Samsara (IOT) Q1 2025 earnings summary

Executive summary

• Q1 FY25 revenue reached $281M, up 37% year-over-year, with ARR at $1.18B and 1,964 customers over $100K ARR, up 43% year-over-year.

• Large enterprise and international customer momentum continued, with strong multi-product adoption and notable wins in government, construction, and field services.

• Customers report significant ROI, with IDC estimating over 8x ROI and $2M in annual savings per customer.

• Net loss narrowed to $56.3M from $67.9M year-over-year, reflecting improved operational efficiencies.

• Focused on digitizing physical operations, driving efficiency, safety, and sustainability.

Financial highlights

• Q1 revenue: $281M, up 37% year-over-year; non-GAAP gross margin reached 77%, up 4 percentage points year-over-year.

• Non-GAAP operating margin improved to 2% from -9% last year; adjusted free cash flow margin hit a record 7% from -1% last year.

• Non-GAAP net income was $15.9M, compared to a non-GAAP net loss of $11.1M in the prior year quarter.

• Cash, cash equivalents, and investments totaled $845M as of May 4, 2024.

• Operating expenses increased: R&D up 21% to $73M, sales and marketing up 24% to $147.4M, and G&A up 33% to $57.7M.

Outlook and guidance

• Q2 FY25 revenue expected between $288M–$290M, representing 31%–32% year-over-year growth.

• Full year FY25 revenue guidance raised to $1.205B–$1.213B, 29%–32% year-over-year growth.

• Non-GAAP operating margin for FY25 expected at 3%; non-GAAP EPS between $0.13–$0.15.

• Guidance considered de-risked for potential macroeconomic headwinds.

• Existing liquidity is expected to be sufficient to support working capital and capital expenditure needs for at least the next 12 months.