Axon Enterprise, Inc.

and it's a particularly crowded earnings day, particularly with the election being on Tuesday. So thank you so much for joining us today. Today we have available Axon CEO Rick Smith, President Luke Larson, CFO Jawad Ahsan, Chief Revenue Officer Josh Isner, Chief Product Officer Jeff Cunnins, and we have a special guest today, our VP and GM of the federal business, Richard Coleman. First we're going to give prepared remarks, and then we'll bring our analysts up onto gallery view for questions. I hope you've all had a chance to read our shareholder letter. We posted it to investor.axon.com, and the remarks that we make today are meant to build upon the information in that robust letter. If for some reason we lose access to Zoom or Internet connectivity, we'll make every effort to post our prepared remarks to investor.axon.com so you can read them. During this call, we will discuss our business outlook and make forward-looking statements. Any forward-looking statements made today are pursuant to and within the meaning of the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These comments are based on our predictions and expectations as of today. They are not guarantees of future performance. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. These risks are discussed in our SEC filings. Okay, let's turn it over to Rick.

Thanks, Andrea. Hey, I know everybody's really busy with earnings season, and you may have a lot of calls to go through. So I thought about how can I best encapsulate the quarter. Out of 1,000 people busting themselves, working so hard in the hardest environment I've ever seen. And, man, that team, they deserve that. We spiked the ball. I couldn't be more proud of what our team turned in. Now, with that, I also know some of you are working from home. We've had the pleasure of meeting some of your kids. We want this to be the conference call that your kids want to come join. So at the end, have them join you when you ask questions, and we'll send them some accent swag for warming up our call. Speaking of which, come here, Kylie. I've got my daughter, Kylie, who's learning about business. Say hi to everybody. So Kylie's going to be attending as well and give me pointers from the side as we go over our results. So, thanks, Kylie. At the end, we're also going to have a little bit of background bingo. You guys enjoyed it last time, so today we're going to play a little game, but we know you're busy, so let's get started. Just hang out for the end and have your kids join us. I could not be more proud of what has happened at this company, how we've transformed and scaled in recent years. An idea that really started from a tragedy 27 years ago has had us put together a platform and solutions that are at the center of today's national conversation around justice, equality, and social reform. Our mission has been clear from day one. It's a privilege to be solving essential problems for our customers and for our communities. We see our customers out there working hard to keep communities safe, and we thank you. We thank them for their dedication. Communities are increasingly demanding not just body cameras, but also taser devices that they see more and more often that police need options to reduce incidents escalating to lethal force. On the heels of the extensive civil unrest we've seen over the past several months, Axon established a fourth company mission, a pillar which I talked about last quarter, centering on racial equity, diversity, and inclusion. Our teams were greatly inspired by this new mission and joined forces to develop a new company-wide initiative, Sprint for Justice, led by Jeff Cummings, our CTO. Our entire engineering team came together, and in one enormously successful and productive two-week sprint, they created and shipped eight new capabilities in support of Axon's new goal. We have commonly highlighted these in a graphic within our Q3 shareholder letter, and you can link from the front page of our website. Another big call out this quarter, significant traction in federal, where bookings are up 400% compared to last year. We're establishing a strong foothold in the early innings here with big wins across new customers and programs. We've been making strategic investments into the U.S. federal market, and we view this early success as a game changer. And with that, I'd like to introduce you, to the game-changing person who's behind us, and that is Richard Coleman, our vice president and general manager of federal programs. Richard came to us from General Dynamics, where he started out as a solutions architect for Department of Defense geosynchronous satellite programs. He progressed to capture management, where he won multiple $100 million and billion-dollar programs. We certainly hope he'll be doing that with us here. And he finally finished his General Dynamics 18-year career as a vice president and GM for law enforcement systems. Richard?

All right. Thanks, Rick. Really appreciate it. Now, I am thrilled to join you all for today's call. This quarter will mark my second year here at Axon, and I've never been more bullish on the opportunity we have in front of us in the federal market. Q3 2020 marks a historic moment for Axon Federal. as we've achieved a record $38 million in bookings, up 400% year over year. Our success includes a number of new programs and contracts, many of which were first for Axiom. I'll walk through five of these quickly to provide some color, but these are also in the shareholder letter as well. First, We established our first two programs of record with the federal government, including a $13 million U.S. Customs and Border Protection order for body cameras and digital evidence management. This is significant because Customs and Border Protection is the largest law enforcement agency within the U.S. And if you're not familiar with the program of record, it's a key milestone that specifies an appropriations line in the U.S. discretionary budget. Second, we sign our first indefinite delivery, indefinite quantity, or IDIQ contract with a federal agency directly. To be successful in the federal market, in federal space, it's essential to establish contacts and contracts to get your solutions funded. And an IDIQ is a contract vehicle that does just that for us. Additionally, it gives the agency an established way to procure our solution through an established vehicle. Third, we signed our first officer safety plan for the federal agency. A lot of you are familiar with our OSP plans. It's a bundle that includes TASER 7, Axon Body 3, and all the software that goes along with it. And we're excited to take this popular bundle and introduce it to the federal law enforcement market as well. Fourth, we sold body cameras and cloud-based digital evidence management to the first Department of Defense customers. And we think there's much, much more opportunity to unlock in the DOD, starting with the military police and security forces across the department. And lastly, we signed our largest TASER contract in company history. It's valued at $15.5 million with the Department of Homeland Security. Now, with all that said, all these achievements, there's one thing that really excites me most about federal, and it's that Axon is already an established tech company. known for its innovation. And we can leverage our innovation, our tech pedigree, along with our top-notch products to fill real federal requirements immediately to fill them today in the federal market. And we can do this while still innovating like the tech company we are. And we can drive the industry as well as the federal market forward. Again, I really want to thank you all for the time today on today's call. I'm both humbled and honored to have the opportunity to lead AdSense Federal into the federal market. And in doing so, protecting lines, capturing truth, and accelerating justice for the federal defense and civilian agencies and all the communities they serve. So with that, that's Rick.