Summary
Samsara opened fiscal 2024 with first-quarter revenue of $204.3 million, up 43% from $142.6 million a year earlier. The quarter ended April 29, 2023, and the prior-year quarter ended April 30, 2022. The company ended the period with annual recurring revenue of $856.2 million, up 41% year over year. Customers spending more than $100,000 in ARR reached 1,375, up 53%. Management tied the top-line gain to a larger customer count and more purchases of subscription offerings, including additional applications, by existing customers. Subscription revenue makes up roughly 98% of the total, with the rest coming from replacement IoT devices and professional services. Samsara sells across transportation, wholesale and retail trade, construction, field services, logistics, utilities and energy, government, healthcare and education, manufacturing, and food and beverage.
Gross profit rose 42.5% to $146.8 million from $103.0 million. Gross margin slipped to 71.8% from 72.2%, a decline of 0.4 percentage points. The company said margin held near 72% mainly on operational efficiencies in infrastructure costs, partly offset by higher IoT device costs. The operating loss widened to $75.8 million from $70.2 million, an 8.0% larger loss. Operating margin improved to negative 37.1% from negative 49.2%, up 12.1 percentage points, because operating expense growth trailed revenue growth. Net loss narrowed to $67.9 million from $71.0 million. Diluted loss per share was $0.13, compared with $0.14 a year earlier. On a non-GAAP basis, gross profit was $149.7 million, the operating loss was $19.0 million, and net loss per share was $0.02.
Cash generation flipped positive. Operating cash flow was $10.5 million, against $48.8 million used in the prior-year quarter. Capital expenditures fell 76.6% to $2.5 million from $10.7 million. Adjusted free cash flow, a non-GAAP measure, was negative $2.2 million versus negative $50.7 million. In April 2023, the company settled a lease dispute tied to leasehold improvement incentives and received $11.3 million in tenant allowances, which lifted operating cash flow. Deferred revenue climbed 36.4% to $449.9 million, and remaining performance obligations rose 37.6% to $1.52 billion. Both point to contracted work still to be recognized.
For the second quarter of fiscal 2024, Samsara guided total revenue growth of 34% to 35% year over year and a non-GAAP operating margin of negative 9% to negative 5%. For the full fiscal year 2024, the company expects revenue growth of 33% to 34% and non-GAAP net loss per share of $0.02 to $0.00. Fiscal 2024 is a 53-week year, with the fourth quarter carrying 14 weeks. Samsara plans an Investor Day on June 22, 2023 alongside its customer conference in Austin, Texas.
The company named several risks. Macroeconomic pressure, including inflation, rising interest rates, supply chain disruption, and volatile fuel costs, could weigh on customer spending. Samsara also cited the Russia-Ukraine conflict, geopolitical tensions involving China, and the COVID-19 pandemic as factors that could affect its operations and those of customers and suppliers. Other named risks include silicon component shortages, longer sales cycles, a security breach, competition, and rapid technological change. Management said it expects to keep incurring operating losses and negative cash flows from operations for the foreseeable future as it invests in the business, and it may need additional equity or debt financing that it might not be able to raise on acceptable terms.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2024 | Q4 FY2023 | QoQ | Q1 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $204.3M | $186.6M | +9.5% | $142.6M | +43.2% |
| Gross profit | $146.8M | $135.0M | +8.7% | $103.0M | +42.5% |
| Gross margin | 71.8% | 72.4% | -0.5 pp | 72.2% | -0.4 pp |
| Research & development | $60.4M | $54.6M | +10.6% | $41.0M | +47.3% |
| Sales & marketing | $119.0M | $96.8M | +22.9% | $87.4M | +36.0% |
| General & administrative | $43.3M | $43.7M | -1.0% | $43.7M | -1.1% |
| Total operating expenses | $222.6M | $195.0M | +14.1% | $173.2M | +28.5% |
| Operating income (loss) | -$75.8M | -$60.0M | -26.4% | -$70.2M | -8.0% |
| Operating margin | -37.1% | -32.1% | -5.0 pp | -49.2% | +12.1 pp |
| Net income (loss) | -$67.9M | -$53.6M | -26.6% | -$71.0M | +4.4% |
| Net margin | -33.2% | -28.7% | -4.5 pp | -49.8% | +16.6 pp |
| Diluted EPS | -$0.13 | -$0.10 | -$0.03 | -$0.14 | +$0.01 |
Risks
MD&A and risk factors highlight elevated inflation, interest rate increases, bank failures, supply chain disruptions, and geopolitical conflicts. These conditions may cause customers to delay or reduce IT spending, lengthen sales cycles, and impair customer ability to pay, which could pressure revenue growth and collections.
Sales to large customers have long and unpredictable cycles, often several months and sometimes exceeding one year, with complex deployment and upfront costs. This can make revenue timing and contract value difficult to forecast.
IoT devices rely on a limited number of joint design manufacturers and suppliers, with a large presence in Taiwan. Component shortages, freight cost increases, and China-Taiwan tensions could delay shipments, raise device costs, and hurt gross margins.
Markets are new and rapidly evolving, with competitors such as Motive, Netradyne, Platform Science, and Verkada, and larger vendors bundling products at discounts. This could reduce gross margins, lengthen sales cycles, and cause loss of market share.
The solution relies on Amazon AWS for web hosting and has no alternative provider. If Amazon decided to compete or did not renew the commercial agreement, Samsara would need time and expense to migrate to another hosting service.
Growth depends on hiring and retaining qualified personnel, especially sales, engineering, and key founders. The company has experienced turnover in sales team members, including senior sales leadership, which can cause costly training and execution risk.
The company processes customer data and video footage and has internal platform controls that can access customer assets. A breach, employee misuse, or attack on IoT and telematics systems could cause legal liability, reputational harm, and loss of customer confidence.
Failures or defects in the Connected Operations Cloud or IoT devices could affect physical operations, safety, and regulatory compliance, including risks from lithium batteries and in-cab audio alerts. Recalls, warranty claims, or liability could exceed insurance coverage.
Contracts are typically three to five years, but customers have no obligation to renew and the company has limited experience with renewal cycles. Failure to renew or expand subscriptions would harm future revenue.
AI is integrated into some existing solutions and expected to play a larger role. Competitors may incorporate AI more successfully, and emerging AI regulation such as the EU legal framework could increase compliance costs or slow adoption.
International expansion and AI use face evolving and potentially inconsistent privacy, data protection, AI, and anti-corruption regulations, especially in Europe. Compliance costs and legal liability could increase.
A substantial amount of unrecognized stock-based compensation expense related to RSUs will be recognized as awards vest, which may adversely affect profitability and dilute existing stockholders.
SaaS KPIs
All quarters →Non-GAAP Operating Margin
Adjusted Free Cash Flow Margin
Customers > $100,000 ARR
Non-GAAP Gross Margin
Annual Recurring Revenue (ARR)
Summary, forecast, risks and KPIs are extracted from Samsara Inc.'s SEC filings for Q1 FY2024 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.