Earnings call transcript Q2 2024

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Mike Chang

Good afternoon, and welcome to Samsara's Second Quarter Fiscal 2024 Earnings Call. I'm Mike Chang, Samsara's Vice President of Corporate Development and Investor Relations.

Joining me today are Samsara Chief Executive Officer and Co-Founder, 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 our filings. differ statements the fully may SEC are and risks results from in those forward-looking in Actual and uncertainties based we XXXX, events XX, we unless or a undertake update law. this Any result today, to and make obligation required statements statements as of by that call forward-looking future are these on no of assumptions August information on as new

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

that, With over to call hand the Sanjit. I'll

Sanjit Biswas

everyone, and achieved strong deliver today. becoming with QX as us cash Thanks, thank another towards and positive to the for and rapid organizations. milestone we Samsara continue world's for we ended quarter, We an Mike, ARR to self-sustaining quarter of first ROI achieved leading you, complex $XXX joining most million, growing this XX% flow our adjusted are year-over-year. QX business. is free also have proud a

their digital an profitability a multi-decade journey. partner Our our important vision in that is for be and is driving customers transformation step in to

in the They're of XX% are GDP and customers and beverage, the leaders backbone and more global of Our food services. agriculture transportation, global field represent the economy. construction, than

to New Transit, XX% momentum in and customers. National This large includes BoartLongyear, the with X,XXX customers, XXX record large provider continued added Jersey of bringing year-over-year. we $XXX,XXX ARR, QX, We growing services. a world's over leading saw us customers In with over Grid drilling

central to success, to is their Our grateful our customers' partnership we are and earned company's success and trust. have

celebrate operations Beyond This had nearly physical Samsara's the Cloud the past June, customers World organizations largest X,XXX and chance more by annual together facing value digitization. through in from event, how leaders our customer conference. operations the discuss about and a challenges bringing learned our we the connected is delivering At they're we to

hear evident our we transformation prioritize our It critical was that priorities, was as and and customers' which growing. to appetite conversations, shape it for the a Throughout efforts. R&D great is robust digital opportunity top our is

We connected an our ceremony also our our achieved outsized celebrated who on where platform. held impact customers we award operations

sustainable the industry most serving This frontline people. more of than XXX,XXX leaders, and of our operations have XXX winner countries winner year, global we operations. companies of the Sobeys, connected innovation, number operations, one delivering workforce largest logistics parcels They a including annually. complex is and X.X of billion DHL DHL, honored in a our and world,

reduction enhance customers, driver and for retention. can a ever. cost turnover XX% telematics a safety lowest in have impact see major for as sites, accident-related improve vacancy Equally accidents reduction products the in DHL XX% their Driver by our and a reaching chain saw costs. supply turnover a Samsara driver DHL incredible is Express our safety and in positive it's XX companies saw reduction to also Using XX% across and impressive, helping

months. XXX,XXX with Let's go X,XXX gallons more They supermarket chains have served green metric -- Sobeys, sustainability four employees in tons of of Using emissions of they saved to emissions. their leading than lower in of XXX target one a carbon substantially Canada to the diesel turn they ambitious of a XX,XXX largest goals just XXXX across locations. to Samsara, with savings date

enjoyed conference physical announce to world even hosting Chicago that really year, next more conversations with throughout we'll operations. our our be the excited leaders We in of across I'm and customers, Beyond customer partners and

priority experience. A the for reshaping customers worker our is key

are corporate outsized back world's of their frontline can time employees in office, employees of to saving an technologies with workflows the who for organization. have there XX% While work XX% digital other millions and frontline workers, are to experience workforce an modernize impact

digitize of carriers its A the prime of largest using Samsara monitoring the boarding saving is applications results, U.S. is in equipment equipment to its and time one our this more. across They're hubs. which hours. They outside some locate pieces often by major operations all types minutes equipment in equipment of valuable passenger have manage of conditions ground weather carts from them stairs air example of their of instead employees support using telematics impressive and in of world, to to baggage thousands seen helping

kickoff already customer in In cascading delays XHub the experience. of X,XXX equipment impacting operational day, has alone, it's which they experience. flights searching reduced reported more support a They've for their on and the schedule and saving hours first flights, customer impact ground than

to their for and are support teams business. help frontline proud their We results drive these

new and on experience us a forms such the mobile their inspections digitize workers, any custom allows partner more products management. to as strategic trust to and as to this go. safer jobs workers efficient. form At we the make Launching reports better, Beyond, workforce incident or announced connected further customers their connected Our complete frontline two and customers empower enables year, later forms to them

and significant reduction in equipment process need Construction, have Gates paperwork. connected value to through company to through access The already Silver inspections. They leading time eliminating a the XX% administrative transportation equipment a early an use construction reported forms seen streamline

found exciting on about case in our Relations this our letter read shareholder can use You more Investor website.

efficiently secure U.S. frontline ability Mile easily Experience for in. to eastern operations half in assist or of and XX% driver operate able Mobile remote train environments substantial serving and the average United the Final in call improvements gives times. reduction MEM, resulted their more has devices Being States drivers Management, leaders the with has customize teams remotely Logistics control a company to reported seen MEM.

safety disruption their drivers, data for supporting reported XX% road. while also usage They their on a reduction the eliminating in

As long the in now deliver through listen customers we're term, pressing in customers customer solutions most our and loop drive and purpose-built future. will to we and for our feedback value investing those that to our We that build the technology needs. their talent address insights use for

operational to the this Board Samsara's centricity to My new important I'm In Beyond, bring appointment forms with Connectors. the Coach, addition three is excited MEM, also our we Find in Directors to in Todd drive Asset Bluedorn. Virtual business. to and innovations an of Customer connected Data to announced central efficiencies, of customer voice of year

track and leadership Chairman understanding brings which Technologies within leading a sector, Todd enhance our deep for Lennox and nearly our years proven to Executive and including and company industrial Texas XX experience operational a HVAC needs years brings global and customers' of Chief will only a roles International, as customers. of of the at leadership of XX United He has record execution Instruments. our ability deliver Officer

to We welcome to thrilled are the Board. Todd

named Fast several wanted Innovators work. recently Great I were to best great XXXX recognized named by earned and Company place organizations We workplace to for a Certification, finally, by as Place a U.K.'s share our a were we Work to that for were Workplace women. XXXX Best And

for. and company culture a that creating working of employees into proud a are are We

at have this find thank and milestone our to momentum and growth. customers by all a We're value for of becoming business quarter customers, been on taken us at and I journey. Samsara. would scale, tremendous decades-long platform fueled operating have important Samsarians, a focus step ROI like us It's investors durable towards self-sustaining on who in continued efficient because partners and of joining our an the for

quarter. highlights the to I'll go the now to hand for over it Dominic over financial

Dominic Phillips

QX achieving free highlighted of positive our Thank is Sanjit. by you, quarter cash flow. first adjusted

forward. in was to the addition expect we cash hitting full and free growth flow for In also quarter adjusted at this year scale. going high milestone to remain another QX, This of positive

quarter, Our growth both the and ARR consecutive high for for in growth year-over-year sustained ARR total net revenue. resulting new second accelerated

growing was XX% year-over-year points net highest larger is last $XXX past growth, quarter the which This million, quarterly ARR at over which XX% million, QX, as growth rate $XX scale. larger a and In growth ARR, year-over-year at year-over-year, a year-over-year, new six of same percentage we XX represented revenue record, million growth added QX our growing also ending of representing was acceleration quarters. was $XXX the a XX% scale.

Several factors drove performance. our strong line top

growth our $XXX,XXX-plus XXX which maintaining a year-over-year XX% ARR cohort. focus suite record at of consecutive of quarterly or represent third rate continue First, utilize that now large to have We on including ARR complex X,XXX applications. we customers are full is quarter with our of $XXX,XXX-plus operations likely fastest-growing this customers larger more scale. a operations increase our customers serving growth, to physical

accelerating XX% In of QX, consecutive growth. year-over-year representing these the second from ARR year-over-year, grew customers quarter

one a As customers XX% of contributed XX% XXX,XXX-plus year from ARR result, ago. up ARR total mix,

Second, a new this mix customer landing relationships. included quarter and customers expanding of balanced existing

represented customers approximately fast of more of than than that they provider and hard leading including year. XX a consumption sustainability greater were gallons than million realizing reducing and of were new XX which features of and top are the people million, in dashboard, XX Using ROI per States. of clean ACV $X three half New serving is seven net new logos, deals energy more one the Northeastern Samsara's United by fuel EV the million

a of represented than new net the customers million more expansion of a video-based half Expansions was $X to provider. to critical existing ACV, the safety which other infrastructure largest

and realized During mobile reduction in a events speeding the reduction a the pilot usage phase, XX% events. in customer XX%

fewer costs, premiums Samsara. with to fuel to expects and addition all asset accidents, insurance lower In utilization this reduce customer improve

most new third, executed QX we across drove our performance, And while several also well core businesses our frontiers. of

In and five strong markets school deals. five momentum, QX, and customers including saw becoming of our top local expansion governments, and for two Samsara. are top of increasingly our two important For example, districts end new sector we municipalities public state

non-transportation addition we utilities, in end and QX, XX% QX In particular field ACV of verticals, market strength year, see to and sector, new net from services. growing from diversity last with continue in came energy, XX% construction to up public

expansion And in ARR $X to more have to QX, including non-vehicle monitoring each our and applications. field. million products equipment growing the lastly, to ever approximately million top assets locate in We customer. deal a we largest In we separate contributing XX% $XXX XX monitoring non-vehicle continue year-over-year, of than more now see signed equipment strength and than and three manage used

In addition deliver top as improvements we driving scale. continue to operating across line our efficiency we business strong to growth,

leverage year-over-year, was was approximately higher X cloud, XX% XX%, record support customer a margin costs. FY QX optimizing operating and positive percentage or margin compared capital X% to QX margin million from million $X negative operating negative X% was and 'XX, gross QX adjusted the compared working primarily XX% to cash points QX and continued driven largely in in free QX negative time by 'XX $XX or quarterly improved and for cellular at flow first negative FY improvements.

Okay.

to Now turning guidance.

$XXX FY outlook 'XX, year QX our to 'XX, $XXX of results and between XX% growth. we year-over-year and For and or between XX% XX% guidance be revenue expect full million and million between or and Based we're be $XXX between XX% updated on total remainder to $XXX our year-over-year QX raising revenue the for FY million million growth.

always XX fiscal on As year weeks means to February six includes fiscal instead year calendar Saturday ends XX. a of every closest which X, years, reminder, our the our

week 'XX instead weeks quarter. our As QX, in XX of extra an in XX-week such, FY typical includes resulting

prior was the already points of in current as growth add the as guidance provided percentage X factored expect guidance will extra we which today. our 'XX less FY week year-over-year into than and We well

also don't an extra incur will material the FY additional impact have additional profitability week our an 'XX will week week while of because recognizing metrics a of in expect revenue. key Additionally, expenses we we on

FY performance outlook To first improved pleased of with half wrap the our we remainder up, year. are the for 'XX of and our through the

our efficient of more well world We helping more become growth. markets, safer, positioned the are efficient to and customer we delivering our and customers focus, durable sustainable. digitizing physical With products and are and continue operations

Mike to moderate With to that, it hand over Q&A. I'll

Mike Chang

Dominic. Thanks,

questions Fargo. your up and first We Wells open it's Morgan question Instructions] the The main one to Stanley, by from followed turn, please your comes now questions. line at question When will Weiss one at [Operator follow-up Keith question. limit Michael for today Turrin

Chris Quintero

This deal. Keith for Sanjit, is great monitoring to Quintero that largest equipment Weiss. really Chris ever on see

of does on things? of into that of you What the safety video So make congrats side you push fleet from the doesn't construction into public some that. some recognition like selling can have monitoring learnings it to and the side telematics fleet industries bring more have like set are within sector maybe that where name equipment initial a Samsara on

Sanjit Biswas

we're to really can to about million-plus what with Chris, interesting we bring So equipment excited It think see in expansion over. lessons -- monitoring. $X that is

lot customers most assets could in they with is of huge didn't track that of of know a things fascinating the that of the One equipment. numbers these field all

And where we but GPS thought simplistic, it of really often start. And kind tracking limited so that's their over-the-road to they sounds was vehicles.

So cases, telematics. that many in will expansion that start we're talking about, with

The them around asset differently. you I'm the in largest for we're bring in should to it's serve construction, of lessons or utilization, some now your over six doing you the to that really able proud vertical U.S. And we of mention understanding top ROI. but to newer of industry are say construction a What be XX utilizing are us, terms companies your assets remarketing

track of just many So can an we that more foothold that them, education it's than do have journey vehicles. traction. they their But for or

Chris Quintero

then, helpful. QX revenue there with a back there guidance Very Dominic, call anything of kind for lower perspective? to of Is QX seasonal growth a growth implies end of seasonality it. And seasonal out normal more Got rate. than implied from

Dominic Phillips

Well, QX. revenue and is QX guidance growth we I and throughout uncertainty a instead hit. have the de-risked. the in I'd of the feel XX-week macro guidance There's will in be that the going used that in we're quarter we've again that to therefore, of impact implied so also philosophy week that think quarter frame also highly and this front year, week an would to that is extra able XX confident QX, guidance revenue that us, reiterate on number I in this our still just to similar includes a

Mike Chang

from Matt comes Fargo, question next followed Pfau Wells Our Michael at Turrin by William at Blair.

Michael Turrin

Great.

of some seeing maybe just the of as results new that the quarter, point help The few just any just surrounding on there's back that's you'd commentary starting of we of to anything if the had event year, year out ARR. helping seeing, there? outsized At continued first momentum net key and second focus a top the we're out wondering on had coming a straight you look back the drive performance I'm we're Beyond the support months midpoint

Dominic Phillips

Michael, Dominic. it's

couple get just over of I last of in think us we've that investments the strong have made a increasing. ROI, to first I the half start the the think years off really really And helped year. budgets able are operations customer hard broader leaders and two demand, budget. operation to I of the we're that call fact the increasing their three provide customers' that technology fast our are generally

back-to-back a called we're made and in large of investments of logos and some But newer we've balance lot equipment areas then frontiers like monitoring. sector, expansions, up our and a of ads, customers new public we and seeing record quarters between the

first think we've been seeing investments those of are those year. we're continued momentum just the and making a I over for in businesses the So couple of years, the half

Sanjit Biswas

We through large saw it Beyond. record add just momentum. that operations, customer this many just Dominic these I that's large a in systems. they're of connect physical data the at really customers couple complex our platform, system now that of other have their can to using into for and if And we physical things And Beyond. operations heard mentioned it of come

six put that's in big getting to us tailwind into systems another this data more more just have than they're average. So And for on, visibility. number connecting we interest and a appetite is on

that a as I for a so think that in is the market. really And unique us we tailwind functioning that's position have a

Michael Turrin

free That's one flow. great. just And cash maybe on

You hit a big milestone just there.

lot to year to focus you're on. half of back effectively there suggests for at. guiding the for look back We operating in much put I Some have get seasonal half know of the help back of the currently are efforts year. of supporting history to the that don't last commentary a breakeven the a of levels

that trajectory Dominic, on, going there you important we of So cash just anything pace that flow now reached you've should expect seasonal you and from comment profile think the the the can about milestone. forward on how

Dominic Phillips

Obviously, quarters, predictable recognition. stuff at Yes. or like that end the there's as of revenue it's of the happens free quarter, flow, cash seasonal ratable at beginning with

the quarters, strong focus is be full that in kind to only to the free and the but going see full really we're of for and well. goal do year, -- free we to we the our flow the did confident positive, as flow we're back cash of and not on breakeven we feel so, can cash we'll seeing we but QX, think I And year year, in half in as few quarter for last the

Michael Turrin

Congrats on a half. strong first

Mike Chang

by Pfau question followed So, Blair, Matt William at our next from Auty comes Sterling MoffetNathanson. at

Matt Pfau

top on XX the from ask of that customers. seven new first I deals the wanted to were

I think that? to larger But well significantly mix it's bigger if but historically, I back very the are first I'm some mean, driving factors you if quarter. as And compare. combination it's you upfront, that point from what look would does to? anything up as signing making up, sure customers commitment that's were how a of customers

Dominic Phillips

back I you then we're at kind flipped new it like to it of net Yes. think I expansion. logos go it than was QX, ACV XX% parity. mean our new now and if expansions. in of QX, came And And from was more

XX% of new kind So XX% expansion, logos.

net that the way ARR commission much the can, and care again, it's as getting we whether existing new we same to that and logo an comes or just about expansion to -- a possibly force, new our compensated they're as from ACV we drive compensate overall an and rate. sales So customer,

very a which the balanced driving you're net last for can But pretty little few the ACV. of quarter be lumpy again, new quarters. are logo a bit these us. it's strong And new right, so, over been of things and more And those two

Matt Pfau

I margin that the Good in follow gross to Great. And up. wanted the just quarter. up to on see then

that back half Any bit back guidance to would the in the decline the in the of you would think implies half? expect that that, reason why a I decline year.

Dominic Phillips

customer support, quarter-to-quarter, below we the focus and there's year Most would going steadily more but making expenses operating a in forward I of focus investors of full business and on leverage I Again, will the investors. timing can the when kind fluctuate. just year would cellular getting the gross margins margins cloud land progress expenses of implications gross again, were line. of leverage margin and around those from more And gross we're and the optimizations out think of come the timing some within results and

Mike Chang

at followed Kash Goldman by Sterling at comes Our next question MoffettNathanson from Rangan Auty Sachs.

Sterling Auty

comment -- the you pipeline and you Can saw And saw last coming look what the through quarters. third of Great. terms coming to the versus quarter? of does what of health into pipeline of in pipeline sales strength and how the development here into that couple kind you quarter maturity

Dominic Phillips

that going I a all bookings of And conversion the fairly step continue the rates pipeline and in to strong generation pipeline we consistent. was especially would and to the good QX Obviously, year, say we of was back was up good coming consistent. a our half it in way like trust look off free and see the in things conference, from customer pretty Beyond conversion really QX as stable of the and customer demand. and

Sterling Auty

of in need tech the side, At kind tech you the point, should partnerships integrations outside the the kind the question operations next talked one the that we on of this or integration vehicle? you additional systems. adoption from just then outside drive next that either to operations of And about for is level stack, cloud the what six at the looking be milestone terms key additional of on

Sanjit Biswas

we over all, say, partners have would marketplace. on app first our XXX I technology of

continue that sector it's for our Dominic our going out public we've new integrations for that that we investing an always box customers industries. mentioned us penetrate are work the customers. to are There area as is vertical ask these So essentially been well. of more and

I of connect meet new I us always with to piece As like about customers, with. hear they'd a software

getting early data to flow I getting phase this connected of and still that across So we're systems. think in

of As this ROI unlocks, realize customers a data. far our comes to it even lot down think as from helping I more

their first business cases, or some with getting is XX they're this for field they've them, decades out many initiative in the modern not in been back but in For devices of using that or had. and reporting office data big familiar in technologies, operations years, and changing way. the XXX the as They've using

is this value that from I unlock data. them get So more think showing to how even

Mike Chang

at Fish by Our Jim Sachs, Sandler. question Kash Rangan Goldman at from next comes followed Piper

Jacob Staffel

for on Kash. Jacob good Really, is This really quarter.

year. a a call for And this on touch large then, couple started ads. around was momentum, large on momentum the quarter -- that customer second call those force, then new It another can how to of saw existing versus many Is capacity. half with out customer believe, And me. Just very anything there out number? One, large question to pronounced mentioned the anything around in quarter count another bring to record you sales sales additional were of of adds? some customers I that the you last customer

those So believe. I by ramped be should now,

ramped touch would And around maybe expectations? on call reps those how that relative or out anything great. So to new be faring to

Dominic Phillips

Sure.

So Dominic. it's

So, XXX I and more just were like $XXX,XXX-plus new. XX% new were think roughly I new XX% more under think little about logos customers than and QX, were XX% it or In a XX% logos. customers, was XX% existing existing bit the

new balanced, drivers additions, of -- but $XXX,XXX, is in deals so of obviously, more in which the plus logo all So still new logos being bit a seven and quarter. new logos pretty being top those lot being of of of stronger that $XXX,XXX with little over a little a XX bit the terms this line those

quarters so terms sales started It become ramp we more of last sales to ramped. and capacity our and capacity, sales definitely been or that middle reps the have takes really the year. to fully for more In roughly process of in adding

into in as the ramped extra definitely should the saw wasn't with second the benefit quarter. adding of from capacity more kind And go back the along productivity fully we again so we year. quarter of half to in it even have some ramped improved capacity, We fully though go

the we're excited into really year, capacity. fully think ramped half look back about extra the the of I we As

us question and your the more more think I productivity and generally accounts just territories. bring what you as to does for that is cutting do splitting overall people on

And But making pace to that we're forward overall help will to half. in be we're determine looking the tracking out back really from to hiring how so us productivity sure the important here. that

Mike Chang

question followed from Jim at next Fish our Wolfe. Piper Alex by Sandler, comes at So, Zukin

Jim Fish

Jim customers, quarter base you I guys what's base. last appreciate overall Fish, back the kind that versus looked Nice today? how new fiscal where about existing you the Dom, core When of here. in at Or of installed left we share on to the kind do here and you, details XX,XXX how year should actually is be look of QX expansion your thinking customer for of here the roughly versus think penetrate rates your quarter? in and half they wallet

Dominic Phillips

Yes.

million-plus brand-new used relatively would products largest is they were low. of existing and that were licensing and the those customers I they When hadn't I So say the were look still quarter, saturation $X before, two at expansions. expansions in both they

so, assets, And of rolling new or most licenses more a set of generally, out think I customers subsidiaries comes from whether geographies. that's across new broader our expansions

so to see. And additional and see also great was them back products add to come

a of opportunity our lot to I existing for so grow think us And continue within there's obviously to customers.

the shareholder we rates, called stable retention fairly as out again, the On in letter. been it's

$XXX,XXX. our QX, were For customers customers more XXX% of than for large and core ahead XXX% we targets paying for of

expansions our continues part logos, that on a and to XX-XX almost business. again, of be and big new so And

Jim Fish

the public a talked sector opportunity announcements guys here. the Understanding And little follow-up public you while. a more have just side, on and about for Obviously, this sector it state sense. level budget Makes quarter on seeing of government are I what federal the being terms add you this side with of federal there? to of in at point? interest kind the Anything this guess was upcoming flush. from

Sanjit Biswas

and local addressable out lot waste So and is It you management the Jim, these on. roads, actually the centered at services maintaining turns government, this operations running and is because that's physical more kind of market a in are the for look municipalities where of when they're Sanjit. so state

Jersey We you've that's So focus local We primary working about seen of And with announced state State New our is that. and talked earlier. Tennessee the just agencies. Transit.

So well we us focus. some and continue for primary point, to KXX. in state as as will ladder that the Fed, is but our education, At focus to continues which the includes local be grow

Mike Chang

Junaid next comes by Alex Zukin at from question at Truist. Our Wolfe followed

Alex Zukin

okay? you hear Can me

Mike Chang

Yes.

Alex Zukin

Perfect.

quarter the question. helpful. First another in one. ask on really materials of customers, -- want and ask maybe and the customers. really different deck want presentation it I Sanjit cohort well slightly as I the all, great asked to as again, a great insightful just guess to congrats letter largest I Jim on first is which the of a different your

airline I example, the how X called can what to? I is big plus out those biggest that adding of the you're million out your comes the like get value as some strategic things think in customers an one that you of kind investors think guys, non-traditional evidence that what of for level customers. would consider And like customers you for

today. offerings think we retention how Dom. at you're strategic But I've about think your should is in at with can quick If customers become you obviously, share and about look ultimately that new how the that wallet higher you net -- follow-up look that? your for you larger you And potential then launching, got as a

Sanjit Biswas

So customers. be Alex, to with working these we're excited large

are $X ARR. called XX out, over customers we over we million in have As that now

of operations, that's use equipment, deployment terms think piece early with it's just the I call very airline in it's footprint. and The terms in one of case their overall early penetration. we and of really the that the earlier highlighted in

for And just So, beginning I to different lot ROI think explore there's a of possibilities to lot generate we upside. of run room are all a and to the them.

Alex Zukin

new to acceleration Perfect. And then, like marketing combination sales whilst the decelerates. and rare expense ARR growth Dom, see of net it's

sure at like perspective, market point one-time opportunities that you advantage do So unique, going in at missing the not we're all cycle we to special, like there feel or of you're margin incremental where now take a nature? maybe new was seeing level, kind of some there. making from just Or anything in the start an anything you're hiring are to

Dominic Phillips

No.

You're not missing it.

of on think just it's -- sides kind we're hitting of both I this.

At quarters. getting more investing more we're wallet for or ARR of allowed capacity, positive and for the but And more ramping, efficiently is is it been going share. and to to that's the to and have us doing levels with in market strategic ahead breakeven more We been possible. grabbing as and rapidly same forward we're of that and capacity and our high our now expectations. sustaining one-time time, up call becoming last to getting efficiency. sales growth get moving more cash of that we're net is that more as a out, And two lot new even well more accelerate We're we've free And productive able operating flow sales focus customers. nothing

Mike Chang

Our Junaid Derek comes from Cowen. Wood at Truist, question followed by at next

Junaid Siddiqui

Great.

Union, business, Just your UPS, Teamster provisions the if which was included especially that concerns would little as and about bit were week, more some there cameras causes driver-facing safety I any issues? as are Europe, that might your to perspective, privacy ratify a process you these last on companies just from had do which geographies installing probably installation address workers. concern increasing stop how in respect And sensitive devices. with other your stop to like privacy these the bigger of curious new contract thought potentially concerns with you surveillance a

Sanjit Biswas

this is Sanjit. Junaid,

topic to highlight. I think that's an important

of bit large our Almost with we a customers it's whether have others. of all, relationship labor or Teamsters some momentum unions, sort all customer earlier. about First of large talked little

aspects is themselves very sure as as And working with safety on familiar again, things. that, so, alongside the well to the we're employer unions the of make focus with the

right preserving workplace and the direction while I safety privacy. and enhanced in think be moving everyone wants maintaining to

we're data and access how has really devices do, transparent preserved what is, process. to it's cooperative very have And try who around and we what to joint the So, the visibility and it. a

to over and different, of in So, is through we're, sort unions, they improving a concerns a motion tend themes them. in of those Europe. with out in lot familiar and hand because where field a with workers. carries get bit out. market recap, are for deployments we we it same every again, see significant in And safety to And kind Again, seen interested the the their carrying many buy-in the of we've but that work we're of theme now we little scale of the to

Dominic Phillips

prepared I mentioned, saw like, on another Sanjit Supply XX% driver think turnover. remarks, DHL -- echo reduction in just example Chain in as the a even to the

once so, And we installed and realize with a these the technology this of ROI time, a quick very can of customers success period lot get have they technology. in

Junaid Siddiqui

Great.

duration. for Dom one contract follow-up, you Just maybe on

stable and customers Just contracts? wanted opting to for over held has Or last how that couple maybe quarters? see pretty the that's trended are of shorter

Dominic Phillips

It's been customers, three- any very subscriptions We our signed we five-year to change with that. and stable. seen haven't in

Mike Chang

last at comes today Wood question Cowen. from Our Derek

Derrick Wood

and local. momentum to transformation, Or looking to on would of the effect market get little are more bit trying digital dedicated bit some state just building -- And on in kind a touch end more put for and little this in markets Great are there a dynamics get driving it kind network recognition color like to was more of wanted more is I it a color hold? more it the that I'm to in behind here. driving take inflection. -- to those you've just that Is is I'm priority starting what's drivers and resources market? curious,

Dominic Phillips

the public made. sales We motion. go-to-market And industries, Dominic. on One the are we sector. except reps touched is it's all Derek, investments Yes. across -- around you horizontal two our of for

public just team, that have team very on customers. sector the a is We dedicated sales focused

is investment a these an seeing tend the and each customers of effect has including is couple that is network we're up you started more started that the And that one and QX. to to in And talk years other. really the productivity second ramp ago driving to of

land so we're can And customers and both success we those and momentum that have prospects drive able can when success with new of those. other we're seeing lot and then of a reference to

Derrick Wood

shareholder kind I'll letter, sometime Great. guess some of beta ask this users ROI forms. some in And kind I expected year. maybe on the it's connected of I behind that. be stats to GA saw and

when what maybe terms terms or you of could needle takes on in a it that any more whether longer, hold? think next mover happen of year for curious, and comes revenue take be you could more something Just could initial color out, of it in interest

Sanjit Biswas

kind operate, our loop customer other This find aligned spending we time Sanjit. customers, and help this of their really ways that Derek, running out. feedback is how is So with with which operations understanding is to to

example, about to safety that they safety, thinking forms and do seeing safety kind or do something forms Connected managing we're that is being aligned customers and our core about of OSHA able workplace of their business, also are to for be thing. very other checklist as safety with closely thinking these that fleets forklift same

one to on. focus that's So, be that going we area

and build to say, will though, I early. for takes towards is it end year, us This very going to of the GA some up. the a it then product it's time be

excited we don't cases, there's it think term in be a about the to the pen-and-paper are for world use much but to I these going we're optimistic of long I there think about of revenue the year, in so and be customers. it, in but it's operations So, compelling there's so ROI line our going because process huge out many physical coming

Derrick Wood

All it. another quarter. great right. Got Congrats on

Mike Chang

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

We Nashville the of Communacopia Sandler to you Goldman go Before in the we'll in Piper be a Technology hope person XXth. on these Sachs Francisco on Growth announcements, in Xth San conference one let Frontiers September in Wolfe few I San events. short the Xth, Conference have September on see Francisco September Conference in attending and

today's That's meeting. it for

you at questions, can follow-up ir@samsara.com. any have e-mail Thanks everyone. you again, If bye

Samsara (IOT) 31 Aug 232024 Q2 Earnings call transcript