On November 30, 2023, Samsara Inc (IOT, Financial) released its 8-K filing, announcing financial results for the third quarter of fiscal year 2024. The company, a leader in the Connected Operations Cloud, has achieved a significant milestone by surpassing $1 billion in ARR, reflecting a robust 39% growth compared to the same period last year. This growth is attributed to the addition of 1,663 customers with ARR over $100,000, up 49% year-over-year.
Financial Performance Highlights
Samsara Inc (IOT, Financial) reported a total revenue of $237.5 million for the quarter, a 40% increase from Q3 FY2023. The GAAP gross profit stood at $175.9 million, translating to a GAAP gross margin of 74%, which is a 2 percentage point improvement year-over-year. Non-GAAP gross profit was slightly higher at $179.0 million, resulting in a non-GAAP gross margin of 75%.
The company also saw an improvement in its operating income, with a GAAP operating loss of $54.8 million, which is an $8.7 million betterment from the prior year. More notably, the non-GAAP operating income was $12.7 million, a significant turnaround from a non-GAAP operating loss of $16.6 million in Q3 FY2023. This improvement is reflected in the non-GAAP operating margin, which increased by 15 percentage points to 5%.
Net cash provided by operating activities was $11.9 million, a substantial improvement from a cash use of $12.9 million in the same quarter of the previous year. Free cash flow was positive at $8.5 million, compared to a negative $23.2 million in Q3 FY2023, indicating a stronger cash position for the company.
Balance Sheet and Cash Flow Details
The balance sheet of Samsara Inc (IOT, Financial) remains solid with $208.1 million in cash and cash equivalents and $451.7 million in short-term investments. Total assets amounted to $1.686 billion, while total liabilities were $735.4 million, resulting in total stockholders' equity of $950.9 million.
The company's cash flow statement shows a disciplined approach to capital management. Net cash provided by operating activities for the three months ended October 28, 2023, was $11.9 million, and the company achieved a free cash flow of $8.5 million, demonstrating its ability to generate cash from its core operations.
Outlook and Commentary
Looking ahead, Samsara Inc (IOT, Financial) provided guidance for Q4 FY2024 with total revenue expected to be between $257 million and $259 million, and a non-GAAP operating margin of 2%. For the full fiscal year 2024, the company anticipates total revenue to be between $918 million and $920 million, with a non-GAAP operating margin of approximately (1%).
"We achieved an important milestone this quarter as we surpassed $1 billion in ARR in just our eighth year of selling," said Sanjit Biswas, CEO and co-founder of Samsara. "As a strategic partner to the world’s leading and most complex physical operations organizations, we look forward to the continued partnership and the impact we will make on their communities as we work to improve the safety, efficiency, and sustainability of their operations."
With a strong financial performance in Q3 FY2024, Samsara Inc (IOT, Financial) is well-positioned to continue its growth trajectory and further solidify its position as a pioneer in the Connected Operations Cloud space.
Explore the complete 8-K earnings release (here) from Samsara Inc for further details.
