01—Abstract
Summary
Summary of the 10-Q filed June 11, 2024. Cited figures are marked; the original filing is the authoritative source.
Samsara Inc. reported revenue of $280.7 milliona for the three months ended May 4, 2024, up 37% from $204.3 million in the prior-year quarter, with subscription revenue of $276.2 million.
Gross margin rose to 76% from 72%. The company narrowed its GAAP net loss to $56.3 millionb from $67.9 million and its loss from operations to $66.0 million from $75.8 million. On a non-GAAP basis, the company posted income from operations of $6.2 million, compared with a loss of $19.0 million a year earlier, and a non-GAAP operating margin of 2%.
Management attributed the revenue growth primarily to higher customer count and increased purchases of subscriptions, including additional Applications, by existing customers. Key operating indicators also improved. Annual recurring revenue (ARR) was $1,175.7 millionc, up from $856.2 million, and customers with more than $100,000 in ARR rose to 1,964 from 1,375.
Remaining performance obligations totaled $2,145.6 milliond, of which approximately $1,013.5 million is expected to be recognized over the next 12 months. Operating cash flow was $23.7 million, compared with $10.5 million a year earlier, and free cash flow was $18.6 million, compared with $8.0 million. Cash, cash equivalents, and short-term and long-term investments totaled $845.0 million, and management believes these resources will be sufficient for at least the next 12 months.
The company's accumulated deficit stood at $1,511.4 million, and it continues to carry a full valuation allowance against U.S. deferred tax assets. Stock-based compensation expense was $64.7 million for the quarter, and unrecognized stock-based compensation for unvested RSUs was $625.6 million. Management stated that it may require additional capital in future quarters, particularly if negative cash flows recur, and that additional financing may not be available on acceptable terms.
02—Key points
Key Highlights
- Revenue rose 37% to $280.7 million for the quarter ended May 4, 2024, from $204.3 million a year earlier; subscription revenue was $276.2 million.
- GAAP gross margin improved to 76% from 72%, and non-GAAP gross margin was 77% versus 73%.
- Net loss narrowed to $56.3 million from $67.9 million, and loss from operations narrowed to $66.0 million from $75.8 million.
- Non-GAAP income from operations was $6.2 million, compared with a loss of $19.0 million in the prior-year quarter; non-GAAP operating margin was 2% versus (9%).
- ARR grew to $1,175.7 million from $856.2 million, and customers above $100,000 in ARR increased to 1,964 from 1,375.
- Operating cash flow was $23.7 million and free cash flow was $18.6 million (7% margin), versus $10.5 million and $8.0 million in the prior-year quarter.
- Cash, cash equivalents, and investments totaled $845.0 million; remaining performance obligations were $2,145.6 million, with about $1,013.5 million expected within 12 months.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q1 FY2025, Samsara lost $0.20.
- Revenue$280.7M100.0%
- Cost of revenue−$68.6M24.4%
- Gross profit$212.1M75.6%
- Operating costs−$278.1M99.1%
- Operating income−$66.0M23.5%
- Interest, other & tax$9.7M3.5%
- Net income−$56.3M20.1%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed June 11, 2024Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $280.73M$204.32M | +37.4% |
| Cost of Revenue | $68.63M$57.56M | +19.2% |
| Gross Profit | $212.10M$146.76M | +44.5% |
| R&D Expenses | $72.97M$60.37M | +20.9% |
| Operating Expenses | $278.10M$222.59M | +24.9% |
| Operating Income | -$66.00M-$75.82M | +13.0% |
| Net Income | -$56.29M-$67.86M | +17.0% |
| EPS (Basic) | $-0.10$-0.13 | +23.1% |
| EPS (Diluted) | $-0.10$-0.13 | +23.1% |
| Shares Outstanding (Basic) | 548.65M526.40M | +4.2% |
| Shares Outstanding (Diluted) | 548.65M526.40M | +4.2% |
05—Questions
Frequently Asked Questions
What drove the revenue increase this quarter?
The filing attributes the $76.4 million (37%) revenue increase primarily to an increase in customer count and increased purchases of subscription offerings, including subscriptions to additional Applications, by existing customers.
Is the company closer to profitability?
On a GAAP basis, the company still reported a net loss of $56.3 million and a loss from operations of $66.0 million. On a non-GAAP basis, it reported income from operations of $6.2 million and non-GAAP net income of $15.9 million, compared with non-GAAP losses in the prior-year quarter.
How much cash does the company have, and is it sufficient?
As of May 4, 2024, cash, cash equivalents, and short-term and long-term investments totaled $845.0 million, plus $19.2 million of restricted cash. Management believes these resources will support working capital and capital expenditure requirements for at least the next 12 months, but it may need additional capital if it generates negative cash flows in future quarters.
What contracted revenue does the company have going forward?
Remaining performance obligations were $2,145.6 million as of May 4, 2024, of which the company expects to recognize approximately $1,013.5 million over the next 12 months, with the remainder recognized thereafter. Deferred revenue at quarter end was $588.0 million.
How significant is stock-based compensation?
Stock-based compensation expense was $64.7 million for the quarter, compared with $52.9 million a year earlier. As of May 4, 2024, unrecognized stock-based compensation for unvested RSUs was approximately $625.6 million, expected to be recognized over a weighted-average period of about 1.4 years.
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