Samsara Inc. (NYSE: IOT), the pioneer of the Connected Operations Cloud, reported financial results for the fourth quarter and fiscal year ended January 28, 2023, and released a shareholder letter accessible from the Samsara investor relations website at investors.samsara.com.
“It’s been an exciting year of delivering on our mission to increase the safety, efficiency, and sustainability of the operations that power the global economy. We ended fiscal year 2023 with $795 million of ARR, growing 42% year-over-year. While growing at scale, we remain committed to operating efficiently on our path to profitability,” said Sanjit Biswas, co-founder and CEO of Samsara. “We see a vast opportunity for our customers as they modernize their physical operations, which will have a profound impact on our global economy.”
Fourth Quarter Fiscal Year 2023 Financial Highlights
| (In millions, except percentage, percentage points, and per share data) | ||||||||||||
| Q4 FY2023 | Q4 FY2022 | Y/Y Change | ||||||||||
| Annual Recurring Revenue (ARR) | $ | 795.1 | $ | 558.1 | 42 | % | ||||||
| Total revenue | $ | 186.6 | $ | 125.8 | 48 | % | ||||||
| GAAP gross profit | $ | 135.0 | $ | 87.0 | $ | 48.0 | ||||||
| GAAP gross margin | 72 | % | 69 | % | 3 | pts | ||||||
| Non-GAAP gross profit | $ | 137.5 | $ | 93.4 | $ | 44.1 | ||||||
| Non-GAAP gross margin | 74 | % | 74 | % | — | pt | ||||||
| GAAP operating loss | $ | (60.0 | ) | $ | (251.7 | ) | $ | 191.7 | ||||
| GAAP operating margin | (32 | %) | (200 | %) | 168 | pts | ||||||
| Non-GAAP operating loss | $ | (14.7 | ) | $ | (17.5 | ) | $ | 2.8 | ||||
| Non-GAAP operating margin | (8 | %) | (14 | %) | 6 | pts | ||||||
| GAAP net loss per share | $ | (0.10 | ) | $ | (0.68 | ) | $ | 0.58 | ||||
| Non-GAAP net loss per share | $ | (0.02 | ) | $ | (0.05 | ) | $ | 0.03 | ||||
| Net cash used in operating activities | $ | (4.4 | ) | $ | (48.3 | ) | $ | 43.9 | ||||
| Adjusted free cash flow | $ | (6.0 | ) | $ | (50.2 | ) | $ | 44.2 | ||||
| Net cash used in operating activities margin | (2 | %) | (38 | %) | 36 | pts | ||||||
| Adjusted free cash flow margin | (3 | %) | (40 | %) | 37 | pts |
Fiscal Year 2023 Financial Highlights
| (In millions, except percentage, percentage points, and per share data) | ||||||||||||
| FY 2023 | FY 2022 | Y/Y Change | ||||||||||
| Annual Recurring Revenue (ARR) | $ | 795.1 | $ | 558.1 | 42 | % | ||||||
| Total revenue | $ | 652.5 | $ | 428.3 | 52 | % | ||||||
| GAAP gross profit | $ | 469.9 | $ | 303.9 | $ | 166.0 | ||||||
| GAAP gross margin | 72 | % | 71 | % | 1 | pt | ||||||
| Non-GAAP gross profit | $ | 479.4 | $ | 310.2 | $ | 169.2 | ||||||
| Non-GAAP gross margin | 73 | % | 72 | % | 1 | pt | ||||||
| GAAP operating loss | $ | (259.5 | ) | $ | (353.8 | ) | $ | 94.3 | ||||
| GAAP operating margin | (40 | %) | (83 | %) | 43 | pts | ||||||
| Non-GAAP operating loss | $ | (77.0 | ) | $ | (114.1 | ) | $ | 37.1 | ||||
| Non-GAAP operating margin | (12 | %) | (27 | %) | 15 | pts | ||||||
| GAAP net loss per share | $ | (0.48 | ) | $ | (1.28 | ) | $ | 0.80 | ||||
| Non-GAAP net loss per share | $ | (0.13 | ) | $ | (0.42 | ) | $ | 0.29 | ||||
| Net cash used in operating activities | $ | (103.0 | ) | $ | (171.5 | ) | $ | 68.5 | ||||
| Adjusted free cash flow | $ | (110.0 | ) | $ | (179.7 | ) | $ | 69.7 | ||||
| Net cash used in operating activities margin | (16 | %) | (40 | %) | 24 | pts | ||||||
| Adjusted free cash flow margin | (17 | %) | (42 | %) | 25 | pts |
We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with generally accepted accounting principles (“GAAP”). See the section titled “Use of Non-GAAP Financial Measures” for an explanation of non-GAAP financial measures and the tables in the section titled “Reconciliation Between GAAP and Non-GAAP Financial Measures” for a reconciliation of GAAP to non-GAAP financial measures.
Financial Outlook
Our guidance includes GAAP and non-GAAP financial measures. For the first quarter and fiscal year 2024, Samsara expects the following:
| Q1 FY2024 Outlook | FY 2024 Outlook | |||
| Total revenue | $190 million – $192 million | $838 million – $848 million | ||
| Year/Year growth | 33% – 35% | 28% – 30% | ||
| Non-GAAP operating margin | (15%) | (7%) | ||
| Non-GAAP net loss per share | ($0.05) – ($0.06) | ($0.05) – ($0.07) |
A reconciliation of non-GAAP guidance financial measures to corresponding GAAP guidance financial measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty and potential variability of expenses, such as stock-based compensation expense-related charges, that may be incurred in the future and cannot be reasonably determined or predicted at this time. It is important to note that these factors could be material to our results of operations computed in accordance with GAAP.
