Axon Enterprise, Inc.

Hello everyone and welcome to our first quarter 2021 earnings conference webinar. I'm Andrea James, Senior Vice President of Corporate Strategy and Investor Relations. Today we have with us CEO Rick Smith, President Luke Larson, CFO Jawada Son, Chief Revenue Officer Josh Isner, and Chief Product Officer Jeff Cunnins. I hope you've all had a chance to read our very robust shareholder letter, which we released after the market closed. You can find it at investor.axon.com. Our remarks today are meant to build upon the information in that robust letter. At the end of this call, we'll play our quarterly earnings video. That's our first time doing it on the earnings call, and you're welcome to stay for that. If for some reason we lose connectivity, we'll endeavor to post a copy of our prepared remarks to investor.axon.com. 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, now turning it over to Rick.

Thanks, Adrienne. And hello, everyone. As you can see from the shareholder letter, we've had an exceptional start to the year. Our teams have remained heads down, executing on our mission and driving growth across all of our products and markets. I couldn't be more proud of what we've built, of Axon's position as a true change agent, and ultimately, and most exciting, where we're heading. We've always been passionate about innovation and the inherent drive continues to propel our business forward. Today, I'd like to address current events, public and personal, that are relevant to our business. First, recent current events, including last year's death of George Floyd and the events that followed, forced our nation to reflect upon the values we hold true for all Americans. Axon is and will remain committed to creating technologies that save lives, increase transparency, and help communities and public safety agencies who serve them achieve a higher quality of life to ensure everyone makes it home safe. Customers in increasingly communities see us as a key thought leader and key partner in the global drive to transform public safety. We hear stories daily about customers using our products to save lives and protect their communities. And we believe our problem solving approach to these major challenges will continue to drive our growth. Two years ago, when I published my book, The End of Killing, it was a radical idea that we could actually make the bullet obsolete and create less lethal weapons that could become the primary use of force and eventually displaced lethal weapons. Customers were far more receptive to this idea than I could have anticipated. And in light of the events of the past 12 months, We are hearing pleas from our public safety customers and the broader community that they cannot wait until the deadline I had set at the end of this decade for us to achieve the goal of surpassing the sidearm in effectiveness. Our teams are working extremely hard to bring in the dates for the next generation of taser weapons, which I believe will be the largest single leap in capability in the history of less lethal weapons. Customers have even begun signing 10-year programs with us to enable seamless upgrades, and we've worked with them to create programs that will even allow them early upgrades when the next generation launches. Now, to set expectations, the next generation of Taser is a couple years out due to the intense testing a ground-up new design requires, as well as the full production automation and scaling. But I wanted to talk about the issue head on, given the growing intense public interest, and to help our investors understand why you might be seeing this dynamic behind 10-year programs. Second, on a personal note, the passing of my father, Phil Smith, our founding chairman last month, was a monumental loss. He was instrumental in helping to get Taser off the ground in its early days, and our company would not exist without him. His final 24 hours were an amazing capstone to an incredible life. His mission lives on among all of us at Axon, and I will miss calling him after the call today to discuss the results. As we look to the future, Axon can be a huge force for progress to our vision of obsoleting the bullet, reducing social conflict, enabling a fair and effective justice system, and building for racial equity, diversity, and inclusion. Luke and Jawad will now take you through some more highlights of our business.

Thanks, Rick. As stated in our shareholder letter, which we've got a ton of positive feedback on, shout out to our IR team, our teams are executing on our 2021 strategic priorities to grow our core, scale new products, unlock new markets, and drive efficiency to fuel growth. We believe Axon has been at the forefront of change. But the past year, we've been put in the center of truly unprecedented events that inspired our teams to show up in many new ways. Our body cameras are capturing the most critical events in the world. We're proud of that, and it's a responsibility we take very seriously. During the civil unrest in the capital on January 6th, for instance, DC Metropolitan Police and the Montgomery County Police, who are Axon Body customers, were called in for backup, and the Justice Department has released Axon body camera videos related to that incident. Axon body cameras are also providing critical evidence in many of the current events that we're all familiar with. Just last week, NPR published a story about a team of public safety experts and world economists that say body-worn cameras are both beneficial and cost-effective. The University of Chicago Crime Lab and the Council on Criminal Justice Task Force on Policing released the report and stated the key benefit of body-worn cameras is the reduced use of police force. For example, among the police department study, they saw complaints against police dropped 17%, and this is really the compelling statistic, is that use of force by police during fatal and non-fatal encounters fell by nearly 10%. Professor Jens Ludwig, head of the crime lab says, if you're a local government looking at adopting the cost from your narrow green eye shade bottom line, the technology probably pays for itself and the benefits to the public are a huge win and easily outweigh the cost. Our focus as a management team is to invest in growth so that we can continue delivering technologies to protect life and truth. In February, we outlined the capital investments we're making this year. including the TASER manufacturing. We have a great update to share on that front, as you see in our shareholder letter. These investments are growing TASER manufacturing capacity and driving gross margin expansion. This positions us to meet growing TASER demands globally and in our federal sector. So far this year, TASER device manufacturing and supply chain improvements are on track to deliver more than $4 million in gross cost savings in 2021. We are also excited about the momentum that we are seeing in our software and sensor segment. Later this year, we expect to launch our third generation fleet solution. This is our Dashboard CAM solution, which features AI-powered automatic license plate recognition, known in the industry as ALPR. Demand for this premium fleet bundle, which includes ALPR software add-on and the live streaming off of our cameras, is exceeding our expectations by a healthy margin. And you can read more about this in detail in our shareholder letter. We are also seeing growing adoption in the usage of LTE-enabled live streaming off of the body cameras and remote evidence uploads. And in the coming weeks, we expect to transition the Baltimore Police Department to our record solution. And the training and feedback has been going very well. Finally, we're transforming how agencies train their officers by addressing the inefficiencies around the classroom, role-playing, and simulator training. By leveraging VR, we are addressing their two biggest issues, budget and time. In the coming days, we have an exciting product launch that we can't wait to tell you more about. We just did a sneak peek of our big VR announcement yesterday with Taser's Training Advisory Board, and it was very well received. We have a lot to be excited about in 2021 and beyond. Now I'll turn the call over to our Chief Financial Officer, Jalad.

Thanks, Luke. As our teams continue to execute at an extremely high level, we're able to confidently invest in our future. Our strong balance sheet also gives us the flexibility to drive growth broadly across products, markets, and geographies. We've recently made three strategic investments in Flock Safety, RapidSOS, and Celebrate, as well as expanded our strategic partnerships. These were carefully crafted moves that allow us to extend our platform as we aim to build the public safety ecosystem of the future. In Q1, we invested $20 million in RapidSOS and more recently completed a strategic partnership. When people dial 911, lives are literally in the balance when the call center doesn't know where they are. RapidSOS is the leader in solving this problem. For example, if you call 911 today using your iPhone, in the vast majority of U.S. jurisdictions, Apple will send your location to public safety via RapidSOS. Now, the location and live streams of Axon body cameras and Axon fleet cameras can be integrated into the RapidSOS platform, and RapidSOS data can be integrated into our new Axon Respond dispatching platform. Another recent investment in strategic partnership includes a $90 million participation in a pipe transaction in connection with Celebrite going public by a SPAC IPO. Celebrite is the market leader in digital intelligence. Their software complements our lead in digital evidence management, and they share our strong emphasis on safeguards to protect privacy. We are consistently hearing great feedback from our customers in common with Celebrite, and the company has been delivering compelling results. This partnership will make Evidence.com even more valuable for our customers. From an M&A perspective, as you can see, we're taking a deliberate approach to how we partner and deploy our capital. You can expect to see us continue to be opportunistic and make strategic moves that strengthen and extend our platform. To be clear, we will be highly selective. Our continued strong execution allows us to make these types of investments and keep our strategic focus on investing for growth. However, it's really the fact that we always lead with our mission to protect life, truth, and the communities we serve that has us taking a long-term view on our business. As we work towards goals such as obsoleting the bullet, we're measuring our progress over a longer-term horizon. In fact, we'd like to invite you to think about our business the way that we do, in terms of years and not quarters. This is why today we are introducing two-year revenue guidance for both 2021 and 2022. For 2021, we're raising our revenue guidance by $40 million at the midpoint to $800 million. In 2022, our early view of the year anticipates that we will deliver approximately $920 million in revenue. The combination of positive underlying demand trends in our strategic growth and expansion initiatives gives us tremendous confidence in our longer-term outlook. We've been making investments in several new geographies outside of the U.S., and many of these investments are starting to yield results. The nature of the international market is such that deals are often for larger regions or entire nations. The larger and more complex nature of these deals makes their timing difficult to forecast, and thus growth is not as linear as we might expect in the U.S. We therefore expect the phasing of revenue from international deals to contribute to variability in our quarterly revenue, a trend we expect to continue for the foreseeable future. This is why we're anchoring on annual revenue guidance. We don't want the timing of large international deals to signal anything about the underlying growth rate of our business. We are laser focused on building a business that will sustainably grow at a 20% plus CAGR. I want to reiterate that we are committed to continuing to execute and invest with rigor and discipline. As such, and given our strength and outlook for the year, we're raising our adjusted EBITDA guidance for 2021 by $12.5 million at the midpoint. We're also maintaining our long-term target adjusted EBITDA margin of 30% while continuing to invest for growth. I'd like to close by highlighting another aspect of Axon that I'm particularly proud of, how diversified we've become. We sell hardware and software, solutions and services, products and training. We've diversified geographically, as well as to the types of customers we sell to. Revenues from our market-leading taser devices and body cameras remain on a strong growth trajectory, while our ARR has now surpassed $240 million and is expected to grow approximately $15 million per quarter. I've never felt better about how Axon is positioned for growth, and I'm looking forward to seeing how our team continues to deliver. And with that, Andrea, let's move to questions.

Thanks, Jawad and team. Just want to check with our moderators that we can bring everybody up into the gallery view. And give me a nod when we are up in gallery view. Okay, we are up in gallery view. And analysts, we've got you all in our queue, so no need to use the hand raise feature. And just let us know if you have a follow-up. We'll take our first question from Keith Husam at North Coast. Go ahead, Keith.

That's my move, Keith. You're on mute. I got a patent on that.

All right. How are we doing now? All right. Thanks, guys. Congratulations on a great quarter, and I appreciate the guidance going forward. You know, Rick, it looks like now two quarters in a row, you know, fantastic taser sales with growth. Perhaps you can provide a little bit more color on what you think some of the drivers are. You know, how are you guys achieving this taser growth for the past two quarters when, I guess, previous quarters weren't seeing anywhere near that type of growth?

Yeah, I'll touch on it and then Josh, I'll hand off to you. I would say, you know, there's really a shifting focus. Ten years ago, the focus with Taser, there was a lot of focus on sort of the medical safety of the devices. I think we've come out of that to where now there's really an intense focus on effectiveness. And my book where I talked about, I'm very transparent. We are not yet reliable enough to be a substitute for lethal force, but we're heading that direction. We made a big step with taser seven and we'll make an even bigger step on our next launch. And I think, you know, our customers are pretty excited and we're just seeing a lot of, you know, Taser 7 adoption has really kind of picked up. We're also seeing, I think, broader international adoption. There's, we're getting, I see orders coming in our daily reports and I got to go look at the map to see where some of these countries are that a few years ago weren't even on our radar. And now we're getting much broader coverage. And with that, Josh, let me hand over to you.

Yeah, thank you, Rick. Ultimately, I think it's just a continued story of a lot of investments in the channel that we've made over the years are starting to pay off. As Jawad said, we're diversifying state and local law enforcement is, you know, absolutely a big part of that growth story, but so is international, so is federal, so is corrections. And so we've got a lot of talented people doing a lot of great work right now. And, you know, we'll continue to invest in white space in the channel to make sure those Results continue to grow in the out years.

Right. And then just like my follow up, you know, I've got to ask a question about the supply chain issues that's happening really across all technologies these days. I guess we're in your portfolio of products. I guess, do you have any pinch points with supply chain? And are the issues getting worse here as we're going into the second quarter?

Yeah, great question, Keith. I'll field that. Our supply chain and ops team is led by a phenomenal guy named Josh Goldman. And over the last year, we've really put buffers in place to ensure that we can meet the quarterly demand, as well as forecast out critical components. And I've just got to give the team a lot of credit to have navigated the last 12 months. And we're keeping that same strategy looking forward. And as of today, we feel really good about it.

Thanks, Keith. We'll take our next question from Will Power at Baird.

Great. Okay. Thanks for taking the question. Rick, sorry for your loss.

Thanks, Will. On the positive side, I hope to die the way he did. It was actually as positive and uplifting as such a thing could be.

Okay, that's good. Well, congratulations on the results, obviously, you know, really strong across the board, I guess. maybe, you know, broadly, you know, looking at the opportunities in the US and the spending habits. What are you seeing in terms of municipal budgets? Any headwinds on that front? And to what degree are some of the federal aid plans, you know, helping?

Josh? Absolutely. So I think about this time last year, there were a lot of questions about how that would materialize. And we're still very happy to say it really hasn't in a meaningful way. And in fact, a lot of the federal kind of aid packages have provided additional funding to stay local. At first it was, mainly the large cities, but in the latest grant package, it was for small and mid-sized cities as well. So we don't see, you know, any kind of systematic challenges across municipal funding that make it any, you know, more or less worrisome than in the past. You know, we think it's in front of us, and we provide the right products that our customers value. We really believe that they'll be able to find funding to buy them.

Okay, that's great. And if I can sneak in this one, you know, really nice to see some of the early fleet three indicators. I'm wondering if you could just provide any more color as to what's kind of helping set you apart in the market? Any issues potentially on the supply side in terms of meeting that demand? Just any more background there would be great.

I'm sorry, what was it? I couldn't hear. What product were you referring to? Fleet three. Fleet three.

Why don't I take that first stab and then pass it to Jeff. So one thing that I talked about that we're really excited about is just the attach rate to the ALPR. And, you know, this is one where I think the customers are saying, hey, I can go with one solution with Axon and get these two critical benefits. It also is a great, you know, story around how we're able to provide not only the hardware, but also the software and advanced software that the customers are willing to pay for.

Oh, go ahead.

Go ahead, Jeff.

Yeah, just continuing on that, you know, first and foremost on the camera system itself, we're really, you know, proud and looking forward to shipping it for customers. It's, you know, overwhelmingly our best camera system ever for the car. And we've just found those merits alone. That drives a lot of the demand that we're seeing. And then as Luke alluded to, One of the things that, you know, is Axiom's greatest strengths is how we combine these devices with the power of intelligent cloud services. And so both with our respond live streaming connected in, as well as, you know, our new disruptively affordable and ethically designed from the ground up approach to ALTR. really creates for the first time the ability for an agency to afford for the same budgets they're used to spending to put ALPR capability in every single vehicle. And so you put all that together at an attractive overall price. And again, we look forward to shipping it later this year and seeing how customers love it. Great.

Thank you. Yeah, you know, I've got to add one more thing, you know, maybe we're too transparent sometimes, but with fleet one and two, you know, we were scrappy and we had to get to market fast. The hardware was not our strength in those products. And we still got to, I think, you know, the top end of the suppliers in the market. Fleet three, Now we're bringing our A game. This is the first camera where the hardware has been designed from the ground up for this use case. Previously, we did take our body cameras and then refactor them for the car. And we learned a ton by doing that. But I'm really pumped to see what's going to happen because what we're bringing out now has been purpose built over a multi-year period by some really talented and awesome folks. So I'm excited to see how it performs in the market.

Hey.

All right, thanks. Well, we love the families here at Exxon. We'll take our next question from Jonathan Ho at William Blair. Go ahead, Jonathan.

Hi, good afternoon. I wanted to just start out with the two-year guidance. Just given the lumpiness that you're seeing in some of these international deals and the longer sales cycles. I guess, can you talk a little bit about how you're building that long run of a forecast and what maybe gives you the confidence to be able to offer a two-year view this early?

Yeah, I'd like to start with that and would love to hear Josh's input as well. So there are a couple of factors, Jonathan. The first one is, Look, quite frankly, the business is rocking and rolling. We've got, you've heard us allude to it, we've collected a pretty fantastic collection of talent in all of our functions, and they are executing crisply and reliably, and I have a tremendous amount of confidence in them. The pipeline that we've built, I feel like we've got a very high likelihood that we're going to execute on that to such a degree that I feel confident going out two years on our guidance. The second factor is, and we've also alluded to this, is that these international deals, you know, it makes it difficult for us to give quarter-to-quarter guidance. It's better for us to think in terms of years because they're larger, they're more complex, there's so many more factors involved, financial, operational, regulatory, political. And really, we think about the business in terms of years, and what we're working towards is to build a business that will sustainably grow at a 20% plus CAGR year over year.

then lastly i just add you know one of the benefits of really focusing on bookings as a forward-looking indicator of our uh results um you know our bookings continue to grow year in and year out and we saw that last year we're seeing it this year as well and we're very excited about what that means for the future so we certainly do between you know um bringing on more and more enterprise sales talent that gets better and better at forecasting, combining that with having growing bookings year over year gives us a lot of confidence that we're going to keep growing.

Got it, got it. Can you also maybe give us a little bit more color in terms of the traction that you're seeing relative to the RMS and CAD solutions, specifically your software suite, and maybe how that's sort of contributing to net retention and some of the expansionary metrics there as well? Thank you.

Certainly, we're really excited. We're seeing customers that have had a lot of confidence in us historically, willing to partner with us more and more on our newer offerings. When we go into police departments, one of the questions we always ask is, what's the best piece of functioning software you deploy today? And oftentimes we hear it's evidence.com. that inspires a lot of confidence from our customers that the next piece of enterprise software we deliver is going to be equally good or better and so right now we have to be very careful in terms of making sure that we set the right expectations we bring on the right customers for us early on and we make those customers really successful and that's what we're focused on right now and we believe just like we have in every category that we've entered we turn those early you know evangelists into a growing market over the years to come. And we have a lot of confidence we're going to do that in records and dispatch as well. Thank you.

Thanks, Jonathan. We'll take our next question from Jeremy Hamlin at Craig Hallam. Go ahead, Jeremy.

Thanks, and congratulations on the strong results and also pass along my thoughts on your family. I wanted to actually ask about Celebrite and thinking about the investments that you've made in that business. You know, what is the likelihood that with the rapid growth that they're seeing that you're going to have additional investments made in that business, you know, down the road? How much more integrated can you potentially see these businesses becoming?

Yeah, I'll start. So Cellebrite's a company that we've been admiring from afar for some time now. We had a chance to build a relationship with them prior to the SPAC deal coming on our radar. It's someone we really admire, and as we talked about, they're a leader in digital intelligence. We think it's a very natural extension of our lead in digital evidence management. And this is a long-term play. really view our partnership with them as strategically important to Axon. And we'll evaluate the opportunity to invest more or, you know, something beyond that going forward. But at this point, we feel really good about where we're at.

I would just add to that, just as Jawad talked about earlier, you can see that pattern in all of these, you know, very judicious investments we've made so far. So between Block Safety and then Rapid SOS, and then now with Celebrite, you know, all of them are Yes, there are financial investments, but they're very purposefully chosen to be a match for places where customers win as we do interesting things together commercially as well. And the investment, you know, is an accelerant to what we would otherwise want to naturally do as great partners.

Great. And then I also wanted to just ask about your annual recurring revenue. You've had you know, very steady pace on this. It's, you know, it's roughly 20 million a quarter that you're adding on. You know, as the company gets bigger and bigger, what would potentially drive deviation to the upside from that 20 million a quarter? You know, is it just gaining significant traction in RMS? Is that, you know, going to be the big driver? But how do we potentially step up from that level from here?

Yeah, so one of the things that Josh alluded to is for us, the leading indicator is really bookings. And we're right now, just like we've made investments in new international markets, we're also making investments in these new product categories like records and dispatch. And we're in the very early innings. We're building a product that we're very proud of and we think is going to be, you know, a market leader. the leading indicator for us is gonna be bookings. As those bookings come in, we think that'll just continue to add, that'll end up translating into ARR.

So let me- I just wanted to piggyback just real quick, just to make sure your number's on that one. We're very proud of the rate that we're adding ARR, but it's been, the average over the last year has been closer to 15 million a quarter. And that's what Jawad, the number he referenced in his script as well.

Right. Okay. I'll leave it at that, actually. Thanks. Good luck.

Okay, thanks, guys. Okay, we'll take our next question from John Godine at Needham. Go ahead, John.

Hey, guys. Appreciate you taking my questions. Congrats on the nice quarter. I have a question around the VR front. You know, obviously given a lot of the social unrest, you know, how have you seen demand trends, you know, early on for that? And Thinking from a high level, given looking down two or three years, how do you see that product kind of growing and coming to market? And then maybe also where you think that you fit in competitively? Thanks.

Yeah, why don't I start with that and then have Josh follow up. So, you know, the demand that we've seen for VR, I would say, is nearly unprecedented where, you know, customers are coming to us. We're explaining what our existing offering is with community engagement scenarios. Some of the future ideas that that we're developing, and we've seen a really, really healthy pipeline from all size agencies, a lot of geographical distribution. So we feel like this is 1 where there's a lot of demand.

Oh, yeah, I think that's I think that's true. I just want to be clear though. I, you know, I'm very cautious to attribute that to. to really anything except we're addressing a need that has existed for the last 20 years, it'll exist in the next 20 years. And we can't control kind of year to year what the narrative is in the public or what's going on externally. So for us, it's about building products that we think better and make our customers more effective and safer at their jobs, make communities safer. And we think VR is of that category. And You know, we're super excited about this one. We see a lot of demand in the market. We see a lot of alignment with our mission long term. And this is one that, you know, it's a new category that we're really proud to be participating in. And we've got a team that's very focused and excited about scaling it over the next several years.

Thanks, guys.

Are we good, John? Okay. We'll take our next question from Eric Lipinski at Morgan Stanley. Go ahead, Eric.

Thanks. Maybe going back to the Baltimore rollout of records and just wondering as you're working through that, what's the level of customization that a larger police department would be pushing for with that? Is the product modular enough that you can kind of work around what they might want? I guess just wondering how that process goes and and if it has altered the development path in any way from making it more customizable?

Sure, no, great question. Inherently, you know, not only for us, but for everyone playing in any of these, you know, large, you know, complex enterprise software plays inside and outside of public safety, you know, there is – there is that dance. And I think for us, what is clear as we continue to go forward that we're really excited about that we're building the right pieces in the right order as we keep building up the product and winning and working to delight our early customers. And as Josh said earlier today, and as you've heard me say on the last couple of calls, You know, this is a multi-year journey for us, and we are determined in our path to ultimately become number one in these categories, but we also have no illusions. It takes time, and it's one piece of our overall path of our centers in software, you know, contributing more and more to the full portfolio of scenarios that our customers, you know, need to be successful every day. So we feel great about that rollout and about what Baltimore's needs and each of our early customers' needs are, you know, apply to all of the additional customers as we keep going.

And we just got some feedback from the outside that Eric's question and John's were maybe not that well heard. So, John Godine had asked about virtual reality training, and Eric had asked about the level of customization required for Baltimore PD.

If I can ask one more, too, just just on international traction and bookings there, is that primarily Taser right now, or are you also seeing it picking up with the body cam side? I think the last time we've asked on that, it was kind of Taser was really leading some of the international expansion, but wondering if body cam has followed.

And the question is about what products, just real quick, Josh, the question is about what products are driving our international bookings. Thanks, Josh. Go ahead.

yeah sorry about that uh absolutely i think it's a great question uh the good news is uh we're seeing both it depends on the market some markets we lead with taser uh and uh and then we grow those into body cam customers and other markets uh and customers we're leading with body cams and even downs without body cameras which is a growing segment for us in international, where large customers, and we expect to see a couple of these in the next couple quarters, buy software-only packages from us in high volume. So we're particularly excited about that new trend that we're seeing, and so we feel like we're really, really well positioned, just like in the United States, where we started with one product and have diversified and grown, you know, customers into adopting several of our products. We're seeing that same thing starting to happen in international.

Awesome. Thanks.

Thanks, Eric. Do any of our analysts have any follow-up questions? Nope. Okay. Well, thanks, guys, so much for joining us. We're going to have Rick close us out.

Thanks, Andrea. Hey, before you leave, if you have time to stick around, we're going to play our quarterly earnings video. So thanks for joining. We look forward to updating you throughout the year. We'll drop off after this video, and the webcast will be posted to investor.axon.com. Roll the video.

Hey, everyone, welcome back. I am at our Scottsdale headquarters where we just held an onsite clinic administering COVID vaccines to employees, family and friends. Settle in. We have a lot to share with you that investors will definitely want to hear about. To start, we have a new member of the team, but our CFO will introduce her.

Thanks, Angel. What will keep Axon strong as we rapidly scale is cultivating strong teams, which means attracting top talent and investing in their development. I started my career in a finance leadership development program at GE. It was an incredibly valuable experience, and we've created something similar at Axon. I'd like to welcome our first upcoming graduate, Jen Jackson, to share a few words.

Thanks, Jawad. The Finance Development program has given me experience within accounting, financial planning, and investor relations. Now, pause this video and read an important caution about forward-looking statements. Next up, Andrea James, our SVP of Corporate Strategy and Investor Relations.

Welcome, Jen. Axon is a rapid growth company highly focused on our mission of protecting life, and we are expanding in many ways. Remember that vision we set in our last video, where we continue to innovate in public safety and create a world where everyone gets home safe? To build this, it's important that we partner with other ecosystem leaders. Our new strategic partnership with Skydio, for instance, make Skydio drones and autonomy software solutions immediately available to agencies through Axon. This relationship will pave the way for Skydio's offerings to be integrated with Axon's product suite to improve evidence management, real-time situational awareness, and scene reconstruction for agencies. And our recent partnerships and investments in WalkSafety, RapidSOS, and Celebrite have been driven by a focus on strategic product alignment and capital allocation that benefits our company, benefits our shareholders, and importantly, serves customer needs. Tune into our quarterly earnings call to hear more from Jawad about our strategic approach. In the meantime, to double-click on one of these investments, check out what RapidSOS and Axon are building together.

In an emergency, 911 is forced to rely on the limited information that a phone call can provide. 911 telecommunicators do extraordinary work despite that dated information. But in the 21st century, it is time for us to use data to transform emergency communication. RapidSOS partnered with public safety over the last eight years to universally link critical life-saving data from over 350 million connected devices directly into over 4,800 emergency communication centers nationwide.

We're thrilled to be joining forces with RapidSOS. bringing our technologies together into a seamless, interoperable data experience for first responders and ECCs, today across the U.S. and ultimately around the world. 911 telecommunicators using RapidSOS will now have access to real-time situational awareness, from Axon body cameras and other devices in the field. Simultaneously, data from millions of connected devices on the RapidSOS platform will now be seamlessly available to every agency using Axon Respond.

Now to focus on our core. We are constantly innovating on critical solutions. The auto-transcribed digital notepad pilot is live across several agencies. A growing number of users are not only playing back body camera video, but transcribing them into digital evidence as well. We're also growing our international footprint and are seeing results from investments in our international sales channels.

Let's start with Italy. The municipal police departments of the cities of Venice and Udine will equip officers with Taser devices and Axon software licenses, making them the first agencies in Italy to do so. And the local police in Larisana, which is in Riviera Friulana, will be the first city in Italy to adopt our in-car system, Axon Fleet, and our interview solution, La Tisana joins a growing number of Italian agencies adopting our cloud-connected and LTE-enabled Axon Body 3 cameras.

The Government of Ontario is deploying Axon evidence across public safety agencies, making them the first province in Canada to adopt Axon solutions for digital evidence management. We are thrilled to help connect all Ontario justice sector partners and stakeholders. Our solutions will be used by municipal, provincial and First Nations police services, Crown attorneys and corrections personnel.

Thanks, Angel. That is a meaningful development in Ontario because it highlights the growing utility of our cloud software platform. We also just achieved a key milestone in Australia. In February, we successfully completed a cybersecurity review from the Australian government. This requirement from Australian federal and defense customers provided an added level of security and assurances and enabled even broader adoption of our cloud solutions down under.

Now, on to ESG topics. We are committed to philanthropy, community engagement and outreach, and products that serve communities as well as public safety. Virtual reality training adds value to customers and those they protect. We are releasing a community engagement training module every month and have tripled our content library in the past year. We've newly addressed peer intervention and domestic violence as well. Jen, let's tell them about our focus on mental health and public safety.

Axon Aid is our philanthropic arm. It just launched a program that focuses on mental health, which is a growing concern for officers and their families. We are honored that participating law enforcement officers are willing to be vulnerable with us and share their stories in service of helping their colleagues in need.

We know that building trust in institutions and protecting life is top of mind for everyone. Let's hear a bit from our community-facing teams on their work advancing our mission.

We are giving a voice to the community and ensuring they have a seat at the table on critical issues. We formed a community advisory coalition to guide Axon in developing technology with communities in mind that may disproportionately have encounters with police. This coalition is a group of community members and leaders across nonprofit and philanthropic organizations, as well as academics who reflect diverse community concerns. We will be assisting public safety agencies and including diverse community perspectives into their training, helping them build coalitions to hear and address community concerns, and offering data services such as measuring bias in activities such as traffic stops. We are also building racial equity by inviting the coalition to give feedback to the Axon product teams via a racial equity toolkit. Product teams can use the toolkit to engage with the coalition and describe how they consider racial equity in product development. We're driven to create a world where everyone gets home safe and build bridges between public safety agencies and the communities they serve.

We'll keep you posted on the important work by Regina, Erica, and their team. Let's go back to Jawad to close us out.

I'd like to take a moment to thank our shareholders and analysts for voting for us across several categories and recent awards from both Institutional Investor and IR Magazine. We very much value our relationships with you and are appreciative of your continuous support. We have an exciting year ahead and look forward to continuing to deliver on our mission to protect life, truth, and the communities we serve.

Thanks for tuning in. Check out investor.axon.com for our shareholder letter and so much more. See ya.