AXON - Earnings call 4 2023 | Axon Enterprise, Inc.

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

Erik Lapinski

All right. Hello, everyone. Thank you for joining Axon's executive team today. I hope you've all had a chance to read our shareholder letter, which was released after the market closed.

You can find it at investor.axon.com.

are tables build in today and the remarks financial the that prepared meant upon to information Our letter.

to are forward-looking During our this safe Reform made harbor Any Securities the of are predictions forward-looking comments are discussed not SEC Act expectations business differ today and subject discuss and guarantees statements today statements Litigation future outlook our and provision the as to call, make forward-looking and the on filings. we could and based meaning these that pursuant All of performance. to will are of Private These results within our of cause risks statements. XXXX. uncertainties of risks actual in We've materially.

a that video a bit a most tell put found measure in each We website. Every a Xminutes. will about you video Relations well description today, can off to GAAP get It's letter helps little we're you moonshot. us for also of a view to we we To and how under as section reconciliation play of on feel to our the each going what as discuss and non-GAAP play directly this measure comparable our shareholder kick we call. We our be and measure off a love -- together as non-GAAP business. in certain quarter our Investor hits of when measures, closer on start we talked the about our our non-GAAP

up Let's the video. [Presentation] pull

Patrick Smith

to with these you We for quarter understand help to Welcome, the in thank us XXXX another do. everyone, fourth we to those incredible all our calls Axon. Thank of you right. year back videos you today. and great off All earnings. come what It's kick with joining Eric, to you, books for

the ] for emotions. situations that's violence abhorrence day everyone our for seeing I've in in my times safer far of envision proud these we a out energizes We here. made to many past. what to forms we're those reality, [ and over new make world customers complex last we've year. just making but different is a what of is out and are times every this of the [indiscernible] To us brings come our even kinds work. where But about constantly find Some and scenes technology violence trying face work talked thought, a progress the involved really

impending, during the situations. things person a TASER alleviate them that need small their watch-me at First, seemingly like most end help sound a someone for to communicate something with unpleasant warning with XX is an our to other second officer hopes body can a action set decisions the so a that, of adding to of on And the and that rethink adding eyes use all. camera that to request force button proactively high-risk for their will

we've reimagined outside innovative and communication Next, complex voice operations, with body far more decision help our the in more situations. range TASER modern time. the bit enabling a X to probes, real-time XX to technology effective trees individually And capabilities targeted introducing on TASER we thought real effective making box, more communication more cameras our in introducing of two-way

to areas police life-threatening time they do. solving reality, there's speed accelerating We're to of enabling for are we really robotic potentially so in look on innovating and virtual to still security AI system. for extensive effectively that the by As generative in left much more for envision justice entire the the that decision-making or of diverse encounters we force ahead, we us paperwork. like spend And a level challenges better reducing higher expanding

didn't wearing that understand outcomes. strides all excites made what happen of the think and to in unfolded and one have we about huge our would I why. of you, our me or an It could what better just so officer was is showed we I driving think devices TASER not if we video back those one that When situations cameras, body our technology

opportunity to we're of long I future, what hard think today. in working what be by a feedback from on difficult for term to right, We lot you right technology. now things rely it. ourselves. to demand of heavily so customers. not has When simply get we're disruptive were That's what's become than to going it. imagine our it without life rather us the remember the There will challenges like in in becomes quickly before the it it pervasive get the But always beauty Highly it. on it are

do needs present our customers my what most X just decades. time on I which beyond our drive next spend the matter, vision the with years, but of will too, growth the X not next While tomorrow, is I for to believe

our customers about the time us through not most right provide avenues some us us to our and deliver somebody road and for look work we help best with my they with customer feedback come and think our the best the we know product of have help energizes and on the team. actionable is a I If our a meeting way Most to those for best critical people a sure it's me snags to I overcome run the When map, in new they to development, and and brightest us from What at for we with us making into, customers. them we team, is here. attracted have the have problems deliver it's what need. me may challenges

our goes like is and the we're doing across understands into accomplish our silos. Our extends Axon. join We together, customers. forces feedback goal. what we're in relates and with now common beyond part who We team, team together key current Fusus, works company partners thrilled our of don't This

with their been and product people partnership Our really built. they've impressed few with years began we've ago, Fusus a the and

taking to our which the operations entirely sensors solutions time our Together, and founder new next over their with opening time. traveling customers of speak unlock level larger even an ecosystem I'm for will to as real we our and today. we're network devices

a start enterprise drive that $XX it align the hand I'm focusing I on to lead what's energy people a next. up that that is a But we from started. that same able and will each to billion background to would be to best need themselves. CEO a be as the been versions little maintain a important company encourages this and had with over, XX when that my that in encourage like our for a we responsibilities challenge Before driving company any the we've is to as the to my manager. do best and grateful I've to in years, to common founder I as been senior us culture of to atypical What's day-to-day just trusted also other, might challenge as our past more we say I'm a us work. always mission with customers public share I

to provide one last comment something like to I'd on dear near and me.

to have quarter in the few we in plans paused sorry, has the in to of we own We those past to were corporate September 'XX. invest our Scottsdale. Scottsdale last we work we over remain new headquarters in We life. of this revisiting built piece like had business. I after bring our revisiting love our land, summer a of headquartered that mentioned Part years. where would to vision we where or And intent -- working talked been I'm Axon of have campus about and a

antidevelopment. Axon It's wants will as become that Scottsdale [ we the -- to clear However, the execute if it's unclear our product not we environment political seeing and ] challenging get project. frankly, approvals we're our need more

it take a several some definitive next a time result, options on and steps. geographies So may decision have before we're other exploring our as and we

we keep We will in resolve make updated we our as coming progress. quarters the and you plans

their to anymore. Now to also here beyond means in I that a standards. and Brittany on teams focused me I we world-class have And not Josh I what startup people is do sure and viable we need execution. and executed help fortunate execution, know making is that am we're our that And

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

up Josh. first, You're

Joshua Isner

there everybody. be to to and Rick, Thanks believe place better a no good at lot, afternoon, Axon. is than I continue

that the just far in amount, a We civilian by deaths XX-year talented it year-over-year. team of will outcomes-oriented to period. knowing XX% beat good encounters moonshot intact, that number XXXX that's growth consecutive police marked on another than the promising most what recorded revenue deliver our a that step at XX% We of of we and greater our reducing and XX% take over are in protecting building by life coming year and in direction. fifth

billion Body we in X, are beyond, Fusus And which Looking the first and added call ahead of be to total our it's $XX new to on the like and opportunity ramping steeply as estimated of front your grow We're Axon TAM a over by of thrilled and there billion. TASER building team, us. products, board. to XX to together right and I'd part welcome and earnings XXXX is say we Fusus Sky-Hero, to we're Axon, just $XX have transformative

X priorities In next shared X vision over on the the years. Axon's my to past, I've

new our and where two, globally. value through our in health We federal which products into This and such we our the international adoption it, the are powerful number we hardware as of new focused civilian growth We retail has new to technology both existing deliver governments, on to outcomes us segments to Axon This market. introductions, led in record and the of justice, supports rapid product users approach our through care. strong existing see has the ecosystem public framework safer safety year several one, empower opportunities camera, a with in and and federal and space. Workforce customer verticals as ways: delivering as bookings corrections ecosystem within driven call federal new pipeline software customers; invest in the number our ABW, Body X to expand new clear ROI. within drive Likewise, expansion deliver or with and enterprise continued enterprise, finished

is a us the as doing unmanaged market, of org combination safety the for Axon. in gives we care case we Rick believe Health, with within the Fairview is trialing as and to to foresight that nurses Rick's synergistic public in Fusus space continue in the things One Sky-Hero. such safety. products shining wave advantage identifying and no to an ability staff key our patient market partners parallel, innovate competitive you our the world-class lead combined visionary Jeff's next thinking with of our innovation. is two is and where are of when most that to part use for ABW success It's commitment product they in that surprise luxury to the listen leadership their building A and health

Our and high, standards year team bar. a sets our in and yet product new are year out,

I in turn go over some to on teams congratulate and several financials operations to achievements. more Before detail, our substantial it recent like to Brittany through our of I'd

XX the led First, [ TASER ] leap Madden. by team Pat

now And the second then order X. our than we are half of rate Jason we XXXX, more saw only in, by secondly, line X announcing with and X Xx at shipped what after X months than product. product TASER David XXX,XXX led We more quarters Body Hartford is Mesri, in with the and pacing Axon units

they a as these forces, collaboration #joint lot end functions our products the customers. it in R&D, in-between. of And or call amongst in While brave hands happens started we of

outsized outcomes deliver together. societal teams Our

we're see, can not you down. As slowing

in bargain. a customers trust XXXX on But our days us, and holding We from we humbled continue record same shareholders are of are are team that, place proud that and moved our we XXXX, the of and we XX to year, so to up was proud that team. remain ago. equally incredibly end the committed by

we next we're on As play. to like Brittany. you, to to Over the say,

Brittany Bagley

Thank you, Josh.

of QX another year and with mentioned, growth XX%. revenue growth Josh us As of XXXX for great revenue was year-over-year XX%

be to continue to of segments incredibly and front opportunities us. with in We see our of continue enormous pleased all business

improvement driven XX% with In XXX quarter by versus the SG&A EBITDA addition of XXXX, margin basis our to in represents continued fourth year. a for function. our This profitability full largely and expanded growth, adjusted we strong topline leverage points

we talked benefits expect to improvement over focus the before, initiatives as As with see enhanced manufacturing about margins we've the we growth. software going on also the R&D efficiencies and expanding us to in delivering TASER cost see investing strong of course our well continue to to can to support XX, years for of gross XXXX, from from benefits and we and we continued come. front sure automation from opportunities as make keep in continue as We're growth

few. and significant investing in a while hitting operations a nice driving capabilities and name growth shareholder to federal, today and think as future enterprise the we're balance letter, international excellence. in towards opportunities new real-time You've heard profitability Axon also just we Air, read well see for We the for the and increasing software as of operational

we internal This technology have quarter. growing material invest to the positions expanding While well financial we SG&A, our to and remediated markets, have bolstering this including continued marketing in improving continue fact our business we've also address weakness strength, to and teams our capabilities the leveraged sales scaling. our new and

XX% as billion continued I Now quite growing to expect the driven XX% growth billion in strong by strong us the turn has our visibility The strength and or revenue of XX is XXXX. is as guidance, as end billion for for increased contracted for visibility well to bookings year-over-year. XX% guidance total result our QX, which $X.XX is we $X.X TASER to the reached of future of as XXXX. $X.XX This demand

Our margins visibility, strong recurring In our revenue the gross to of year-over-year. was grew also attractive our ARR QX, million, provides which which XX% guide. us contributes strength and with software, $XXX

have net rate and continue satisfaction. XXX% We strong retention customer to

expect which going comment an This the margin Fusus, million, of implies as continued on $XXX We points from $XXX this includes another on approximately XXX impact to million basis leverage. year their of either SG&A margin up to EBITDA gross and financials. well aren't XX%, specifically Sky-Hero of of EBITDA moderate as though we improvement guidance adjusted adjusted

margin. model and out a Finally, EBITDA revenue adjusted targeted XX% of last year, in we billion $X put XXXX

our tracking As from and we're you margin XXXX EBITDA see target pacing target. exceed revenue in nicely our to guidance, to our XXXX adjusted well can

As of and we targeting and and very to We a rate and growth look CAGR profitability. long-term organic strategically able balance just right based beyond, sustainable grow We're opportunities and to fantastic maintaining the that healthy, we've we a investing acquisitions adjusted the model. EBITDA back long-term in have we to business XXXX this we revenue attractive continue TAM Also expect is and is XX% into comfortable Fusus. excited very and margin. a the XX% continue on think represents annual this achievable support have done we're be opportunities, this think while our generating make will attractive growth with like markets in to to discussed

stock adjusted EBITDA XX% approximately dilution and Finally, free cash conversion flow continuing compensation XXXX we X% also target are annual to beyond. and on from expense for

what can As to to we shareholders. tell, we're another great both in all excited and can deliver our XXXX about you incredibly our customers forward We're looking year.

to open that, with like questions. And would it up I to

Erik Lapinski

into bring take Walsh from We're you can JMP. Moderators, from gallery? Thank everyone you. Trevor the first our question going to

Trevor Walsh

Can to give in and missed to component there, it of kind Maybe from how details generally that Rick, wasn't adoption us of vertical how kind as you a new that's adoption and see law rate look experience body given does feel of of Axon for any the for see maybe it's -- camera and you're either the opportunity of user I Workforce curious expanding in. shareholder you Body kind coming and me. that. or are within an kind rate or it TAM especially Sky-Hero enforcement? see what around I outlined contributed far where of didn't as does different seeing. appreciated like Or excuse Fusus Josh And I unfolding? kind how unless the kind the a letter -- There it, just

Joshua Isner

Thanks appreciate a the for I lot it. question.

Axon that's offline. that thing, would roll And our clarify, talk the up. TAM, is certainly section could Workforce first The within where enterprise the more to through Body we just of

some in just launch some a trial customers the hads town and We in event. town. had it terms In in partners of for camera, we interest

will early build much but of having It's also maven-type help is the hey, the that I of customers truly think help so only that how our this public just not and than and in there. then products. build make not build this customers space, year do ran us our much that playbook product about, the successful iterations next on comes to we safety different down we the early brand us in it really from

do focused in enterprise. point, those quite And share on We believe in really but become really the not and so on future that ready will bigger a over the anything what to coming at part the early believe that's our we're on. seeing bookings results. is business. We're more this years do we We're enterprise of bigger

Brittany Bagley

a jump to on And Yes. just bit. little

in billion our a gave So enterprise $XX TAM update. we

we we as to getting in. our largely were of wanted came and So wear that sort trialing workforce where and care how the that's they see weight from it, to And body how of about use really we customers the in were and it lot feedback retail wanted health playing a because they and size camera it. in the

we really feedback what you announced the that's took we provide retail Health of the associates and the they're part looking we're and around feeling to customer in so in solution and to market, able And see. early be where really that into there, the work nurses nursing it Fairview reflected safe but their an this as We updated and a lot today environment. challenges product, facing of

Trevor Walsh

to finish solid a the on Congrats year. Great.

Erik Lapinski

Thanks, Trevor.

will JPMorgan. We Cardoso question Joe our next from at take

Joseph Cardoso

the echo on my also results. congratulations I'll

quarter. like how you're TASER tracking great a the tracking If for momentum some margins touch past the margins, the look looked over it to where you you X off if XX gross about just it's hear But product. TASER you that at thinking take could last So is stability quarters. I had curious left on

been as couple of the about of trajectory you've Just the the how should about for quarters through in backdrop 'XX, for we this talking segment? the the for a bringing a we progress automation, on it rather interpret floor efficiencies. as curious now, guys or you remainder think cost we particularly should if then -- And

So just the curious margin there. trajectory how you're about thinking

Brittany Bagley

onetime Great a of where TASER largely year. we related Thank bit had question. last event QX, of a in had to Yes. you. in manufacturing a batch issue March in We a

XXX by that gross in impacting our quarter TASER margins about basis so in is And this points.

So absent quarter-to-quarter. would look would still sort much onetime that slightly but more impact, mix, on down stable of they be they

to really go how so start where about commentary for improve, into onetime impact our gross that XX. as efforts and them and we comes they we overall, you And that's year, to around the expect get margins, TASER out, TASER the are improving next

mixes that's impact, we're that by then that XX benefits TASER as but an the through from automating in, getting cost-down and go As offsetting initiatives fact we the year. we're the doing line

Patrick Smith

to and Yes. and Moritz that's X. reiterate thing not current X, prior in one more result TASER point on And I was to our hardware whole and under group, TASER just regime to is led validation substantially warranty the as X XX TASER that free would we've this there, Hans And Fleet developed leading the was and jump ABX issue with rigorous reserve. market a the seen engineering out

TASER robust so actually rates. with reliability, we've XX, more far, return field And lower seen

conflate just didn't to warranty sure not issue make So want that I the previous current we was TX, design, TXXs.

Joseph Cardoso

loaded? this should to but the on TASER is like how Got expectation through maybe in just just linearity the curious equipment, it And year. back-end back more the it then first it expecting it, Or happens we subject makes just terms Just Totally half? half? maybe terms terms of automation Not think through bring that in is harp more you're on as year, is is that to the clarification about No. linearly? being you just front quick curious on improvement more XX the Just that Or more of it in the in sense. of improvement. it. a

Brittany Bagley

Yes.

initiatives. number automation including cost-down there's a think initiatives I going and on, the of then

so roll year. expect the you see we And that would in to starting as I through go

impact all it all back but we of back in weighted, see executed. half So half won't be more get those the cumulative that obviously, you'll the as of

Erik Lapinski

to going go We're Ho next. Blair Jonathan to at Joe. Thanks, William

Jonathan Ho

your question. not of of high-level or should acquisitions? in Maybe impacts synergies a with the know products, get the to you I approach the vision either sense but your Fusus with you're giving that Sky-Hero longer-term How ability to just think acquisitions. financials, the these starting to sort from their and we out here of see cross-sell terms just about wanted

Brittany Bagley

and for jump to these acquisitions I'm the far Yes, the and I opportunity really want we're are more will sure the doing that would that than team doing start, for can in. that team I specifically product and we're say synergies.

of to focus benefits in bring want and these I real are said, as the to infrastructure of customers up well our access to having the and opportunity everybody channels access that bring and I market So of businesses think sort we've them teams customer some on we had, there on that experience scaling types and in. all side. they as G&A that to some products opportunity All of these support the as our and really long-term these giving our

a of faster them what And we're in run hoping really so that, doing. to allows lot and they're that ways accelerate

Patrick Smith

to myself. had respond muted Starting I there.

say would they thing is I them, on are highly strategic. each other of The

camera of And think to the so compatible using. any that any want what away of they cameras imaginable utility different want them, our Fusus level by to and of Fusus of that's onto really do we the have can at to customers you that in they I is, want really bring lot and we vendor high CCTV integrated we They've to build market. introduced first-party from a customers. and camera, a sensor every Fusus, Axon them the expanding interface that's ecosystem hey, don't a broadly we different were the were every to building keep critical to So to and it stayed said, of met our with map described like cameras for a who with open solution sensor, integrate doing what open, and different of loved virtually cameras, in that something we're very cameras. And work type we type be has we map Switzerland because really

forces, and revenue have long not world the term, this special the the, that's robotics gun not have leading be the probably in the is XX of in be but both years by the and there. they to millions sending by of guns out, on the are revenue an drones it then of around big whose a from impact, probably sort get secure I'd with impact. huge report term. where people we revenue is is we to a if But or And stop fight. way a it there's and maker think security, little think observe, out term, gun facilities. drone and have people to worldwide enormous teams. more we to we've longer Sky-Hero play you used eradicate more could XXXX we in a say a societal of going one SWAT even to role private mindset this a XXXX to society, space short It's with maybe side, if want And think violence And job tactical got not that going especially person

a job when when than monotonous danger monotonous does a better at human they That's where jobs much do putting and highly a dangerous, in much better can drones job a one we a think could robotics, do those and become those jobs. job emerge. threat And

Erik Lapinski

Baird. from question Power take We'll Jonathan. at our Thanks, Will next

William Power

versus what other along to across back 'XX sense one for key a with in Any there I'm that way kind help the products. Great. cetera, stay of dispatch, vehicle, growth maybe software. just expect to drivers evidence a I video a the TXX to be Okay. are going know expectations for off to the records, components, of you if for could I'm unpack that the get of come breadth different growth? to moment. of so in and et I But

Joshua Isner

think market Sure -- I really thing. And on segment. the it the answer will depends

software think one really, selling the digital of all state management of enterprise to set in for the we're plan software to all safety from key software, place. and local, focused and really evidence officer this bundled that's where reporting add-ons I on

the some And how get in so the of their the literally we And governments, really these on one on professional cloud Internationally, lives. that's it's success first domestically. of for the the cloud true the measures hey, for time. channel about, it's do in first folks time they're of

and some that's of we -- enterprise building but where version for we're place several the federal, just that it's then those years. of at offerings it moment OSP right the more a domestic, course, And arriving that there the we from from might to And exactly and so be starting not somewhere over in-between in next fit that sell might are software sell customers. some tailor-made in

different. in each it happy it. think I us, might be to highly for so to customers place, remain highly in same we deployed the of And question segment, that is end a It's slightly software always and path and being that the high-ROI which valuable, useful, just -- with takes it there get

a that's summary of bit for a you. so And

Brittany Bagley

But was all just contribute on revenue well, next they'll performing the margins. for contributors are drivers and and nicely They our our great really, Will, commentary, gross as year. say to obviously software, highlighting segments would And both incredibly will Yes. particularly be of I year. all I really TXX improving next

Erik Lapinski

our We're next you, at Thank to from question Will. going take Barclays. Alyssa Shreves

in. I think she's dialed

Alyssa Shreves

hear me? Can you

Erik Lapinski

can. We

Alyssa Shreves

you me? Can hear Great.

a kind needle TXX in this Just is it quick it the into VR upgrade? seeing the moving terms new looking demand. of much TXX are Is question on existing adoption? how customers kind training And markets? Is of -- of penetration to you

Joshua Isner

Thank Yes. very much. a question. fantastic It's you

to both. of The yes kind first answer is

time, very not generation expressing XX. end the at of their their upgrade the customers existing interest I predictably for is but seeing TASER upgrading we're to in base think previous will life useful of only customer -- our early an first have been

So we're really encouraged by that.

customer we for Additionally, well. do internationally this private believe and us use some is security, this federal markets open as cases new -- will

occurring. and rate board, so is adoption the which And across at on very the TXX adoption bullish that

a TXX. bit little market response Could that portion question to second about So remind kind of just that's the was? you what of the me

Alyssa Shreves

customers to of nice more kind of now it? interest? Or as driving need of Yes. much a Is the are trial is training it a once they to kind customer have How this VR viewing have?

Joshua Isner

of in sensors for I'd to and big end that a content probably the can these to deliver moment, much users about now say two squarely at year very middle we scenarios. because those was VR program we're training how our the work the different build very to and simulate reliably, it's this well

with move of a build So some -- or it's type are that TXX from, to hey, scenarios. complicated more interactions and how you basic decision on setting these performing making a range we'll at

hand, the strong, So it's we also think field. in of it will training product. in to outcomes safer help course, hand far of only, go experience, adoption very the not But will this is drive if the going

able VR in we're the costume make stationary on relative type or that or with the can the in field. people stress If suits things targets difference the are to at you at in simulate these shooting range, a really at of to Velcro that feel can

And so scenarios those to that. We're it well. very markets. international for We're tailoring federal. out rolling as it excited about rolling We're to out

both of both think pay way of and linked kind the those it's And are where to go we represented one rate market XX well, the we term contract. for TASER of products, forward. So and VR you X get you throughout moving the these offerings by as

Erik Lapinski

Goldman you, question Thank Ng our next at take from Mike We'll Alyssa. Sachs.

Michael Ng

I just X. have

First, outside that? sequential deals just relates a that Or consider then a it have I guys you increase Is future anything normal would call there big to there that follow-up. And is to contributed billion I out on quick record. customer $X.X that or revenue, the to wins biggest momentum? contracted was step-up as in think

Joshua Isner

in don't some excited in was billion-plus about is us. dollars more milestone was you It don't really our bookings, sure. was we're our record there bookings, the on about our it QX team. that business. of big for X-year business abnormal For I share than was quarter booked first know than across there for much so quarter our think pretty that. We but a that necessarily a total seasonality anything And other

that contracted and outperform of and course, that this will that So we're future in represent aiming trend certainly about to itself record year. revenue, excited

Michael Ng

Great. a for And then just Brittany. follow-up

been XX% extended to have guess, I revenue, of future recognized has that if the guys I But being revenue at Just guidance. talked revenue know that of XX% next it you on billion, you ask the not duration visibility all? to it. in about XX% right have that that's reason like contracted why deals? there way the the of longer-term contracted I'm I into it about is Have Naturally, think $X.X sure the XXXX months. XX future seems full

Brittany Bagley

few for that of quarters. Yes, a great guidance least what consistent XX% been It pretty course, it's changed that, the such XX% of next year hasn't converts question. has last over at the to

have general, longer a think trend we I towards some in contracts. seen

even XX I again, -- are correct think more Josh that Josh than will contracts and seeing X-year XX-year there historically, but So longer and me, were some contracts we're now more years.

guide terms future certainly massively But has next that's it nothing for changed terms in having and in contracted in helps strong So year. a giving in of converts of do next a there. think how factor the that for year. revenue visibility I us

see you where that's think I some so through. of that And come

Erik Lapinski

going Needham go We're to Mike. Reilly to Josh next. at Thanks,

Joshua Reilly

I a quick here. got one follow-up and

you If require Or for going customer Fusus customer bit this at product investment that of a day to broad is one is of the acquisition, customer the to base? part your adoption go to is entire incremental little across the on kind base? this look ready your drive

Jeffrey Kunins

good The two. a combination is the it's news of

box then acquisition the get center, of about in turnkey as ability U.S. out even right and then were the ready state change unparalleled we to dispatch why groundbreaking today situational with the from of for gate, ] as Fusus excited across product like. by centers [ and now, the partnering out real-time the crime right the staff that in and reasons so command private a for go one is and moving beginning to partner a and their the enterprise broadly their local well. is awareness agencies of So very to It's and with absolutely CCTv internationally cameras the

a where where sockets, life win those time, as it's information businesses fundamental to And to win is win moments responders about play with and the real-time things and and review the about more sensors, real it possible provide an together happen, ultimately entire and of of best both to the forward glass talk stack work the communications to ecosystem for where part more meaning and a as things incident. we So win more cycle quickly as from help more our to the right occur. they and go And it's can to of our earn -- sensors we strategy first agencies selling long that right resolve open as full operations when they like out of is pane that you've the vision heard us our overall growing gangbusters. box,

Joshua Reilly

just XX automation. it. on a to going And unit in that benefit addition follow-up also to Is benefiting quick then margins? growth the Got TASER

Brittany Bagley

The yes. would it our have, we in think about I helps that's much next say as the capacity. I more year, automation would though. factored we say pretty more it does,

necessarily coming I So wouldn't that. expect from any surprises

Erik Lapinski

Housum Josh. Keith at Thanks, Northcoast.

Keith Housum

some very a you look just I strong in international bookings it don't international. of growth talk starting this year missed quarter. you for revenue little was Could fruition? to bookings? quarter in see come you last it seeing in are we booked bit Perhaps Obviously, you know this quarter how did Perhaps release. some trends unpack that guys the about, that mind, Or a more? I if to that last But you're

Patrick Smith

lot, a Yes. question. and Thanks great Keith,

bookings. quarter So of record was last the new of -- in we're in had excited about believe terms record terms I bookings it super we a quarter, a

country-by-country a some like does than that momentum bit more when to executing TASER XX. just in fluctuate And revenue the lot team it noise around you've of got things is in orders recognition a the writing and little driving I'd market. But of So in will approval because the terms there's of U.S. expect the occur.

in all you're customer cases. a the video lot city it, not national lead cases, wants a need of the a in longer has there's they if to deploying delivery even until government, on In take purchased business, wait implementations times a until So that, the it. because of country, can they some completes testing

amount the So you'll of is sites that and work clearances need amount considerable. do and of to work

sit, say bookings drive to start add all revenue terms the lumpy so on to to fall to as the But -- in long of well. and based dollars be based as to continue will we line as that on times continues number where fall bottom quarter-to-quarter implementations. it will EBITDA the up And from will and shipment revenue

that we're after to and excited see back So got at pay certainly their Europe, of to more about of Continental it. years the an The couple fruits apparatus we're a off. trying the in starting really team of build labor of has wind

of So rec of for has or is really terms outlook terms course be the there the year. will international. over future but bright Nothing valleys some perspective in of in changed our rev the and that, on peaks

Keith Housum

terms time as again maybe corrections Josh, in having? you But then, guys and you terms -- on guys achieving in the you how this of products? you're the well. one But growing obviously, what's new the And corrections release market lot in are spent you the that for And strategy are today. is a seeing and of of success

Joshua Isner

a and talked like currently is indoor we tasers Those a any corrections I fit it, really There's things We in really VR a foundation but in large products Keith. and those of believe are all and think segments, federal. those unique from domestic. we've until and our outdoor, body of large Certainly, And corrections. Fusus, local think corrections the both now, and not opportunity of opportunity corrections And things to not up investments -- fitting great as training international. are in domestic drones, cams, There's potential like about corrections. in we're making, state different for function. other Yes. as a Yes. are

on meetings corrections excited getting a and lot products segment. of new some these after So And of that will certainly, been some with that about interest we feedback is growth in fuel early some we're on that. there especially we've those believe, the of our

Erik Lapinski

Thanks, Keith. Meta to question from at Marshall We're take our going Stanley. next Morgan

Meta Marshall

And you wanted Maybe get update gotten just initially not you I of all talked quotes But business of contributing of that had of drone kind had And there. just them adoption? on once. just update an are Sky-Hero to kind question hurdles about what you kind customers. kind early what an on then necessarily to with just of from or just give second -- kind -- terms drone year. this greater the some in maybe Great. just of kind the maybe the at traction integration of of a feedback going was certain to of on just

there's it decisions. with bit sounds a -- headquarters on Just on little like going

in? on drop do a you're dead of decision expansion city there to make is when kind hoping kind Just of to a deadline the what

Patrick Smith

take me the drones. I'll Let start that, with and

opportunity. pre-inflection again, think a long-term issues are that I think, Near couple of drones sort see that is we there's tremendous say. shall of, area where, an different slowed we have point were term, I

give officer car, up great growing from not at doesn't So their a to drone drone namely then nearly be scene as Drone an the interest they take That trunk, on to fly patrol use drone got the today, necessarily frankly, staring safety get they the standing much to deploy the on they police perspective, a out the you've around. it's outdoor drones, benefit, they right, First and because already and there's then controller. around -- drones open drive Responder, as drone is in the in the way

the Roxana in who Shout doubling Drone fly officers Chula started this. from where think and chief went that. We're idea as started seeing little to can. FAA wants exponential about the in market [ a visual before batter go That as on deployed of Drone the take the beyond ]. of the seeing is really scene this to I there facility, California. to clarity to agencies And that the the First is Vista, it. doing flies double need we're to be from is stages agencies from sight Kennedy drone now safely. gets early in First order It more where of doing drones every of fixed the to to line out single off, Responder digits Responder. year, there to for we It a fly being able agencies really tens able an In

as watching drone distance. a a time, of fly a responder, umbrella, under to the have officer to drone most the the you have want into fly standing you if on roof the first Today, police an

drone one track drone. drones the and and them. gives -- is the drones we've tracking all that Dedrone, We stadiums We've to to counter stadiums. with these have, ability world it in around Ukraine you through ton And a leader is buying the other reasons. use NFL partnerships of obvious our track of with for invested the partnered Dedrone NFL

as Responder. Drone We doing pilots we're have with is Dedrone coupled First where some

actually a drones So a of can instead human in hundred couple air beyond of a the the into this integrated being drone see with space those we distance, solution. watching track can't meters, they

small really going to Actually, for but technical And going a that grow. it be rate. let more year, I for guess a on may a letting this correction drones really to is base. we're me we to It was Jeff pause foundational off the be conservative. think than was me have had second. a growth doubling

DFR. in So exponential seeing we're again, really early growth

the we're acquired obviously for when lots good that's drones, of example, the most a we of one had get outside FCC the compliant we to for when the that but through the walls, here to United lawyers indoor and in make sure under that fly is indoor have so States. the we of a -- Now acceptable very time, bands be bands the to -- being think effectively, Sky-Hero, Sky-Hero thing them able in about energy they RF challenges some discovered were of we to using were downsides of that company big of transmission

state working being which in on the to they build transformative on exemption FCC had local new basis while sell the selling Sky-Hero buy again, an pause the relationships to to that's the on teams can for about actually from U.S. and and near-term So and we But are the a those and capabilities. approval we leading we've to SWAT we get able It's with the really didn't foundation we users, world's tactical have revenue. temporary believe

organization. it of of a compliance. now Sky-Hero part kind we've they're The with international good on is full got teams of part bigger So getting focused is news just legal

compliance game from their kind of upping a we're and So legality end standpoint.

many business very would is say team. They're happening. with they're their, innovation. working I the mean our magic these that. profitable built say I a a young, guys I'd people have scrappy next a small as see design Meanwhile, bringing I DFR. And indoor Not maybe X-year I'd done pretty drone with couple tactical of to outdoor horizon, drones well would the out coming say, X- mind say, over our our stuff some blowing as start years, team, and to you'll of

to able in those use the buildings are and into go biggest the drones outdoor being to on-site fly think I being then without segments, X drones and most humans dangerous able situations.

Jeffrey Kunins

it, talk have who together months to you drone a few to of in And forward That's a a and of where the it a remote Adam about right. as thing one CEO the as really between sort Skydio, actually their he about Bry, being way need newest their launch that thing talked this find but that of And hybrid drone, the they fast go I can other combine pilot patrol manage of the of physical that exciting there's you with keynote as ago trunk style. they the a our is drone Rick also tries who's whole full partners, on They're can. officer a instant and sort DFR industry scene, to their DFR of able then it. in a and scene

various as seeing these fast And so navigating move and experimentation what possible to is constraints. to around try short-term you're while as innovation

And watching just -- this a so space. it's keep

Patrick Smith

all thing another between The want China this the and to do a States last creating thing also add in just actually, the change United more -- sands shifting complexity, the is to marketplace. one I

DJI viable So no passing to Initially, and the we different now not hardware we will partnering DJI U.S. federally because was have with chosen hardware provider, That's dominant with many and partner similar laws. are far very hardware were states government DJI. buy by any providers. longer the

that I just say for like a the see of Fotokite partnered use does a drone to out called would have really DJI company up hardware outdoor to with what recently coming is platform Switzerland Skydio, we that drones. competitive gotten So We and folks tethered case.

short-term next But we to of of go some see going foundation concepts to be things shifts over businesses. awesome couple these the in have the up really So each this firming created from significant the marketplace. to is think years

Joshua Isner

want did the on you headquarters And question timing? new then, second as to the well answer Rick,

Patrick Smith

hope To for to call. a This by We make summer. have decision drug on Yes. a kind has the while. sometime of this

it. to -- get moving So we'd like we're on

Erik Lapinski

next Northland. question take We'll Mike Latimore Meta. from our Thanks, at

Mike Latimore

Management, 'XX the Would relative productivity you within the in saw Digital noticeably in cloud what be growth software. have different there So category, than to operations, contributions Evidence you 'XX. real-time

Joshua Isner

clear 'XX is just growth looking Mike, question, our So it, in XXXX offerings? the we on relative I'm for at to what of are so type software

Mike Latimore

'XX? in X, among those Yes, one more does pronounced get

Joshua Isner

Yes. and to new but -- the follow to feel build to out And the DEMS year. really so me as essentially right my with track ecosystem there, free is for is on continue we're stands one forth. and and thoughts, is productivity continue on instinct to the your built Jeff, But the huge out, we'll out that that into markets opportunity

their a that very, way customers, beared custom product found market with the didn't getting this following whatever we've may the especially think of or in now I of historically new believe market enterprise the very -- the we happy or deploy quite software, over we be. it last we hey, fit. we're years. Customers couple enterprise case early to would feature to with really calls all software the weeks are, And When market work experiences this thought product fewer coming pain product. we the request with are

we of That's and in And where body streaming all do our slots as the And on things one a more part and year. say, real-time well. real-time now And to interesting gasoline is our streaming like, I'd hey, live across the in the camera. product, faster our products. start dump can Respond pillar. product, that, I'm that's customers we which -- the fire live operations feel in Fusus can more we a little deploy to aid and is our between then there, from that's There's DEMS Fusus sorry,

very I XXXX think But each to come in productivity. biggest relative excited about growth short the of yes, from So those. year-over-year term, the will

Jeffrey Kunins

Yes, that's right. Thanks, Josh.

those of exciting. All are incredibly

-- I it's while only classic helping, RMS call is replacement, is it all think the for is up straight vision there really the the productivity things or it reason also of full to it that helping as not why -- includes other be in his our be we product intro, relate about field moments giving minutes and in the and as for communities back officers and saving hours paperwork better time things. doing to talked opposed Rick out to or

fronts And there. story so exciting multiple an there's on

scrub us heard search And for at that. use talk through video has at the steadily straight being video being a to looking up see time you've the of the able and about steadily transcription and and time, been single even long and through body transcription. steadily been transcript adopted a First, for camera of a and

using on top of that new video. one and that as can Just we adopted and functionality gets other more that And now build incredible AI more, things.

are stay up in least Josh Axon On more done module so rapidly those than And announcements in as live including full got but one now XXX growing Records, still keeps that in delight their tuned future who mixing for agencies records, replacement. have of RMS customer of regard, adoption. who we've customer that at with pure a said,

product, Standards thing well full use they've for is As even before of them force that get made the is with bunch their the as module, replacement started alongside, which using Axon of which are the a easiest that to RMS.

incredibly just trajectory the there. excited momentum the and about we're So acceleration and the

Mike Latimore

the on revenue, that XX% move future months. you to little Then versus XX%? that Can XX% would variables the talk just Great. next just XX to contracted bit about XX% a is

Brittany Bagley

revenue. between that contracted And of average of XX% sort inside length it's future sort variable That's XX%. the about contract the of really the versus

Joshua Isner

ship it's would And our current TAP also year? cycle X.X So that is the number the of years. upgrades Brittany, upgrade would say in you of hardware

that it's year these upgraded So the more if versus hardware. then you'll And will that upgrade X.X, and year, software outsized closer hit where all the it's if year be customers an XX%. a is we because that number to shipping see XX% more contracts revenue have next we're where of

Erik Lapinski

Thanks, X last us? Mike. We've We'll a you Hamblin got in dialed Jeremy, left. to at he's Craig-Hallum. go believe hear for can our minute phone. I on question Jeremy

Jeremy Hamblin

the Hopefully, can Thanks. on Yes. results. you hear strong Congrats me.

terms on sorry, this can I -- explanation what automation of to I on that But we margin 'XX. TASER and missed the also terms on about gross that get 'XX. as a But just product half little provide in line, me do in color if you that? of for in bit impact, beyond already. -- Can second Just both just with wanted of the then thinking into of

Brittany Bagley

Yes, of course.

So I think talking the doing XXXX. And margin around initiatives margin have TASER for we're moderate don't about gives well us we'll think that improvements guidance as what as have comfort that. gross lot we long-term beyond a cost out are of then how automation improvement any we

CAGR Our long-term and focused 'XX XX% revenue EBITDA beyond the really the adjusted 'XX guidance is margins. on

Jeremy Hamblin

you line the just in the range terms to doing in goal is outcomes if that, that about total of of the company, product the But like undertake and of what that? kind thinking up, is specific are it following necessarily -- the of not project what

Brittany Bagley

think sort for there long-term we to TASER goal the so you the I have margins is over gross TASER of that XX time some don't than seen. of again, fluctuations in stable out the range But TASER see the a rather you've target specifically margin, that really margins. gross improve

Jeremy Hamblin

one Got it. here. quick then last And

as for of Can of about the X, X I you play out. get you're you success in your playing might sense at a us had and of commonwealth versus at penetration some for timing, Just how adoption rest of with think but XX, know seeing in In in rest had years and contracts versus you you've that how when sense Europe the we time kind look to maybe exactly Europe. in I is your terms versus won Slide rates terms opportunities what that commonwealth. think, kind about, you breakthrough give of point that ago? TAM as thinking this a line X, that trying of out don't

Joshua Isner

it's nice you. I X tale would hear to say Thank Yes. it's and product lines of a really from there. you, Jeremy,

TASER the seeing commonwealth side, On Europe pockets. we're outpace Continental start to the in already countries, actually

whatever had have or the We or some and the on commonwealth where thing is quarter last these that. we the where about like countries, more orders excited path be. here territories in States case really TASER states the we're set may the either they United see side so up And much large nice they're

in markets the larger from Europe, buy these federal of they Some level.

just kind in And you front the so higher build bigger really much of order volumes one white and can with space of are customer you. much a with

believe soon or or do Europe outperform we start so you'll really see the to in year as commonwealth this years. rival Continental the as And coming markets

the the I'd Europe, there's have markets, where we time, Continental trials don't but markets the tailwind think on in really our to other than early starting side, markets I or say start at steepen as few we in will same we've curve pilots the are be need or amongst of say in adopters those of year U.K., really board across very kind thesis adoption and X really were having really the would few through work a well. maybe think breakthrough break in the Australia And on slower next of just expected to upfront. upside it's but that's to zeroed and got we X to the fair that and plenty On We've on commonwealth secret, is, a paid to Europe, going there, cloud. plenty do -- even. cloud Canada. that's where it's In been I slow

the which on signs is side, which work some speak, And although happening really side, seeing cloud think things as we encouraging. the on to still -- So were some there. do encouraging are we're TASER I

see you We'll a few months Jeremy. your you, conference. in at Thank

Erik Lapinski

Thanks, All take Jeremy. going right. We're to over it to Rick.

Patrick Smith

incredible had right. our iNPUT-ACE Thank years I actually, ago. through from you you to fortunate for Fusus acquisition All was home of to just today, with. in Sky-Hero. make one you new Thank our traditional members had of And an to to and to the a going employees stay. exciting Thank And burn and to employees so delighted that really where we employees few of team our our find to important and investors joined work to hear joining. is I'm who costs and because new that those the and they is one buy and want things that a slash me go members team We companies cut we're through to don't money synergies. new

bloodstream are critical and Their inject keep late-stage innovating going. companies back these doing because into They're to mission. buy us continue our are to we're our they that great excited. work. own energy that in ways of sort We people startup We'll

things and we've couldn't capabilities. maybe with Fusus hinting out today, excited investors I I the I was was and to of employees some team on customers might more showing grateful Chris some our positive need our today at all cut So to of be got. expletives for out Jeff new redaction some tool the got I

in May. been for Axon, forward I be of all and a the unfold. can't month, talking to wait So be about Can't -- in accelerate to to the to again brighter rest a here look year wait at it and there's never I you to time

thanks, have great a So and night.

Axon Enterprise (AXON) 27 Feb 242023 Q4 Earnings call transcript