Samsara has announced its fourth quarter and year-end earnings, ending February 3, 2024, with a 39 percent rise in its annual recurring revenue (ARR) year-on-year (YoY) hitting a $1.1bn win.
Total revenues also increased 44 percent for the full FY ’24, topping out at $937.4m and headcount increased 30 percent for the year.
It’s good news for the connected operations cloud vendor, having reached that much sought-after Rule of 40 for four consistent quarters. Sanjit Biswas, CEO and co-founder, attributes the win to the “continued strength” of Samsara’s platform and “the large market opportunity ahead”.
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In the company earnings call, Biswas expressed this potential of the physical operations market, saying: “We’re addressing a large market that’s early in its digitization journey. Our customers represent the industries that drive more than 40 percent of the global GDP and are the backbone of the economy.”
It marks a triple-winning combination, as Biswas explained: “While we’re still in the early innings of our customers’ digitization journeys, we are proud of our progress and impact so far. In just eight years of selling, we’re operating at a rare combination of scale, growth, and profitability.
“It was an exciting quarter and year, delivering on our mission to increase the safety, efficiency, and sustainability of the operations that power the global economy.”
Across the year, 611 $100k+ ARR customers joined the Samara troop in its fastest growing cohort, including USIC (representing Samsara’s largest ever net new annual contract value deal). This financial year has brought the firm’s total large customers to 1,848 and a record 49 percent quarterly increase.
Selling into what Samsara CFO Dominic Phillips calls a more “resilient operations budget” area, and aiming to reduce risk for large, complex physical operations companies, has clearly dealt the firm a winning hand.
Samsara says it has consequently seen increasing numbers opting for its Connected Operations Cloud and multi-application platform, with its specialist IoT data set connecting vehicles, equipment, sites and workers on the ground.
For underground public utility locating services provider, USIC, a pilot of the Samsara’s video-based safety application reduced mobile phone usage by 92 percent, no seat belt usage by 85 percent, and rolling stops by 50 percent.
Signing on with Samsara, USIC’s fuel efficiency is also expected to increase with Samsara vehicle telematics, for lower fuel costs and reduced carbon emissions.
With 16 percent of net new contract revenue coming from non-U.S. geographies, Samsara has also laid claim to new frontiers in the future, including Mexico, Canada, and Western Europe. To take these areas by storm, CFO Phillips has said Samsara will continue “aggressively hiring into FY ’25” with just under half of all headcount additions heading into sales and marketing roles.
The firm’s partner ecosystem has additionally grown in the past year, adding over 270 integrations with third-party systems.
For products, this quarter saw the release of Samara’s Connected Forms application into general availability, allowing frontline workers to improve operations such as inspections and incident reports with digital forms.
Outlook for FY ’25 suggests continual growth, though predicted as a slightly smaller leap, sitting at a further 27-28 percent increase in 27-28 percent and totaling $1.18bn-1.19bn.
