How did Samsara perform in the fourth quarter of fiscal 2024?

Total revenue was $276.3 million, up 48% year-over-year, or 37% on an adjusted basis that removes the extra week in the 14-week quarter. ARR reached $1.102 billion, up 39%. GAAP net loss per share was $(0.21), while non-GAAP net income per share was $0.04.

What drove the large GAAP operating loss?

The GAAP operating loss of $(123.0) million included a one-time $68.7 million legal settlement for lease-related litigation, consisting of a $60.0 million cash payment and $8.7 million tied to a previously drawn letter of credit. Stock-based compensation expense-related charges were $67.8 million in the quarter.

Is Samsara generating cash?

On an adjusted basis, yes. Adjusted free cash flow was $16.0 million in Q4 and $27.1 million for the full fiscal year, the company's first year of positive adjusted free cash flow. GAAP net cash used in operating activities was $(11.8) million for the year.

How is the business growing in terms of customers?

The company had 1,848 customers with ARR over $100,000, up 49% year-over-year, and ending ARR of $1.102 billion grew 39%. Management described fiscal 2024 as a year of durable and efficient growth.

IOT 8-K: Earnings & Results

Q: What is Samsara's outlook for fiscal 2025?

The company expects fiscal 2025 total revenue of $1,186 million to $1,196 million, 27% to 28% year-over-year growth, a 2% non-GAAP operating margin, and non-GAAP diluted net income per share of $0.11 to $0.13. For the first quarter, it expects revenue of $271 million to $273 million and a (3%) non-GAAP operating margin.

01—Abstract

Summary

Summary of the 8-K filed March 7, 2024. Cited figures are marked; the original filing is the authoritative source.

Samsara Inc. reported financial results for the three months and fiscal year ended February 3, 2024, in a press release attached as Exhibit 99.1.

Fourth-quarter revenue was $276.3 million^a, up 48% year-over-year, or 37% on an adjusted basis that removes the impact of the 14-week fourth quarter. Ending annual recurring revenue (ARR) was $1.102 billion, up 39% year-over-year, and the company had 1,848 customers with ARR over $100,000, up 49% year-over-year. Fiscal year 2024 revenue was $937.4 million, up 44% (41% adjusted).

GAAP operating loss for the year was $323.3 million^b, while non-GAAP operating income was $1.3 million, and the company reported its first year of positive adjusted free cash flow at $27.1 million. GAAP results were weighed down in the fourth quarter by a one-time $68.7 million legal settlement related to lease litigation, comprising a $60.0 million cash payment and $8.7 million associated with a previously drawn letter of credit. GAAP net loss per share was $(0.21) for the quarter and $(0.54) for the fiscal year, compared with non-GAAP net income per share of $0.04 and $0.07, respectively.

Stock-based compensation expense-related charges were $251.2 million^c for the fiscal year. For the first quarter of fiscal 2025, Samsara guided to total revenue of $271 million to $273 million, 33% to 34% year-over-year growth, and non-GAAP operating margin of (3%). For fiscal 2025, it guided to total revenue of $1,186 million to $1,196 million, 27% to 28% year-over-year growth, a 2% non-GAAP operating margin, and non-GAAP diluted net income per share of $0.11 to $0.13.

02—Key points

Key Highlights

Q4 FY2024 revenue of $276.3 million, up 48% year-over-year (37% adjusted for the 14-week quarter).
Ending ARR of $1.102 billion, up 39% year-over-year; 1,848 customers with ARR over $100,000, up 49%.
Fiscal 2024 revenue of $937.4 million, up 44% year-over-year; GAAP gross margin of 74% and non-GAAP gross margin of 75%.
First year of positive adjusted free cash flow, at $27.1 million for the fiscal year versus $(110.0) million in the prior year.
GAAP operating loss of $(123.0) million in Q4 included a one-time $68.7 million legal settlement; Q4 non-GAAP operating income was $13.5 million.
FY2025 guidance calls for total revenue of $1,186 million to $1,196 million (27% to 28% growth) and non-GAAP operating margin of 2%.
Q1 FY2025 guidance calls for total revenue of $271 million to $273 million and a non-GAAP operating margin of (3%).

03—Questions

Frequently Asked Questions

How did Samsara perform in the fourth quarter of fiscal 2024?
Total revenue was $276.3 million, up 48% year-over-year, or 37% on an adjusted basis that removes the extra week in the 14-week quarter. ARR reached $1.102 billion, up 39%. GAAP net loss per share was $(0.21), while non-GAAP net income per share was $0.04.
What drove the large GAAP operating loss?
The GAAP operating loss of $(123.0) million included a one-time $68.7 million legal settlement for lease-related litigation, consisting of a $60.0 million cash payment and $8.7 million tied to a previously drawn letter of credit. Stock-based compensation expense-related charges were $67.8 million in the quarter.
Is Samsara generating cash?
On an adjusted basis, yes. Adjusted free cash flow was $16.0 million in Q4 and $27.1 million for the full fiscal year, the company's first year of positive adjusted free cash flow. GAAP net cash used in operating activities was $(11.8) million for the year.
What is Samsara's outlook for fiscal 2025?
The company expects fiscal 2025 total revenue of $1,186 million to $1,196 million, 27% to 28% year-over-year growth, a 2% non-GAAP operating margin, and non-GAAP diluted net income per share of $0.11 to $0.13. For the first quarter, it expects revenue of $271 million to $273 million and a (3%) non-GAAP operating margin.
How is the business growing in terms of customers?
The company had 1,848 customers with ARR over $100,000, up 49% year-over-year, and ending ARR of $1.102 billion grew 39%. Management described fiscal 2024 as a year of durable and efficient growth.

04—Continue

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