Financial Data and Key Metrics Changes - First quarter revenue reached $604 million, representing a 31% year-over-year increase, marking the thirteenth consecutive quarter of over 25% growth [26][27] - Adjusted EBITDA margin was reported at 25.7%, with annual recurring revenue (ARR) of $1.1 billion, reflecting a 34% year-over-year increase [26][27] - Adjusted gross margin improved to 63.6%, up 40 basis points year-over-year, primarily due to a shift towards software [28] Business Line Data and Key Metrics Changes - Software and services revenue increased by 39% year-over-year to $263 million, driven by strong demand for digital evidence management and premium add-ons [27] - Connected devices revenue grew by 26% year-over-year to $341 million, fueled by sales of TASER 10 devices and cartridges [28] Market Data and Key Metrics Changes - International bookings showed strong momentum, with demand noted in Australia, Latin America, Canada, Asia, the UK, and Europe, contributing to the top 10 international deals in the quarter [22] - Emerging verticals, including corrections and justice, experienced triple-digit growth, while enterprise markets are building a strong pipeline [23] Company Strategy and Development Direction - The company is focused on building an ecosystem for public safety, integrating various technologies and partnerships to enhance community safety [12][14] - The new AI Era Plan aims to provide predictable pricing and access to innovative AI solutions, enhancing the company's product offerings [8][12] - The company is committed to maintaining its headquarters in Arizona, overcoming legislative hurdles to support long-term growth [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong pipeline and bookings for the remainder of 2025, anticipating record annual bookings [21][31] - The company is prepared to navigate macroeconomic challenges, with minimal headwinds reported in key markets [47] - Future guidance for 2025 includes revenue expectations in the range of $2.6 to $2.7 billion, reflecting a 27% growth rate at the midpoint [31] Other Important Information - The company has updated its segment reporting to better align with its diversified product offerings, now categorizing them into connected devices and software and services [26] - Tariff impacts are expected to affect adjusted EBITDA margin guidance by approximately 50 basis points for the full year, but no price increases are planned for customers [30] Q&A Session Summary Question: What drove the strong ARR growth in Q1? - Management indicated that the strong ARR growth was primarily driven by robust bookings from Q4, with contributions from both new users and existing customers upgrading to premium plans [38][39] Question: What factors are contributing to international growth? - The company noted improved focus on international markets, enhanced execution, and a diverse product adoption strategy as key drivers of international growth [40][41] Question: Are there any macroeconomic concerns affecting demand? - Management reported virtually no headwinds in US state and local markets, although federal opportunities are somewhat stalled pending budget clarity [47][49] Question: How is the company addressing the fixed ALPR market? - The company is excited about entering the fixed ALPR market, leveraging existing relationships and technology to provide competitive offerings [102] Question: What is the outlook for federal opportunities? - The company is focusing on border security technologies and real-time video solutions, anticipating significant demand in these areas [83][84]

Financial Data and Key Metrics Changes - The company reported Q4 revenue of $575 million, representing a 34% year-over-year increase, marking the 12th consecutive quarter of over 25% revenue growth [38][39] - Total revenue for the year exceeded $2 billion, nearly doubling from two years ago, with a consistent growth rate of over 30% for three consecutive years [28][39] - Adjusted gross margin was 63.2%, and adjusted EBITDA margin was 24.6%, with a full-year adjusted EBITDA margin of 25%, achieved a year ahead of schedule [40][41] Business Line Data and Key Metrics Changes - TASER revenue increased by 37%, Sensors by 18%, and Software & Services by 41% year-over-year [39] - The company booked over $5 billion in business last year, with about half closing in Q4, and TASER 10 orders outpacing TASER 7 by 2x [29][30] - The officer safety plan bookings in Q4 were the highest ever, with strong adoption of premium plans and emerging products [30] Market Data and Key Metrics Changes - International bookings grew nearly 50% sequentially in Q4, building on a 40% sequential growth in Q3 [32][33] - Enterprise bookings tripled year-over-year, with the largest deal in company history booked with a global logistics provider [33] - The total future contracted bookings exceeded $10 billion, indicating a healthy pipeline for future growth [35][41] Company Strategy and Development Direction - The company aims to leverage advancements in AI, real-time operations, and drones to double its overall opportunity set [31][39] - Investments in R&D and technology are prioritized to support growth and innovation, with a focus on enhancing customer safety and operational efficiency [40][46] - The company is exploring options for its headquarters due to challenges in Arizona's political and legal environment, with potential relocation if issues are not resolved [22][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the federal market, viewing potential funding cuts as an opportunity for increased business [52][54] - The company anticipates another record bookings year in 2025, with a strong pipeline and execution focus [36][44] - Management highlighted the transformative impact of AI tools on operational efficiency and customer satisfaction [68][136] Other Important Information - The company achieved a net revenue retention rate of 123%, reinforcing business visibility and predictability [39][122] - The company is entering 2025 with a clean inventory position and strong free cash flow generation above 60% [43][44] - CapEx is expected to be in the range of $140 million to $180 million, driven by increased TASER 10 capacity and investments in R&D [48][49] Q&A Session Summary Question: What portion of total revenues are from federal contracts? - Management indicated that there is no real concern regarding funding cuts, and they see more opportunities in the federal space moving forward [52][54] Question: What is the impact of the Ukraine war on drone-related business? - Management noted that the global focus on drone detection and defense has increased, positioning the company favorably in this market [58][61] Question: What is the adoption rate of AI tools? - Management reported that AI products are experiencing rapid adoption, with significant interest and deals being closed shortly after launch [68][69] Question: What is the status of the Flock Safety partnership? - Management stated that while they exited the partnership, both sides are interested in resuming it under new terms [76][78] Question: How is the federal business expected to expand? - Management expressed confidence in the continued expansion of body camera programs within federal law enforcement [80][81] Question: What is the outlook for TASER 10 supply and demand? - Management confirmed that demand for TASER 10 continues to outpace supply, and they are investing to increase capacity [124][125]