Axon Enterprise, Inc.

Thanks for tuning in. Check out investor.axon.com for our shareholder letter, financial outlook, and more. See you in November.

All right. Great job on the video, Andrea. And folks, I'm giving poor Andrea a heart attack today. I was supposed to be safely in my home office connected to the internet, but I've been out all day with much of the summer doing customer demos. I'm in the Fleet 3 demo vehicle, and we had a bunch of great meetings today. In fact, we're going to do this live without a net. I am going to do a quick screen share and show you what we're seeing live from the fleet vehicle here. Hold on a second. All right. So as you can see there, hey, Garrett, wave in the back seat. We have our prisoner transport area. That's Garrett Langley, the CEO of Flock Safety, an incredible person. part of ours they do fail their cameras and with none of their customers telling us today about a number of crimes they've already solved thanks to the flat cameras and then we do the mobile so it's a great example it's been a great investment for us and uh really brings a powerful capability through partnership you'll see in the upper left is our wide angle uh camera and then on the right is our high resolution 4k camera that we use for the license plate reading. It gives us great resolution at closing speeds of up to 140 miles an hour. It's got our product manager here as well. I'll show you, here's an example of a plate read. This is from just a sample list we use, not from criminal data. So this is just a sample we did earlier today. You'll see this will pop an alert. The officer can then check and make sure that it's got it correct. They can go in and they can do things like categorize their existing videos, whether it's the in-car, body cameras, et cetera. It's a really intuitive, simple user interface, and we're getting fantastic customer reviews. All right, so with that, you know, I have been traveling a lot, seeing our customers again, which has been great. We've also been encouraged to see this summer that the national conversation around policing is evolving to reflect what we've known all along, and that is that police reform and progress requires investment and focused attention from our best and brightest minds. We're obviously pumped about our quarterly performance and I couldn't be prouder of how our team is executing and it's translating into growth that we've sustained now over the last few years and we intend to keep doing it. I'm also proud of our product development team. They have been working really hard as we've invested to build these transformative capabilities. In the fleet three, which I'm just demoed right here, we're able to bring artificial intelligence to bring ALPR to every car. Within 90 days of launch, We've already begun deploying 550 vehicles at Pinellas County. And to my awareness, as far as I know, that's the largest LPR in the country. And it's happening literally within weeks of our product launch. And we're already in late-stage negotiations with another major city to deploy over 1,500 license plate readers, more than doubling what we're doing right now at Pinellas. So you all know, you know, you shouldn't text and drive us. are doing this all the time. They're typing in license plates while they're driving or they've got to read it in over the radio. Fleet 3 does that for them at a dramatically lower price point, allowing them to deploy this to every car, making driving safer and reducing crime. We've already had customers just in the first few weeks catching serious offenders and finding missing children. On another front, our Axon Evidence software continues to grow well beyond simply being the back end for our cameras. We won a highly competitive digital evidence program in EMEA with an EMEA government. encompassing the management of all digital events independent of body camera programs. And this builds on similar success we've had in Canada and paves the way for us to continue to lead with our software solutions. We feel really well positioned for the back half of the year and beyond as we see traction beyond core U.S. municipal law enforcement moving into counties and state patrols and federal government and private enterprises. International revenue grew 60% in Q2 and international bookings, which are our forward-looking indicator, nearly tripled. So in my part at Axon, we're excited. We're leading the way in creating a work environment where employees can maximize their happiness and productivity. We offer remote hybrid options. You can work from the office. You can work from your home. You can work from your car. I'm showing you today, even on the earnings call. So we're focused on doing whatever it takes to get the best top tier talent, keep them focused, keep them rested, keep them happy, keep them energized, keep them creative. And that's how you get great products and breakout capabilities. So our leadership is now supported by an exceptional workforce that is almost 2,000 people, and that's what is going to help drive us to long-term profitable growth is continue to build and maintain and groom a fantastic team. And with that, let me turn over to the president of the company, Luke Larson.

Thanks, Rick. The business is firing on all cylinders, and we are focused on sustaining momentum. Operationally, we're doing really well, even in the face of global supply chain risk. The reality of the current macro situation is well documented. From geopolitical factors to semiconductor and resin shortages to logistics and port stoppages to the continued impact of COVID, there's never been a more complex time to make electronics. We have risen to the challenge, and we monitor conditions daily and have put risk mitigation strategies in place that are supporting a rapid growth. While these headwinds persist, our teams are definitely navigating and effectively positioning the business to continue to meet our increasing demand pipeline. In fact, our teams are delivering Olympic-level execution on behalf of all of our stakeholders, most notably our customers and our shareholders. Another area where you will see this is our taser segment gross margins, which are up 500 basis points over last year. As we sell into strong demand, we have engineered costs out of our bill of materials, and the effects of that continued into this quarter. As you saw in our video and read in our letter, we are ecstatic about the Fleet 3 launch and that it's shipping, and we're getting ecstatic reviews from our early customers, as Rick mentioned earlier. And we believe we're just getting started with virtual reality training, with bookings nearing $8 million in the first six months, up less than a million in the first six months of last year. You've heard me talk about virtual reality on the last several earnings calls, and we're pleased of the demand that we're seeing, and that validates our excitement. We're looking forward to a strong back half of the year and continued momentum into 2022. And with that, let me turn it over to our Chief Financial Officer, Jawad Ahsan.