Segment Data

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Segment Data

Note 15 - 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 September 30, 2021						Three Months Ended September 30, 2020
			Software and						Software and
	TASER		Sensors		Total		TASER		Sensors		Total
Net sales from products	$	118,569	$	47,234	$	165,803	$	83,517	$	36,574	$	120,091
Net sales from services		2,922		63,264		66,186		889		45,462		46,351
Net sales		121,491		110,498		231,989		84,406		82,036		166,442
Cost of product sales		41,554		29,782		71,336		31,297		26,501		57,798
Cost of service sales		—		16,086		16,086		—		10,404		10,404
Cost of sales		41,554		45,868		87,422		31,297		36,905		68,202
Gross margin	$	79,937	$	64,630	$	144,567	$	53,109	$	45,131	$	98,240
Research and development	$	10,476	$	31,906	$	42,382	$	3,355	$	25,891	$	29,246

	Nine Months Ended September 30, 2021						Nine Months Ended September 30, 2020
			Software and						Software and
	TASER		Sensors		Total		TASER		Sensors		Total
Net sales from products	$	326,508		136,608	$	463,116	$	228,569		97,565	$	326,134
Net sales from services		6,510		176,177		182,687		2,222		126,507		128,729
Net sales		333,018		312,785		645,803		230,791		224,072		454,863
Cost of product sales		112,200		83,053		195,253		88,787		61,720		150,507
Cost of service sales		145		44,556		44,701		—		29,331		29,331
Cost of sales		112,345		127,609		239,954		88,787		91,051		179,838
Gross margin	$	220,673	$	185,176	$	405,849	$	142,004	$	133,021	$	275,025
Research and development	$	32,032	$	111,320	$	143,352	$	10,149	$	75,038	$	85,187