01—Abstract
Summary
Summary of the 10-K filed March 26, 2024. Cited figures are marked; the original filing is the authoritative source.
Samsara Inc. (NYSE: IOT) reported fiscal year 2024, a 53-week year ended February 3, 2024, with revenue of $937.4 milliona, up 44% from $652.5 million, or 41% on an adjusted basis that removes the extra fourth-quarter week.
Subscriptions to its Connected Operations Cloud made up approximately 98% of revenue in each of the past two fiscal years. The company remained unprofitable, with a net loss of $286.7 millionb versus $247.4 million in the prior year and an accumulated deficit of $1,455.1 million. Gross margin improved to 74% from 72%, and non-GAAP operating income reached $1.3 million, compared with a non-GAAP operating loss of $77.0 million the prior year.
Free cash flow was negative $22.8 millionc, a major improvement from negative $136.3 million. Growth was driven by more customers and more Applications sold to existing customers. Core Customers, defined as those with $10,000 or more in ARR, exceeded 16,000, and customers above $100,000 in ARR rose to 1,848 from 1,237.
ARR reached $1,101,981 thousandd, up from $795,053 thousand. Operating expenses grew to $1,013.7 million, and results include a $68.7 million legal settlement tied to lease-related litigation.
The company held $823.8 million in cash and investments, and management states that these resources are sufficient for at least the next 12 months. The filing also flags a pending lawsuit between Samsara and Motive, with Motive countersuing, and it describes significant risks from supplier concentration, dual-class voting control by the co-founders, and ongoing losses.
02—Key points
Key Highlights
- Revenue of $937.4 million for fiscal 2024, up 44% year over year (41% adjusted for the 53rd week).
- Net loss narrowed to $286.7 million from $247.4 million, while accumulated deficit reached $1,455.1 million.
- Gross margin rose to 74% from 72%; non-GAAP operating income was $1.3 million versus a $77.0 million loss a year earlier.
- Free cash flow was negative $22.8 million, compared with negative $136.3 million in the prior fiscal year.
- ARR reached $1,101,981 thousand, and customers above $100,000 ARR grew to 1,848 from 1,237.
- Cash, cash equivalents, and investments totaled $823.8 million, which management says supports operations for at least 12 months.
- Dual-class structure gives Class B holders a majority of voting power, and the company faces a $68.7 million legal settlement charge and a pending lawsuit with Motive.
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2024, Samsara lost $0.31.
- Revenue$937.4M100.0%
- Cost of revenue−$247.0M26.4%
- Gross profit$690.4M73.6%
- Operating costs−$1.01B108.1%
- Operating income−$323.3M34.5%
- Interest, other & tax$36.6M3.9%
- Net income−$286.7M30.6%
04—Financials
Financial Highlights
Figures from 10-KFY2024filed March 26, 2024Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $937.38M$652.54M | +43.7% |
| Cost of Revenue | $247.03M$182.66M | +35.2% |
| Gross Profit | $690.35M$469.89M | +46.9% |
| R&D Expenses | $258.58M$187.41M | +38.0% |
| Operating Expenses | $1.01B$729.34M | +39.0% |
| Operating Income | -$323.35M-$259.45M | −24.6% |
| Net Income | -$286.73M-$247.42M | −15.9% |
| EPS (Basic) | $-0.54$-0.48 | −12.5% |
| EPS (Diluted) | $-0.54$-0.48 | −12.5% |
| Shares Outstanding (Basic) | 534.88M514.28M | +4.0% |
| Shares Outstanding (Diluted) | 534.88M514.28M | +4.0% |
05—Questions
Frequently Asked Questions
How fast is Samsara's revenue growing, and what drove it?
Revenue grew 44% to $937.4 million in fiscal 2024, or 41% on an adjusted basis excluding the extra week in the fourth quarter. The filing attributes growth to more customers and to existing customers buying additional subscriptions and Applications.
Is Samsara profitable?
Not on a GAAP basis. The net loss was $286.7 million for fiscal 2024. On a non-GAAP basis, which excludes stock-based compensation, lease charges, and the legal settlement, the company reported a small operating income of $1.3 million.
How much cash does Samsara have, and does it need more capital?
The company had $823.8 million in cash, cash equivalents, and short-term and long-term investments as of February 3, 2024. Management believes this is sufficient for at least the next 12 months, though it notes that it may need additional capital if negative cash flows continue.
What are the main risks flagged in the filing?
Key risks include continued losses, dependence on a limited number of contract manufacturers and component suppliers, intense competition, cybersecurity exposure, and regulatory changes affecting ELD and privacy compliance. Founders hold majority voting control through Class B shares, and the company is in litigation with Motive.
06—Continue