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  "documentTitle": "Axon Enterprise (formerly TASER) (AAXN)",
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  "presentationDate": "2019-06-19 00:00:00",
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  "notes": "The slide uses a bar chart to show historical vs projected margins and a table to contrast management's public statements with the reality of the Q1 2019 miss.",
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      "kind": "callout",
      "text": "Analysts estimate that gross margins will magically increase, yet none are aware of Axon's significant exposure to China imports and tariffs",
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      "kind": "callout",
      "text": "Analysts estimate that gross margins will magically increase, yet none are aware of Axon’s significant exposure to China imports and tariffs",
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      "text": "Axon's Total Gross Margin",
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      "text": "gross margin: 59.5%",
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      "text": "Axon forecasted 61% - 63% gross margins for Q1'19, yet actual results were 59.5% - a significant miss that management initially explained from Taser 7 program start-up costs and trade-in credits.",
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      "text": "In Q1 2019, we expect gross margins to be in the range of 61% to 63% and build higher over the rest of the year — Axon Q1'19E Gross Margin Guidance. Gross margin of 59.5% represents 260 basis points of sequential improvement, driven by strength in software and sensors, partially offset by TASER 7 program startup costs, including customer trade-in credits — Axon Q1'19 Press Release. In Q1 TASER segment gross margins were pressured by two main factors ASP, average selling price and scrap rates both will improve over time and we're improving even as we speak. — Axon Q1'19 Conf Call. Additionally, margins were compressed related to the rollout of our newest TASER device and increased data storage and tariff and customs expenses. — Axon Q1'19 10-Q.",
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      "text": "Source: Axon financial statements",
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      "text": "Gross Margins Will Severely Disappoint",
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