Q1 2025 Earnings Summary
Reported on Feb 18, 2025 (After Market Close)
Pre-Earnings Price$34.86Last close (Jun 6, 2024)
Post-Earnings Price$32.84Open (Jun 7, 2024)
Price Change
$-2.02(-5.79%)
- Raised full-year FY '25 guidance, confident in achieving targets even if macroeconomic conditions worsen. The company analyzed various scenarios and believes the guidance is adequately derisked.
- Strong growth driven by large enterprise customers and multiproduct transactions. The company reported a strong large customer quarter, with many multiproduct transactions driving net new ARR strength.
- Resilient demand due to clear and fast ROI for customers. IDC estimated that Samsara customers realize more than an 8x ROI on average, representing $2 million of savings per customer per year. This contributes to continued demand even in uncertain macroeconomic conditions.
- While the company reported a record non-GAAP gross margin of 77% in Q1, Dominic Phillips indicated that this figure includes some timing differences in payments and costs. He mentioned that they expect gross margins to stay closer to last year's levels in the near term, suggesting that the current high gross margins may not be sustainable.
- 59% of net new ACV in Q1 came from expansions with existing customers, while only 41% came from new logos. This reliance on existing customers for growth could be a concern if expansion opportunities diminish, potentially indicating challenges in acquiring new customers. ,
- The company has indicated that revenue beats will be smaller going forward. In Q1, they delivered about a 3% revenue beat, and Dominic Phillips noted that guidance is less conservative this year than in prior periods. This could imply that future earnings may not significantly exceed expectations as they have before, potentially signaling slowing growth momentum.
Research analysts covering Samsara.