IOT - Earnings call transcript Q4 2024

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Mike Chang

Good afternoon, and welcome to Samsara's Fourth 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. Actual results may differ materially from those contained in the forward-looking statements and are subject to risks and uncertainties described more fully in our SEC filings. these we of this and results. future today, no our to fiscal that on are we quarter events statements result fourth our obligation as a discussions law.During assumptions March update some unless forward-looking required make information financial today's call on based undertake of by Any new as call, or of statements XXXX X, include XXXX, will to and like calculated non-GAAP addition We'd point results or for the out in GAAP. measures as reports company not superior to that with financial substitute a in to accordance GAAP financial our of are presentation. press provided Reconciliations in to non-GAAP investor release and measures over remarks, the Sanjit. the and dive opening for highlights then make call the Q&A.With open for quarter hand call We'll up to into I'll that,

Sanjit Biswas

us $X.X thank FY XX% efficient growth. and you, Samsara's another of with joining 'XX billion, of FY for everyone, an durable today. year Mike, ARR growing We and was 'XX Thanks, year-over-year. ended

added our total. During XXX in the customers customers cohort, year, $XXXK+ bringing to large into we X,XXX us ARR

reflects the continued ahead and opportunity market drove momentum us.Several our of factors large execution. of the our platform strength Our

that's First, we're its market digitization addressing journey. in early a large

and more the represent that customers industries global backbone XX% economy. the drive the the of GDP Our are of than

the physical Operations Second, operations we pioneered system for singular Connected to Cloud, market. of record a address this

our challenging problems. most that customers' have we solves Third, a multi-application platform built

last, and a ecosystem our It And have strong group set is a from growing and by includes vehicles, broad operational fed economics a drive and assets scale of third-party diverse We equipment, unique data efficiency. unit and also IoT of increasing data connected sites systems. workers. that

a customer periods operations represents progress partner the continues deliver digitization growth. quarter just We combination customers our of complex at growth, This a group. strategic physical innings large and ARR fastest-growing early we're payback world's visibility operations profitability.We of are the of QX momentum and to our scale, into measured far. In X customers. in our still many so impact the leading for to proud of operating was added milestone journeys, most selling, are our customers' We rare and we years often we're months. While our provide organizations. cohort. $XXXK+ And into with and our record XXX their customer in ROI large fuel clear a of

customers We our into show X ARR a our like million+ customers. large XX momentum cohort.I'd also record to from $X added this quarter with examples share that

new which phone and their deal utility XX,XXX infrastructure. is with our leading ACV first provider of At core largest the new our technicians to usage focused is their XX%, In behaviors seen rolling and which using their their reduced at-risk They're by strengthen themselves, program. already culture, on to Samsara, eliminating XX%. our a team usage mobile to ensure Their our is and is members, significant no USIC of protect public and their is with belt with safety safety ever. underground lines application Safe-Life empowering video-based USIC mark have states. pilot by in largest protect maintain XX the more results. The USIC USIC, logo stops public technicians employees They seat critical utility than safety net and services by locating XX%, to communities. and

is the with quarter a only. Fortune emissions They our costs.The industry. with fuel telematics. second vehicle our across the also are windows with with decking, XXX partnership ago than vehicles expanded and building leading North became customer and locations. American We provider a commercial X,XXX company more for members Telematics residential insulation and roofing, X,XXX XXX across fleet in fuel to a means expect increase lower USIC its siding, carbon This and efficiency less team They

Experience Management Mobile with over expanded they quarter, This applications. million Safety and $X Video-Based of

early X XX% a One values accidents, an reduce XX% In distractions reduction consolidated Experience reduction delivered Samsara, day to reduce and vendors with safe. safety drivers our to is drivers. are exonerate every mobile distracted a saw to events, in risk into which total an events. using pilot in they of They're They reduction Mobile core and Video-Based ROI X driving, to using keep their clear These safety, collision results improve and with XX% safer. in customers. make Management, Safety they

goals.Samsara's is more investing proud data from in partner by achieve more which sophisticated. customers with safely, a grow become and our our cloud, powered values flywheel enables customers' Connected continues to AI-driven are operational to insights our growing sustainably. Cloud We core and their help them to to efforts. operate efficiently, This and of Operations been digitization We've

the recorded more than Over XX more processed calls, XXX data XX cloud than points API trillion our and across more X billion than workflows fiscal last and year, miles our million digitized platform driven. billion

XXX than partner third-party Our App systems. has Samsara's grown integrations to also ecosystem, include with more Marketplace

deliver businesses completely while more our can improve to our more set even money. They customers data also in can and This their growing ability customers operate ways. business operations. saving so action our Our accelerates impact helps new take their insights even drive

in many example, our premiums, lower retention. worker better improved drive fuel costs, asset savings, actions. to our insights use and operational For Operations This of from customers maintenance lower Connected real-time and Cloud hiring utilization, results insurance

Connected operations. platform, we good our culture, with use quarter, connected unique term, help in NexTier finding already Forms. growth.This to largest the A a long each to ACV inspections with availability. expanding customers' and perform, the merged reports geographies. forms. how our to the safe workflow Connected fuels which and our net growing security into are Connected scaling NexTier. with Forms incident company to a general digital and in international on for with through investments of are XX% also Forms multi-product partnership customers is our the of solution second their They've hazardous Connected QX with we are includes released example from recently that our value XXXX our focused using our driver allows Connected been customer considering markets, and application build international non-U.S. Forms and we Forms to frontline increasing coming services workers As readiness.This This necessary is Patterson-UTI their conditions, reduce was strong U.S. risk. weather, in oilfield form new They growth, quarter since road expanded trip us and ensures forms for operational that streamline

continuing frontiers, expand to we Mexico, new gain the customers our Europe. As in we're look to and including Canada, Western future, and

Telematics quarters. culture QX, across XXX and received We positive, last, has to impact construction recognized key Glassdoor safety, us year-over-year are the and step recognitions today, flow protection, XXXX, employees. places one projects core our our the as of data and of partnered prevent values them major It as insurance to data differentiated a our allows and to operating year. ARR civil adjusted sectors. to our achieved help companies this industry-leading an Places and of strong their idling, European They're Samsara customers And transition with products to advance work of services we is wins and Announced using to They our Rule as scale, customer on to of X our many costs, X all in security accidents, XX,XXX with international important management. cash Best privacy XX% thrilled protecting best engineering One and privacy. XX to an we data. certifications. security, electric on our Samsara's amplify and communities. foundation grow and integrity. focus billion lower became In on data in to $X have Samsara free business Safety year.We're quarter over reduce growth, build Samsara we XX,XXX continued over is customers annually throughout local commitment in Work fleet.We've and proud Video-Based ISO many milestone this also sustainability, surpassed demonstrates achieved construction their has of deliver consistently at in and This

on global economy. exciting you industries bringing solutions of deliver they're Samsara be for we'll we also our our another to to journey.We're ways across for at discuss Thank to that the the innovating It We of this the and was and of our value the Beyond, see At annual forward leaders and excited we be delivering the our the modernize and challenges an year in We and June their investors, of at partner physical of joining as serve scale, to operations. operations partners, opportunity increase We're to safety, to Chicago, use operations, hosting Beyond growth, efficiency, our power year, conference XX to profitability. operating us are on combination Investor rare quarter sustainability new and the will state together customers. a digitization. with facing also an you of through many Day. mission building they Samsarians customer XX where to grateful customers, for look customers to on

also to us.I'll will highlights financial new customers. the be over you'll transformation hand We for announcing join our go now over drive hope Dominic further to from We to products it quarter.

Dominic Phillips

of growing of QX highest at added an year larger growth revenue net growth of year-over-year, fourth growth $X.X ARR rate high quarters. scale.QX ARR a growth. year-over-year, ARR of or $XX you, net record XX% XX a period increase million, accelerated Sanjit. or the Thank was quarter same new was sustained also the was compared Ending billion, million another past was consecutive our we new XX% year-over-year scale. quarterly the and quarter revenue over prior adjusted $XXX This XX% to the at

FY growth. of million, revenue year 'XX, XX% full year-over-year, revenue increase an $XXX or For adjusted was XX%

FY week top of quarter, across the was QX 'XX enable typical instead revenue recognition XX-week revenue X FY a and drove a Several the QX. 'XX As impact of performance happens revenue a fiscal removed years, to comparability growth adjusted in QX of strong periods. our line every reminder, additional quarter.Adjusted of factors in XX-week which

representing customers the of First, now on same growth serving growth increase a We focus to at quarterly drive continue large efficient larger have scale. rate and durable enterprise $XXXK+ XX% record to growth, as a year-over-year scale. customers, ARR XXX, quarter X,XXX at last we

where X customer customers previously X ARR year future ago. ARR, within particular a now our and core up customers. at saw from higher ARR with this $XXK+ from To our a last $X representing larger ARR of XX% largest from also align customers total XX, increase ARR growth, customers. accelerating from definition of XX% cohort customers, growth, growth larger up reflect customers coincides from $XK+ scale.$XXXK+ XX our of trend smaller This quarter for years customers. updating lower ARR strength record with mix make a have XX% XX% fastest-growing We represent million+ to investing and and we're we're ARR quarterly We XX% our mix ago year-over-year

total relationships. of this X% Our mix, XX% continue expanding customers just and this ARR non-core landing less ARR, than declining we $XXK of customers ago, mix mix expect and of a existing years down customer quarter with was to new time.Second, from represents X balanced over

For QX. we a logos, of record new and added in large customers quarterly core number

largest all of also And transactions. logos, We $X ever our plus to customers top added new USIC. signed including deal multi-product X million new with our XX

overall booked demonstrate back $X X several record For a of a across were notably million XXth telematics, expansion XX we a the to become million-plus top to existing expansions, large And customer strong multi-product their and quarterly markets. deals and in $X vehicle expansion Safety our signed in this industry, Monitoring, QX already in continued a becoming frontier we the was X construction largest XXXX.Third, using more since than transactions. in customer execution Most QX Video-Based expansion Equipment customer. expansions

at scale. in First, Both regions and geographies, added XX% came new QX of international Mexico to last $XXXK+ in XX% ACV customers ARR sequentially of driven from larger year, and last and to year QX a year-over-year accelerated Europe. number growth record strength compared by compared net ARR a

was our vertical in of record contributed net a new leading construction consecutive XX% QX, quarter quarterly that the second ACV our Second, construction vertical.

monitoring and sequentially increase verticals, emerging to of deal in strength additional that America's last for we Additionally, in vehicle lastly, year. XX% a largest telematics within scale, base.In upsell wholesalers. approximately broader Safety in a expansion both full-service existing QX, XX% at part while our we ACV $X of also customer expansion new of products year-over-year million QX larger grocery And net signed growth North second-largest equipment accelerated one provide and came an from from ARR as non-transportation QX QX opportunities saw Video-Based our

$XX and continued After in business $XXX margin margin was unpaid of support deliver by higher We flow QX XXXX, continued QX approximately also cash by across from to of strong of settlement points note, X% quarterly than capital leverage million. addition our into compared compared million signed points Forms points, functions. margin October QX, cloud, vacating costs. across was in a quarterly general of leverage and X with included a in largely cellular, last XX% percentage NexTier in QX, improvement Connected was we adjusted and all X% we an growth, expansion improvement a $XXXK QX, previously optimizing year, and year-over-year, more X%, improvements in year-over-year, a primarily released availability approximately remaining disclosed the working driven Non-GAAP top driven percentage lease line litigation. XX our operating the settled operating as optimization.Also efficiency X% Oilfield deal building to free more in gross Non-GAAP Services.In last negative we driving QX warranty, payment year, and obligation lease-related percentage And improved operating an in negative cash record X to than to record was approximately scale.

annual the dilution 'XX from nature adjusted is reduced Given finally, nonrecurring it flow. to free X.X% our year by we now equity 'XX.Okay, FY And this to in from excluded legal down almost turning in of cash guidance. it XX% excluded, X.X% FY this is settlement,

enter have predictability as continue more we year our a previous company, third, As we public forecast to and years. than visibility FY in 'XX,

million additional $X.XX be 'XX, week expect growth to $X.XX. performance. be QX full are more to we XX% 'XX FY year-over-year and to is continuing guide, 'XX XX% exact at modeling result, in initial conservative prior guidance the FY finally, applied for the conservative larger in derisked FY to will between growth XX%, EPS various and QX be which X% be was was and adequately and our after expect full same million, XX% macroeconomic potential to $X.XX a our approximately a QX business.For to revenue year operating non-GAAP And and be was than billion, on last less see accelerating 'XX. growth between scenarios, of FY representing in than shareholder beginning to after notes 'XX year, be guidance we it approximately guidance letter.So margin billion 'XX FY of impact As we're to non-GAAP 'XX between the account between total $XXX to year. XX% our up, EPS operating we non-GAAP or while 'XX, And adjusting revenue that between our margin and initial also please a $X.XXX negative between less operating our our and year FY wrap philosophy $XXX also we factors scale, confident of is and 'XX, FY FY $X.XX.For This extra our pleased non-GAAP FY and framework This be year-over-year $X.XXX the and between drive representing analyzing leverage. year worsening for at to X% XX% the with the

the markets, more physical more With durable to it efficient, to with digitizing to helping are I'll world are our and moderate and we hand that, growth.And over customer sustainable. and Q&A. safer, products, our continue efficient We positioned focus, customers well and operations large delivering Mike of become

Mike Chang

Dominic. Thanks,

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

Keith Matt Stanley followed RBC. today question from Morgan comes The first with Weiss Hedberg by with

Keith Weiss

much really net growing I almost frankly, ACV I that's question. mean, component. growth new I've And spent that not net only TMT spending -- little the a Congratulations outstanding Conference the The bit XX% Stanley on a guess all. the Accelerating at Morgan sounds but environment doesn't -- quarter. new great better. that and environment better, And macro much our at seem better the week

which levels was the has right of to not over software these So quarters can within the to just that landscape growth, anywhere frankly we're the last in you now? help else you couple us what accelerate explain get of Samsara and seeing enabled unlock guys

Dominic Phillips

Yes.

to So, that lot I fact selling software slightly companies. maybe But comes than again, other part different the budget down into of think -- we're of take it the first I'll I'll a the that. a

to And into drive resilient. selling hard operations the more real are tends also, are be used our We to ROI. budget, solutions which

and using more deploying the more overall sales we've concerted more are business. into that quarters, the drive to would ramp customers and have to for now effort drove a savings and So, capacity several point internally, safety cost our their And they're sales it capacity even continued productivity. software online out, organizations.And then thing I made discussed find as within we other clearly add and came to to

so those results. of both we're with pleased And

Keith Weiss

it. should the about we the follow-up back year? Then think expansion forward on the of maybe Got fiscal of as into a that. capacity sales How

Dominic Phillips

grew -- headcount ending that I at 'XX we XX% we've 'XX. say similar grow just got in I'd our headcount, So rate. least big under at our we will in Again, FY opportunity. a at market would FY say

aggressively X/X, still net that quota is previous of hiring will lead 'XX. about overall into investments just portion future Similar additions our FY for headcount into marketing. we're will go sales growth. that and X/X so years, And capacity And to of a to under maybe

Keith Weiss

Outstanding.

Mike Chang

Our with Zukin followed Wolfe. by with next Alex from Hedberg comes Matt RBC question

Matthew Hedberg

Great. well, I my a strong as congrats here. year offer really

important was is how put what's a The other think growth can thing durable factors are finer the you driving do And that me what guess, stood large -- customers? like in most success And on large with these point I driving strength? out to customers. you the that

Sanjit Biswas

They companies. drive operate other routes, of problems very I they more a very, to is back prepared operational be TAM. a say to this trying digitization. focus large Sanjit. remarks, have and their on innings we assets figure $XX lines. billion you to operations so ways and they're be market my physical and to sustainable.These but growing these more opportunity. to business, They are safety, customers, finding large talking challenges out their would they is a out year-over-year. speaking, they're They're think reduce This Matt. I real-world complex if risk operate Hey, evergreen on safety would how efficient sophisticated, are the how front to their largely Those they It's terms in about relate in of of We're these early how in words. lot they're XX% say problems. And operational trying

go this think So time. on for we can that some

Dominic Phillips

on mean then accelerated year-over-year growth I our Yes, just largest fourth that This deal for to add is the we quarter for obviously, And ever that, we signed obviously, had new $XXXK+ with quarterly additions. USIC. customer million-plus net the $X a consecutive record customers. we ACV

And we're so with momentum lot large seeing customers. of a

Matthew Hedberg

Exciting for Dom, you. stuff. one

about don't I'm But You growth, of ARR you relative of could building with guardrails think sort to to your adjusted if to guidepost us some ARR. wondering guide any growth revenue blocks, maybe the or help target.

it for was I XX% to the think XX% year.

Dominic Phillips

just I grew ARR, year a growth $XXX first, scale. much in X% million off came really We and obviously, XX% incremental 'XX. a FY added at 'XX, of in mean acceleration ARR net from I at obviously would new we say, Sure. larger that's FY strong an year-over-year,

also, We're in at we notes are 'XX. can FY macro pointed QX a capacity. our still this growth that uncertainty, new -- net lot we new highest we obviously As prepared that I said in XX monitoring sales remarks, that that modeling seen out quarters. and the of least in was we ARR match as last net we And adding of ARR in think we've my the amount

But we headwinds sales and so, fruition, to that to more. rep capacity continue if added add come like the to we're the going monitoring those And productivity. we've don't

out year, think about we're better start and we say I 'XX. the So way how that's it thinking we'll have through our FY visibility as I'd to make

Mike Chang

next Michael comes followed Fargo. from The question by with Wells Alex Zukin with Wolfe, Turrin

Aleksandr Zukin

your are largest kind also what meaning I of getting more newest on new previous remarkable and be guess products accelerating had a than even Congrats XXX,XXX deal, you adds, your trifecta cohort sales faster of traction, net seems products. of truly a largest a of amount to quarter. cycles,

more help incremental a X what's continuing kind playing it's larger the of of and of us from of comprehensive ever? lands, largest future like of land to Is productivity selling the see will just those on driving reps? all -- you basically to don't that of understand kind maybe dimensions, a at reference now those be things that meaning cohort So, that package know, a platform customer therefore, you're how Or either a I the significance and start, together? potentially of continual growth, meaningfully lot higher the are

Dominic Phillips

Dominic. the overall it's for and Alex, think say ARR also -- ARR growth ARR, I important safety to core Hi, accelerated, would that products, year-over-year know sequentially. I that just the the accelerated it's our Telematics

many strong it emerging and quarter. deals, specifically, multi-product of So customers starting we of our be top call was But XX transactions. all very see the I XX were to are products a some these of and that Telematics customers. safety out attached new new

to more opportunities Forms sizes. scaling think it's Management, a into us I we're for it expand just whether and or gives lot of equipment us so, to a just existing expanding customer new an are new monitoring deal more Experience the that products value opportunities adding, Connected the Mobile customer and for customers, create And

Aleksandr Zukin

then Sanjit, Perfect. maybe one And for you.

would new think monetized to AI anything AI for there I of data potential is be on amount You kind any backdrop a the June. -- some of of later has exciting year ridiculous your coming products referenced in on use of with customers, platform the And guess, I this it cases great further on generative guess your potential in platform? data that to that of exciting kind to the about layer or corpus

Sanjit Biswas

are I'm come data what same are leverage planning ridiculous fantastic. like to They the other. for. customers running Absolutely. sharing these with good the And all That's line. on to amount absolutely platform, us use that data that That's each platform. of to applications have to going of the Alex, We

and it released they like about MEM we've digitizing how And operations you Equipment a give if case, a Forms, lot sense basically to use use is the Monitoring, Connected of we Forms that. Connected applications just newer leverage the We context. form is fill out thing. maybe what the workflow. know maintaining of And also know We monitoring. that that lot sort the automatically a is. be, of We operational these and fields speed the they're AI should you we of can and paperwork.And have up where asset generative or next can what user even understand of in of Some we their think step sort can

a but products little June. a to bit encourage that's and Beyond you the So of about to preview, come I all would hear in new

Aleksandr Zukin

We'll do.

Mike Chang

question The Fargo, Turrin next Cowen. comes Wood with from TD Derrick by Michael with Wells followed

Michael Turrin

the and Dominic, over in in just to the the factors But like what visibility providing year. there time? guide. of sounds conservatism mentioned last it's the at just rationale progress better alongside you start considering remarks, relative you can saw walk It continued us the what's we through letter less the and you're

Dominic Phillips

we on stress, this as that I again would guidance just same provided company. year commentary, the just QX playbook. a is public call same entering our third we're It's year, the Yes. same framework last

forecast year, where post-IPO. need in we during guide less than than more year it our have during first did therefore, our We at predictability we conservatism less that time need we needed our second and

of as could guidance an we a have throughout operating demand. the just guidance opportunity want not comment.At that run headwinds, commentary on we're that years, our been driving do the obviously year. future really be won't in impact that it. that have the can macro previous rate see FY don't time, uncertainty is 'XX. And that If derisk regardless to at just confident, the number raise of the going sure And we've make is recognize and so has different want and downside reiterate into appreciate happens as we that I that we to that seeing and what we just well. initial would there's investors it hit plan well, this to It that same the what's we our on scenarios We're macro same

Michael Turrin

unchanged, Well, expansion and that even makes letter sense. your XXX% mentioned XXX% scale, increasing are the The also target. targets at

us versus keeps just consistent within evolution the So product bucket core And how of about just over think time into relatively those durable model on with the of the some spend with underlying expansion and here? cross-sell drivers time? can rates expansion you we products the that what expansion holding emerging should

Dominic Phillips

mix Thanks. just and new consistent came a net balanced Yes. expansions, ACV our expansions. had logos this XX% new from net XX% from within really We new logos. In quarter, of ACV new of

consistent. doing existing customers So, of phased a into or of mix And new employees within to where upsells really expansions, as the that's as there's been very both healthy assets set products a they're broader then a of products. rollout well existing cross-sells across

obviously, confidence as of more products, new of more many product and velocity, I our increase larger us think then customers, upsell roll so confidence. And and And gives the and our will our we're us attach growth. have we to in time seeing durable customers out over that that allows

Mike Chang

Blair. by Cowen The with Wood followed William next Derrick question Matt TD from comes Pfau with

James Wood

one to look talk what set of I of mentioned vendor customers of consolidation amazing pretty market? the category older on And a that of was pitch just company. kind like taking around landscape about of Sanjit, you with think that talk vendors just Congrats amazing you've like legacy displacement existing of that sizable you. value an the in the That's those than Is just there? with you a does enterprise an with enterprise then mobility a solutions vendors? software market historically about And consolidation products start management is to different competed itself place I'll with the what solution. roofing bunch of Interesting telematics what looks displace to today? year. get Or against. about like mobility hear Can it quarter, a an management points

Sanjit Biswas

Sure.

that's customer, terms you it's solution it to really more moving of Experience our our tablet works able it's in hour, for vehicle the that it's is lock So Management what's the rest that the threshold. the of can a in Mobile connectivity an on with XX miles if set way The a than in data platform.

can something workflows. customize example MEM can with We that's those legacy integrate that that So an also we can do can't. screen. We an the existing of player

So IT to project. for as as there's operations buyer the needs and most the user it's there a the something needing lot a be targeted that customer. to take importantly, And on opposed operations to to

manage buyer to can apps they're So the we problems. it to need who And these it's their -- not that the real-world helps saying some we to road, solving we they improve had job, where very We're they're use a operations. of we're devices a us on they in really safety. wish be there can that way couple with coming on distracted only the is

the time into So, there I we're the say, at think it's very right generally our rest also would offering right you we're are terms unique said, the buyer.In our Like at of in fragmented. speaking, connected platform. with landscape, but I that operations in the that different it's place players, of connected

James Wood

now? vehicles, this Dom, now vertical don't makes [ about in construction And how ask you I for Got into wanted others or locations? ] quite about guys, X quarters you into not in that's selling stand helpful. I And momentum it. and That are the vertical, I beyond seems humming video but know for row. to right whether feeling What the guess, video, is out a site but above you like nicely

Dominic Phillips

Yes.

that vertical like industries some last been up success had and every commentary selling into kind a make don't the quarters, GDP. majority And we've global year of construction our then emerging has point that point our stronger. public physical sector, products industry seeing one Connected MEM XX% products, And equipment we've really quarter think called of of set of out. sector these that have broad a just the that in making Forms. over X telematics, of this of ARR. and the the products operations verticals, to And makes And the customers we're we of safety we're I up industry newer of within lot of some and all

largest customers in upsell customer is mentioned since the the that the so vertical. And their construction XXXX that on did they our XXth call, now I

you quarter, overall mix. in kind deals that new when definitely that so like chunky get that the net And some helps ACV expansion of

Sanjit Biswas

If where that is not would little say the in underpenetrated. the industry product. relatively vehicle, the of had I add customer a can I legacy adopted a Safety application speaking, Video-Based bit also, segment we're a This perspective it's

So, value for first time. really they're the seeing

about excited when the customers when have very they're lot over driving So job from shared it. the to actually me And occurs around. the of they're when they're road. many risk It's site, they're driving that with and driving a

is construction customer. not or Safety industry a an where of it's use case, for we while solve So, the lot problems typically exciting Telematics can considered a Video-Based

James Wood

Awesome.

Mike Chang

The William from next question comes Matt Pfau followed with Truist. Junaid Blair, with by

Matthew Pfau

on results. Congrats the

fully being the in that better $X are within potential the opportunity First, remaining customers a plus in just doing of those of plus wanted there at Is $XX there? point customers plus to million million get the they ARR? what portion sort to million these Or, of penetrated? understand ARR, is to good are $X

Dominic Phillips

that go now Definitely would done customer largest expansions just XX not penetrated. back fully since to customer Again, the XXXX. I overall. They've our is

opportunity, our whether of newer their of grow cross-sells us lot to these ACV some within new of largest opportunity some phased think it's existing of And expansion that rollouts of products a overall or these gives net accounts. products so I more

size million average. I today they think multiples can are within many on our that the customers, they $X plus be

Matthew Pfau

it. Got

follow-up previous you bit shift quarter-to-quarter. initial customers you any of sort on question. new And a even Historically, land sale, material existing new with customers new But around expect a your split the longer do roughly term? in that and and a customers net split as ARR in between larger move has larger on been

Dominic Phillips

retire don't customers. to it's we job expansions. to ACV. logos versus new our because sell expanding sales landing they're clearly pretty on interesting play know It's new don't incentivize organization and out. They going balanced how quota a new I doing And of existing net

wallet just to want rollout in as time, We lot phased I like we that, be they And existing to today have potentially expand skew balanced. than the more many started can our consider expand so logos can.I see it we new it because operations over other, do think assets. obviously, to We customers as of we larger think of to the more happening our within exactly. way a more we share complex a customers if but in much need we one it's that future. tend could

mix more our balanced more And of so very over customers, our net expansions couple push that last of new ARR could and larger as years. and over the mix to it's more into ACV moves of the been time, but

Mike Chang

Truist by Jim with Piper Sandler. The next Fish comes question Junaid with followed from

Junaid Siddiqui

quarter gross strong exceptionally the had line. You margin an on

coming I about of to leverage going gross is that most think margin talked you've the below the be line. before

going maybe in? forward on well? should see as the you expect strong could should we expand still if of most performance leverage gross coming going just margin So, forward, we Or

Dominic Phillips

and you results X year-over-year, operating mean, improved margin saw gross year-over-year. the XX improved but even I margin percentage QX, in points points percentage in Yes. it

we expect marketing, lower of we will And the OpEx when so out continue operating scale. G&A more than dollar come more come the our or I the and more primarily. cost grow obviously, sales ACV land much Again, dollars. what renewed as of future to it and is to to expand is to then on think from we And continue that's in sale expect leverage and leverage of ACV a that indicative of of leverage

And so too I leverage. that's I for investors think point looking to where additional would

Junaid Siddiqui

you just a lawsuit Is And Great. us update there on any Motive? follow-up. the that can against provide

Sanjit Biswas

take that I'll Sure. one.

it's update, a suit. recent In terms relatively of

patented was This were copying gaining senior of IP. product, our leadership of terms patent team update seen investment why big access, a is many to those of features filing in we've no the our in context is that innovation suit in protect even we're features. platform, of claim. infringement our So their And and

But on of we there's So information today. micro more that's are our kind where site.

Mike Chang

from comes by followed Fish Piper question BMO. Sandler next Jim with The Daniel with Jester

James Fish

Great quarter, guys.

You internationally. doing well guys really are

new in where Dom, smaller I to it's out. think what alluded going you kind Are to point you Is where be you new this really more headcount of any this At there year? of aggressive regions, to be it do supported added? in ACV called just or in? was not get that going geographies XX% other net additions. Is

Dominic Phillips

No.

opportunity feel in us. I market front we've lot a of like think we of got

market those another geographies. of and addressing. with I but is we've opportunity side lot got the Europe, just a and where the we That's product But market, in feel allocating enough focus the regions. in within current Canada we're regions all, Europe Mexico, opportunity Western development key of area key capital. mean, -- countries where like U.S. got we're more And then is core First like that market we the we've our obviously our feel Western on

James Fish

sense. Makes

And customers, of versus Just opportunities you question, upsell, of the as a follow-up opportunities cross-sell contract? renewal see of year? entering the guys typically I horizon to year earlier pipeline some you are larger do on Matt's mean, throughout there any the the kind last with how these understanding the large life

Dominic Phillips

the lot nailed look our terribly that than previous and and we've the has years. renewal we're success. off QX. last 'XX of motion driving feel We of the down that's of conversations that really over FY doesn't in It different demand building And and years, it about the we good a kind customer having, in momentum couple demonstrated

FY heading we so -- And feel into again, feel good 'XX. we

Mike Chang

BMO question followed next comes with Jester Materne Evercore. Daniel Kirk with by from The

Daniel Jester

a Maybe way. earlier to different on follow an Great. one maybe in up

mean You is after renewal after happened prepared Is which was actually sales you expansion big kind to And that in Are change? big a -- X it really the to signed. new customer quarter of the really go speed of reattack able case? customers? unique seeing these highlighted the of or really have in remarks, one-off you impressive. quarter at I sort a velocity there X that capacity? the and is Anything of terms this speed due sort you're a of Is expansion that different

Dominic Phillips

is of internal where the sales of digest how kind -- depends really is can or customer think much that don't It think upfront. resources their I kind and on cycle products I platform the and they different. of every

so some phased And move take customers some a very, customers are quickly with approach. deployment, more very able to rollout

not of seeing we're project to so kind really It and down any customer differences readiness And prioritization. comes really there.

Daniel Jester

comment vertical. underpenetrated industry And then Great. up the earlier Okay. being follow to about helpful. historically of more a on That's construction sort

any the across verticals you potential look in going you'd year you see see are the direction a there others or how in you're today, progress change out XXXX? of As opportunity call to that the where

Dominic Phillips

a creates I a others. really Investor percentage within than And out industry of show by few don't seeing not at this we Day, been pretty It of stand But around individual usually vertical. points that we'll ARR we're so. consistent. one it's think anything within moves our mix mean catalyst vertical specific I verticals. more chart pie kind

going I having that's since would end think the been be many horizontal different that used founding really well. case markets. kind FY we're by this as that's and platform very the to focused the on I And expect the of of 'XX of case company into applications

Mike Chang

Our question Materne Evercore. last today with comes Kirk from

S. Kirk Materne

that could a operational having your off of want I'll the to wants access the if And data in platform. imagine, echo the little get have at Sanjit, legal up wondering data are imagine the the that you the the congrats bit I people idea have I folks, you on was customers just to as or $X the -- coming cases, this, ARR, on accessing finance of plus some to expanding beyond comment look quarter. in operations to the in are platform. platform meaning, your I million

talk get just it? of an surface operations. could can organization within just terms So Connected that it on even into go you what -- we're outside from means in longer-term terms like in of getting of to a about scratching sense you perspective a the Forms trying where feels I'm

Sanjit Biswas

Yes, Kirk, would we with agree you.

system. to many are personas enterprise large different in the use So, there customers,

the back-office fleet that the and dispatchers. be have You'll managers folks might

equipment, that teams You can bunch will we with of using a necessarily of tied expand managers on Connected of eye construction that the have horizon drive do said, vehicle. It reporting cases this go carbon from to can tax an a asset where with Forms, through. of to equipment, see we is to sense, to product. and we've And start like a on sort then of utilization you seeing you use the do that And data on. what we kind things like everything got we're so in reporting other thing. different finance But keeping asset already not

kind exactly that lean that's of platform think expansion user with into terms and to expansion excited products I in new we're right and forms. So, of like

S. Kirk Materne

guess about just you go-to-market the those regions? adding overlay you'll within That's people, up. broader feeling finish we Obviously, sales 'XX? how, just year. Can the mix changes fiscal any are a expanding salespeople if or changes about into real go-to-market a one And helpful. question, really head quick as be this existing to there's to I talk how lot the any Dom, to more folks just the more just just to is, you

Dominic Phillips

major is products. We working No Look, use Yes. Hey, don't Kirk. overlay for clearly sales the changes. go-to-market well. really motion

like again, changes And public or we but our so markets, into specific scale, changes. kind major like emerging frontiers, every our as but into prepare some verticals and geography of year, Capacity we some evolutionary for that's wholescale more the changes of changes. more no evolutionary going core more but have large will a sector, whether industry also than

Mike Chang

All right.

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

a short have few announcements. I go, you let I Before

an attending Software e-mail so on Fargo to attending And hope Symposium person. are send you're then in interested hosting Investor Please to be the we second, see if you Wells our in in we we'll ir@samsara.com on XX there. Day April First, XX, June Chicago.

that a for have link a IR it live broadcast. prefer web website attend to those to For our today's That's virtually, will meeting.

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

Samsara (IOT) 7 Mar 242024 Q4 Earnings call transcript