Samsara Inc. (IOT)
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Earnings Call: Q4 2025

Mar 6, 2025

Mike Chang
Head of Investor Relations and Corporate Development, Samsara

Good afternoon and welcome to Samsara's Fourth Quarter Fiscal 2025 Earnings Call. I'm Mike Chang, Samsara's Vice President of Corporate Development and Investor Relations. Joining me today are Samsara Chief Executive Officer and Co-Founder Sanjit Biswas and our Chief Financial Officer Dominic Phillips. In addition to our prepared remarks on this call, additional information can be found in our shareholder letter, press release, investor presentation, and SEC filings on our investor relations website at investors.samsara.com. The matters we'll discuss today include forward-looking statements. Actual results may differ materially from those contained in the forward-looking statements and are subject to risks and uncertainties described more fully in our SEC filings. Any forward-looking statements that we make on this call are based on assumptions as of today, March 6th, 2025, and we undertake no obligation to update these statements as a result of new information or future events unless required by law.

During today's call, we'll discuss our fourth quarter fiscal 2025 financial results. We'd like to point out that the company reports non-GAAP results in addition to, and not as a substitute for, or superior to financial measures calculated in accordance with GAAP. Reconciliations of GAAP to non-GAAP financial measures are provided in our press release and investor presentation. We'll make opening remarks, dive into highlights for the quarter, and then open the call up for Q&A. With that, I'll hand over the call to Sanjit.

Sanjit Biswas
CEO and Co-founder, Samsara

Thanks, Mike, and thank you everyone for joining us today. FY 2025 was another year of durable and efficient growth for Samsara. We ended FY 2025 with $1.46 billion in ARR, achieving 32% year-over-year growth or 33% year-over-year adjusted growth. Our growth is driven by our partnership with some of the world's largest and most complex operations organizations. During the year, we grew our customers with more than $100,000 in ARR to 2,506, an increase of 36% year-over-year. We are operating at a rare combination of growth, scale, and profitability. Our momentum reflects the strength of our platform and the large market opportunity ahead of us. We finished the year with a milestone Q4 for large customers. We increased our $100,000 + ARR customer count by 203, a quarterly record. We also increased our $1 million + ARR customer count by 14, which is tied for a quarterly record.

We're now landing large enterprise customers that could become $10 million + ARR customers over time at a faster rate. These customers are global leaders in each of their industries. In Q4, we won one of the top three telecommunication companies in the world, one of the top three LTL carriers in the U.S., and Bimbo Bakeries, the largest commercial baking company in the U.S. We're landing these customers with initial footholds that can lead to years of future expansions that drive durable growth. These larger customers typically have more complex sales cycles that often span several years and are less predictable. We're proud to partner with our customers to transform how the world runs. We're just getting started and are excited for what we can accomplish together in the decades to come. Our customers choose us because we help them operate smarter with our connected operations platform.

This includes smarter safety with AI camera alerts, fuel savings with routing, asset utilization with location tracking alerts, maintenance with vehicle diagnostics, and workflows for frontline workers. Our growing data asset helps our customers work smarter with actionable insights. This improves the safety, efficiency, and sustainability of their operations. I'd like to share an example of a customer who's using data to operate smarter. In Q4, we expanded our partnership with one of North America's largest do-it-yourself moving and storage operators. They operate nearly 200,000 trucks, nearly 140,000 trailers, and 250,000 portable storage boxes. They also have over 23,000 rental locations. During the quarter, they added more than 10,000 Asset Tags to track their new portable storage boxes to improve their end customer experience. They previously tried many other solutions, including RFIDs and QR codes. They chose our Asset Tag because of its reliability and ease of use.

They also expanded into our safety and Telematics products in the quarter. In a pilot with us, they estimate that they saved $1 million across safety, idling, and maintenance costs. They saw a 61% reduction in safety events, an 82% reduction in distracted driving events, and a 47% reduction in harsh driving events. We're proud to partner with our customers to achieve these incredible outcomes. With better insights, they're operating smarter with data. In our first decade as a company, we've been helping our customers digitally transform. They typically spend the vast majority of their revenue on their operations, which are asset-heavy and labor-intensive. We began by digitizing their vehicles with safety and Telematics. Then we expanded to include heavy machinery, buildings, frontline workers, and smaller high-value assets. We've now built one of the world's largest operational data assets.

We processed over 14 trillion data points annually, reflecting over 50% year-over-year growth. We also saw more than 120 billion API calls in the last year, also 50% year-over-year growth. This is having an incredible impact. In FY 2025, with our customers, we helped prevent 250,000 accidents, digitized 300 million workflows, and saved more than 3 billion lbs of CO2. We're in a strategic position to combine AI with our large and unique data asset to make an even greater impact for our customers. We are entering a new age of intelligence. In just the last two years, AI has become 100 times less expensive. It's more widely available than ever before and will become significantly more abundant. This means that over time, we'll be able to apply it everywhere. Our customers are already using AI on our platform for proactive maintenance, training, detecting risky behaviors like drowsiness and more.

We believe AI will completely transform our customers' operations. In the future, our customers will use AI to dynamically monitor operations to enhance safety and efficiency, adjust delivery routes based on weather and traffic, and anticipate customer requests. By automating these tasks, AI will help fill labor shortages and skills gaps in operations. We're excited about how this will make our customers' operations safer, more efficient, and sustainable. We're looking forward to partnering with our customers to build this future. We believe we are uniquely positioned to amplify our customer impact and achieve durable growth in the next decade. This is a result of several key factors. First, we're in the early stages of digitizing a massive market. We're generating over $1 billion in ARR from our core vehicle applications alone. Today, less than half of North American commercial vehicles use Telematics, and only about 10% use safety products.

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