In an interview Wednesday with CNBC’s Jim Cramer, axon enterprise CEO Rick Smith discussed the company’s recent acquisitions and explained how the company’s artificial intelligence technology can modernize emergency call lines.
“The reason we acquired not just one company in this space, but two companies, is because we have the latest technology stack to process 911 calls,” Smith said. “Our second acquisition can actually replace not only the AI layer, but the entire call center. It can be done from the cloud.”
Axon is known for manufacturing law enforcement equipment such as drones and Tasers. In October, the company officially completed its acquisition of Prepared, an AI-powered 911 communications platform. The company on Tuesday announced plans to acquire Carbine, another emergency communications platform.
Smith said AI tools can assist operators with real-time call translation and summarization, allowing drones to be dispatched instantly. For example, Smith said that in one large city over the weekend, Prepared’s technology reduced the number of emergency calls that operators had to respond to by 33% because AI was able to handle non-essential calls such as noise complaints.
Axon reported no revenue on Tuesday night as it dealt with new tariffs. By Wednesday’s close, the stock had fallen 9.43%. Smith indicated that Axon could cover the costs associated with the new role.
“Although we said the margins were not as high as they otherwise would have been, the adjusted EBITDA numbers were still in line with what we expected,” Smith told Cramer. “So we can absorb that and still hit our operating numbers.”
