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Revenues | 12 Months Ended
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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, 2024 |  | Year Ended December 31, 2023
| TASER |  | Software and Sensors |  | Total |  | TASER |  | Software and Sensors |  | Total
TASER Devices (Professional) | $ | 453,055 |  | $ | — |  | $ | 453,055 |  | $ | 333,923 |  | $ | — |  | $ | 333,923
Cartridges | 246,766 |  | — |  | 246,766 |  | 193,285 |  | — |  | 193,285
Axon Evidence and Cloud Services | 54,913 |  | 808,256 |  | 863,169 |  | 35,680 |  | 566,003 |  | 601,683
Extended Warranties | 37,515 |  | 66,141 |  | 103,656 |  | 31,689 |  | 55,154 |  | 86,843
Axon Body Cameras and Accessories | — |  | 246,855 |  | 246,855 |  | — |  | 183,023 |  | 183,023
Axon Fleet Systems | — |  | 104,890 |  | 104,890 |  | — |  | 121,842 |  | 121,842
Other (1) (2) | 26,424 |  | 37,711 |  | 64,135 |  | 18,933 |  | 21,167 |  | 40,100
Total | $ | 818,673 |  | $ | 1,263,853 |  | $ | 2,082,526 |  | $ | 613,510 |  | $ | 947,189 |  | $ | 1,560,699
| Year Ended December 31, 2022
| TASER |  | Software and Sensors |  | Total
TASER Devices (Professional) | $ | 282,698 |  | $ | — |  | $ | 282,698
Cartridges | 181,686 |  | — |  | 181,686
Axon Evidence and Cloud Services | 18,182 |  | 367,852 |  | 386,034
Extended Warranties | 29,056 |  | 45,507 |  | 74,563
Axon Body Cameras and Accessories | — |  | 157,281 |  | 157,281
Axon Fleet Systems | — |  | 63,017 |  | 63,017
Other (1) (2) | 19,422 |  | 22,442 |  | 41,864
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,
| 2024 |  | 2023 |  | 2022
United States | $ | 1,775,194 |  | 85 | % |  | $ | 1,335,516 |  | 86 | % |  | $ | 985,183 |  | 83 | %
Other countries | 307,332 |  | 15 |  |  | 225,183 |  | 14 |  |  | 201,960 |  | 17 |
Total | $ | 2,082,526 |  | 100 | % |  | $ | 1,560,699 |  | 100 | % |  | $ | 1,187,143 |  | 100 | %
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,
| 2024 |  | 2023 |  | 2022
Contract assets, net | $ | 487,805 |  | $ | 371,614 |  | $ | 249,001
Contract liabilities (deferred revenue) | 973,640 |  | 741,316 |  | 593,038
Revenue recognized in the period from: |  |  |  |  |
Amounts included in contract liabilities at the beginning of the period | 499,727 |  | 357,979 |  | 258,063
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, 2024 |  | December 31, 2023
| Current |  | Long-Term |  | Total |  | Current |  | Long-Term |  | Total
Warranty: |  |  |  |  |  |  |  |  |  |  |
TASER | $ | 16,107 |  |  | $ | 19,288 |  |  | $ | 35,395 |  |  | $ | 14,666 |  |  | $ | 18,828 |  |  | $ | 33,494 |
Software and Sensors | 36,842 |  |  | 19,706 |  |  | 56,548 |  |  | 22,642 |  |  | 8,165 |  |  | 30,807 |
| 52,949 |  |  | 38,994 |  |  | 91,943 |  |  | 37,308 |  |  | 26,993 |  |  | 64,301 |
Hardware: |  |  |  |  |  |  |  |  |  |  |
TASER | 49,195 |  |  | 35,116 |  |  | 84,311 |  |  | 35,845 |  |  | 29,689 |  |  | 65,534 |
Software and Sensors | 89,992 |  |  | 144,191 |  |  | 234,183 |  |  | 63,299 |  |  | 117,024 |  |  | 180,323 |
| 139,187 |  |  | 179,307 |  |  | 318,494 |  |  | 99,144 |  |  | 146,713 |  |  | 245,857 |
Services: |  |  |  |  |  |  |  |  |  |  |
TASER | 9,635 |  |  | 6,134 |  |  | 15,769 |  |  | 7,832 |  |  | 3,983 |  |  | 11,815 |
Software and Sensors | 411,184 |  |  | 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, 2024 |  | December 31, 2023
| Current |  | Long-Term |  | Total |  | Current |  | Long-Term |  | Total
TASER | $ | 74,937 |  |  | $ | 60,538 |  |  | $ | 135,475 |  |  | $ | 58,343 |  |  | $ | 52,500 |  |  | $ | 110,843 |
Software and Sensors | 538,018 |  |  | 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, 2024 |  | December 31, 2023
Current deferred commissions (1) | $ | 59,025 |  | $ | 46,224
Deferred commissions, net of current portion (2) | 154,894 |  | 119,084
| $ | 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.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
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