Summary
Samsara closed fiscal 2024 with a strong top line and a wider GAAP loss. Fourth quarter revenue was $276.27 million, up 48.1% from the prior-year quarter. The quarter contained 14 weeks instead of the usual 13, and on an adjusted basis, which strips out the extra week, revenue was $256.5 million, up 37%. Full year revenue reached $937.38 million, up 43.7%. Ending ARR was $1.102 billion, up 39%, and the company said it recorded its first year of positive adjusted free cash flow.
Gross profit for the quarter was $207.25 million, up 53.5%, and gross margin rose to 75.0%, up 2.6 percentage points, helped by operational efficiencies in infrastructure costs. The bottom line moved the other way. Operating loss was $123.00 million, and operating margin fell to negative 44.5%, down 12.4 percentage points. Net loss was $113.37 million. A one-time legal settlement of $68.7 million, tied to lease-related litigation settled in January 2024 with a $60.0 million cash payment and $8.7 million tied to a letter of credit, drove much of the swing. On a non-GAAP basis, which excludes stock-based compensation and that settlement, operating income was $13.5 million, compared with a loss a year earlier. Full year diluted loss per share was $0.54, wider than the prior year.
Cash generation was mixed. The quarter used $41.88 million of operating cash flow, a larger outflow than the prior-year quarter. For the full year, operating cash flow was negative $11.82 million, an 88.5% improvement over the prior year. Capital expenditures were $2.10 million in the quarter, down 65.1%, and $10.95 million for the full year, down 67.0%. Adjusted free cash flow, a non-GAAP measure, was $16.0 million in the quarter and $27.1 million for the full year.
Backlog and deferred revenue point to continued demand. Deferred revenue was $565.49 million, up 32.6%, and remaining performance obligations were $2.00 billion, up 37.9%. Customers spending more than $100,000 in ARR totaled 1,848, up 49%, and roughly 52% of ARR came from that group. The company ended the year with more than 16,000 core customers and 2,895 employees, up from 2,266 a year earlier. Video-Based Safety and Vehicle Telematics each passed $400 million in ARR and grew more than 30% year over year.
Guidance for the first quarter of fiscal 2025 calls for revenue of $271 million to $273 million, growth of 33% to 34%. For the full fiscal year 2025, management guides to revenue of $1,186 million to $1,196 million, growth of 27% to 28%, adjusted revenue growth of 29% to 30%, a non-GAAP operating margin between negative 3% and 2%, and non-GAAP diluted net income per share of $0.11 to $0.13. The outlook assumes the extra week does not repeat. Risks include macroeconomic pressure on customer spending, supply chain constraints, competition, security incidents, and long sales cycles. The company also carries an accumulated deficit of $1,455.1 million, and it may need additional capital if cash flows turn negative again.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2024 | Q3 FY2024 | QoQ | Q4 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $276.3M | $237.5M | +16.3% | $186.6M | +48.1% |
| Gross profit | $207.3M | $175.9M | +17.8% | $135.0M | +53.5% |
| Gross margin | 75.0% | 74.1% | +1.0 pp | 72.4% | +2.6 pp |
| Research & development | $73.4M | $60.8M | +20.7% | $54.6M | +34.5% |
| Sales & marketing | $133.0M | $116.8M | +13.9% | $96.8M | +37.5% |
| General & administrative | $55.2M | $48.4M | +14.1% | $43.7M | +26.3% |
| Total operating expenses | $330.3M | $230.7M | +43.1% | $195.0M | +69.3% |
| Operating income (loss) | -$123.0M | -$54.8M | -124.6% | -$60.0M | -105.0% |
| Operating margin | -44.5% | -23.1% | -21.5 pp | -32.1% | -12.4 pp |
| Net income (loss) | -$113.4M | -$45.5M | -149.0% | -$53.6M | -111.5% |
| Net margin | -41.0% | -19.2% | -21.9 pp | -28.7% | -12.3 pp |
| Diluted EPS | -$0.21 | -$0.08 | -$0.13 | -$0.10 | -$0.11 |
Risks
In January 2024, Samsara settled non-recurring lease-related litigation, recognizing a $68.7 million legal settlement expense for FY2024, including a $60.0 million cash payment and $8.7 million from forgiveness of a drawn letter of credit. This contributed to the GAAP operating loss widening to $323.3 million for FY2024 from $259.5 million for FY2023.
Samsara recognized $60.4 million of stock-based compensation expense in Q4 FY2024 related to RSUs and had $447.1 million of unrecognized stock-based compensation expense as of February 3, 2024. Total stock-based compensation expense-related charges were $251.2 million for FY2024, pressuring profitability as GAAP net loss widened to $286.7 million for FY2024 from $247.4 million for FY2023.
Samsara depends on a limited number of joint design manufacturers, sometimes a single one, and its suppliers have a large presence in Taiwan. Component shortages, geopolitical tensions involving China and Taiwan, and freight disruptions could delay IoT device shipments and revenue recognition.
The market is intensely competitive, with named competitors including Motive, Netradyne, Platform Science, and Verkada, and some competitors bundle products at significant discounts. In January 2024, Samsara filed a lawsuit against Motive alleging patent infringement, false advertising, fraud, computer fraud and abuse, and unfair competition, which may be costly and distract management.
The company has experienced turnover in sales and marketing teams, including senior leadership, which it says often results in costly training, operational inefficiency, and execution risks. Sales and marketing expense increased 31% for FY2024, driven partly by a $74.3 million increase in employee-related costs.
Sales to larger customers involve longer and less predictable sales cycles, often several months and sometimes exceeding one year, with substantial upfront costs and pricing discounts. Samsara's focus on customers over $100,000 in ARR grew that cohort from 1,237 as of January 28, 2023 to 1,848 as of February 3, 2024, increasing exposure to these dynamics.
AI is integrated into some existing Applications and expected to play an increased role, but flawed algorithms, insufficient or biased datasets, and evolving intellectual property rules could subject Samsara to liability, competitive harm, and reputational damage.
Elevated inflation, interest rate increases, geopolitical conflicts, and delayed IT spending have caused and may continue to cause businesses to slow spending and lengthen sales cycles. Samsara says it has limited experience operating at current scale under high inflation or recessionary conditions.
SaaS KPIs
All quarters →Non-GAAP Operating Margin
Adjusted Free Cash Flow Margin
Customers > $100,000 ARR
Non-GAAP Gross Margin
Free Cash Flow Margin
Adjusted Free Cash Flow
Free Cash Flow
ARR from Core Customers
ARR from Customers > $100,000 ARR
Summary, forecast, risks and KPIs are extracted from Samsara Inc.'s SEC filings for Q4 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 2, 2026.