Revenues

9 Months Ended

Sep. 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 September 30, 2023						Three Months Ended September 30, 2022
			Software and						Software and
	TASER		Sensors		Total		TASER		Sensors		Total
TASER Devices (Professional)	$	86,718	$	—	$	86,718	$	80,146	$	—	$	80,146
Cartridges		54,279		—		54,279		46,475		—		46,475
Axon Evidence and Cloud Services		8,975		150,563		159,538		5,125		96,814		101,939
Extended Warranties		8,078		16,054		24,132		7,290		14,511		21,801
Axon Body Cameras and Accessories		—		52,488		52,488		—		40,944		40,944
Axon Fleet Systems		—		26,716		26,716		—		10,139		10,139
Other (1) (2)		4,520		5,210		9,730		5,847		4,463		10,310
Total	$	162,570	$	251,031	$	413,601	$	144,883	$	166,871	$	311,754

	Nine Months Ended September 30, 2023						Nine Months Ended September 30, 2022
			Software and						Software and
	TASER		Sensors		Total		TASER		Sensors		Total
TASER Devices (Professional)	$	239,165		—	$	239,165	$	213,623	$	—	$	213,623
Cartridges		149,504		—		149,504		134,145		—		134,145
Axon Evidence and Cloud Services		24,670		400,979		425,649		11,862		258,664		270,526
Extended Warranties		23,463		45,305		68,768		21,428		36,070		57,498
Axon Body Cameras and Accessories		—		124,066		124,066		—		113,399		113,399
Axon Fleet Systems		—		95,648		95,648		—		39,840		39,840
Other (1) (2)		14,460		13,989		28,449		13,771		10,991		24,762
Total	$	451,262	$	679,987	$	1,131,249	$	394,829	$	458,964		853,793

(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 September 30,								Nine Months Ended September 30,
	2023				2022				2023				2022
United States	$	342,090	83	%	$	264,644	85	%	$	954,949	84	%	$	707,304	83	%
Other countries		71,511	17			47,110	15			176,300	16			146,489	17
Total	$	413,601	100	%	$	311,754	100	%	$	1,131,249	100	%	$	853,793	100	%

Contract Balances

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

	September 30, 2023
Contract assets, net	$	339,186
Contract liabilities (deferred revenue)		724,973
Revenue recognized in the period from:
Amounts included in contract liabilities at the beginning of the period		279,223

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

	September 30, 2023						December 31, 2022
	Current		Long-Term		Total		Current		Long-Term		Total
Extended Warranty:
TASER	$	12,500	$	16,748	$	29,248	$	14,207	$	17,618	$	31,825
Software and Sensors		31,569		18,524		50,093		26,229		15,338		41,567
		44,069		35,272		79,341		40,436		32,956		73,392
Hardware:
TASER		28,908		29,056		57,964		49,361		12,640		62,001
Software and Sensors		77,207		109,573		186,780		50,426		109,227		159,653
		106,115		138,629		244,744		99,787		121,867		221,654
Services:
TASER		11,104		6,549		17,653		7,637		9,501		17,138
Software and Sensors		293,603		89,632		383,235		212,177		83,679		295,856
		304,707		96,181		400,888		219,814		93,180		312,994
Total	$	454,891	$	270,082	$	724,973	$	360,037	$	248,003	$	608,040

	September 30, 2023						December 31, 2022
	Current		Long-Term		Total		Current		Long-Term		Total
TASER	$	52,512	$	52,353	$	104,865	$	71,205	$	39,759	$	110,964
Software and Sensors		402,379		217,729		620,108		288,832		208,244		497,076
Total	$	454,891	$	270,082	$	724,973	$	360,037	$	248,003	$	608,040

Remaining Performance Obligations

As of September 30, 2023, we had approximately $5.8 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 September 30, 2023. We expect to recognize between 15% - 25% of this balance over the next 12 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.