Segment Data

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Segment Data

13. 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, 2021						Three Months Ended March 31, 2020
			Software and						Software and
	TASER		Sensors		Total		TASER		Sensors		Total
Net sales from products	$	97,302	$	43,584	$	140,886	$	75,175	$	32,113	$	107,288
Net sales from services		1,697		52,436		54,133		720		39,154		39,874
Net sales		98,999		96,020		195,019		75,895		71,267		147,162
Cost of product sales		32,945		25,671		58,616		30,248		18,636		48,884
Cost of service sales		—		13,050		13,050		—		9,670		9,670
Cost of sales		32,945		38,721		71,666		30,248		28,306		58,554
Gross margin	$	66,054	$	57,299	$	123,353	$	45,647	$	42,961	$	88,608
Research and development	$	9,243	$	37,775	$	47,018	$	3,032	$	23,349	$	26,381