Axon Enterprise (AXON)

Andrea James VP, IR and Corporate Strategy
Luke Larson President
Rick Smith CEO
Jawad Ahsan CFO
Josh Isner Chief Revenue Officer
Mark Strouse JPMorgan
Keith Housum Northerncoast Research
Julianna DeSimone Imperial Capital
Ryan Sigdahl Craig-Hallum & Company Capital
George Godfrey C.L. King
Charlie Erlikh Baird
Call transcript
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Good afternoon. My name is Robert, and I will be your conference operator today. At this time, I’d like to welcome everyone to Axon Q2 2019 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session at which time instructions will follow.

the and to Corporate turn of James, now Relations Investor Strategy. will call Andrea over VP I

You may begin your conference.

Andrea James

earnings Thank Andrea you, call. XXXX James. I'm conference Welcome to Robert. Axon second Hello everyone quarter

in in Smith; Chief us Rick Larson; Revenue our Here Josh Luke room Seattle office is Axon President, Ahsan; we Jawad CFO, remotely. Isner R&D and Officer, CEO, have our joining the also

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

that in with our regarding have include safe results shareholder projections Act Today's You letter and we subject strategies intentions can belief, all revenue harbor intent, looking reported including our intend find will including regarding which to the XXXX. quarterly statements posted we with our Reform statements provided be call expectation, statements forward-looking Litigation profitability have Private the investor.axon.com Securities future to and by also the filed SEC. growth, or forward of product We development.

information is Axon and based information forward-looking on current expectations.

estimates performance statements on made today's of predict. are forward-looking which to guarantees of made are differ are to risks, not statements could they future the date materially. difficult speak our call that Our actual involve and assumptions are cause are certain All uncertainties that and only on subject risks that and as and uncertainties results to

in XX-K XX-Q and caption detail Factors. Forms in our risks greater discussed These are under the Risk

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go ahead, Rick. Please

Rick Smith

Thanks, Andrea. for today. And us you everybody joining thank

making Plan this business. sold bookings did went a we're Officer That said, quarter. our strength sales meet lot Safety of and quarter had business we as and the our driving X underlying quarter the really the out the a We're proud and expectations. in strong positive in momentum software progress our in of team not There's strength

puts I ensure results. So to takes understands that our and everyone affected want the

X you working about from quality the supplier was We at As standards our now chain them worked in QX component We with unable scale. as our of its ramping X forecasted is million X associated subassemblies $X sales TASER experienced shifted help TASER been we've when result, program. all our Unfortunately, of with the since meet and a hard production TASER the and on producing on all disruption know, to to XXXX. it closely stringent worth volumes. a supplier supply as the into scale battery QX

inventory to a of a obsolete to able also pressure gross due From related to some saw we TASER not change. write-off design utilize were standpoint, some margin we that

around While for the year. will results estimate cartridges the end X would disappointing, by be TASER goods short-term of the the refinements pain of this design our we cost write reduce XX% this up of associated, around with

hardware costs the some a these in savings have in can Given cost in margins will of segment. that impact TASER X more represent improving cartridges the TASER XX% than programs, material

to I'm from in the they on was brought the product several and and rigor members our back new by Intel brought on bringing process. senior are his of Hans excited step a one team product and who introduction our Moritz lead energy production processes. improve reasons Hans new has opportunities saw that we launches, to I in Taking product Engineering comes Hardware to

working have Of are that and the them degree with but can implementing. improvements course, a that they months, has I closely team say in of been for few just high been a here confidence very I've

process. the are a whole spending that earlier to manufacturing engineering in we level evolving coordination and is teams our new of example, now in-house and overall For teams suppliers time suppliers our In level. have the more between at

generating future, it's OSP our Looking of I is growth. the interest lot reaccelerate about feel to a exceeding great in expectations. our ability and Plus X to sustaining

in the letter, Atlanta, shareholder major already As Minneapolis. we agency our OSP mentioned Plus X of adoption and Baltimore, plan includes

customer X agency reception Major will expect TASER build. been to strong we to the and has revenue continue that

program because now in to the see but don't You the all bundling, hardware TASER the up low revenue it cartridges, ASP on software, right and of X the due on will P&L add amortized warranty. upfront

Axon that we've to we achievements about healthy went to X, some of in our in and Turning remains, letter namely of to market the Body completion bringing product solved detail the carrier shareholder a level what of certification.

energized customer Pretty tests about seems whole really demos and world, clearly the capitalist Body as to Axon game largest and it’s can a departments real-time spoken in every camera done it a changers. This most We've I've some the year supports with police an this and new of the X. hardware services powerful of connectivity. we host a is once enable will upgrade. Then receive automatically much

you device customers quarter the and a look become we're an to potential into happened QX. that that meaningful to at on assistant and Axon planning putting this for Body X what the a in looking We're hands chest. to a shipments has gives from camera going forward your body historical of We're real-time connected

the call turn over to I'll Luke Larson. that, With

Luke Larson

Rick. Thanks

of for just the very want listening I'm very the mix X I in I this. to you to plan in the responsibility put take everyone confident seriously. to For correct improving TASER know margins on we take it earnings We're and laser-focused place program. and personally today, scale the both

real well. gross to in segment underlying the and talk above carry the at that in we segment spot which did users and a Not we’re storage and should rate. healthy bright software software sign profitability XX% revenue like the bookings quarter record it want we only a now that as highlight that continue but to to margins I continue new sensor and be. is about in see segment I’d driving to

we And good that. feel ecosystem category, camera now new for time about bodywork software and point This have that, this the is my we support don't at launch sustainability created to great businesses. great a next and our feel about we it In great in two milestone a we out software proved Axon, it.

those not share dispatch Axon Given software to existing inventing and that profitable market categories, category already new in earn in we’re records but markets. intend simply

should Our path margins healthy to sustainability at much be faster.

this to agencies of X. OSP and forward our and more We Software and to segment product testament XX% XX% also look QX were and we to year grew over me, strategy a sales. To on sequentially. bringing development bookings both pricing up our is on more major last

the X OSP more is customers is $XXX, What's that ARPU historic monthly around than really our our for exciting double averages. Plus is which

among ARPU driving As you for value creating our customers goals. strategic our top know and are

the we with note that What's Axon paths the capability will major of For modules first about add system, We in the to of one they solution our interesting an existing records, deploying is migrate critical Axon has acceptance growing replace customer over their base have more aren't multiple functionality time. shareholder that that over credibly Axon letters this several of their cities. our with and noted platform. the and at demonstrates we and RMF entire doing time believe will more our onto product they're software to product that with two testing cities records passed rip they

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

Jawad Ahsan

Luke. Thanks

of to and the of growth OSP a back annual picture from issue revenue I lot to to recurring bookings outside we take and When I and expenses, at quarter of be a successive growing fundamentals. this indicators, lot step look ARPUs, control there X, XX% believe operating underlying have about TASER bigger there's strong the positive are record excited to to

high term contracts. First, successfully we're margin, the on moving needle recurring long selling

we deal much An carry new look revenue tied our substantially X Luke in software OSP that the bundled current higher contracts. revenue quarter metric our signed per at important is how recurring is mentioned, average. unit we of to As average than the that

it driving sensors subscription. XXXX half higher contracts new XX%. And all In XXXX XXXX, to XX%. number orders are its of our XX%. and quarters nearly of XXXX In tied our of was first this XXXX it was was two we're and even software the In that given in to TASER it

that and products stand their The self-supporting new and to building on but body own to fund and of allowing us of important demonstrate We us milestone software ventures. business can software plan. Not we're achieved the camera into only now exactly is generation it's Second, businesses core that R&D that. invest this ahead we're to doing next developing.

sequentially investment our term grew contracts. balance million use $X million an and over associated Third, with of approximately and cash subscription $X despite our transition short cash

expenses stripping strong Finally, to the controls, we fell execute out on actually continue sequentially. impairment charge, operating cost

shareholder commentary launch very Axon X. weighted recognize letter. the TASER full-year our year reiterating are timing QX we outlook, this our shipments expectations to of the guidance around back providing our to the and in that X is in due half of Body Turning We

We have are have deliver excited a lot our on down to but we teams lot to heading a and about be executing. also

to that with let's And operator, go questions.


line Please Scott Needham. Berg comes of question first from ahead. with the Your go

Your is line open.

Unidentified Analyst

process on for similar ABX product launch the delays the gives you to was time? will production do that with what's you what Or with X any I just This some the anticipate with confidence can certification get we Scott. is Josh in more TASER issues - or wondering color carriers? happening any that on

Rick Smith

this So is Rick.

the we carrier - have test. passing our are and mimic certification we tests which internal So performing

fundamentally So just electronic by of a VP the the cameras In was and this and is that of our of Operations in talking design we of the devices. large supplier. meeting today, we CEO our built in believe he is now. very are the earlier it’s similar was process Asia contract being solid and lots - with ABX with supplier case, I is volumes does

of world. where that are no in I bit devices, little a other them like the in-house. them There boutique products are think is little producing in different, a So those bit TASER the a ABX more in scale, of are terms we

challenges And TASER it quarter had and that. become with the it's was we now, new some in with X, design obvious a

a less manufacturing X, with from unique. think Body is a fundamental this product in that that a I much perspective Axon category there’s difference is

doing scale. we're this with at larger manufacturing a And operates much that a partner

so just being in what And through we're risk final there's inherently I as quickly. and it the there design less we scale think certification, lock able to building get and

Unidentified Analyst

one And question. then follow-up had just I

TASER be the met. in happened or quarter What million other met of million that be that $X is $X going mentioned in And $X in there's demand million - to $X the X You QX. million? couldn't to

Rick Smith

have to is recognized. - $X that’s and QX that So pretty some cartridges so then we easy other first that roll the - of anticipate cartridges and now they back in million still the relates the into that’s backlog expect in That year. half shift million $X we QX. - we of the be to because filled the may we The as

there out as able that the wasn’t we’ll cleared quarter, backlog be year. higher to but the So certain by third end clear of be we would have confidence the in


Your next from question Mark line comes with ahead. JPMorgan. Please the go Strouse of

Your line is open.

Mark Strouse

can Understandably, - a the me? discussion lot I'm hear of about sorry

Rick Smith

you. Yes. hear Mark, we can

Mark Strouse

the supply great. issues So okay, you'd the -

that of Excluding an change software of your there basis? kind of what and anything you bookings and sensors kind a bundle? can all-time meeting the talked It be hard and in that and about supply tied to the like Are software that of I for able year-over-year much with issues that its break-out Is talk lines, expectations TASER that demand your more you then sense to help can X? kind of of included understand the similar kind something just weapons you original at investors of I what's a to X along get traditional at might is TASER is mean, say but high. looking about, sensors picture or how

Rick Smith

Mark. Josh, to of Great Head one. call. answer our that going We're have Sales

Josh Isner

the are with Thanks for this and adoption of levels of high early X, product. On we question. the TASER definitely pleased

and out end number but As active the continue and large top fields the availability of quarter going any number we of somewhat factor, we’ve the be every the of of gate trials constraining at the scale in up trials I deals the always the of product, think to of seen a evaluations encouraging. is market

our feel $XX largest good of we contracts many TASER X X the So about long are on especially really term, plan. TASER certification given that

price, on time of average plan but that So see the selling in early that as become you evident the certainly the will on, might not value goes results. with

same the booking. side, and booking measured that the always On all is software of way we've sensors

features - there's of along add-ons no Evidence.com. Fleet, cams, So or It's Evidence.com in TASER solely components it's and licenses our Axon that. Evidence.com that with body go software

Mark Strouse

That's Thank me. great. it for you. Okay,

Rick Smith

challenged that. to of the plan. color first the more and that half high really OSP and important X been the bit a thing margin really it's Plus of we that high volume, strongest little year and was a the where year sales One the in - team can in. add sell stage beginning stood the the really I indicator me at sales could software was investing the on we Let the of the the we've products that Luke to prove this me year quarter

value our result. biggest $XX. in on incredibly seeing Plus, that X from biggest To the utility Plus high was It's orders so, our and that software. plan, OSP customers coming all X the not positive And high OSP incremental me, X, an

obviously being have we margins X to that the I the like and thing percentage one nobody other margins about across the X with a factor being is margin. right discounts to would high applied I think high Plus - addressed of The OSP operational the as at TASER But that as is look product. that TASER happy that down the vacancies get other here mention because draw bundling at the bundle issues well are really, the software

more have bundle. TASER X part OSP that see the of Plus so we're X then more software it’s bundle problem is larger lead time. customers on but over and basically our But perceived world true you to as X first some X seeing is whole the this so upfront to in applied accounting margin TASER come perceived. many than can compression, margin the The because And buying TASER of plan a compression that to

Jawad Ahsan

that thing camera first of body add three The is that all other I’d were from upgrades thing about existing those deals.


[Operator Instructions]

Andrea James

questions two. Keep going. I fine. Sure, think Two make it can we is


comes Your Stanley. James question of ahead. Please from go next the Faucette line with Morgan

is open. line Your

Unidentified Analyst

completely I'm question. have you wondering acceptance think on moving at about roll Congrats you've about out quickly it's wreckers is just learned forward as products and that's customers. be how James. anything just that how customers a about and should be can scalable that timing your we the if thinking the with initial taking to should for cool. testing for the with our undergone future where on This Eric Thanks maybe we turned or on pretty point initial

Rick Smith

deals major the thinking And scale that the big of are into next the So back into about the we we're year. On that right testing the rapidly we is with using with nailing scale the half agencies, can moving really a really this so, And in of that that couple X product pipeline year, we acceptance going agencies get that indicative create XXXX. focused making a the we’re Plus we're really couple sure so way larger OSP to can products market.

Josh Isner

to lot the user new early the we've deployability we're driving I of been a positive process. just of gone would the outside us say is first it’s me add But this customers early time about for probably in end given that's - the well feedback. through training pretty particularly with the these early really and I’d give officers conclusions

Unidentified Analyst

way definitely to X that That pushing add presented tie it just thinking X the for the is up sales customers of kind the sign it? And be records the way then in where is OSP with of makes you're about eventually being will functionality idea there in in that those thinking that a sense. with OSP

Rick Smith

building customers Absolutely. that or at a record. this convert over long to of We can can we're look like term Axon pipeline

lot OSP have customers Evidence.com I a a that as system. lot believe record amplify features experience of us expect So, to and a a to continue are think we in with faith then a those having revolutionary Plus deliver certainly our result very of and these customers X we good to


the Your next line go question Keith comes Research. Northerncoast ahead. from Please of Housum with

Your open. line is

Keith Housum

is challenges a it Body What A getting you the was X. have it and question from a be in understand manner. a do with end one strong, hear for especially our that you in have done for in there’s confidence manner guys done have Axon able quarter? but you process timely by AT&T is these the the we on guys guys been understanding the do to they that certification carriers, of that timely I certification will guys next

Rick Smith

the confidence. final process. with we that's We're visibility working in the have you're third where them amount say, defer but when Obviously, certification on party, have, confident on all of high the a we to one area based a that we

Jawad Ahsan

of of most them spent used the that of just ours we've heard of has would one AT&T tens critical, dollars I the if the Yes. streaming live video. critical on in directly the from add first on project not pretty cases is net billions most and

I we So tremendously from getting amount a think them. positive just support were of

as see very I think partnership. they being this a strategic

Keith Housum

sounds guess of then the is side the two at now it is process, with batteries the that you that was now the quarters? where it the that supplier rate I of the issue how after Are last scrap getting manufacturing the end find of acceptable? And annotated the on Outside rate whole versus guys scrap like guys you done. issue, to

Rick Smith

where reductions happening really So, we're the going design personally The by certainly end handles deeply think to significant progress. feeling continuing scrap good involved is I've we're the on to pretty to make consistently. and of continued in materials, we the in building we’re with see the rates about improve been some cartridges. year, – cost issue We've that. have cartridges, know I

still I’d in end say I spot. the don’t year, by QX some we But through ramping I by if QX. straight be it In that line of fourth the progress. I quarter, are we'll still terms know the would to from of of really good are seeing - real sort a think - be - We QX. should


Ho of comes Blair go & William the from Jonathan with ahead. line Your next Company. Please question

Your open. line is

Unidentified Analyst

This X - on [indiscernible] chain higher taking I the I of TASER Jonathan it's issue If demand - what And on for further could for more some probably supply could the what they Ho. too, how situation rectified to you’re is you elaborate questions. that supplier obviously, do thus you situation. used Thanks it’s – one-third only the before. our have the - far I’m higher you agree been a data been even any that rectified? it into month has significantly seen And it you gives to. that just it's XQ, quarter wondering, has never though the demand confidence Was than

Josh Isner

thing I supply issue say was batteries. chain It mind the for as not particular, a sensitive the batteries. This more of one we’re there’s with in very testing. it's just lot critical was So we were scaling, that battery quantities around mission [indiscernible] is like supplier. would blowing of issues we do

over we as And ramping, the And of - team needed was that was as of it. weren't all we we we the it some might how And fact, would in found is I'm by things that. that even get batteries supply the really happy replacement, scaling. end thought the we quarter. we - with them for proud our we

didn’t the shipment just of in where on So was disappointments come one it a time.

quantities very it higher up retention, we’re the we lot spot. good of think But been keep and I’ve on that and we're – taking sure battery that on issues less just collaborative, implemented issues in we’ve and quantity sensitive very those feels higher paying a make feedback eye a has scale close really quality they supplier receiving is blew like been wasn’t we’re very it But wasn't assured well. feeling and now on we're and very to team continue – we confident it a the attention, a in and the the I

Unidentified Analyst

the million design alliance So was change another a change, design the quality than so like unplanned was it was the it was the more from it’s impact was okay. that the just design it $X thing, change, change that by question, unplanned? or the of design sounds amount of impacted And that thing

Rick Smith

So good question.

to the cost - the adversely cartridges using X get availability, impact for us supply design demand. from can't to order we the also some enough the that an TASER meet in components and of just So frankly,

design was a change two this solves So us. for This big challenges design planned change.

One it the the a big it them is releases of and cost significantly on reduces other also constraint quantities.

was we to change risk the of right was in of as some validation. a middle purchase testing. think design right before I the Those fact, we into decided call. cartridges. in is part I rolled components make completed the validation in, that And we're Ultimately, training didn't the that we we So pass of decision, I changes think design doing really rolled it because of validation, that heavy

risk we’ve the having a the ended so and scrap purchase what that’s purchased hit And of there quarter. lot to there what up we

one of have with is round issues it. for design and relevant We in validated concerned heck That design revision testing was this we’ve through the which tested planned. issues the about the it the we of not change. on completely to pass – that we out out were that went colors and been was so. a it that for is flying didn’t but all It we’ve And validation of of it part

We design had the the pass validation parts pass asset. decision ahead made on an have basis was to risk first because a before a and the full validated purchase go to fully of the design and we didn't scrap

much case passed – very has risk design it validation over go we’d position hard the a But different passed in is validation team is us our be I of sometimes parts it your by and we’ve the it this this doesn't way and and now had better feeling good I’m in the quarter. our about of didn't puts a that think end all that it year. talking really


Julianna comes your question line with DeSimone Please of Your go is from the Imperial Capital. line open. ahead next

Julianna DeSimone

What Two Capital. police all being by Julianna used made major is Axon progress behalf in question. DeSimone with Imperial systems on CAD integrating has This of departments?

Rick Smith

progress it’s, CAD have we with made question the correctly understand systems? I If integrating what

Julianna DeSimone


Rick Smith

which volume. that pretty our a current system, we’ve deployed a the a by of Evidence.com have the lot I a high current head don't perspective. in body categorize our customers cost from our benefit So at cameras with is the is of used domestic it's my all integration events agencies evidence to U.S. CAD management huge top the of but to off auto used much agencies has our percentage

are we and development on. still new solution currently a developing dispatch Now, also we’re in that research

Julianna DeSimone

integrated and are creating and other a under departments the districts to is large the those up in that Axon smaller with solution situation same their And departments now in enforcement offering pressure is which keep state? law fellow

Rick Smith

I would it's revolutionary our we've approach to terms tightly taken of Axon is say product Dispatch be going with in the that integrated and the platform.

So, to pressure once Dispatch they roll of out of our available competitive technology which software mission in critical way is a a using different latest on efficacy going this are that's these to say, entire I suite product, agencies situations. of totally achieving we to the hardware put they're with just lot solution - and see new hey going think


of question Please the Steve open. Company with Dyer next Your comes your Craig-Hallum line line from Capital. & go ahead, is

Ryan Sigdahl

Sigdahl Steve. for Ryan It’s on

ramp significant year Given revenue pipeline? in acceleration what very confidence the a it guess expectations has in booked I of and that QX. been gives implies and for versus potential deals much guidance full the in in how QX you that

Rick Smith

is what take of me part team we let the So, have this. people working me first gives on confidence the

team’s very a have confidence you is in deliver. already ability how bit booked? I to about Josh high of much were our this So, talking

Josh Isner

half of large in second deals us. we certainly, specifics doing a to we're year. the into pipeline a the not than plan that to to that's and focus a on what the it's on And assurance as in to and second this upset on we several half little frankly have right in in upgrades team the but of of miss, year. track, there healthy ever motivated TASER is going the get I'm more number on execute front after go the scheduled, as of this going But back have well Yes,

Ryan Sigdahl

mean, between gross OpEx revenue kind my first far as what then confidence to something like guess you thereof I follow-up and to or help the gross is you growth margin margin. that that I second big from XX% and lack a also of math in EBITDA can margins half And as versus two, – ramp, then expansion, give incremental so half. OpEx that, by as in ramp gives the

Jawad Ahsan


specifically So I'm that you're in tough guidance top do on product, guidance gross which the given is intend line to haven't this, revenue do to when the launching it's you're in our a we it's year the that. a And that that. line new guided to that we don't launching a but way and on on thinking And margin that several year to and really intent have we look, EBITDA. why tough and bottom give deliver is on products, about

our of of we're spend conscious drive very we're that We're We to – taking And margin about long-term that driving guidance. profile. internally. a lot time to talking actions

period is of going product now over on long focus right are new platforms that to Our drive value ABX, These launches. time. successful a are platforms TASER X, these are new

ensure products right with margin our we on to now to making going short gross that focus are that high standards, providing trade great want to what term. the experience. And customers sure is the we're And in to performing these the dollars

are to an going continue do that. deliver of products sure that to example that's there's for trading that dollars refinements on to we're mentioned, where example, cost are and improvements, we're up working do Rick margin design And these team to going successful. a that to gross make

driving those that the But margin are to profile guidance we gross mindful - to the again, we’re long-term. over of

driving business top long-term deliver on given the and we're year where and to is for a gross the intent bottom line guidance that recap, So, on on our EBITDA we’ve margins. revenue and

Ryan Sigdahl

If which through credit Thanks good one and was said the through you guys that the queue. here trading Previously, end I in plan assumption? more sneak X Is the with effective that available offered you in one a the year. and credit can lower quick larger a or then I'll of still back hop right luck. TASER July

Rick Smith

Yes, correct. that's still


the go comes question Your Godfrey King. ahead. Please George line from C.L. with of next

Your line is open.

George Godfrey

Two questions.

quick a quarter? in one, the First one. What international was revenue

Jawad Ahsan

We’re just $XX George. that up, pulling million.

George Godfrey

million. $XX


between the me for you software TASER the operating can you are on targeting the business? you just margin what talked about the up Jawad, sensor remind and and profitability Following business long-term

Jawad Ahsan

we of sitting of all So that not the one exercise is between are the very we that thinking that what segments. in TASER to business administrative operating in a costs dynamics terms basically to these the allocate margin because we have arbitrary of were - P&L and try is

- guided margin then business will have the be will that $XX term. said in to and the improvement. at million for then points XXXX, we million that XX% we’ve end $XX the the basis still we’ve overall XXX it in sensors we the to EBITDA. guided margin are TASER of gross longer software And to segment be of fact XXX XX% of We that and to also So, XXXX, still mindful and

But market the frankly, in XXXX, capture exciting business we $XX make to and so the we're million. product to to sure all making pretty the again, with had and we into want investments EBITDA ahead we that guidance opportunity of have $XX is million us, those the launches opportunities

George Godfrey

look state five is always just I put one what like thinking And a is what appreciate years, that that's out? and constantly year, I always in pushing A, get that Thanks. timeline timeline a state, color. to B, three and like appreciate that to because on years, it a was steady I seems steady margin it’s the you just whether can

Jawad Ahsan

and products adjusted online, specific new bring time on I tell long-term that accelerate. can what that to margin frame you a XX% as margin. But can targeting So we we're for EBITDA, software expect that given that is margin we haven't we

bringing online we're services, our this next cloud dispatch all to be going you our months, the XX when are going over XX margins now as strip you margins professional be we're well. Axon business, at to high XX% quarter very look today delivering software those products records are example, at to For and over out

would I next expect so the And years we're adjusted approaching be that that EBITDA going in few to XX% margin. that


next question with Please Erlikh Baird. Your line from of ahead. go comes the Charlie

is line Your open.

Charlie Erlikh

question. Thanks for taking the

RMS, a landscape Just are at when picture lot had of a you question look the bigger there players. RMS competitive existing on

your it us to that those record just you could product So remind existing in you about gives confidence your what players? ability is displace

Rick Smith

right all is together digital and camera becoming is They're just central of like one integrated rather to the where two thing your your body would records and valuable then of representation records in evidence the is system actually built have one every very paper. in That's of not records of record. the have and video the So element into sort Right. seeing of photos. to experience term, things, pieces We're write than of integration videos videos. everything your and that digital short else record having the happen a

that integration one. go the separately for these And their record, system records. for then I’m you our is so that agencies sorry video into

saying - to from I other now training had is general, be Customers of design through stars the going able is items very different on in had feedback would what experience say is it’s which a our why we like is level wow, just The are this historically customers just from agent. five-star seven basis.

is ultimately that better is tuning connected microphones, we really the and advantage so a audio of the better can can able then specifically the much smart we device be optimized video so report. from being sensors. long that do ABX and some the really multiple have term transcription is to extract we real And that and our the we with do records extract to to transcription can pre-populated audio

engine These our sensors the cameras drones, officers the in-car on our today’s business that today RMS smart into system power the body the drive all our the cameras, interview system, systems cops strength for that spent will rooms That keyboards, record is the are of our sensors. is management will of typing future. today's - sensors

Charlie Erlikh

Fleet. you far guys WatchGuard thoughts on your and acquisition at how changes in one reception Fleet competitive just hear I’d curious landscape or expected quick one that their be so also on then, Motorola Fleet Is getting elsewhere. to And

Rick Smith

not mean share be but I - competitors we out a bite taking Yes, to market were offering. critical our WatchGuard's our of really integrated with of we

that not so, a we're to solutions subpar adding don't - I makes And better one. know

kind and of position. really confident our vision, our really our got feel future really blade, you just Fleet in-car we're about we in so, And Fleet so product is confident the roadmap program compelling a Fleet lead or


question Please your DeSimone Imperial Julianna go comes line from the And of last ahead. with Capital.

is line Your open.

Julianna DeSimone

working software to taking upgrade enhance for of What forensic Axon’s total solution? my question. is types on analytics the in Thanks

Rick Smith

around require record roadmap getting a with into - terms what of we’re that We specific our haven’t little more detail doing would dispatch. in and

we the differentiator our be particularly very we’ll of manual So, a our there. certainly, given theme is haven’t able processes. because roadmap today area with real see on and AI thing any we as analytic are automate levels an that to But specifics future


any management today's turn for now That the over remarks. closing call. I to back concludes call

Andrea James

All right.

call our major International results analysts will for of the Chicago the Chiefs an The conference and to hosting everybody our will discussing next on at you quarterly this of joining be today. seeing In quarter us event on forward next shareholders call. institutional we Association look So year there be for our we Police. and and thanks the in

So thanks everyone.


This today's conference concludes call.

You now disconnect. may