Revenues

3 Months Ended

Mar. 31, 2024

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 March 31, 2024						Three Months Ended March 31, 2023
			Software and						Software and
	TASER		Sensors		Total		TASER		Sensors		Total
TASER Devices (Professional)	$	98,676		—	$	98,676	$	67,472	$	—	$	67,472
Cartridges		56,198		—		56,198		46,800		—		46,800
Axon Evidence and Cloud Services		12,221		175,458		187,679		7,201		118,314		125,515
Extended Warranties		8,526		18,474		27,000		7,670		14,085		21,755
Axon Body Cameras and Accessories		—		51,205		51,205		—		38,797		38,797
Axon Fleet Systems		—		28,387		28,387		—		32,972		32,972
Other (1) (2)		3,127		8,464		11,591		5,139		4,593		9,732
Total	$	178,748	$	281,988	$	460,736	$	134,282	$	208,761	$	343,043

(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, Axon Air and other sensors and equipment.

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

	Three Months Ended March 31,
	2024				2023
United States	$	392,406	85	%	$	290,938	85	%
Other countries		68,330	15			52,105	15
Total	$	460,736	100	%	$	343,043	100	%

Contract Balances

The following table presents our contract assets, contract liabilities and certain information related to these balances as of and for the three months ended March 31, 2024 (in thousands):

	March 31, 2024
Contract assets, net	$	354,381
Contract liabilities (deferred revenue)		810,282
Revenue recognized in the period from:
Amounts included in contract liabilities at the beginning of the period		186,485

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

	March 31, 2024						December 31, 2023
	Current		Long-Term		Total		Current		Long-Term		Total
Extended Warranty:
TASER	$	14,877	$	18,802	$	33,679	$	14,773	$	18,828	$	33,601
Software and Sensors		34,396		15,980		50,376		33,940		16,036		49,976
		49,273		34,782		84,055		48,713		34,864		83,577
Hardware:
TASER		54,368		33,613		87,981		42,464		29,689		72,153
Software and Sensors		61,353		117,808		179,161		62,635		117,024		179,659
		115,721		151,421		267,142		105,099		146,713		251,812
Services:
TASER		11,808		2,183		13,991		7,939		3,983		11,922
Software and Sensors		339,602		105,492		445,094		329,940		96,292		426,232
		351,410		107,675		459,085		337,879		100,275		438,154
Total	$	516,404	$	293,878	$	810,282	$	491,691	$	281,852	$	773,543

	March 31, 2024						December 31, 2023
	Current		Long-Term		Total		Current		Long-Term		Total
TASER	$	81,053	$	54,598	$	135,651	$	65,176	$	52,500	$	117,676
Software and Sensors		435,351		239,280		674,631		426,515		229,352		655,867
Total	$	516,404	$	293,878	$	810,282	$	491,691	$	281,852	$	773,543

Remaining Performance Obligations

As of March 31, 2024, we had approximately $7.0 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 March 31, 2024. We currently 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.