Financial Data and Key Metrics Changes - Second quarter revenue reached $669 million, a 33% year-over-year increase, marking the fourteenth consecutive quarter of over 25% revenue growth [26] - Adjusted gross margin improved to 63.3%, up 20 basis points year-over-year, driven by a favorable product mix towards software and services [27] - Adjusted EBITDA margin was 25.7%, exceeding expectations due to higher revenue and operating leverage [28] Business Line Data and Key Metrics Changes - Software and services revenue grew 39% year-over-year to $292 million, driven by strong adoption of new products [26] - Connected devices revenue increased 29% year-over-year to $376 million, with TASER products growing 19% and personal sensors growing 24% [27] - The fastest adopted products include Draft One, TASER 10, and Axon Body 4, indicating strong market acceptance [14][26] Market Data and Key Metrics Changes - International team secured a new TASER customer in Africa, becoming the largest in the region, and signed a contract in the gaming sector, marking a significant expansion [22] - Over 30% of bookings in Q2 came from new product categories, highlighting the growing contribution of innovative solutions [23] - The company anticipates high 30% year-over-year bookings growth for the second half of the year, indicating strong market demand [24] Company Strategy and Development Direction - The company emphasizes collaboration in public safety, aiming to expand its ecosystem and enhance connectivity among various stakeholders [16] - Investments in R&D are prioritized to support a broad and cohesive product pipeline, with a focus on AI, drones, and robotics [29] - The strategy includes increasing hiring, particularly in R&D, to support future growth and product development [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for new technology, particularly in AI and real-time operations, which is outpacing expectations [12] - The company raised its 2025 revenue guidance to a range of $2.65 to $2.73 billion, reflecting confidence in the pipeline for the second half [28] - Management highlighted the importance of building trust with customers, which enables faster adoption of new solutions [14] Other Important Information - The company closed nearly $150 million in bookings for its AI era plan in Q2 alone, showcasing the growing interest in AI-driven solutions [23] - The adjusted EBITDA guidance was raised to a range of $665 million to $685 million, maintaining a 25% margin target for the year [28] Q&A Session Summary Question: Can you discuss the enterprise addressable market and product traction? - Management noted strong interest across the full suite of products, including body cams and drones, indicating a positive trend in the enterprise market [32] Question: Can you elaborate on the bookings growth and success? - Management highlighted that bookings were up by 50%, with the largest deal in company history closed during the quarter, showcasing strong execution [36] Question: What is driving the demand for Draft One and other products? - Management confirmed that demand for Draft One is accelerating, with a loaded pipeline for the AI era plan, indicating strong customer reception [42] Question: Can you provide insights on platform solutions and counter drone success? - Management emphasized the growing demand for counter drone solutions, driven by recent global events and the need for enhanced security measures [52] Question: What is the outlook for international growth? - Management expressed optimism about international opportunities, particularly in Latin America, the UK, and Europe, with significant deals expected [68] Question: How is the company positioned regarding federal government opportunities? - Management indicated that they are well-positioned to respond to federal solicitations, particularly in counter drone and video products [81] Question: Can you discuss the growth of the premium software offering? - Management explained that customers typically start with basic plans and gradually upgrade as they see the value in additional features and products [97]

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 [24] - Adjusted EBITDA margin was reported at 25.7%, with annual recurring revenue (ARR) of $1.1 billion, reflecting a 34% year-over-year increase [24][30] - Adjusted gross margin improved to 63.6%, up 40 basis points year-over-year, primarily due to a shift towards software [27] 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 [26] - Connected devices revenue grew by 26% year-over-year to $341 million, fueled by sales of TASER 10 devices and cartridges [27] - TASER 10 orders are pacing at twice the adoption rate of TASER 7, indicating strong market acceptance [20] Market Data and Key Metrics Changes - International bookings showed strong performance, with demand noted in Australia, Latin America, Canada, Asia, the UK, and Europe [20] - Emerging verticals, including corrections and justice, experienced triple-digit growth, while enterprise solutions are building a strong pipeline [21] Company Strategy and Development Direction - The company is focused on building an ecosystem with partners to enhance public safety through technology, including the introduction of the Axon Assistant and AI-powered solutions [6][8] - The strategic shift to connected devices and software and services segments reflects the company's increasing product diversification [25] - The company aims to maintain a strong focus on R&D investments while managing supply chain challenges due to tariffs [28][30] 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 growth [19][30] - The leadership acknowledged potential macroeconomic challenges but noted minimal impact on core markets, particularly in US state and local sectors [46] - The company is optimistic about the federal market, particularly with new budget allocations for advanced security technologies [84] Other Important Information - The company has updated its segment reporting to better align with its diversified product offerings [25] - Management highlighted the importance of ethical considerations in technology deployment, particularly regarding privacy and public safety [54] 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 and an increase in new users and premium subscriptions [37] Question: What factors are contributing to international growth? - The company noted improved focus on international markets and better execution from the sales team as key drivers of growth [40] 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 [46] Question: How is the company addressing the fixed ALPR market? - The company is leveraging its existing imaging technology to provide best-in-class fixed ALPR solutions, with a dedicated sales team for this product line [102] Question: What is the outlook for federal contracts? - Management expressed optimism about federal contracts, particularly in border security and advanced technologies, while noting that FUSIS is progressing towards FedRAMP certification [92][93]

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]