Samsara Q2 Earnings Call Highlights

Samsara NYSE: IOT reported second-quarter fiscal 2027 results marked by 30% year-over-year growth in annual recurring revenue and revenue, while the provider of connected operations software expanded its large-customer base and maintained GAAP profitability. The company ended the quarter with $2.1 billion in ARR, up 30% from a year earlier, after adding $134 million in net new ARR. Revenue rose 30% year over year to $508 million, or 29% in constant currency. CFO Dominic Phillips said net new ARR grew 28% year over year in constant currency, representing the company’s second-highest growth rate over the past 10 quarters. Samsara Shows What Happens When Fundamentals Beat Fear Samsara also reported GAAP earnings per share of $0.03, its fourth consecutive quarter of GAAP profitability. Non-GAAP operating margin was 21%, improving six percentage points from a year earlier, while free cash flow margin was 13%. Large Customers and Multi-Product Adoption Drive Growth Large enterprises remained an important source of growth. Samsara added a quarterly record 242 customers with at least $100,000 in ARR and 20 customers with at least $1 million in ARR. The company ended the quarter with 3,605 customers in the $100,000-plus ARR cohort, which accounted for $1.3 billion in ARR and grew 38% year over year. Samsara Is Forming a Triple Bottom—Time to Buy? The company also ended the period with 210 customers generating at least $1 million in ARR. ARR from those customers surpassed $500 million and increased more than 50% year over year, according to Phillips. Multi-product adoption continued to increase among larger customers. Phillips said 96% of customers with at least $100,000 in ARR subscribed to two or more products, while 72% subscribed to three or more. Nine of Samsara’s 10 largest net new annual contract value transactions during the quarter included at least two products. Phillips said the company met its target dollar-based net retention rate of approximately 115% for core customers. More than 20% of net new ACV came from emerging products for the third consecutive quarter, and more than 60 transactions included over $100,000 in emerging-product net new ACV. New Products Expand AI and Operations Offerings At its Beyond customer conference in June, Samsara introduced products and features intended to expand its use of artificial intelligence across physical operations. The company said more than 4,000 people attended the event and that adoption of certain recently introduced AI features increased more than fourfold over the prior two months. Tracking Label: A single-use Bluetooth label designed to provide near-real-time shipment visibility across carriers. 360 Camera and AI Multicam: Camera offerings for operated equipment and vehicle