Samsara Reports Fourth Quarter and Full Fiscal Year 2023 Financial Results
•Q4 revenue of $186.6 million, representing 48% year-over-year growth
•Ending ARR of $795.1 million, representing 42% year-over-year growth
•1,237 customers with ARR over $100,000, up 53% year-over-year
SAN FRANCISCO, March 2, 2023 — Samsara Inc. (NYSE: IOT), the pioneer of the Connected Operations Cloud, reported financial results for the fourth quarter and fiscal year ended January 28, 2023, and released a shareholder letter accessible from the Samsara investor relations website at investors.samsara.com.
“It’s been an exciting year of delivering on our mission to increase the safety, efficiency, and sustainability of the operations that power the global economy. We ended fiscal year 2023 with $795 million of ARR, growing 42% year-over-year. While growing at scale, we remain committed to operating efficiently on our path to profitability,” said Sanjit Biswas, co-founder and CEO of Samsara. “We see a vast opportunity for our customers as they modernize their physical operations, which will have a profound impact on our global economy.”
Fourth Quarter Fiscal Year 2023 Financial Highlights
(In millions, except percentage, percentage points, and per share data)
Q4 FY2023
Q4 FY2022
Y/Y Change
Annual Recurring Revenue (ARR)
$
795.1
$
558.1
42
%
Total revenue
$
186.6
$
125.8
48
%
GAAP gross profit
$
135.0
$
87.0
$
48.0
GAAP gross margin
72
%
69
%
3
pts
Non-GAAP gross profit
$
137.5
$
93.4
$
44.1
Non-GAAP gross margin
74
%
74
%
—
pt
GAAP operating loss
$
(60.0)
$
(251.7)
$
191.7
GAAP operating margin
(32
%)
(200
%)
168
pts
Non-GAAP operating loss
$
(14.7)
$
(17.5)
$
2.8
Non-GAAP operating margin
(8
%)
(14
%)
6
pts
GAAP net loss per share
$
(0.10)
$
(0.68)
$
0.58
Non-GAAP net loss per share
$
(0.02)
$
(0.05)
$
0.03
Net cash used in operating activities
$
(4.4)
$
(48.3)
$
43.9
Adjusted free cash flow
$
(6.0)
$
(50.2)
$
44.2
Net cash used in operating activities margin
(2
%)
(38
%)
36
pts
Adjusted free cash flow margin
(3
%)
(40
%)
37
pts
1
Fiscal Year 2023 Financial Highlights
(In millions, except percentage, percentage points, and per share data)
FY 2023
FY 2022
Y/Y Change
Annual Recurring Revenue (ARR)
$
795.1
$
558.1
42
%
Total revenue
$
652.5
$
428.3
52
%
GAAP gross profit
$
469.9
$
303.9
$
166.0
GAAP gross margin
72
%
71
%
1
pt
Non-GAAP gross profit
$
479.4
$
310.2
$
169.2
Non-GAAP gross margin
73
%
72
%
1
pt
GAAP operating loss
$
(259.5)
$
(353.8)
$
94.3
GAAP operating margin
(40
%)
(83
%)
43
pts
Non-GAAP operating loss
$
(77.0)
$
(114.1)
$
37.1
Non-GAAP operating margin
(12
%)
(27
%)
15
pts
GAAP net loss per share
$
(0.48)
$
(1.28)
$
0.80
Non-GAAP net loss per share
$
(0.13)
$
(0.42)
$
0.29
Net cash used in operating activities
$
(103.0)
$
(171.5)
$
68.5
Adjusted free cash flow
$
(110.0)
$
(179.7)
$
69.7
Net cash used in operating activities margin
(16
%)
(40
%)
24
pts
Adjusted free cash flow margin
(17
%)
(42
%)
25
pts
We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with generally accepted accounting principles (“GAAP”). See the section titled “Use of Non-GAAP Financial Measures” for an explanation of non-GAAP financial measures and the tables in the section titled “Reconciliation Between GAAP and Non-GAAP Financial Measures” for a reconciliation of GAAP to non-GAAP financial measures.
Financial Outlook
Our guidance includes GAAP and non-GAAP financial measures. For the first quarter and fiscal year 2024, Samsara expects the following:
Q1 FY2024 Outlook
FY 2024 Outlook
Total revenue
$190 million – $192 million
$838 million – $848 million
Year/Year growth
33% – 35%
28% – 30%
Non-GAAP operating margin
(15%)
(7%)
Non-GAAP net loss per share
($0.05) – ($0.06)
($0.05) – ($0.07)
A reconciliation of non-GAAP guidance financial measures to corresponding GAAP guidance financial measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty and potential variability of expenses, such as stock-based compensation expense-related charges, that may be incurred in the future and cannot be reasonably determined or predicted at this time. It is important to note that these factors could be material to our results of operations computed in accordance with GAAP.
About Samsara
Samsara is the pioneer of the Connected Operations™ Cloud, which allows businesses that depend on physical operations to harness Internet of Things (IoT) data to develop actionable business insights and improve their operations. Samsara operates in North America and Europe and serves tens of thousands of customers across a wide range of industries including transportation, wholesale and retail trade, construction, field services, logistics, utilities and energy, government, healthcare and education, manufacturing, and food and beverage. The company’s mission is to increase the safety, efficiency, and sustainability of the operations that power the global economy.
2
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements may relate to, but are not limited to, expectations of future operating results or financial performance, the calculation of certain of our key financial and operating metrics, our market opportunity, industry developments and trends, customer demand for our solution, macroeconomic conditions and any expected benefits of our products, and our competitive position, as well as assumptions relating to the foregoing.
Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified and could cause actual results and events to differ. In some cases, you can identify forward-looking statements by terminology such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “goal,” “guidance,” “intend,” “may,” “objective,” “ongoing,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” or the negative of these terms or other comparable expressions that concern our expectations, strategy, plans, or intentions. You should not put undue reliance on any forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. Forward-looking statements are based on information available at the time those statements are made, including information furnished to us by third parties that we have not independently verified, and/or management’s good faith beliefs and assumptions as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this press release may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements.
These risks and uncertainties include our ability to retain customers and expand the Applications used by our customers, our ability to attract new customers, our future financial performance, including trends in revenue and annual recurring revenue, net retention rate, costs of revenue, gross profit or gross margin, operating expenses, customer counts, non-GAAP financial measures (such as non-GAAP gross margin, non-GAAP operating margin, and adjusted free cash flow margin), our ability to achieve or maintain profitability, the demand for our products or for solutions for connected operations in general, the impact of the ongoing COVID-19 pandemic, the Russia-Ukraine conflict, geopolitical tensions involving China, and macroeconomic conditions globally on our and our customers’, partners’ and suppliers’ operations and future financial performance, possible harm caused by silicon component shortages and other supply chain constraints, the length of our sales cycles, possible harm caused by a security breach or other incident affecting our or our customers’ assets or data, our ability to compete successfully in competitive markets, our ability to respond to rapid technological changes, and our ability to continue to innovate and develop new Applications. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in our filings and reports that we may file from time to time with the Securities and Exchange Commission, including our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.
Except as required by law, we do not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.
Use of Non-GAAP Financial Measures
This document includes certain non-GAAP financial measures. Reconciliations of non-GAAP financial measures to our financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data.
Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as substitutes for financial information presented under GAAP. There are a number of limitations related to the use of non-GAAP financial measures versus comparable financial measures determined under GAAP. For example, other companies in our industry may calculate these non-GAAP financial measures differently or may use other measures to evaluate their performance. In addition, adjusted free cash flow does not reflect our future contractual commitments or the total increase or decrease of our cash balance for a given period. All of these limitations could reduce the usefulness of these non-GAAP financial measures as analytical tools. Investors are encouraged to review the related GAAP financial measures and the reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures and to not rely on any single financial measure to evaluate our business.
We present these non-GAAP financial measures to assist investors in seeing Samsara’s operating results through the eyes of management, and because we believe that these measures provide an additional tool for investors to evaluate our business.
3
Expenses Excluded from Non-GAAP Financial Measures—Stock-based compensation expense is excluded primarily because it is a non-cash expense that management believes is not reflective of our ongoing operational performance. Employer taxes on employee equity transactions, which is a cash expense, is excluded because such taxes are tied to the timing and size of the vesting of the underlying equity awards and the price of our common stock at the time of vesting, which may vary from period to period independent of the operating performance of our business. Lease modification, impairment, and related charges are excluded because such charges are not reflective of our ongoing operational performance.
Operating Metrics and Non-GAAP Financial Measures
Annual Recurring Revenue—We define ARR as the annualized value of subscription contracts that have commenced revenue recognition as of the measurement date.
Non-GAAP Gross Profit and Non-GAAP Gross Margin—We define non-GAAP gross profit as gross profit plus stock-based compensation expense-related charges, including employer taxes on employee equity transactions, included in cost of revenue. Non-GAAP gross margin is defined as non-GAAP gross profit as a percentage of total revenue. We use non-GAAP gross profit and non-GAAP gross margin in conjunction with traditional GAAP measures to evaluate our financial performance. We believe that non-GAAP gross profit and non-GAAP gross margin provide our management and investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of operations.
Non-GAAP Loss from Operations and Non-GAAP Operating Margin—We define non-GAAP loss from operations, or non-GAAP operating loss, as loss from operations excluding the effect of stock-based compensation expense-related charges, including employer taxes on employee equity transactions, and lease modification, impairment, and related charges. Non-GAAP operating margin is defined as non-GAAP operating loss as a percentage of total revenue. We use non-GAAP loss from operations and non-GAAP operating margin in conjunction with traditional GAAP measures to evaluate our financial performance. We believe that non-GAAP loss from operations and non-GAAP operating margin provide our management and investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of operations.
Non-GAAP Net Loss and Non-GAAP Net Loss per Share—We define non-GAAP net loss and non-GAAP net loss per share as net loss and net loss per share excluding the effect of stock-based compensation expense-related charges, including employer taxes on employee equity transactions, and lease modification, impairment, and related charges. We use non-GAAP net loss and non-GAAP net loss per share in conjunction with traditional GAAP measures to evaluate our financial performance. We believe that non-GAAP net loss and non-GAAP net loss per share provide our management and investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of operations.
Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin—We define adjusted free cash flow as net cash used in operating activities reduced by cash used for purchases of property and equipment, plus non-recurring capital expenditures associated with the build-out of our corporate office facilities in San Francisco, net of tenant allowances. Adjusted free cash flow margin is calculated as adjusted free cash flow as a percentage of total revenue. We believe that adjusted free cash flow and adjusted free cash flow margin, even if negative, are useful in evaluating liquidity and provide information to management and investors about our ability to fund future operating needs and strategic initiatives.
Webcast Information and Shareholder Letter
An investor presentation and accompanying shareholder letter is accessible from the Samsara investor relations website at https://investors.samsara.com/. Samsara will host a live webcast to discuss the results at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) today. The live webcast may be accessed at https://investors.samsara.com/. Following the webcast, a replay will be accessible from the same website.
Investor Contact:
Mike Chang
ir@samsara.com
Media Contact:
Adam Simons
media@samsara.com
4
SAMSARA INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
As of
January 28, 2023
January 29, 2022
Assets
Current assets:
Cash and cash equivalents
$
200,670
$
921,218
Short-term investments
489,192
—
Accounts receivable, net
122,867
81,987
Inventories
40,571
33,067
Connected device costs, current
82,046
52,519
Prepaid expenses and other current assets
22,189
11,376
Total current assets
957,535
1,100,167
Restricted cash
23,096
23,092
Long-term investments
113,101
—
Property and equipment, net
59,278
36,772
Operating lease right-of-use assets
112,624
134,427
Connected device costs, non-current
194,852
141,292
Deferred commissions
140,166
117,757
Other assets, non-current
16,356
14,422
Total assets
$
1,617,008
$
1,567,929
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable
$
30,144
$
54,705
Accrued expenses and other current liabilities
53,824
31,835
Accrued compensation and benefits
36,030
27,107
Deferred revenue, current
300,113
203,185
Operating lease liabilities, current
22,047
21,447
Total current liabilities
442,158
338,279
Deferred revenue, non-current
126,452
110,501
Operating lease liabilities, non-current
100,873
123,513
Other liabilities, non-current
9,506
6,689
Total liabilities
678,989
578,982
Commitments and contingencies
Stockholders’ equity:
Preferred stock
—
—
Class A common stock
7
6
Class B common stock
23
23
Class C common stock
—
—
Additional paid-in capital
2,107,013
1,909,964
Accumulated other comprehensive loss
(652)
(96)
Accumulated deficit
(1,168,372)
(920,950)
Total stockholders’ equity
938,019
988,947
Total liabilities and stockholders’ equity
$
1,617,008
$
1,567,929
5
SAMSARA INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended
Fiscal Year Ended
January 28, 2023
January 29, 2022
January 28, 2023
January 29, 2022
Revenue
$
186,577
$
125,752
$
652,545
$
428,345
Cost of revenue
51,528
38,706
182,656
124,484
Gross profit
135,049
87,046
469,889
303,861
Operating expenses
Research and development
54,603
126,457
187,405
205,125
Sales and marketing
96,751
124,640
370,098
291,209
General and administrative
43,687
87,686
170,785
159,843
Lease modification, impairment, and related charges
—
—
1,056
1,532
Total operating expenses
195,041
338,783
729,344
657,709
Loss from operations
(59,992)
(251,737)
(259,455)
(353,848)
Interest income and other income (expense), net
8,526
(243)
15,620
(2)
Loss before provision for income taxes
(51,466)
(251,980)
(243,835)
(353,850)
Provision for income taxes
2,132
787
3,587
1,174
Net loss
$
(53,598)
$
(252,767)
$
(247,422)
$
(355,024)
Other comprehensive income (loss), net of taxes:
Change in foreign currency translation adjustment
93
(142)
509
(96)
Change in unrealized gains (losses) on investments
239
—
(1,065)
—
Other comprehensive income (loss)
332
(142)
(556)
(96)
Comprehensive loss
$
(53,266)
$
(252,909)
$
(247,978)
$
(355,120)
Basic and diluted net loss per share:
Net loss per share attributable to common stockholders, basic and diluted
$
(0.10)
$
(0.68)
$
(0.48)
$
(1.28)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted
521,515,286
371,784,585
514,279,230
277,543,471
6
SAMSARA INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended
Fiscal Year Ended
January 28, 2023
January 29, 2022
January 28, 2023
January 29, 2022
Operating activities
Net loss
$
(53,598)
$
(252,767)
$
(247,422)
$
(355,024)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization
3,418
2,171
11,768
10,388
Stock-based compensation expense
43,983
224,735
177,473
228,723
Lease modification, impairment, and related charges
—
—
1,056
1,532
Other non-cash adjustments
(1,216)
1,202
2,120
6,630
Changes in operating assets and liabilities:
Accounts receivable, net
(34,167)
(23,364)
(47,464)
(47,049)
Inventories
3,930
(10,758)
(7,504)
(19,393)
Prepaid expenses and other current assets
(5,993)
393
(11,293)
(1,426)
Connected device costs
(24,093)
(23,860)
(83,086)
(86,293)
Deferred commissions
(11,954)
(16,051)
(22,409)
(30,821)
Other assets, non-current
(342)
(11,388)
(1,862)
(12,327)
Accounts payable and other liabilities
22,883
34,458
13,485
69,926
Deferred revenue
52,322
27,176
112,879
64,001
Operating lease liabilities, net
454
(252)
(762)
(348)
Net cash used in operating activities
(4,373)
(48,305)
(103,021)
(171,481)
Investing activities
Purchase of property and equipment
(6,003)
(9,400)
(33,240)
(19,353)
Purchases of investments
(329,885)
—
(685,615)
—
Proceeds from maturities of investments
86,625
—
86,625
—
Investing other
(50)
(100)
382
(682)
Net cash used in investing activities
(249,313)
(9,500)
(631,848)
(20,035)
Financing activities
Proceeds from initial public offering, net of underwriting discounts and commissions
—
846,682
—
846,682
Payment of taxes related to net share settlement of equity awards
—
(141,747)
—
(141,747)
Proceeds from issuance of common stock in connection with equity compensation plans
7,179
245
18,047
1,210
Proceeds from early exercise of stock options
—
2
—
154
Repurchase of restricted common stock
—
—
—
(5)
Payment of offering costs
—
(1,945)
(2,532)
(4,105)
Payment of principal on finance leases
(447)
(209)
(1,303)
(545)
Net cash provided by financing activities
6,732
703,028
14,212
701,644
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash
584
(173)
113
(127)
Net increase (decrease) in cash, cash equivalents, and restricted cash
(246,370)
645,050
(720,544)
510,001
Cash, cash equivalents, and restricted cash, beginning of period
470,136
299,260
944,310
434,309
Cash, cash equivalents, and restricted cash, end of period
$
223,766
$
944,310
$
223,766
$
944,310
7
SAMSARA INC.
RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL MEASURES
(In thousands, except percentages and per share data)
Lease modification, impairment, and related charges
—
—
1,056
1,532
Non-GAAP loss from operations
$
(14,661)
$
(17,487)
$
(76,975)
$
(114,078)
GAAP operating margin
(32)
%
(200)
%
(40)
%
(83)
%
Non-GAAP operating margin
(8)
%
(14)
%
(12)
%
(27)
%
__________
(1)Stock-based compensation expense-related charges were included in the following line items of our condensed consolidated statements of operations and comprehensive loss as follows:
Three Months Ended
Fiscal Year Ended
January 28, 2023
January 29, 2022
January 28, 2023
January 29, 2022
Cost of revenue
$
2,423
$
6,334
$
9,466
$
6,344
Research and development
17,897
102,299
64,184
102,849
Sales and marketing
12,313
62,167
54,072
62,548
General and administrative
12,698
63,450
53,702
66,497
Total stock-based compensation expense-related charges (2)
$
45,331
$
234,250
$
181,424
$
238,238
__________
(2)Stock-based compensation expense-related charges included approximately $1.3 million and $4.0 million of employer taxes on employee equity transactions for the three months and fiscal year ended January 28, 2023, respectively, and $9.5 million of employer taxes on employee equity transactions for the three months and fiscal year ended January 29, 2022.
Three Months Ended
Fiscal Year Ended
January 28, 2023
January 29, 2022
January 28, 2023
January 29, 2022
GAAP net loss
$
(53,598)
$
(252,767)
$
(247,422)
$
(355,024)
Add:
Stock-based compensation expense-related charges, net of applicable taxes
45,331
234,250
181,424
238,238
Lease modification, impairment, and related charges, net of applicable taxes
—
—
1,056
1,532
Non-GAAP net loss
$
(8,267)
$
(18,517)
$
(64,942)
$
(115,254)
8
SAMSARA INC.
RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL MEASURES
(In thousands, except percentages and per share data)
(Unaudited)
Three Months Ended
Fiscal Year Ended
January 28, 2023
January 29, 2022
January 28, 2023
January 29, 2022
Net loss per share, basic and diluted, reconciliation
GAAP net loss per share attributable to common stockholders, basic and diluted
$
(0.10)
$
(0.68)
$
(0.48)
$
(1.28)
Total impact on net loss per share, basic and diluted, from non-GAAP adjustments
0.08
0.63
0.35
0.86
Non-GAAP net loss per share attributable to common stockholders, basic and diluted
