Samsara Quarterly Results Highlight Strong Growth Across New Frontiers

Rhea-AI Summary

Samsara (NYSE: IOT) reported strong Q3 FY25 performance, reaching $1.35B in ARR. International markets contributed 17% of net new ACV, with notable growth in Mexico and Europe. The company saw significant expansion in public sector and construction industries, while its Asset Tags product achieved over 100% quarter-over-quarter growth in net new ACV.

The company processes over 10 trillion data points annually and introduced new AI-powered features including Samsara Intelligence, Low Bridge Strike Alerting, Electronic Brake Performance Monitoring System, and Engine Immobilizer 2.0. Notable customer expansions include Fraikin Group's implementation across their 60,000-vehicle European fleet, Florida Department of Fish & Wildlife, and Fresno County.

Positive

• Achieved $1.35B in ARR
• 17% of net new ACV from international markets
• Asset Tags product showed 100% QoQ growth in net new ACV
• Processes over 10 trillion data points annually
• Significant customer expansion with Fraikin Group implementing across 60,000-vehicle fleet

Negative

• None.

Insights

Financial Analyst

The Q3 results showcase impressive growth metrics, with $1.35B in ARR and strong international expansion. International markets contributed 17% of net new ACV, while the public sector and construction segments achieved record-high new ACV mix. The 100% quarter-over-quarter growth in Asset Tags revenue demonstrates successful product diversification.

The multi-product adoption strategy is proving effective, with major customer wins and expansions like Fraikin's 10,000+ vehicle deployment. The planned R&D investment of hundreds of millions signals strong growth potential in AI and data analytics capabilities. The company's expansion across diverse sectors and geographies reduces concentration risk while creating multiple revenue streams.

Tech Expert

Samsara's technological advancement is evident in their processing of over 10 trillion data points annually, which powers their AI initiatives. The launch of Samsara Intelligence suite, including AI-powered Assistant and Intelligent Experiences, positions them well in the growing connected operations market. Region-specific innovations like EBPMS for the UK market and Engine Immobilizer 2.0 for Mexico demonstrate strong product localization strategy.

The company's 150+ patents and continuous innovation in AI and data analytics create significant barriers to entry. The integration of safety features like Low Bridge Strike Alerting addresses critical market needs and showcases their commitment to solving real-world operational challenges.

Samsara ends Q3 FY25 with $1.35B in ARR as innovative solutions drive demand

SAN FRANCISCO--(BUSINESS WIRE)-- Samsara Inc. ("Samsara") (NYSE: IOT), the pioneer of the Connected Operations^® Cloud, today revealed strong growth in its new frontiers as the company experiences high global demand for its innovative solutions that increase safety, efficiency, and sustainability. Samsara’s at-scale breadth across products, customer sizes, end markets, and geographies is a key differentiator and driver of performance. Highlights include:

• International Growth Milestones: 17% of Samsara’s net new ACV in Q3 came from international markets, marking the second-highest contribution to date. Mexico achieved its highest-ever quarterly net new ACV mix, while Europe accelerated year-over-year ARR growth for the fourth consecutive quarter.
• Expanding Industry Reach: The public sector contributed its highest-ever net new ACV mix over the last four years, while construction drove the highest net new ACV mix for the fifth consecutive quarter. This reflects the value industries across the world of physical operations see in adopting Samsara’s differentiated solutions to drive impactful results.
• Emerging Products Fuel Demand: Samsara generated more than 100% quarter-over-quarter growth in Asset Tags’ net new ACV in just its second quarter of selling.

Driving Innovation with Customer-Centric Solutions

Samsara now processes more than 10 trillion data points annually. This unique view into the world of physical operations powers Samsara’s innovation flywheel and enables customers to address complex challenges. In the second half of FY25, Samsara rapidly delivered features tailored to both universal and regional needs. Highlights include:

• Samsara Intelligence: An expanded suite of AI offerings that help its customers make smarter decisions and run safer and more efficient operations. Samsara Assistant provides instant answers to complex operational questions, while Intelligent Experiences brings AI-driven recommendations and actions to critical operations processes.
• Low Bridge Strike Alerting: With this feature, customers can set the maximum height for each vehicle to minimize the chance of tall vehicles hitting the underside of low bridges that are common in Europe. Nearly 2,000 bridge strikes happen in the UK every year, costing UK taxpayers around £23M annually.
• Electronic Brake Performance Monitoring System (EBPMS): This feature enables customers to maintain their braking performance record and alert operators when it falls below acceptable standards or if it detects faults. Samsara expects that in 2025, EBPMS will become one of the only two accepted methods for brake testing in the UK.
• Engine Immobilizer 2.0: With security a top priority for customers in Mexico, Samsara delivered a feature that allows for new customized alerts that can meet operators’ needs when their safety is compromised. It also provides detailed real-time reports through the Samsara dashboard, helping customers effectively monitor the safety of their vehicles.

"Our customers are the backbone of the global economy and we partner with them to solve the hardest problems in the industry,” said Kiren Sekar, Chief Product Officer at Samsara. “We’re planning to invest hundreds of millions of dollars in R&D over the next few years, leaning into advanced AI and our massive data set to create products that answer the needs of the world’s largest and most complex operational companies.”

Samsara’s Multi-Product Platform Powers Customer Growth

Samsara’s product innovation has resulted in more than 150 patents and is fueling new multi-product adoption amongst its customers. New multi-product customers in Q3 include organizations like Florida Department of Fish & Wildlife and Fresno County. Existing customers such as Fraikin Group and Comfort Systems expanded with Samsara because of its clear and fast return on investment. For example, Fraikin, one of Samsara’s largest customers in Europe, is in the process of expanding Samsara to 10,000+ vehicles and all new vehicles in its 60,000-vehicle fleet across its European operations.

“Digital transformation and decarbonization are central to our strategy, and Samsara has played a crucial role in helping us build a standardized, future-proofed, and innovative platform,” said Edward Breedveld, Chief Digital Officer at Fraikin. “With this technology, we are greatly expanding our real-time data insights to optimize operations, minimize environmental impact, and ensure our vehicles meet the highest safety standards.”

To learn more about Samsara’s Q3 FY25 results, click here.

About Samsara

Samsara (NYSE: IOT) is the pioneer of the Connected Operations^® Cloud, which is a platform that enables organizations that depend on physical operations to harness Internet of Things (IoT) data to develop actionable insights and improve their operations. With tens of thousands of customers across North America and Europe, Samsara is a proud technology partner to the people who keep our global economy running, including the world’s leading organizations across construction, transportation and warehousing, field services, manufacturing, retail, logistics, and the public sector. The company's mission is to increase the safety, efficiency, and sustainability of the operations that power the global economy.

Samsara is a registered trademark of Samsara Inc. All other brand names, product names or trademarks belong to their respective holders.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241205068347/en/

Adam Simons

Samsara

media@samsara.com

Source: Samsara

FAQ

What was Samsara's (IOT) ARR in Q3 FY25?

Samsara (IOT) reported $1.35 billion in Annual Recurring Revenue (ARR) for Q3 FY25.

How much did international markets contribute to Samsara's (IOT) net new ACV in Q3 FY25?

International markets contributed 17% of Samsara's net new ACV in Q3 FY25, marking the second-highest contribution to date.

What was the growth rate of Samsara's (IOT) Asset Tags product in Q3 FY25?

Samsara's Asset Tags product achieved more than 100% quarter-over-quarter growth in net new ACV in its second quarter of selling.

How many data points does Samsara (IOT) process annually?

Samsara processes more than 10 trillion data points annually.