Samsara Reports Fourth Quarter and Full Fiscal Year 2024 Financial Results
•Q4 revenue of $276.3 million, representing 48% year-over-year growth, or 37% year-over-year adjusted revenue growth
•Ending ARR of $1.102 billion, representing 39% year-over-year growth
•1,848 customers with ARR over $100,000, up 49% year-over-year
SAN FRANCISCO, March 7, 2024 — Samsara Inc. (NYSE: IOT), the pioneer of the Connected Operations Cloud, reported financial results for the fourth quarter and fiscal year ended February 3, 2024, and released a shareholder letter accessible from the Samsara investor relations website at investors.samsara.com.
“Fiscal year 2024 was another year of durable and efficient growth. We ended the year with $1.1 billion of ARR, growing 39% year-over-year. While sustaining high growth at scale, we remain committed to operating efficiently and recorded our first year of positive adjusted free cash flow,” said Sanjit Biswas, CEO and co-founder of Samsara. “We continue to see a vast opportunity for our customers and are excited to deliver on our mission to increase the safety, efficiency, and sustainability of the operations that power the global economy.”
Fourth Quarter Fiscal Year 2024 Financial Highlights
(In millions, except percentage, percentage points, and per share data)
Q4 FY2024
Q4 FY2023
Y/Y Change
Annual Recurring Revenue (ARR)
$
1,102.0
$
795.1
39
%
Total revenue
$
276.3
$
186.6
48
%
Adjusted total revenue (1)
$
256.5
$
186.6
37
%
GAAP gross profit
$
207.3
$
135.0
$
72.3
GAAP gross margin
75
%
72
%
3
pts
Non-GAAP gross profit
$
210.7
$
137.5
$
73.2
Non-GAAP gross margin
76
%
74
%
3
pts
GAAP operating loss
$
(123.0)
$
(60.0)
$
(63.0)
GAAP operating margin
(45
%)
(32
%)
(13
pts)
Non-GAAP operating income (loss)
$
13.5
$
(14.7)
$
28.2
Non-GAAP operating margin
5
%
(8
%)
13
pts
GAAP net loss per share, basic and diluted
$
(0.21)
$
(0.10)
$
(0.11)
Non-GAAP net income (loss) per share, basic and diluted
$
0.04
$
(0.02)
$
0.06
Net cash used in operating activities
$
(41.9)
$
(4.4)
$
(37.5)
Net cash used in operating activities margin
(15
%)
(2
%)
(13
pts)
Adjusted free cash flow
$
16.0
$
(6.0)
$
22.0
Adjusted free cash flow margin
6
%
(3
%)
9
pts
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Fiscal Year 2024 Financial Highlights
(In millions, except percentage, percentage points, and per share data)
FY 2024
FY 2023
Y/Y Change
ARR
$
1,102.0
$
795.1
39
%
Total revenue
$
937.4
$
652.5
44
%
Adjusted total revenue (1)
$
917.7
$
652.5
41
%
GAAP gross profit
$
690.4
$
469.9
$
220.5
GAAP gross margin
74
%
72
%
2
pts
Non-GAAP gross profit
$
703.1
$
479.4
$
223.7
Non-GAAP gross margin
75
%
73
%
2
pts
GAAP operating loss
$
(323.3)
$
(259.5)
$
(63.8)
GAAP operating margin
(34
%)
(40
%)
6
pts
Non-GAAP operating income (loss)
$
1.3
$
(77.0)
$
78.3
Non-GAAP operating margin
0
%
(12
%)
12
pts
GAAP net loss per share, basic and diluted
$
(0.54)
$
(0.48)
$
(0.06)
Non-GAAP net income (loss) per share, basic and diluted
$
0.07
$
(0.13)
$
0.20
Net cash used in operating activities
$
(11.8)
$
(103.0)
$
91.2
Net cash used in operating activities margin
(1
%)
(16
%)
15
pts
Adjusted free cash flow
$
27.1
$
(110.0)
$
137.1
Adjusted free cash flow margin
3
%
(17
%)
20
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 2025, Samsara expects the following:
Q1 FY2025 Outlook
FY 2025 Outlook
Total revenue
$271 million – $273 million
$1,186 million – $1,196 million
Year/Year revenue growth
33% – 34%
27% – 28%
Year/Year adjusted revenue growth (1)
29% – 30%
Non-GAAP operating margin
(3%)
2%
Non-GAAP net income per share, diluted
$0.00 – $0.01
$0.11 – $0.13
__________
(1)Q4 FY24 was a 14-week fiscal quarter instead of a typical 13-week fiscal quarter. To enable comparability across periods, adjusted revenue and adjusted revenue growth rate are calculated by multiplying Q4 FY24 revenue by 13/14 to remove the impact of an additional week of revenue recognition in Q4 FY24.
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.
2
About Samsara
Samsara is the pioneer of the Connected Operations™ Cloud, which is a platform that enables organizations that depend on physical operations to harness Internet of Things (IoT) data to develop actionable insights and improve their operations. With tens of thousands of customers across North America and Europe, Samsara is a proud technology partner to the people who keep our global economy running, including the world’s leading organizations across construction, transportation and warehousing, field services, manufacturing, retail, logistics, and the public sector. The company’s mission is to increase the safety, efficiency, and sustainability of the operations that power the global economy.
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, strategies, 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 adjusted revenue, adjusted revenue growth rate, non-GAAP gross margin, non-GAAP operating margin, free cash flow 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 Russia-Ukraine conflict, geopolitical tensions involving China, the conflict in Israel and Gaza, the emergence of pandemics and epidemics, 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.
3
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, free cash flow and adjusted free cash flow do not reflect our future contractual commitments or the total increase or decrease of our cash balance for a given period. These and other 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.
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, and legal settlements are excluded because management believes that 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.
Adjusted Revenue / Adjusted Revenue Growth—Q4 FY24 was a 14-week fiscal quarter instead of a typical 13-week fiscal quarter. To enable comparability across periods, adjusted revenue and adjusted revenue growth rate are calculated by multiplying Q4 FY24 revenue by 13/14 to remove the impact of an additional week of revenue recognition in Q4 FY24.
Non-GAAP Gross Profit and Non-GAAP Gross Margin—We define non-GAAP gross profit as gross profit excluding the effect of 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 Income (Loss) from Operations and Non-GAAP Operating Margin—We define non-GAAP income (loss) from operations, or non-GAAP operating income (loss), as income (loss) from operations excluding the effect of stock-based compensation expense-related charges, including employer taxes on employee equity transactions, lease modification, impairment, and related charges, and legal settlements. Non-GAAP operating margin is defined as non-GAAP operating income (loss) as a percentage of total revenue. We use non-GAAP income (loss) from operations and non-GAAP operating margin in conjunction with traditional GAAP measures to evaluate our financial performance. We believe that non-GAAP income (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 Income (Loss) and Non-GAAP Net Income (Loss) per Share—We define non-GAAP net income (loss) as net loss excluding the effect of stock-based compensation expense-related charges, including employer taxes on employee equity transactions, lease modification, impairment, and related charges, and legal settlements. Our non-GAAP net income (loss) per share–basic is calculated by dividing non-GAAP net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Our non-GAAP net income per share–diluted is calculated by giving effect to all potentially dilutive common stock equivalents (stock options, restricted stock units, and shares issued under our 2021 Employee Stock Purchase Plan) to the extent they are dilutive. Non-GAAP net loss per share–diluted is the same as non-GAAP net loss per share–basic as the inclusion of all potential dilutive common stock equivalents would be antidilutive. We use non-GAAP net income (loss) and non-GAAP net income (loss) per share in conjunction with traditional GAAP measures to evaluate our financial performance. We believe that non-GAAP net income (loss) and non-GAAP net income (loss) per share provide our management and investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of operations.
4
Free Cash Flow and Free Cash Flow Margin—We define free cash flow as net cash used in operating activities reduced by cash used for purchases of property and equipment. Free cash flow margin is calculated as free cash flow as a percentage of total revenue. We believe that free cash flow and 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.
Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin—We define adjusted free cash flow as free cash flow excluding the cash impact of non-recurring capital expenditures associated with the build-out of our corporate office facilities in San Francisco, California, net of tenant allowances, and legal settlements. 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 by excluding the impact of non-recurring events.
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
5
SAMSARA INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
As of
February 3, 2024
January 28, 2023
Assets
Current assets:
Cash and cash equivalents
$
135,536
$
200,670
Short-term investments
412,126
489,192
Accounts receivable, net
161,829
122,867
Inventories
22,238
40,571
Connected device costs, current
104,008
82,046
Prepaid expenses and other current assets
51,221
22,189
Total current assets
886,958
957,535
Restricted cash
19,202
23,096
Long-term investments
276,166
113,101
Property and equipment, net
54,969
59,278
Operating lease right-of-use assets
81,974
112,624
Connected device costs, non-current
230,782
194,852
Deferred commissions
177,562
140,166
Other assets, non-current
7,232
16,356
Total assets
$
1,734,845
$
1,617,008
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable
$
46,281
$
30,144
Accrued expenses and other current liabilities
61,437
53,824
Accrued compensation and benefits
37,068
36,030
Deferred revenue, current
426,369
300,113
Operating lease liabilities, current
20,661
22,047
Total current liabilities
591,816
442,158
Deferred revenue, non-current
139,117
126,452
Operating lease liabilities, non-current
78,830
100,873
Other liabilities, non-current
9,935
9,506
Total liabilities
819,698
678,989
Commitments and contingencies
Stockholders’ equity:
Preferred stock
—
—
Class A common stock
9
7
Class B common stock
23
23
Class C common stock
—
—
Additional paid-in capital
2,368,597
2,107,013
Accumulated other comprehensive income (loss)
1,616
(652)
Accumulated deficit
(1,455,098)
(1,168,372)
Total stockholders’ equity
915,147
938,019
Total liabilities and stockholders’ equity
$
1,734,845
$
1,617,008
6
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
February 3, 2024
January 28, 2023
February 3, 2024
January 28, 2023
Revenue
$
276,274
$
186,577
$
937,385
$
652,545
Cost of revenue
69,024
51,528
247,032
182,656
Gross profit
207,250
135,049
690,353
469,889
Operating expenses
Research and development
73,426
54,603
258,581
187,405
Sales and marketing
133,006
96,751
486,649
370,098
General and administrative
55,155
43,687
195,043
170,785
Lease modification, impairment, and related charges
—
—
4,762
1,056
Legal settlement
68,665
—
68,665
—
Total operating expenses
330,252
195,041
1,013,700
729,344
Loss from operations
(123,002)
(59,992)
(323,347)
(259,455)
Interest income and other income (expense), net
11,471
8,526
39,964
15,620
Loss before provision for income taxes
(111,531)
(51,466)
(283,383)
(243,835)
Provision for income taxes
1,840
2,132
3,343
3,587
Net loss
$
(113,371)
$
(53,598)
$
(286,726)
$
(247,422)
Other comprehensive income (loss):
Foreign currency translation adjustments
562
93
838
509
Unrealized gains (losses) on investments, net of tax
2,493
239
1,430
(1,065)
Other comprehensive income (loss)
3,055
332
2,268
(556)
Comprehensive loss
$
(110,316)
$
(53,266)
$
(284,458)
$
(247,978)
Basic and diluted net loss per share:
Net loss per share attributable to common stockholders, basic and diluted
$
(0.21)
$
(0.10)
$
(0.54)
$
(0.48)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted
543,250,066
521,515,286
534,878,501
514,279,230
7
SAMSARA INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended
Fiscal Year Ended
February 3, 2024
January 28, 2023
February 3, 2024
January 28, 2023
Operating activities
Net loss
$
(113,371)
$
(53,598)
$
(286,726)
$
(247,422)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization
4,687
3,418
15,526
11,768
Stock-based compensation expense
64,687
43,983
237,082
177,473
Net accretion of discounts on investments
(4,161)
(3,326)
(16,888)
(4,368)
Lease modification, impairment, and related charges
—
—
4,762
1,056
Non-cash legal settlement
8,666
—
8,666
—
Other non-cash adjustments
2,525
2,110
4,571
6,488
Changes in operating assets and liabilities:
Accounts receivable, net
(50,244)
(34,167)
(46,420)
(47,464)
Inventories
4,865
3,930
18,332
(7,504)
Prepaid expenses and other current assets
(11,628)
(5,993)
(29,076)
(11,293)
Connected device costs
(20,896)
(24,093)
(57,893)
(83,086)
Deferred commissions
(16,099)
(11,954)
(37,396)
(22,409)
Other assets, non-current
242
(342)
509
(1,862)
Accounts payable and other liabilities
26,802
22,883
26,596
13,485
Deferred revenue
61,765
52,322
138,920
112,879
Operating lease right-of-use assets and liabilities, net
282
454
7,620
(762)
Net cash used in operating activities
(41,878)
(4,373)
(11,815)
(103,021)
Investing activities
Purchase of property and equipment
(2,095)
(6,003)
(10,953)
(33,240)
Purchases of investments
(199,145)
(329,885)
(740,546)
(685,615)
Proceeds from sales of investments
1,994
—
8,168
—
Proceeds from maturities and redemptions of investments
156,601
86,625
664,694
86,625
Other investing activities
—
(50)
(50)
382
Net cash used in investing activities
(42,645)
(249,313)
(78,687)
(631,848)
Financing activities
Proceeds from issuance of common stock in connection with equity compensation plans
9,767
7,179
23,202
18,047
Payment of offering costs
—
—
—
(2,532)
Payment of principal on finance leases
(789)
(447)
(2,205)
(1,303)
Net cash provided by financing activities
8,978
6,732
20,997
14,212
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash
501
584
477
113
Net decrease in cash, cash equivalents, and restricted cash
(75,044)
(246,370)
(69,028)
(720,544)
Cash, cash equivalents, and restricted cash, beginning of period
229,782
470,136
223,766
944,310
Cash, cash equivalents, and restricted cash, end of period
$
154,738
$
223,766
$
154,738
$
223,766
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
February 3, 2024
January 28, 2023
February 3, 2024
January 28, 2023
Total revenue and revenue growth rate reconciliation
Purchase of property and equipment for build-out of corporate office facilities, net of tenant allowances (7)
—
4,353
(10,179)
26,227
Legal settlement (8)
60,000
—
60,000
—
Adjusted free cash flow
$
16,027
$
(6,023)
$
27,053
$
(110,034)
Net cash used in operating activities margin
(15)
%
(2)
%
(1)
%
(16)
%
Free cash flow margin
(16)
%
(6)
%
(2)
%
(21)
%
Adjusted free cash flow margin
6
%
(3)
%
3
%
(17)
%
__________
(1)Q4 FY24 was a 14-week fiscal quarter instead of a typical 13-week fiscal quarter. To enable comparability across periods, adjusted revenue and adjusted revenue growth rate are calculated by multiplying Q4 FY24 revenue by 13/14 to remove the impact of an additional week of revenue recognition in Q4 FY24.
(2)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
February 3, 2024
January 28, 2023
February 3, 2024
January 28, 2023
Cost of revenue
$
3,418
$
2,423
$
12,725
$
9,466
Research and development
26,504
17,897
95,220
64,184
Sales and marketing
19,893
12,313
75,203
54,072
General and administrative
18,020
12,698
68,042
53,702
Total stock-based compensation expense-related charges (3)
$
67,835
$
45,331
$
251,190
$
181,424
__________
(3)Stock-based compensation expense-related charges included approximately $3.1 million and $14.1 million of employer taxes on employee equity transactions for the three months and fiscal year ended February 3, 2024, respectively, and 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.
(4)In January 2024, we settled non-recurring lease-related litigation and recognized a one-time operating expense charge of $68.7 million for the three months and fiscal year ended February 3, 2024. The settlement amount consisted of a $60.0 million cash payment and $8.7 million associated with a previously drawn letter of credit.
(5)There were no material income tax effects on our non-GAAP adjustments for all periods presented.
(6)For each period in which we had non-GAAP net income, diluted non-GAAP net income per share is calculated using weighted-average number of shares of common stock outstanding during the period, adjusted for dilutive potential shares that were assumed outstanding during the period.
(7)In April 2023, we settled a lease dispute which was primarily related to lease incentives associated with leasehold improvements in the form of a tenant allowance and received $11.3 million.
11
(8)In January 2024, we settled non-recurring lease-related litigation and made a one-time cash payment of $60.0 million.
