IOT - Earnings call transcript Q2 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon and welcome to Samsara's Second Quarter Fiscal 2023 Earnings Call. I'm Mike Chang, Samsara's Vice President of Corporate Development and Investor Relations.

Joining me today are Samsara Co-Founder and Chief Executive Officer, Sanjit Biswas and our Chief Financial Officer, Dominic Phillips.

In addition to our prepared remarks on this call, additional information can be found in our shareholder letter, press release, investor presentation and SEC filings on our Investor Relations website at investors.samsara.com. The matters we'll discuss today include forward-looking statements. materially subject contained described to in SEC differ statements the more may our are and risks filings. results from in those forward-looking fully Actual and uncertainties based make XXXX events, XXst, we unless or a undertake update law. this we result today, to and that obligation required statements statements as of by forward-looking call Any future are these on no of assumptions August information on as new

results. for second GAAP QX call, revenues like open some Reconciliations discussions investor provided quarter measures that, the not call and except call measures of are to presentation. growth. out for fiscal revenue financial the dive to We'd with our hand for discuss to superior over in figures substitute for Q&A. or that and results remarks, financial today's the point GAAP. During in opening non-GAAP financial into non-GAAP will press XXXX as and of in our Sanjit. and reports All accordance highlights We'll a then are calculated to release the include the I'll financial to non-GAAP today up With make will company addition we

Sanjit Biswas

We Thanks, than of everyone joining Mike delivered $XXX year-over-year. for and surpassing another ARR, us thank quarter, XX% today. strong more you million growing

$XXX,XXX. our We over momentum nearly ARR and large with customer XXX continue ended QX customers with

to largest stronger have from challenging that demand global the around historically of environment. economic our and distributors, of we headwinds, century have in in saw because at and strength the food half cycles elongated but compared macroeconomic the business, municipalities. not strong carriers we continue for current critical They economic powered the Many chemical macroeconomic we survived include Despite saw that core themes: spend to insulated customers of Samsara some energy the While companies, demand over levels, freight we are of a that quarter recognize Throughout growth. see three utilities, the consistent first, diverse remained industries them economy. customer periods sales cycles. infrastructure been is

rising Second, and respond labor our we their Connected and efficient to first costs center Conference, loop, of Samsara greatest becoming process our we is customer disrupted customers, markets In cloud Investor to on that problems relationships is control building Samsara feedback the this where brought physical listen We QX, of their future the together of discuss Connected our and hosted and Customer operations our they with a leader hundreds businesses about of experience to Cloud connect learn what can it them unlock for network. from for value other Many use digitizing unique and businesses. customers to our learning how was shared them their customers Beyond. Samsara operations needs. inaugural that investment. third, with is to the other operations. a challenged Operations beneficial Day our of customer solutions on and provide interest safer customers their They rates, smarter, more operations. experience. rapid focus are operations. a supply a helps Samsara inflation deflationary center Operations our risks. chains, Samsara's their the for At and command solving Customers our and are with a return by record need geopolitical Cloud tight delivering running lever system we physical for day-to-day using And as Samsara, At customers great

this make So to an event. annual excited we're

seeing also tremendous award operations the ROI. and awards the Connected transformed are conference, winners. organizations celebrated we These have that During recognize their Operations

list, this a from see lot to can there you is celebrate. As

double-click our Artera. Let's of digital the on transformation award winner year

to of our leading less. had provider services. Many use come have customers can so of access expensive. industrial before. are provide data assets is into this kind to do hard and to mean Trailers with infrastructure equipment For chain visibility We to equipment shortages existing context, customers customers their supply and critical that by our more data a optimize haven't usage. of control and Artera is costs

Operations usage, $XX areas. flow in cash of helped equipment in unlocking Connected identify invest to their inefficiencies million Cloud Our priority them

Cloud power to to safety addition helping Artera things amazing In of our by accidents one are Connected them achieving and just Customers outstanding Samsara Operations Cloud. is unlock Artera digitization. across examples many helped efficiencies, operations. XX% increased of our the decrease year geographies industries their date. with of the of

they know a digital transformation. customers is have investing to It in inflation. Our to fight proven way continue

reduce are more becoming offerings tax into gain their control for their and Our must-have and a operations. to operations, visibility cost their streamline looking companies

managing data Let's unassigned XX%. several our improved streamline States, use and hours by with to Samsara integrated APIs vehicles They into United fleet who from is service multiple safety over their look for-hire the platforms, ArcBest spent productivity. XXth open over cloud ArcBest, time and at of city With worker have they've reduce drivers. create program operations. in X,XXX are the X,XXX next using largest their a custom that visibility integration to our

another of driving operational resilience. Here's example

the the punctual. to more bus also their improved and school over Samsara. buses from One like reports and eliminating made their students school two Cloud XXX and money. have the in worker top improves monitoring examples, Samsara's students XXX,XXX priority. and buses of of operations by in X,XXX vehicle Samsara's delivering integrations inefficient solutions routes, is fuel and to visibility. a Using fuel They Georgia vehicle better serve data the and modern telematics how user through idling in State investing over They safely they're schools, and districts of with sustainability to streamlining We're efficiency workforce. Operations asset manage now several Connected they for experience largest also pen transporting the paper Samsara's processes, efficiency the digitize experience accessing In tire diagnostics and these and save shared we pressure

six states Plus dashcams has the installing Superior reduction and AI with enhancing XX% safety XX just video-based a programs, X,XXX rollovers. US our in is And of serving Superior reduction road months XX% more leading on a Propane coaching trucks the example, of X,XXX reduction save and distributor workflows lives. than a safety a they speeding. For achieved to drivers. in seen XX% Within is and that, accident in costs on top launching Superior propane

with day. and features connected. doubling they a technologies market are that competing because workers workers platform on new ultimately transforming and and tools them with in worker workplaces innovative modern attracting, simplify every the day-to-day more that retaining customers tight experience tasks, gives provide line the our edge labor safe keep easy-to-use We're their Our competitive a use onboarding in are in make we down

new the Cloud a administrators customizable want remote be our opportunity including in-cab to the market workflows, features stages Connected nudges, a large we We to physical system for product of been from We by multi-stop record ETAs announced number troubleshooting driver believe operations. quarter that and has of in early streamline This anywhere. Operations technology. we're of support for underserved

As to a real-time number with of and we re-imagine custom provide software. Liberty system do actionable an have machines integration. our fundamentally the their tax platform, Samsara API, insights to increasing record our Energy customers bring more data we're into as business. from created way connected of our their example, for Energy open operations data their and They Liberty able Take

government. more than to every have Liberty this new single save Energy to As visibility they Because for their They operations one operational of level investments. a unlocked year. expects and Samsara integration can represent more $XX million their of and result, accurately more integration, the this the accurately report pays

physical customers operations. We the largest open ecosystem for are delivering for creating by more value

partnerships scale double Thermo offerings OEM down and new announced with data the to product we're US well innovation. asset, we systems. a in product our quarter, temperature as control King, on leader global largest and automakers, transport excited Stellantis With This two as our Motors, of increasing General

Strategy In as Jeff's invest and This Keren product Strategy our Jeffrey us quarter, also Product development. leadership Hausman team Chief to since our continue as from customer and data Chief help new increasing by to strong in in hiring capacity has We're analytics will Officer company's leading he led new and first building role operations, product will technologies scale. appointing ServiceNow we we as background his incubation product infrastructure demand. as founding. Keren continue our cloud Officer, Officer. serve Chief Sekar

unlock We global the work model our access are talent to pool. remote seeing

I'm QX over as quarter. well Samsarians best to I'd hiring began. opportunity our to support. forward pandemic looking now achieve Dominic since of to early from our As partners our operations. you still the that, to the highlights financial to world also like of a the customers, to all our quarter we'll what next. digitally thank cover as I'll and it We're was stages end the your result, the hand physical in with With continued for tremendous transform market a investors

Dominic Phillips

Sanjit. Thanks,

results on growth continued highlighted letter, shareholder our for to refer QX and financial investor please was guidance. at with information efficiency release reminder, QX investors.samsara.com topline additional strong presentation a As press improvements. and our operating by

validation, However, growth. and was such impacted and for periods the remains instances that, no compared core to contributed ROI periods of rates sales we headwinds, higher also change broader by which cycles, or longer pipeline customers to said our as trial robust. in of saw of macroeconomic most elongated economic deal demand stronger Having significant of conversion intensified win required some approval, quarter levels

transformation physical results We revenue million, be taking operating $XXX and of growing $XXX in operations. QX ending across was importance growing an strong Several drove year-over-year. and QX in performance well topline world also reduce was factors inflationary of reflect customers' QX. directly our costs our to positioned continue digital environment our million, year-over-year the XX% place to the XX% ARR

doubling we customers, specifically, landing of customers. now past customers, of a QX XX, which seven largest record $XXX,XXX on year-over-year continued XX% increase have plus annual $X and More a an We XX The XXX within XXX, ended the a and of first large with and plus million over or ARR was growth. increase of strength expanding focus almost ARR our with We quarterly year. quarterly saw customers. increase

plus majority who world's the top-XX landed million also companies these one carrier. a customer and are less-than-truckload new were the XX of While customers, two of $X expansions, top equipment and crane transportation now logos additions ARR largest we

XX% deals to our products to market. XX% three to strength Next, of five more customers to strength of two Operations multiproduct broadly, subscriptions or scale. than XX Cloud core large and Connected more More than included more at also more topline largest significantly the deals continue growth, of our customers seeing XX QX the We're multiple in of included transactions of contribute applications. the and Eight subscribe our multi-product top products. showing or in

and Our $XXX and product second strong QX. million video-based deals third telematics at largest of vehicle out new quarterly ARR from quarter XX% was saw milestone And core We this ended stood non-fleet finally, ARR. crossed products, in including products $XXX safety another while million more our come the than a record net ACV emerging our monitoring our equipment our ever. applications of for

adoption our to expand customers fact, opportunity non-fleet or of subscribe by our products. half Almost non-fleet higher. core to while almost broader multi-product two-thirds This we see the more depth customer a applications within the shows and XX% of and non-vehicle our than ARR, our monetizing customers significant is of base customer In assets. much large breadth our customer multi-product set adoption a of adoption of of

our addition In on we we across focus operating topline improvements continue to as efficiency driving performance, scale. our strong business to

strong As leverage year-over-year functions. a we all saw result, across

XX%, a gross one-time of primarily scale. optimizations, percentage non-GAAP strategies X larger and improvement was improved point, margin QX commercial product from Our year-over-year

XX% an annual leverage or improved driven cash percentage points XX%, year-over-year. Our of functions. adjusted improvement XX than negative than And approximately free XX our all operating year-over-year, by by percentage margin more flow more was across point margin

cash margin supply of global the couple due the increase years, free past component and to the associated chain operating logistics flow costs. to in margin lag Over and disruption begin

supply to started to in and of trend see improvements. we year flow we margin with expect cash chain QX However, this that converging free continue

As supply we good is continue margin to for we operating while navigate believe indicator chain-constrained result, environment. a leading a a profitability,

Okay.

XX% second be year, the raising approximately between million between Now of on between be our between year-over-year turning $XXX million, to clarity year-over-year guidance, $XXX $XXX margin growth operating increased XX%, full-year our and revenue representing negative a QX be results and to XX%. non-GAAP for and to or half growth. XX% Based the XX% expect and and the million forecast to for total $XXX revenue we're QX guidance we million

to In savings improved continue we through operating addition focus top-line our on to guidance, efficiencies. achieving increasing

while year. uncertain margin full included operating the our raising result, also a in 'XX negative some And finally, also As we of 'XX modeling XX%. pleased our we're an our non-GAAP up, first half macroeconomic in FY are in guidance operating year for letter. notes wrap with FY are additional the environment, shareholder QX we To performance to and we

We are Cloud of customers' is and record. our the our physical operations becoming role digitizing system of

As efficiencies durable driving a path to to operating hand over result, our to to With Mike Q&A. improved we on remain that, along growth committed it I'll with profitability. moderate

Mike Chang

you, Dominic. Thank

We open limit question follow-up main please line turn it's your to now When question. will one the for your questions. and questions one

The first at today Blair. comes Wolfe, from at William question followed Zukin Matt by Alex

Alex Zukin

Hey guys, can you hear me okay?

Sanjit Biswas

hear Yes, we you. can

Alex Zukin

Perfect.

strong I So think quarter. look, Congrats. really

I the together. of emerging that upsells least One of kind of was, multiple ACV spoke the you where product features at net about deals mean, saw is standout from category. how new came I And much the million-dollar coming those

more platform of just macro push an point do strong? a more was quarter, particularly dream a -- was a inflection quick that I've term, Because it seemed from really, to it guess, a was a I longer did was confluence team, with is it really internally are a type got for and investors focus a So And this the pull feel that the dream follow. and on from of -- was backdrop of events? customers that platform -- to you seemed go-to-market looking of that like looking kind it

Sanjit Biswas

of general, are that physical take really a fleet one. Alex, more able can pull focus for on. us. than So the other using products all from would I'll it assets, our to in say equipment realize compressors, bulldozers, on probably they trailers, their example, problems. of generalist I and customer generators, In is This non-vehicle construction customers more terms they We push organization, yellow is team iron operations solving and saw that so sell sales Sanjit. was digitize

of So the reflected XX% vehicles market pull see fleets well now, kinds I and that just is operational new we to that to in all beyond assets starting expands of think of is net what realize ACV. that this

to I a think and it's realize to and is to platform continue reports We starting in in you more. invest well bit of digitize line market, that product lot the but are more the can all our across going integrated APIs, make sure connected this and a

Dominic Phillips

much this letter, ARR, in of applications customer Investor is adoption. think shareholder to we're seeing and I we've us out tried what And while think call is non-fleet that excited our Day I in gets the XX% a higher over

our application multiproduct almost of our large and us of already top using XX% customer. assets our customers additional out expansion who some we almost called customers So, an multiproduct of coming and it was and core already online and the expansions customers are two-thirds so and a -- to was of equipment has bring in non-fleet decided a to one telematics five through for our using safety non-vehicle letter, large a lot these for were and

a excited the bring And online set broader so, about -- we're and to really adoption our seeing, I assets. existing think the on we're we're based to that go back ability customers already of

Alex Zukin

to right understand you lot seasonality way very Dom what's just for It's been sensitivities about you macro about, to you a see. linearity about want in great an those ARR? think new the a not Would that that backdrop? was headwind when elongating clearly see strong. things if comparing on the go-forward you, a ARR basis Did the sense. net or have just net net stronger feel for that makes and/or I new quarter from think guess new -- to to macro with the ARR impact on follow-up, sales talked when of you That cycles, that

Dominic Phillips

of resources times rigor at and the are as They that getting do signing they've got they're are that internal analysis. to so the making asking and are sure are more going through making using the contract. we the ROI down really the go that they're sure as quickly to longer deployment possible. definitely the They elongated through trials and seeing they're customers right as ROI on cycles so Yeah, nailed process sales

we sales top saw elongated some had some cycles line. that And definitely impact on and so, the probably

I some were little we a think in areas. stronger specifically,

was out a good quarter. pretty non-fleet it a strong called was applications, about momentum, international large We So renewals talked it customer quarter. the we

came areas move we're a a customer our I that year, macro. segment up full-year We little other really goals bit by are ahead smallest profitability our also and little excited softer think that in guidance. on small allowed more to impacted in is some us But our customer, that the for with we're really and

really some on seeing of levers from where spending we to topline good can So we're we've based we're got make performance. kind adjustments what money how

Alex Zukin

great Perfect. quarter. a Thank you, on Congrats guys.

Dominic Phillips

Thanks.

Sanjit Biswas

Great.

Mike Chang

William Morgan at at next comes Matt from Our followed Bob Blair question by Stanley.

Matthew Pfau

than guys questions you first with quarter. great plus of I the ever on and my customers, larger comfortable there quarter. great. initial the that this signed Have initially? the large that of Hey, logos that's feel size new size? factors deal you and wanted that of made million for what are just the committing in ask past in these other $X deal large some Thanks added then added or the deals are taking they to drove two And these that customers you've a to customers

Dominic Phillips

though now assets more so time. more that, mean, XX than the more as customers of those it have at those over we million landed were that paying than expansions $X $X customers existing of I new ARR. we be logos Yeah, that of Several call million tends majority of to have to ARR, added

to the of I year. all the two new come back in think two last did QX and just plus we entire of year half $X more throughout I we year in did logos all would 'XX FY million out of we did expect and the year,

kind that have the ability have at customers expand in. land size or of we so And to

after required. made going paying together those a enterprise really lot R&D investments investments come and take that these deals just go-to-market effort in just segment the going happy and investment a we've off testament required There see investment and customers. I There's to think lot really that is a of and after large so the to we're QX. of to time it's

Matthew Pfau

Okay, great. And follow just margin to the guidance. up on

So half a hiring there in quarter, half there implies lower margin should layering the is just the back in QX the other factors about? than back it we are strong that being or second on think quarter

Dominic Phillips

Yeah.

was a one, was us, loaded. I QX of think while for quarter its two record hiring a back-end it things, lot

of was also QX. we you'll So year. some in expenses would happen And more of QX the hit in timing thought going expense in ultimately there that of to more that the back half had see are that

margin is XX% think on we effectively margin to and QX would in the minus the now flowing operating I -- up profit implied what XX% beat full-year investors improving that minus to focus entire guidance full-year to for XX%. was operating go through is really just negative is have to effectively we

Matthew Pfau

Great. Thanks, guys. appreciate I it.

Dominic Phillips

Matt. Thanks,

Sanjit Biswas

Thank you

Mike Chang

Morgan question from Fargo. followed Bob, mute. next Michael at Bob comes Our by I on Wells think Stanley, you're at

Unidentified Participant

can me now? hear you Sorry,

Mike Chang

hear we you. can Yeah,

Unidentified Participant

congratulations ARR Again, those months the impact to any ARR Let's large a sorry. growth on but any second of see quarter. $X for take my half? say just six that do understand in most on long one Most trajectory your there dramatically going macro large next your and the deals Are questions customers. impact the on deals forward time horizon? that could quick in answered, you come of question, fruition. to those a Okay, deals were I solid million plus

Dominic Phillips

don't No, today, ARR. our I if overall a significant customers we large look portion at of driving you are think that customer I our any mean, massively have base

of large sort a so, And swing have rest the ARR could be of on there year. deals expect material to the impact for the any that don't I of trajectory material

Unidentified Participant

very helpful. Thank much. you Okay. That's

Mike Chang

Thanks, Bob.

Kash at comes from Wells Fargo at Goldman. by next Our question followed Michael

Michael Turrin

Hey, fairly customer been taking quarter job question. $XXX,XXX consistently the adding -- I consistent, QX the thanks. customers with you're results. on XX than Appreciate metric. the XX Nice mean, it's more each

anything expansions a how versus into -- have trend just there that change you with with And trend you existing are You there expansion seeing base? from the Maybe new mix net can the on existing visibility mentioned is you're XX% at path customers. that you'd Dominic, the that on to all the suggest customer here? would expect on touch of expansion

Dominic Phillips

right buying expect roll net been several customers from really forward. coming last pretty our a to year, new and the about opportunity so land now over us quarters -- of got such nice of new from typical There new large consistent from that expand. balance in half it's a I logos. is last landing half and We've pattern would expansions, over And front ACV is ultimately of and the the

they'll with geography And they they'll or product one a start will platform. one more get Platform and time. and subsidiary onto out the the Samsara assets certain out add one they they'll over set So roll maybe start then or more value assets of with of as

And so will customer we that motion, adoption motion that think continue.

Michael Turrin

margin cash And margin flow just free great. on versus follow-up the That's op smaller that relationship.

be year You the did a through few mindful on? and walk to Investor layer half assumptions seeing how in the disclosure with back there think the providing scenarios be may chain what currently suggests just some to the and you starting that of starting just good around a Day The as on of anything impacts gap some we should to margin or we about that us the useful us normalize Can in kind shrink. new at dynamics job supply commentary of there these of modeling you're there.

Sanjit Biswas

supply if Dominic with to So kind of Michael, free on the details versus don't margin. the any chain, why flow add start cash on on context operating wants I

We improvement upstream supply chain. our are in seeing

components. of fairly the key last are months So couple it's been consistent over

And to of automotive our that, early to had market. able then to signs to recovery, more challenging components on stabilizing better 'XX. we seeing calendar more our have little a freight as And especially in by visibility available opposed air. procure of most been in terms to manage into the components of forward lot and the look top and year actually we're ocean we've the costs bit are We been as smaller of greater a readily passive that of the shifting

a we're not the costs of way still they the think it were of is, about I yet, are while So that couple ago. where from thinking woods out years we're elevated

are recovery through flow. to supply seeing the that's We in the chain that happen showing cash

Dominic Phillips

letter the operating I then point with and to the would cash margin, again where at in the gross investor the just chart bottom. the margin And deck got free Yeah. we've margin shareholder

was and We margin that XX% supply to have over in [indiscernible] point. XX% this down table to QX. the flow in more talked in and And gap shrink between cash that you gap would We difference year it's at in in difference environment. we 'XX get operating of QX see operate shows and QX I of the FY last now was chain more XX% free as kind kind visibility of expect can margin. like QX and the QX, Investor about a to normal and continue QX Day

Michael Turrin

Nice great. job. That's Thanks.

Dominic Phillips

Thank you.

Mike Chang

All right.

mute. at Our you're Kash, on Goldman followed comes Matt next Kash from by question RBC. at

Okay.

move Let's forward.

Matt go RBC. at to Let's

Unidentified Participant

for is hear Can Matt you Hey, [indiscernible] okay? this Hedberg. me

Mike Chang

we you. Yeah, can hear

Unidentified Participant

about just was ask to question follow-up play elongated specific noted, you see any do wanted broad-based? or industries I so out at more or cycles -- a that deal that it less Yeah, did you on the

Sanjit Biswas

specific highlighted, a everyone not the and of industry. I underlying that's that their think again we have would sort got case the not utilities that's has or been transportation I single its seen serve. making ROI reason, whether energy local say, that lined to teams they to would deploy. broad-based, we've industry, Dominic they've any particular up sure ready And governments the I or effect it's is say even

Unidentified Participant

talk an physical Got customer it. could how environment? operations in How do about And sustainable in then the environment? trend conversations the an has evolve and digitization you unstable such been macro

Sanjit Biswas

digitization of has and kind and arc continuing. So to I actually digitization. They trend long a the opportunities more reasons seeing would are it's say towards this been business drive

it about earlier procure you procure trailers, it's mentioned supply in in chain, but call, to hard it's As bit the challenges equipment in the environment. hard to this a little think I

asset to our utilization. And more so customers efficient see we with be trying

to own thinking and remarket about those their cash their I take think underutilized reinvest other also in can them raise and they assets they're of them, in off, cash words, some business. sell and

a closer fuel really at you We elevated. take year. the recovery now, some fluctuated of quarter the lot quite look last over have prices if but past price the also and see We've a over diesel, even it's seen

use data. many of efficient can words, this in less fuel more using are customers our all so And of more saying become and sustainable, other we

say that I tailwind it's we are sort going effects digitization, So these these favor transformation, are customers that it -- them. a all are new simply the would in of for have just through of

Unidentified Participant

it. you. Thank Got

Mike Chang

All right.

comes Derrick Cowen at by Evercore. Our at Kirk next question followed from

Derrick Wood

Congrats after a new Great, strategies. new Sanjit, of to product pricing guys any who thanks going there guys Product hired IT Are monetization Chief notion anticipate this a for operations just maybe having out taking tiered pike, call ServiceNow my the strategies Officer or and on coming down the questions. quarter. and in particular, mentioned strong you portfolio. that from new you came ran

to or on Just packaging strategies? any pricing thoughts share potential new

Sanjit Biswas

scale which something and to don't the to Jeff on couple on continue serving ACV who customers, the of we have now we're is and has because in about, kind the will next it of to more invest really us for that in package Derrick, Jeff company. million building those is long-term as a to it's what's we to continue thinking these this call. are pricing announce have years. on more complex on model any this many the also packages footprints we work there Board, price R&D, right seen a innovations, have are So, of as specific something that larger new grow new an as layering about products continue But and is We're to way changes new for and he or opportunity is we We approaching -- innovation. view excited that's and dollar so these plus there

Derrick Wood

I Great. guess end, demand, the your And maybe a of one any same in just assumptions cycles, inputs half? are the end, you you I at the thoughts slower to macro. lower year, guidance through what upper better material sales the of slight Dom, second impact with at weakness for to stay conditions terms elongation Thanks. guidance you, expecting on within to mean, the but no the put into for durability little regards

Dominic Phillips

Yeah.

in think of the to think I we transformation directly the away rates, all of the we half we and help the trend this operations. win for can digital the don't think their demand, view of second this those expect really We of pipeline, operating of remain where the costs. reduce customers that because strong solution things that's a So world plays of physical customer again our well year, going that that this is type is environment

also do to sales that expect elongated are headwinds, that broader the We continue uncertainty macro going cycles.

We of continue there uncertainty. will kind expect that that economic is as

I using way control broader is we we drive while can't that though view like, impact, even more think to are profitability. the this an we really macro the it as opportunity

so line. the our that seeing to operating the margin, kind that flow raise on We the cash money for we're year and business. our continuing balance way really of on is we're of look the free that other margin efficiencies And were for find within to top able ways what something will our within based control and is we spend our rest to

Derrick Wood

Well done. Thank you.

Sanjit Biswas

Thanks.

Dominic Phillips

Derrick. Thanks

Mike Chang

at J.P. next Kirk (ph) at comes [Eli] by followed question Our Evercore from Morgan.

Unidentified Participant

I questions Thanks, here. is Peter for the [Berkman] actually Kirk. guys. This taking (ph) you appreciate

of the you obviously, about are questions a getting you macro. So lot know,

that given make would the make of decisions better sort along telematics up intuitively just hold regarding of kind What ways would efficiency spending helpful. their the in it in be for are sense following the of and informed way to looking that having ability of so the So companies ran fuel piece business. train thought, more that

a fair that to strength there other anything out characterization? would not, as in is is that And relates call you it curious, guys just any specifically? products So if

Sanjit Biswas

equipment, this not Sanjit, a was very but a manage of in them. eight the of real some interest And so a visibility. value Peter, was for are tour or better So, those and of interesting, turns telematics, just It business is We there out I do into regardless time costs. it's our insurance also payer thinking interest, pretty the Jeff just products. people I visited proposition where probably connected accidents That's how problem and span. customers rate XX on of short get lot getting customer about asset safety a they for talked about they

pillars we of these we working seeing and customers, land their landing new as in are it's favor I'd as really say So that all are multi-product transactions.

hear customers from just our that's in we're operations, exactly we building and telematics. And So their are not digitization what who that across platform investing towards. specifically

Unidentified Participant

trajectory, If how in just color. you a guys, more the curious could maybe, macro to guys impressive you're the a ramp that. growth again, thinking that's sort obviously pretty I in Okay, helpful have appreciate dynamics today, about but given profitability. one I sneak of that

call it that Just in is of sort flip out is in ahead investing on particular guys' you'd or it's so for side, kind the full wondering just steam any there your if growth? perspective levers more of terms from of

Dominic Phillips

underway got to number it's a mean, the us breakeven. become of internally. this our projects to priority timeline We've I former. really accelerate No, definitely has for big a

I shown think we've that. -- and

margin so XX% by more cash a it percentage more year-over-year, operating of big improvement flow Our and improved free than focus. than is points XX

expect see are leverage We to continued toward where folks marching and year-over-year breakeven. for

Unidentified Participant

That's guys. you helpful. Thank

Dominic Phillips

you. Thank

Mike Chang

Thanks followed our J.P. Morgan, comes at Peter. next at question All Goldman. by Eli right Kash

Unidentified Participant

in which you there particular was strength Thank where question. first weaknesses? so My taking you my be might and now much are right Great. possible question, for I verticals seeing curious,

Sanjit Biswas

play and the Eli, out this themes vertical again of we're we Sanjit. talked call industry general, dynamics shortages we some single any Dominic, if is know, demand other of the you sort each it's would are in say the don't board, serve. the kind Labor of but wouldn't There in that. color common necessarily seeing I segments. digitization. on I markets are have stronger of -- across I across a behind different of about

Dominic Phillips

I building all like and industry Yeah. segments. what across cost, toward what we're Every for and operations industry physical looking I improve is to we're mean, just selling right ways digitizing these to the world efficiency that's think moves into. of regardless really lower now

seeing customer across And demand really so all we're strong verticals.

Unidentified Participant

as others? curious Are the of more profitable I a was than much. helpful. certain verticals quick you does differ verticals so really That's Thank And profitability follow-up, considered materially?

Dominic Phillips

that verticals. across is say our our the we all cost market, same of R&D, mean or way No, you the the cost, overall just industry-wide the costs, cellular go cloud about think It's it's are that a device platform. stack, costs I IoT to if horizontal same. all

Unidentified Participant

Great. Thank you so much.

Dominic Phillips

Thanks.

Sanjit Biswas

Eli. Thanks

Mike Chang

last back let’s question the try to Kash. So, with

Kash Rangan

me Hey, okay? hear you can

Mike Chang

hear Yeah, great. Kash, you, we can

Kash Rangan

you've in that absorbed that you proposition a product that helping you're to thank progress to raise wonder didn't that right, when you cash down, if prices, at so your that All of high that value raising cost, far could ask profitability. Great already Wondering cost to improvement that taking supply potentially in challenges and the you to so your to does great we such Thank much be is point at also at we market, much. the actually build passed hear flow wanted situation position much. too situation and stretch? also I inventories or are prices by be proposition? obviously the big settled well be just secondly, what would go question. given in up I Thanks you as input with for maybe in if point along should input we're if I see you is that starting thought any what to business, down. you, margin you, free so want operating Where your And here. given and mean lower the for cost

Sanjit Biswas

something every that's on. can Dominic look maybe pricing that's at been so add year and start we I'll just strategy general, and into Kash, built the So, or In do company. and

thought that being it's don't specific new We always that mind different announced customers and packages have thinking know will today. that's our for any we want changes in you strategies about. as on anything. to you pricing something we've penetrate and is we introduce something see are cover invest Dominic As we're about to the and But go I continue us if market. R&D, don't

Dominic Phillips

maybe input cost. I'll would, on on one I second the the

availability think is somewhat. of I improving chain supply the

we're again we and of trying is converge non-GAAP as be, flow we half do expect improve, second cash to margin free continues but to supply why again, that the the that flow chain see in to continue You're year think starting I back into operating kind of the we margin. indicator to operating where of leading the investors operating converge. term, analysts in as at expect profitability look to because put margin and expect cash to free to the margin longer And

be. And the of to so that's indicator leading expect where of we kind things

Sanjit Biswas

and fulfill gross how And I we our chain been spite to ensure issues in these We've to thing. have demand. of customer the the able and 'XXs margin our margins. gross just, one supply low proud maintain profile on together that team can if incredibly I'm more just worked in all well supply maintain the tack of

that's scenes, So of well A the creativity easy through task. we think lot I been behind it. but not managed an required

Kash Rangan

you Thank much. so Wonderful.

Mike Chang

Kash. Thanks,

question-and-answer XXXX attending So QX fiscal concludes this our the year you portion. Thank earnings call. for all

Before meeting. XXth. forward I That's Conference short September look let one all Technology of I for on the Conference September to you a The Goldman upcoming for will We you in in conferences. be participating go, it on the Xth have these on Xth, person. Conference at Technology today's announcement and TMT Wolfe Communicopia We seeing events September Sachs Evercore

again. can you Bye questions, at us everyone. directly Thanks ir@samsara.com. follow-up any have email you If

Samsara (IOT) 31 Aug 222023 Q2 Earnings call transcript