taser - q3, 2014
TRANSCRIPT
Q3 2014
This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including statements, without limitation, regarding our expectations, beliefs, intentions or strategies regarding the future. We intend that such forward-looking statements be subject to the safe-harbor provided by the Private Securities Litigation Reform Act of 1995. The forward-looking information is based upon current information and expectations regarding TASER International, Inc. These estimates and statements speak only as of the date on which they are made, are not guarantees of future performance, and involve certain risks, uncertainties and assumptions that are difficult to predict. Such forward-looking statements relate to: expected revenue and earnings growth; estimations regarding the size of our target markets; successful penetration of the law enforcement market; expansion of product sales to the private security, military and consumer self-defense markets; growth expectations for new and existing products and accounts; expansion of production capability; new product introductions; product safety and our business model. We caution that these statements are qualified by important factors that could cause actual results to differ materially from those reflected by the forward-looking statements herein.
FORWARD-LOOKING STATEMENTS
02
MULTI-BILLIONAXON-Evidence.com:
Entry into Multi-Billion Dollar Annual Law
Enforcement IT Industry1
UPGRADE OPPSignificant Weapons
Upgrade Opportunity
WHITE SPACELargely Untapped
International Markets
NO DEBTStrong Balance Sheet:
No Debt other than Capital Leases ($100k)
TRUSTEDStrong IP, Brand &
Customer Relationships
$120M BUYBACK$120 million in
stock buybacks
executed
1 Criminal Justice Information Services Group Report03
• Premium customer • Point of View perspective• Multiple mounting options• Full work shift battery• Constant streaming
• For the convenience driven and price sensitive customer
• On-officer view point• Full work shift battery• Constant streaming
04
ROADMAP
•
•
•
•
•
•
•
05
TRUSTED CLOUD PARTNERFederal Government and CIA Have Paved The Way To Lessen
Cloud Data Security Concerns In Municipalities
600 MILLION
06
87.5%
REDUCTION
59.0%
REDUCTION
AXON FLEX STUDY
07
Net Savings Year 1
Cost of Cameras and Evidence.com
COMPLIANCE COST AVOIDANCE
x
-
CITY SAVED $4 FOR EACH $1 SPENT08
EVIDENCE.COMA Public Safety Platform
09
GBs
1,300,000
1,200,000
1,100,000
1,000,000
900,000
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
150,000
140,000
130,000
120,000
110,000
100,000
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
Files
10
$2.0M
$5.8M$5.2M
$5.9M
$11.3M
2013Q2
2013Q3
2013Q4
2014Q1
2014Q2
11
$15.3M
2014Q3
Initial Order – Handles, Batteries, Warranty, Holster
VIDEO ORDER
++
Add-on Orders of Training Cartridges
Add-on Orders of Field-use Cartridges
Total Opportunity over 5 years
Video Order with 5 year Evidence.com Contract
/ Weapons 5 year opportunity
Video 5 Year Value Multiple
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1,083 M 1,195 M
2,002 M2,060 M
2,396 M 2,307 M903 M
1,179 M
1,678 M 1,966 M
2,075 M
2,470 M
201303/01
201306/01
201309/01
201412/01
201403/01
201406/01
Total LT Deferred Rev
Total ST Deferred Rev
13
201409/01
2,471 M
2,306 M
• Introduced in April 2011• Immediate Backup Shot• Dual Lasers• High Performance & Reliability• Displays warning arc while loaded• Compact Full Time Carry
Every Officer Needs Backup
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• Introduced in January 2013• Reduced training risk• All Digital Platform• High Performance & Reliability• Current and Charge Metering• Compact Full Time Carry
An upgraded classic.
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INTERNATIONAL SALES STRATEGY
Missionary Team
Headquarters
16
TRUSTEDTASER is already a
trusted partner within law enforcement
STAFFEDSales staff for video and weapons share and develop leads
CONNECTEDTASER already has the relationships with all levels of command staff at more than 17,000 out of the
18,000 agencies in the U.S. today.
INVESTEDWeapons segment
produces steady cash flow which allows
investments in emerging
technologies
DIVERSIFIEDVideo products and SaaS solution gives TASER the ability to double sales over time by having a
second product line.
17
DR. RICHARDCARMONA
JUDYMARTZ
BRETTAYLOR
MICHAELGARNREITER
HADIPARTOVI
DR. MARKKROLL
LT. JOHNCALDWELL
18
Co-founder Code.org
AngelInvestor
ProductManager
CEO of Quip
Ex-CTO ofFacebook
Co-creator ofGoogle Maps
19
MULTI-BILLIONAXON-Evidence.com:
Entry into Multi-Billion Dollar Annual Law
Enforcement IT Industry1
UPGRADE OPPSignificant Weapons
Upgrade Opportunity
WHITE SPACELargely Untapped
International Markets
NO DEBTStrong Balance Sheet:
No Debt other than Capital Leases ($100k)
TRUSTEDStrong IP, Brand &
Customer Relationships
$120M BUYBACK$120 million in
stock buybacks
executed
1 Criminal Justice Information Services Group Report 20