01—Abstract
Summary
Summary of the 10-Q filed December 10, 2024. Cited figures are marked; the original filing is the authoritative source.
Samsara Inc. reported revenue of $321,981 thousanda ($322.0 million) for the three months ended November 2, 2024, up from $237,534 thousand, representing year-over-year growth of 36%.
For the nine months, revenue was $902.9 millionb versus $661.1 million, growth of 37%. Subscription revenue made up $316,157 thousand of the quarter's revenue. Gross margin rose to 76% for the quarter from 74% a year earlier.
The company still posted a GAAP net loss of $37.8 millionc for the quarter, narrowing from $45.5 million, and a nine-month net loss of $143.7 million versus $173.4 million. Annual recurring revenue (ARR) reached $1,348,859 thousand ($1.35 billion) as of November 2, 2024, compared with $1,002,729 thousand a year earlier, and customers with more than $100,000 in ARR rose to 2,303 from 1,663. Remaining performance obligations were $2,429.1 million, of which approximately $1,160.8 million is expected to be recognized over the next 12 months.
Deferred revenue, current, increased to $505,557 thousandd from $426,369 thousand at fiscal year-end. On the non-GAAP measures the company reports, non-GAAP income from operations for the quarter was $33.9 million (11% operating margin) versus $12.7 million (5%) a year earlier, and free cash flow for the nine months was $63.0 million (7% margin) versus $21.2 million (3%).
Cash, cash equivalents, and short-term and long-term investments totaled $913.0 million, and management states these balances are sufficient for at least the next 12 months. Unrecognized stock-based compensation for unvested RSUs was approximately $532.6 million.
02—Key points
Key Highlights
- Q3 FY2025 revenue of $321,981 thousand ($322.0 million), up 36% year over year; nine-month revenue of $902.9 million, up 37%.
- Gross margin of 76% for the quarter, up from 74%, attributed to operational efficiencies in deferred IoT device costs, direct labor, and warranty charges.
- GAAP net loss narrowed to $37.8 million for the quarter from $45.5 million, and to $143.7 million for nine months from $173.4 million.
- ARR of $1,348,859 thousand ($1.35 billion), up from $1,002,729 thousand; customers above $100,000 ARR rose to 2,303 from 1,663.
- Remaining performance obligations of $2,429.1 million, with approximately $1,160.8 million expected to be recognized over the next 12 months.
- Non-GAAP income from operations of $33.9 million (11% margin) for the quarter, versus $12.7 million (5%) a year earlier; nine-month free cash flow of $63.0 million (7% margin) versus $21.2 million (3%).
- Cash, cash equivalents, and investments of $913.0 million; management expects existing resources to be sufficient for at least the next 12 months.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q3 FY2025, Samsara lost $0.12.
- Revenue$322.0M100.0%
- Cost of revenue−$76.0M23.6%
- Gross profit$246.0M76.4%
- Operating costs−$293.3M91.1%
- Operating income−$47.4M14.7%
- Interest, other & tax$9.6M3.0%
- Net income−$37.8M11.7%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed December 10, 2024Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $321.98M$237.53M | +35.6% |
| Cost of Revenue | $76.03M$61.59M | +23.5% |
| Gross Profit | $245.95M$175.95M | +39.8% |
| R&D Expenses | $76.99M$60.82M | +26.6% |
| Operating Expenses | $293.32M$230.72M | +27.1% |
| Operating Income | -$47.37M-$54.77M | +13.5% |
| Net Income | -$37.81M-$45.53M | +17.0% |
| EPS (Basic) | $-0.07$-0.08 | +12.5% |
| EPS (Diluted) | $-0.07$-0.08 | +12.5% |
| Shares Outstanding (Basic) | 559.01M537.46M | +4.0% |
| Shares Outstanding (Diluted) | 559.01M537.46M | +4.0% |
05—Questions
Frequently Asked Questions
How much did Samsara's revenue grow in the latest quarter?
Revenue for the three months ended November 2, 2024 was $321,981 thousand ($322.0 million), compared with $237,534 thousand for the three months ended October 28, 2023, representing year-over-year growth of 36%. The filing attributes the increase primarily to a larger customer count and increased purchases of subscription offerings, including additional Applications, by existing customers.
Is Samsara profitable?
No, on a GAAP basis. The company reported a net loss of $37.8 million for the quarter and $143.7 million for the nine months ended November 2, 2024, both smaller than the losses in the prior-year periods. Non-GAAP net income for the quarter was $43.5 million, but this measure excludes stock-based compensation expense-related charges and lease modification, impairment, and related charges.
What is driving Samsara's recurring revenue base?
Annual recurring revenue was $1,348,859 thousand as of November 2, 2024, up from $1,002,729 thousand a year earlier. Customers with more than $100,000 in ARR increased to 2,303 from 1,663. Subscription revenue was $316,157 thousand of the quarter's $321,981 thousand total revenue.
Does Samsara have enough cash to fund operations?
Management states that cash, cash equivalents, and short-term and long-term investments of $913.0 million as of November 2, 2024, together with existing resources, are sufficient to support working capital and capital expenditure requirements for at least the next 12 months. The filing also notes that the company may require additional capital, particularly if it generates negative cash flows in future quarters.
What drove the improvement in gross margin?
Gross margin increased to 76% for the three months ended November 2, 2024, from 74% a year earlier. Management attributes this mainly to operational efficiencies in deferred IoT device costs, direct labor costs, and warranty charges.
06—Continue