Samsara Inc.

What they do

Samsara sells a subscription-based Connected Operations Platform combining IoT devices, cloud software and AI to digitize physical operations. Its Applications include AI Video-Based Safety, Telematics, Asset Tracking, Routing, Commercial Navigation, Maintenance, Connected Training, Connected Forms and Site Visibility. It serves customers from small businesses to global enterprises and governments, with over 12,000 Core Customers (over $25,000 ARR) and 3,605 customers over $100,000 ARR as of the latest quarter.

Revenue drivers

• Large customers over $100,000 ARR — This is the company's stated focus segment, growing from 2,771 to 3,605 customers year over year, and includes customers over $1,000,000 ARR that generated over $500 million of ARR.
• Subscription revenue from Connected Operations Platform — Revenue is primarily subscription-based, with total revenue of $508.4 million in Q2 FY2027, up 30% year over year; total ARR was $2.125 billion.
• AI features and Agents — The company cites customer adoption of some of its latest AI features up more than 4x in the last two months, though no separate revenue figure is disclosed.
• Core Customers (over $25,000 ARR) — As of January 31, 2026, there were over 12,000 Core Customers, representing a broad base beneath the large-customer focus.

Recent performance

Q2 FY2027 revenue was $508.4 million, up 30% year over year, with net new ARR of $134.1 million, up 28%. GAAP net income was $16.2 million, or $0.03 per diluted share, the fourth consecutive quarter of GAAP profitability, versus a net loss of $16.8 million in the prior-year quarter. GAAP gross margin was 77% and non-GAAP operating margin was 21%, up from 15%. Operating cash flow was $73.5 million and free cash flow was $64.7 million. For the six months ended August 1, 2026, revenue was $987.3 million and net income was $60.8 million.

Strategy

Samsara emphasizes maximizing lifetime customer value and continued investment to expand use of its platform. It focuses sales efforts on larger customers and has invested in its partner ecosystem and additional Applications for larger customers. The company is promoting its latest AI features and Agents, citing rapid adoption, and positions its platform as an open system connecting assets and third-party systems. Management highlights durable and efficient growth, with 30% ARR growth for the third consecutive quarter.

Risks

• Growth rate deceleration — The company states its revenue growth rate has declined and expects it to continue declining as the business matures and competition increases.
• Customer concentration in large accounts — Its strategy relies on large customers over $100,000 ARR, where contract terminations, downsizing or non-renewals could disproportionately affect ARR and revenue.
• Macroeconomic and regulatory exposure — Samsara cites risks from tariffs, trade policy, inflation, interest rates, foreign currency and global supply chain challenges that could affect its customers and partners.
• Platform security and availability — The company's ability to maintain the security and availability of its solution and business systems is a stated risk that could harm customer trust and results.

Outlook

For Q3 FY2027, management guides total revenue of $514 million to $516 million, about 24% year-over-year growth, and 23% to 24% in constant currency. For the full FY2027, it guides revenue of $2.043 billion to $2.047 billion, 26% growth, with a 21% non-GAAP operating margin and non-GAAP diluted net income per share of $0.76 to $0.78. Management expects GAAP profitability for both periods.