Axon Enterprise — Nov 7, 2024 release

Excluding the impacts of stock-based compensation expense and intangibles amortization, Axon Cloud & Services adjusted gross margin of 75.2% increased from 73.7% year over year primarily due to a higher software mix revenue relative to professional services. Software-only gross margin continued to exceed our target of 80%. • Sensors & Other revenue growth of 18% year over year was primarily driven by strong demand for Axon Body 4, partially offset by a decrease in Axon Fleet revenue. • Sensors & Other gross margin of 41.4% decreased from 46.0% year over year. Excluding the impact of stock-based compensation and intangibles amortization, Sensors & Other adjusted gross margin of 43.3% decreased from 46.5% year over year due to manufacturing overhead reallocations made in the prior year. TASER THREE MONTHS ENDED CHANGE 30 SEP 2024 30 JUN 2024 30 SEP 2023 QoQ YoY (in thousands) Revenue $ 221,734 $ 196,717 $ 162,570 12.7  % 36.4  % Gross margin 60.8  % 60.4  % 62.5  % 40  bp (170)  bp Adjusted gross margin 63.0  % 62.9  % 62.8  % 10  bp 20  bp • TASER segment revenue growth of 36% year over year was primarily driven by strong demand for TASER 10 devices and associated cartridges and services. • TASER segment gross margin of 60.8% decreased from 62.5% year over year primarily due to increased stock based compensation expense. Excluding the impact of stock-based compensation expense, TASER segment adjusted gross margin of 63.0% increased from 62.8% year over year driven by investments in automation and co