Samsara (IOT) investor relations material

Executive summary

• Annual recurring revenue (ARR) reached $2.125 billion, up 30% year-over-year, with $134 million net new ARR and record additions of large customers.

• Q2 revenue grew 30% year-over-year to $508.4 million, driven by new customer growth and increased purchases by existing customers.

• Large customer momentum continued, with $1.3B ARR from $100K+ ARR customers, a 38% year-over-year increase, and 3,605 customers generating over $100,000 in ARR.

• Surpassed 30 trillion data points collected annually, fueling AI-driven product innovation and customer ROI.

• Major product launches and customer wins highlighted at Beyond conference, including new AI features and multi-product adoption.

Financial highlights

• GAAP gross margin was 77% and non-GAAP gross margin was 78% for the quarter; GAAP operating income was $4.9 million (1% margin), non-GAAP operating income was $106 million (21% margin).

• GAAP net income was $16.2 million for the quarter; non-GAAP net income was $117.3 million.

• Free cash flow margin was 13% for the quarter; free cash flow for the six months was $137.9 million.

• Achieved fourth consecutive quarter of GAAP profitability with EPS of $0.03; non-GAAP EPS was $0.20.

• Q2 FY27 revenue beat prior guidance by 5%.

Outlook and guidance

• Q3 FY2027 revenue guidance: $514–$516 million, 24% year-over-year growth; FY2027 revenue guidance: $2.043–$2.047 billion, 26% year-over-year growth.

• Non-GAAP operating margin expected at 21% for both Q3 and FY2027; non-GAAP net income per share (diluted) guidance: $0.18–$0.19 for Q3, $0.76–$0.78 for FY2027.

• Free cash flow margin expected to be ~100 bps lower than FY2026 due to higher IoT device investment and supply chain costs.

• Management expects continued investment in R&D and sales and marketing to drive future growth.

• GAAP profitability expected to continue.