On September 5, 2024, Samsara Inc (IOT, Financial) released its 8-K filing for the second quarter of fiscal year 2025, showcasing robust financial performance. Samsara Inc, a pioneer in the Connected Operations® Cloud, provides an end-to-end solution for operations by connecting physical operations data to the Connected Operations Cloud, primarily deriving its revenue from the United States.
Performance Overview
Samsara Inc (IOT, Financial) reported a Q2 revenue of $300.2 million, surpassing the analyst estimate of $289.54 million and marking a 37% year-over-year growth from $219.3 million in Q2 FY2024. The company also achieved an Annual Recurring Revenue (ARR) of $1.264 billion, reflecting a 36% increase from the previous year.
Financial Achievements
The company reported a GAAP gross profit of $226.8 million, up from $160.4 million in the same quarter last year, with a GAAP gross margin of 76%, an improvement of 3 percentage points. Non-GAAP gross profit stood at $230.8 million, with a non-GAAP gross margin of 77%.
| Metric | Q2 FY2025 | Q2 FY2024 | Y/Y Change |
|---|---|---|---|
| Annual Recurring Revenue (ARR) | $1,264.0 million | $930.0 million | 36% |
| Total Revenue | $300.2 million | $219.3 million | 37% |
| GAAP Gross Profit | $226.8 million | $160.4 million | $66.4 million |
| GAAP Gross Margin | 76% | 73% | 3 pts |
| Non-GAAP Gross Profit | $230.8 million | $163.7 million | $67.1 million |
| Non-GAAP Gross Margin | 77% | 75% | 2 pts |
| GAAP Operating Loss | $(58.2) million | $(69.8) million | $11.6 million |
| GAAP Operating Margin | (19%) | (32%) | 13 pts |
| Non-GAAP Operating Income (Loss) | $17.6 million | $(5.9) million | $23.5 million |
| Non-GAAP Operating Margin | 6% | (3%) | 9 pts |
| GAAP Net Loss Per Share | $(0.09) | $(0.11) | $0.02 |
| Non-GAAP Net Income Per Share | $0.05 | $0.01 | $0.04 |
| Net Cash Provided by Operating Activities | $18.1 million | $7.7 million | $10.4 million |
| Adjusted Free Cash Flow | $13.1 million | $4.7 million | $8.4 million |
Key Metrics and Financial Health
Samsara Inc (IOT, Financial) reported a GAAP operating loss of $58.2 million, an improvement from the $69.8 million loss in Q2 FY2024. The GAAP operating margin improved to -19% from -32%. Non-GAAP operating income was $17.6 million, a significant turnaround from a loss of $5.9 million in the same period last year, with a non-GAAP operating margin of 6%.
Net cash provided by operating activities was $18.1 million, up from $7.7 million in Q2 FY2024. Adjusted free cash flow also saw a notable increase to $13.1 million from $4.7 million.
Commentary and Analysis
“We achieved another strong quarter of durable and efficient growth at a greater scale,” said Sanjit Biswas, CEO and co-founder of Samsara. “Q2 ended at $1.264 billion in ARR, growing 36% year-over-year, and at a quarterly record non-GAAP operating margin. As we grow our business, our data asset also scales. We’re proud to have achieved an important company milestone this quarter—we now collect more than 10 trillion data points annually on the Samsara platform.”
The company's strong performance is indicative of its ability to scale efficiently while maintaining robust growth metrics. The significant increase in ARR and revenue highlights Samsara Inc (IOT, Financial)'s growing market presence and customer base. The improvement in operating margins and cash flow metrics further underscores the company's operational efficiency and financial health.
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Explore the complete 8-K earnings release (here) from Samsara Inc for further details.
