01—Abstract
Summary
Summary of the 10-K filed March 30, 2022. Cited figures are marked; the original filing is the authoritative source.
Samsara Inc. reported fiscal year 2022 (ended January 29, 2022) revenue of $428.3 milliona, up 71% from $249.9 million in fiscal 2021, with approximately 98% of revenue from subscriptions to its Connected Operations Cloud.
The company remained unprofitable, posting a net loss of $355.0 millionb compared with $210.2 million a year earlier, and its accumulated deficit reached $921.0 million. Operating expenses rose to $657.7 million from $384.0 million, driven in part by $228.7 million of stock-based compensation, largely tied to RSU vesting upon the December 2021 IPO. Adjusted free cash flow was negative $179.7 million.
The company completed its IPO in December 2021, selling 35,000,000 Class A shares at $23.00c per share, with net proceeds of $768.8 million, and the underwriters' later option exercise added $77.9 million. Year-end cash and cash equivalents were $921.2 million. Management states that existing cash should be sufficient for at least the next 12 months, while noting it expects continued operating losses and negative operating cash flows.
Customer metrics are a key positive: more than 14,000 Core Customers, 806 customers above $100,000d in ARR, and a dollar-based net retention rate above 115%. Risk factors highlight a multi-class share structure that concentrates voting control with pre-IPO holders, a reliance on joint design manufacturers and silicon component supply, and ongoing COVID-19 and Russia-Ukraine conflict effects.
For investors, the central question is whether strong revenue growth and high retention can translate into profitability as the company scales its sales organization and absorbs large stock-based compensation charges. The filing also reports $1,055.5 million of remaining performance obligations, of which about $499.7 million is expected to be recognized over the next 12 months.
02—Key points
Key Highlights
- Revenue of $428.3 million for fiscal 2022, up 71% from $249.9 million in fiscal 2021.
- Net loss widened to $355.0 million from $210.2 million; accumulated deficit of $921.0 million.
- Stock-based compensation of $228.7 million, largely tied to RSU vesting upon the December 2021 IPO, was a major driver of higher operating expenses.
- IPO completed December 2021: 35,000,000 Class A shares sold at $23.00, with net proceeds of $768.8 million plus $77.9 million from the underwriters' option exercise.
- Year-end cash and cash equivalents of $921.2 million; adjusted free cash flow of negative $179.7 million.
- Over 14,000 Core Customers; 806 customers above $100,000 in ARR; dollar-based net retention rate above 115%.
- Class B common stock has 10 votes per share, so holders of Class B stock control a majority of voting power, limiting Class A shareholders' influence.
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2022, Samsara lost $0.83.
- Revenue$428.3M100.0%
- Cost of revenue−$124.5M29.1%
- Gross profit$303.9M70.9%
- Operating costs−$657.7M153.5%
- Operating income−$353.8M82.6%
- Interest, other & tax−$1.2M0.3%
- Net income−$355.0M82.9%
04—Financials
Financial Highlights
Figures from 10-KFY2022filed March 30, 2022Financial Statements
FY2022 against FY2021
| Line item | FY2022FY2021 | Change |
|---|---|---|
| Revenue | $428.35M$249.91M | +71.4% |
| Cost of Revenue | $124.48M$75.39M | +65.1% |
| Gross Profit | $303.86M$174.51M | +74.1% |
| R&D Expenses | $205.13M$99.74M | +105.7% |
| Operating Expenses | $657.71M$383.99M | +71.3% |
| Operating Income | -$353.85M-$209.48M | −68.9% |
| Net Income | -$355.02M-$210.21M | −68.9% |
| EPS (Basic) | $-1.28$-0.92 | −39.1% |
| EPS (Diluted) | $-1.28$-0.92 | −39.1% |
| Shares Outstanding (Basic) | 277.54M239.28M | +16.0% |
| Shares Outstanding (Diluted) | 277.54M239.28M | +16.0% |
05—Questions
Frequently Asked Questions
How fast did Samsara's revenue grow in fiscal 2022?
Revenue was $428.3 million for the fiscal year ended January 29, 2022, compared with $249.9 million the prior year, an increase of $178.4 million, or 71%. The filing attributes the growth primarily to an increase in customer count and increased purchases by existing customers.
Is Samsara profitable, and what are its cash needs?
No. The company reported a net loss of $355.0 million for fiscal 2022 and expects to continue incurring operating losses and negative operating cash flows. Cash used in operating activities was $171.5 million. Management believes existing cash and cash equivalents of $921.2 million will be sufficient for at least the next 12 months, but it may require additional capital.
What drove the increase in operating expenses?
Total operating expenses rose to $657.7 million from $384.0 million. The filing ties the largest increases to employee-related costs, including stock-based compensation that was mainly attributable to RSU vesting upon the IPO. Research and development rose $105.4 million, sales and marketing rose $88.9 million, and general and administrative rose $84.6 million.
How is voting control distributed among shareholders?
Class B common stock carries 10 votes per share, while Class A carries one vote per share and Class C has no voting rights. Holders of Class B stock collectively control a majority of the combined voting power, which allows them to control matters submitted to stockholders for approval. The filing notes this structure may limit Class A shareholders' influence and could affect index eligibility.
What are the main customer and business metrics investors should watch?
As of January 29, 2022, the company had more than 14,000 Core Customers and 806 customers representing over $100,000 in ARR, up from 452 a year earlier. The dollar-based net retention rate was over 115% for all customers and over 125% for customers above $100,000 in ARR. Remaining performance obligations were $1,055.5 million.
06—Continue