Axon Enterprise, Inc. (NASDAQ:AAXN) Q1 2018 Earnings Conference Call - Preliminary Transcript

May 08, 2018 • 05:00 pm ET

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Axon Enterprise, Inc. (NASDAQ:AAXN) Q1 2018 Earnings Conference Call - Preliminary Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to the Q1 2018 Axon Enterprise, Incorporated Earnings Conference Call. (Operator Instructions) I would now like to introduce your host for today's conference, Mr. Luke Larson, President of Axon. Sir, you may begin.

Executive
Luke Larson

Thanks. Good afternoon to everyone. I'm Luke Larson, the President of Axon. Welcome to Axon's first quarter 2018 earnings conference call. Joining today are CEO and Founder, Rick Smith, and CFO, Jawad Ahsan. Before we get started, Andrea James, our VP of Investor Relations, will read the safe harbor statement.

Executive
Andrea James

Good afternoon. This call is being broadcast on the internet and is available on the Investor Relations section of the Axon Enterprise website. During our call, we'll be making references to our reported results, which you can find by reading our quarterly shareholder letter and the supplemental materials, both of which are available at investor.axon.com and on the SEC website. We'll start today with prepared remarks, and then we'll move to a live question-and-answer session.

Statements made on today's call 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. This forward-looking information is based upon current information and expectations regarding Axon Enterprise. These estimates and statements speak only as of the date on which they are made, which is today, 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 report on the Form 10-K and our quarterly reports on the Form 10-Q under the caption Risk Factors. You may find these filings, as well as our other SEC filings at investor.axon.com or at sec.gov by searching for filings under the Axon ticker, AAXN. Okay, turning the call over to Rick.

Executive
Rick Smith

Thanks, Andrea. Welcome, everyone. First and foremost, I want to commend our employees throughout the organization for helping us achieve outstanding first quarter performance. Our results reflect strength across the board, in our Weapons and Software & Sensors, domestically and internationally. The team has been working really hard to execute, and they deserve a lot of praise. In Q1, we delivered record revenue and solid gross margins, while continuing to execute against our cost control initiatives. This drove first quarter GAAP earnings per share of $0.24.

We're incredibly excited about the opportunity in front of us and continue to position the business to deliver growth and increase shareholder value. The strategic tuck-in acquisition of VIEVU we announced last week is a great example of this. The deal adds a solid team that shares our mission of saving lives. Our new holster partner, Safariland, produces high-quality products and, most importantly, has history and credibility with