Axon Enterprise, Inc. Common Stock Goldman Sachs Communacopia + Technology Conference 2026

Thank you for having me. I always like coming here.

Yeah. No, it is a great question. It is really nice to be able to share some of those stats with all of you, because these are businesses that we have been talking about and investing behind in the last couple of years. It is great to actually be able to share some of those growth numbers. I think the really important thing to remember about our products, as we have evolved the product portfolio, is that it really is an ecosystem and everything works together. Everything gets better together. As we look towards the future, we are not prioritizing any one product category over another. We continue to be incredibly pleased with how TASER and body cameras are anchoring the portfolio, but then we have added on counter-drone through our Dedrone products. We have added on 911.

We're adding on these other software pieces, and they all just reinforce each other. As we look at our priorities, it's really just to make these products continue to get better, continue to solve problems for our customers, fill in gaps in their ecosystem where we see them, continue to evolve our AI products, because we're only at the very beginning of what AI can do. That's a big area of investment for us. But what we do is we tell you about things well before they actually become meaningful to our P&L. The things that we talk about are things that are the drivers for the next couple of years. Then we start telling you when they become meaningful to our P&L, like some of these software products. But that's the goal is just keep evolving that ecosystem.

Yeah. So we gave the new five-year normalized because we were getting a lot of questions about what role duration of our contracts was playing in bookings. How much of our bookings growth was because we were getting really long-term contracts? We wanted to provide this metric as a way to help all of you look at our five-year normalized bookings. What that really means is that when we look at five-year deals, we take out any of the years that are six and beyond. So you're really just getting a number for five years. Now, if we do a deal that is shorter than five years, we don't gross it up. This is the total bookings that will happen in the next five years.

We thought that would be a helpful metric, both to get to the duration piece, but also as we go forward to help give some comparisons for as we grow our enterprise business. Not all of those deals are going to be five-year deals. Some of our international deals aren't five years. So give everyone a way to look at it. We did it in a quarter where, or a year where it shouldn't make a particularly large difference. We're not expecting there to be a dramatic difference as we look at the year between our normalized bookings and our gross bookings. You could see normalized being higher sometimes. You could see gross being higher sometimes. In Q2, normalized was higher. Gross was lower at 20%. Gross was also comping a 50% growth in bookings from the prior year, so you have to balance some of those things out.

As we look at the year, we really look at both gross and normalized bookings, but we do look a lot at normalized bookings, and we look at our future contracted bookings. We had given the color that we expected our normalized bookings to grow 30%+. We expect our future contracted bookings to grow well above that. You can back into what that means for gross bookings, but it shouldn't have a material difference for the year between gross and normalized.

I think depending on the department, we're somewhere between 1%-5% of the police budget today. So pick 3% in the middle if you want. I think at some of our largest customers who are buying everything, you get up to that 5%. And those aren't necessarily our numbers. One of the great things about our customers is they publish a lot of this information, so you can go find customers who lay out their budgets and how much Axon is a part of that. So not a huge part of their budget today. Lots of room to continue growing inside of the budget. Police budgets have continued to grow, but we have grown much faster than that, and that is really because we're increasing our share of wallet.

We increase our share of wallet by coming up with products that solve real problems for our customers that they need, that they want to use. Depending on the product, some of them are really mission critical, some of them are life-saving, some of them are about transparency, and as we look at AI, some of them are even more about ROI and actually generating efficiency for the department. So there's different reasons that we're able to do that across our products. But I think we estimate we're about 15% penetrated in our state and local TAM today. And then our overall TAM is about $159 billion-$160 billion from a TAM standpoint. Lots of detail that we can get into all of you on how we get to that TAM. We try to be pretty conservative.

We try to really have it look at only products that we sell today in countries or markets that we can actually apply it. I know there's lots of ways to do TAM. We try and be pretty conservative and think that it just shows that there's a huge opportunity in front of us.