Q1 2021 Axon Enterprise Inc Earnings Call
It's on can be a huge force for progress through our vision of Obsoleting, the bullet, reducing social conflict, enabling a fair and effective justice system.
And building for racial equity diversity and.
And inclusion.
Luke on July will now take you through some more highlights of our business.
Thanks, Rick as stated in our shareholder letter, which you've got a ton of positive feedback on shout out to our IR team. Our teams are executing on our 2021 strategic priorities to grow our core scale, new products unlock new markets and drive efficiency to fuel growth, we believe axon.
Has been at the forefront on teams, but the past year, we've been put in the center of truly unprecedented events that inspired our teams to show up in many new ways, our body cameras or capturing the most critical events in the world. We're proud of that and it's a responsibility we take very seriously during.
The civil unrest in the capital on January six for instance, D C Metropolitan Police and the Montgomery County Police, who our axon body customers were called in for backup and the Justice Department has released axon body camera videos related to that incident.
Axon body cameras are also providing critical evidenced in many of the current events that we're all familiar with.
Just last week NPR published a story about a team of public safety experts and world economists, let's say body worn cameras are both beneficial and cost effective the university of Chicago crime Lab and the council on criminal Justice Task Force on policing released a report and <unk>.
The key benefit of body worn cameras is the reduced use of police force for example, among the police Department study they saw complaints against police dropped 17% and this is really the compelling statistic is that use of force by police during fatal and nonfatal encounters.
By nearly 10% per.
Professor Jens Ludwig Hedwig head of the crime lab says if you're a local government looking at adopting the costs from your narrow green eye shade bottom line, the technology, probably pays for itself and the benefits. The public are a huge win easily outweigh the cost.
Our focus as a management team is to invest in growth. So that we can continue delivering technology to protect life and true.
In February we outlined the capital investments, we're making this year, including the Taser manufacturing, we have a great update to share on that front as you see in our shareholder letter these investments are growing.
The Taser manufacturing capacity and driving gross margin expansion this positions us to meet growing taser demand globally and in our federal sector. So far this year Taser device manufacturing and supply chain improvements are on track to deliver more than $4 million in gross cost savings in <unk>.
2021.
We're also excited about the momentum that we're seeing in our software and sensors segment. Later this year, we expect to launch our third generation fleet solutions. This is our dashboard M solution, which features AI powered automated automatic license plate recognition known in the industry is LPR demand for this.
<unk> fleet bundle, which includes LPR software add on and the live streaming off of our cameras is exceeding our expectations by a healthy margin and you can read more about this in detail in our shareholder letter.
We're also seeing growing adoption and the usage of LTE enabled live streaming off of the body cameras and remote evidence uploads and in the coming weeks, we expect to transition the Baltimore police departments.
Our record solution.
And the training and feedback has been going very well finally, we're transforming how adt's train their officers by addressing the inefficiencies around the classroom roleplaying and simulator training by leveraging Dr. We are addressing their two biggest issues budget and time in the coming days, we have an exciting.
Product line that we can't wait.
Telling you more about we just did a sneak peak of our big B, our announcement yesterday with teasers training Advisory Board and it was very well received we have a lot of a lot to be excited about in 2021 would be on now I'll turn the call over to our Chief Financial Officer July.
Thanks, Luke as our teams continue to execute at an extremely high level, we're able to confidently invest in our future. Our strong balance sheet also gives us the flexibility to drive growth broadly across products markets and geographies.
We've recently made three strategic investments and Fox safety rapid Sos and celebrate as well as expanded our strategic partnerships. These.
These were carefully crafted moves that allow us to extend our platform as we aim to build the public safety ecosystem of the future.
In Q1, we invested $20 million in rapid Sos and more recently completed a strategic partnership.
When people dial 911 lives are literally in the balance when the call center doesn't know where they are.
Rapid Sos as the leader in solving this problem.
For example, if you call 911 today using your iPhone in the vast majority of U S jurisdictions, Apple will send your location to public safety via rapid Sos.
Now the location on live streams of axon body cameras, and axon fleet cameras can be integrated into the rapid Sos platform and rapid Sos data can be integrated into our new axon respond dispatching platform.
Another recent investment and strategic partnership includes a $90 million participation in a pipe transaction in connection with celebrate going public buy a spec IPO.
Celebrate as the market leader in digital intelligence their software complement our lead in digital evidence management and they share our strong emphasis on safeguards to protect privacy.
We're consistently hearing great feedback from our customers in common with celebrate and the company has been delivering compelling results. This partnership will make evidenced dot com, even more valuable for our customers.
From an M&A perspective, as you can see we're taking a deliberate approach to how we partner and deploy our capital you can expect to see us continue to be opportunistic and make strategic moves that strengthen and extend our platform to be clear we will be highly selective.
Our continued strong execution allows us to make these types of investments and keep our strategic focus on investing for growth.
However, it's really the fact that we always lead with our mission to protect life truth in the communities. We serve that has us taking a long term view on our business.
As we work towards goals such as Obsoleting. The bullet, we're measuring our progress over a longer term horizon and.
In fact, we'd like to invite you to think about our business the way that we do in terms of years and not quarters.
This is why today, we are introducing two year revenue guidance for both 2021 and 2022.
For 2020, one we are raising our revenue guidance by $40 million at the midpoint to $800 million.
In 2022, our early view of the year anticipates that we will deliver approximately $920 million revenue.
The combination of positive underlying demand trends and our strategic growth and expansion initiatives gives us tremendous confidence in our longer term outlook.
We've been making investments in several new geographies outside of the U S and many of these investments are starting to yield results. The.
The nature of the international market is such that the deals are often for larger regions or entire nations.
The larger and more complex nature of these deals makes their timing difficult to forecast and thus growth is not as linear as we might expect in the U S. We therefore expect the phasing of revenue from international deals to contribute to variability in our quarterly revenue a trend we expect to continue for the foreseeable future.
This is why we are anchoring on annual revenue guidance, we don't want the timing of large international deals to signal anything about the underlying growth rate of our business.
We are laser focused on building a business that will sustainably grow at a 20% plus CAGR.
I want to reiterate that we are committed to continuing to execute and invest with rigor and discipline as such and given our strength and outlook for the year, we're raising our adjusted EBITDA guidance for 2021 by $12 $5 million at the midpoint.
We're also maintaining our long term target adjusted EBITDA margin of 30%, while continuing to invest for growth.
I'd like to close by highlighting another aspect of axon, but I'm, particularly proud of how diversified reach because.
We sell hardware and software solutions and services products and training, we've diversified geographically as well as to the types of customers, we sell to revenues from our market, leading taser devices and body cameras remain on a strong growth trajectory, while our <unk> has now surpassed $240 million and as expected.
To grow approximately $15 million per quarter.
I've never felt better about how axon is positioned for growth and I'm looking forward to seeing how our team continues to deliver and with that Andrea let's move to questions.
Yeah.
Thanks, Joanna and keen on.
Just wanted to check with our money that we can bring everybody up into a gallery with you.
Give me a neural net.
Okay. We are I've been gallium do you in analyst day that you all in on Q, So new Netease the handmade feature.
And just let US know if you have a follow up we'll take our first question Keith Wisdom at non coast go ahead Keith.
That's my move teeth Youre on mute I.
I got a patent on that.
Alright, how are we doing now.
Alright, Thanks, Bob and congratulations on a great quarter.
I appreciate the guidance on board.
Rick.
Now two quarters in a row fantastic changed your sales growth.
Perhaps you can provide a little more color on what you think from the drivers on a meal.
How are you guys, achieving our stage of growth for the past few quarters, but I guess from a quarters worth anywhere near that type of growth.
Yeah, I'll touch on it and then Josh I'll hand off to you.
I would say you know, there's there's really a shifting focus 10 years ago. The focus with Taser. There was a lot of focus on sort of a medical safety of the devices I think we've come out that's where now there's really an intense focus on effectiveness.
And my book, where I talk about I'm very transparent we are not yet reliable left to be a substitute for lethal force, but we're heading that direction. We made a big step with Taser seven and we will make an even bigger step on on X launch.
And I think our customers are pretty excited and we're just seeing a lot of a CAGR of seven adoption that is really kind of picked up on we're also seeing I think broader international adoption, we're getting orders coming in our data reports and I got to go look at the map. This new works in these countries are.
A few years ago weren't even on our radar and now we're getting much broader coverage so that Josh let me hand over to Joe.
Yeah. Thank you Rick ultimately I think it's just a continued story of a lot of investments in new and the channel that we've made over the years are starting to pay off as Rod said, our diversified state and local law enforcement is absolute flow.
A big part of that growth story, but so is international so as federal Soc corrections and so we've got a lot of talent talented people from a lot of great work right now.
We'll continue to invest in white space on the channel to make sure those results continue to grow in the out years.
And as I tell my follow up I was asked the Guy asked a question about the supply chain issues of capital really across all technologies. These days.
I guess, where in your portfolio of products I guess do you have any pinch points with supply chain and on the issue getting worst years ago on the second quarter.
Yeah, Great question, Keith I'll field that so on.
Our our our supply chain and ops team is led by nominal guidance, Josh Goldman and over the last year, we've really put buffers in place to ensure that we can meet the quarter quarterly demand as well as forecast out critical components and I've just got to give the team a lot of credit to.
<unk> the last 12 months and we're keeping that same strategy looking forward and we and as of today, we feel really good about it.
Great.
Thanks, Keith we'll take our next question from will power at Baird.
Alright, okay. Thanks for taking the question.
The rest of our sorry for your loss.
Yeah.
Thanks, well on.
On a positive side I hope to die the way he debt. It was it was actually a positive and uplifting is such a thing could be.
Yep, Okay on scale.
Well congratulations on the results, obviously really strong.
Cross the board I guess.
Maybe broadly looking at the opportunities in the us on the spending habits.
Then what are you seeing in terms of municipal budgets any headwinds on that front and on to what degree on some of the federal aid plans.
Helping Josh.
Josh.
Totally so I think about this time last year, there were a lot of questions about how that would materialize and we're still very happy to say it really hasnt in a meaningful way and in fact, a lot of the federal conveyed packages have.
Abided, a do additional funding to stay local at first it was mainly the large cities, but in the latest.
Grant Packager was for small and mid sized cities as well so.
We don't see any any kind of systematic challenges across municipal funding that make it any more or less worrisome than in the past. We think it's in front of us and we provide the right products on our customers value and we really believe that.
There'll be able to find funding to buy them.
Okay, that's great and if I can sneak in on.
Really nice to see some of the early linked three indicators I'm wondering if you could just provide any more color as well.
And what kind of helping set you apart on the market any any issues potentially on the supply side in terms of meeting that demand just any more back on there Greg.
I'm, sorry, what was that I couldn't hear what product, we're referring to from a fleet planning.
Why don't I take a first stab and then pass it to Jeff. So one thing that I talked about we're really excited balance to see attach rate to the a M. P R and on this.
This is one where I think the customers are saying, Hey, I can go with one solution with axon and get these two critical benefits. It also is a great.
Story around how we're able to provide not only the hardware, but also the software and advanced software that the customers who are willing to pay for it.
Yes.
Oh go ahead go ahead, Jeff.
Yes, just continuing on that first and foremost on the camera system itself, we're really.
Crowd and looking forward to ship and per customer.
Well then we are best camera system ever for the current.
We knew and we've just on those merits alone on that drive a lot of the demand that we're seeing and then as we've alluded to one of the things that axon is greatest strengths is how we combine these devices with the power of intelligent cloud services and some all with our respond lives to remain connected and as well as our new <unk>.
Relatively affordable and ethically designed from the ground up approach to LCR really creates from the first time the ability for an agency to afford for the same budgets that are used to spending but aftr capability in every single vehicle and so you put all that together and at an attractive overall price and again, we still have we look forward to.
Shipping later, this year and asking our customers love it.
Thank you.
I've got to add one more thing, maybe we're too transparent, sometimes but it would fleet one and two.
We've we're scrappy and we have to get to market fast on the hardware was not our strength in those products and we've still got to I think the top top end of the suppliers in the market free.
Right now we are bringing our a game. This is the first camera where the hardware has been designed from the ground up for this use case you know previously we did take our body cameras, and then re factor them per car and we learned a ton by doing that.
I'm really pumped to see what's going to happen because what we're bringing on now has been purpose built over a multiyear period by some really talented and often quote so I'm excited to see how it performs in the market.
Okay.
Yes.
Yes.
Alright, Thanks, Pat well, we love the family care that time on.
We'll now take our next question from Jonathan Hurdle at William Blair and head Count again.
Good afternoon, I wanted to just start out with the two year guidance on interest given the lumpiness that you're seeing in some of these international yields in the longer sales cycle I.
I guess can you talk a little bit about how you are building that long run of our forecast and what maybe it gives you the confidence and be able to offer a two year view on this early.
I'd like to start with that and we'd love to hear.
Josh as input as well so there are a couple of factors Jonathan the first one is look quite frankly, the business is rocking and rolling we've got you've heard us allude to where we've collected a pretty fantastic collection of talent and all of our functions and they are executing crisply and reliably and I have a tremendous amount of confidence in them.
The pipeline that we've built I feel like we've got a very high likelihood that we're going to execute on that.
To such a degree that I feel confident going out two years on our guidance.
The second factor is and we've also alluded to this is that these international deals you know it makes it difficult for us to give quarter to quarter guidance, it's better for us to think in terms of years, because they're larger they're more complex. There's so many more factors involved financial operational regulatory political.
And really we think about the business in terms of years and what we're working towards is to build a business that will sustainably grow at a 20% plus CAGR year over year.
And then lastly, I'll just add one of the benefits of really focusing on bookings as a forward looking indicator of our results on our bookings continue to grow year in and year out and we saw that last year, we're seeing it this year as well and we're very excited about what that means for the future. So.
We certainly do between.
Bringing on more and more enterprise sales talent that gets better and better at forecasting combining that with having growing bookings year over year. It gives us a lot of confidence that we're going to keep growing.
Got it got it on can you also maybe give us a little bit more color in terms of the traction that you're seeing relative to the RMS and cash solutions, specifically your software suite and maybe how that's contributing to some net retention in some of the expansionary metrics there as well. Thank you.
Certainly we're really excited we're seeing customers.
So that have had a lot of confidence in us historically willing to partner on park are with us on more and more on our newer offerings. We when we go into police departments on the questions. We always asking what's the best piece of functioning software you deployed today and oftentimes we hear from its evidenced dot com net and inspires a lot of confidence from our customers that the net.
Piece of enterprise software, we deliver is going to be equally good or better and so right now we have to be very careful in terms of making sure that set the right expectations. We bring on the right customers for us early on and we make those customers really successful on that's what we're focused on right now and we believe just like we have.
In every category that we've entered we turned those early Los Angeles into a growing market over the years to come in and we have a lot of confidence we're going to do that in our records and dispatch as well.
Thank you.
Thanks, Jonathan we'll take our next question from Jeremy Hamblin with Craig Hallum Go ahead Jeremy.
Thanks and.
Congratulations on the strong results and also.
As my thoughts on this.
Family.
I wanted to actually ask about celebrate.
Thinking about the investments that you've made in that business.
What is the likelihood debt with the rapid growth that they're seeing that youre going to have additional investments made in that business.
Down the road.
How much more integrated can you potentially see these businesses becoming.
Yeah, I'll start so celebrates a company that we've been admiring from afar for some time now we had a chance to build a relationship with them.
Prior to the to the spec deal coming on our radar at someone we really admire and as we talked about they're a leader in digital intelligence. We think it's a very natural extension of our lead in digital evidence management and this is a long term play we really view our partnership with them is.
Strategically important to axon and we'll evaluate the opportunity to invest more or something beyond that going forward, but at this point, we feel really good about where we're at.
I think I was.
Just add to that just as Joe I talked about earlier, you can see that pattern and all of us in a very judicious investments. We've made so far so between block safety and then rapid Sos and then now with celebrate.
All of them are yes, there are financial investment, but theyre very purposefully chosen to be a match for places where customers win as we do interesting things together commercially as well on the investment.
Is is accelerants.
To what we had otherwise what's naturally do as great partners.
Alright, and then I also wanted to just ask about your annual recurring revenue you've had.
Very steady paced on message.
It's roughly $20 million a quarter that youre, adding on.
The company gets bigger and bigger.
On.
What would potentially drive.
Deviation to the upside from that $20 million a quarter.
It had just gaining significant traction in RMS is that going to be the big driver.
But how do we potentially step up from that level from here.
Yeah. So one of the things that Josh alluded to is for us a leading indicators really bookings and we're right now just like we've made investments in new International markets. We're also making investments in these new product categories like records and dispatch and we're in the very early innings. We're building a product that we're very proud of and we think.
It's going to be.
A market leader and so the leading indicator for US is give me bookings as those bookings come in we think that will just continue to add it'll end up translating in a R.
Let me just wanted to piggyback its real quick just to make sure your numbers on that line.
We're very proud of day rate that we're adding IRR, but it's been the average over the last year and from closer to $15 million a quarter.
On behalf of July the number he referenced in his scripted smile.
Right.
Okay.
I'll leave it at that actually thanks, good luck.
Yeah.
Okay. Thanks, guys. Okay, we'll take our next question from John <unk> at Needham Go ahead John.
Hey, guys. Appreciate you taking my questions. Congrats on the nice quarter I have a question ground.
On products.
Mr Gibbon, though on the social unrest.
How do you see demand trends early on for that and it came from a high level given what's about two or three years, how do you see that product kind of growing and coming to market and then maybe it helps from where you think.
You said it competitively.
Yes.
Yeah, why don't I start with that and then have Josh follow up so you know that.
The demand that we've seen for VR I would say it is nearly unprecedented where customers are coming to us we're explaining what our existing offering is with community agents scenarios. Some of the future ideas that debt that we're developing and we've seen a really really healthy pipeline.
From.
All sized agencies a lot of geographical distribution. So we feel like this is one where there is a lot of demand.
Oh, Yeah, I think that's I think that's right I just wanted to be clear though.
Im very cautious to attribute that to.
So really anything except where we're addressing a need that has existed for the.
The last 20 years it will exist in the next 20 years and there arent, we can't control kind of year to year or what.
What the narrative is in the public or what what's going on.
Externally so for US it's about building products that we think better and make our customers more effective and safer at their jobs make communities safer and we think VR is of that category.
We're super excited about this one we see a lot of demand in the market, we see a lot of.
Alignment with our mission long term and this is one that it's a new category that we're really proud to be participating in and we've got a team that's very focused and excited about scaling it over the next several years.
Thanks, guys.
Yeah.
We can John Okay, we'll take our next question from Eric Lapinski at Morgan Stanley Go ahead, Eric.
Thanks, maybe going back to the Baltimore rollout of records and just wondering as you're working through that line.
What's the level of customization that a larger police department will be pushing forward with that line is the product modular enough that you can kind of work around what they might one I guess just wondering how that process goes on.
And if it is.
Altered on the development path in any way from making it more customizable.
Sure enough great question inherently not only for us per for every you know everyone playing on any of these large capex enterprise software players inside and outside of public safety.
There is.
There is that the ads I think for US what is clear is we continue to go forward that we're really excited about that we're building the right pieces in the right order as we keep building up the product and winning and working to delight, our customers and as Josh said earlier today and as you've heard me say on the last couple of calls you know this is a multiyear journey for <unk>.
We are determined in our path to ultimately become number one in these categories, but we also have no illusions that takes time and it's one piece of our overall path on.
Our sensors and software contributing more and more all portfolio of scenarios that our customers need to be successful every day. So we felt great about that rollout on about what is what baltimore's needs in each of our early customers needs are applied.
Applied all of the additional customers to keep going.
And we just got we depend on feedback from the outside that on Eric's question, and John well, maybe not that wild hairy cell jungle theme had asked about virtual reality training and Eric had asked about the level of customization required for Baltimore PD.
If I can ask one more to just just on international you know tracking traction in bookings there.
Is that primarily Taser right now or are you also seeing it picking up with the body Cam side.
I think the last time, we've asked on that it was kind of Taser was really leading some of the international expansion, but wondering if body Cam has followed.
And if not what products just real quick Josh questions about what products are driving our international bookings. Thanks, Josh go ahead.
Yeah, sorry about that.
Absolutely I think it's a great question. The good news is we're seeing both and it depends on the market some markets we lead with Taser.
And then we grow those into body cam customers in other markets.
And customers were leading with body cameras and even debt.
Without body cameras, which is a growing segment for us in international where large customers and we expect to see a couple of these in the next couple of quarters by software only packages from us in high volume. So we're particularly excited about that new trend that we're seeing and so we feel like we're really really well positioned just like in the United.
States, where we started with one product in a diversified and.
Grown cut.
Customers into adopting several of our products, we're seeing the same things starting to happen in international.
Awesome. Thanks.
Thanks, Eric to any of our analysts have any follow up questions.
Okay, well, thanks, guys. So much for joining us we're going to have Rick close this out.
Thanks, Andrea Hey, before he leaves if you have time to stick around we're going to play our quarterly earnings video assets.
Thank you for joining moving forward to updating you throughout the year, we will drop off after this video on the webcast will be posted to Investor day at axon Dot com.
Raw video.
Yes.
Everyone welcome back I M at our Scottsdale headquarters, where we just held on onsite clinic administering COVID-19 vaccines employee's family and friends settled line, we have a lot to share with you that investors will definitely want to hear about to start we have a new member of debt.
But our CFO will introduce sir.
Thanks, Angel, what will keep axon strong as we rapidly scale is cultivating strong teams, which means attracting top talent and investing in their development I started my career in a finance leadership development program and changing it was an incredibly valuable experience and we've created something similar at axon I'd like to welcome our first upcoming graduate Gen Jackson to share it.
Your words.
Thanks, Joe on the Finance development program has given me experience within accounting financial planning and Investor Relations now positive Vale and read an important caution about forward looking statement net that Andrea James our SVP of corporate strategy and Investor Relations.
Welcome Jen.
As many of their rapid growth company highly focused on our mission of protecting lives and we're expanding in many ways remember that vision, we sat on our last video, where we continue to innovate and public safety and create a world where everyone gets home safe to buildings, it's important that we partner with other ecosystem leaders our news fatigue.
On a partnership with Sky D. O for instance, make Sky D O drones and autonomy software installations immediately available for agencies through act on this relationship will pave the way for Sky D. O offerings can be integrated with axon product suite to improve evidence management real time, situational awareness and scene reconstruction for agencies.
And our recent partnerships and investments in walk safety rapid Sos and celebrate had been driven by our focus on strategic product alignment on capital allocation that benefits our company benefits, our shareholders and importantly serve customer needs tune into our quarterly earnings call to hear more from Jawad about our strategic.
Approach in the meantime to double click on one of these investments checkout, what rapid Sos and axon are building together.
In an emergency 911 is forced to rely on the limited information that a phone call can provide.
901, telecommunications do extraordinary work despite that dated infrastructure, but in the 21st century. It is time for us to use data to transform emergency communications.
Rapid S was partner with public safety over the last eight years to universally link critical lifesaving data from over 350 million connected devices directly and over 4800 emergency communication centers nationwide, we're thrilled to be joining forces with rapid S. O S, bringing our technology.
Allergies together into a seamless interoperable data experience for first responders and E C. CS.
Today across the U S and ultimately around the World 911, telecommunications using rapid Sos will now have access to real time situational awareness from axon body cameras and other devices in the field simultaneously data from millions of connected devices on a rapid Sos platform called <unk>.
Now be seamlessly available to every agency using axon respond.
Now to focus on our core we are constantly innovating on critical solutions. The auto transcribed digital notepad pilot is live across several agencies a growing number of users on not only playing back body camera video the transcribing them into digital evidence is while we're also growing our international footprint and are seeing results from investments in our international sales channel.
Let's start with Italy day Municipal police department of the city of Venice annuity Rootlet officers with Taser devices, and axon software licenses, making them the first agencies in Italy, which is now.
On the local police and lights on M, which is Nvidia for Atlanta will be the first city in Italy to adopt our in car system Axon fleet and our interview isolation Lottie penetrate the growing number of Italian agency adopting our cloud connected on LTE enabled axon body three camera.
The government of Ontario is deploying axon evidence across public safety agencies, making them. The first province in Canada to adopt axon solutions for digital evidence management.
We are thrilled to help connect all Ontario Justice sector partners and stakeholders, our solutions will be used by municipal provincial and first nations police services Crown attorneys and corrections personnel.
Angel that is a meaningful development in Ontario, because it highlights the growing utility of our cloud software platform.
We also just achieved a key milestone in Australia in February we successfully completed a cyber security review from the Australian government. This requirement from Australian Federal and defense customers provided an added level of security and assurances and enables even broader adoption of our cloud solutions down under.
Now on to ESG topics, we are committed to philanthropy and community engagement and outreach and products that serve communities as well as public safety virtual reality training adds value to customers and those they protected we are releasing our community engagement training module every month and have tripled our content library in the past year with new.
The address peer intervention and domestic violence as well John let's build on what our focus on mental health and public Safety Act on eight is our philanthropic arm. It just launched a program that focuses on mental health, which is a growing concern per officers and their families. We are honored that participating line parts that operators are willing to be vulnerable.
And share their stories and service have helped on their colleagues in need.
We know that building trust in institutions and protecting lives is top of line for everyone. Let's hear about from our community facing teams on their work advancing our mission. We are given a voice to the community and ensuring they have a seat at the table on critical issues. We've formed a community advisory coalition to guide axon and developing technology with communities and mines.
That may disproportionately have encounters with police. This coalition is a group of community members and leaders across nonprofit and philanthropic organization as well as academics will reflect diverse community concerns will be assessed in public safety agencies, and including diverse community perspective into their training helping them.
Bill coalitions to here and address community concerns and operating data services, such as measuring bias in activities such as Traffics that we're also building racial equity by inviting the coalition to give feedback to the axon product teams via a racial equity tool kit product teams can use the tool kit to engage with the Polish.
And describe how they considered racial equity and product development work driven to create a world where everyone gets home safe and build bridges between public safety agencies and the communities they serve.
We'll keep you posted on the important work by Regina Erica and their Kim Let's go back to July deposits out I'd like to take a moment to thank our shareholders and analysts from voting for us across several categories and recent awards from both institutional Investor at IR magazine, we very much value our relationships with you and are appreciative of your continuous support we have an exciting year ahead.
And look forward to continuing to deliver on our mission to protect life truth and the communities we serve.
Thanks for tuning in checkout investor that axon dot com per our shareholder letter and so much mark.
Sure.