INVEST INVESTOR OR PRESEN PRESENTATION TION | A X O N E N T E - PowerPoint PPT Presentation

INVEST INVESTOR OR PRESEN PRESENTATION TION | A X O N E N T E R P R I S E | A u g u s t 2 0 1 9

Statements made during today’s presentation will include forward -looking statements, including statements regarding our expectations, beliefs, intentions or strategies regarding the future, including statements around projected spending. We intend that such forward-looking statements be subject to the safe-harbor provided by the Private Securities Litigation Reform Act of 1995. The forward-looking information is based upon current information and expectations regarding Axon Enterprise, Inc. These estimates and statements speak only as of the date on which they are made, are not guarantees of future performance, and involve certain risks, uncertainties and assumptions that are difficult to predict. All forward- looking statements that are made on today’s call are subject to risks and uncertainties that could cause our actual results to differ materially. These risks are discussed in greater detail in our Annual Reports on Form 10-K and Quarterly Reports on Form 10- Q under the caption “Risk Factors.” You may find these filings, as well as our other SEC filings, on our website at www.axon.com or at www.sec.gov. 2

THE THE AX AXON GR ON GROWTH WTH ST STOR ORY 3

AX AXON ON IS SOL IS SOLVI VING NG REALL REALLY Y BI BIG P G PROB OBLEMS LEMS On-officer body cameras & TASER connected-devices . . . . . . backed by SaaS: Evidence.com

OUR MISSION LIVES SAVED FROM DEATH OR SERIOUS INJURY 1 COMPLAINTS 2 USE OF FORCE 2 GUILTY PLEAS 3 OFFICER COURT TIME REDUCED 4

Revenue ($ millions) $420 $344 $92 $58 $268 $75 $51 $30 $36 $253 $235 $203 2016 2017 2018 TASER Sensors & Other Axon Cloud

UNPARALLELED TALENT IN OUR INDUSTRY

supported by 9

• Axon has direct relationships with most US agencies • 17,000 out of 18,000 US police agencies procure TASER devices - The top 1,200 agencies house ~65% of sworn officers • Patrol officers have a connection to Axon’s product and brand - The TASER device revolutionized policing Expand Axon body camera and Evidence.commarket share and increase average revenue per user ("ARPU"): - About ~660,000 officers are on patrol - We estimate ~70% of US patrol officers carry a TASER device 10

• Axon leveraged its deep agency relationships and TASER’s strength to establish the market lead in body cameras & software • We invested in software early on and developed a highly scalable solution • Axon hosts petabytes of public safety video data in our secure cloud - Customers authorize Axon to use their data to train AI models Expand Axon body camera and Evidence.commarket share and increase average revenue per user ("ARPU"): - US: Strong foothold established - Building large international footholds - The London Metropolitan Police Service: One of the largest municipal police forces in the world, joined the Axon network in 2015 - Swedish Police Authority: First European nationalized police force joined the Axon network in 2019 11

US Major City Chiefs Agencies by vendor

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TASER Sensors and digital evidence management Records management systems (2H 2019) Computer-aided dispatch software (mid-2020) 14

Axon’s dispatch Citizen- captured 911 Call & Officer Officer Write & file evidence Dispatch on scene leaves incident report Justice system More efficient Shorten Time Axon software A TASER device Axon body cameras Incident data, and Axon Records will makes it easy may or may not solution will enable and Fleet cameras post-arrest interview incorporate video to capture be deployed an officer to arrive capture video video, are used & into the incident digital when responding on scene knowing evidence, which is viewed by prosecutors, log and use AI to evidence, to an incident. If the most relevant safely stored in defense attorneys, save officers time. including deployed, all use and critical Evidence.com. Live- media, the community CCTV video & of force data is information. streaming provides and the public. citizen mobile logged in real-time situational evidence Evidence.com. awareness. Axon participates today Axon solutions under development 15

https://vimeo.com/333871354 16

TASER Sensors and digital evidence management Records management systems (2H 2019) Computer-aided dispatch software (mid-2020) 17

CUSTOMER RELATIONSHIPS TECHNOLOGY • Strong presence at police agencies • Over 100 patents • New upstarts inherently distrusted MEDICAL RESEARCH ON SAFETY INTEGRATED OFFERING • 800 published, peer-reviewed scientific • Bundled pricing and medical studies demonstrating the safety and efficacy of TASER CEWs • Officer Safety Plan BODY OF CASE LAW • Tested by multiple judges, multiple jury trials, multiple municipalities • Successful in over 99% of cases filed 18

• ~70% Legacy gross margins 19

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https://vimeo.com/289980293 21

TASER Sensors and digital evidence management Records management systems (2H 2019) Computer-aided dispatch software (mid-2020) 22

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25 Shared with permission from the Bensalem Township Police Department.

Axon Evidence makes body camera programs feasible, affordable, and therefore, possible. “I no longer … need an additional attorney to help with the workload increase. This tool has completely changed my staffing recommendations, and consequently, will save our city a significant amount of money. I am very impressed with the product.“ Tami A. Perdue Chief Prosecutor for the City of Kent speaking specifically about Axon Redaction Assistant, an AI-powered redaction tool 26

An agency adamantly believes in on-prem data hosting • The customer prioritizes price above all else Note: Axon is investing in on-prem solutions to build out our category of product offerings 27

All new Axon Body 3 with LTE-live streaming Expected to begin shipping Q3 2019 28

TASER Sensors and digital evidence management Records management systems (2H 2019) Computer-aided dispatch software (mid-2020) 29

IN RECORDS DEPARTMENTS 30

Identify market Build integrated Land and expand adjacencies solutions 47 major American cities Announced in 2008 First shipments 2009 & growing overseas presence Announced in 2015 First shipments 2017 Vying for market leadership Announced in 2016 Goes live 2H 2019 OSP 7

TASER Sensors and digital evidence management Records management systems (2H 2019) Computer-aided dispatch software (mid-2020) 32

Efficiency: A measure of time saved

Effectiveness: Better, timelier information & safer communities The one Axon revolution: Seamless connectivity

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Shift to Invest in products & features that Drive profitability through disciplined execution 36

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$129 Axon Cloud Users Booked Annual Recurring Revenue 397,800 $122 ($millions) 371,100 $108 347,200 $102 325,200 305,200 $93 Vievu acquisition $83 $70 226,900 $64 201,500 187,400 $55 169,000 $46 148,400 132,000 $40 110,600 $32 95,000 74,800 $21 $18 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19

Growing % of revenue is tied to bundled, recurring contracts FY’17 FY’16 FY’18 Total Revenue - $344mm Total Revenue - $268mm Total Revenue- $420mm 34% from recurring contracts 46% from recurring contracts 55% from recurring contracts $90,828 $156,394 $188,395 34% $187,404 $231,673 46% 45% $177,417 55% 55% 66% 2016 2018 2017 TASER 17% ($35m) 23% ($54m) 29% ($72m) Software & Sensors 86% ($56m) 94% ($103m) 95% ($159m) Total (TASER + S&S) 34% ($91m) 46% ($156m) 55% ($232m) The percent of revenue tied to bundled, recurring contracts is disclosed in Axon’s 10 -K filings as revenue tied to multiple performance obligations. Note that the percentage 39 of revenue that is tied to recurring contracts is not the same as the percentage of revenue that is annually recurring , given that our multi-year contract bundles recognize hardware revenues on shipment, as dictated by GAAP. Body-camera hardware revenue recurs every ~2.5 years and TASER hardware revenue recurs every ~5 years.

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