margin get those so need to it's and have that standpoint. nice we gross an we multiple to different there, from OpEx both and

Andrea James

Ho Jonathan William at Blair.

Jonathan Ho

something or extend you I changed on with assumptions you that's give than the Congratulations underpinning strong comments maybe some your what's Is stronger about wanted one market I the there your confidence little XXXX degree the part to of that for of dig a confidence to into anticipated to XX% guidance? results. your that's extra guidance. business more of proving guess bit that

Josh Isner

in results basis, to much kind that very of to of past in about we're the talked on aware, what will our product normalized confidence that I'm continue year-over-year a growth gross we continue categories do categories all And of the measure like five-year significantly think be not on of and growth in basis, I we and have Actually, a as future Jonathan. as you're that year-over-year. we in a indicator bookings sure it's bookings about market and but look the Thanks, that we into optimistic rate. forward-looking lot grow X-year and Yes. a revenue only the seeing X-year

new the in in and reinforcements new seeing lot provide. into markets, And revenues exciting future bookings terms a look seeing product our that the of combination really of a so some it's of our scale of indicators seeing

Jonathan Ho

X And excellent. the you just then million. you maybe us pace TASER what XX was about happened to with Excellent, regards released? to delaying remind XX adoption, can Do at all worry TASER orders the of customers purchase when

may worry or you've linearity that function improvements. of sort made the here any function given there's above that step just improvements if wondering we Just step about

Josh Isner

of Yes, X forecast TASER from ago. going the year XX there, the one five is Without actuals I too exceeding detail absolutely. into much think years

the our certainly it customer on We're guidance but for going our there utility we're path product. to the as shipments. goal And value early and new something upgrades see provides to we're So say year. of well. and managing to would guidance it both speaks that of are paths to meet several I it's very exceed in closely and encouraged that that the year, terms for toward the

So we get far don't to want out over here. skis too our

field. is well one year. do ship certainly offer the that, very a to to want products scales year product And in this as that for high continue other combine quality very all a the the nice really sure high-demand we to we ship we we'll that We make that

Andrea James

Eric JMP. Suppiger Next question, from

Erik Suppiger

here. So a couple questions of

First revenue any I'm that? constraints looks for quarter. What sensor chain factor reason sequentially I TASER a had with And think those the was sharply. various causing supply revenues that? Axon curious, your off, And the What conversely, were it were and like up Cloud happened last you was dynamics? down was that some there

Josh Isner

Yes, absolutely.

next of I We as be be customers might knew the of wanted think think upcoming launch. shipments timing I years product maintaining looked orders. launch as flexibility toward in to with it's our thoughtful end one. a some year And interested just and the and product at away, about the year we the we of a just the couple for

best we we could. And that as tried so to manage

fleet. the supply we're very chain excited to And on see up opening

of a that big in terms the item volume that fleet I QX. shipped in of think you'll notice was

challenges chain that historically. of mentioned the to throughout continue supply expect We We some the year.

X kind and ship and good of plenty tasers, our record-breaking as of We're opportunity feeling storm certainly Fleet course, other having cameras that year about the some of and body optimistic to there amounts cautiously of of most well. solutions this of the we're past

Erik Suppiger

can then your has base give at this how And migrated Okay. of -- us been to of installed your point? idea general much TASER X you a the

Josh Isner

I of XX% the CW terms shipped, don't but over have exact in TASER was front last the number the year, there. above I'd say amount of me, of total of the to X in XX%

I as of weapons over X have the that legacy to, early be X. had from recent think be course, TASER of that are there'll into now we And as TASER the fact speaks opportunity the all market customers. of well. think that much I some more But smart our will that So our to upgrade Rick interested mentioned, moved

many we're as to we So out as very get excited case can. tens there

Andrea James

Keith Northcoast. Housum at

Keith Housum

As we a be of And of the few some in there's deployed. look specific first the data the guys kind past then if weapons, first at we terms coming to that's has been off, second, out, margin TASER challenges in gross of at going look obviously you quarters. those rollouts announced recognition

steps address So guys your you past this you going to rollout to to gross guys issue perhaps you doing and the protect address taken are with identify different have the guys margins. several bot over what years and

Brittany Bagley

everything our the design which happen to product goes manufacturing in capabilities. will half the second we year. how it we think get about I from design when of scale, how we to We've how to the talked

headwind and are TX a of in little margin we the and year. it front. a team of as bit year, the lot I out a careful the it first the calling learned half into the learnings second think margin potential But took we're to gross neutral. and the half get So from we the as of be thoughtful on TXX those gross launch will And

Rick Smith

team with R&D under others basically, is building and prerelease our with new and to The probably major there. we launch to in six It's product a XX additional bit product. the what of and little John the saw Fleet running engineering And we injected regime Fleet, and Graf to NPI. testing and months his validate the running Hansberitz really first

reported sophisticated among out-of-the-box has lowest big shipped but X where And bugs we've the it's product, had product of in It a a X ever off line that months sorry, and very a for X TASER through probably paid in launch and similar. to return is automated Fleet customer rates production any way year. XX the went testing -- X leading very been with I'm TASER highly into

effort we to with expense into just compared company in the So the more lot paying goes is a entrepreneurial come of the level transition we're a upfront still when particular, these reliability without the previously had stability days. of less and which mind. and testing, that to there's able maybe at that more were making in that some but TX the that from to and dividends scale testing challenges mature time, we

Keith Housum

And the restart has Great. shipping?

Josh Isner

will on As in March. shipping start TASER XX .

Keith Housum

March. In

have color Okay. could, use And plans I guys regarding the to then you put just that context in convertible that offering note terms the you perhaps you if or Brian, did cash? of guys

Brittany Bagley

would Yes, as can of of been because course. tell, One, little a it's I bit time. say, you

strengthen think sheet very the to and terms was we bit in capital balance it our attractive time the a from much more Now standpoint. to And to market. opportunistic side ourselves from we flexibility found get a a give

So ahead able we're that. proactively that we very get to pleased of were

And me might have then consider heard in been M&A how think look potentially as we forward. we you our how going we about investing talk partners, ecosystem I

standpoint our sure forward is quickly that And we're be something on want make smartly able M&A to that. find and appealing from we front an when so on and that move to we that going foot

mind. of time lot might everybody's a talking that on an was from spent because look we that about top what of convertible for We standpoint offering M&A

is, support talent indication little our probably technology or goals and/or if And that color really where our a so think, you a we're will historically, good and our product for look looking at mission. history road I future that's map M&A moonshot pretty either

Brittany Bagley

JPMorgan. at Chung Paul

Paul Chung

to mentioned the can of through How The still in on OpEx pace relative that mark about base leverage past? 'XX in 'XX of you to bit follow-up of the operating we XX% to accelerates do longer kind that and term, think another And XXXX. you've kind the XX%. get get a just pace So margin gross to expansion?

Brittany Bagley

Yes.

to at that have we But not not might way we a terms X-year in XX% point. So we at say some okay, out guidance is really beyond of will I meant the looking XX% get go. think I from we'll this XXXX, then get concrete sort where by replace and like, to and to of to start a to really looking in plan that there think we're

say So us XX% maybe but front calling and that and now, to really that, a is in XXXX. the path we we're on we're phasing I wouldn't what out and and what of that's in focusing see actionable right

you takes think interpreting correctly are in I that we've XXXX. got some and puts

And ground expect improvement putting a leverage on both and be belts, so a time more. quantify able we're the gross margin not more our gross XX%. a under we we to with in But that get pieces see Perhaps to XXXX specifically bit little over bit any stake the guidance. to OpEx to do on margin

in But basis right now, leverage it's both again, on driving XX hit XXXX. we're really of of for just points looking to XX%. those And about together that

and on are that all up more correctly 'XX. improvement picking 'XX come of you So will in

Paul Chung

can somewhat free just follow-up be we on you X% conversion there? you're above least the puts on at pretty do hit And 'XX that guys and then about -- the consistently? And then term, backdrop, cash tough longer at back macro target flow and XX% And conversion the mark this upside to kind plus mark. big are kind and that given conversion you guide expand XX% in is Is conservative takes we prior Great. cash in of your relative XXXX? Okay. year think a how of rate flow. Can

Brittany Bagley

that phenomenal we're at would rather is did 'XX, I flow XX% we year on Yes. the than -- reason don't to questions. And the We're free all No, might go that want generation. plus, that a cash this XX% plus is order, that in phenomenal we're those consistently. did excellent less be really which a generation I we'll to look job -- are I if say free consistently. reverse even looking cash you be say at though there we XX% plus on job at flow

percent two look And between actually so average and 'XX years. 'XX flow if together, XX, you on roughly to free of at sort those generation get that XX-ish back cash you

capital things the investing investing some automation. And grow working we continue to in of business, invest in CapEx continuing hardware like that that and in are inventory our to as to lead

might We that cash in We target have number that probably we we're better as level looking looked at back, that over as But for, what right and XX% we think to mean that's some a basis investing flow. on is a and set. X-year do of period, based that, places looked an takes really we've you puts expectation those are years. I annual the and think look on we've our

are we While growing we're growing kind at. at rates of the

right flowing are revisit But XX% at of plus certainly. if we terms free that's through. balance what So types flow growing Yes, cash would we of at the target? growth those we're in anymore, that top line rate, we think

Andrea James

Baird. at Power Will

William Power

the feedback couple with little have of that work, using probably for wonder level in around been agencies device field, Josh guess the use, Rick any I share you comments start going or I've got I if a cetera. comments I'm et questions. either from over month have past a I of could TASERCon. TS-X, you additional a to guess, any effectiveness,

part second we would year just be the as regard components devices for the chain guess with through both I here. move to And and supply the cartridges

Smith A - Rick

So off. start I'll

from great We continue field. to the get feedback

XX approaching or something different had uses. now we've so think I

and and the I wires think one XX broke, forward. feet at something stumble but person we've situation X. the TASERCon, it a running the where then fired the mentioned had was other like TASER I closed in at agency at the that -- of offset

not first We between trained did had quarter And before other TXX. then the yet case and turn as and was we in been in on offered XX effectiveness effective, that and actually officer TASER and categorize second where day one the TASER ran got in an where we art. was the subject second the use not was part ultimately, use. a that it only operator dart that out So the the the and on of it one partial have

from the system away took that we things how we our officers making with partners the of work is all they train and functions. sure one new so And that actually

continuing chiefs since board. good the to the We to major the we're and interest effectiveness. is -- the So news city across significant Major TASERCON, very we with high sheriffs very just presented see County

shootings to sheriff they statement. of number a year had of has I talked pretty outcome one they XX county this remarkable that the fair could this with me and have already ran through year, major cases in of basically had was think farms, a they've every Azure the with changed them, one which

with today was I third of could about have XX that in enumerated agency, city she as one told major them. she alleviated their shooting actually me another TASER And chief thinks her

So to feedback. one I do get United the start TAM since many TASER launch TASERs they the very I'm tour to agencies internationally continuing see because on first an individually talking think greatest growth I'll Where about States. to in and potential the customers. do international some be go we we're don't internationally, the positive issuing international that way the to might

to the don't I those In where carrying public we the a where could their ones are begin XX very reach clear. to TASER of level TASER weapon primary them might they defensive the the on could firearm. as think means see many that actually guns become in have in of And hands countries countries, primary it capability XX But weapon. many move

think your and of let the availability could the market-expanding different but the countries and in going phenomenon. public, continue general the second going take in capability both see firearms to it. culture to enhanced this they really gun of the Josh what part a question? was We're happening then And carry I I US.because to will of was be ready that

Josh Isner

component about it just right, Is availability, I Will? Yes, that think. was

William Power

components, cartridges, does look that like? Yes, for what supply both devices chain and

Josh Isner

Yes, absolutely.

as chain So up ahead product, that. in job has there supply a time curve staying any two a of than launch lot year a and done of are or to are a ago, times always, moving leading team, but provisions our you maybe challenging just the new fantastic less what parts

future. but expand to And year, automation into build capacity our good capacity only continuing more exponentially ultimately, about this capabilities really out our we feel the to our not

inventory aggressively and demand. to and for of higher year, planning for revenue support plenty have we certainly, so beyond our this And year even we're next guidance

William Power

some in of a Great. with across feels like tandem seeing Axon of of I continued What's too. any with kind adoption? Maybe continued maybe respects. other category? continues in two guess, records to there, could I parts traction update on just out kind software, kind evidence kind that driving core guess, DIMs Okay. that, add products strong I of and of accelerate, If to And what just It Cloud. question the the you're respect

Josh Isner

to of kind attractive and the only but core Jeff and but Maybe But the to for of reason product, on years. shout I'll has a continues this will work that out more take federal done Jeff few dentist valuable also one records. to our not and last essentially delivered much it market, then start He's our to the features make to want only the not products ecosystem, give core markets with last he's build the over that the over types out up-and-coming I international. hand team mile more to is question for huge the in a built that

his and customer happy over to to so on that and capabilities just well more that identify flywheel the and will just time. itself has continues more then team those deliver done needs customers a plan opportunity and And executing buy lend interest to continuing to job great more market

the so to on And our dems been backbone it you take Jeff, adoption. And maybe over that's of records. I'll

Rick Smith

where want that this get at buy new a price to it, just bundle one the know great that on I because upfront. everything the more we piece both that's of College hear No, agencies suite simple Microsoft I basket make that agree of choice to Amazon of to for capabilities of and bundles again, the to both in flywheel ad combines both done aggregate and power about and for feels in OSP awesome into easier hardware the attractive, to components continue of the and the make to appropriate to add we've overall very to them to more Sure. couldn't new they tiers building our model And that easier they the power benefits what or also makes as think parts. said, software Prime use they and that subset even with Josh just the continue access

in they as of and price top already add-ons them and aren't logos. new growing on who value yet as basket that, feels of And more ARPU forward, then a go flywheel. more adding incrementally made of a additional are the as good And that and what those programs, free those care well to the like all more deal seeing those and the because for benefits all basket they've feel the drives

be again, growth On continued excited the we optimistic and side, really about the to record both trajectory. and and continue humble

Just the of last you over talked same to about we've using quarters. of sort numbers with the growth. couple

one at that sworn of Baltimore, Tucson we now includes, replace fully that Virginia XX cities legacy agencies major over XX on and this using to point, Records. who officers includes XX,XXX represent over record And product are agencies module already such And that Now almost as and Fresno. at RMS. Axon least their have live the Beach

Andrea James

We left and [indiscernible] have analysts queue the three in

Josh Isner

think shout for will XX on the AJ, the TASER T-shirt and That's just best I the deserve quick, real today. feet call a out from shops XX XX. the

great sense. So fashion

Andrea James

the can So the Craig we're make and top hour, queue, at we of We the we happy everyone. three get analysts the so go Jeremy to Hallum. sure left in past love engagement. have Hamblin, we to

Jeremy Hamblin

business. Congrats on in all momentum the the

I question. a So start just want to high-level with

potential M&A? on that or been at be have terms balance a investments, might sheet, In opportunities, get terms guys terms a pretty investment of what to scale, a strategic whether it's size strategic M&A, has of in robust looking of thoughts I basis you around sense of building wanted on go-forward you

terms is of And dilution. are to get or of reduce at for in you wanted you've the any that get some then a sense, looking accretive to deal future kind looking so not that. to how whether so dilutive sense and forth, I there on at changed or a guidelines of guys comp you're a Obviously, stock-based are viewpoints

Brittany Bagley

question. it's a great Yes. No,

or our about mission technology really either vending our is and/or For us, model. business it teams with that fit in well

that are And so looking parameters companies on. multiple are we evaluate to there

it's of significantly attractive whether that to something at as increase we looking be so financially but across for say our it them. multifaceted us different we is us. through always aren't And not or equation a to not That's sort could metrics. TAM. think It could

conviction EBITDA us margins on help long, term? supporting it could long get Or that growth or to It our margins. long, XX% could gross be accretive

sort our really can integrate ecosystem. companies set a forward. Axon to present really that We're ways as things So holistic and tuck there of we technology we're the isn't at, but looking that at looking into looking find of one solution look we we're

And then I'll is just sort note organic number an that, of number. that really dilution dilution

a sheet. think I So balance strong have we

doing cash from I can would we're If think I going use for certainly were use we separately standpoint. comp expense just stock an internal consider we equity, what to that that. from

Jeremy Hamblin

Great. questions. That's helpful. Then a couple product of

some XX% vis-a-vis what back wanted I bundled of of XX. on look ASP. you wanted first, understanding the ASP a pricing. around higher go-forward TASER TASER So an coming kind basis your But to like versus might get to to get sense, offered for guidelines net kind X, a

be may cartridge higher product. there Obviously, the given use

the a XX. secondly, Axon in on So pretty Fleet. then massive quarter that's TASER one had you And

you've quarter. what almost done a I ever double in by far, think,

much as In many fact, as in done you've almost years.

of where we're just super couple gaining to that really and cycles just helpful. -- traction share? certain more you get color something a wanted orders? be that there now on would product is life I prior Any of to specific gained past really understanding an big contracts there was that you've are Or guys So maybe

Josh Isner

I'd and absolutely. should see -- Jeremy. the the TASER you to the XX over to question. to part generations part bundle get a previous cartridges expect for previous to an say due but there, uplift to the in due of also too relative models. Thanks you, going On ASPs, Yes, Nice we're lot that's number price not and prescriptive hand

think prices what And you so on the website, our to that bundles. from of be will so can it we uplift derive kind I of list published the in type

X, year. in to inherent outsized the TASER should a kind at So there'll that a XX. slight high and any a Fleet like product be story higher this with expect then but you just and with of discount continue of associated no orders with a levels maybe And even and lot level, volume, bundle, that's

great fit. across business. well-built, associated has of software with product demand. it in product. add-ons a product well-designed is market The ALPR fastest-growing ALPR our the is high the one It's functionality

fleet where highest more X a and but which the attached was moment think system, and historically, less surged a largest -- of two system the video got you or safety. to our we the might public parity selling ahead moment I where body remember was cam then the Fleet was became Fleet One then the and we -- really to market in windshield

time ahead. then expect think And we with reach so path parity actually, a of I you products from that's and a can our accelerate one over lot we where really version,

our as Still to Encouraging team highest really the has shape job about X a video safety. so demand that our a the X, really Blake proud and see just excited And and we're done the but on product product system do, manager Fleet we're lot public Fleet progress. there, of take work fantastic with entire and progress to Bullock, of in-car

Rick Smith

power the like flywheel. Yes, is only as perfect pretty hardware us end-to-end economically just of a beauty company devices of that experience IoT not we our an because example of both think one of Fleet an really and functionality-wise, itself the under cloud software and off roof a but company X part can being the feeds deliver then

so is hands released. hardware best down and Sweet camera And that's the up not only ever system straight been car

of they any or can whole a either switch, in front later it thing point works to rest access ALPR, But our to an the we and add software . buy great extraordinarily buy the suite. it attractive makes made that democratize combination flick of the the can end at they improvements the with with with end easily just the to add-on revolutionary to

Andrea James

We at come Shreve Long mute, for off Tim through you're not but on is have we're folks anything hearing left. Barclays. two Okay. Elisa, Elisa

from Riley Josh Needham. to go Let's

Josh Riley

characterize cam more with you It seeing you're greenfield more have there's seems a today? would what in of guys didn't takeaways a as our like Is for some at on growth in have cams competitive the the to officers in opportunity discussions Or body body U.S. XXXX customers. who that with all? you based

Josh Isner

is I of think, a part it's the nice combination Josh, both.

also virtual reality We of more buy cameras course, body sell on the of more by to features new but customers widely. and are see more fleet and continue we more customers, then, to so and top forth. products and peripheral -- in and of deploy existing volumes so And of continue that like high to drones our camera body and

we're number board, think excited of the excited very So healthy very can we're that and mix across And we're and these trend. want doing results. it's achieve of we about I ways types a to that, nice We the about diversify that.

Josh Riley

TASER we remind Got revenue, is helpful. any of of it. be And ramp for us, you your just the XXXX? TASER the can the impact there And then business we're overall if or of that quarters could how modeling around at should That's couple revenue all? products the aware year's any seasonality first as of just

Josh Isner

got quarter. we've deliver each ways like of a to I think, in again, number

path. but And so easier, the of then strong not -- XX, makes our path shipments start it's we course, of TASER only that's that out if with

it's excited hardware revenue We the believe And that our between thoughtful of that growing the base business fact we've guidance been all the very our we of achievable. just software that in about we're have here. and products about so

We XX% year-over-year grow continue to to quarter-over-quarter. and expect

continue that all how sure other of make about we'll very we're our that shipments execute and we to TASER products and here thoughtful So to between guide.

Brittany Bagley

unique Yes. the Josh, out the And calling anything say, would year. I shape specifically, not of we're on

have And typical with really even performance. like strong for so TXX I would us. still coming expect in, we nice seasonality TX pretty

takes And model, normal and I so puts your would say, and for about got point, seasonality. lot of think Josh's a we've to

Andrea James

Okay. time? we more try should ahead. Go one Elisa,

Let's have out. us Rick Smith close

Rick Smith

hard names a lot always And of be other XX, to such you're like again, to people Well, some financial share unfolds. results really scale heard, themselves products our software results the this Fleet to All year seeing be the a passionately in whole I couldn't to pleasure Brittany, of able Josh, really the these you X, to excited it's right. results. working turn and this. how more in. see team, starting as TASER

our some weeks here seeing results of in in lot a things April forward to. few I a in accelerate QX So share you look to be May. coming And then forward as exciting shareholder we'll back up meeting, of We at is well. believe look which to

So such thanks, an for We work everybody. appreciate to mission. on amazing you opportunity the

Andrea James

Good bye.

Axon Enterprise (AXON) 28 Feb 232022 Q4 Earnings call transcript