0001642896-25-000058
SEC filingRevenue grew 31% YoY to $366.9M, driven by customer expansion, with gross margin improving to 77%.
For the three months ended May 3, 2025, Samsara reported total revenue of $366.9 million, a 31% increase from $280.7 million in the same period last year. The growth was primarily driven by an increase in customer count and higher purchases of subscription offerings, including additional Applications, by existing customers.
Gross profit rose to $283.7 million from $212.1 million, with gross margin improving to 77% from 76%. The margin expansion was attributed to operational efficiencies in IoT device costs and direct labor costs. Cost of revenue increased 21% to $83.2 million, largely due to higher infrastructure costs ($7.9M), amortization of IoT device costs ($4.8M), and employee-related costs ($1.4M), partially offset by lower excess and obsolete inventory charges ($1.6M).
Operating expenses totaled $317.0 million, up from $278.1 million. Research and development expense grew 14% to $83.2 million, driven by higher employee-related costs ($7.7M) and hosting/software costs ($2.2M). Sales and marketing expense increased 12% to $165.4 million, primarily due to employee-related costs ($17.8M) and campaign marketing ($1.2M), partially offset by lower travel and event costs ($1.8M). General and administrative expense rose 18% to $68.3 million, led by professional services fees ($7.0M) and employee-related costs ($5.0M).
Interest income and other income, net, increased 26% to $12.7 million, benefiting from foreign currency gains ($1.9M) and higher interest income on a larger investment base. The provision for income taxes was $1.6 million, up from $0.4 million, primarily due to higher taxes in foreign jurisdictions.
Net loss improved to $22.1 million from $56.3 million, reflecting operating leverage and higher non-operating income. On a non-GAAP basis, operating income was $51.1 million (14% margin) versus $6.2 million (2% margin), and net income was $62.2 million versus $15.9 million.
The MD&A does not provide segment-level revenue or operating income breakdowns. The business operates as a single reporting segment, with approximately 98% of revenue derived from subscriptions to the Connected Operations Platform. The remaining revenue comes from replacement IoT devices, shipping, and professional services.
Management expects research and development expenses to generally increase in absolute dollars as the company continues to invest in platform enhancements. Sales and marketing expenses are also expected to rise to support customer acquisition and brand awareness, with seasonally higher spending on conferences and events in the first half of the fiscal year. General and administrative expenses are anticipated to increase in absolute dollars to support growth.
The company believes its existing cash, cash equivalents, and investments of $1,023.2 million will be sufficient to support working capital and capital expenditure requirements for at least the next 12 months. No specific quantitative guidance for future periods was provided in the MD&A section.
As of May 3, 2025, Samsara held $259.0M in cash and cash equivalents, $21.9M in restricted cash, and $764.2M in marketable debt securities, totaling $1.045B in liquidity. Inventories stood at $37.9M. Deferred revenue was $706.1M, and total remaining performance obligations (RPO) reached $2,755.5M, of which $1,311.5M is expected to be recognized within 12 months.
Operating lease liabilities totaled $82.1M ($95.4M in undiscounted payments) with remaining terms up to six years. Letters of credit of $17.6M were outstanding as collateral for office leases. No material purchase commitments were entered into during the quarter; all obligations were in the ordinary course of business.
The Company did not repurchase shares or pay dividends during the quarter. No debt was issued or repaid; finance leases were immaterial. Stock-based compensation expense was $77.1M, largely from RSUs. There was no capex disclosure in the Notes, though capital expenditures of $6.9M appear in the cash flow statement (outside Notes).
Samsara operates as a single reportable segment. For the quarter, subscription revenue was $359.6M (98.0% of total) and other revenue $7.3M. Geographically, the United States contributed $317.0M (86.4%) and other countries $49.9M (13.6%). The segment reported an operating loss of $33.3M on total revenue of $366.9M.
Operating cash flow (CFO) of $52.6M significantly exceeded the net loss of ($22.1M), indicating strong cash generation relative to reported earnings. The primary non-cash add-backs were stock-based compensation ($77.1M) and depreciation/amortization ($5.1M), partially offset by net accretion of discounts on investments ($2.6M). Working capital changes were a net source of cash, driven by a $15.9M decrease in accounts receivable and a $20.6M increase in deferred revenue, partially offset by a $31.2M decrease in accounts payable and other liabilities.
Capital expenditures (capex) of $6.9M were moderate relative to CFO, resulting in an implied free cash flow of $45.7M (CFO minus capex). The company did not report share repurchases or dividends. Investing activities used $18.3M, primarily from net investment purchases ($11.2M net outflow after maturities). Financing activities used $0.4M, mainly from finance lease principal payments. Overall, cash flow quality is solid, with CFO comfortably covering capex and no reliance on external financing.