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  "documentTitle": "Axon Enterprise (formerly TASER) (AAXN)",
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  "notes": "The slide uses two distinct sensitivity tables to demonstrate that even under various pricing and adoption assumptions, the total addressable market is significantly smaller than Axon's market cap increase.",
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      "text": "Axon’s $1.8 billion market cap valuation seems excessive relative to the market opportunity, which we do not believe has significant growth given: 1) stagnant law enforcement officer growth, and 2) deflationary forces that will compress Axon’s ability to charge for cameras while absorbing rising storage costs.",
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      "text": "market opportunity: $356m",
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      "text": "VIEVU was acquired on May 4, 2018. We view the acquisition as a defensive move by Axon after it lost the NY Police Dept contract to VIEVU.(1) Pre-acquisition Axon's market cap was $2.2 billion and today it stands at $4.0 billion. We size the entire U.S. market opportunity to Axon for body cams at $356m (device + software), and of course, it's unreasonable to believe that Axon will capture the entire market. Axon's $1.8 billion market cap valuation seems excessive relative to the market opportunity, which we do not believe has significant growth given: 1) stagnant law enforcement officer growth, and 2) deflationary forces that will compress Axon's ability to charge for cameras while absorbing rising storage costs.(2)",
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      "text": "NYPD Completes Rollout of Body-worn Cameras To All Officers on Patrol — NY1.com",
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      "kind": "source-note",
      "text": "Note: Top row is Total law enforcement officers per 2017 FBI Crime Report. Lower row is 50% of law enforcement officers using body cams per Washington Post (2019) article which cites that 50% of agencies use cams. Price source",
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      "text": "1. \"NYPD Completes Rollout of Body-worn Cameras To All Officers on Patrol\", NY1.com\n2. Axon Body ASP fell from $255 to $249 from Q1'18 to Q1'19 while Total Software and Sensor segment gross margin fell from 57% to 53.2%, and Axon Cloud fell from 78.7% to 73.6% during the same period",
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      "text": "Sensitivity table for software revenue based on Evidence.com storage costs and officer adoption rates.",
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      "text": "Non-Sensical Valuation Expansion Post VIEVU Acquisition",
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