Revenues

6 Months Ended

Jun. 30, 2024

Revenues.

Revenues

Note 2 - Revenues

Nature of Products and Services

The following tables present our revenues by primary product and service offering and reportable segment (in thousands):

	Three Months Ended June 30, 2024						Three Months Ended June 30, 2023
			Software and						Software and
	TASER		Sensors		Total		TASER		Sensors		Total
TASER Devices (Professional)	$	104,624	$	—	$	104,624	$	84,975	$	—	$	84,975
Cartridges		65,415		—		65,415		48,425		—		48,425
Axon Evidence and Cloud Services		14,215		192,735		206,950		8,494		132,102		140,596
Extended Warranties		8,908		18,310		27,218		7,715		15,166		22,881
Axon Body Cameras and Accessories		—		59,024		59,024		—		32,781		32,781
Axon Fleet Systems		—		26,601		26,601		—		35,960		35,960
Other (1) (2)		3,796		10,471		14,267		4,801		4,186		8,987
Total	$	196,958	$	307,141	$	504,099	$	154,410	$	220,195	$	374,605

	Six Months Ended June 30, 2024						Six Months Ended June 30, 2023
			Software and						Software and
	TASER		Sensors		Total		TASER		Sensors		Total
TASER Devices (Professional)	$	203,300	$	—	$	203,300	$	152,447	$	—	$	152,447
Cartridges		121,613		—		121,613		95,225		—		95,225
Axon Evidence and Cloud Services		26,436		368,193		394,629		15,695		250,416		266,111
Extended Warranties		17,434		36,784		54,218		15,385		29,251		44,636
Axon Body Cameras and Accessories		—		110,229		110,229		—		71,578		71,578
Axon Fleet Systems		—		54,988		54,988		—		68,932		68,932
Other (1) (2)		6,923		18,935		25,858		9,940		8,779		18,719
Total	$	375,706	$	589,129	$	964,835	$	288,692	$	428,956		717,648

(1) TASER segment “Other” includes smaller categories, such as Virtual Reality (“VR”) hardware, weapons training revenue such as revenue associated with our Master Instructor School, and TASER consumer device sales.

(2) Software and Sensors segment “Other” includes revenue from items including Signal Sidearm, Interview Room, Axon Air and other sensors and equipment.

The following table presents our revenues disaggregated by geography (in thousands):

	Three Months Ended June 30,								Six Months Ended June 30,
	2024				2023				2024				2023
United States	$	425,501	84	%	$	321,921	86	%	$	817,907	85	%	$	612,859	85	%
Other countries		78,598	16			52,684	14			146,928	15			104,789	15
Total	$	504,099	100	%	$	374,605	100	%	$	964,835	100	%	$	717,648	100	%

Contract Balances

The following table presents our contract assets, contract liabilities and certain information related to these balances as of and for the six months ended June 30, 2024 (in thousands):

	June 30, 2024
Contract assets, net	$	450,638
Contract liabilities (deferred revenue)		777,293
Revenue recognized in the period from:
Amounts included in contract liabilities at the beginning of the period		327,266

Contract liabilities (deferred revenue) consisted of the following (in thousands):

	June 30, 2024						December 31, 2023
	Current		Long-Term		Total		Current		Long-Term		Total
Extended Warranty:
TASER	$	14,628	$	18,168	$	32,796	$	14,773	$	18,828	$	33,601
Software and Sensors		32,274		17,907		50,181		33,940		16,036		49,976
		46,902		36,075		82,977		48,713		34,864		83,577
Hardware:
TASER		51,708		27,343		79,051		42,464		29,689		72,153
Software and Sensors		65,462		117,643		183,105		62,635		117,024		179,659
		117,170		144,986		262,156		105,099		146,713		251,812
Services:
TASER		6,889		4,557		11,446		7,939		3,983		11,922
Software and Sensors		314,908		105,806		420,714		329,940		96,292		426,232
		321,797		110,363		432,160		337,879		100,275		438,154
Total	$	485,869	$	291,424	$	777,293	$	491,691	$	281,852	$	773,543

	June 30, 2024						December 31, 2023
	Current		Long-Term		Total		Current		Long-Term		Total
TASER	$	73,225	$	50,068	$	123,293	$	65,176	$	52,500	$	117,676
Software and Sensors		412,644		241,356		654,000		426,515		229,352		655,867
Total	$	485,869	$	291,424	$	777,293	$	491,691	$	281,852	$	773,543

Remaining Performance Obligations

As of June 30, 2024, we had approximately $7.4 billion of remaining performance obligations, which included both recognized contract liabilities as well as amounts that will be invoiced and recognized in future periods. The remaining performance obligations are limited only to arrangements that meet the definition of a contract under Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers, as of June 30, 2024. We currently expect to recognize between 15% - 25% of this balance over the next 12 months, and generally expect the remainder to be recognized over the following ten years, subject to risks related to delayed deployments, budget appropriation or other contract cancellation clauses.