Axon Enterprise (AXON) TD Cowen’s 53rd Annual Technology Conference summary

Business performance and growth drivers

• Strong start to the year driven by new product launches and improved sales team performance.

• Larger deals are being closed, with new products increasing average deal size.

• Enterprise segment saw record-breaking deals, notably with a major logistics provider using Fusus technology.

• Retail pipeline is expanding, with trials among the largest U.S. retailers and a focus on building tailored software ecosystems.

• International markets, especially Europe, are gaining traction due to team investments and growing cloud adoption.

Product innovation and adoption

• Fusus integrates existing CCTV systems for real-time monitoring, enabling large-scale security operations.

• Dedrone acquisition positions the company as a leader in drone defense, with technology deployed in high-profile scenarios.

• Skydio partnership capitalizes on U.S. bans of Chinese drones, making Skydio the leading supplier for public safety.

• Drones as first responders are rapidly scaling, now in over 1,000 accounts, with significant operational impact.

• Taser 10 adoption is outpacing previous models, offering higher success rates and extended range, but supply is constrained.

Market opportunities and customer expansion

• Large international police forces present opportunities much greater than U.S. city departments.

• Initial sales to new markets focus on core products, with expansion into AI and advanced tech over time.

• Upgrades from basic to premium software plans are driven by customer realization of additional needs after initial use.

• AI tools like Draft One significantly reduce administrative workload, freeing up officer capacity.

• Focus remains on the top 1,200 U.S. police agencies, which represent 70% of users.