AXON ENTERPRISE, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

THREE MONTHS ENDED

31 MAR 2024

31 DEC 2023

31 MAR 2023

Net sales from products

$

272,048

$

258,405

$

219,389

Net sales from services

188,688

173,737

123,654

Net sales

460,736

432,142

343,043

Cost of product sales

151,698

125,664

107,584

Cost of service sales

48,992

42,591

31,357

Cost of sales

200,690

168,255

138,941

Gross margin

260,046

263,887

204,102

Operating expenses:

Sales, general and administrative

152,669

137,106

116,567

Research and development

91,097

83,972

70,927

Total operating expenses

243,766

221,078

187,494

Income from operations

16,280

42,809

16,608

Interest Income, net

10,374

12,325

9,666

Other income, net

139,066

668

15,610

Income before provision for income taxes

165,720

55,802

41,884

Provision for (benefit from) income taxes

32,502

(1,469)

(3,255)

Net income

$

133,218

$

57,271

$

45,139

Net income per common and common equivalent shares:

Basic

$

1.77

$

0.76

$

0.62

Diluted

$

1.73

$

0.75

$

0.61

Weighted average number of common and common equivalent shares outstanding:

Basic

75,355

75,060

72,638

Diluted

77,132

76,178

73,880