Segment Data

12 Months Ended

Dec. 31, 2022

Segment Data

Segment Data

Note 20 - 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, 2022
			Software and
	TASER		Sensors		Total
Net sales from products	$	511,010	$	290,378	$	801,388
Net sales from services		20,556		367,991		388,547
Net sales		531,566		658,369		1,189,935
Cost of product sales		194,957		168,262		363,219
Cost of service sales		—		98,078		98,078
Cost of sales		194,957		266,340		461,297
Gross margin	$	336,609	$	392,029	$	728,638
Research and development	$	51,607	$	182,203	$	233,810

	For the year ended December 31, 2021
			Software and
	TASER		Sensors		Total
Net sales from products	$	426,916	$	181,609	$	608,525
Net sales from services		10,011		244,845		254,856
Net sales		436,927		426,454		863,381
Cost of product sales		149,739		110,359		260,098
Cost of service sales		145		62,228		62,373
Cost of sales		149,884		172,587		322,471
Gross margin	$	287,043	$	253,867	$	540,910
Research and development	$	46,136	$	147,890	$	194,026

	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