Samsara swings highest quarter in three years with headcount swell

image of Sanjit Biswas, CEO and co-founder of Samsara | Samsara Q3

Samsara has announced its fourth quarter and full fiscal year 2023 financial results, reporting quarterly growth at its highest in three years and a 40 percent headcount swell.

The firm maintained its ‘Rule of 40’ increase for the second quarter running, successfully exceeding a 40 percent rise in combined revenue growth and profit margin.

Q4 revenue grew by 48 percent, reaching $186.6m and bringing total revenues for the full fiscal year to $652.5m, a 52 percent rise year-on-year.

Annual recurring revenue (ARR) reached 795.1m, increasing by 42 percent YoY, and showing the gains of the firm’s continued investments in the physical operations market. Going against the industry grain, a rise in customer demand has seen Samsara boost its headcount by 40 percent in fiscal 23 to over 2,200.

Samsara added over 400 more large customers to the fold this year, with over 1200 accounts now reaching over $100,000 in ARR, a 53 percent rise YoY.

The firm’s largest customers, bringing over $1m in ARR, also rose 65 percent YoY, reaching 51 in Q4, with a notable deal incorporating the US State Department of Transportation.

Operating losses also shrank significantly, reducing to $60m in Q4, bringing total operating losses down to $259.5m for the full fiscal year, a $94.3m change YoY.

Now entering its second year as a public company, guidance for Samsara’s full fiscal year 2024 expects revenues between $838-$848m, representing 28-30 percent growth YoY for the firm.

Dominic Phillips, CFO at Samsara, said: “Efficient growth continues to be a priority as demonstrated by a 45 percent Rule of 40 in Q4, our second consecutive Rule of 40 quarter and our highest quarter in the last three years. While we are pleased with this accomplishment, our goal is to continue making the necessary improvements that would allow us to achieve Rule of 40 consistently on a quarterly and annual basis.

“We ended FY 23 with more than 2,200 employees or approximately 40 percent growth year-over-year, adding headcount as a key input to driving future growth, but we continue to operate with discipline while making incremental investments. Our ARR per employee at the end of FY 23 was more than 350,000, an all-time high and 3x higher than it was three years ago.”

Sanjit Biswas, co-founder and CEO of Samsara, said: “It’s been an exciting year of delivering on our mission to increase the safety, efficiency, and sustainability of the operations that power the global economy. We ended fiscal year 2023 with $795m of ARR, growing 42 percent YoY. While growing at scale, we remain committed to operating efficiently on our path to profitability. We see a vast opportunity for our customers as they modernize their physical operations, which will have a profound impact on our global economy.”