Axon Enterprise (AXON) – The Evidence is Clear

Last week, Axon Enterprise (AXON) was a focal point at the IACP Conference, or the International Association of Chiefs of Police. Before getting into the takeaways, let me remind you of the strong earnings report the company published back in early August. I discussed some of the highlights in a Behind The Numbers write-up in the August 8th W/E Research (Click HERE to Subscribe):

Technology Roadmap

Going back to the conference, a key message was that there remains a need for better technology in policing to improve both safety and efficacy. Everything that was discussed closely aligns with the roadmap and the technologies currently offered by AXON.

Morgan Stanley analyst Meta Marshall highlighted that law enforcement representatives from agencies both large and small echoed challenges with a growing number of scaling digital evidence inputs. In general, panelists noted a desire for a single system to manage these inputs, but currently do not believe such a solution exists. Panelists specifically noted their officers needing to access upwards of 15 digital evidence input systems and exhausting data allowances with storage needs growing 20%+ each year. The analyst walked away seeing this as an opportunity for AXON who has that presence in digital evidence workflows today. “Axon’s clearest opportunity near term is to expand beyond existing body camera video evidence management and consolidate management of the incident record, taking in additional inputs and owning the complete record management, with integrated command center/dispatch software also on the roadmap.”

They also learned of a use case example from the Oklahoma City PD, who made the decision to record all use-of-force incidents and require yearly de-escalation training. They were encouraged that the challenge resulted in the Oklahoma City PD leaning on a records solution that is now being migrated to Axon, with the department commenting that it believes there will be more data capabilities with the Axon Records system. The agency had not historically had a way to formalize or track training across policies and procedures and was able to use another solution initially, but opted to move to Axon’s Records system given a “promising technology roadmap.”

Drones

Finally, back in June, Axon and DroneSense announced a partnership to provide public safety agencies with an end-to-end drone software solution. Per the press release:

“Axon will implement DroneSense’s piloting, program management and operations solution via Axon’s unmanned aircraft program, Axon Air. DroneSense will also integrate its offering with Axon’s digital evidence management platform, Axon Evidence, and real-time operations hub, Axon Respond, to provide agencies with a comprehensive solution to start and operate a drone program. This integration will streamline first responder and drone pilot communications — allowing live streaming from the UAS into Axon’s real-time operations platform and digital footage to be stored in Axon’s evidence management platform.”

I bring that partnership up because I believe the topic that flew under the radar at the IACP Conference surrounding drone usage. Morgan Stanley would say, “While usage of drones in police practice remains a newer topic, we were impressed to see a number of sessions mention aviation and drone applications as areas of investment focus for law enforcement. Presenters noted excitement around drone usage and Axon’s virtual booth featured an exhibit highlighting a potential use case and how Axon Air can be integrated into existing Axon camera / Evidence.com deployments. We currently consider limited contribution from Axon Air in our model, but walk away encouraged that aviation in policing has gained increased focus.”