AXON ENTERPRISE, INC. - FORM 8-K - EX-99.2 - EXHIBIT 99.2

file	filename
EX-99.1 - EXHIBIT 99.1 - AXON ENTERPRISE, INC.	aaxnq42017-ex991shareholde.htm
8-K - 8-K - AXON ENTERPRISE, INC.	aaxnq42017-8kshareholderle.htm

Operating Metrics (unaudited)



	2017												2016
	Q4			Q3			Q2			Q1			Q4			Q3			Q2			Q1

Axon & Evidence.com Bookings (millions)	$	71.2		$	78.0		$	81.9		$	60.1		$	72.5		$	57.5		$	72.0		$	52.1
Sequential % Change	-9		%	-5		%	36		%	-17		%	26		%	-20		%	38		%	17		%

Annual Service Revenue (millions)⁽¹⁾	$	70.0		$	63.7		$	54.7		$	46.2		$	40.2		$	32.0		$	21.1		$	18.1

Future Contracted Revenue (millions) ⁽²⁾	$	536.0		$	494.2		$	446.4		$	390.0		$	350.8		$	302.0		$	262.8		$	202.3
Sequential % Change	8		%	11		%	14		%	11		%	16		%	15		%	30		%	27		%

Weapons Op Inc %	32		%	30		%	33		%	35		%	36		%	38		%	33		%	34		%

Evidence.com new seats booked	14,100			18,400			20,600			16,400			21,400			15,600			20,200			15,800

Evidence.com cumulative seats booked	201,500			187,400			169,000			148,400			132,000			110,600			95,000			74,800

⁽¹⁾Monthly recurring license, integration, warranty and storage revenue annualized.
⁽²⁾Cumulative bookings for the Software and Sensors segment minus cumulative recognized revenue related solely to Software and Sensors segment

SG&A Expenses by Segment (unaudited - dollars in thousands)



	Three Months Ended December 31,								Dollar Change			Percent Change
	2017				2016				Dollar Change			Percent Change

TASER Weapons segment:
Salaries, benefits and bonus	$	9,005	22.7	%	$	7,450	24.2	%	$	1,555		20.9	%
Stock-based compensation	1,735		4.4		912		3.0		823			90.2
Professional, consulting and lobbying	4,055		10.2		2,073		6.7		1,982			95.6
Sales and marketing	2,870		7.2		2,178		7.1		692			31.8
Travel and meals	988		2.5		1,216		4.0		(228		)	(18.8	)
Other	4,266		10.8		3,393		11.0		873			25.7
Total TASER Weapons segment	22,919		57.9		17,222		56.0		5,697			33.1
Software and Sensors segment:
Salaries, benefits and bonus	6,238		15.7		5,651		18.4		587			10.4
Stock-based compensation	1,031		2.6		598		1.9		433			72.4
Professional, consulting and lobbying	4,105		10.4		3,587		11.7		518			14.4
Sales and marketing	2,416		6.1		1,702		5.5		714			42.0
Travel and meals	1,321		3.3		1,161		3.8		160			13.8
Other	1,583		4.0		822		2.7		761			92.6
Total Software and Sensors segment	16,694		42.1		13,521		44.0		3,173			23.5
Total sales, general and administrative expenses	$	39,613	100.0	%	$	30,743	100.0	%	$	8,870		28.9

R&D Expenses by Segment (unaudited - dollars in thousands)



	Three Months Ended December 31,								Dollar Change			Percent Change
	2017				2016				Dollar Change			Percent Change

TASER Weapons segment:
Salaries, benefits and bonus	$	1,447	9.2	%	$	881	9.2	%	$	566		64.2	%
Stock-based compensation	124		0.8		211		2.2		(87		)	(41.2	)
Professional and consulting	236		1.5		427		4.4		(191		)	(44.7	)
Travel and meals	63		0.4		119		1.2		(56		)	(47.1	)
Other	576		3.7		476		5.0		100			21.0
Total TASER Weapons segment	2,446		15.5		2,114		22.0		332			15.7
Software and Sensors segment:
Salaries, benefits and bonus	8,434		53.5		4,291		44.6		4,143			96.6
Stock-based compensation	1,158		7.4		811		8.4		347			42.8
Professional and consulting	425		2.7		545		5.7		(120		)	(22.0	)
Travel and meals	355		2.3		145		1.5		210			144.8
Other	2,937		18.6		1,708		17.8		1,229			72.0
Total Software and Sensors segment:	13,309		84.5		7,500		78.0		5,809			77.5
Total research and development expenses	$	15,755	100.0	%	$	9,614	100.0	%	$	6,141		63.9

AXON ENTERPRISE, INC. - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - February 27, 2018