IOT

Samsara Inc. Reports 37% Revenue Growth

Samsara Inc. (NYSE: IOT) has reported its financial results for the first quarter ended May 4, 2024, showcasing strong year-over-year growth across key metrics.

The company's first quarter fiscal year 2025 revenue stood at $280.7 million, representing a robust 37% increase from the same period in the previous fiscal year. Additionally, the ending Annual Recurring Revenue (ARR) reached $1.176 billion, marking a 37% year-over-year growth.

Samsara's customer base with ARR over $100,000 saw significant expansion, climbing 43% year-over-year to reach 1,964 customers.

In terms of financial performance, the GAAP gross profit for the first quarter of fiscal year 2025 was $212.1 million, reflecting a notable increase of $65.3 million compared to the previous fiscal year. The GAAP gross margin also saw an improvement, reaching 76% from 72% in the same period last year.

Non-GAAP gross profit for the first quarter of fiscal year 2025 reached $215.9 million, with a gross margin of 77%, up from $149.7 million and 73% gross margin in the first quarter of fiscal year 2024.

The company reported a GAAP operating loss of $66.0 million, significantly narrower than the $75.8 million loss in the first quarter of fiscal year 2024. Non-GAAP operating income for the same period was $6.2 million, a substantial improvement from the $19.0 million loss in the first quarter of fiscal year 2024.

Samsara's net cash provided by operating activities for the first quarter of fiscal year 2025 was $23.7 million, compared to $10.5 million in the first quarter of fiscal year 2024, representing a 3-percentage-point increase in the net cash provided by operating activities margin.

The company's adjusted free cash flow for the first quarter of fiscal year 2025 was $18.6 million, a remarkable turnaround from the $(2.2) million reported in the first quarter of fiscal year 2024. Adjusted free cash flow margin also improved to 7% from -1% in the same period last year.

Looking ahead, Samsara expects total revenue for the second quarter of fiscal year 2025 to range between $288 million and $290 million, with a year-over-year revenue growth of 31% to 32%. The company also anticipates a non-GAAP operating margin of (2%) for the second quarter.

Samsara's CEO and co-founder, Sanjit Biswas, emphasized the company's focus on delivering clear and fast return on investment for its customers, highlighting its commitment to improving their operations.

Samsara Inc. is known as the pioneer of the connected operations cloud, providing a system of record that enables businesses relying on physical operations to utilize IoT data for actionable insights and operational enhancements. With a significant customer base across North America and Europe, Samsara serves as a technology partner to leading organizations in various industries.

The company is set to host an investor day on June 27, 2024, providing additional insights into its trajectory and the state of physical operations in conjunction with its customer conference, Samsara Beyond, in Chicago, IL. The market has reacted to these announcements by moving the company's shares 2.5% to a price of $34.86. Check out the company's full 8-K submission here.

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