01—Abstract
Summary
Summary of the 10-Q filed September 5, 2023. Cited figures are marked; the original filing is the authoritative source.
Samsara Inc. reported revenue of $219.3 milliona for the three months ended July 29, 2023, up from $153.5 million a year earlier, and $423.6 million for the six months, up from $296.2 million.
Net loss narrowed to $60.0 millionb for the quarter from $64.3 million, and to $127.8 million for the six months from $135.3 million. The company reported a gross profit of $160.4 million for the quarter, and loss from operations of $69.8 million, compared with $65.8 million a year earlier. Annual recurring revenue reached $930.0 million as of July 29, 2023, versus $662.8 million a year earlier, and customers above $100,000 in ARR rose to 1,515 from 989.
The filing states that the company achieved positive free cash flow beginning in the first quarter of fiscal year 2024, and reports six-month free cash flow of $12.7 millionc versus negative $102.7 million a year earlier. Cash, cash equivalents, and short-term and long-term investments totaled $834.5 million at quarter end. Remaining performance obligations were $1,636.7 million, of which approximately $791.7 million is expected to be recognized over the next 12 months.
Stock-based compensation expense for the six months was $112.6 milliond, and unrecognized stock-based compensation related to outstanding RSUs was $549.1 million. The filing also discloses an accumulated deficit of $1,296.2 million, a company that has incurred losses in all years since incorporation, and a dual-class share structure in which Class B holders control a majority of voting power. In August 2023, the company executed a sublease that will result in a $4.8 million impairment charge in the third quarter of fiscal 2024.
02—Key points
Key Highlights
- Revenue rose to $219.3 million in the quarter ended July 29, 2023, up from $153.5 million, a 43% year-over-year increase per the filing.
- Net loss narrowed to $60.0 million for the quarter, compared with $64.3 million in the prior-year quarter.
- Gross margin was 73% for the quarter, up from 71%, mainly due to operational efficiencies in infrastructure costs.
- Annual recurring revenue was $930.0 million, up from $662.8 million, and customers above $100,000 ARR increased to 1,515 from 989.
- Six-month operating cash flow was $18.2 million, and free cash flow was $12.7 million, compared with negative $102.7 million in the prior-year period.
- Remaining performance obligations totaled $1,636.7 million, with approximately $791.7 million expected to be recognized over the next 12 months.
- Cash, cash equivalents, and investments totaled $834.5 million, and the company stated it expects these to be sufficient for at least the next 12 months.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q2 FY2024, Samsara lost $0.27.
- Revenue$219.3M100.0%
- Cost of revenue−$58.9M26.8%
- Gross profit$160.4M73.2%
- Operating costs−$230.1M105.0%
- Operating income−$69.8M31.8%
- Interest, other & tax$9.8M4.5%
- Net income−$60.0M27.4%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2024filed September 5, 2023Financial Statements
Q2 FY2024 against Q2 FY2023
| Line item | Q2 FY2024Q2 FY2023 | Change |
|---|---|---|
| Revenue | $219.26M$153.52M | +42.8% |
| Cost of Revenue | $58.87M$44.26M | +33.0% |
| Gross Profit | $160.39M$109.27M | +46.8% |
| R&D Expenses | $63.97M$41.85M | +52.9% |
| Operating Expenses | $230.15M$175.05M | +31.5% |
| Operating Income | -$69.75M-$65.78M | −6.0% |
| Net Income | -$59.97M-$64.28M | +6.7% |
| EPS (Basic) | $-0.11$-0.13 | +15.4% |
| EPS (Diluted) | $-0.11$-0.13 | +15.4% |
| Shares Outstanding (Basic) | 531.75M511.76M | +3.9% |
| Shares Outstanding (Diluted) | 531.75M511.76M | +3.9% |
05—Questions
Frequently Asked Questions
How fast is Samsara's revenue growing?
Revenue was $219.3 million for the three months ended July 29, 2023, up from $153.5 million, and $423.6 million for the six months, up from $296.2 million. The filing describes both as year-over-year growth of 43%, primarily driven by an increase in customer count and increased purchases of subscriptions by existing customers.
Is Samsara profitable?
No, on a GAAP basis. The company reported a net loss of $60.0 million for the quarter and $127.8 million for the six months ended July 29, 2023. The filing also reports a non-GAAP net income of $3.9 million for the quarter, which excludes stock-based compensation and lease-related charges.
What is the company's cash position and does it need more capital?
As of July 29, 2023, principal liquidity sources totaled $834.5 million in cash, cash equivalents, and short-term and long-term investments. The company believes this is sufficient for at least the next 12 months, but states it may require additional capital, particularly if it generates negative cash flows in future quarters.
What is the impact of stock-based compensation on the company's results?
Stock-based compensation expense was $59.7 million for the quarter and $112.6 million for the six months ended July 29, 2023. Unrecognized compensation related to outstanding RSUs was $549.1 million as of July 29, 2023, which the filing says will adversely affect the company's ability to achieve profitability targets.
Who controls voting power at Samsara?
Holders of Class B common stock, which carries 10 votes per share, collectively control a majority of the combined voting power. The filing states this concentrated control will limit the ability of Class A holders to influence corporate matters.
06—Continue