Revenues

6 Months Ended

Jun. 30, 2023

Revenues.

Revenues

Note 2 - Revenues

Nature of Products and Services

The following tables present our revenues by primary product and service offering (in thousands):

	Three Months Ended June 30, 2023						Three Months Ended June 30, 2022
			Software and						Software and
	TASER		Sensors		Total		TASER		Sensors		Total
TASER Devices (Professional)	$	84,975	$	—	$	84,975	$	70,313	$	—	$	70,313
Cartridges		48,425		—		48,425		49,845		—		49,845
Axon Evidence and Cloud Services		8,494		132,102		140,596		3,720		81,911		85,631
Extended Warranties		7,715		15,166		22,881		7,459		12,498		19,957
Axon Body Cameras and Accessories		—		32,781		32,781		—		33,938		33,938
Axon Fleet Systems		—		35,960		35,960		—		15,881		15,881
Other (1) (2)		4,801		4,186		8,987		4,249		5,799		10,048
Total	$	154,410	$	220,195	$	374,605	$	135,586	$	150,027	$	285,613

	Six Months Ended June 30, 2023						Six Months Ended June 30, 2022
			Software and						Software and
	TASER		Sensors		Total		TASER		Sensors		Total
TASER Devices (Professional)	$	152,447	$	—	$	152,447	$	133,477	$	—	$	133,477
Cartridges		95,225		—		95,225		87,670		—		87,670
Axon Evidence and Cloud Services		15,695		250,416		266,111		6,737		161,850		168,587
Extended Warranties		15,385		29,251		44,636		14,138		21,559		35,697
Axon Body Cameras and Accessories		—		71,578		71,578		—		72,455		72,455
Axon Fleet Systems		—		68,932		68,932		—		29,701		29,701
Other (1) (2)		9,940		8,779		18,719		7,924		6,528		14,452
Total	$	288,692	$	428,956	$	717,648	$	249,946	$	292,093		542,039

(1) TASER segment “Other” includes smaller categories, such as Virtual Reality (“VR”) hardware, weapons training revenue such as revenue associated with our Master Instructor School, and TASER consumer device sales.

(2) Software and Sensors segment “Other” includes revenue from items including Signal Sidearm, Interview Room and Axon Air.

The following table presents our revenues disaggregated by geography (in thousands):

	Three Months Ended June 30,								Six Months Ended June 30,
	2023				2022				2023				2022
United States	$	321,921	86	%	$	228,446	80	%	$	612,859	85	%	$	442,660	82	%
Other countries		52,684	14			57,167	20			104,789	15			99,379	18
Total	$	374,605	100	%	$	285,613	100	%	$	717,648	100	%	$	542,039	100	%

Contract Balances

The following table presents our contract assets, contract liabilities and certain information related to these balances as of and for the six months ended June 30, 2023 (in thousands):

	June 30, 2023
Contract assets, net	$	330,506
Contract liabilities (deferred revenue)		677,670
Revenue recognized in the period from:
Amounts included in contract liabilities at the beginning of the period		221,765

Contract liabilities (deferred revenue) consisted of the following (in thousands):

	June 30, 2023						December 31, 2022
	Current		Long-Term		Total		Current		Long-Term		Total
Warranty:
TASER	$	13,648	$	16,944	$	30,592	$	14,207	$	17,618	$	31,825
Software and Sensors		29,138		15,293		44,431		26,229		15,338		41,567
		42,786		32,237		75,023		40,436		32,956		73,392
Hardware:
TASER		31,652		31,503		63,155		49,361		12,640		62,001
Software and Sensors		64,101		105,574		169,675		50,426		109,227		159,653
		95,753		137,077		232,830		99,787		121,867		221,654
Services:
TASER		7,575		8,402		15,977		7,637		9,501		17,138
Software and Sensors		266,098		87,742		353,840		212,177		83,679		295,856
		273,673		96,144		369,817		219,814		93,180		312,994
Total	$	412,212	$	265,458	$	677,670	$	360,037	$	248,003	$	608,040

	June 30, 2023						December 31, 2022
	Current		Long-Term		Total		Current		Long-Term		Total
TASER	$	52,875	$	56,849	$	109,724	$	71,205	$	39,759	$	110,964
Software and Sensors		359,337		208,609		567,946		288,832		208,244		497,076
Total	$	412,212	$	265,458	$	677,670	$	360,037	$	248,003	$	608,040

Remaining Performance Obligations

As of June 30, 2023, we had approximately $5.2 billion of remaining performance obligations, which included both recognized contract liabilities as well as amounts that will be invoiced and recognized in future periods. The remaining performance obligations are limited only to arrangements that meet the definition of a contract under Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers, as of June 30, 2023. We expect to recognize between 15% - 25% of this balance over the next twelve months, and generally expect the remainder to be recognized over the following ten years, subject to risks related to delayed deployments, budget appropriation or other contract cancellation clauses.