Segment Data

6 Months Ended

Jun. 30, 2021

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, 2021						Three Months Ended June 30, 2020
			Software and						Software and
	TASER		Sensors		Total		TASER		Sensors		Total
Net sales from products	$	110,637	$	45,790	$	156,427	$	69,877	$	28,878	$	98,755
Net sales from services		1,891		60,477		62,368		613		41,891		42,504
Net sales		112,528		106,267		218,795		70,490		70,769		141,259
Cost of product sales		37,701		27,600		65,301		27,242		16,583		43,825
Cost of service sales		145		15,420		15,565		—		9,257		9,257
Cost of sales		37,846		43,020		80,866		27,242		25,840		53,082
Gross margin	$	74,682	$	63,247	$	137,929	$	43,248	$	44,929	$	88,177
Research and development	$	12,313	$	41,639	$	53,952	$	3,762	$	25,798	$	29,560

	Six Months Ended June 30, 2021						Six Months Ended June 30, 2020
			Software and						Software and
	TASER		Sensors		Total		TASER		Sensors		Total
Net sales from products	$	207,939		89,374	$	297,313	$	145,052		60,991	$	206,043
Net sales from services		3,588		112,913		116,501		1,333		81,045		82,378
Net sales		211,527		202,287		413,814		146,385		142,036		288,421
Cost of product sales		70,646		53,271		123,917		57,490		35,219		92,709
Cost of service sales		145		28,470		28,615		—		18,927		18,927
Cost of sales		70,791		81,741		152,532		57,490		54,146		111,636
Gross margin	$	140,736	$	120,546	$	261,282	$	88,895	$	87,890	$	176,785
Research and development	$	21,556	$	79,414	$	100,970	$	6,794	$	49,147	$	55,941