Axon is up 18% today following yesterday’s earning report. I’ve owned Axon since 2017 when I noticed that just about every police department getting body cameras was going with them, and absolutely love this company.
They make the bulk of their money using a SAS subscription model, licensing their evidence.com body camera video storage to law enforcement agencies. Evidence.com has since become a must-have for law enforcement agencies, District Attorney Offices, and even public defender offices and private defense attorneys are buying subscriptions to easily receive and review body camera evidence.
The company is a cash cow. At this point, with the widespread adoption of Axon body cameras, the company has a ton of government contracts, and the government agencies need the evidence.com subscriptions to maintain their evidence. The competition in the body camera market sucks, and the costs to switch are enormous. Axon can pretty much charge whatever they want, and they have all these government contracts with places that aren’t going to be able to easily get rid of them. Their costs to operate this type of business are pretty small.
Those are my thoughts (especially as a Deputy DA who’s been using their services for years now). I’m curious what everybody else thinks about this company.
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