01—Abstract
Summary
Summary of the 10-K filed March 21, 2023. Cited figures are marked; the original filing is the authoritative source.
Samsara Inc. reported fiscal year 2023 (ended January 28, 2023) revenue of $652.5 milliona, up 52% from $428.3 million in fiscal 2022, with subscriptions to its Connected Operations Cloud accounting for approximately 98% of revenue.
Net loss narrowed to $247.4 millionb from $355.0 million, though the company still reported a loss from operations of $259.5 million and an accumulated deficit of $1,168.4 million. Gross margin improved to 72% from 71%, and non-GAAP operating margin improved to (12)% from (27)%. Adjusted free cash flow was negative $110.0 million, versus negative $179.7 million in the prior year.
Growth indicators were strong: over 19,000 Core Customers, 1,237 customers representing over $100,000c in ARR (up from 806), and ARR of $795.1 million (up from $558.1 million). Remaining performance obligations were $1,450.8 million, with about $694.8 million expected to be recognized over the next 12 months. Operating expenses rose to $729.3 million, led by sales and marketing of $370.1 million.
Cash, cash equivalents, and investments totaled $803.0 milliond at year end, and management believes this is sufficient for at least the next 12 months. The filing also highlights risks investors should weigh: the company has incurred losses in every year since incorporation, relies on a limited number of joint design manufacturers and on AWS hosting, faces intense competition, and has a multi-class share structure in which Class B holders control a majority of voting power. Stock-based compensation was $177.5 million for the year, with $384.3 million of unrecognized expense remaining on outstanding RSUs.
02—Key points
Key Highlights
- Revenue grew to $652.5 million, up 52% from $428.3 million, driven by more customers and increased purchases by existing customers.
- Net loss narrowed to $247.4 million from $355.0 million; accumulated deficit reached $1,168.4 million.
- Gross margin rose to 72% from 71%, and non-GAAP operating margin improved to (12)% from (27)%.
- ARR reached $795.1 million, up from $558.1 million; customers above $100,000 in ARR increased to 1,237 from 806.
- Remaining performance obligations totaled $1,450.8 million, with approximately $694.8 million expected to be recognized over the next 12 months.
- Cash, cash equivalents, and short-term and long-term investments totaled $803.0 million at year end; adjusted free cash flow was negative $110.0 million.
- Class B common stock holders control a majority of voting power, and the company relies on a limited number of joint design manufacturers and on Amazon AWS for hosting.
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2023, Samsara lost $0.38.
- Revenue$652.5M100.0%
- Cost of revenue−$182.7M28.0%
- Gross profit$469.9M72.0%
- Operating costs−$729.3M111.8%
- Operating income−$259.5M39.8%
- Interest, other & tax$12.0M1.8%
- Net income−$247.4M37.9%
04—Financials
Financial Highlights
Figures from 10-KFY2023filed March 21, 2023Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $652.54M$428.35M | +52.3% |
| Cost of Revenue | $182.66M$124.48M | +46.7% |
| Gross Profit | $469.89M$303.86M | +54.6% |
| R&D Expenses | $187.41M$205.13M | −8.6% |
| Operating Expenses | $729.34M$657.71M | +10.9% |
| Operating Income | -$259.45M-$353.85M | +26.7% |
| Net Income | -$247.42M-$355.02M | +30.3% |
| EPS (Basic) | $-0.48$-1.28 | +62.5% |
| EPS (Diluted) | $-0.48$-1.28 | +62.5% |
| Shares Outstanding (Basic) | 514.28M277.54M | +85.3% |
| Shares Outstanding (Diluted) | 514.28M277.54M | +85.3% |
05—Questions
Frequently Asked Questions
How fast is Samsara growing and is it profitable?
Revenue grew 52% to $652.5 million in fiscal 2023. The company remains unprofitable, with a net loss of $247.4 million, though this improved from $355.0 million in fiscal 2022. Non-GAAP operating margin improved to (12)% from (27)%.
What drives Samsara's revenue?
About 98% of revenue comes from subscriptions to the Connected Operations Cloud, priced per asset and per application. Contracts typically run three to five years and are recognized ratably. Growth came from new customers and existing customers buying additional applications.
What are the main risks to investing in Samsara?
Key risks include a history of losses with expected continued operating expense growth, intense competition from vendors such as Motive-related and established telematics providers, dependence on a limited number of manufacturers for IoT devices, reliance on Amazon AWS hosting, and cybersecurity exposure. Class B shareholders hold a majority of voting power, which limits Class A holders' influence.
How much cash does Samsara have and does it need more capital?
The company had $803.0 million in cash, cash equivalents, and investments at year end. Management believes this is sufficient for working capital and capital expenditures for at least the next 12 months, but it expects continued operating losses and negative cash flows and may need additional financing.
Are there any notable legal or regulatory exposures?
The company is not presently party to litigation it believes would have a material adverse effect. However, it is subject to ELD and Hours of Service regulation, privacy laws including GDPR and CCPA, and anti-corruption laws. It also disclosed an ongoing lease-related lawsuit with a former landlord in San Francisco whose outcome is uncertain.
06—Continue