Summary
Samsara reported FY2024 Q2 revenue of $219.3 million, up 42.8% from the prior-year quarter. Year-to-date revenue was $423.6 million, up 43.0% from the prior-year period. The company ended the quarter with ARR of $930.0 million, up 40% year over year, and 1,515 customers with ARR over $100,000, up 53% year over year. Gross profit was $160.4 million, up 46.8% from the prior-year quarter, and gross margin was 73.2%, up 2.0 percentage points. Operating loss was $69.8 million, and the loss widened from the prior-year quarter. Net loss was $60.0 million, and the loss narrowed from the prior-year quarter. Diluted net loss per share was $0.11, and the loss narrowed from the prior-year quarter. Operating margin was -31.8%, up 11.0 percentage points from the prior-year quarter. Revenue growth came primarily from an increase in customer count and increased purchases of subscription offerings, including subscriptions to additional applications, by existing customers.
Cash generation improved. Operating cash flow was $7.7 million, up from the prior-year quarter. Capital expenditures were $3.0 million, down 52.0% from the prior-year quarter. Deferred revenue was $477.0 million, up 34.5% from the prior-year quarter. Remaining performance obligations were $1.64 billion, up 37.9% from the prior-year quarter. The company also reported its first adjusted free cash flow positive quarter, with adjusted free cash flow of $4.7 million. Free cash flow was $4.7 million. Non-GAAP operating loss was $5.9 million, compared with a non-GAAP operating loss of $20.2 million in the prior-year quarter. Non-GAAP net income was $3.9 million, compared with a non-GAAP net loss of $18.7 million in the prior-year quarter. Year-to-date net loss was $127.8 million, and the loss narrowed from the prior-year period. Year-to-date operating cash flow was $18.2 million, up from the prior-year period.
Guidance points to continued growth but slower than the current quarter. For Q3 FY2024, Samsara expects revenue of $223 million to $225 million, year-over-year growth of 31% to 33%, and a non-GAAP operating margin of (2%). Non-GAAP net income per diluted share is expected to be $0.00 to $0.01. For FY2024, the company expects revenue of $896 million to $900 million, year-over-year growth of 37% to 38%, and a non-GAAP operating margin of (3%). Non-GAAP net income per diluted share is expected to be $0.00 to $0.02. The guidance includes non-GAAP financial measures, and the company does not provide a reconciliation of non-GAAP guidance to GAAP guidance without unreasonable effort.
Cost trends and risks remain part of the story. The company continued to invest in research and development, sales and marketing, and general and administrative functions. Those expenses increased in absolute dollars, driven by headcount growth and stock-based compensation. Gross margin improvement was mainly due to operational efficiencies in infrastructure costs. Risks include macroeconomic conditions, inflationary pressure, interest rate increases, supply chain disruptions, silicon component shortages, security breaches, competition, long sales cycles, the Russia-Ukraine conflict, geopolitical tensions involving China, and the COVID-19 pandemic. The company also faces risks related to retaining and expanding customers, attracting new customers, achieving or maintaining profitability, demand for its products, and rapid technological changes. Samsara has a full valuation allowance against U.S. deferred tax assets.
Samsara's deferred revenue and RPO growth reflect the ratable recognition of subscription contracts and the company's focus on larger customers. The company ended the quarter with a strong balance sheet and positive operating cash flow, but it still reported a GAAP operating loss and a GAAP net loss. The gap between GAAP and non-GAAP results remains wide, largely because of stock-based compensation expense-related charges. Management's outlook for FY2024 implies revenue growth that is slower than the 42.8% growth reported for FY2024 Q2, and the non-GAAP operating margin guidance remains negative.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2024 | Q1 FY2024 | QoQ | Q2 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $219.3M | $204.3M | +7.3% | $153.5M | +42.8% |
| Gross profit | $160.4M | $146.8M | +9.3% | $109.3M | +46.8% |
| Gross margin | 73.2% | 71.8% | +1.3 pp | 71.2% | +2.0 pp |
| Research & development | $64.0M | $60.4M | +6.0% | $41.8M | +52.9% |
| Sales & marketing | $117.9M | $119.0M | -0.9% | $91.8M | +28.4% |
| General & administrative | $48.3M | $43.3M | +11.6% | $41.4M | +16.7% |
| Total operating expenses | $230.1M | $222.6M | +3.4% | $175.0M | +31.5% |
| Operating income (loss) | -$69.8M | -$75.8M | +8.0% | -$65.8M | -6.0% |
| Operating margin | -31.8% | -37.1% | +5.3 pp | -42.9% | +11.0 pp |
| Net income (loss) | -$60.0M | -$67.9M | +11.6% | -$64.3M | +6.7% |
| Net margin | -27.4% | -33.2% | +5.9 pp | -41.9% | +14.5 pp |
| Diluted EPS | -$0.11 | -$0.13 | +$0.02 | -$0.13 | +$0.02 |
Risks
The risk factors emphasize unpredictable sales cycles, especially for large customers, where cycles typically last several months and in some cases have exceeded one year, with substantial upfront sales costs and less predictability. MD&A also notes that new customer acquisition depends on sales and marketing effectiveness and macroeconomic factors.
The filing specifically notes turnover in sales team members, including within senior sales leadership, which can cause costly training, operational inefficiency, and execution risks. It also states that onboarding new sales personnel and leaders takes considerable time to reach full productivity.
Samsara depends on a limited number of joint design manufacturers, and in some instances a single manufacturer, for IoT devices and critical components. The risk factors cite the ongoing global silicon component shortage, freight cost increases, and geopolitical tensions involving China and Taiwan that could disrupt manufacturing and delay revenue recognition.
The filing describes intense and increasing competition from vendors such as Omnitracs, Verizon Connect, Geotab, Lytx, SmartDrive, Motive, Netradyne, Platform Science, and Verkada, some with greater resources and bundling practices. It also notes reliance on Amazon for AWS web hosting with no alternative provider, and if Amazon competed or did not renew, it would significantly impact the solution.
The company has a history of losses and expects to continue incurring net losses in future quarters, with net losses of $127.8 million for the six months ended July 29, 2023 and an accumulated deficit of $1,296.2 million as of July 29, 2023. Stock-based compensation expense was $55.7 million in the second quarter of fiscal 2024, and $549.1 million of unrecognized RSU expense remains as of July 29, 2023, which will adversely impact profitability targets.
The filing highlights risks from security breaches and from abuse or misuse of internal platform controls and system tools, noting employees have historically had broad access to customers' video footage and some applications can control large industrial assets or immobilize commercial motor vehicles. Any abuse or misuse could cause substantial disruption or damage to customers and result in legal liability and reputational harm.
The risk factors note that defects or performance failures in the Connected Operations Cloud could lead to death, serious bodily injury, or regulatory noncompliance, and that technologies such as lithium batteries, in-cab audio alerts, and immobilizing technologies increase the risk profile. Product liability insurance may not adequately protect against claims.
MD&A highlights unfavorable U.S. and global economic conditions, including inflationary pressure, interest rate increases, supply chain disruptions, and geopolitical tensions, that could delay or reduce customer spending on IT products and lengthen sales cycles. The risk is amplified because Samsara sells to physical operations industries that are particularly exposed to economic uncertainty.
The filing expands AI risk, noting that AI is integrated into some existing solutions and expected to play an increased role, while competitors may incorporate AI more successfully. It also flags the EU AI Act, with potential fines up to the greater of €30 million and 6% of global annual turnover.
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)
Free Cash Flow Margin
Adjusted Free Cash Flow
Free Cash Flow
Summary, forecast, risks and KPIs are extracted from Samsara Inc.'s SEC filings for Q2 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.