Taser (TASR) President says its guns are not the key to company’s future
Cheddar Archive
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9m 19s
Everyone’s heard of a Taser gun. And while that weapon is responsible for a majority of its revenue the company is banking on another business for the future. Cheddar’s Kristen Scholer sat down this week with Taser Internationals’ President Luke Larson to talk about the company’s plans. Taser’s stock has fallen 40% in the last year, but the stock has risen since reporting Q1 earnings that beat Wall Street estimates by 100%. However, while gross margins are nearly 70%, profits actually fell 50% because of large marketing and R&D spending. Larson says the company is going through a transition period, as it focuses on growing its body cameras and software as a service products. Taser’s Axon division and platform allow law enforcement to record and upload video to the cloud where it can be shared with other law enforcement teams, the local district attorney’s office or used internally. The cameras sell for $400–$600 each, but the real upside comes with the SAAS contracts that can cost anywhere from $300-$1200 annually. Based on Q1 results, booking for these services rose 128% year over year. And, so it seems the more law enforcement scrutiny the better for Taser.
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