01—Abstract
Summary
Summary of the 10-Q filed September 10, 2024. Cited figures are marked; the original filing is the authoritative source.
Samsara Inc. reported revenue of $300.2 milliona for the three months ended August 3, 2024, up from $219.3 million in the prior-year quarter, and $580.9 million for the six months, up from $423.6 million.
The company describes this as year-over-year growth of 37% for both periods, attributing it primarily to an increase in customer count and increased purchases of subscription offerings, including additional Applications, by existing customers. Gross margin rose to 76% for the quarter from 73%. Net loss narrowed to $49.6 millionb for the quarter from $60.0 million, and to $105.9 million for the six months from $127.8 million.
Operating expenses grew, with sales and marketing up 28% and research and development up 20% for the quarter, driven largely by headcount and employee-related costs. Key operating metrics include Annual Recurring Revenue of $1.26 billionc as of August 3, 2024, compared with $930.0 million a year earlier, and 2,133 customers with more than $100,000 in ARR, up from 1,515. Remaining performance obligations were $2,293.1 million, of which approximately $1,088.2 million is expected to be recognized over the next 12 months.
Net cash provided by operating activities was $41.8 milliond for the six months, and free cash flow was $31.7 million, compared with $18.2 million and $12.7 million in the prior-year period. Cash, cash equivalents, and short-term and long-term investments totaled $880.3 million. The company states that its existing cash, cash equivalents, and investments will be sufficient for working capital and capital expenditure requirements for at least the next 12 months, though it may need additional capital if it generates negative cash flows in future quarters.
The accumulated deficit was $1,561.0 million, and the company has a full valuation allowance against its U.S. deferred tax assets. Unrecognized stock-based compensation related to unvested RSUs was approximately $574.3 million.
02—Key points
Key Highlights
- Revenue of $300.2 million for Q2 FY2025 (three months ended August 3, 2024), up 37% from $219.3 million; six-month revenue of $580.9 million, also up 37%.
- Gross margin improved to 76% for the quarter from 73%, mainly from operational efficiencies in warranty charges and infrastructure costs.
- Net loss narrowed to $49.6 million for the quarter from $60.0 million a year earlier; six-month net loss was $105.9 million versus $127.8 million.
- Annual Recurring Revenue reached $1,263.95 million, up from $930.0 million, and customers above $100,000 in ARR rose to 2,133 from 1,515.
- Remaining performance obligations totaled $2,293.1 million, with approximately $1,088.2 million expected to be recognized over the next 12 months.
- Free cash flow was $31.7 million for the six months, versus $12.7 million a year earlier; operating cash flow was $41.8 million.
- Cash, cash equivalents, and investments were $880.3 million, and management believes this is sufficient for at least the next 12 months.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q2 FY2025, Samsara lost $0.17.
- Revenue$300.2M100.0%
- Cost of revenue−$73.4M24.4%
- Gross profit$226.8M75.6%
- Operating costs−$285.0M94.9%
- Operating income−$58.2M19.4%
- Interest, other & tax$8.6M2.9%
- Net income−$49.6M16.5%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed September 10, 2024Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $300.20M$219.26M | +36.9% |
| Cost of Revenue | $73.36M$58.87M | +24.6% |
| Gross Profit | $226.84M$160.39M | +41.4% |
| R&D Expenses | $76.48M$63.97M | +19.6% |
| Operating Expenses | $285.03M$230.15M | +23.8% |
| Operating Income | -$58.19M-$69.75M | +16.6% |
| Net Income | -$49.61M-$59.97M | +17.3% |
| EPS (Basic) | $-0.09$-0.11 | +18.2% |
| EPS (Diluted) | $-0.09$-0.11 | +18.2% |
| Shares Outstanding (Basic) | 553.92M531.75M | +4.2% |
| Shares Outstanding (Diluted) | 553.92M531.75M | +4.2% |
05—Questions
Frequently Asked Questions
How fast is Samsara's revenue growing?
Revenue grew 37% year over year for both the three months and six months ended August 3, 2024, reaching $300.2 million for the quarter and $580.9 million for the six months.
Is Samsara moving toward profitability?
The company remains loss-making but the losses narrowed. The quarterly net loss was $49.6 million versus $60.0 million a year earlier, and non-GAAP net income for the quarter was $26.1 million compared with $3.9 million. GAAP operating loss narrowed to $58.2 million from $69.8 million.
What drove the revenue increase?
The filing attributes the increase primarily to growth in customer count and increased purchases of subscription offerings, including additional Applications, by existing customers.
Does Samsara need more capital?
Management believes existing cash, cash equivalents, and investments of $880.3 million will support working capital and capital expenditures for at least the next 12 months. It notes it may need additional capital if it generates negative cash flows in future quarters, and that it may seek equity or debt financing.
What is the company's exposure to interest rate changes?
A hypothetical 100 basis point change in interest rates would have changed the market value of its cash equivalents and short-term and long-term investments by $5.1 million as of August 3, 2024.
06—Continue