• Annual Recurring Revenue (ARR): $1.46 billion, 32% year-over-year growth, 33% adjusted growth.
• Q4 Revenue: $346 million, 25% year-over-year increase, 36% adjusted growth.
• FY25 Revenue: $1.25 billion, 33% year-over-year increase, 37% adjusted growth.
• Net New ARR (Q4): $109 million, 10% year-over-year increase, 12% adjusted for constant currency.
• Gross Margin (Q4): 78%, a quarterly record.
• Operating Margin (Q4): 16%, a quarterly record.
• Free Cash Flow Margin (Q4): 14%, a quarterly record.
• $100,000+ ARR Customers: 2,506, 36% year-over-year growth, 203 added in Q4.
• $1 Million+ ARR Customers: 118, 44% year-over-year growth, 14 added in Q4.
• Average ARR per $100,000+ Customer: $323,000, up from $313,000 one year ago.
• Dollar-Based Net Retention Rate: Approximately 115% for core customers, 120% for large customers.
• Q1 FY26 Revenue Guidance: $350 million to $352 million, 25% year-over-year growth.
• FY26 Revenue Guidance: $1.523 billion to $1.533 billion, 22% to 23% year-over-year growth.
• Non-GAAP Operating Margin Guidance (Q1 FY26): 7%.
• Non-GAAP EPS Guidance (Q1 FY26): $0.05 to $0.06.
• Non-GAAP Operating Margin Guidance (FY26): Approximately 11%.
• Non-GAAP EPS Guidance (FY26): $0.32 to $0.34.

• Warning! GuruFocus has detected 6 Warning Signs with DOMO.

Release Date: March 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Samsara Inc (NYSE:IOT) achieved a 32% year-over-year growth in ARR, reaching $1.46 billion.
• The company increased its $100,000-plus ARR customer count by 203, setting a quarterly record.
• Samsara Inc (NYSE:IOT) reported a 78% gross margin, a 16% operating margin, and a 14% free cash flow margin, all quarterly records.
• The company is seeing strong momentum with large enterprise customers, with 62% of large customers using three or more products.
• Samsara Inc (NYSE:IOT) is leveraging AI to enhance customer operations, with significant reductions in safety events and operational costs reported by clients.

Negative Points

• Large enterprise sales cycles are complex and can span multiple years, making them less predictable.
• The company faces challenges in quantifying the impact of an extra week in Q4 on ARR, complicating financial comparisons.
• There is uncertainty regarding the macroeconomic environment and potential impacts on customer spending.
• Despite strong growth, the penetration of telematics and safety products remains low, with less than half of North American commercial vehicles using telematics.
• The company is still in the early stages of monetizing new AI-driven products, with many still in beta testing.

Q & A Highlights

Q: Can you provide any color on how we should think about ARR adjusted for the extra week in Q4? A: Dominic Phillips, CFO, explained that it's challenging to quantify the impact of the extra week on ARR due to the complexity of bookings. However, using the same framework as revenue, removing 1/14th of the $99 million from net new ARR in Q4 last year implies roughly $7 million of added net new ARR. Despite the tough comparison, they are satisfied with the net new ARR growth this quarter.

Q: How might asset tags impact fiscal '26 ARR? A: Sanjit Biswas, CEO, noted that the reception for asset tags has been positive, with use cases emerging across industries for locating stolen or lost assets, finding assets on large sites, and understanding asset utilization. However, it's too early to predict the impact on FY26 ARR as customers are still experimenting with the new functionality.

Q: Do you expect any pressure from macroeconomic uncertainties, especially in the US? A: Sanjit Biswas, CEO, emphasized that Samsara's customers are large-scale, asset-heavy, and labor-intensive businesses that constantly seek efficiency. The data provided by Samsara is valuable for optimizing operations, which is crucial in uncertain times. Dominic Phillips, CFO, added that many customers have operated through various economic cycles and are adopting digital transformation to drive efficiencies.

Q: What's driving the confidence in stable net retention rates for core customers? A: Dominic Phillips, CFO, stated that the consistency in business expansions and the introduction of new products are key factors. Customers are landing with specific use cases and expanding to more frontline workers and assets, which is expected to continue as a growth driver in FY26.

Q: How are you leveraging AI internally to improve operations? A: Sanjit Biswas, CEO, explained that AI is being used across various departments at Samsara. In product development, modern AI coding tools are utilized, while sales teams use AI for customer research and support functions benefit from faster response times. The potential for AI technology is expanding and exceeding expectations.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.