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Axon Enterprise (AXON)

Participants
Luke Larson President
Andrea James Vice President, IR
Rick Smith Founder and CEO
Jawad Ahsan Chief Financial Officer
Steve Dyer Craig Hallum
Yuuji Anderson Morgan Stanley
Scott Berg Needham
Mark Strouse JPMorgan
Will Power Baird
Jeremy Hamblin Dorothy & Company
George Godfrey CL King
Saliq Khan Imperial Capital
Call transcript
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Operator

Good day, ladies and gentlemen, and welcome to the Q2 2018 Axon Enterprise, Inc. Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. At this time, I would like to turn the call over to your host, Luke Larson, President of Axon. Please go ahead, sir.

Luke Larson

you. Thank everyone. to afternoon Good Luke Larson, of the President Axon. I'm XXXX call. to Axon's conference quarter second Welcome earnings

today CEO me Ahsan. Joining are CFO, Smith; Jawad and and Founder, Rick

we of our the Before harbor Andrea will safe Relations, read V.P. statement. started, get Investor James,

Andrea James

on call on is Relations of broadcast Investor website. Enterprise Internet the and Good afternoon. Axon being the This section is available the

reports caption differ annual call XX-Q under These our risks Form to on could in Risk quarterly involve assumptions current the as available risks such regarding to regarding to that based on only our the During to statements These risks, harbor include you is can detail which reports subject SEC statements, our All Factors. actual reported statements and XXXX. and quarterly are of be provided Enterprise. estimates spending. letter expectations start not they prepared the our performance shareholder results, on results including with call, materially. and safe Axon the will Securities Private information Statements we'll by made forward-looking we'll cause remarks, are of are beliefs, today's and that intentions and difficult to forward-looking be made, projected regarding on speak at guarantees future Form which the and We'll and website. Act our the and on uncertainties including uncertainties is are by the our on today's Litigation call the forward-looking that greater statements take are future, making reading This investor.axon.com that date of are made or information references Reform strategies short which statements find statements subject around questions. XX-K discussed certain forward-looking predict. the intend expectations, We upon then on

for and or the our at You our as other filings SEC sec.gov may find at AAXN these ticker. filings, searching investor.axon.com filings as well under

the Rick to now Axon's call Okay, CEO, turning over Smith.

Rick Smith

Thanks, Andrea and welcome, everyone.

quarter team tackling and we great against second pleased our the results feel blocking the and our way about We’re outline. with as we goals execute is

One The consider highly the a fronts. in was our beneficial which re-IPO. couple accomplishments a the quarter follow on offering we of on offering of big key was

which First a we And shift but and even orders to significant we was subscription provided were the it not mix. us resources with drop of more to sales to percentage now able because in had the skewed did of be that international now flexibility can We subscription. yet QX accelerate lever accelerate with our hardly note also TASER the that on the orders to percentage, internal executing towards fact the that move business of is result business We partly have the resourcing. every We’ll the that, the to aggressively result subscription functions drive we so subscription. pulling begun support distributing our entire some plans. across to

So as exciting aggressively. business the more times stay transition please model some for we tuned

is weapon business. hardware company reflects TASER Axon so as and Axon markets There capital to remains to network. solutions software thanks software company opportunities as a network it’s from larger years you It It’s rather our to we’re will than not well us view rather hardware a that in company. believe just having integrated and strong the the make hardware than plus the earlier, shareholders As responding are for And more excited more And to more have way all benefit a huge has transition part happen. execute ourselves Axon the to I to for be re-IPO to software But we TASER the this easy capital making transition a our the ability a and connected obviously sense that we us CEO, the for systems into value we of mentioned incredibly the reintroduce to SaaS to and weapon over makes continue thank what who itself important allow was. many our platform. want accurately allocated supportive and weapon is to have TASER to back built that even you. I and a The effects us return manufacturer. of of into from technology to been this so what

Moving now to initiatives. new of some our

which the life on petabyte continuing customers the XX and amount goods network Axon have highlight product manufactured I to beyond are place and value note interesting hosting the We we the and pretty hardware to shows network. extending testing early DJI with the great grow in begin continuing our is selling. be. robust the Milestone. we is records partnerships were entering really can and phase now exciting and that of field the An refining also want cloud is to and having Axon to secured This to third-parties are the new a services We’re partners to and testing customers. it they because is sheer of come data that of of now the find version that we're that with data, in to

were public with of go user and to into Luke the the our legal operations. non-customers off to attendance security, annual will in leadership and June both by technology and I And our Accelerate had overwhelmed Axon hand members and XXXX conference now response Axon We've Axon deeper industry. conference held we police center included which Accelerate professionals positive the putting network in the that at in over also our our from We of safety.

Luke Larson

mission start off our us. to TASER, have to every of want want about on system. in board talking truth world our our an back official Every comes Thanks executing Rick. making enabling justice safety fairness and every VIEVU Axon an integration do I we're area camera against that Everything mission. important obsolete Axon in execution a by network. seat which we At is and wear Axon officer the the to public a carry the police we for day and

you other ones we competitor who customers our body value was Axon network As with VIEVU addition several camera chain. safety as system each skill our existing acquired law-enforcement because can the the easily Axon. are more agency and Those to as public through working take justice a share advantage May we're with the pleased information key they are they the can be across joining data new because and both across customer of the of know in well synergies building enhances customers customers which

that our to related in continue so Also like Commission customers team Seattle. and be also mention letter notifying item inherited and that a of products want people one more us the impressed makes a We we more VIEVU stronger. acquired I we with VIEVU. June and added to and than fully feel We’ll keep very the expanded looking a we this that the Federal a joined solid in We cooperating just will are was a we capabilities this us us into we better SEC team received you the as acquisition In to view our some that Trade developments the customers from and group marketplace week. around competitive. this. posted confident see matter remain FTC with filing benefit acquisition are upcoming that any We and it the they're recognize that later routine XX-Q to language you'll but on ensure to the

our We continue focused customers customer validate on are approach. highly satisfaction our and

join new network. also user and that in now June customer to July a financial booked than in In XXth increase at our we since see XXXX. customer Axon the And XXX,XXX more half performance represents You Honolulu the XX-fold of end have Axon the first over That the network. on became sign major in account city seats of ups.

And about with X our more run evidence.com market is total way us. users have of the of in million We than subscriptions great addressable XXX still years. there ahead three

Jawad. Now turn call over our I’ll CFO, the to

Jawad Ahsan

Great, thanks Luke.

are we’ll solid time upon leave performance. and things results I questions. Our plenty strong quarter want for execution another reflected of touch operating then QX and to There few

said of flow transition want was from flow the in and weapons position puts next two cash for strong models. TASER our success to Rick majority cash subscription pricing As to selling us stage prong investment growth financial We funded growth. The follow-on strategy. the our offering a of in

that in allows our market as and products body to in car address invest it existing management. First such and evidence cameras

invest come in strength have allows strategy. Second These as of a that to execute the people, form in acquisitions. and reach us gives programs, the it this balance now potentially records will market and aggressively systems sheet expand to and our that financial dispatch such flexibility We investments on products drones. will

as EBITDA perspective impact you From progress we XXX with second Second majority expect in hit from we integration the and integration. margin the cost about costs of the the points basis a expected VIEVU of adjusted full-year. quarter about Luke to heard

As last some our XXXX. for we the us contracts pressure are the quarter expense strict allowing on earnings to of guidance controls margin maintaining gross while absorb our said VIEVU

about demonstrating leverage evident feel and the than been in grew We we've in As you be business XX% QX great double. leverage the see to more model first can in our half. the revenue adjusted continues income net

dispatch Axon that's of us engineers to more including growth Looking see key in reflected the strong of can year our growth in at and continuing back the you to providing to half we’re heavily the areas some expect invest adding today. earnings generate and while guidance records

better to and you period VIEVU talked and margins today given XX%. Thank the period related compensation turn that dialing of notice we related clear existing over unpredictable You’ll a full-year that its cleaner prior works over adjusted in the to quarters. new for about expense metric stock and this XX% costs with the But one-time I'll guiding To to that for it an to same compensation Rick’s of plan in adjustments Andrea. level comparison. back be all we’re to to represents control that’s EBITDA acquisition removing

Andrea James

Jawad. Thanks

one majority conference and save going via Before line for you house of listeners instead we the have of ask I guys. who to we're to the to keeping quarter to ask of next go questions. And scrappy, call those please to item for being questions, you webcast, we'll wish listen

let's go to Dylan, Okay, questions.

Operator

comes [Operator Hallum. Instructions] Our from first Steve question Dyer Craig from

please. question Your

Steve Dyer

to - was VIEVU. from that of indicated secondly, would side software business, Just me, up And ARPU attributed it couple quick organically? some year-over-year? and services questions, on the ones been that's it the Couple of one, down of up quarter-over-quarter of quarter-over-quarter, you you'd

Rick Smith

up. is it organically Yes,

Steve Dyer

as Quarter-over-quarter year-over-year? as well

Rick Smith

quarter-over-quarter yes. it's up, then And also

Steve Dyer

half obviously And similar second the pattern about QX of guidance just think this you add should been a materially of QX, in the appreciate - Typically, we the anticipate how year? the then cadence? any than would more has year, for better of can terms sort you

Rick Smith

the same. that's a Yes, seasonality typically I Steve, think I'd things roughly see from go how expect perspective, so we

Steve Dyer

can And remind of just year lastly, you margin but Analyst terms of this just you can this It just year? about Day at several next reiterating me us the what or then the you're in beyond you margin you sound remind us years? how had think leverage said kind expansion like

Jawad Ahsan

the to next Steve, margin were we basis at improvement was that the year that points operating to three Yes, gave, years. of the XXX for XXX guidance Analyst Day we going drive every

the business And of based volatility not which now the point years. because is explained. But so leverage we're of there, the some drive expense still up in within changing backing we're that. the Rick two EBITDA that committing compensation and We're to next adjusted the that to over operating stock

Steve Dyer

slightly just different So, XXX metric? still XXX a to points, basis

Jawad Ahsan

correct. That's

Operator

from Anderson Our ahead. Stanley. Yuuji next question comes Please from Morgan go

Yuuji Anderson

on I couple had there. side of a TASER the business the

help installed some the what describe TASER you Thanks to unpack base domestic the growth then or average just internationals so the and related, much. payment on relative kind somewhat us between can current percentage and of subscription First, a of is can you corporate plan?

Rick Smith

this Yes, is Rick.

terms split base, relatively what numbers total international the and on plan. I subscription base on it's percentage of past in and of then don' think a we quarter this think the typical I between total the is. domestic, published the was the

to to many how of gave denominator letter previous four-five historically as direct. come the It's up use published transitioning because years We've many we the quarters. the weapons we for more still sold shareholders in in with the distributors time. is last what entire field, rates little direct through what we than ago, of over those hard - been a sold of the but we're to Some we've more obviously which the

Yuuji Anderson

get just sense TASER the growth, was than how guess much relative I to to split? just I mean, And domestic the follow a just on rather actual is growing trying up I of international

Jawad Ahsan

months trend little but Historically so. has or held that last we've business, about XX% our quarter-to-quarter over seen the international of XX overall there's be a fluctuation

Rick Smith

years, I take than of a think accelerating international U.S. see and think for trend couple of think lot we we do the greater expect the and a faster next started opportunity up that over been we I international actually to little of has revenue. to percentage there's

Luke Larson

add percentage of to look the future, good, the we years. to we Just would relative that our as revenue, two pretty that, three our be confident as and about a see next feel international to to on goal over grow overall

Operator

from Our next question Scott from Needham. Berg comes

please. Your question

Scott Berg

I here, a few one, take with in of I think don't acquisition quarter growth wants have know I the first want inorganic we about to but the and to how this, organic see who versus should VIEVU.

that the was And at to the count help were that understand that at I quarter, of us much how pretty much know Just some increase inorganic? seat came just one other? trying growth versus the kind how large Axon cloud, understand a revenue maybe obviously there then is over, looking specifically, maybe looking that organic that revenues addition, came versus from in

Rick Smith

So, Jawad, you and headcount take I'll want the take then to revenue?

Jawad Ahsan

Sure.

Rick Smith

VIEVU, seat well from we on-premise. booked So, which into as growth But some the we then had out the cloud. were from both as migrated this organic we're mix and originally user the of a then seats platform counts,

of new organically, So, book it greater out break any but were not detail. we're to level seats up to sequentially going

Jawad Ahsan

a growth so, at margin actually to On that. the to there's on and it the on from to loss from was then loss, Scott, didn't the of organic revenue contributed than - have really it revenue about core only our first VIEVU contributed your from that. less we the it's part versus not most coming Organically the so of organically, of growth. business, a contribute X% And it much much inorganic, a standpoint business question

Scott Berg

picture, call that been this transition you the probably looks asked years, at And a level the the the Rick, on understand like over comments next, has coming I'm product, does the two, that is since think made on is I of don't TASER more horizon a or - bigger push whatever a just then subscription a plan because kind short term? of the on the to time for four, Thank base what like, do pull know, of trying become a subscription from sales a three, and the expect pushes or term. down to scrappy, not vary least I question surprise to those maybe percentage quarter, little going the you. that short obviously look I they're for levers, the pulls

Rick Smith

expected terms that a I that would we will that can do more services - you subscription make that say create features offerings it's compelling probably of these mix, think and things are more in pull. will we help it's there

a we that can influence positive So, that we way. in think really

details, you So, even there's that anything I we be pretty we say programs have are some but If just push, some exciting tuned, position if really guess new you now. in simulate that could interconnections like ultimately then launch need to do create that we more as - think some it's going stay to these we'll there's more valuable, I a demand. can said,

Operator

next question Mark Our JPMorgan. from from Strouse comes

question please. Your

Mark Strouse

that think far for term about at the of is margins? were new timing I Analyst long that is wanted is different more then talk what color that Axon and versus of Day And guess, it's in then view as there. kind the - is Just how Can what segment, as kind we should how contemplated are some to Dispatch? given and you but that availability get I that out early on that the their commercial also, of investment know just [indiscernible] about targets

Rick Smith

of -- most more calls, communications more think process to in office, unstructured your where be communicating opportunity in that that of of these tend terms of handling going record tends to reports the you through calls all We real-time on. pure it's is collected the the data videos them. just are put Dispatch to see systems processes been as that's lot to incidents, business you real have tightly, about to the the way information Dispatch really - sort inbound where the In record video have prosecution data have giving managing can the be proposed incident resources, historical itself, that the of integrated chain, a want them is that

environment, course So, structured working the a real-time from bring a extract more we're on information make unstructured structured the records of that individual data officers. and of into and of tools more course data actionable with to data the that

-- see going fact would dispatch, to tend dispatch seen that's integrated type we and we they're into things and pretty of bringing opportunity ossified are So the note of into can network that the more. systems, they're of all mean bit heavily world so experience. real to We've as smarter challenging situations. time computer And we decisions These into see sort build some just they're that see leverage today. to really I evidence What in making software aided user a little the a these pretty a in old really we getting dated it other records digital we bunch with call been expect other sorted Dispatch. you from the

we've confirmed, any of these and coming progressive do all in -- but yes together we very a see doesn't we that our it pieces So, way, have Jawad given. all guidance change

Mark Strouse

apologize quarter on that larger the again, those about And missed testing countries this, European last or then two? -- of update any some I weapons if I in but talked you

Rick Smith

key thought as well he TASER, Italy the progressing, firearms those the week, at so yet looking they in in comment in constable saying actually focused are so seeing that forward with they we rep we're progress. two stage are the the but continental the Italy that Chesterman, was I the Simon from trials we're when U.K. are on. momentum carry Italy both should TASER. with chief very, In instructor update, every that deal very Europe March as quite markets in in not Yeah, in and are next a U.K. expansion I'm started confident that there then meeting to positive

Jawad Ahsan

seen in of and Latin activity have America. some interest We also pickup

Operator

question from Please Power Will Baird. next Our comes ahead. go from

Will Power

records recognize to today, deployment. qualitatively of with guess opportunities, kind a then just on I it's be early, just questions. interest, feedback but know, color of inbound the respect couple will great but pipeline early I it to increasing I trial one there get any it's any would of around and initiative any any great? the that learning's color early just further qualitative be

Rick Smith

real I any would too us this early for just think think at be providing feedback, it's to I point.

that users we've loop really first interfacing along we're and be course is software, a of and who things very there. riding tweaking hitting are learning, engineers think mark got and there I and of The ton and to trying and agile them we're with sort we're learning adjusting this with generally the development

So feeding getting we of lot interest. in a are those we're Pipeline, learning's quickly. back

impact records this created. of pipeline. to way any give ability vision in we in terms will -- are interact I that's life Alexa, that have or not or their to fiction Google that their you – meaningfully real the Home with a think the to the science can't customers to but see they voice is bring Siri, I more the really really feedback quantitative way they're that that going device, text seeing

can place a you're that the do conference, seeing to -- typically coming We we October. feel year off it's are at in believe, a show this investors at a up for publically. That's we'll landscape well. get customer event interested stage competitive International where a have of in not be Orlando ITP to show, an I if for place et Chief the hosting Andrea, Certification in as early We Police that where cetera, go reactions great and the

Will Power

the both also And announced update for the assume Fleet I looking on but answer I new feedback any for of for coming are you been some early And those timing may X, Axon out more products? second sense, some there, of XXXX. -- those be Air, to any products here, a at similar there's since guess, accelerate revenue question

Rick Smith

for product And to same very as to revenue, Fleet have don't Axon it's creating really our Air X, we'll the five over but customers. going we end year, certainly the We is relatively another the be X. three interesting expect this by X which impact X was of material of for the new Fleet shipment Fleet business years. we that lot is selling Fleet a letter next that this really the in year year. view think on pretty Fleet we as the its X you got top become system in points and entered feedback that believe video first from remarkable feedback carrying know within is of X Fleet we we really enhances major mentioned framework

do have expect ability Fleet on impact making we the accelerating So that to space. in continue impact an should X

Operator

question next Company. Jeremy comes Our & go ahead. Please Hamblin from Dorothy from

Jeremy Hamblin

a Congratulations of for the Air of you in you on quickly how you terms wanted strong expect the DJI the like the Can you in margins that than be particular to your ramp you of ask little to a you the then really two selling But them, bit kind results to just that maybe one an that with do more leveraging with be a it talk partnering I other product. managing Axon more on expect some model can about TAM because question have and network. that terms you the kind know products? going with sounds your thinking it's business cost of about And to follow-up outsourced profitable there. talk little also of partnership of

Rick Smith

DJI. with so do Yes a great as so this we take I will one well have yeah partnership

and margin opportunity we added reselling be be software much or were and significant will to than we see own hardware. do services. value lower reselling we in when So our premium But their that will hardware selling

managing two one long-term isn’t drone building out foundation, drones some are incremental that in people giving fleet out metadata hoping. to is concerns sort quarter used how to is be drones your roadmap related This So we but of privacy control type relating space laying drones a build of in the et or the software are creating team to a flight where like the about of we’re might of product new this have data of place really the cetera. sort giving

pilots this deeper certainly just stock see much our with the in in spying training our field. on warehouse to software laser behalf orders. having weapons. price to comps, drone say subscription to but We drone in provide I drone of people don’t it training than interest share is want to I services think leveraging is DJI for near those us training go the training our our discussions down and would quite how with sales speak use network given our I infrastructure So we’ll right

use able infrastructure drones pilots making that this on similar was be the to will so important resources pretty we So partnership and and for to train fact them.

one of is going be a return to but a of be sort do cost it’s years think think the heavy lifts going it’s to seeing over not that a we it’s path revolving likely profitable, that to software be will for some password lot we’re news more overall over going to before investments be us but premature good hardware this I incurring one think a There setting much I we’re revolving not huge those profitability. to this costs.

Jeremy Hamblin

a really of me just give of give little were some And color margins basis that or if year-on-year just operating to this down costs but was color gross in can about selling me change terms improvement package you deals the that? you wanted you points just in segment nice I of think question the XXX on are ask I then allocation XXX margin as just a more Can you kind of basis have on points. weapon profitability

Rick Smith

Jawad?

Jawad Ahsan

broadly continuing OpEx just the increase to speaking these are in Jeremy make we’re to and invest business. we in Yes an had

some that TASER we So segment. had OpEx the hit

tend have had lower allocate that also distributors and our to the to we we some before that cost are more also And the of typically an we talk TASER about way We segment. pricing. at allocation

to So when business broadly. hit in more OpEx have the we across tends an increase it TASER

Operator

& ahead. next from John Please Weidemoyer comes Our question Company. William go from Blair

Unidentified Analyst

for This is thanks the ask me some for challenges [Jonathan technology Ho] so question. NATO having are for we letting

again first can So you okay. all me the of hear on drone

drones Okay – big to the of fleet sorry the opportunity the relatives relative how body the market? is drone camera

Rick Smith

hard world that drone hard to little you imagine that be down to predict the where could I you a now carrying just than being is associated might every petrol it’s number a could or imagine we police it field right mean greater drones say go even replaced with future has are Yes further the maybe cars. if of

communications. is this be me with could in interesting feedback. wireless able going But scene to really it I of as over will drones. to to yes, jump market hubs advantages that be that So but communication a think of use that is both What sort be how able things being customer see able long-term your to predict we market let it’s and significant hard with be to anyone the have drone be visually guesses done you real can there to we have do over side on to the based evolve just top

Luke Larson

simple have that that network we've a a benefit workflow. see And we easy-to-use that in can do cloud where add the one us hey, us package the we Yes, pulling this to how this developed. Axon and I Air market we saying the would Axon see one real definitely they we of such point is is technology help are on way understand the and coming where

Unidentified Analyst

upgrade police the weapons. where gated behavior up think stepping change of that question by department you in they budgeting officer Another by it your to more in you’ve and of process? RFP buying their the might sort do safety now Have subscriptions plan had for be take it's advantage upgrading any or you seen

Luke Larson

seeing that that in so they the great have them and of they have years. mixed six of you portion percentage over [indiscernible] to we for their got just subscription done weapons a that fit with of still years sudden that weapons say and And I within RFP weapons over XX don't of and while budget those pretty municipal could as on new brought subscription. side on So six they attach to year being first business agencies begun used the compared are the out period the likelihood started or into time the ago with weapon in of definitely bring far get now mean few would variants five five very the If rates a they and to an don’t together them news and I the leases SaaS into good years higher have the now year like is think year TASER the get came I increase a before one there halfx years We item sales low forward us see seven we’ve XX with cycles some to doing quarter-to-quarter. are five three generally fleet namely your paid we’re got over we we it beginning halfx price. with rollout Xs. problem that a and is budget get actually software to I think have XXX mostly in XXX the space only in historically. weapons in sales six have the agencies weapons cameras that, these replace there again their well buy one has idea first all weapons may And of all we seen to now us noise it’s budget get of a or that think but increased to And bundling year have velocity so for up already place hold. subscription I the set line year are wanted previously trending And orders they six easy to two

saw in until what once weapons historical wait they buying out life. multiyear the is of pattern you we rollout coming with that got then sort useful of last So finish sort batch who the

of first end went XX buy. to you at upgrade nine for the right opposed or years the as probably So to that

Operator

from Please Lattimore Our next question go comes from Mike Northland. ahead.

Unidentified Analyst

few this that know the margins you’ll might guys points This I guide EBITDA international you said change the do and congrats is on great you faster than Mike Lattimore question. segment next for on that U.S. your for that Bailey years? see growing your your basis a

Rick Smith

we’ve historically see to our faster just growing international about is at So pipeline XX% in relative clarify We a seen international to revenue. come that of percentage.

also business revenue we’re expansion so well. and international very our future growing domestic about overall And we’re optimistic

So that’s us realize on work needs ahead sales. those to this

Unidentified Analyst

a should it give a changing – color see guys that? that how That’s as we bit sorry follow-up margins think little about about can at more do use all, you you the

Jawad Ahsan

across margins So, same international domestic. relatively are and weapons the

camera for the was And of infrastructure a markets today. the big but don't more some of one Axon [morocco] body international seeing a we’re our for they a of worn deals, earlier pull just cloud have

so they worn a And cameras started body deployment with only.

that some margins so in segment. deal mix And there's on

Rick Smith

overall to across board lower margins international seeing we're are see steadily. increasing international margins tends the but do we So, start little on

Unidentified Analyst

should one we just as a fleet thereafter, but revenue do main I you expect the how about sales assume records SaaS be And then body be driver? and to think main follow up for the that that? question, to cameras

Rick Smith

the go think - I ahead Jawad. Yes,

Jawad Ahsan

near fleet. Yes, in services camera, evidence.com lot the enabled we've got sorry momentum in a like of our body term

of the a that's be the to majority perspective. ultimately over going the online, dispatch be term near cloud so to driver, but as that and the business of main from that's think going records the come growth And we

Operator

[Operator comes Godfrey Instructions] ahead. Our King. George go next CL question from from Please

George Godfrey

XX,XXX added the seat count of the quarter XX,XXX, if roughly we adds organic here, reasonable look Just count VIEVU? a XX,XXX seat this at its reclassification Axon let's the and of for couple say

Rick Smith

strategic sorry – into go those don't to into in want finer going detail. we any not up explain like go we're reasons to numbers Yeah, for

George Godfrey

over U.S.? TASER base. weapon installed base is the the What shifting the weapon TASER in to right the for now Okay,

Rick Smith

estimate in installed the the are weapon. TASER that we VIEVU on using for on kick base I'll Jawad,

Jawad Ahsan

Yes, believe XXX,XXX. be to that we about

George Godfrey

increase XX% two ago? want a about roughly years XXX,XXX I to from say half and

Rick Smith

That's a fair assumption.

George Godfrey

camera are milestone before waiting quarter, metric for what that The we segmenting this of you versus domestic count international? you XXX,XXX ended and start

Rick Smith

don't for know I when know reason I out. segmenting we set the we those – firm a started metric

George Godfrey

what we for? are question, waiting my Well, that's

Rick Smith

Jawad. ahead Go

Jawad Ahsan

At early going look won. Rick to to that are our as establishing that's there mentioned some indicative beachhead there not this pricing point the like this we're what in international but of long-term. business markets, some we're win presence that trying earlier, is And is really and accounts still we've

doesn't more to value. And lot so, business it out add sense at some point it a matured, but split of is will when really that point make it this at

George Godfrey

then or subscription? base, the that. is thinking call one then to your ongoing that into that machine the about an questions, last a the And intelligence question, press to have that's learning I relates my in you extra is existing one software. think follow facial upgrade invent the Two technology [PTU] And artificial on to it release, and over recognition facial camera do for existing recognition if is, you charge

Rick Smith

believe point existing careful, at recognition the unintended move point and will need that commercialization once tighter controls then to accuracy there the and up daylights being it'll for of use up you -- a would would caveat one that something happened impaired you when launch we've – premium contracts. need understanding do So, line time think within But would it not into think a not service, we accuracy of see likely that facial also have acceptable something the in team the that developing yet that we've unacceptable where but accountability we the be ends really they then public failures they where at facial of we that and we I large, capability. be you is facial pretty this where like end today it the is something where the this some give a do technology. technology we ensure thresholds don't right be disastrous that be to recognition, we long have be the biometric, thresholds don't that is want recognition, case where just we done actively it were decision would to by be launching we of don't to a sort publicly we once are term privacy that and technical making have or operational sitting of here got where outcomes premature with

George Godfrey

last mentioned Thank you can't legal data they do or they Police you question, then to they're where your agreement Seattle even And Department had petabytes very of under share the they so? much. and Chicago XX between to a if want data, my obligated restrictions

Rick Smith r

specifically impair belongs et find [indiscernible] whether data, or cases to not jurisdictions that No to whether in inference AI of to accredited or any they're certainly we data across they under then we staff standards center that cleared same we use in can are cetera. agencies the that that have training – enforcement where a create But able customer, as guidelines there in been training has many the underlying off local in the – our data share they help intending customers our law participate now other to to other to agency enough and data models train are in do restrictions agreements that programs. opt the are have of opting to But do they to having and to data we are and that their the those have opt in. may

Operator

Our from go Saliq Imperial Please last question from ahead. Capital. comes Khan

Saliq Khan

all to you period and about able offerings a are short doing introduced? of introducing several being being you one programs be have of what time. done very you've the job you success too new over recently thin great that is, First ensure Are of the concerned a spread to pretty

Rick Smith

we metrics promoter score that is usage. focus and two our our key across So, net of entire business

on daily the recommendation. that set our creating really we're using measuring features we on give even basis to so and make product And positive would they a quarterly want and we're sure us and that of kind a customers

T-shirts a testament was tight And would think And are of I Axon using and really, and actually they that swag brand to feedback loop of so sold customers and an the systems very also just daily worth have testament to customer's feedback a say, satisfaction customer with bought great Axon which kind accelerate to swag, these our for they of got the we've the Axon I Axon and for we've the affinity $XX,XXX is good incredible would see Axon network. conference kind they just really We monitoring network. got recommend.

Luke Larson

against And and Yeah there our X, our Fleet the there stack – in I a features together. basis incredible one the example work to having out up in-car today, just on that integrated value more is, Fleet the other is most a are can there's well system is are incumbent systems an systems integration do feature-by-feature multi it more information point you prosecutor thing played systems the et you I being if a that in-car list far to on of would give like out And shines the lot of a important them integrated that can stored out There really was cetera. all well between there. one system, user back tab, be was camera cetera. shared But with et cameras. really where safe our in seamless features than they system with tight was of body lot [indiscernible] able end experience

if better Fleet But back into and things Now, going customer those integrated why these the gain we customer have some had cycle which incremental each be were customer market going training, on in X fast of with were key to those believe which pains, learn is into segments we we’re advantage we a is rapidly and we we're well times to bake and we causing that experience to great from to the features much of X. user Fleet service need features just a it product. very and easy to provide deploy share able of the make from

So, just think compelling user. the for particularly are we network the end there affects

Saliq Khan

public out these And of court some station, the you're then the hanging as Where success you lower you fruits or more are build either you? the more the field, are platform having – in in continue room. end-to-end for successful safety finding or conversations

Rick Smith

are over getting say -- cameras, conversations ago how would Such definitely the now, a great I is time. launched easier eight easier it we're first ago. When we and question, years long its

to cameras? software, a to skepticism do you're a do what I it. And wait And company, is hey know develop was that we ton people minute, cloud the that, a of going you're how think there you're weapon that?

reliable experiences I basis. use they of delivered a the that us on successive number a tell of enjoyable our of evidence.com day-to-day many product a think we've having with creditability on is gained most them customers, and software transformational ton that

very records user like dispatch, user things into better we're for extend and finding we base as think I So experiences. hungry a

enforcement and court. agencies into into now Now, the defense is still extended prosecution, most it's from we're themselves, there to continuing see but attorneys with -- obviously extending program we've law with

ton up further on for a the a the safety sure, focused law the into of broader we to we have -- in agencies. enforcement as most to we us really continue want certainly stay then thing just expand stand is opportunities We to there's that make begin core important solid So network. public

Saliq Khan

political budgetary either How are constraints? or by any impacted being you

Rick Smith

saying in a seen any not are We've slow need being the really your U.S. an around but for sit we we've not back the Certainly budget and products got they across seen issue. when we customer. globe from

Operator

I'd from Our Axon, Stanley. show no ahead last to Brian back comes to Please further CEO May Smith. queue Morgan Please question from this at of time. the in I like Mr. questions turn go with go ahead. Rick the closing call remarks.

Rick Smith

are continue use lot driving quarter And We get those customers. to the protect leading really ARR, exciting several bringing new, last Thanks us foundation going cloud there. those. it's of to connected And of you where you reach this investors, joined a you really world chance problems, now to personally and into to know sets are transitioning the really tune, and love you since and together. to been vision, across you some as I'd of market, Thank to believe visit who've recurring relatively see all stay devices, years, accelerate our as who from we've solid in it's got software progress change so resources quarter more stay life and to creatively a we of see and solve continue the have our safety for secondary We bookings into a we're provider to Great. you of that of in continue and do we've of have focused the our can continue - customers. little now, frankly transition great. last bit us rev, our revenues you supportive believe going we're big employees, public to align work if this Company up one we next and the in May. We'd make encourage on alignment the investor stakeholders and about can base frankly manufacturing with to in mission come really a been who annual to to those at get to all events. tuned that to and we've investors excited Company,

So thanks today. for us joining

Operator

may you attending ladies gentlemen and This for disconnect. concludes today's all conference. the you, Thank and Good program, day.