Axon Enterprise (AXON) investor relations material

Strategic vision and innovation

• Mission-driven focus aims to reduce deaths between police and public by 50% by 2032, guiding product development and expansion into new categories.

• Ongoing innovation includes AI, drones, and counter-drone technologies, expanding beyond core TASER and body camera products.

• Hardware-software integration is central, with new solutions often creating entirely new market categories.

• Expansion targets not only public safety but also enterprise, federal, and international markets.

• Product bundles, such as the officer safety plan, are regularly updated with new offerings, driving recurring revenue.

Product lifecycle and growth drivers

• TASER 10 is in year three of a five-year refresh cycle, with ongoing innovation and expansion into new markets like corrections.

• Body cameras are now a standard expectation, with growing applicability in enterprise and retail sectors.

• Software business outpaces hardware in growth, with $1.2B ARR and 124% net revenue retention.

• AI Era Plan, launched less than a year ago, achieved $150M in Q2 bookings, with 30% of Q2 bookings from new products.

• Drones and counter-drone solutions are early but expected to become integral across multiple sectors.

AI and software innovation

• AI Era Plan bundles AI-powered tools like Draft One (report writing), real-time translation, and Policy Chat, offering tangible productivity gains.

• Draft One saves officers about 11 hours per week, improving job satisfaction and efficiency.

• Policy Chat enables instant access to policy documents, reducing errors and improving compliance.

• Bundling AI services future-proofs customer investments and leverages trust built through consistent innovation.

• Change management and user adoption are current focus areas for AI tool rollout.