Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Our software, which provides us with strong visibility, recurring revenue, and attractive gross margins, also contributes to the strength of our guide |
| We continue to be incredibly pleased with all segments of our business and continue to see enormous opportunities in front of us |
| They obviously both will be great contributors to our revenue next year, but really all of our segments are performing incredibly well and they'll all contribute really nicely next year |
| And so as we go into next year, that one-time impact comes out and that's where you start to get the commentary about how the TASER gross margins, overall we expect them to improve and they really are improving around our efforts for TASER 10 |
| And so across the board, very bullish on T10 adoption and the rate at which that adoption is occurring |
| We envision a world where violence is just far out thought, but we are constantly trying to find new forms of technology to make this a reality, and we're really proud of the progress we've made over the last year |
| We continue to have a 122% net retention rate and strong customer satisfaction |
| And so very excited about that |
| So we're just incredibly excited about the trajectory and the momentum and the acceleration there |
| So we're really excited about that |
| It excites me that we made huge strides and that our technology is driving better outcomes |
| And so there's an exciting story on multiple fronts there |
| As you can tell, we're all incredibly excited about what we can deliver in 2024 to both our customers and our shareholders |
| Also, while we have fantastic organic growth opportunities, we're very excited to be able to strategically make acquisitions in markets that will continue to support and grow our TAM like we have just done with Fusus |
| When I look at our team, I know we have attracted some of the best and brightest to come and work here |
| We think this is achievable and represents a very healthy, sustainable, and attractive long-term model |
| As you can see from our 2024 guidance, we're pacing to well exceed our revenue target in 2025 and tracking nicely to our adjusted EBITDA margin target |
| So we're super excited about the quarter we had in terms of bookings last quarter, I believe it was a record -- a new record in terms of booking |
| We really do believe the future is bright in enterprise |
| And one thing I would point out is TASER 7 was developed prior to the current regime under Hans Moritz that's leading our whole hardware engineering group and we've seen substantially more rigorous free market validation and as a result with AB4 and the Fleet 3 and so far with TASER 10 we've actually seen more robust field reliability, lower return rates |
| We expect adjusted EBITDA of $410 million to $430 million, which implies an adjusted EBITDA margin of approximately 22%, up another 100 basis points from this year, on moderate gross margin improvement as well as continued SG&A leverage |
| The strong visibility is driven by TASER 10 demand, as well as the continued strengths in our future contracted bookings, which has reached $7.1 billion as of the end of Q4, growing 54% year-over-year |
| This is quite strong guidance for us and is the result of increased visibility for 2024 |
| I do think it helps in terms of us having visibility and giving a strong guide for next year |
| 2023 marked another promising step in that direction |
| We just recorded our fifth consecutive year of greater than 25% revenue growth, and we beat that far by a good amount, coming in at 31% year-over-year |
| This positions the business well to continue growing and scaling |
| While we have leveraged SG&A, we have also continued to invest in expanding our sales and marketing teams to address new markets, improving our internal technology capabilities, and bolstering our financial strengths, including the fact we remediated our material weakness this quarter |
| We think we're hitting a nice balance of investing for the future while also increasing profitability and driving towards operational excellence |
| You've heard today and read in the shareholder letter the significant growth opportunities we see in federal, international, and enterprise, as well as for Axon Air, real-time operations, and new software capabilities to name just a few |
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| But for example, we discovered that Sky-Hero had some challenges in that the bands of energy they were using for RF transmission to get through the walls to be able to fly indoor effectively were outside of the acceptable bands under the FCC here in the United States |
| I think we've bared all the pain of coming to market with enterprise software, especially historically custom enterprise software over the last couple of years |
| However, it's not clear that Scottsdale wants Axon as we're seeing the political environment become more challenging and frankly, anti-development |
| And maybe slower than we would have expected upfront |
| We had a one-time event in TASER in Q4 where we had a bit of a manufacturing issue largely related to a batch in March of last year |
| Highly disruptive technology, that's the beauty of it |
| And so that is impacting our growth margins in this quarter in TASER by about 420 basis points |
| And in Europe, I don't think it's secret, it's been slow |
| And that's what you see, We announced Fairview Health as an early customer there but we're really looking to be able to provide this solution into the retail and the nursing part of the market where they're facing a lot of challenges today around associates and nurses feeling safe in their work environment |
| Near term, there's a couple of different issues that have slowed, that are sort of, I think, were pre-inflection points, shall we say |
| As you can see, we're not slowing down |
| Rick Smith Looks like she might be muted as well |
| When you get it right, it quickly becomes difficult to imagine what things were like beforehand |
| If I take a look at TASER gross margins, looks like you had some stability over the past two quarters |
| But there's just some noise around when the revenue recognition will occur |
| First, with seemingly small things like adding a warning sound to TASER 10 to help communicate to someone on the other end that something unpleasant is impending with the hopes that that person will rethink their decisions and alleviate the need for a use of force action at all |
| All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially |
| Now when we think about indoor drones, Sky-Hero, when we acquired them, so one of the downsides of being a big company is we have lots of lawyers to make sure that we're very compliant and that's obviously a good thing most of the time |
| Perhaps I missed this in the release |
| It's unclear if we will get the approvals we need to execute our project |
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