Segment Data

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Segment Data

17. Segment Data

Our operations are comprised of two reportable segments: the TASER segment and 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 TASER segment, service revenue also includes digital subscription training content. 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):

	For the year ended December 31, 2020
			Software and
	TASER		Sensors		Total
Net sales from products	$	362,649	$	137,601	$	500,250
Net sales from services		3,903		176,850		180,753
Net sales		366,552		314,451		681,003
Cost of product sales		136,925		87,206		224,131
Cost of service sales		—		40,541		40,541
Cost of sales		136,925		127,747		264,672
Gross margin	$	229,627	$	186,704	$	416,331
Research and development	$	15,380	$	107,815	$	123,195

	For the year ended December 31, 2019
			Software and
	TASER		Sensors		Total
Net sales from products	$	280,554	$	118,920	$	399,474
Net sales from services		1,107		130,279		131,386
Net sales		281,661		249,199		530,860
Cost of product sales		107,188		83,495		190,683
Cost of service sales		—		32,891		32,891
Cost of sales		107,188		116,386		223,574
Gross margin	$	174,473	$	132,813	$	307,286
Research and development	$	14,469	$	86,252	$	100,721

	For the year ended December 31, 2018
			Software and
	TASER		Sensors		Total
Net sales from products	$	253,115	$	74,520	$	327,635
Net sales from services		—		92,433		92,433
Net sales		253,115		166,953		420,068
Cost of product sales		80,354		58,983		139,337
Cost of service sales		—		22,148		22,148
Cost of sales		80,354		81,131		161,485
Gross margin	$	172,761	$	85,822	$	258,583
Research and development	$	17,012	$	59,844	$	76,856