Axon Enterprise, Inc. (NASDAQ:AXON) Q3 2023 Earnings Call Transcript

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But it’s really some of those mixed dynamics that we’re going to be working on as we balance between gross margin and OpEx leverage. I think the last thing we’ve been focused on is improving our overall TASER gross margins as we continue to leverage and scale TASER 10. So we’ve got a couple of benefits to gross margin over the next couple of years, and then we just have to balance that out with mix, if that makes sense.

Jeremy Hamblin: Yes, absolutely. Thanks for taking the questions.

Andrea James: Thank you.

Brittany Bagley: Of course.

Andrea James: Thank you. One more from Jonathan Ho at William Blair, and then we will close out.

Jonathan Ho: Thank you. Just one final question for me. Just given the TASER 10 strengths that you referenced on the call, you know, have you been able to shift to the demand or is there, you know, potentially an accumulation of backlog here as well? Thank you.

Rick Smith: Go ahead, Brittany.

Brittany Bagley: I was going to say it’s a great question. We are working really hard to ramp our capacity, but I think you can see from some of the growth numbers and some of what we have been delivering that we’re doing a nice job getting our capacity ramped up. As we continue to go into next year, what we’re really working on is getting more of that capacity automated.

Andrea James: Great. Okay, pregnant pause. All right, Rick, go ahead and close this out.

Rick Smith: All right, before we sign off, I want to take a moment to acknowledge and thank you, Andrea James. This is going to be Andrea’s last quarterly earnings call with us here on Zoom. So after a fast-paced and transformative six years with Axon, leading investor relations, Strategy and Communication, AJ is going to take some time to reset and enjoy the fruits of the success that she’s had and has driven here at Axon. AJ has been one of my closest personal advisors. And so as we got to the end of the last XSP and we had some conversations about life and the future, I remembered one of my favorite quotes from Ray Kurzweil, the most important decisions we make are how we spend our time. And back around 2013, when my kids were in preschool, I had the wonderful opportunity to go spend a year in Europe and walk my kids to kindergarten every day And talking with AJ about her budding and growing family, I couldn’t disagree with the assessment that how she spends her time might be to take advantage of some of the success from Axon.

So we talked about her doing advisory and board work, given the amazing experience she’s had at Tesla and here at Axon. So I’ll be keeping on speed dial. AJ, and, you know, just very personally and professionally grateful to have you a colleague and a friend and want to acknowledge your great service towards our mission. I know you’ve — she’s also formed relationships with so many of you and it’s not fully goodbye. She’ll continue to support us behind the scenes in an advisory role into at least the middle of next year to ensure a smooth transition. And we are thrilled that Erik joined us earlier this year to help — to lead our IR efforts. He’s really hit the ground running, He is really there to catch the baton from one of the greats. And having been an analyst in our industry for several years, Erik, that is before joining Axon.

And with that, I want to thank all of you for joining. We’re proud of our team’s execution. We’re confident in our profitable growth. We look forward to a strong finish to the year. I wish you all a happy and wonderful holiday season. I hope the world finds more peace and we will see you all in February.

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