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“We achieved another strong quarter of durable and efficient growth at a greater scale,” said Sanjit Biswas, CEO and co-founder of Samsara. “Q2 ended at $1.264 billion in ARR, growing 36% year-over-year, and at a quarterly record non-GAAP operating margin. As we grow our business, our data asset also scales. We’re proud to have achieved an important company milestone this quarter—we now collect more than 10 trillion data points annually on the Samsara platform.”


	Q2 FY2025			Q2 FY2024			Y/Y Change
Annual Recurring Revenue (ARR)	$	1,264.0		$	930.0		36		%
Total revenue	$	300.2		$	219.3		37		%

GAAP gross profit	$	226.8		$	160.4		$	66.4
GAAP gross margin	76		%	73		%	2		pts
Non-GAAP gross profit	$	230.8		$	163.7		$	67.1
Non-GAAP gross margin	77		%	75		%	2		pts
GAAP operating loss	$	(58.2)		$	(69.8)		$	11.6
GAAP operating margin	(19		%)	(32		%)	12		pts
Non-GAAP operating income (loss)	$	17.6		$	(5.9)		$	23.5
Non-GAAP operating margin	6		%	(3		%)	9		pts
GAAP net loss per share, basic and diluted	$	(0.09)		$	(0.11)		$	0.02
Non-GAAP net income per share, basic and diluted	$	0.05		$	0.01		$	0.04
Net cash provided by operating activities	$	18.1		$	7.7		$	10.4
Net cash provided by operating activities margin	6		%	4		%	3		pts


Adjusted free cash flow	$	13.1		$	4.7		$	8.4
Adjusted free cash flow margin	4		%	2		%	2		pts

We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with generally accepted accounting principles (“GAAP”). See the section titled “Use of Non-GAAP Financial Measures” for an explanation of non-GAAP financial measures and the tables in the section titled “Reconciliation Between GAAP and Non-GAAP Financial Measures” for a reconciliation of GAAP to non-GAAP financial measures.

A reconciliation of non-GAAP guidance financial measures to corresponding GAAP guidance financial measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty and potential variability of expenses, such as stock-based compensation expense-related charges, that may be incurred in the future and cannot be reasonably determined or predicted at this time. It is important to note that these factors could be material to our results of operations computed in accordance with GAAP.

Samsara is the pioneer of the Connected Operations® Cloud, which is a system of record that enables businesses that depend on physical operations to harness Internet of Things (IoT) data to develop actionable insights and improve their operations. With tens of thousands of customers across North America and Europe, Samsara is a proud technology partner to the people who keep our global economy running, including the world’s leading organizations across industries in transportation, construction, wholesale and retail trade, field services, logistics, utilities and energy, government, healthcare and education, manufacturing, food and beverage, and others. The company’s mission is to increase the safety, efficiency, and sustainability of the operations that power the global economy.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements may relate to, but are not limited to, expectations of future operating results or financial performance, the calculation of certain of our key financial and operating metrics, our market opportunity, industry developments and trends, customer demand for our solution, macroeconomic conditions and any expected benefits of our products, and our competitive position, as well as assumptions relating to the foregoing.

Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified and could cause actual results and events to differ. In some cases, you can identify forward-looking statements by terminology such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “goal,” “guidance,” “intend,” “may,” “objective,” “ongoing,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” or the negative of these terms or other comparable expressions that concern our expectations, strategies, plans, or intentions. You should not put undue reliance on any forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. Forward-looking statements are based on information available at the time those statements are made, including information furnished to us by third parties that we have not independently verified, and/or management’s good faith beliefs and assumptions as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this press release may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements.

These risks and uncertainties include our ability to retain customers and expand the Applications used by our customers, our ability to attract new customers, our future financial performance, including trends in revenue and annual recurring revenue, net retention rate, costs of revenue, gross profit or gross margin, operating expenses, customer counts, non-GAAP financial measures (such as adjusted revenue, adjusted revenue growth rate, non-GAAP gross margin, non-GAAP operating margin, free cash flow margin, and adjusted free cash flow margin), our ability to achieve or maintain profitability, the demand for our products or for solutions for connected operations in general, the impact of the Russia-Ukraine conflict, geopolitical tensions involving China, the conflict in Israel and the surrounding region, the emergence of pandemics and epidemics, and macroeconomic conditions globally on our and our customers’, partners’ and suppliers’ operations and future financial performance, possible harm caused by silicon component shortages and other supply chain constraints, the length of our sales cycles, possible harm caused by a security breach or other incident affecting our or our customers’ assets or data, our ability to compete successfully in competitive markets, our ability to respond to rapid technological changes, and our ability to continue to innovate and develop new Applications. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in our filings and reports that we may file from time to time with the Securities and Exchange Commission, including our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.

Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as substitutes for financial information presented under GAAP. There are a number of limitations related to the use of non-GAAP financial measures versus comparable financial measures determined under GAAP. For example, other companies in our industry may calculate these non-GAAP financial measures differently or may use other measures to evaluate their performance. In addition, free cash flow and adjusted free cash flow do not reflect our future contractual commitments or the total increase or decrease of our cash balance for a given period. These and other limitations could reduce the usefulness of these non-GAAP financial measures as analytical tools. Investors are encouraged to review the related GAAP financial measures and the reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures and to not rely on any single financial measure to evaluate our business.

Expenses Excluded from Non-GAAP Performance Financial Measures—Stock-based compensation expense-related charges include the amortization of deferred stock-based compensation expense for capitalized software and employer taxes on employee equity transactions. Stock-based compensation expense-related charges are excluded because they are primarily a non-cash expense that management believes is not reflective of our ongoing operational performance. Employer taxes on employee equity transactions, which are a cash expense, are excluded because such taxes are directly tied to the timing and size of employee equity transactions and the future fair market value of our common stock, which may vary from period to period independent of the operating performance of our business.

Non-GAAP Gross Profit and Non-GAAP Gross Margin—We define non-GAAP gross profit as gross profit excluding the effect of stock-based compensation expense-related charges included in cost of revenue. Non-GAAP gross margin is defined as non-GAAP gross profit as a percentage of total revenue. We use non-GAAP gross profit and non-GAAP gross margin in conjunction with traditional GAAP measures to evaluate our financial performance. We believe that non-GAAP gross profit and non-GAAP gross margin provide our management and investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of operations.

Non-GAAP Income (Loss) from Operations and Non-GAAP Operating Margin—We define non-GAAP income (loss) from operations, or non-GAAP operating income (loss), as income (loss) from operations excluding the effect of stock-based compensation expense-related charges, lease modification, impairment, and related charges, and legal settlements. Non-GAAP operating margin is defined as non-GAAP operating income (loss) as a percentage of total revenue. We use non-GAAP income (loss) from operations and non-GAAP operating margin in conjunction with traditional GAAP measures to evaluate our financial performance. We believe that non-GAAP income (loss) from operations and non-GAAP operating margin provide our management and investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of operations.

Non-GAAP Net Income (Loss) and Non-GAAP Net Income (Loss) per Share—We define non-GAAP net income (loss) as net income (loss) excluding the effect of stock-based compensation expense-related charges, lease modification, impairment, and related charges, and legal settlements. Our non-GAAP net income (loss) per share–basic is calculated by dividing non-GAAP net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Our non-GAAP net income per share–diluted is calculated by giving effect to all potentially dilutive common stock equivalents (stock options, restricted stock units, and shares issued under our 2021 Employee Stock Purchase Plan) to the extent they are dilutive. Non-GAAP net loss per share–diluted is the same as non-GAAP net loss per share–basic as the inclusion of all potential dilutive common stock equivalents would be antidilutive. We use non-GAAP net income (loss) and non-GAAP net income (loss) per share in conjunction with traditional GAAP measures to evaluate our financial performance. We believe that non-GAAP net income (loss) and non-GAAP net income (loss) per share provide our management and investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of operations.

Free Cash Flow and Free Cash Flow Margin—We define free cash flow as net cash provided by (used in) operating activities reduced by cash used for purchases of property and equipment. Free cash flow margin is calculated as free cash flow as a percentage of total revenue. We believe that free cash flow and free cash flow margin, even if negative, are useful in evaluating liquidity and provide information to management and investors about our ability to fund future operating needs and strategic initiatives.

Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin—We define adjusted free cash flow as free cash flow excluding the cash impact of non-recurring capital expenditures associated with the build-out of our corporate office facilities in San Francisco, California, net of tenant allowances, and legal settlements. Adjusted free cash flow margin is calculated as adjusted free cash flow as a percentage of total revenue. We believe that adjusted free cash flow and adjusted free cash flow margin, even if negative, are useful in evaluating liquidity and provide information to management and investors about our ability to fund future operating needs and strategic initiatives by excluding the impact of non-recurring events.


SAMSARA INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

	As of
	August 3, 2024		February 3, 2024
Assets
Current assets:
Cash and cash equivalents	$	159,272	$	135,536
Short-term investments	513,361		412,126
Accounts receivable, net	178,794		161,829
Inventories	38,623		22,238
Connected device costs, current	111,323		104,008
Prepaid expenses and other current assets	38,264		51,221
Total current assets	1,039,637		886,958
Restricted cash	19,431		19,202
Long-term investments	207,705		276,166
Property and equipment, net	57,556		54,969
Operating lease right-of-use assets	72,617		81,974
Connected device costs, non-current	234,354		230,782
Deferred commissions	188,444		177,562
Other assets, non-current	6,398		7,232
Total assets	$	1,826,142	$	1,734,845
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	47,345	$	46,281
Accrued expenses and other current liabilities	59,636		61,437
Accrued compensation and benefits	34,875		37,068
Deferred revenue, current	485,909		426,369
Operating lease liabilities, current	19,398		20,661
Total current liabilities	647,163		591,816
Deferred revenue, non-current	136,813		139,117
Operating lease liabilities, non-current	68,300		78,830
Other liabilities, non-current	9,183		9,935
Total liabilities	861,459		819,698


Stockholders’ equity:
Preferred stock	—		—
Class A common stock	10		9
Class B common stock	23		23
Class C common stock	—		—
Additional paid-in capital	2,524,042		2,368,597
Accumulated other comprehensive income	1,605		1,616
Accumulated deficit	(1,560,997)		(1,455,098)
Total stockholders’ equity	964,683		915,147
Total liabilities and stockholders’ equity	$	1,826,142	$	1,734,845


SAMSARA INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In thousands, except share and per share data)
(Unaudited)

	Three Months Ended				Six Months Ended
	August 3, 2024		July 29, 2023		August 3, 2024		July 29, 2023
Revenue	$	300,202	$	219,257	$	580,928	$	423,577
Cost of revenue	73,365		58,866		141,990		116,423
Gross profit	226,837		160,391		438,938		307,154
Operating expenses:
Research and development	76,476		63,969		149,449		124,335
Sales and marketing	151,493		117,908		298,930		236,863
General and administrative	57,062		48,268		114,750		91,534



Total operating expenses	285,031		230,145		563,129		452,732
Loss from operations	(58,194)		(69,754)		(124,191)		(145,578)
Interest income and other income, net	9,626		10,220		19,710		19,115
Loss before provision for income taxes	(48,568)		(59,534)		(104,481)		(126,463)
Provision for income taxes	1,042		434		1,418		1,361
Net loss	$	(49,610)	$	(59,968)	$	(105,899)	$	(127,824)
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax	(1,510)		2,009		(1,410)		1,096
Unrealized gains (losses) on investments, net of tax	3,086		(1,404)		1,399		(1,445)
Other comprehensive income (loss)	1,576		605		(11)		(349)
Comprehensive loss	$	(48,034)	$	(59,363)	$	(105,910)	$	(128,173)
Basic and diluted net loss per share:
Net loss per share attributable to common stockholders, basic and diluted	$	(0.09)	$	(0.11)	$	(0.19)	$	(0.24)

Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted	553,917,926		531,751,683		551,285,115		529,077,540


SAMSARA INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

	Three Months Ended				Six Months Ended
	August 3, 2024		July 29, 2023		August 3, 2024		July 29, 2023
Operating activities
Net loss	$	(49,610)	$	(59,968)	$	(105,899)	$	(127,824)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	4,633		3,709		9,088		7,193
Stock-based compensation expense	71,604		59,656		136,260		112,604



Net accretion of discounts on investments	(4,296)		(4,404)		(8,289)		(8,623)




Other non-cash adjustments	382		2,053		1,712		109
Changes in operating assets and liabilities:
Accounts receivable, net	(36,022)		(14,055)		(20,160)		6,767
Inventories	(10,134)		10,635		(18,406)		18,803
Prepaid expenses and other current assets	9,025		1,422		12,957		243
Connected device costs	(4,828)		(17,957)		(10,887)		(27,664)
Deferred commissions	(5,765)		(9,560)		(10,882)		(13,078)
Other assets, non-current	619		(162)		934		371
Accounts payable and other liabilities	7,687		3,262		(1,977)		(5,249)
Deferred revenue	34,705		27,094		57,236		50,471
Operating lease right-of-use assets and liabilities, net	117		5,995		100		4,051
Net cash provided by operating activities	18,117		7,720		41,787		18,174
Investing activities
Purchases of property and equipment	(4,992)		(3,004)		(10,054)		(5,503)
Purchases of investments	(187,744)		(182,000)		(330,057)		(374,389)
Proceeds from sales of investments	1,247		4,474		1,247		4,474
Proceeds from maturities and redemptions of investments	155,300		163,719		305,726		340,878
Other investing activities	(100)		(50)		(100)		(50)
Net cash used in investing activities	(36,289)		(16,861)		(33,238)		(34,590)
Financing activities



Proceeds from issuance of common stock in connection with equity compensation plans	16,115		13,011		16,923		13,170






Payment of principal on finance leases	(448)		(467)		(944)		(915)
Net cash provided by financing activities	15,667		12,544		15,979		12,255
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash	(460)		372		(563)		518
Net increase (decrease) in cash, cash equivalents, and restricted cash	(2,965)		3,775		23,965		(3,643)
Cash, cash equivalents, and restricted cash, beginning of period	181,668		216,348		154,738		223,766
Cash, cash equivalents, and restricted cash, end of period	$	178,703	$	220,123	$	178,703	$	220,123


	Three Months Ended						Six Months Ended
	August 3, 2024			July 29, 2023			August 3, 2024			July 29, 2023








Gross profit and gross margin reconciliation
GAAP gross profit	$	226,837		$	160,391		$	438,938		$	307,154
Add:


Stock-based compensation expense-related charges (1)	3,939			3,292			7,705			6,207
Non-GAAP gross profit	$	230,776		$	163,683		$	446,643		$	313,361
GAAP gross margin	76		%	73		%	76		%	73		%
Non-GAAP gross margin	77		%	75		%	77		%	74		%

Operating income (loss) and operating margin reconciliation
GAAP loss from operations	$	(58,194)		$	(69,754)		$	(124,191)		$	(145,578)
Add:


Stock-based compensation expense-related charges (1)	75,746			63,850			147,902			120,643



Non-GAAP income (loss) from operations	$	17,552		$	(5,904)		$	23,711		$	(24,935)
GAAP operating margin	(19		%)	(32		%)	(21		%)	(34		%)
Non-GAAP operating margin	6		%	(3		%)	4		%	(6		%)


	Three Months Ended				Six Months Ended
	August 3, 2024		July 29, 2023		August 3, 2024		July 29, 2023
Net income (loss) per share, basic and diluted, reconciliation
GAAP net loss per share attributable to common stockholders, basic	$	(0.09)	$	(0.11)	$	(0.19)	$	(0.24)
Total impact on net loss per share, basic, from non-GAAP adjustments	0.14		0.12		0.27		0.23
Non-GAAP net income (loss) per share attributable to common stockholders, basic	$	0.05	$	0.01	$	0.08	$	(0.01)

GAAP net loss per share attributable to common stockholders, diluted	$	(0.09)	$	(0.11)	$	(0.19)	$	(0.24)
Total impact on net loss per share, diluted, from non-GAAP adjustments	0.14		0.12		0.26		0.23
Non-GAAP net income (loss) per share attributable to common stockholders, diluted (4)	$	0.05	$	0.01	$	0.07	$	(0.01)

Weighted-average shares used in computing GAAP net loss per share attributable to common stockholders, basic and diluted	553,917,926		531,751,683		551,285,115		529,077,540
Weighted-average shares used in computing non-GAAP net income (loss) per share attributable to common stockholders, basic	553,917,926		531,751,683		551,285,115		529,077,540
Weighted-average shares used in computing non-GAAP net income (loss) per share attributable to common stockholders, diluted (4)	575,967,894		562,834,657		574,561,208		529,077,540


	Three Months Ended						Six Months Ended
	August 3, 2024			July 29, 2023			August 3, 2024			July 29, 2023
Free cash flow, adjusted free cash flow, free cash flow margin, and adjusted free cash flow margin reconciliation
Net cash provided by operating activities	$	18,117		$	7,720		$	41,787		$	18,174
Purchases of property and equipment	(4,992)			(3,004)			(10,054)			(5,503)
Free cash flow	13,125			4,716			31,733			12,671
Purchases of property and equipment for build-out of corporate office facilities, net of tenant allowances (5)	—			—			—			(10,179)

Adjusted free cash flow	$	13,125		$	4,716		$	31,733		$	2,492
Net cash provided by operating activities margin	6		%	4		%	7		%	4		%
Free cash flow margin	4		%	2		%	5		%	3		%
Adjusted free cash flow margin	4		%	2		%	5		%	1		%