v3.25.1
Revenues
 12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
Nature of Products and Services
The following table presents our revenues by primary product and service offering and reportable segment (in thousands):
Year Ended December 31, 2024Year Ended December 31, 2023
TASERSoftware and
Sensors		TotalTASERSoftware and
Sensors		Total
TASER Devices (Professional)$453,055$—$453,055$333,923$—$333,923
Cartridges246,766—246,766193,285—193,285
Axon Evidence and Cloud Services54,913808,256863,16935,680566,003601,683
Extended Warranties37,51566,141103,65631,68955,15486,843
Axon Body Cameras and Accessories—246,855246,855—183,023183,023
Axon Fleet Systems—104,890104,890—121,842121,842
Other (1) (2)
26,42437,71164,13518,93321,16740,100
Total$818,673$1,263,853$2,082,526$613,510$947,189$1,560,699
Year Ended December 31, 2022
TASERSoftware and
Sensors		Total
TASER Devices (Professional)$282,698$—$282,698
Cartridges181,686—181,686
Axon Evidence and Cloud Services18,182367,852386,034
Extended Warranties29,05645,50774,563
Axon Body Cameras and Accessories—157,281157,281
Axon Fleet Systems—63,01763,017
Other (1) (2)
19,42222,44241,864
Total$531,044$656,099$1,187,143
(1)TASER segment “Other” includes smaller categories, such as 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, partners' contra-revenue and other sensors and equipment.
The following table presents our revenues disaggregated by geography (in thousands):
Year Ended December 31,
202420232022
United States$1,775,19485 %$1,335,51686 %$985,18383 %
Other countries307,33215 225,18314 201,96017 
Total$2,082,526100 %$1,560,699100 %$1,187,143100 %
Contract Balances
The following table presents our contract assets, contract liabilities and certain information related to these balances as of and for the year ended December 31, 2024 (in thousands):
Year Ended December 31,
202420232022
Contract assets, net$487,805$371,614$249,001
Contract liabilities (deferred revenue)973,640741,316593,038
Revenue recognized in the period from:   
Amounts included in contract liabilities at the beginning of the period499,727357,979258,063
During the year ended December 31, 2024, our contract assets balance increased by $116.2 million, or 31.3%, due to increased sales under subscription plans. Contract liabilities increased $232.3 million, or 31.3%, for the year ended December 31, 2024 due to acquisitions and increased subscription invoicing for Software and Sensors hardware and services in advance of fulfilling performance obligations to customers.
Contract liabilities (deferred revenue) consisted of the following (in thousands):
December 31, 2024December 31, 2023
CurrentLong-TermTotalCurrentLong-TermTotal
Warranty:      
TASER$16,107 $19,288 $35,395 $14,666 $18,828 $33,494 
Software and Sensors36,842 19,706 56,548 22,642 8,165 30,807 
52,949 38,994 91,943 37,308 26,993 64,301 
Hardware:      
TASER49,195 35,116 84,311 35,845 29,689 65,534 
Software and Sensors89,992 144,191 234,183 63,299 117,024 180,323 
139,187 179,307 318,494 99,144 146,713 245,857 
Services:      
TASER9,635 6,134 15,769 7,832 3,983 11,815 
Software and Sensors411,184 136,250 547,434 326,131 93,212 419,343 
420,819 142,384 563,203 333,963 97,195 431,158 
Total$612,955 $360,685 $973,640 $470,415 $270,901 $741,316 
December 31, 2024December 31, 2023
CurrentLong-TermTotalCurrentLong-TermTotal
TASER$74,937 $60,538 $135,475 $58,343 $52,500 $110,843 
Software and Sensors538,018 300,147 838,165 412,072 218,401 630,473 
Total$612,955 $360,685 $973,640 $470,415 $270,901 $741,316 
Remaining Performance Obligations
As of December 31, 2024, we had approximately $7.9 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 ASC 606 as of December 31, 2024. We currently expect to recognize between approximately 20% - 25% of this balance over the next 12 months, and 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.
Costs to Obtain a Contract
We recognize an asset for the incremental costs of obtaining a contract with a customer, which consist primarily of sales commissions. As of December 31, 2024, our assets for costs to obtain contracts were as follows (in thousands):
December 31, 2024December 31, 2023
Current deferred commissions (1)
$59,025$46,224
Deferred commissions, net of current portion (2)
154,894119,084
$213,919$165,308
(1)Current deferred commissions are included within prepaid expenses and other current assets on the consolidated balance sheets.
(2)Deferred commissions, net of current portion, are included in other long-term assets on the consolidated balance sheets.
During the years ended December 31, 2024, 2023 and 2022, we recognized $50.8 million, $34.1 million, and $24.4 million, respectively, of amortization related to deferred commissions. These costs are recorded within SG&A expenses in the consolidated statements of operations and comprehensive income (loss).
Significant Judgments
Our contracts with certain municipal government customers may be subject to budget appropriation, other contract cancellation clauses or optional renewal periods. In contracts where the customer’s performance is subject to budget appropriation clauses, we generally consider the likelihood of non-appropriation to be remote when determining the contract term and transaction price. Contracts with other cancellation provisions or optional periods may require judgment in determining the contract term, including the existence of substantive termination penalties, determining transaction price and identifying the performance obligations.
At times, customers may request changes that either amend, replace or cancel existing contracts. Judgment is required to determine whether the specific facts and circumstances within the contracts require the changes to be accounted for as a separate contract or as a modification. Generally, contract modifications containing additional goods and services that are determined to be distinct and sold at their SSP are accounted for as a separate contract. For contract modifications where both criteria are not met, the original contract is updated and the required adjustments to revenue and contract assets, liabilities and other accounts are made accordingly.
Our contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately rather than together may require significant judgment. We consider CED devices and related accessories, as well as Axon cameras and related accessories, to be separately identifiable from each other as well as from extended warranties on these products and the SaaS subscriptions to Axon Evidence and other cloud services.
In contracts where there are timing differences between when we transfer a promised good or service to the customer and when the customer pays for that good or service, we assess whether there is any implied financing within the transaction, and if so, recognize related interest income, or expense, on the transaction. The amount of imputed interest is immaterial for the years ended December 31, 2024, 2023 and 2022.
Judgment is required to determine the SSP for each distinct performance obligation. We analyze stand-alone sales of our products and services as a basis for estimating the SSP of our products and services and then use that SSP as the basis for allocating the transaction price when our products and services are sold together in a contract with multiple performance obligations. In instances where the SSP is not directly observable, such as when we do not sell the product or service separately, we determine the SSP using information that may include cost plus margin, market comparisons and other observable inputs.