Summary
Samsara closed the third quarter of fiscal year 2024 with revenue of $237.5 million, up 39.9% from the prior-year quarter. Revenue over the first nine months of the fiscal year reached $661.1 million, up 41.9% from the same stretch a year earlier. Growth came from a larger customer count and from existing customers buying more subscription offerings, including additional applications. Annual recurring revenue crossed the $1 billion mark for the first time, ending the quarter at $1,002.7 million, up 39% year over year. The count of customers spending more than $100,000 in ARR rose 49% year over year to 1,663.
Profitability improved across the board. Gross profit was $175.9 million for the quarter, up 43.6%, and gross margin climbed to 74.1% from 72.2%, an increase of 1.9 percentage points. Management pointed to operational efficiencies in infrastructure and direct labor costs. Operating loss narrowed to $54.8 million from $63.5 million a year ago, lifting operating margin to negative 23.1% from negative 37.4%. Net loss narrowed to $45.5 million from $58.6 million. Diluted loss per share was $0.08, narrower than the $0.11 loss a year earlier.
On a non-GAAP basis, the picture flipped positive. Non-GAAP operating income was $12.7 million, a 5% operating margin, against a non-GAAP operating loss of $16.6 million in the prior-year quarter. Non-GAAP diluted net income per share was $0.04. Cash generation also turned. Operating cash flow was $11.9 million for the quarter versus negative $12.9 million a year earlier, and $30.1 million for the first nine months versus negative $98.6 million. Capital expenditures fell to $3.4 million in the quarter from $10.3 million, and to $8.9 million year to date from $27.2 million. Free cash flow, defined as operating cash flow less purchases of property and equipment, was $8.5 million for the quarter.
Deferred revenue stood at $503.7 million at quarter end, up 34.6% from a year earlier. Remaining performance obligations were $1.76 billion, up 36.6%. That backlog underpins the outlook. For the fourth quarter of fiscal year 2024, management guided to year-over-year revenue growth of 38% to 39%, a non-GAAP operating margin of 2%, and non-GAAP diluted net income per share of $0.02 to $0.03. For the full fiscal year 2024, guidance calls for revenue growth of 41%, a non-GAAP operating margin of negative 1%, and non-GAAP diluted net income per share of $0.05 to $0.06.
Risks stay in view. Samsara runs a 53-week fiscal year, and the fourth quarter alone runs 14 weeks, which management flagged in the MD&A. The company still posts GAAP operating losses. The MD&A lists inflationary pressure, interest rate increases, supply chain disruptions, fluctuating fuel costs, and labor shortages as macroeconomic factors that could affect demand. It also names the Russia-Ukraine conflict, geopolitical tensions involving China, and the conflict in Israel and Gaza. Other risks include silicon component shortages, long sales cycles, a security breach affecting customer data, and competition.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2024 | Q2 FY2024 | QoQ | Q3 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $237.5M | $219.3M | +8.3% | $169.8M | +39.9% |
| Gross profit | $175.9M | $160.4M | +9.7% | $122.5M | +43.6% |
| Gross margin | 74.1% | 73.2% | +0.9 pp | 72.2% | +1.9 pp |
| Research & development | $60.8M | $64.0M | -4.9% | $50.0M | +21.7% |
| Sales & marketing | $116.8M | $117.9M | -1.0% | $94.1M | +24.2% |
| General & administrative | $48.4M | $48.3M | +0.2% | $42.0M | +15.1% |
| Total operating expenses | $230.7M | $230.1M | +0.2% | $186.0M | +24.0% |
| Operating income (loss) | -$54.8M | -$69.8M | +21.5% | -$63.5M | +13.7% |
| Operating margin | -23.1% | -31.8% | +8.8 pp | -37.4% | +14.3 pp |
| Net income (loss) | -$45.5M | -$60.0M | +24.1% | -$58.6M | +22.2% |
| Net margin | -19.2% | -27.4% | +8.2 pp | -34.5% | +15.3 pp |
| Diluted EPS | -$0.08 | -$0.11 | +$0.03 | -$0.11 | +$0.03 |
Risks
MD&A cites inflationary pressure, interest rate increases, supply chain disruptions, labor shortages, delayed or reduced IT spending, and geopolitical conflicts including Russia-Ukraine, China tensions, and Israel-Gaza as factors that could affect customer spending and our results.
As of October 28, 2023, accumulated deficit was $1,341.7 million. Although free cash flow turned positive beginning in Q1 FY2024, MD&A states we may require additional capital and may not be able to raise it on acceptable terms or at all.
MD&A says expansion within our existing customer base depends on customer satisfaction, pricing, competition, macroeconomic factors, and changes in customer spending levels.
In Q3 FY2024, we executed a sublease for certain office space resulting in a $4.8 million impairment to the related ROU asset and fixed assets, and MD&A states we may incur additional lease modification, impairment, and related charges in subsequent periods.
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 Q3 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.