Samsara (IOT) Q3 2025 earnings call transcript

05-Dec-2024 Samsara, Inc. (IOT) Q3 2025 Earnings Call Samsara, Inc. (IOT) Q3 2025 Earnings Call 05-Dec-2024 CORPORATE PARTICIPANTS Michael Chang Vice President-Investor Relations & Corporate Development, Samsara, Inc. Sanjit Biswas Co-Founder, Chief Executive Officer & Director, Samsara, Inc. Dominic Phillips Executive Vice President & Chief Financial Officer, Samsara, Inc. OTHER PARTICIPANTS Matthew Hedberg Analyst, RBC Capital Markets LLC Keith Weiss Analyst, Morgan Stanley & Co. LLC Alex Zukin Analyst, Wolfe Research LLC Michael Turrin Analyst, Wells Fargo Securities LLC Kirk Materne Analyst, Evercore Group LLC Dylan Becker Analyst, William Blair & Co. LLC Matt BullockAnalyst, BofA Securities, Inc. Derrick Wood Analyst, TD Cowen James E. Fish Analyst, Piper Sandler & Co. Elyse Kanner Analyst, JPMorgan Securities LLC Junaid Siddiqui Analyst, Truist Securities, Inc. Mark William Schappel Analyst, Loop Capital Markets LLC Daniel Jester Analyst, BMO Capital Markets Corp. Samsara, Inc. (IOT) Q3 2025 Earnings Call 05-Dec-2024 MANAGEMENT DISCUSSION SECTION Michael ChangVice President-Investor Relations & Corporate Development, Samsara, Inc. Good afternoon and welcome to Samsara's Third Quarter Fiscal 2025 Earnings Call.

I'm Mike Chang, Samsara's Vice President of Corporate Development and Investor Relations. Joining me today are Samsara's 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, December 5, 2024, 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, [ph] we will (00:00:59) discuss our third quarter fiscal 2025 financial results. We'd like to point out 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 BiswasCo-Founder, Chief Executive Officer & Director, Samsara, Inc. Thanks, Mike, and thank you, everyone, for joining us today. Samsara delivered another strong quarter of durable and efficient growth. We ended Q3 with $1.35 billion in ARR, growing 35% year-over-year. We also delivered a quarterly record 10% adjusted free cash flow margin. Our growth is powered by our deep partnerships with the world's largest and most complex operations organizations. In Q3, we added 170 customers with more than $100,000 in ARR, our second highest quarterly additions ever. This includes major customer wins with large organizations like Papa John's, the world's third largest pizza delivery company; a Fortune 500 confectionery, food and beverage company; and a Fortune 1000 network of full service medical equipment companies.

Samsara, Inc. (IOT) Q3 2025 Earnings Call 05-Dec-2024 As we continue to grow, we're excited about the innovation that we're unlocking with more scale. This includes better AI models and benchmarking, stronger customer feedback loops to better understand our customers' challenges, and more R&D dollars to invest in technology. Our customers provide the mission-critical infrastructure that keeps the world running. They have asset heavy and labor-intensive operations. We're partnering with them to digitally transform their organizations. Our growing data asset feeds our AI-powered platform which delivers insights to our customers so they can improve their operations. This translates to clear and fast ROI with payback periods often measured in months. In a recent survey with IDC, they estimated that Samsara customers realize $2 million of savings on average per customer per year.

This equates to more than 8 times ROI. Typical savings include lower insurance premiums and payouts, improved fuel efficiency, lower maintenance costs, better asset utilization, improved worker hiring and retention. As our customers achieve ROI, they often expand with us for even more savings. I'd like to share two examples of customers that have realized clear and fast ROI. They both expanded this quarter and have had multiple expansions since becoming customers. Comfort Systems is a Fortune 1000 company that provides heating, ventilation, air conditioning and electrical contracting services. Their operations span over 170 locations, with over 40 operating units and over 18,000 employees. Comfort Systems prioritizes safety as a core value and is committed to a zero harm work environment.

With Samsara, they achieved an 85% reduction in vehicle safety events and a 72% reduction in speeding in just six months. They're now a top 25 customer and have had nine expansions since becoming a customer in 2022. In Q3, they added asset tags and expanded with more of Samsara's video-based safety, telematics and equipment monitoring. They're using asset tags to track high value, smaller equipment on job sites like scissor lifts, welders and pipe machines. They're also using asset tags to improve their asset utilization.

Next, let's turn to a Fortune 500 global company that provides water, hygiene and infection prevention solutions and services. They have 48,000 employees and 11,000 light-duty vehicles to support nearly 3 million customer locations worldwide. They became a customer in 2021 and have had 11 expansions with us. They're using our video-based safety and telematics applications across two of their divisions. We've also identified additional expansion opportunities in five more divisions. They have decreased harsh driving events by 37%, using Samsara's video-based safety application. In a pilot this year, they also reduced severe speeding by 48% and decreased forward collision warning events by 50% with in- cab alerts. We are proud to partner with our customers to make a real world impact on their operations.

AI is amplifying our impact on the safety, efficiency and sustainability of our customers' operations. We recently surveyed over 1,500 leaders in physical operations in our State of Connected Operations Report. Samsara, Inc. (IOT) Q3 2025 Earnings Call 05-Dec-2024 We found that AI-driven advancements are fundamentally reshaping how these organizations operate. 87% reported that they are planning to increase AI investments in the coming year. They reported many benefits of AI. 45% cited improvements in safety. 45% highlighted enhanced data and analytics capabilities. And 43% reported gains in operational efficiency. These findings show the powerful role AI will play in the future of connected operations. To bring more AI to our customers, we announced Samsara Intelligence earlier this week. It's an expanded suite of AI offerings that helps teams make smarter decisions and run safer, more efficient operations.

Samsara Intelligence has trained our expansive dataset, which has great scale and breadth. We now process more than 10 trillion data points and 70 billion miles driven annually. Our data spans a broad and diverse group of asset types, end markets, data types and geographies. Our customers face tough challenges, and our AI models use this data to help them solve real-world use cases. Samsara Intelligence includes some Samsara Assistant and Intelligent Experiences. Samsara Assistant is an interactive generative AI tool that provides instant answers to their operational questions. It improves the safety, maintenance and compliance of our customers' operations. Some examples include identifying vehicles with severe fault codes and receiving step-by-step instructions to resolve them; spotting time-sensitive disruptions in daily operations like unexpected stops which might signal a driver is at risk or in need of assistance; determining the safest drivers and recognizing them for their performance; and understanding hours of service regulatory requirements for new geography or customer type.

Intelligent Experiences embeds AI recommendations and actions throughout the Samsara platform. It makes AI accessible to the frontline by providing visual, training and coaching intelligence. For example, frontline workers can identify safety hazards from a photo on a job site. They can also provide proof of delivery records from a photo of a bill of lading. Operators can also improve their safety and compliance, while reducing administrative time by creating a custom worker training module just by uploading a policy document. Both Samsara Assistant and Intelligent Experiences are now available in beta to customers in North America. They'll be generally available after running our customer feedback loop. We're excited to see many of our initial customers already achieving significant impact from our new AI products.

Now, I'd like to turn to international growth. I've met with dozens of customers in our international markets this year. Every time I meet with them, I'm inspired by the long-term opportunity to expand our impact.

First, the international market is very large. There are more assets and frontline workers in Europe, Canada and Mexico than in the US. Second, the international market is less penetrated than the US and earlier in its digitization journey.

Third, despite the low penetration, the opportunity for impact in customer ROI is comparable in these regions. These customers are achieving similar savings from insurance payouts and premiums, fuel costs, improved worker retention and asset utilization. Samsara, Inc. (IOT) Q3 2025 Earnings Call 05-Dec-2024 In November, we hosted two international customer events: Go Beyond, our first European customer conference; and Innovation Day in Mexico. We brought together hundreds of local customers at each event to discuss how AI and data are impacting the world of connected operations. We also announced several new product features tailored for customers in these local markets. And Go Beyond in Europe, we announced two new features: low bridge strikes and electronic brake performance monitoring system which we call EBPMS.

Low bridge strikes uses AI o help our European customers minimize the risk of their trucks hitting low bridges. Customers set the maximum vehicle height and drivers are alerted whenever they approach a bridge that's too low to pass. Every year, nearly 2,000 bridge strikes happen in the UK, costing UK taxpayers around £23 million. EBPMS helps our customers maintain their braking performance record. It also alerts fleet operators when braking performance falls below acceptable standards or if it detects faults. We expect that in 2025, EBPMS will become one of the two accepted methods for brake testing in the UK. At Innovation Day in Mexico, we announced the Engine Immobilizer 2.0 feature. Physical security is top priority for our customers in Mexico.

This feature allows new customizable alerts to meet operators' needs when their safety is compromised. It also provides detailed real-time reports through the Samsara dashboard. This helps customers effectively monitor the safety of their vehicles. Our local customers were excited by these new capabilities and we're looking forward to seeing the impact. It's been another exciting quarter of durable and efficient growth for Samsara and we're all grateful for the partnership of our customers around the globe. We'd like to thank all of our Samsarians, customers, partners, and investors for being part of this journey. Together we're just getting started. I'll now hand it over to Dominic to go over the financial highlights for the quarter.

Dominic PhillipsExecutive Vice President & Chief Financial Officer, Samsara, Inc. Thank you, Sanjit. Q3 was another quarter of sustained high growth at scale and continued operating leverage. In particular, the quarter was highlighted by surpassing 100 $1-million-plus ARR customers, adding 170 $100,000- plus ARR customers, our second highest quarterly additions ever, more than 100% quarter-over-quarter growth in Asset Tag net new ACV and just our second quarter of selling the product, and achieving quarterly records for gross margin, operating margin and free cash flow margin. Q3 ending ARR was $1.35 billion, growing 35% year-over-year, and Q3 revenue was $322 million, growing 36% year-over-year. Several factors drove our strong topline performance in Q3.

First, we continue to focus on serving large enterprise customers to drive durable and efficient growth at scale. We now have 2,303 $100,000-plus ARR customers representing 38% year-over-year growth, including a quarterly increase of 170, which is our second highest quarter ever. In addition to adding more large customers, we also grew our average ARR per large customer to $318,000, up from $307,000 one year ago. Samsara, Inc. (IOT) Q3 2025 Earnings Call 05-Dec-2024 The combination of adding more large customers and a higher average ARR resulted in an increased ARR mix for $100,000-plus customers to 54% in Q3, up from 51% one year ago, and 47% two years ago.

Second, this quarter included a balanced mix of landing new customers and expanding existing customer relationships. For new logos, we added over 1,000 core customers for the fifth consecutive quarter, including our second highest number of core customers added. Additionally, a quarterly record 78 of the 170 $100,000-plus ARR customers added were new customers. Also, 9 of the top 10 new customers signed with multiple products. One of the largest new customers, a global leader in third-party logistics with over 110,000 employees, signed a more than $1 million transaction across four different applications. In addition to licensing our two vehicle-based applications, video-based safety and vehicle telematics, this customer also subscribed to equipment monitoring and one of our newer software-only SKUs in their initial transaction.

For expansions, 16 of our top 25 customers expanded in Q3 and 21 of our top 25 customers have expanded over the past two quarters. Also, 8 of the top 10 Q3 expansions included multiple products. The strength and expansions also allowed us to achieve our target dollar-based net retention rate of 115% and 120% for core and large customers, respectively. And third, we demonstrated strong execution across several frontier markets. 17% of net new ACV came from international geographies in Q3, the second highest quarterly contribution ever. The strength in international was driven by Mexico, which contributed its highest ever quarterly net new ACV mix, including nine transactions greater than $100,000; and Europe, which accelerated year-over-year ARR growth for the fourth consecutive quarter.

Construction drove the highest net new ACV mix of all industries for the fifth consecutive quarter, and public sector contributed its highest net new ACV mix over the last four years, including a quarterly record 16 transactions greater than $100,000 led by customers such as the City of Omaha, Fresno County and the Florida Department of Fish and Wildlife. And we also saw strength in emerging products. In Q3, we surpassed 70% of large multiproduct customers using a non-vehicle application, and we achieved more than 100% quarter-over-quarter growth and asset tag net new ACV in just our second quarter of selling that product. In addition to driving strong top line growth, we continued to deliver operating leverage across our business as we scale.

We delivered quarterly records across all key non-GAAP profitability metrics, including a 78% gross margin and 11% operating margin and a 10% free cash flow margin. Okay, now turning to guidance. We're raising our full-year guidance across all key metrics because of our strong Q3 performance. As a reminder, last year's fiscal Q4 included a 14th week compared to a standard 13-week quarter in this year's fiscal Q4. Samsara, Inc. (IOT) Q3 2025 Earnings Call 05-Dec-2024 We expect the impact of having one fewer week in Q4 this year will remove 3 percentage points of year-over-year revenue growth in FY 2025, which was already factored into previous and current adjusted revenue guidance. For full year FY 2025, we expect revenue to be between $1.237 billion and $1.239 billion, representing year-over- year adjusted revenue growth of 35%.

Our implied Q4 revenue guidance from last quarter of $334 million to $336 million remains unchanged. We expect FY 2025 non-GAAP operating margin to be approximately 7% and non-GAAP EPS to be between $0.22 and $0.23. And finally, please see additional modeling notes in our shareholder letter. So, to wrap up, we are pleased with our Q3 performance and improved outlook for FY 2025. In Q3, we sustained high growth at scale while also delivering record operating leverage. And looking forward, we believe we're well-positioned to continue delivering durable and efficient growth for the following reasons. We're digitizing the world of physical operations, which is a very large and underserved market opportunity, and that's driving strong customer demand, our products offer real ROI and a fast payback period to our customers, and we're targeting a very different operations budget.

We're proud to partner with our customers and are excited to continue helping them operate more safely, efficiently and sustainably. And with that, I'll hand it over to Mike to moderate Q&A.

QUESTION AND ANSWER SECTION Michael Chang Vice President-Investor Relations & Corporate Development, Samsara, Inc. A Thanks, Dominic. We'll now open line up for questions. When it's your turn, please limit your questions to one main question and one follow-up question. The first question today comes from Matt Hedberg with RBC, followed by Keith Weiss with Morgan Stanley.

So, some of the recent announcements, I think, highlight our continued investment in AI. Like you said, Matt, we've been investing in AI for several years now. The video-based safety application really unlocked a tremendous amount of value for our customers. We think there are additional ways to unlock value using all of the data we've been collecting. I highlighted 10 trillion data points, 70 billion miles driven on the platform every year. Samsara, Inc. (IOT) Q3 2025 Earnings Call 05-Dec-2024 So, we see ways to not just unlock value in safety, but in areas like maintenance where we're able to find insights in the fault code data. We see a tremendous number of fault codes over the year. We understand the outcomes of those.

So, that's one example. And then there's other areas like fuel efficiency and just asset utilization. So, we kind of see AI having impact across the board.

Sanjit Biswas Co-Founder, Chief Executive Officer & Director, Samsara, Inc. A We're absolutely excited about it for the long term. I think what you'll see and what you've seen from us and what you'll continue to see is continued investment that's in go-to-market teams, customer success support. And then on the product side, we're always running a customer feedback loop. We're proud of what we've built so far. But some of the newer features and functionality like the low bridge strikes and EBPMS and those kinds of features, I think, are uniquely relevant in some of these international markets. The way we figure that out is by spending time with our customers, which does take some time.

Michael Chang Vice President-Investor Relations & Corporate Development, Samsara, Inc. A The next question comes from Keith Weiss with Morgan Stanley, followed by Alex Zukin with Wolfe.

Samsara, Inc. (IOT) Q3 2025 Earnings Call 05-Dec-2024 Dominic Phillips Executive Vice President & Chief Financial Officer, Samsara, Inc. A Yeah. Hey, Keith. I'll take that. It was pretty balanced this quarter. It was slightly tilted a little bit more toward expansion and we've seen that over the last few quarters as we continue to move more and more upmarket in some of these larger enterprise deals, they'll tend to purchase. Over time, I mentioned, I think 16 out of 25 of our top 25 customers did an expansion in Q3. And so, that's really driving that expansion. Something we're really happy about is it's happening naturally. We don't have a different kind of go to market motion to reward hunters versus farmers.

We have sales reps that [ph] are assigned accounts (00:20:14) in different territories and they're able to sign new logos in those territories, and they continue to maintain those customer relationships for life and focus on the expansions as well.

Sanjit Biswas Co-Founder, Chief Executive Officer & Director, Samsara, Inc. A Keith, as we talked about in the prepared remarks, these are products that are in beta. We're excited to make them generally available to customers in beta. And so, we're going to use that as an opportunity to figure out how to price and package them. We are also continuing to invest in AI in the core platform. So, it's kind of a [ph] boAt (00:21:13) strategy, but we'll come back to you all when we have finalized pricing.

Michael Chang Vice President-Investor Relations & Corporate Development, Samsara, Inc. A Great. The next question comes from Alex Zukin with Wolfe, followed by Kash Rangan with Goldman Sachs.

Samsara, Inc. (IOT) Q3 2025 Earnings Call 05-Dec-2024 Dominic Phillips Executive Vice President & Chief Financial Officer, Samsara, Inc. A Hey, Alex. It's Dominic. I'll take that. Yeah, it was a pretty consistent quarter in Q3. It's similar to what we've seen in previous quarters. As I said, we're doing more enterprise deals, larger deals, and those tend to be more back- of-the-year weighted, but no real change. I did hear anecdotally of a few customers that said that they wanted to delay a purchase decision until after the election results. We've already closed a number of those deals in Q4. But I would – that wasn't a material impact on the quarter. But it was notable.

Dominic Phillips Executive Vice President & Chief Financial Officer, Samsara, Inc. A Yeah. Yeah. So, I mean, yeah, we're definitely not in a position yet to give formal guidance for next year. As you know, Q4 is our largest quarter and our FY 2026 plan is going to be heavily influenced by what happens over the next couple of months. And so, we really need to kind of get through the quarter and then we can finalize our FY 2026 plan. What I would say is that based on our current outlook, we do feel good with where the current consensus dollars are right now. I don't think that that needs to change, but we'll provide more formal guidance on the next earnings call.

Michael Chang Vice President-Investor Relations & Corporate Development, Samsara, Inc. A The next question comes from Kash Rangan with Goldman Sachs, followed by Michael Turrin with Wells Fargo. Kash? All right, next question. Let's go with Michael Turrin with Wells Fargo, followed by Kirk Materne with Evercore.

Samsara, Inc. (IOT) Q3 2025 Earnings Call 05-Dec-2024 Dominic Phillips Executive Vice President & Chief Financial Officer, Samsara, Inc. A Yes. So as I – yeah, Michael. It's Dominic. As I talked about at our Investor Day a few months back, and we still have so much opportunity within our core products. If I look at just the vehicle telematics market just in the US, more than 50% of commercial vehicles still aren't using technology. If you look at our largest product in our video-based safety, 90% of commercial vehicles in the US are not using technology. And so, there's still so much opportunity for us to land and expand with our two vehicle-based products. And then we've got a whole host of other non-vehicle-based products that are doing more than $150 million of ARR and still growing very quickly that are great opportunities to land and expand impact that we have with customers.

And so, we feel really good about our product set. We're continuing to innovate quickly, introducing things like Asset Tag this year and all of the kind of the AI announcements that came out this week. So, we feel good about the pace of product innovation.

Dominic Phillips Executive Vice President & Chief Financial Officer, Samsara, Inc. A Yeah. I mean, things are just still so unclear. It's not – we're not sure how things are going to play out. So, we're definitely working through a number of strategies based on different scenarios. To your point, we have a lot of experience dealing with some of this. We have a really incredible supply chain team. They're really good at navigating through some of these different scenarios. And so, we just need to see what happens when the new administration comes in, what policies they put in place, and we're thinking through some of that and we can feed that into the outlook when we provide that in three months.

Michael Chang Vice President-Investor Relations & Corporate Development, Samsara, Inc. A Next question comes from Kirk Materne with Evercore, followed by Dylan Becker with William Blair. Kirk?

Michael Chang Vice President-Investor Relations & Corporate Development, Samsara, Inc. A Yeah. We can hear you.

Great question, Kirk. So, we run feedback loops across all of our frontiers. So, the different geographies as well as public sector. But we also spend time trying to understand what's going on in each industry vertical. Dominic highlighted construction has been an industry that's been performing really well for us. They're digitizing rapidly and it's because they have a lot of assets, they are labor intensive. But some of those assets are different. So, they'll have big, yellow, iron bulldozers or lots of small tools they get left behind the job sites, and they've been great adopters of the new AT11 product, for example. So, we do spend time with each of these different industries trying to understand their needs.

80% of the use case and their needs are very similar across the board. I would say about 20% either acquire partnerships and integrations or maybe some tweaks or additional product features and that's how we think about the investment.

Dominic Phillips Executive Vice President & Chief Financial Officer, Samsara, Inc. A No, I don't think so. I mean, one day is not going to have an impact on our business. I mean, we run in the weekends and holidays in various quarters. And so, I don't expect one day to have a material impact.

Samsara, Inc. (IOT) Q3 2025 Earnings Call 05-Dec-2024 Michael Chang Vice President-Investor Relations & Corporate Development, Samsara, Inc. A Next question comes from Dylan Becker with William Blair, followed by Matt Bullock with BofA.

Sanjit Biswas Co-Founder, Chief Executive Officer & Director, Samsara, Inc. A I'll take that one. So, we're pleased with the growth. Like you said, it's been sort of accelerating on a kind of consistent regular basis, but it still feels very early. I would say our international market share is still low-single digits. There is growing awareness. We have more reference customers. And to the earlier question, we have more of the sort of product features people are looking for that are unique to these markets, like low bridge strikes, for example. So, I think we have a great pathway to continue growing for a while, but it still feels early.

Dominic Phillips Executive Vice President & Chief Financial Officer, Samsara, Inc. A Yeah. I think for us, again, it's really a balanced focus on both sustaining high growth and driving more operating leverage. We think that we can continue to do both. I think near term, from an operating leverage perspective, you're right that our largest area of investment is in go- to market and, therefore, is most likely to be the area of most leverage. The cost of sale on renewed dollar of ACV is lower than it is when we first land that customer or if they expand their relationship with us. And so, there's still a significant portion. We're a nine-year-old company. We sell three- to five-year contracts.

And so, there's still a large portion of our customers that have not gone through a first renewal. And as that happens, I would expect to see more natural leverage in go-to market.

Michael Chang Vice President-Investor Relations & Corporate Development, Samsara, Inc. A The next question comes from Matt Bullock with BofA, followed by Derrick Wood with TD Cowen.

Sanjit Biswas Co-Founder, Chief Executive Officer & Director, Samsara, Inc. A Hey, Matt. Well, I'll take that as a compliment. We really work hard to deliver new features and functionality, and we don't want to wait for annual customer conference. So, it is not something that we're waiting until each June of every year to release features. Samsara Intelligence is a whole kind of portfolio suite of products and features for us, and so we're excited to get that out the door. I think you should expect to see us continue a pretty rapid pace of innovation as we continue to invest in R&D and scale our engineering team.

Samsara, Inc. (IOT) Q3 2025 Earnings Call 05-Dec-2024 Our position is unchanged. I think we're seeing our customers really rapidly adopt our products because it's a platform. It's a system of record for them. So, it's not just telematics, or video-based safety, or equipment monitoring, or the other products. It's everything together. That's a strong competitive position that we're in. And I think it all comes back to can we deliver really clear ROI for our customers, which we are. So, we kind of aren't changing our strategy relative to some of those moves that have been made in the market. And we're going to continue to stay focused on the customer.

Michael Chang Vice President-Investor Relations & Corporate Development, Samsara, Inc. A Next question comes from Derrick Wood with TD Cowen, followed by Jim Fish with Piper Sandler.

Sanjit Biswas Co-Founder, Chief Executive Officer & Director, Samsara, Inc. A Yeah. So, I think if you spend time with drivers, everyone's very accustomed to the idea of having a dash camera. It's most often used for exonerations, so it's not so much the inward facing, but being able to see what happened if there was an accident or some sort of incident on the road. The inward facing side is really around safety and I think both fleets and drivers want to be safe on the roads. They're putting their lives at risk every day when they're doing their jobs. So, if we can help break bad habits like either not wearing a seatbelt or using a mobile phone or being distracted, it makes everyone's lives a little bit better.

So, there is increased awareness and adoption of what these technologies do. And then the other piece is because of artificial intelligence, it's not like there's someone in the back office watching all these videos. It's really a computer model sitting in the camera that's helping provide those real time alerts. And I think drivers now understand the technology, and that's really increased their comfort level with it.

Dominic Phillips Executive Vice President & Chief Financial Officer, Samsara, Inc. A Samsara, Inc. (IOT) Q3 2025 Earnings Call 05-Dec-2024 Right now, it's really – we have more than 300 technology integrations, OEMs, insurance providers, other technology vendors, vertical specific applications. These are really, really important integrations, especially as we get into these large enterprise deals where they want to use Samsara as their system of record and pull in a bunch of external data. We have more than 85 billion API calls a year. And so I think that's a good metric just to show the kind of usage that we're seeing with these integrations. Right now, that's where – our plans are to just have this as a technology kind of integration hub.

And I think longer term, we could think about opportunities to open this up and [ph] maybe their ISPs (00:36:01) or ways to monetize the data or the applications but not in the near term.

Michael Chang Vice President-Investor Relations & Corporate Development, Samsara, Inc. A The next question comes from Jim Fish with Piper Sandler, followed by Alexei with JPMorgan.

So there's a pretty broad set of use cases for the asset type. It's not limited to the construction industry. We see it getting good adoption in field services and even transportation, logistics and so on. If I had to kind of generalize, there's three core use cases. The first is finding lost or stolen assets. Those again, are across industries. The next is helping save frontline workers time to locate assets. So, once they arrive at a job site, they can figure out where something is. And then the third is improving asset utilization. Almost all the industries served they're both labor intensive, but also asset heavy industries. And so, if these customers can figure out which call it 10% or 20% of their assets aren't well utilized and sell those assets off, they can use that cash for more productive purposes.

So, that's where I think ATs are getting used across the board, and that's pretty consistent across industries.

You called out go-to market as kind of a key focus for investments next year. How should we think about the mix of rep hiring in terms of domestic versus international given some of the traction that we're seeing in the international space so far? Thanks. Dominic Phillips Executive Vice President & Chief Financial Officer, Samsara, Inc. A Yeah. I mean, I think our capital allocation is going to be focused on, primarily in go-to market, but also on R&D. I think the overall number of salespeople that we will hire will be higher in the US just because that's a larger part of our business. The year-over-year growth may be a little bit higher in international just because it's a smaller number and a big opportunity.

But as I kind of said earlier, we really just need to get through the fourth quarter and we'll have a better outlook for next year and we'll make our plans at that time.

Michael Chang Vice President-Investor Relations & Corporate Development, Samsara, Inc. A Okay. The next question comes from Alexei with JPMorgan, followed by Daniel Jester with BMO.

Dominic Phillips Executive Vice President & Chief Financial Officer, Samsara, Inc. A Yeah. So, the renewal rates have been very strong. They're embedded in the net retention rate metrics that I gave of kind of 115% and 120% for core and large customers. So, that's been consistent. And customers, well, we've talked earlier about expansions being a big part of our business. Customers will expand throughout the life of the contract, but they do – they definitely do it at time of renewal as well. So, it's a good opportunity to have brought our conversations with customers and we've seen a lot of success out of that.

Michael Chang Vice President-Investor Relations & Corporate Development, Samsara, Inc. A The next question comes from Daniel Jester with BMO, followed by Junaid with Truist. Dan? Okay. Let's go next to Junaid with Truist.

Sanjit Biswas Co-Founder, Chief Executive Officer & Director, Samsara, Inc. A Absolutely. So, it is an area we differentiate in. We, at our scale, are able to invest in R&D at a pretty significant level. We have a very large security-related team focused on these sorts of risk factors and attacks. And I think it's an area that our large enterprise customers who are very sophisticated are asking about and we're able to differentiate it. So, we have a number of certifications, whether that's the ISO 27001 certification or ones related to state and federal, or state and local government certification. So, we're going to keep investing there. And I think it's a really important area for customers to be aware of because these are the critical infrastructure companies that power our planet.

So, they're, of course, targets for these attacks, and we've been able to do a good job of helping keep them safe.

Michael Chang Vice President-Investor Relations & Corporate Development, Samsara, Inc. A Okay. Our next question comes from Mark with Loop Capital, and then we'll come back to check with Kash and Dan. Mark?

Michael Chang Vice President-Investor Relations & Corporate Development, Samsara, Inc. A Yeah, we can hear you.

Samsara, Inc. (IOT) Q3 2025 Earnings Call 05-Dec-2024 Sanjit Biswas Co-Founder, Chief Executive Officer & Director, Samsara, Inc. A Yeah. So, uptake has been good. These are relatively newer products in terms of Connected Workflows and Forms. All of our customers have some sort of pen and paper process they're looking to digitize or modernize. So, that's what we're really selling into. Some of the newer features that we released as part of the Samsara Intelligence push earlier this week I think are relevant there. Visual Intelligence is a great example. You can basically take a photograph of a form. We will automatically identify the fields within it, fill out the workflow fields. And then we can even do things like understand what the risks are in a job site photo.

So, that's brand new functionality. We just released it a couple of days ago and the beta testers have been really thrilled with it. So, we're excited to keep doing more of that.

Michael Chang Vice President-Investor Relations & Corporate Development, Samsara, Inc. A Okay. Our Last question comes from Dan Jester with BMO. Dan?

Michael Chang Vice President-Investor Relations & Corporate Development, Samsara, Inc. A Yeah, we can hear you.

Dominic Phillips Executive Vice President & Chief Financial Officer, Samsara, Inc. A I will just say it's been an area of focus and continued investment, and these deals can take time to land. And we saw a combination of that happened and Q3 with a lot of success, again a record 16 deals over $100,000. And the highest net new ACV mix we've seen in the public sector in the last four years. So really strong quarter.

Samsara, Inc. (IOT) Q3 2025 Earnings Call 05-Dec-2024 Michael ChangVice President-Investor Relations & Corporate Development, Samsara, Inc. All right. So this includes the question-and-answer portion. Thank you, all, for attending our Q3 fiscal year 2025 earnings call.

Before I let you go, I have a few further announcements. We'll be participating the following bus tours in San Francisco, the Piper Sandler Bus Tour on December 10, the FBN Virtual Tech Conference on December 11, the Allen & Company Bus Tour on December 12, the Goldman Sachs and BofA Bus Tours on January 7, the Evercore Bus Tour on January 7, and the Jefferies Bus Tour on January 9th. We hope to see at one of these events. That's it for today's meeting. If you have any follow-up questions, you can e-mail us at ir@samsara. com. Bye, everyone. Disclaimer The information herein is based on sources we believe to be reliable but is not guaranteed by us and does not purport to be a complete or error-free statement or summary of the available data.

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