Samsara (IOT) investor relations material

Executive summary

• Q2 FY2027 revenue reached $508.4 million, up 30% year-over-year, with ARR at $2.125 billion, growing 30% year-over-year, and net new ARR of $134.1 million.

• Large customers ($100,000+ ARR) contributed $1.3 billion in ARR, up 38% year-over-year, with 3,605 customers in this segment and 20 new $1 million+ ARR customers added.

• Surpassed 30 trillion data points collected annually, up 40% year-over-year, fueling AI and operational insights.

• Customer adoption of new AI features grew more than 4x in two months, with over 1,000 customers engaged with AI agents.

• Significant wins with major global enterprises and public sector clients, and continued product innovation including new AI features and multi-product adoption.

Financial highlights

• Non-GAAP operating margin was 21%, up from 15% a year ago; GAAP operating income was $4.9 million (1% margin); GAAP EPS was $0.03, marking the fourth consecutive quarter of GAAP profitability.

• Non-GAAP gross margin was 78%; GAAP gross margin was 77%.

• Free cash flow margin was 13% for the quarter; free cash flow for the six months was $137.9 million (14% margin).

• Non-GAAP net income for Q2 FY27 was $117.3 million; GAAP net income was $16.2 million.

• 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 Q3 and FY2027; non-GAAP EPS guidance for FY2027 is $0.76–$0.78.

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

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

• Existing liquidity of $1.33 billion in cash, cash equivalents, and investments is expected to support operations and growth initiatives for at least the next 12 months.