Segment Data

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment Data

14. Segment Data

Our operations are comprised of two reportable segments: the manufacture and sale of CEDs, batteries, accessories, extended warranties and other products and services (the “TASER” segment); and the software and sensors business, which includes the sale of devices, wearables, applications, cloud and mobile products, and services (collectively, the “Software and Sensors” segment). In both segments, we report sales of products and services. Service revenue in both segments includes sales related to Axon Evidence. In the Software and Sensors segment, service revenue also includes other recurring cloud-hosted software revenue and related professional services. Collectively, this revenue is sometimes referred to as "Axon Cloud revenue." Our Chief Executive Officer, who is the CODM, is not provided asset information or sales, general, and administrative expense by segment.

Information relative to our reportable segments was as follows (in thousands):

	Three Months Ended June 30, 2020						Three Months Ended June 30, 2019
			Software and						Software and
	TASER		Sensors		Total		TASER		Sensors		Total
Net sales from products	$	69,877	$	28,878	$	98,755	$	60,423	$	19,968	$	80,391
Net sales from services		613		41,891		42,504		149		31,822		31,971
Net sales		70,490		70,769		141,259		60,572		51,790		112,362
Cost of product sales		27,242		16,583		43,825		24,262		13,958		38,220
Cost of service sales		—		9,257		9,257		—		8,582		8,582
Cost of sales		27,242		25,840		53,082		24,262		22,540		46,802
Gross margin	$	43,248	$	44,929	$	88,177	$	36,310	$	29,250	$	65,560
Research and development	$	3,762	$	25,798	$	29,560	$	3,087	$	20,406	$	23,493

	Six Months Ended June 30, 2020						Six Months Ended June 30, 2019
			Software and						Software and
	TASER		Sensors		Total		TASER		Sensors		Total
Net sales from products	$	145,052		60,991	$	206,043	$	125,724	$	42,756	$	168,480
Net sales from services		1,333		81,045		82,378		239		59,453		59,692
Net sales		146,385		142,036		288,421		125,963		102,209		228,172
Cost of product sales		57,490		35,219		92,709		47,540		30,280		77,820
Cost of service sales		—		18,927		18,927		—		15,875		15,875
Cost of sales		57,490		54,146		111,636		47,540		46,155		93,695
Gross margin	$	88,895	$	87,890	$	176,785	$	78,423	$	56,054	$	134,477

Research and development $ 6,794 $ 49,147 $ 55,941 $ 6,799 $ 40,048 $ 46,847