IOT earnings call summary

Prepared Highlights

• ARR: $1.64 billion, +30% YoY; net new ARR of $105 million, +19% YoY, sequential acceleration at larger scale (CFO, prepared).
• Revenue: $391 million, +30% YoY (+31% constant currency) (CFO, prepared).
• Large customer ARR: $100k+ ARR customers contributed $1 billion (35% YoY), 59% of total ARR; $1M+ ARR customers added a quarterly record of 17, now >20% of total ARR ($350 million) (CEO, CFO, prepared).
• New customer traction: 9 of top 10 new logos adopted ≥2 products, 8 adopted ≥3; third-highest net new core customer additions, surpassing 1,000 for 4th time in 5 quarters (CFO, prepared).
• Net retention: Dollar-based net retention rate ~115% for core customers (CFO, prepared).
• International: 15% of net new ACV from non-US geographies; Europe accelerated sequentially to highest net new ACV in last 4 quarters (CFO, prepared).
• Gross margin: Non-GAAP 78% (CFO, prepared).
• Operating margin: Non-GAAP 15%, +9 ppts YoY (CFO, prepared).
• Free cash flow margin: 11%, +7 ppts YoY (CFO, prepared).
• Platform scale: ~20 trillion data points, 300 million digitized workflows, 90 billion miles annually (CEO, prepared).
• Partner ecosystem: >350 integrations; largest customers use average of 6 integrations (CEO, prepared).
• New product ACV: 8% of net new ACV from products launched in past year (asset tags, connected workflows, connected training, asset maintenance, AI multicam, commercial navigation) (CFO, prepared).
• Segment strength: Construction—highest net new ACV mix for 8th consecutive quarter; Public sector—wins incl. Nebraska DOT, City of Nashville, LA transit; Manufacturing—highest net new ACV mix ever (CFO, prepared).

Official guidance (CFO, prepared):

• Q3 FY26: Revenue $398–$400M (24% YoY growth, 23–24% constant currency); Non-GAAP operating margin 15%; Non-GAAP EPS $0.11–$0.12.
• Full-year FY26: Revenue $1.574–$1.578B (26% YoY growth); Non-GAAP operating margin 15%; Non-GAAP EPS $0.45–$0.47.

Mgmt quotes:

• Sanjit Biswas (CEO): "Our strategy to partner with the world's largest and most complex operations organizations is working and is fueling our growth at scale."
• Dominic Phillips (CFO): "The quarter was highlighted by strong performance... including another quarter of 30% plus year-over-year growth at a larger scale, 19% year-over-year net new ARR growth, which accelerated sequentially at a larger scale."
• Sanjit Biswas (CEO): "We are seeing great customer impact as we continue to scale. Our connected operations platform now sees approximately 20 trillion data points, 300 million digitized workflows, and 90 billion miles annually."
• Dominic Phillips (CFO): "We have a unique defensible data advantage. By instrumenting physical assets, we generate a large and growing proprietary data asset that cannot be replicated or sourced from the Internet."
• Sanjit Biswas (CEO): "We build products for our customers that deliver a clear and fast ROI. As our customers use these products, they contribute data to the platform. This growing data asset then allows us to build new products."

Prepared Metrics