AXON - Earnings call transcript Q2 2024

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Unknown Executive

Hello, everyone, and thank you for joining Axon's executive team today. I hope you've all had a chance to read our shareholder letter released after the market close, which you can find at investor.axon.com.

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

During this call, we will discuss our business outlook and make forward-looking statements. Any forward-looking statements made today are pursuant to and within the meaning of the safe harbor provision of the Private Securities Litigation Reform Act of 1995. on guarantees expectations of based and of are not are future comments predictions as and today These performance. to All risks forward-looking materially. results and to differ uncertainties that statements could cause are subject actual in discuss our We risks SEC filings. these

section letter We the measure description each our A in can of of non-GAAP be non-GAAP financial most Investor the shareholder reconciliation of measure a found will to discuss as and directly also in non-GAAP each measures. Relations well certain as measure comparable website. our GAAP

Now our update. turning quarterly to

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[Presentation]

Patrick Smith

today. Erik, All quarter One. Quarter you, our to Second video team is shareholders am Welcome XXXX with the and Earnings of to some Call. us customers show outcomes proud to all to great to thanks Draft another right. highlight to report of our I Axon's and Thanks, that our you again and joining analysts delivering for incredible

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before. You've probably heard talk me them about

intelligence. the possibly and is artificial most First significant

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shifting. feeds, single Therefore, pivoting to sensor and technological, console and command-line glass. are in pane human lies will iteration, of approach a both on multiple We're not software integrate from into focus data innovation, This Strength dispatch fusion instead we AI. unified

our are our has down on unique Acquiring investment. progress, and to capability technologies. innovation align refocusing with Fusus emerging given us we platform to this we're a Strategically, the accelerate doubling

and experience enhancing this embrace for new results to decision-making to provide plan improving fully We're deliver integrated critical the excited map Fusus and to real-time communications. our vision leverage exceptional customers. information, We

acquired and in their the announced drones highly Last ecosystem. niche year, Sky-Hero Skydio, ecosystem robotic of we or expanded Lastly, we Recently, DFR with each space. an drone about Dedrone in enthusiastic as DroneSense, leaders first responder tactical security. and the robotic the partnership remain we

first expand and acquisition most dynamic We our for year responder programs. to comprehensive forward advanced to completing This the look drone Dedrone space. collaboration this our as solution this later in offers of footprint a further

across problems for these board what's of see are matter. immense excited the stakeholders achieve validation strategy. solving driving updates believe our our we real-world to I'm uniquely about outcomes, as I ahead and while positioned remarkable value that

leads over who you quarter-over-quarter. guy it execution Isner, see me let the the to to Josh over that, you. phenomenal with And turn

Joshua Isner

celebrated lot, note. XXXX, personal In carrying smaller, a much to [indiscernible] Rick, June, cap afternoon, on year Axon everybody. was In remarks a a I'd million. anniversary today's of I my Axon. Thanks work market and XXth at good $XXX like start

thrilled of and to team a Axon tremendous of Rick's a It a today, impact. is witness to is results long. part I terms been leadership much for and driven in And vision in lucky by size that testament individuals. this talented group mission-oriented the different of feel place very both and so such I'm to awesome have

great delivered beyond. QX, seeing about that half the we and report to in team momentum again second pleased are I'm our in the we and feel

on execution continues Rick on right in and long term. the direction, make and over we to have headed While focus us our ensuring our the the focus right to to help achieve vision vision we're sure continue team my time that I that

am few quarter that I excited from I updates share. have the a particularly to

second that we achieved just ago. $XXX our few revenue over First, represented a full million quarter revenue, bookings. year and It record revenue quarter number was in first our with a years

business, largest-ever international state customer, are in booked with an We we closed $X deal, momentum. new our corrections our over a billion U.S. our uptick seeing largest and closed and local contract ever in

weeks just Our international our contract last And year. records of bookings couple year-to-date that are we a ever largest ago, signed XXX% segment. versus up with

products. where are on detail seeing some our share demand for briefly we accelerating I'll Next,

scale shipped, is fastest Not but each over at TASER Xx our quarter in shipments introductions TASER only past the new rate year ahead. to have is long a ignited. the selling over and device been the XX able units the eclipsed TASER X more we've side, XXX,XXX runway demand have launch. Our We've on history. pacing than since we of order

Something state particularly and outside from TASER X local top our U.S. find deals encouraging our have customer that base. I come of here is customers XX

base international We and also have user but XX see our The segments strong from order and for as like customers well. local, in the within from a [indiscernible] we massive book federal, is strong TASER TASER customers other across board. demand state

body our adoption premium Safety quarter. options. the Officer Axon TASER In premium Officer our of shipped single is Along ever included set X top Safety a of software, deals Plan cameras in the X most we of Plan domestic as in QX, our expanding and XX with we've growing XX, quarter Body shipped

success indicators Finally, software our real-time software sorry, within of operations drones and -- we robotics seeing revenue or business half the our the AI investments supporting our from I'm in of and newer almost in areas revenue are drove revenue products, early from QX. in growth productivity,

has product Draft to Early traction example. any from One of here. do is One products launch, months fastest over the for will demand great One generated so. Draft million $XXX pipeline, X We of software Draft believe like grow Axon in the since only In a

and sustained are positioned we Halfway to another well deliver year growth to pleased through be of year, the impact.

to on and next nobody play, letting we're up. However, is the

bookings to campaign. we do XXXX X that on number a over the show similar entire The relentlessly in to excited is have deliver the and focused We we're second team what the opportunity fantastic achieved can next half. months executing, in a we

you, Over to Brittany.

Brittany Bagley

Thank Josh. you,

EBITDA. on that same business had in am and We highlighted, adjusted our the XX% segments Rick the I we impressed of and we a Josh our quarter. by ecosystem. particularly powerful strong XX% revenue both great comes all top As grew from growth delivered year-over-year year, quarter growth driven last

problems, in customer-centric which and to solves you innovate, see results drives those real Our us approach business. can the

XX% year-over-year. fastest-growing the remains Services & at Cloud segment

shift out with and growth before. year of software XX% and Our continued year XX% the QX, revenue services mix and coming from to in software drive up stands XX% last from has

contributed our performing growth are TASER early sensors XX and Axon Body X and year-over-year well, and TASER in impressive in innings. These XX% we're an product categories. products incredibly still both the also

maintaining XX% XX% contracted which is Overall, approximately net And billion, year-over-year up million $XXX $X.X revenue ARR sits at revenue year-over-year. our of future while up is retention. XXX%

Along the XX.X% NRR. by of business. was software in as TASER business XX well our new This margin we in supported the as helping points Evidence, by Axon automation are strength talk Adjusted about our products consistently drive with year-over-year. mix in benefits our of increased gross basis continuing high

of was on for margin strong in gross the expect forward expect We this gross At the better-than-expected level see point, the side, to our our overall remainder demand margin the a offset partial around for this stable though, segments and which the inventory gross sensor older quarter. going to given of we these cleaned some year. margins for up ABX,

on investing adding TASER business, manufacturing scaling to new and cartridges acquisitions production line, as our profitability in This integrating facility has Below to capacity drive the we margin to for as R&D. focus and deliver to both top growth. our and the increase line successfully devices on continue a gross included well

our and been which million, highest $XXX level up We've was grow efficiency. gross surpassing XXX while invest quarter, business points margin operating X operating margin EBITDA over revenue, XX.X% efficiency the Increased the to years. in able adjusted and year-over-year driving to in basis drove and in

also $XX cash XX% free in cash above flow had leading the We flow. adjusted quarter, free conversion of to million

Turning outlook. to our

EBITDA. both We are pleased adjusted guidance to on revenue raise again and

$X Our to which to it's the annual billion strong from the represented XXXX is revenue strong billion midpoint. pipeline the billion, guidance which performance of our saw of the at prior full and billion, expected annual increasing result guidance XX% growth half year of $X.XX represents approximately $X.XX QX to is up in XX.X% the This And a at year. growth in midpoint. we second the $X.XX

our an XXXX at XX margin in basis adjusted $XXX of guidance and performance our year million EBITDA million, from our midpoint. of adjusted the the million $XXX $XXX points. to implying up guidance to adjusted expectations The million, adjusted full remainder includes expect XX.X% for expands is and EBITDA of EBITDA by increased margin increase it This year. the QX better-than-expected expected prior in $XXX We our of

incorporates we current immaterial guidance from adjusted and revenue of Dedrone, with Consistent still planned our expect close an quarter, year. in impact our which EBITDA to amount of margin last acquisition the

a record incredible and Dedrone the I have a partnerships back we I'd saw strong of the we're cameras, and of body and and generated team TASERs number our remain board investments our proud the cash track to of across to year thank give this we half for flow, on into to strengthened strength making Overall, the to you additional huge it P&L, close want drone pipeline made quarter, on quite numbers. record for the all bookings happen. say shipped

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

Unknown Executive

everyone. Thanks,

Jonathan in right. view. Blair. so I'll off up We're Just gallery a with going William the start minute All to Ho at come

Jonathan Ho

more bit the another just adoption point? Can about AI to on of now? the wanted biggest commentary, sort strong I incremental maybe performance add-ons quarter color give little maybe where excited this Congratulations but and applications, software driving of results. what some inflection you of you're and are definitely quarter a most biggest going of of the forward. on appreciate the What us your see are what what's the get you a sense the contributors

Brittany Bagley

from contributions then our increasing to terrific the our products. and over But made growth seeing excited turn incredibly both to seeing know Evidence.com categories. continued it we're the the I I we really this can this. out other about suite call software we're start maybe Rick, across who those quarter is other from that's in And product, growth but also of board that

calling out pieces. productivity and those AI So all of and

We did One. call Draft out the

we're over it's in million not contributing $XXX While the about pipeline, quarter. incredibly actually to with the in excited pipeline the yet revenue

that products increase talked big seeing excitement So this to you're really quarter area be a about. continues from the but forward, existing tremendous is coming of we've the going

Patrick Smith

Yes.

might more current of of stabilize, breakout Jeff they're I'm in and kind the Jeff, sort as really spending teams. leading of them, to tend speak I the as bigger, software. large is well then on have me I as the edge time you by the detail the things personally briefly, and Let sort leading and of of my time little less focus on our speak a then, the

is XX nearly Things cases. easy in a -- frankly, space interesting some Draft is The magical really ago user One now, impossible AI is was right now. experience. Obviously, what the in like months

actually, was Safety access -- exactly February, I -- was the The large first probably in, in to And Texas a there's of Texas a with "Oh, work" accent. Department I no demo. were way turned time Public an it in at given this I shouldn't agency saying, it a at was doing I I Texas think, will beta. doing on have got they East

And don't they each And teasing said, know. "Well, started other. I I

literally, have completely nonlinear He Let's have come best And Live. answering on up. And questions, Saturday kind all was was going voice did this been sure the try the be of guy hillbilly disaster. to we like could place. was I officer it." over Night this skit, it's a

shocked seeing board. just the seconds. from like how across AI was at professional-looking of And the nonsense I literally that the in a And reaction XX well turned customers into report all we're

alone some from had justifies Plan. We say that customers Safety for savings One the Draft Officer entire time the paying

time write kick -- at for So not these contracts the things, while it's [indiscernible] revenue of because the we nature of to take in.

a transcription. One Draft I is brings think real accelerator. It

You need respond. to have

to to You up be ready have the to push wireless for have able to the this us have connectivity it cloud, in time.

products So with it pulls it. other

we across the now emergency there's imagine moving a the then other our at product our just priorities. a the are nimble AI entire that are couldn't priorities stuff development are Jeff customers now I team board. moving justify and researching our we're so we of And that ago changing now said, you, top every even kind that down what working and we're possibilities across that pulled I brake said, -- sat on the year are we that things the whole to of the and now top suite is would of business, tell and

want So else I have that, with add? don't you Jeff, anything to if know you

Jeffrey Kunins

Sure.

core unlimited and think both segments, product it's the Brittany but as the strength records productivity those Draft higher all question. and redaction I add-ons and core of the back is standards the well, like diversity our I storage is of the strength all tier of pipeline the mean, it for core more of and things, the lines and always transcription. on plans the [indiscernible] and [indiscernible], across that all and growth of and One, things, more think thanks, said and of it those whether of you of Jonathan, access to but continued higher I universal beauty like third-party for whether and it's

of the And respond, accelerating everything strength the Fusus of then board. an the RTO and VR addition course, existing and and across of

the interesting our how diversity growth line. So is is I most that thing that universal across the is think product the of

Unknown Executive

We'll next. at Thanks, go Walsh Trevor JMP to Jonathan.

Trevor Walsh

up Great. the to for you think in now but us reiterate you've now. Can some that It's you, international talking Good opportunity while feel why sort see obviously been XXX% seems be give a gaining -- bookings quite to quarter. anyone else, to maybe Josh, the a in. of you for about free, maybe speed? kind the just international jump theme of

might of more turn maybe And you that then how that further negative? going of the headwind even globally things might either help or accelerate those depending on if to dynamics answer increase everything are kind or there, things kind kind kind make there just of towards that a -- of that geopolitical-wise on

Joshua Isner

Thanks I'd couple convergence been really couple of Sure. working for right. we've things is the the now. it's years getting of Number a team a that Trevor. of for Well, question, one the say on

had. the managers. with international not team of and our historically. intensity is think of new in showing the level this some And but made Europe, I additions think only team I new some some some than We've we've board strongest we've CRO, Cameron different leadership already had that's to of country rigor the -- with new across in kind Brooks, a XXXX

that. excited So very about

to around is the I allowing think core and in of restart of XX interest conversations TASER markets. number it's adoption. driving a two, lot us TASER lot a really And start

the I there think direction think market internationally. of the we've I more grow markets the continue to is especially opportunistic cloud been certain and moving in now, And pipeline.

those X really are big the And I think things. so

making the is a places. kind effort on of continual The one sure that is right last we're focused

time, we is investing in can doing job have we off-kilter on executing historically, the in those we areas, strong a places a of affected this And successful. think those the conviction great we're in the team and And geographies. in execution. and be that's gotten little locked are we've times in our at volume point think opportunities, I at with I really

we're And And so say really would own field. this opportunity into like the territory think still the very especially ton build of place this to to those point a of here. now. got in with of ton seeing are internationally. all opportunity we're low contributing here future great essentially results down team whole I here, the international I a going be the on to is factors We've our looking our the right in and much results year

holds future for about So what very the international. excited

Patrick Smith

was as jump met past Josh, if government where I very in in a in no now I cloud could languages French it until [indiscernible], AI. models XXX Draft just country from months a large sweat. do a we're showing Europe And without everything fill problem senior with able underlying and something leader like the is I and different One. look, they X well, up the because that's had breaking in handle Continental heard it in to language OpenAI,

said, and had understood like I is like adviser the And me somewhat value look cloud It's historically. changer. presidential never -- of I've game this this been I've at but the a compelling,

think massive deploying the cloud into of when just complexity at the all [indiscernible], you and connectivity that. about AI eases scale the And the

we've been So almost cloud religious about our forever.

In our and was couldn't they the early customers us told it. on illegal, the cloud U.S., do

now ubiquitous. we Of it's pressed through that, course, and become

we've very cloud, taken but stuck resistant Europe been a to They've our harder. longer we and to thought. guns, it's than has lot been the

a to services few a will Draft enough it very the some we of that early could game One real pans cloud reactions of resistant world the rest [indiscernible], the out. been see think that's AI and the seen months sweep over in tip to still it are and if be the be start through That it. I changer you'll new to like make but this haven't stuff is theory,

Unknown Executive

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

Joshua Reilly

QX ARR the commentary pretty -- echo did noticed quarter congrats sequentially here. as just QX million in with for a record the timing premium down very of I'll that I you right. added the last a would to it assume quarter robust matter year's bundles Is All that here. -- from on you strong $XX sequential QX. I $XX growth last in And million QX. simply ARR in was the I demand add from remains

Brittany Bagley

It's got on as relatively you in when Yes, the light revenue we It it. through just go depends the new in bookings QX year. on turning were starts and the timing. quarter,

see quarter. just you so ARR that this into in rolling And

XX-plus and So any We're wouldn't that. I what read ARR growth than it still we're number, year-over-year in percent looking into happy more really that that's the at. with

Joshua Reilly

should for there's helpful. considering. here there know trajectory about been the we should That's it. And TASER a some year? bounce that of in back nice gross Got factors TASER then thinking How Because had the swing margin margin balance gross the I for be the we be QX. maybe the

Brittany Bagley

around think was at our you're happy margins seeing to stabilize now. starting generally I to are Yes. I say levels the them

for segments overall our And both gross so that's and margin. inside of our

the So that been bit. hopefully, quarters in seeing some is stabilizing past of a noise we've

And some you're the talked online, I say of benefit gross about automation coming the benefits in we've starting of this to margin TASER that see that. would seeing and you're quarter is

just as So gross you'll going And up always then things see little think both through inside the the for year, benefit bit, down overall does to mix segment or move I and a the margins. go forward. we tend that

Unknown Executive

Cardoso Josh. JPMorgan next. got Thanks, We've up Joe at

Joseph Cardoso

for to follow I just the just and on guess wanted well. Congrats as up. me, one I results

you the think, about it exiting seen talked like backlog opportunity last topped your that, XQ XQ, heading particularly given the quarter, best into I and seems comment bookings you half. or Josh, pipeline had back

the half? like flesh here? out I back what's specifically, any of a guess to or particular your where driving as seen can customer basically the just big pickup it you pipeline portfolio a there bit the relates vertical more this and view going parts Is you've driving that's perspective into that conviction

Joshua Isner

thing. the strong. very pipeline the Ultimately, question. is Sure for Thanks

to is we the them one and something the bet sales have it we that's of a company all -- like in sales comes day. and I have the sales on company, The that our teams and just look team team. team how would conviction industry. as best down it and in strongest all this as we track a is course, Of And accurate

to are of to that to But QX see in across next everyone a see the is everywhere going going And think And are really pipeline names We I we ton so conviction the pipeline half massive back what in. importantly, in the QX bookings. a the more have to terms the and have of be team names up here. I belief I and think pleased business. puts

Unknown Executive

Thanks, us. someone next, Lyonnais new We're America. Bank we Jordan to Joe. to Up Welcome, have take at going Jordan. of

Jordan Lyonnais

market, amendment On particular, partnerships was potentially added with that does that the drone If the ban. lead could it change NDA in were your to through, with a drone how DJI go to Skydio? opportunity

Patrick Smith

Yes.

and secure, that basically management market been data and leader. up. -- the it would market strategy U.S. software So say be Jeff of DroneSense our that's take be software use I'd And through partnership to currently flexible. has has I'll of on that successful. created DroneSense, very in been DroneSense be data able dynamic around one more the flows terms to now could DJI software. flying until if drones up their then drones number been our leader very so anything Chinese and see to in and is the needs hardware [indiscernible] clean with with We've

in have clear also Skydio in of market Florida. the instituted already the operator the intervention. They're to in themselves some without globally like leader being able is bans The terms clear drones states been hardware U.S. And autonomy fly leader.

combining partnership, Skydio new this negotiating Dedrone. around efforts the and best spearheaded DroneSense, the really of Jeff so And

well we this positioned So pans way out. either we're think

now ban. a like at DJI. It been that looks movement federal a was There least paused towards on has for

anything the add? bet betting to for So outcomes we because are outcome, best that's either and Jeff, we we you on on political think I strategy and think we've can prepared want not can't got those. you'd optimized

Jeffrey Kunins

sure. Yes,

down rocket that hands and And drones drones for all and is rapidly to role in talked think of and the intend of agencies to supporting of these they're across role multiple a workloads quarters, broadly we another continue ships. robotics bigger one like bigger the doing. in public play about accelerating I we've for safety robotics

important stack. And responder. that, this one the that of within of drone need the right DFR of is of most the whole aspects of first combination elements category as or And many you

and You need stuff. the the piloting right right drone that all need you hardware,

You protection. you infrastructure need the right need right need you mission docking right airspace the the and management,

are the just so with we and And that as with Skydio, we are, around together and leading far, in thrilled [indiscernible] and Rick additional confident the world announce over together And others, unquestionably us solution there. partnership U.S. steadily end-to-end U.S. we them big to hardware who said, the for the agencies this are comprehensive by is manufacturer. and best

we workloads aren't Plus of and all other partners, together growing. to in keep our with Skydio and yet support, continue to other that on going the DFR drones, it's

Unknown Executive

next, everyone. Marshall at Thanks, Meta Up Stanley. Morgan

Meta Marshall

further Great. detail. Rick, maybe

pull-through You that additional lot of there guys a would products kind One. were talking about be of of with Draft

data or do question. you you That's announcements we'll Just -- or next the other it monetize would over in of that the in? that Or can you kind were a year? that through you give hear sensors were about a you bringing other months sense of like how main amounts either you product would in bringing mean of monetize X

Patrick Smith

rely any of new on So does not now products. the as monetization right

our the you cameras, And So need One cameras. got Plus, work, Draft Respond those body body have connectivity you've for with to in to order layer. which then is

You got sit is get that the so LTE we officers your data reports, to by so turn can service lot a car, over cloud the secure the of write ready. on stream the time the their up in into down wirelessly patrol audio where that to you

Draft add their an Draft have contract to feed service open opportunity. going the causing opening happens, and you're transcribed that what transcription the we've One creates need that's AI then model in to And is -- seen into time a our is contracts that so -- that course, agencies to of that you Then basically And One. any so One. it rewrite, we write now Draft

in is industry important effort dollars. that the through budgetary almost than procurement interesting an of expended is amount just going This more the

if like be So that should going us. this, we're in now? a with there's of, sentiment through a through, and okay, think their opens to Because procurement, we I customer else evaluation, more minds we our let's do looking what were go general find let's go once doing they to at

And then this speed also happening, happening which of aware across I tech shift they're the society. at just that's the think is level -- of the

or we're -- OSP our sort I a to necessarily so not kind you're you up stack or them Amazon for it the And may we're think much to of know make -- may use them. way things of are may don't you going Like across for these may but to you where Prime. -- use, like videos try how derisk use customers these or we even -- easy there, the acquisitions for in free packages set of if they different not seeing the

hey, to out. understand figure have to here. all It's like, lot a it don't There's you

you you'd you. go Draft OSP figure that. One that? we'll together to of out I for is just valuable want plan, kind on Josh, accelerating anything the what's is to it If And there think add

Joshua Isner

the No, product to up I come the for increased problem. an in described, that like product solve opens one adopting fact additional value just next think the beauty, is often and Rick

in mentioned that the and transcription Draft extent. real-time other in to will market larger I parts operations of the participating So that business. to bridge from One, and a think see Rick respond to we

between there value additional I think problems. AI drive solve other offerings respond opportunities are similar there and additional to and

the solution it leads So fits next. to nicely think together when I really one

Brittany Bagley

announcements. that asked you Rick teams The on and that I would just are given the to one I'd working the about say products also. new enthusiasm product you new and Jeff can add actively thing like imagine is

we for go so in new the yes, that develop we this stay And in like, areas and future. tuned into

Meta Marshall

follow-up Brittany, Great. And maybe, for just you. as a

area relative but just quarter, the particular I'll of mentioned U.S. enterprise a any international off. and trends federal strength, and and strength guys it kind just hand during as of then between You

Brittany Bagley

I of talking that been think Yes. our enforcement just that has mean OSP, and I continue continues about move the law to the to that just up of ability those you to numbers And really deliver. on migrations. upgrade, terms to from incredible the making business team things all put domestic to see in

wins. corrections we outside, traction We're wins, seeing mentioned international we had right? big TASER are Josh especially But great with some XX. seeing

LE Some that outside deals have of our business. domestic biggest been

parts traction so investing the in. in really the been nice of seeing we some of markets And we've are other

Joshua Isner

well. I as might there just add

local, I is state about really historically, federal, where enterprise, and think be products state whereas and talked is them different into and upselling a market. than for we and what to little that local this then need good international new at really, we've think I building

the as first into the levels think that that in And varying I about But markets, -- think them very of the products still and markets. built team Draft and a that. a and we're I of taking other that, it's job of motion. team new of is product doing international, the selling already same those kind it's great enterprise. at federal example One across is we've In nice And

of the adoption the next there, next leads one from And to next. product and the and the

those job local in I the our So think of X and really it's between parallel. very of on doing state but team motions executing is different nice rest a and business, the

Unknown Executive

Housum Thanks, have with Northcoast. Keith Meta. Up next, we

Keith Housum

to echo a on I'll I guys, successful of color One, been you for provide can months. Draft quarter. can color Perhaps That's belt to equal some for several understand Draft hoping under on Guys, you provide you appreciated. Fusus. like the but Fusus much that's some your similar you guys here lot for did congratulations commentary One.

Patrick Smith

Yes.

maybe that first. take Let me

commentary strategy. dispatch our the that there of we're some heard pivoting about You

them. what we systems the in And dispatch brought so learned, X we elements core learned And have agencies basically live dispatch. experience, is on dispatch we've what numerous

are to XXX about the dispatch they're and in, where system. comes phone somebody a the line it the big caller basically then got up command think Two they've a call types taker picks of ones into console, a

called relate and police those a to dispatcher, field. is it person the in they then That Another reading person a is officer messages.

Also in where that CAD software tries software to is a mapping map information. together different bring the

rapid agencies, SOS, is So one on most the X, cameras are at which is because what Respond phone. body calling locator, frequently you've might cell a learned Axon X maps people the your for who are. as is where guys different vehicle X, phone you where an got There's locate have we've the opening now cell they're or

learning console to So how do change. to job to X take learned them their different to codes. what we year train the software, -- Dispatchers very a or difficult dispatch months in drive the

is an that much so we what drive not area is could learned And that, we innovation.

basically, want agencies In there. we don't that new of launched fact, we the anything first said, each X

-- decision, I going your Jeff fit not to You've training, software about hard a got to which existing and but rebuild it scale." we talked to "This our sometimes it's sat and is and said,

everybody what has CAD the learned little and geospatial the it's take been over extremely to providers, we and has to Fusus, from different. business, a But able rebuild, it demand been strong, a does we've If map, signal there many display. fragmented there's Fusus the different have

time Fusus. live an area brought, I know, XXX in X that's console live the where we in don't on dozens software, So brought we the dispatch or agencies

actually we've be So pivoting our CAD whole Fusus-centric. is very now strategy pivoted been to --

information Fusus can customers, in -- can at know third-party interfaces are dispatch We're we from existing we They're with cameras. map experience the bring everything And bring like, one bring in very interface. really is into the that Fusus. community. the not okay, in world They into think on in best the cameras together They the interstitial they map can good. based bring this. connections

away Fusus Fusus-centric. replace we're of to and our real-time begun ecosystem be experience. Respond We've, whole And earlier already year beginning fact, in parts And map. deprecate basically, the has shifted to with so it our shifting communications in this really just We're from very own our excited. that

Jeff, might So anything about you missed? want else I is Fusus have add that to there

Jeffrey Kunins

fulcrum Fusus journey their the I talk And the with I think just we just hugely think are customers think time. for they're I long I that's are board. voting are. as feet we bullish about mean the as me we're heard on. you've for -- It and a on across is spot --

moments, our operations is fulcrum able stuff more meaning more minutes glass the now cameras, more are conversations, journey moments. that glass the between on happening sensors, of another us way more accelerate our that being of of real-time management of ultimately, or and sockets, one journey. Like Fusus. incident collaboration, win to real-time intense panes our sensors And and cameras they more our meaning X more and at win things: pane More more more sockets

Joshua Isner

about is thing right and just think momentum and might that also there super enterprise we're is super Axon And the were represents customers the before, to as motion the for opening in this add the the very the a in that Fusus and we're path creating then our it's from [indiscernible] opportunity has of down what relevant be us just excited as could of to adoption and body enterprise I that enterprise for road. product one safety, I they we first about well. in a much product excited additional space lot now about door proven talking that that that, within and having awesome buy well. so that And and cams public solutions terms kind be of Fusus

Patrick Smith

Yes.

Let on me down double that one. actually

Sorry Keith, but you detail. to keep wanted more some going,

Yes, does it I a business. a that. oh, Fusus, third-party like to connect as, police So initially thought of helps a cameras it department or this school

their all these decades, private facilities, their bunch is manage facilities. businesses, to agencies there's or hundreds And even over many different been different some really we've systems a thousands own the some can't learn But of have they've own last interested enterprises, installed big government in of that cameras. large are they and federal are

with Fusus, they in. the they use can They basically of have same and sort appliance, can come don't all. But in to plug reinstall it network it

agency, to to you Fusus, have could partners. be aggregate so private, they they safety those can able cameras. public public it's to suddenly, a feeds With have their replace themselves go and don't large whether it And share all or

their addition think So I able is think, add to the being with Fusus coming terms And don't of know Brittany, partner that's to you having the at in I if are that in for own I on to where We're looking in. want magic agencies. numbers enterprises this. internal anything use

Brittany Bagley

group in going I real-time about. heard numbers for in covers think the Keith, And we was quarter. throw that some XXX% talk enthusiasm the share the to it is I that, operations us, team in, grew Fusus did you our over but well. as

outside and in the growth continuing Evidence.com software to piece. well the it's that's be So to of perform that contributing really of one segments

Unknown Executive

We've got Jeremy up Hamblin next.

Jeremy Hamblin

you this could actually in a wanted And category. opportunity events timing interest more Apologies I this. of or wanted and as and moving of seeing piece sense in kind potentially of any space, acquisition if to to whether in already the of just through somewhat and Skydio this of fashion you're get ramp that moments particular material timing at into in interest we've the get covered terms kind into DFR a of opportunities get this, space not the your with you another But in progress of feel some of I for winning to and creating Dedrone. forward when more this are inbound add this like and inbound the or the particular least the business

Patrick Smith

some then a strategically, little let folks more me give start Let other detail. maybe

sort think jobs our So It's enforcement, part would I has of yes, like, day-to-day been, interesting. that's business core interest not our Dedrone you of of today. detection. about say, when for law It's pure mediocre their on drone the

of as DFR extension last as And interest the They there's natural to like drone responder, on literally program. fly see more But period, DFR it able in of XX-month was the there. a being XXx we've a ran XXx rate a numbers, drone a the component first we come ton a DFR. seen growing agencies that that

Middle going we're bigger -- in the drones defense of weaponized Now counter-drone assassination especially also in there's and East easily, mean We innovation emerging Ukraine. to to a unfortunately, we on consumer-level can drone going what that be about drones, seeing we're a think pretty think see, the the deal. become the stories attempt based I now is on the Trump. rapid role

on counter-drone, So enforcement it's not we also big radar in intended be there's yet. their much but law for so a think opportunity going no pun -- to

was DFR the So big play there.

every they've drones. systems for But of Ukraine how large every And now Dedrone number right interested the is also got you of military then and consumer-grade small I threat deployed FPV and customers, in getting military deal with very is country interesting in now. think where a

into from enter stadiums the the all way new of et to nuclear kind gives us NFL cetera. markets, Dedrone critical power military protecting plants, a So infrastructure, to

add? to into it. with along rest our lines So then gives new go you'd pull hopefully product Dedrone the markets us anything and existing of Jeff, ecosystem

Jeffrey Kunins

that's you But about all wanted and like well sort if, think the maybe Josh, the think of to you said. talk materiality I question pipeline. No, to

Joshua Isner

Sure. in is this -- as material some some be time to terms in said, impact numbers Like adopted growing on revenue. take going is way such there exponentially is to hey, our going are of this the adoption, has though a it Rick of to a kind time. Even that take

in early of getting body camera it's I the landing with so agencies. relationships And and about establishing and then expanding first or forth, the days the of X for business X and there so in about just business fleet over It's like now, think kind time. drones

impact on important would position the more really to to this on early starts some a a of share I P&L. it strategically very but as before win market long-term major So have effort

Jeremy Hamblin

X in And where years? do or the you guys TAM assess X

Joshua Isner

be this I a the between and it. in there believe police one-to-one said we think XX, drones agree with in know but I certainly and it's years, relationship if X Rick next before, cars. the next don't I will

Unknown Executive

We're to Ng Sachs. Mike go at Goldman to going

Michael Ng

I just X. have

that a Cloud the Axon up good really in strong about the which sequentially, highest on I Is think quarter, $XX growth way million from & is record. here? sequential First Services, to on think

like and different services it longer-term have opportunity there? cloud about think the teasing a cloud you a in think function you as of number Or seats of do about and do revenue when framework And terms seat? out of revenue, per you

Brittany Bagley

big I'll step. Yes. I a mean start. great It was question.

standpoint. any You for be quarter a can bit happened to a of steps probably around our a step nice you And as from reasons. this really see jump back, go number

you've into those also -- got numbers but we starting and additions. Fusus about again, Fusus, to come You lot good some a talked

take was as account don't step, have largest So go-forward given forward. that into the this maybe think I going And you particular guidance.

segment. But owner were of probably and as many and about terms really, And of then growth, seat, offerings. the these Jeff do. the per in one, revenue and see our think But to happy of it. how of -- customers a yes, functions really on healthy this seats number features too, jump we We in of we I'll buying lot this add-on each are let

Jeffrey Kunins

That's right, Brittany.

I think spot on. that's

have -- Prime used so procurement only buy if mind a long they to subset a to have Amazon package time, factors in in for it's we've analogy and it's that moment of -- a deal them great feels a that they that as another even when way agencies package. OSP where like a because it's in place things And great a the the for

for so feel already then decision from that great that using And purchase that rolled into yet subset. paying. free already they're making point even deal a a And aren't a like things they because they're forward, what feels they're all the

And pivotal so those people part [indiscernible]. of procurement continues moments a our be to get to higher of tiers OSP on and higher

Michael Ng

much real-time products versus like be the the operations growth existing struck customers, of in more some for these newer productivity coming seat the by base? revenue from AI software penetration and software per of fantastic. was about how really what's don't revenue there's that about the way of which trying to much them and when And per know good just That's seat Like a good if you like think [indiscernible] think about think customers, actually to grow? into segue installed I about some was the how to like it's could half these Great. some a newer follow-up, newer I could products.

Brittany Bagley

great Yes. No, it's question. a

I OSP to periodic doing actually our above penetration update our can go. how to a we we're on And for how OSP think this that best we penetration more went shared give updates luckily room we probably give quarter much the an have on sense do give is mark. the XX% we

that's not potential OSP, customers XX% premium, on just basically, means that all so plans. of our over it but And of are OSP just our

to room that, with imagine can You there's go. of lots

plans to think plan, That move OSP revenue talks can customer, be per up more that premium most onto we and you our them time. to about all getting OSP at basic over the plan. then any But our as customer

go lots my of So punchline one. to room that on has

Unknown Executive

least Will Thanks, last but is not Mike. And Power at Baird.

William Power

X for Great. to congratulations. Josh. I one questions. the great I echo All I'll guess see. I first have guess Broad-based, right. Maybe

TASER largest heard it enforcement I the outside XX, X was if I on intrigued right. your deals So law local

TASER understanding would because opening new Just go the see also X interested what's is be kind great that, happening TASER What's I'm versions of altogether? or capabilities. I new that just much of to TASER how there? XX driving understand kind You of XX within earlier didn't it of customers guess TASER have up to in people that? And kind started to

Joshua Isner

of there's just in even, growth international, see of customers so biggest It Xx are outside exciting is state NYPD. in in Yes, so say I'd size to is the federal and that absolutely. play Thanks, the up with -- X, these local. there corrections more and and end X, you adoption much Will. in dynamic

[indiscernible] volume so state And And is the what base. much we're starting local and that's of the so to outside orders larger customer large for see.

time correctional correction volumes, We saw larger the civilian space. purchase. federal -- the and international also the a in devices facility same We're seeing really large federal a and for government lot ordering of governments our first for

and is in. plenty in of be and we've enforcement. beyond still more to it starting a I I -- upside off, of off pay put that those now come in state there's lot X for and effort So just to expand years a pay think to going the TASER it's think because devices will years work over to function local more selling law the And last lot a of of

kind said et that's to of cameras VR, fleet But like drones, open body the to we sell in, sell to cetera. up before, opportunity in, sell going

different this well TASER I so XX and is base. in a think local promising to the of see state And ways so of customer outside lot adopted

William Power

ask helpful. I one. wanted Okay. Rick to That's And

there to As into recession. potentially the are going macro you we go sort know, some concerns of on economy, fresh are

You the all deck. investor slide have in great a

some at of time. safety long and think spend addresses a I looks right, respects, this, public over in this period consistency

might And be expect the lot in part what at portfolio to to somewhat. we It'd you've kind a But you've type cycles even perspective great you in customer a as the impacts because just been look bit seen forward, your also as of through of obviously company. of of quite the has changed maybe the past. hear basis what

Patrick Smith

Thanks question. for the

mean seen a way that. of really we haven't that. I It's are we've we or when get think are of just like lift it's ways. the same I a bubble, different. the really dynamic kind economic some not mean, in in bubble And in one downward great, the this seen When swings really I past, we're -- because things rough, the don't us things doesn't impact other. it And with us frothy hit

it's I -- spending vehicles goes think then in their And relatively a into base, money personnel, Almost on tech, still it's their tech whatever overall gas. customer is of because spend. all small. the they're and And fraction our

we're clear, tough oh, So where people were expanding yes, became are like I the the and have agencies to really it. trying make had are XXXX, going tax cuts. when In the times more to a revenues personnel are or in their good, we typically if but to hiring really allowing times, they think tighten belt, X actually quarter

We then and back in were still new. super investing more TASER we then, primarily found company, productivity. are cameras And now them the body

on see different don't an service, contracts. like I I most think so what's long-term but not [indiscernible]. this revenues our fathom these cutting contracts, back essential we we're at of can't are them agencies time,

approved of to their The XX% still Draft [indiscernible] in post around energy swinging, numbers. but force sort is of fact, below improving. around George recruiting negative And is seats. The budgeted them agencies many like their struggling targeted are impact the kind Floyd difficulties the of pendulum One, are fill things many still and XX% to

up And force almost One, where like like XX% reports, a of so bump the from magical in writing Draft with we're it's hearing feedback that's sort day where XX% of overnight. my freeing officer's power my if they're man, that's XX%,

where as tell economic those we're that So here just I a anybody economics this immune. seems universe the beginning or for be certainly immune, in for hope we're over don't going just to good historically, we're you much I not it different we don't I'm -- think just is seem big not in swoon. to bad. of matter but And to

Joshua Isner

to of really add us Axon good I'd make really that they And that just our the one products also nice feel things and that, save is money. at lives, save Rick,

economic make to situation customers to is very products, away money so literally for our better. do not move And costing their worse, so from will it them and

to products certainly, type And make our understand customers we our really work And for value customers. that. I think appreciate that sure hard of and our that deliver

Unknown Executive

it Toss close everyone. this Thanks, to out. to Rick

Patrick Smith

right. All

this. to delivered so forward-looking And many quarter got when wood to you I and work of consistently just hard so the on have for team, when have You the out. quarter results enthusiasm people was Erik screen waiting Josh throw his was like Brittany the half Josh, with knock expressing in, statements the the for and year. up back so effusive Jeff,

and in new does it's markets really of early off like now well. with we're exciting team. the innings as new taking run lot things of feel we're doing, One are But stuff and But with phenomenal it in been a a other just the really the Draft that some really

business. different really And be the to there me, our pathways tell it's so in work. to many to likes just time make a exciting to be Josh As are numbers able

like out got little to a again because the quarter be... tend would see overperformed that us Brittany been to sales joked problems. we able those sort going didn't were to to where at So But prove thought I more very be inside we A results. little this we're delighted to to team of deliver be. like we be these have to forecasting we Again, Brittany good baseball. accurate.

Brittany Bagley

the go. is way to This

Patrick Smith

overdelivering. of says, let's keep that Josh hey, I So challenged course,

Of we want that. course, do to

So enthusiasm. anyway, sorry for all the

a time. having good are We

And good -- the certainly near about enjoy obviously, term. to quarters. we're the good got the feeling You

exciting super with A about a that, stop Draft with that talking. analysts up should stuff unproven all And everybody. I'm it doing before. bring -- good That the lot the asked are to to we to I'm is excited And off stuff. with of that's, stuff front this One's year? the anything term me of start. at Erik, I yet. frankly, that in I phenomenal going IACP long have

Unknown Executive

have We'll something.

Patrick Smith

Okay.

this to those all with tuned, who we're year. be to Check supporting shareholders. that. Erik Boston grateful for can't in So just our is you have And going us on stay great IACP with in

quarter we'll -- quarterly oh, results. couple see and a of months sorry, next a in the I'm thanks, couple of So you no, on for

Axon Enterprise (AXON) 6 Aug 242024 Q2 Earnings call transcript