Hey, good afternoon, everyone. Thank you for joining our next session, which is with Axon's President, Josh Isner. Josh, thank you for joining us today.
Of course.
Really appreciate you spending the time. Maybe Josh, just to get things kind of kicked off here, you know, you've been at Axon for over a decade and have seen the company evolve from primarily a TASER business to something well beyond that, right? Maybe let's start there. Can you talk about the evolution of the company and how it's changed your focus and day-to-day over the past couple of years?
Sure. I arrived at Axon in 2009. We were a TASER manufacturer then, just starting to think about getting into the body camera space. You know, getting into the body camera space as a result of questions of how TASERs were being used in the field, led to, you know, market leadership position in that product line, which led to a bigger problem to solve, which was how do you manage all of this massive amount of data coming off of all these devices? How do you do it at a time where the cloud wasn't the obvious bet? We were one of the first companies or the first company to bring cloud to public safety.
We now manage about 40 times as much data as the Netflix library on Evidence.com, which is our video management platform, Microsoft Azure's biggest customer. From there, it's like a story, just one thing kinda leading to the next. It's like, Hey, we wanna understand how to deliver real-time capabilities based on all the video coming in. We got into real time. Certainly, you know, in-car video was a very obvious extension. Then in recent years, it's like now that we kind of own a lot of these police reporting and evidence-related workflows, and we manage all of the data that they rely on, it's like very down the middle of the fairway opening for us to become the market leader in AI and public safety, and we have.
We went from 0 to $750 million in sales last year in our AI product line. Bookings grew almost 40% last year. Revenue has grown 30% for a few straight years now, 25% for seven straight years, and just keep kind of investing in new categories and ones that we think are logical extensions. You know, drones and cameras have become married in some ways over the last five years in public safety. You've got all your camera infrastructure on the ground. Now you have your camera infrastructure in the air. That led us to become interested in counter-drone, which we thought was very aligned with our mission of protecting life and a platform play in public safety across, you know, U.S. state and local.
That business has really turned out to be a big winner over the last six or eight months specifically, but really over the last 18 months since we've owned Dedrone. We continue to invest in, you know, the biggest investment center now is 911 within Axon. We made two acquisitions there in the last year.
We think that's a very exciting position to be in, to have the most modern 911 tools because they relate so closely to all the downstream things that happen after the call comes in, whether it's getting a drone on site, whether it's allocating police officers and staff to the incident, whether it's reporting that takes place at the incident that can be pre-populated based on what comes off the 911 call, whether it's owning more of the communication traffic between dispatchers and RTCC personnel with the police officer, you know, through the body cam itself. A lot of opportunity there. Business is very diversified at this point across hardware and software, very diversified across markets. Our core market is U.S. state and local.
It's kind of all the cities, towns, states that you see in day-to-day life, all those police officers. We also have a federal business that's grown very nicely. We have an international business that in recent years has really started to explode. Our enterprise business, camera products and safety products outside of public safety to actual businesses, whether they're retailers, logistics, hospitals, et cetera. That's that market has recently showed some really exciting growth and opportunity to become maybe our biggest market of all long term. That's the summary.
No, a great overview, and at least I'm planning on touching a couple of those things that you just mentioned there.
Sure.
Maybe before diving into that, another kind of overarching question, and coming from the customer perception, right? I think Rick described customer reception at Axon Week in April as unlike anything he's ever seen before. Maybe just dive in, like, what was your own perception of the event this year? Probably more importantly, what was the most surprising area of focus and feedback from your customers as you kind of met them at the, at the conference itself?
Sure. I'd say, Axon Week this year, the biggest. You know, we book these things two years out. We plan for capacity of like 1,800 people. We had over 3,000 registrants. It's humbling that government customers, whether they're police chiefs, sheriffs, body camera program managers, trainers, whatever the case may be, they spend a week of their dedicated time with us, and that's very, very valuable. We learn a lot. We get a lot of feedback. We have the opportunity to showcase some of the new things we're doing. You know, I think the biggest takeaway where is, customers really are starting to see the synergy across all of these organic products and acquisitions. Like, it's all coming together in a really unified way to the customer. You know, we now manage all of their video workflows.
We have the opportunity to be, you know, the vendor driving DFR, which enhances those video workflows. That's drone as a first responder. You fly drones to any scene. You know, we talked about the 911 and the connectivity to those items. There's opportunity across our platform where the Fusus map, which shows you everything going on on land across your city, merges with the Dedrone map, which shows you everything going on in the air across your city.
We think this ecosystem is really coming into plain sight here, where customers look at our products as this very tight, organic collection of sensors, software, and AI that solve a lot of problems for them and a lot of growing problems for them, whether it's, you know, drones and they're seeing all the threats, you know, overseas with Ukraine and what's going on in Iran. You know, those are shining a light on the importance of counter-drone. We are really uniquely positioned to be the true operating system of public safety. We're excited about that opportunity, we take a lot of pride in the fact we don't let customers fail with our solutions, and all of that investment and focus and customer obsession is really paying off.
Maybe just focusing on one of those spokes of a part of the ecosystem is obviously you mentioned AI. I think you recently suggested that nearly all large domestic law enforcement agencies are now including AI in their purchases. I guess first part of that is can you just clarify where maybe the mid and smaller size agencies are-
in their journey of AI? Then the second part is, can you flesh out a bit, particularly relative to where the focus is from your customers in their AI journey? Like what parts of the portfolio are they.
Sure
looking for? Is it the whole suite? Maybe walk us through that.
Yeah. Of course. I guess to start with the small and mid-size customers, I think AI is one of those things like the larger the scale, the more of a payoff there is in terms of efficiency. I think with a lot of police products, you see the large agencies leading the way on adoption and then kinda mid-size and smaller agencies coming along behind it, and I think that's what's happening right now in AI adoption and public safety. Frankly, there are more workflow efficiency scale type problems to solve at these ultra-large police departments than a 10-person police department, you know, that doesn't have a high crime rate. We're very focused on making sure that, you know, across the largest geographies, our products are working the best.
We also, you know, within AI, I think we're now in the middle of this transition to year one and two of AI sales at Axon was about these point solutions that we developed internally that drove a lot of value for the customer. Product called DraftOne is an example of that. It essentially listens to the body camera recording and writes the first draft of the police report. It saves officers about 20%-30% of their time and gets them out in the field fighting crime instead of being, you know, an administrator writing reports.
Now what's happening is, of course, there's more and more of that, but there's also this opportunity emerging with a product called Axon Gravity, which we announced at Axon Week. That allows you to connect all of the police department systems together to give you maximum data visualization, maximum insights as to what's happening in your city real time, maximum reporting. For us, it's like selling these AI point solutions. That's what's driving a lot of the early interest. Then showing up and help customers actually deploy and deploy AIs or AI in ways that allows you to kind of start to disrupt or cancel other peripheral products or contracts.
We think, you know, with the amount of reporting that we can do just based on the dataset we have, combined with the AI functionality we brought to market, that over time, you just see some of these like one-off point solutions for whether it's, you know, giving you predictive analytics on crime or whether it's telling you where to station your police officers or how to allocate your resources. Like all of these things are now very straightforward use cases that AI can do very quickly for you. We want to not only sell the point solutions, but we wanna help the customer, you know, obtain the most possible value from these AI tools that we possibly can.
No, got it. Maybe this dovetails off of your earlier comment, around kind of customers seeing the full spectrum of offerings in the ecosystem and understanding it more holistically. As you think about AI penetration and what you're seeing across these large agencies, are you starting to see any attach associated with the other parts of the portfolio or even moving them across from maybe a lower tier bundle to the higher tier bundles? Well, how are you seeing that go-to-market motion kind of synergize with one another?
Yeah, of course. I think we're solving a lot of problems for our customers, and I think as we make these acquisitions or bring more organic products to market, certainly there's more willingness from their perspective to try more of what we're building and to adopt it. We've seen that, you know, I used the stat on our earnings call that we acquired a company named Fusus and a company named Dedrone. One was 18 months ago, one was two years ago, and we've already booked 50% more money on those products than we paid for the combined acquisitions. Part of our, you know, value proposition is we can take these very exciting early technologies and build them into our channel, build them into our product ecosystem, and just accelerate the time to value for the customer.
That's been, you know, a big part of thinking about, you know, how to continue to add additional value there.
No, got it. Since we're on the topic of AI, we've obviously seen the market very concerned about potential disruption around it.
you know, particularly for software companies. You know, what's your view on this? More importantly, how do you see Axon positioned to kind of weather any potential risk around this?
Sure, sure. Look, I think the thesis has merit. I just think it's nuanced. Like if you're a software-only company, that's the only thing you build, the software is easy to deploy and use and adopt, you're at a lot of risk right now because now you're gonna have more competition faster, and probably a lot more options for customization. When you're a business where most of your software functionality is driven by adoption of your hardware and all the data you're leveraging for all your workflows is coming off of that hardware and everything you do from a process perspective, whether it's hardware or software, is governed by very strict information security compliance practices, government, clearances and so forth.
By the way, you're selling the most AI of any company in your segment or in public safety, we view this as like the perfect environment for us to be able to go on offense. I think, you know, there's some commentary about software being disrupted, but I think, you know, everyone I'm sure is hearing ServiceNow's commentary over the last week or two. It's, like, very similar. It's like, hey, if you're ingrained, if you're adding value in these workflows, and it's resilient to the point where, you know, between all the things you're already integrated into and all the clearances and workflow management you have to provide, it's a lot harder to disrupt.
I look at Axon in that way, and even more so in that way because of the amount of hardware that we supply on the front end of that process.
No, got it. Maybe switching gears to drones. Obviously Axon, you mentioned Dedrone. You also have DFR, some other components of it as well on the video side too. You know, obviously nice exposure to this market. Interestingly enough, I think if I was talking to you two years ago on drone opportunity, you'd probably be telling me it's 2030, right? It seems like that has definitely been pulled forward. Maybe first, can we just talk about, like, why are we seeing this market move much faster than what we were envisioning two years ago?
Ultimately, I think the utility is there. I think, you know, situational awareness and real-time capabilities continue to be the name of the game for crime fighting right now, and drones play a big part in that. You know, you can get a drone to a scene a lot faster than you can get a human to a scene. You can get eyes on that scene faster as a result. When your humans arrive, they're far more prepared. Now things like, you know, being able to use drones for certain SWAT operations or even, you know, potentially attaching less lethal eventually to a drone. Like, all of these things are in play as a result of the proliferation of drones, it is also still early.
Like, you know, these are, there's still, you know, a very cash intensive business to build drones. You've got to be able to differentiate in some way, whether it's autonomy, whether it's a piloting experience, whether it's the flight time or the speed. All these things are still in the early innings. Like, you know, there's still a lot of work to do in that space, and that's why we've taken the partnership approach here on drone hardware. We want to see that play out. I think we bet on the right horse in Skydio, there's a lot more of the game to play. The thing we're sure of, though, is we can win in counter drone based on our investment in Dedrone five or six years ago and our acquisition of them two years ago.
Like, this platform is what public safety needs, is what the federal civilian market needs, to be able to be far more aware of what's going on in airspace and, using basic mitigation techniques, whether it's jamming or nets. I don't think we'll ever be the company that makes things explode in the sky. I think we'll partner, you know, with companies that do that if that's part of the requirement set for the customer. In a lot of times in state and local, it's much more about all the other things than interceptors, and I think we're well-positioned to be that platform for the long term. You know, everything else can be modular. What sensors you use will evolve over time. We don't have to make all of those. We just integrate them in our solution.
What drones you're looking to identify in the sky. Like, you know, of course, everybody, all the nefarious actors are aware of all the counter drone technology out there, so they're trying to figure out ways to surpass it with their drone products, and we've got to keep up with that. I think that's the thing that's very durable is the platform itself and then all the hardware you use around that platform. Certainly I think we're in a position to integrate, partner, build some of it ourselves, and make our customers very successful in that space.
Oh, got it. Maybe if we can just take a step back. I know you obviously just described kind of the Dedrone offering.
Maybe you can touch on the other areas of the portfolio.
Also take it one step further in terms of the timing of all these opportunities, right? It does seem like Dedrone is seeing a lot more momentum maybe than some of the other opportunities in the drone space that you guys are.
participating in.
Yeah
how you guys are participating and the timelines associated.
We've made a bet on indoor drones. That's going well. It's a small TAM and a small space, it wasn't a big bet and it solves a problem for tactical customers and so forth. Those are really the only drones we build ourselves. We do partner with Skydio, as I mentioned, for all the outdoor drone as a first responder operation. Counter drone is our major bet in the drone space.
Well, maybe tie in some of the videos aspects of it as well. Like how else are you participating in the DFR solution?
Sure thing.
with Skydio, what are you actually providing in that partnership?
Sure, sure. Ultimately, you know, as I mentioned, we have the platform for police video management. Like, that's what we do. That's what evidence.com is. Whenever you have these sensors gathering video data, part of it is, you know, how do you make the drone fly? Like, how do you pilot it? What's that experience? Part of it is, like, how do you stream the video to the police? How do you store the video long term? How do you run other analytics on that video? How do you put it a part of a case with all the on the ground video? That half of the equation is where we add value in the drone space.
We don't build the hardware, you know, for outdoor flight, but we do all the essentially evidence management in real time awareness that results from having drones in the air. I think again, you know, this market is still forming. It's moving fast. There's new entrants, there's new capabilities, there's new considerations from the customer. I think from our perspective, you know, taking the path we're taking is the right one until we see more evidence of the market kind of forming across, you know, one or two vendors.
Yep, got it. Then, just maybe two questions here on drones still. You know, as we think about some of the global conflicts that have happened over the past two years, obviously drone usage has been a major headline around those conflicts. Maybe one can you just talk to the influence of those conflicts in terms of how has that changed your strategic direction?
Sure
as you guys approach the market? Then the second one was, be around just given the general pull forward, at least I'm kind of characterizing it as, you know, has that led to any, like, constraints on your supply chain as you're starting to see maybe a little bit more demand than what you had?
Sure
perceived?
Yeah. In the drone space, I mean, I think, you know, for the last however long it's been, between Russia and Ukraine like that, we're seeing like drone technology playing out in real time and counter-drone technology playing out in real time. We do have several investments in Ukrainian companies that are on the front end of a lot of this drone and counter-drone technology. We're learning a lot from them, it's influencing our product roadmap and to some extent some of our partners' roadmaps, based on what they're learning there.
I'd say, you know, in more recent times, the idea that, you know, Iran threatened to attack all these Middle Eastern data centers with drones, that certainly opened the eyes of the U.S. data center providers, and it's presented a pretty immediate opportunity with Dedrone for, you know, to deploy those products as these data center build-outs continue to, you know, become more and more of a reality. You know, you never wanna see bad things happening that like shine a light on why you need products like this.
At the same time, like I think it was very obvious that something like this was coming, and I still think sadly it's pretty obvious that at some point someone's gonna use a drone to attack you know, somebody or something in the United States. It's a scary reality, but also one that, you know, we've been investing ahead of to be able to help there for a long time. Yeah, certainly these events are shining a light on the need for more capability in that space.
Just on the supply side?
Supply side, we've been very nearly paranoid for the last five years in terms of just all the supply issues around government sales. You know, the last couple years, the current administration has taken a far more binary route around what it means to be a drone company or counter-drone company and how that relates to the Chinese supply chain. We're seeing all this geopolitical risk pop up going into next year, you know, between China and Taiwan. That's really informed our inventory strategy, and we talked a little about this on our call. Like, you know, we invest a lot in inventory. Our products don't go obsolete, as crazy as that is to hear. You know, our TASERs that we launched in 2010 still sell in 2026.
Our body camera, our AB2, which was two body cameras ago, still sells to some customers. We use that as a strength. Like if we know our hardware isn't gonna go out obsolete, we can get far more aggressive in buffering inventory, that really accomplishes two things. It like hedges all the geopolitical supply chain risk all the regulatory kind of risk in, around supply chain, it also allows us to maximize our growth. You know, there have been quarters where, you know, beating consensus, beating guidance, we could have shipped more if we had it and seen even higher, you know, revenue growth. As our business is exploding across a few markets right now, we don't wanna be constrained by inventory. We're taking a very aggressive approach to that.
It's showing up in free cash flow, but this is a bet I'm positive on. It's not You know, I think if you asked folks like, "Would you rather us optimize for free cash flow and have less inventory given everything you just heard?" I think it's like more risky to do that than to just invest and build the inventory, and hopefully we'll look smart later as the constraints continue to show up and we've got plenty to ship to our customers. By the way, these customers, like these are life-saving products for customers, so we can't not ship them. We have to be in a position where we can supply these products to first responders, and so all that's weighing into the calculus right now.
Nope. Got it. Maybe shifting gears towards the enterprise opportunity. I think here you've announced at least over the last two years, I think two large beachhead.
customer wins.
One logistic, one telecom, if I remember correctly. You know, just given how different this is maybe from your traditional customer vertical, what's been the biggest go-to-market lesson that you've learned from these first few large deployments, and how are you applying that going forward?
Yeah. It's, you know, it took us 30 years to do an $100 million deal on government, and it took us two and a half years to do that in enterprise. The TAM is there, the product market fit is there, the interest is there, you're learning something new at the same time. When you're trying to aggregate, you know, 300,000 video streams across a global logistics, you know, provider's, you know, footprint, that's a little different than showing up at a city and doing it within a few sq mi of each other, right?
All of the learnings around like how do we deploy quickly, how do we make sure we have all the info sec stuff done on the front end, so when it comes time to like get things in the ground or, you know, get the product deployed, those aren't things that slow us down. There's some new learnings in enterprise, you know, for sure. We're even learning things like, hey, look, some companies compete with Microsoft that are in our pipeline, so they wanna host all the data on AWS. You have that same dynamic where other companies compete with AWS or Amazon and they're not willing to host their data on that infrastructure.
You really need to have two or three options across different infrastructure providers for our services and building those out, getting to, you know, parity across each of those environments. That's not a small undertaking given the amount of different products we've launched in software and AI. All that takes time, all it takes, it takes investment. You learn a lot as you go through it. I'd say it's a hell of a lot more fun to learn a lot across 9-figure types of deals than it is to, you know, to do this, you know, at no margins or negative margins, at small deployments. Like, you know, I think we're learning in the right types of opportunities.
Yeah. Fair point. Maybe just walk us through as we think about some of these large enterprise deals that you have won, first, you know, which part of the portfolio was the landing product that essentially got you kind of this initial engagement? More importantly, like, how should we think about the opportunity to expand from here? Like, what does year two and year three upsell potential look like?
Yeah
across these customers?
Yeah. You know, I think in enterprise there's really four different opportunities we have. We have this opportunity around Fusus, which is aggregating all of these CCTV streams across all these large companies, getting them on one user interface, and then being able to connect that directly to the police. Like, that's what Fusus is, and that is driving a lot of interest. One of the big value propositions there is you don't need all new CCTV infrastructure. You can use cameras that you already have. Even if they're older, we can still run AI on those cameras. We can still aggregate them and connect them to the police. That one is the one that's moving the fastest, driving the largest volume of deals.
You know, that's a little more services heavy 'cause we have to, we have to really go location by location to connect everything. There's plenty of upsell opportunity from there. I think that positions us to potentially be the complete software and AI platform for a security operations center in an enterprise, which is kind of like taking it one degree further than just doing video there. I think we'll continue to invest in that. Bucket two is more body camera oriented, here we have some of the biggest retailers in the world using our body cameras now. From there it starts with, like, a body camera sale and some software and storage, the upsell opportunity is very much along the same playbook that we had in government.
It's like, can we build a bunch of AI capabilities on the edge where they can take advantage of them in a storefront instead of a, you know, in a police setting? Things like whether it's inventory related, things, you know, more, things more focused on aggregating the results of a bunch of conversations with customers every day to give insights to store managers or leadership at these businesses. You could do a lot of interesting things connecting panic buttons to indoor drones and how that works as a security apparatus. A lot to do there, but a lot of early interest there and again, working with some of the biggest retailers in the world on that product line. The third one is counter-drone for infrastructure, we talked about already.
You know, data centers, warehouses, logistics facilities, a lot of high value inventory there. Making sure those are protected from any kind of nefarious drone activity. Then the last one is healthcare, and there it's nurses wearing body cameras. Nurses are assaulted every day in ERs by aggressive, you know, incoming patients and otherwise, and it's become a workplace safety thing and now we're seeing more and more nursing networks deploying body cameras, like, a condition of working in an ER or at a hospital. I'm not sure how far that one goes beyond that. I think, you know, there's some questions about how do you use some of these products in caregiving settings like in an operating room or otherwise.
Certainly we'll explore and the hospital security business without all that is a nice business to be in, and opens up some different opportunities there. That's kind of how I think about enterprise and, you know, I think more and more as we go, the first two categories will converge. The idea of users wearing body cameras and all the CCTV being aggregated into the same system, I think that makes a lot of sense. I think the long pole in the tent there is just, you know, getting these more and more companies, you know, feeling good about deploying body cameras outside of retail environments. Yeah, a lot of really encouraging signs.
Oh, interesting. Let me just pause there and take any questions from the room. If you have a question, please raise your hand. I see one. Wait for the mic, please. She's right there.
How do the cameras that are worn by the retailers to avoid, prevent shoplifting and the healthcare providers to prevent assaults, how are they different than the ones that the police officers wear?
Yeah, it's a great question. I think it comes down to wearability and form factor. It's more like, you know, these body cameras police wear, they're bigger, they're ruggedized, they're supposed to survive a 12-hour police shift under any conditions. They generally mount to a tactical vest or a police uniform. A lot of the guts of the camera are the same, but it's a much smaller form factor. You don't need a 12-hour battery life in a retail setting. You could take a lot of weight out of the camera. One of the things we did was we put a panic button on the side of the camera so if someone's under duress, you know, that functionality exists in a retail setting.
These are connected by Wi-Fi, you don't have to have all the cellular BOM within the camera anymore. You can use, you know, Wi-Fi instead. There's some, like, differences around the edges, but most of it comes down to wearability and being able to wear on a T-shirt or collared shirt as opposed to a police uniform. Just factors like that that just make it less intrusive to a retail worker.
Yeah. Any other questions? One in the back.
Just thinking about M&A and organic expansion, anywhere else in the product or product set that you'd really like to go into? Any areas you think would be really exciting to add that you don't have today?
Sure thing. Great question. We've made four major acquisitions in the last two years. We bought Fusus, we bought Dedrone, we bought Carbyne and Prepared, which the last two are both 911 products. I think this year is much more around, like, let's fortify everything. Let's make sure all of these businesses continue on the right trajectory that they're on, that we're investing enough to keep the growth going, that we're delighting customers with services and deployments. It's just a good year to kind of reset and build that muscle after all the buying activity of past years.
Now, into the future, certainly I think we're gonna be very opportunistic around things that make sense from video analytics, you know, to other opportunities to expand our footprint in enterprise to, you know, maybe some opportunities in public safety as they present themselves as well. For now it's been, you know, we've bought enough for the short term. We see plenty of avenues, you know, for explosive growth, and we gotta make sure we don't sell any of it short in the short term here.
Any other questions? Okay, I'll continue with one. Maybe switching gears, international opportunities.
Yeah.
You know, another area that you guys have been kind of hitting.
Yeah
a hot streak on. So maybe can you help them investors understand what's been driving the acceleration here? Probably more importantly, what's the durability of these? Like, are the wins that you guys are doing in the international markets more lumpy, large deal or large size deals or are you guys actually building a repeatable pipeline that's similar to what you've done in the domestic market as well?
Yeah, it's a good question. It's somewhere in between. I think whenever you have a market this big and international, the deals can be very, very large, there is the potential to have a lumpy business quarter to quarter. I don't think it's lumpy year to year. Like, I think there's plenty of volume of opportunity to capture in any given year to demonstrate a lot of growth around it. You know, from quarter to quarter, sure, there'll be, you know, one quarter we'll sign a nine-figure deal and the next quarter will be kind of a combination of a bunch of more foundational deals from some of our core international markets, you know, and that just kinda water finds its level throughout the course of the year.
What's driving a lot of the growth is the, I'd say the diversification of the product portfolio, where you just have more entry points. Like, You know, I should have, like, land and expand tattooed across my forehead. Like, that's how we think about our business. We win with one product, and then we go in there and try to win with the next one and the one after that. Once we've built the relationship, we've built some trust and equity. Now that we have more products to sell internationally, you know, that's really starting to present itself, where you could win on Dedrone to start, and then a year later you're looking at TASERs, body cameras, AI. You could win on Carbyne.
Carbyne has a large international footprint, some of those deals are our fastest moving international deals this year across our entire product portfolio. The acquisitions, the diversification of product, that's been a big one. We've also really upleveled our team over the last three or five years internationally. Our CRO now lives in Europe. He's, you know, he's in the fight with our international sales teams every day. He's doing a lot more hiring in region. We're seeing a lot more, like, with our own eyes, how things are going week to week in these regions by virtue of having, you know, some more leadership and built out teams over there.
It's really all combining to kind of what we envisioned five or 10 years ago, where international, I think in 2015, was booking like, I think it booked like $27 million that year or so forth. Last year was our first quarter or first year over $1 billion. Things have really scaled over the last 10 years in this business. I think $1 billion would be disappointing into the future here in international. We really feel like the wind's at our back and we've got a formula that's working and while there's certainly going to be some, you know, ups and downs and lumpiness as we go, when you sum it all up at the end of the year, I think it'll be pretty exciting.
Got it. Maybe in the last couple, the last 35 seconds here, you know, I think you started off this year suggesting you've never been more excited. Now that we're almost halfway through 2026, like, how would you characterize the way the year is tracking relative to your original expectations and across key offerings or end markets, and where have you been the most surprised by?
Yeah. My only regret up to this point is not repurposing our entire business into building GPUs. That feels like that would've been a better bet so far this year.
It's never too late.
No, look, like, the last two quarters we've had our best two quarters in company history back to back. The company's rolling. It stinks that the external validation hasn't been necessarily aligned with that relative to where, you know, we were trading at last year. Look, you know, this is a very interesting cycle we're in now, and our belief, as always, is we're gonna keep doing the things that build long-term value. We're gonna durably grow revenue over 30%. We're gonna deliver EBITDA margins that are expanded year-over-year. We're gonna deliver incredible bookings growth. Like, those are the things that we think if we focus on those quarter in and quarter out, all this other noise tends to take care of itself.
You know, when we've done that in our core business for so long and now we have even more upside given some of these acquisitions that are really moving fast, we're feeling good about a lot right now. Ultimately we, you know, we're a very competitive bunch. We wanna win in as many places as we possibly can, and that's what drives a lot of us, and that's what we're gonna keep trying to do. I think, you know, over the long term, our investors have a lot to be excited about.
Thank you, Josh. Thank you, everyone.
Thanks a lot.