Q4 2024 Earnings Summary
Reported on Feb 18, 2025 (After Market Close)
Pre-Earnings Price$34.36Last close (Mar 7, 2024)
Post-Earnings Price$37.10Open (Mar 8, 2024)
Price Change
$2.74(+7.97%)
- Accelerating growth in large enterprise customers: Samsara added a quarterly record of 185 customers into the $100K+ ARR cohort, representing 49% year-over-year growth. They also signed their largest net new ACV deal ever with USIC, indicating strong momentum with large customers.
- Significant expansion potential within existing accounts: Large customers are not fully penetrated; for example, Samsara's largest customer has done 20 expansions since 2018. This suggests that $1 million-plus ARR customers can become many multiples the size that they are today on average.
- Resilient demand driven by real ROI and operations budget focus: Samsara sells into the operations budget, which tends to be more resilient. Their solutions deliver hard ROI through cost savings and safety improvements, driving continued demand even in uncertain macroeconomic conditions.
- Gross margin improvements may be limited going forward, as future operating leverage will come primarily from operating expenses rather than gross margin expansion. Dominic Phillips stated that more of the operating leverage will continue to come from OpEx leverage, particularly sales and marketing, rather than from gross margin improvements.
- Lack of planned expansion into new geographies may constrain future growth opportunities. When asked about expanding into new regions, Dominic Phillips indicated that the company feels they have enough market opportunity within their current geographies and are not planning to enter new markets at this time.
- The pipeline of large opportunities does not look significantly different compared to previous years, which may suggest limitations in accelerating growth in larger deals. Dominic Phillips mentioned that the pipeline "doesn't look terribly different than it has in previous years."