Samsara Inc (IOT)

Next Year's Guidance
Q: Any initial thoughts on guidance for next year?
A: We're not ready to provide formal guidance yet but feel good about current consensus estimates. We need to get through Q4, our largest quarter, before finalizing our FY '26 plan. Based on our current outlook, we don't think consensus numbers need to change, and we'll offer more formal guidance on the next earnings call -.

Impact of New Administration
Q: Are there any anticipated impacts from the new administration, such as tariffs?
A: Things are still unclear, and we're working through strategies based on different scenarios. We have significant experience dealing with such situations and an excellent supply chain team to navigate them. We'll see what policies the new administration implements and factor that into our outlook provided in three months -.

Sales Mix and Net Retention
Q: What's the current mix between upsells and net new business, and are there changes in your distribution model?
A: This quarter was balanced but tilted slightly more toward expansion. We've seen this trend over the last few quarters. As we move upmarket into larger enterprise deals, customers tend to purchase over time. In Q3, 16 of our top 25 customers expanded their relationships with us, driving growth. Our go-to-market model hasn't changed; sales reps manage accounts for life, focusing on both new logos and expansions -.

Operational Leverage from Renewals
Q: How are you thinking about operational improvements as renewals come up?
A: We're balancing high growth with driving operating leverage and believe we can do both. Our largest investment is in go-to-market, where we expect leverage since the cost of sale on renewals is lower than initial sales. Many customers haven't had their first renewal yet, as we're a 9-year-old company with 3- to 5-year contracts. As renewals happen, we'll see more natural leverage in go-to-market -.

Renewal Rates and Pricing
Q: Can you discuss current renewal rates and your pricing power during renewals?
A: Renewal rates are very strong, reflected in net retention rates of 115% to 120% for our core large customers. This has been consistent. Customers often expand throughout the contract life and at renewal, providing opportunities for broader discussions. We've seen a lot of success with this approach -.

ARR Scale and Growth Potential
Q: How does your current product set address ARR scale, and what about new growth opportunities?
A: There's significant opportunity within our core products. Over 50% of commercial vehicles in the U.S. aren't using technology, and 90% aren't using video-based safety solutions. We have non-vehicle products generating over $150 million in ARR and growing quickly. We feel good about our product set and are innovating rapidly with new offerings like Asset Tag and AI announcements -.

AI Product Monetization
Q: Will new AI products like Samsara Intelligence and Assistant be monetized separately?
A: These products are in beta, and we're using this phase to determine pricing and packaging. We're also investing in AI across our core platform. It's a dual strategy: enhancing the platform and potentially monetizing new offerings. We'll update once we've finalized pricing -.

International Expansion Steps
Q: What operational steps are needed to drive further international growth?
A: We'll continue investing in go-to-market teams, customer success, and support. On the product side, we incorporate customer feedback and build features relevant to international markets, like Low Bridge Strikes and EBPMS. Spending time with customers in these markets is crucial, though it takes time -.

Industry Consolidation Impact
Q: How does industry consolidation affect competitive dynamics, and can you capture additional share?
A: The market is large with many players, and consolidation is consistent with past trends. Our position is unchanged; customers rapidly adopt our platform because it's a comprehensive system of record. We're focused on delivering clear ROI and will continue to prioritize our customers rather than alter our strategy due to market moves -.

Demand Environment and Sales Cycle
Q: Have you seen any shifts in the sales cycle or demand environment?
A: The quarter was consistent with previous ones. We're engaging in more enterprise and larger deals, which tend to be back-weighted in the year. Some customers delayed purchases until after the election, but this wasn't material and we've already closed many of those deals in Q4 -.

Go-To-Market Investments
Q: How should we think about sales rep hiring domestically versus internationally?
A: Our capital allocation will focus primarily on go-to-market and R&D. We'll hire more salespeople in the U.S. because it's a larger part of our business. However, year-over-year growth may be higher internationally due to the significant opportunity there. We'll finalize our plans after Q4 -.

Public Sector Strength
Q: What's driving the strong performance in the public sector this quarter?
A: It's been an area of focus and continued investment, and these deals can take time to land. In Q3, we had a record 16 deals over $100,000 and the highest net ACV mix in the public sector in the last four years, resulting in a strong quarter -.

Video Safety Adoption
Q: Is there increased market acceptance of driver-facing cameras, aiding sales?
A: Drivers are accustomed to dash cameras, mainly for exoneration. Inward-facing cameras focus on safety, which both fleets and drivers value. There's increased awareness and adoption. With AI, it's not someone watching videos but a model providing real-time alerts. Drivers understand the technology better, increasing comfort levels -.

Connected Workflows Uptake
Q: What uptake are you seeing for connected workflows and forms products?
A: Uptake has been good for these relatively new products. Customers aim to digitize pen-and-paper processes. New features like Visual Intelligence allow automatic identification of form fields from photos, filling out workflows, and understanding risks in job site photos. Beta testers are thrilled with these functionalities -.

Data Security Differentiation
Q: Are data security and privacy important in customer discussions, and is this a differentiator for you?
A: Absolutely. We invest significantly in R&D and have a large security team focused on risk factors and attacks. Our enterprise customers value this, and we hold certifications like ISO 27001 and others relevant to government sectors. We'll continue investing as it's crucial for critical infrastructure customers who are targets for attacks. We've been effective in keeping them safe -.

Application Marketplace
Q: What monetization opportunities are you seeing in the application marketplace?
A: We have over 300 technology integrations and handle more than 85 billion API calls a year, highlighting significant usage. Currently, it's a technology integration hub vital for enterprise deals. In the longer term, we may explore monetizing data or applications but not in the near term -.

Asset Tag Use Cases
Q: What are the main use cases for the Asset Tag product, and is there customer diversity?
A: The use cases are broad and not limited to construction. Adoption is strong in field services and transportation logistics as well. Three core use cases are finding lost or stolen assets, helping frontline workers locate assets faster, and improving asset utilization. These applications are consistent across industries -.

Product Release Pace
Q: Is your product release cadence accelerating, and will this continue?
A: We aim to deliver new features rapidly and don't wait for our annual customer conference. Samsara Intelligence is a suite of products we're excited to release. You can expect us to continue a rapid pace of innovation as we invest in R&D and scale our engineering team -.

International Growth Drivers
Q: What's driving international growth—ROI, brand awareness, or referenceable customers?
A: Growth is accelerating but still early, with international market share in low single digits. There's growing awareness and more reference customers. We have product features unique to these markets, like low bridge strikes. We have a great pathway for continued growth -.

Leap Year Impact
Q: Should we expect any seasonality impact due to the leap year last year?
A: No, one day doesn't have a material impact on our business. We encounter weekends and holidays in various quarters, and we don't expect any significant effect from the leap year -.