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  • Brett Schafer

Axon Enterprises. Not Just for Law Enforcement

This is going to be a short post on Axon’s new ambulance deal and why it is an example of the company’s developing moat. If you want a lengthier primer on why I love Axon as a long-term play, check out a post I did on the company two months ago here.

Axon Enterprises, the inventor of the Taser and other law enforcement technology, announced this week a partnership with an ambulance provider to connect its vehicles with in-car video technology.

Here is a long quote from the press release:

Axon (Nasdaq: AAXN), the global leader in connected public safety technologies, today announced that Cypress Creek Emergency Medical Services (EMS), a 9-1-1 EMS provider in North Harris County, Texas, will deploy 37 Axon Fleet 2 in-car video systems across the agency’s emergency service vehicles. Each in-car video system includes a forward-facing and rear-facing camera and is backed by the digital evidence management system, Axon Evidence ( This order was received in the fourth quarter of 2019 and will ship in multiple phases.”

There are two things I like about this deal. One is that Axon is expanding its addressable market from law enforcement to all public safety agencies. According to a 2011 report, there are over 21,000 local EMS agencies just in the U.S. That is a HUGE opportunity for them to go after.

The second and more important tidbit is the fact these video systems will be backed up on This is a clear example of Axon’s recurring revenue bundle at work, and how they separate themselves from the competition. Streamlining all of this technology into one subscription is a tremendous value proposition, and the main reason I think they are developing a strong economic moat.

To close out, here is one out of the money prediction: in 5-10 years there will be Salesforce-like specialists in many local safety departments to run Axon’s software. This will further develop Axon’s moat by creating an entire ecosystem dependent on their technology.

Disclosure: The author is not a financial advisor, and may have an interest in the companies discussed.

#Stocks #Investing #AxonEnterprises #Axonstock #Axon #Finance

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