01—Abstract
Summary
Summary of the 10-Q filed December 5, 2023. Cited figures are marked; the original filing is the authoritative source.
Samsara Inc. filed this Form 10-Q for the quarter ended October 28, 2023.
Revenue for the three months ended October 28, 2023 was $237.5 milliona, up from $169.8 million, and for the nine months was $661.1 million, up from $466.0 million, with subscription revenue making up the vast majority. Gross margin rose to 74% for the quarter from 72%. Net loss narrowed to $45.5 million for the quarter from $58.6 million a year earlier, and to $173.4 million for the nine months from $193.8 million.
Operating cash flow for the nine months was $30.1 millionb, compared with a use of $98.6 million a year earlier, and free cash flow was $21.2 million. The company reported that it achieved positive free cash flow beginning in the first quarter of fiscal 2024. Annual recurring revenue reached $1,002.7 million as of October 28, 2023, compared with $723.7 million a year earlier, and the number of customers over $100,000 in ARR rose to 1,663 from 1,113.
Remaining performance obligations were $1,763.6 millionc, of which about $846.6 million is expected to be recognized over the next 12 months. Cash, cash equivalents, and short- and long-term investments totaled $849.2 million. The company stated that it believes these resources are sufficient for at least the next 12 months, while noting it may need additional capital if it generates negative cash flows in future quarters.
Operating expenses rose across research and development, sales and marketing, and general and administrative, driven mainly by headcount and stock-based compensation. Stock-based compensation was $172.4 milliond for the nine months. The filing also disclosed a $4.8 million impairment tied to a sublease of office space, and Rule 10b5-1 trading plans adopted by several executives and directors, including CEO Sanjit Biswas and CTO John Bicket, each covering up to 5,000,000 Class A shares.
02—Key points
Key Highlights
- Revenue of $237.5 million for the quarter, up from $169.8 million, and $661.1 million for the nine months, up from $466.0 million.
- Net loss of $45.5 million for the quarter versus $58.6 million a year earlier; gross margin improved to 74% from 72%.
- Operating cash flow of $30.1 million for the nine months versus a use of $98.6 million in the prior-year period; free cash flow of $21.2 million.
- Annual recurring revenue of $1,002.7 million, up from $723.7 million, and customers above $100,000 ARR increased to 1,663 from 1,113.
- Remaining performance obligations of $1,763.6 million, with about $846.6 million expected to be recognized over the next 12 months.
- Cash, cash equivalents, and investments of $849.2 million; the company believes this is sufficient for at least the next 12 months.
- A $4.8 million impairment related to a sublease of office space, and Rule 10b5-1 trading plans adopted by several executives and directors.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q3 FY2024, Samsara lost $0.19.
- Revenue$237.5M100.0%
- Cost of revenue−$61.6M25.9%
- Gross profit$175.9M74.1%
- Operating costs−$230.7M97.1%
- Operating income−$54.8M23.1%
- Interest, other & tax$9.2M3.9%
- Net income−$45.5M19.2%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2024filed December 5, 2023Financial Statements
Q3 FY2024 against Q3 FY2023
| Line item | Q3 FY2024Q3 FY2023 | Change |
|---|---|---|
| Revenue | $237.53M$169.80M | +39.9% |
| Cost of Revenue | $61.59M$47.25M | +30.3% |
| Gross Profit | $175.95M$122.55M | +43.6% |
| R&D Expenses | $60.82M$49.97M | +21.7% |
| Operating Expenses | $230.72M$186.02M | +24.0% |
| Operating Income | -$54.77M-$63.48M | +13.7% |
| Net Income | -$45.53M-$58.55M | +22.2% |
| EPS (Basic) | $-0.08$-0.11 | +27.3% |
| EPS (Diluted) | $-0.08$-0.11 | +27.3% |
| Shares Outstanding (Basic) | 537.46M516.55M | +4.0% |
| Shares Outstanding (Diluted) | 537.46M516.55M | +4.0% |
05—Questions
Frequently Asked Questions
How did Samsara's revenue and losses trend in the quarter?
Revenue rose 40% to $237.5 million for the three months ended October 28, 2023, driven by customer count growth and more subscriptions from existing customers. The net loss narrowed to $45.5 million from $58.6 million a year earlier.
Is the company generating cash?
For the nine months ended October 28, 2023, net cash provided by operating activities was $30.1 million, compared with a use of $98.6 million in the prior-year period. Free cash flow was $21.2 million, and the company said it achieved positive free cash flow beginning in the first quarter of fiscal 2024.
What is the company's liquidity position?
Cash, cash equivalents, and short- and long-term investments totaled $849.2 million as of October 28, 2023. The company believes these resources will support working capital and capital expenditures for at least the next 12 months, but may require additional capital if future cash flows turn negative.
What are the main drivers of rising operating expenses?
Research and development, sales and marketing, and general and administrative expenses increased mainly due to employee-related costs from headcount growth and higher stock-based compensation. Stock-based compensation expense was $172.4 million for the nine months ended October 28, 2023.
What does the remaining performance obligations figure indicate?
Remaining performance obligations were $1,763.6 million as of October 28, 2023, including deferred revenue and non-cancelable contracted amounts. Of this, approximately $846.6 million is expected to be recognized as revenue over the next 12 months.
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