| Axon Q2 2019: Record bookings of $142 million, up 60% on new product strength, adoption of Officer Safety Plan 7|
SCOTTSDALE, Ariz., Aug. 8, 2019 /PRNewswire/ -- Axon ( AAXN), the global leader in connected public safety technologies, today released the following quarterly update letter to shareholders.
In Q2, we delivered excellent progress on our long-term strategic goals while also working through some operational challenges in our TASER segment that resulted in revenue and EBITDA below our expectations.
Unexpected short-term pressure on the TASER segment at quarter-end was tied to an inventory shortfall relating to a battery component supplier issue, as well as engineering actions we took to improve the long-term cost structure of our TASER 7 cartridges. We discuss these below in more detail.
Key highlights since our last update include:
- Our three largest deals feature monthly software ARPUs at more than double historic levels on our new Officer Safety Plan 7+ (OSP 7+), which is clearly resonating with customers.
- Axon Records passed acceptance testing with two major city law enforcement agencies, which is a critical milestone where the agency verifies that Axon Records is functional and meets the agency's needs.
- Future contracted revenue surpassed $1 billion for the first time.
- Axon Cloud revenue grew 41% annually and 15% sequentially; and annual recurring revenue grew 40% annually to $129 million.
- Bookings in our Software & Sensors segment set a new record at $142 million, up 60% over last year and 86% sequentially. Bookings were driven by strong customer reception for the Officer Safety Plan (both OSP 7 and OSP 7+), our new bundle composed of the TASER 7 platform, Axon Body 3, and several software features including digital evidence management and Axon Records, at a price of $149 to $199 per officer per month over 60 months. We are thrilled to welcome Atlanta, Minneapolis and Baltimore City police departments onto OSP 7+, and are in the process of signing several more major agencies.
- Software and Sensors segment gross profit grew 45% year over year, aided by steady user additions and sound execution, allowing our body-worn camera and digital evidence management business to become self-supporting.