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Axon IR Axon Reports Record Bookings of $ 0.5B in Q3 , Up 70 % YTD ; Q3 Revenue up 39 % ; Raises 2022 Revenue Outlook to $ 1 Billion SCOTTSDALE , Ariz . , Nov. 15 , 2021 / PRNewswire / -- Dear Shareholders , Throughout the year , as evidenced by our strong results and strengthening outlook , we have continued to execute on our stated objectives to : • Grow our core through innovation in our key products , • Scale new products by developing solutions to real - world challenges , • Unlock new areas for growth by extending our reach to new markets , and • Drive operating efficiencies across our manufacturing , hiring and support systems . The third quarter was no exception . Our teams delivered strong performance across the board , driving revenue growth of 39 % to $ 232 million , and GAAP net income of $ 49 million , which supported Adjusted EBITDA of $ 51 million , representing a 22 % margin . Net income was favorably impacted by a $ 51 million tax benefit . Our SaaS performance was equally strong , with annual recurring revenue growing 42 % to $ 289 million , supported by deployments in the federal market and international regions . Record Q3 bookings of $ 488 million were up 54 % , driven by strength in software and sensors , bringing year - to - date bookings to nearly $ 1.2 billion , above full year 2020 levels . Axon's expanding growth story As we look ahead to our long - range plans , we are providing an update on our growth story , raising our estimated total addressable market , or TAM , from $ 27 billion to $ 52 billion , and sharing our analysis on penetration by region and product category . TAM growing through investments in products , markets and regions : Our investments for scale are expanding our total addressable market along three axes - introducing new products , selling into new customer market segments , and adding sales channels to new geographic regions . Our updated estimate points to a $ 52 billion total addressable market ( 1 ) . Two of our newest drivers of TAM growth include our investments in consumer safety and justice software . Consumer : We see opportunity to create more effective and reliable personal protection for private individuals , and , thus , our consumer business is a growing area of investment . When we say TASER is less than 25 % penetrated in the US and even lower globally , that statistic refers to professional users and does not include individual consumers . Our current market penetration in consumer is virtually nil . Historically , our law enforcement and consumer devices have relied upon separate platforms . To drive greater efficiency and reliability , our next generation consumer and law enforcement devices will leverage much of the same core technology . We also plan to offer personal safety solutions , including a consumer - focused smartphone app , and expect to share more details over the coming quarters . Justice : Axon's expansion into justice software is a natural evolution of our market - leading cloud - hosted digital evidence management software category . Specifically , we are developing software to help prosecutors and defense attorneys streamline the discovery process . Not only is our goal to save attorneys time , but also to shorten the time people are jailed awaiting trial . We are enthusiastic about the opportunities in this category and will be sharing more in the coming months around product launch and customers . TAM penetration analysis showcases runway for growth : We see ourselves as less than 2 % penetrated across our addressable markets , based on an analysis of potentialser penetration in devices and potential dollar penetration in software . The user penetration for our cloud - connected devices and dollar penetration in software showcases our opportunity for growth across products and regions . Importantly , our TAM penetration analysis ( 2 ) excludes select market segments from certain geographies where we are not selling today , highlighting the opportunity to continue to expand our TAM and add incremental growth drivers . ( 1 ) Our TAM methodology estimates annual potential spending on Axon products by considering total possible users in regions and markets we are selling into , based on publicly available user data by job category from U.S. Bureau of Labor Statistics and other public sources , or Axon intends to sell into in the near term , as well as current annual subscription pricing for existing products and estimated annual pricing for future products , based on an analysis of market - supported pricing . Note that with Axon's integrated bundles , under ASC 606 , product ( hardware ) revenue is recognized upon shipment to the customer and service ( software ) revenue is recognized over time as a time - based obligation to the customer . The TAM , as presented , shows potential annual subscription spending , which will equal revenue recognized over the life of a multi - year contract , but spending and revenue do not always match up in the same year due to the timing difference between subscription - based payments and revenue recognition . ( 2 ) Our TAM penetration methodology factors in Axon's internal estimates for unit sales to date and software revenue to date , as well as potential users based on publicly available data . Commonwealth includes UK , Canada , Australia and New Zealand . Europe excludes UK . Asia excludes China and Russia . TASER , body camera and Axon Fleet percentages represent user penetration , while Axon Cloud SaaS represents dollar penetration . Consumer TASER not included within TASER TAM penetration . Consumer TASER penetration is less than 1 % in the US . Axon Cloud SaaS includes Digital Evidence Management , Productivity and Real - Time Operations . Axon Air & AR / VR are not shown given estimated TAM penetrations of about 0 % . Select Q3 highlights • Driving customer engagement and excitement : • Accelerate user conference returns to in - person : Axon hosted nearly 1,500 attendees at its sixth annual user conference in Phoenix during the first week of November , drawing many of the best and brightest public safety leaders from around the globe . One of the world's largest public safety technology conferences , Axon Accelerate provides a forum to inform and empower our customers , and this year we discussed both the opportunities and challenges presented by today's rapidly changing world . We were pleased to be joined by representatives and exhibitors from our rapidly growing ecosystem of technology partners , including Cellebrite , Skydio and Cradlepoint . Whether it's AI , VR or 5G , when it comes to transformative technologies , we're always discovering and investing in ways to help our customers work smarter • Voyager Roadshow success : Axon is hosting a customer - focused roadshow from June through December , which started with the Los Angeles Police Department . Three custom Axon Voyager trailers will visit the 48 contiguous United States demonstrations of our latest technology . Each Axon Voyager trailer comes