Segment Data (Tables)

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Summary of Operational Information Relative to the Company's Reportable Segments

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 March 31, 2020						Three Months Ended March 31, 2019
			Software and						Software and
	TASER		Sensors		Total		TASER		Sensors		Total
Net sales from products	$	75,175	$	32,113	$	107,288	$	65,301	$	22,788	$	88,089
Net sales from services		720		39,154		39,874		90		27,631		27,721
Net sales		75,895		71,267		147,162		65,391		50,419		115,810
Cost of product sales		30,248		18,636		48,884		23,278		16,322		39,600
Cost of service sales		—		9,670		9,670		—		7,293		7,293
Cost of sales		30,248		28,306		58,554		23,278		23,615		46,893
Gross margin	$	45,647	$	42,961	$	88,608	$	42,113	$	26,804	$	68,917
Research and development	$	3,032	$	23,349	$	26,381	$	3,712	$	19,642	$	23,354