Samsara Q1 2026 Earnings Call Transcript

Quartr
Provided by Quartr
June 5, 2025

Key Takeaways

  • Samsara ended Q1 with $1.54 billion in ARR, marking a 31% year-over-year increase on a constant-currency basis.
  • Non-GAAP gross margin hit a quarterly record of 79% and non-GAAP operating margin improved to 14%, up from 2% in Q1 FY ’25, reflecting strong operating leverage.
  • Product suite adoption deepened, with 95% of customers having over $100k ARR subscribing to ≥2 products and 66% to ≥3, underscoring cross-sell momentum.
  • Management noted elongated sales cycles in Q1 due to macro uncertainty and tariff-impacted spending, causing some multi-million-dollar deals to slip into May.
  • For Q2, Samsara guided revenue of $371–373 million (24% YoY growth) and non-GAAP operating margin of 9%, and for FY ’26 revenue of $1.547–1.555 billion (24% YoY) with ~13% margin.
AI Generated. May Contain Errors.
Earnings Conference Call
Samsara Q1 2026
00:00 / 00:00

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Mike Chang
Mike Chang
Vice President of Corporate Development & Investor Relations at Samsara

Good afternoon, and welcome to Samsara's first quarter fiscal twenty twenty six earnings call. I'm Mike Chang, Samsara's Vice President of Corporate Development and Investor Relations. Joining me today are Samsara 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.samsar.com. The matters we'll discuss today include forward looking statements.

Mike Chang
Mike Chang
Vice President of Corporate Development & Investor Relations at Samsara

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, 06/05/2025, 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, we'll discuss our first quarter fiscal twenty twenty six financial results. We'd like to point out that 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.

Mike Chang
Mike Chang
Vice President of Corporate Development & Investor Relations at Samsara

We'll make opening remarks, dive into highlights for the quarter, and then open up the call for Q and A. With that, I'll hand over the call to Sanjit.

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

Thanks, Mike, and thank you, everyone, for joining us today. Samsara delivered a strong Q1 of our new fiscal year, surpassing $1,500,000,000 in ARR. We ended Q1 with $1,540,000,000 in ARR, growing 31% year over year adjusted for constant currency. During the quarter, we grew our customers with more than $100,000 in ARR by 154, an increase of 35% year over year. Our durable and efficient growth is a testament to the strength of our platform and our partnership with customers to address their critical needs.

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

In q one, we partnered with some of the largest organizations and physical operations, including seven Eleven, the largest convenience store chain in the world the Dallas Fort Worth Airport, the second largest airport in The US and one of the largest counties in The US, which has more than 10,000,000 residents. We're proud to work with these industry leaders and help them operate smarter. Over the past few months, I've visited some of our top customers and prospects in North America and Europe. They're focused on a few key priorities: increasing the focus on safety to reduce accident payouts and lower insurance premiums using preventative maintenance to extend the life of their equipment and reduce capital expenditures, and improve asset utilization to run smarter and more efficient operations. Across the board, our customers are digitizing their operations and using AI to help them get more out of their existing labor and assets.

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

They're investing in technology to run safer, more efficient, and more sustainable operations. Our customers have large complex operations. They rely on commercial vehicles to move goods and services to power infrastructure. According to the National Highway Traffic Safety Administration, there are more than 500,000 accidents involving large trucks in The U. S.

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

Every year. Commercial accidents not only cause injuries but are a source of reputational risk and potentially millions of dollars in insurance payouts and premiums. Premiums. To better understand our customers' safety challenges, we surveyed more than 1,500 commercial drivers. They represent 21 industries spanning seven countries.

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

We found that seventy nine percent have had a near miss while driving distracted, and sixty seven percent have experienced drowsiness while driving. When asked about how to reduce this risk, ninety five percent of surveyed drivers agreed that coaching positively impacts their habits on the road. This shows the importance of technology to identify risk and help drivers avoid distractions on the road. Doing this at scale is a tremendous challenge. Our customers recognize that this is largely a data problem, and they're using AI and automation to improve their safety.

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

We built Samsara's AI powered safety solutions to directly manage risk at enterprise scale. Our platform provides comprehensive AI alerts covering a wide range of safety concerns. This includes collision risk, traffic violations, policy violations, harsh driving, driver fatigue, speeding, and distracted driving events like mobile phone use, smoking, and eating and drinking. Our new Intelligent Safety Inbox and AI powered insights give our customers a smarter way to identify risk and coach drivers based on patterns, not just incidents. With high turnover rates and driver shortages, recognition is critical for our customers to keep their best drivers.

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

We're doubling down on safety and recently launched new positive recognition tools within the Samsara platform. This includes streaks and milestones, personalized kudos, and shared visibility. These features use gamification to help our customers drive improvements in employee engagement and overall safety outcomes. We're excited to help our customers reduce risk, protect their workers, and save millions of dollars. I'd like to share an example of a customer using AI to improve their safety.

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

In Q1, we partnered with one of the largest retail propane companies in The U. S. They have over 3,000 vehicles and 2,300 employees that deliver propane to residential, industrial, commercial and agricultural customers. They also provide portable propane tank exchange operations. They first landed with telematics in q three of fiscal year twenty four.

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

In q one, we had one of our largest expansions with them signing a deal for Samsara's video based safety. In a pilot, they saw a 75% reduction in safety events and a 71% reduction in mobile usage. From pilot to partnership, they said the key differentiator for Simsara was the impact of RAI on the safety of their operations. A large portion of our customers' operating budgets goes towards physical assets like vehicles, forklifts, cranes and other equipment. These assets have hundreds of moving parts.

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

They are put to heavy use under demanding conditions and inevitably break down over time. As a result, most organizations allocate about 10% of their operational budget for repairs and maintenance. In today's environment, our customers are focused on maximizing the value of their assets and optimizing maintenance spend. In particular, they're interested in extending the usable lifespan of these critical resources. Recently, they've been sharing feedback on the complexities of maintenance at scale, the impact of tariffs, and the challenges with the resilience of their supply chains.

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

To address this, they're seeking AI to drive proactive maintenance to improve the operations with healthier assets. We're keeping our cost we're we're helping our customers achieve their maintenance goals with our AI powered maintenance solutions. At the core of our solution is our massive data asset that powers our AI. We have millions of assets on our platform that collectively travel more than 80,000,000,000 miles each year. This provides us real world data on how assets run and how they break.

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

We digitize all of this information through real time diagnostics and the nearly 230,000,000 vehicle inspections we see annually. This real world data powers our AI to provide unique insights on the severity of fault codes and common vehicle repairs. We can then help our customers transform these insights into action by starting a maintenance workflow using our work order creation forms with prepopulated data. We're just getting started on the maintenance journey with our customers and are excited for the opportunities ahead. I'd like to share an example of a customer using AI to transform their maintenance.

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

Sterling Crane is one of the world's largest mobile crane rental companies. They rent, supply, and service cranes through 16 branches in Canada and have equipment across hundreds of job sites. They face unique operational challenges like maintaining cranes in remote locations and keeping their cranes road safe during Canada's difficult winters and wide ranging terrain. With Samsara, they reduced their unplanned maintenance from 34% to 20%. This saved ten thousand hours of technicians' time, which equals to $500,000 of annual maintenance labor saved.

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

They also report over $3,000,000 saved in equipment maintenance and replacement costs with over $2,000,000 saved for on road equipment and an additional $1,000,000 saved for, on off road equipment. We're proud to partner with Sterling Crane to help them save money and time and better maintain their assets. As we build for the long term, we're investing in our ecosystem through OEM relationships. Vehicle and equipment manufacturers are building modern assets that are preconnected to the cloud right off the assembly line. To create a seamless customer experience, we're integrating directly with the OEMs so customers can deploy Samsara without installing any hardware.

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

This helps our customers who have complex operations to simplify the digitization of their assets. This quarter, we continued to expand our ecosystem. First, we're partnering with Hyundai Translead, a leading manufacturer of semitrailers in North America, to improve trailer visibility. This marks our first OEM integration that supports Semsara's video based safety features. Second, we're partnering with Stellantis, one of the world's largest vehicle manufacturers.

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

We expect this integration will allow over 14,000,000 vehicles to connect directly to Samsara's connected operations platform. And third, we're partnering with Rivian, who's an electric vehicle leader, to streamline electric fleet management. We will integrate essential Rivian data directly into the Samsara platform and provide a single pane of glass. It was a strong start to the new fiscal year. We're grateful to our customers, partners, investors and the Samsara team around the world for their shared commitment to increasing the safety, efficiency, and sustainability of the operations that power the global economy.

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

We're excited for the year ahead. We're looking forward to seeing many of you at Beyond, our annual customer conference, and an Investor Day in a few weeks in San Diego. At Beyond, we'll be bringing together leaders to discuss the state of physical operations and new ways to deliver value through data and AI. We'll also be announcing new products and features. We hope you can join us.

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

I'll now hand it over to Dominic to go over the financial highlights for the quarter.

Dominic Phillips
Dominic Phillips
Chief Financial Officer at Samsara

Thank you, Sanjit. Q1 FY 'twenty six was highlighted by strong top line growth and continued efficiency gains. After a strong start to the quarter, we experienced instances of elongated sales cycles on some transactions in the period following Liberation Day in April as some customers prioritize spending on tariff impacted goods such as vehicles, equipment and other assets. Despite the current macro uncertainty, we're encouraged that a number of these transactions closed in May, that we generated record pipeline in Q1 and that our win rates remain generally consistent and healthy, all of which signal continued strong customer interest in our platform and the clear and fast ROI it delivers. Q1 ending ARR was $1,540,000,000 growing 31% year over year, both as reported and in constant currency.

Dominic Phillips
Dominic Phillips
Chief Financial Officer at Samsara

Q1 revenue was $367,000,000 growing 31% year over year or 32 adjusted for constant currency. Several factors drove our top line performance in Q1. First, we focus on serving large enterprise customers to drive efficient growth at scale. To better reflect the structure of our largest enterprise customers, who often have multiple subsidiaries and grow through M and A, we have adjusted our definition of a customer. Previously, separate entities within a larger organization were counted as individual customers.

Dominic Phillips
Dominic Phillips
Chief Financial Officer at Samsara

Our updated methodology counts affiliated entities within the same parent organization as a single customer. This better aligns with our current go to market strategy and how we assign customer accounts to our sales reps. Overall, this change has a small impact on our large customer related metrics, and a more detailed comparison using the previous and updated methodologies can be found in the appendix of our investor presentation. We ended Q1 with $2,638,100 ks plus ARR customers, growing 35% year over year, including a quarterly increase of 154 compared to 105 in Q1 '1 year ago. ARR per 100 ks plus customer increased to 338,000, and the combination of adding more large customers and a higher average ARR resulted in ARR mix from 100 ks plus ARR customers of 58%, up from fifty six percent one year ago and fifty two percent two years ago.

Dominic Phillips
Dominic Phillips
Chief Financial Officer at Samsara

Second, our customers are increasingly utilizing Samstar as a system of record for for physical operations by subscribing to multiple applications on a single unified platform. 95% of our 100 ks plus ARR customers and 85% of core customers subscribe to two or more Samsara products, and 66% of our 100 ks plus ARR customers and 38% of core customers subscribed to three or more products. We also saw a number of large multiproduct transactions in Q1. '8 of the top 10 new logos in Q1 included at least two products, and five included at least three products. One of our largest new customers in Q1 was Knife River, a leading U.

Dominic Phillips
Dominic Phillips
Chief Financial Officer at Samsara

S. Construction materials and contracting company operating across 14 states with over 5,700 employees. The company has made over 100 acquisitions over the last thirty plus years, helping revenue grow to more than $2,800,000,000 annually. Their initial purchase included video based safety, telematics and equipment monitoring. In a pilot study, they observed a significant reduction in total safety events, and AI coaching had an immediate impact on both distracted driving and seatbelt usage.

Dominic Phillips
Dominic Phillips
Chief Financial Officer at Samsara

And eight of the top 10 expansions in Q1 included at least two products and seven included at least three products. One of our largest expansions in the quarter was with a leading provider of vegetation management, line clearance and electric utility line construction. This customer has expanded with us 15x since becoming a customer in 2019. In Q1, they added more video based safety, telematics and equipment monitoring licenses, deploying Samsara on a recently acquired company. As a result of our strong expansion results, we achieved our target dollar based net retention rate of approximately 115% under both the previous and updated customer count methodology.

Dominic Phillips
Dominic Phillips
Chief Financial Officer at Samsara

And third, we demonstrated strong execution across several frontier markets. 18% of net new ACV came from international geographies, which was tied for the highest quarterly contribution ever. The biggest area of international strength was Europe, which accelerated net new ACV growth sequentially and contributed its highest quarterly net new ACV mix ever. We also saw momentum across construction, transportation, field services and public sector end markets. Construction drove the highest net new ACV mix of all industries for the seventh consecutive quarter.

Dominic Phillips
Dominic Phillips
Chief Financial Officer at Samsara

Transportation was our second largest vertical this quarter, achieving its highest year over year growth in over four years. Field services contributed its highest quarterly net new ACV mix in over five years. And public sector achieved its highest year over year growth in over three years, driven by wins with the state of South Carolina, city of Houston, and one of the largest counties in The United States. And last, we also saw strength in emerging products. Equipment monitoring accelerated year over year net new ACV growth for the fourth consecutive quarter, driven by another strong quarter from asset tags.

Dominic Phillips
Dominic Phillips
Chief Financial Officer at Samsara

In addition to driving strong top line growth, we continued to deliver operating leverage across our business as we scale. Non GAAP gross margin was a quarterly record 79% in Q1. Non GAAP operating margin was 14% compared to 2% in Q1 FY 'twenty five, and adjusted free cash flow margin was 12% in Q1 compared to 7% in Q1 last year. Okay. Now turning to guidance, which is based on FX rates as of May 3.

Dominic Phillips
Dominic Phillips
Chief Financial Officer at Samsara

For Q2, we expect revenue to be between $371,000,000 and $373,000,000 representing 24% year over year growth, both as guided and in constant currency. Non GAAP operating margin to be 9% and non GAAP EPS to be between $06 and $07 For full year FY 'twenty six, we expect revenue to be between $1,547,000,000 and $1,555,000,000 representing year over year growth of 24% or between 2425% adjusted for constant currency non GAAP operating margin to be approximately 13% and non GAAP EPS to be between $0.39 and $0.41 And finally, please see the additional modeling notes in our shareholder letter. To wrap up, in Q1, we continued high growth at scale while also continuing to deliver operating efficiency gains. Looking forward, we believe we're well positioned to continue delivering durable and efficient growth, and we're excited to continue helping our customers operate more safely, efficiently and sustainably. And with that, I'll hand it over to Mike to moderate Q and A.

Mike Chang
Mike Chang
Vice President of Corporate Development & Investor Relations at Samsara

Thanks, Dominic. We'll now open the 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 Alex Zukin with Wolfe, followed by Keith Weiss with Morgan Stanley.

Alex Zukin
Analyst at Wolfe Research LLC

Hey, guys. Thanks for taking the question. Maybe, just the first one. With regards to the long the the sales cycle elongation commentary, maybe just talk about you mentioned, I think, of those deals closed in May. Just the quality, the duration of those deals, the size of those deals in terms of, you know, were they the same as originally constructed?

Alex Zukin
Analyst at Wolfe Research LLC

And and maybe just also talk a little bit about the pipeline construction, in this period. Is it is it kind of, you know, back to normal or or maybe just a little bit of those impacts?

Dominic Phillips
Dominic Phillips
Chief Financial Officer at Samsara

Yeah. So I would say the construction of the deals, didn't change. We ended up, you know, closing a a number of them in, in May. I I don't think it makes sense to kinda fully quantify the, the amount, from q one into q two because, know, there's still a lot of macro uncertainty that can create more timing risk when when deals close. I think I would say, you know, in q one, it was, you know, it's more than hundreds of thousands.

Dominic Phillips
Dominic Phillips
Chief Financial Officer at Samsara

It it wasn't tens of millions. It was, you know, it's a multimillion dollar impact. On the, you know, the pipeline point, you know, the pipeline was good. We had a a record, pipeline generation quarter in q one. That doesn't necessarily obviously benefit us in q one.

Dominic Phillips
Dominic Phillips
Chief Financial Officer at Samsara

These are enterprise sales cycles so that they they take time to kind of play out. But I think it goes more to just demonstrate the point that customer demand, you know, remains strong. This is, you know, a large market. It's growing quickly. We're we're providing real tangible ROI, payback periods, and customers are interested in that.

Dominic Phillips
Dominic Phillips
Chief Financial Officer at Samsara

There's just a lot of, you know, macro uncertainty with, you know, tariff related news.

Alex Zukin
Analyst at Wolfe Research LLC

Got it. And then maybe as a follow-up, Sanjay, for you, the the OEM, investments and relationships were quite notable, this quarter. Maybe just talk through the, expanded opportunities this this opens up for you, maybe how it changes or or strengthens your competitive positioning, in in the field, and any other impacts, we should, think through or think about, from those deals this year?

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

Sure, Alex. I think about it through the customer lens. We're just trying to make it as easy as possible for our customers to get their operations into the Samsara connected operations cloud. This essentially makes it a cloud to cloud connection. So as they get delivery of these new vehicles, they're already, easy easily populated up in our cloud.

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

And that's been the strategy for a couple years. We've been doing partnerships with light and heavy duty manufacturers, Yellow Iron, so construction equipment like Caterpillar and John Deere, refrigeration manufacturers. So the whole idea is just get as much data into the cloud as possible, and we think that will help us get deeper insights into the performance of these assets, and, like I said, just reduce friction in terms of how these things get turned on.

Alex Zukin
Analyst at Wolfe Research LLC

Perfect. Thank you, guys.

Mike Chang
Mike Chang
Vice President of Corporate Development & Investor Relations at Samsara

The next question comes from Keith Weiss with Morgan Stanley followed by Michael Turrin with Wells Fargo.

Keith Weiss
Keith Weiss
Equity Analyst at Morgan Stanley

Excellent. Thank you guys for taking the question, and congratulations on on a strong start to to the fiscal year. I was looking to drill down into a couple of Alex's twelve questions that he asked on his prior question. One on the sort of deal cycle elongation. You guys are are selling a broader solution into the end customer.

Keith Weiss
Keith Weiss
Equity Analyst at Morgan Stanley

You're seeing more attach across multiple products. You're doing more with sort of, like, like, bigger deals. How do you sort of tell the difference between what's, like, a macro related deal cycle elongation versus just, like, deal cycle elongation from having to sell a bigger deal and having to, sell a a more sort of integrated set of technologies?

Dominic Phillips
Dominic Phillips
Chief Financial Officer at Samsara

I I mean, it's just having direct conversations with customers. You know, like, liberation day hits, higher tariffs, you know, come on board than than I think what anyone kind of expected. And then, you know, customers saying, hey. I'm I'm buying a lot of tariff impacted, you know, vehicles and assets and other equipment, and and I'm I'm, you know, focused on prioritizing, you know, my my my strategies and how I'm gonna purchase these things, and that becomes kind of a a a near term concern because those are assets that they ultimately use to to drive revenue. And so, you know, hey.

Dominic Phillips
Dominic Phillips
Chief Financial Officer at Samsara

I I still plan on digitizing my my operations. I understand that there's real ROI here, and I and I I'm excited about the payback period. You know? But but in this kind of period of uncertainty, I need to, you know, make sure that I'm I'm focusing on some of these tariff impacted goods, you know, and that can just delay conversations.

Keith Weiss
Keith Weiss
Equity Analyst at Morgan Stanley

Got it. And and then as a follow-up, were there specific verticals that you're selling into that you saw bigger impacts than others? And if so, which which one saw the the bigger impacts?

Dominic Phillips
Dominic Phillips
Chief Financial Officer at Samsara

No. I I think it was it was, you know, widespread, I think, you know, across all of our end markets. You know, they're they're they're asset and and people intensive businesses, and so they're all they're all purchasing, again, vehicles, heavy, you know, machinery equipment assets, you know, and and, you know, a lot of those goods are are impacted by tariffs.

Keith Weiss
Keith Weiss
Equity Analyst at Morgan Stanley

Got it. And then just one on the margins. Gross margins continue to expand, really well. Perhaps you could kind of unpack some of the drivers and how much room is there for further expansion there? And does the expansion of OEM relationships, like just being able to go kinda straight to the data and not have to put your data collection device in there, does that help with the gross margin trajectory?

Dominic Phillips
Dominic Phillips
Chief Financial Officer at Samsara

I I think it can in the in the future. It's it's not today. It's just it's not a material part of the business. I I you know, we're we're really excited about all these partnerships we have, and we can kind of meet customers where they are. If they've got, you know, connected, vehicles and assets, we can pull that data directly in, you know, through an OEM cloud.

Dominic Phillips
Dominic Phillips
Chief Financial Officer at Samsara

If they don't, we can provide them a a gate a gateway or device to to ultimately collect the data in into the cloud. And so as as more and more customers have those assets that that can benefit them. You know, on the on the gross margin side, would just say, we're really pleased with, you know, a quarterly record 79%. I don't expect a lot of near term leverage in in gross margin. I I think that is you know, we're rolling out a number of, software only SKUs and products, even things like asset tags.

Dominic Phillips
Dominic Phillips
Chief Financial Officer at Samsara

All of those are gross margin accretive. And so as those products, scale, that can that can, open up more opportunities for, gross margin benefits in the the future. And then, obviously, as we continue to scale and get larger, there's opportunities on on the cost side as well to get more, economies of scale.

Keith Weiss
Keith Weiss
Equity Analyst at Morgan Stanley

Outstanding. Thanks for the time, guys.

Dominic Phillips
Dominic Phillips
Chief Financial Officer at Samsara

Thanks.

Mike Chang
Mike Chang
Vice President of Corporate Development & Investor Relations at Samsara

The next question comes from Michael Turrin with Wells Fargo followed by Matt Hedberg with RBC.

Michael Turrin
Michael Turrin
Managing Director, Software Equity Research Analyst at Wells Fargo

Hey. Great. Thanks very much. Appreciate you taking the questions. We've been hinting at the macro, but if I listen to the prepared remarks and look at the letters, construction, seventh straight quarter of highest mix, public sector showing through as a stronger vertical.

Michael Turrin
Michael Turrin
Managing Director, Software Equity Research Analyst at Wells Fargo

Can you just speak to what you're seeing within those, emerging verticals that's that's resonating in the current environment and public sector specifically scenario? We've gotten a lot of questions from investors around what you're enabling that's the the just the the product set to to really resonate there?

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

Sure. I'll I'll take that one. So I think, across both construction and public sector, it's really being driven by a desire to increase efficiency. Especially, I I've been spending a lot of time with some state and local customers and prospects, and they're all looking to find savings and operational budgets without having to cut down staff. And that might be something as as obvious as fuel savings from putting telematics devices out there and reducing engine idling.

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

And then it can also mean reducing insurance claims, for some of these large municipalities. So that's kind of the practical side of things. I think that's unchanged given the macro environment, in terms of that interest. And, really, these are areas that haven't digitized as heavily as you might expect. So, as we kind of look industry by industry, construction and public sector are both areas where they historically had not bought a lot of telematics or or safety monitoring systems that were connected, and now they see the value in it, they're looking to digitize.

Michael Turrin
Michael Turrin
Managing Director, Software Equity Research Analyst at Wells Fargo

Excellent.

Michael Turrin
Michael Turrin
Managing Director, Software Equity Research Analyst at Wells Fargo

And, Dominic, maybe just on broader margin as you, work through a more fluid environment. Remind us how you approach the trade off signals you're watching and how you're thinking about things like sales capacity within the the current environment? Thank you.

Dominic Phillips
Dominic Phillips
Chief Financial Officer at Samsara

Yeah. I mean, we are looking at kind of a, you know, forecast on a on a, you know, monthly and and quarterly basis. And, you know, on sales capacity, we're really looking at kind of the productivity, you know, from the sales reps. And if productivity is, you know, is is in line with where it was in previous years or if it's up, that gives us confidence that we can continue to add more more capacity, and we saw that in in q one. So sales productivity was was good.

Dominic Phillips
Dominic Phillips
Chief Financial Officer at Samsara

We we've been adding more sales capacity, and we plan to continue to do so, throughout the year.

Michael Turrin
Michael Turrin
Managing Director, Software Equity Research Analyst at Wells Fargo

Thanks very much.

Mike Chang
Mike Chang
Vice President of Corporate Development & Investor Relations at Samsara

The next question comes from Matt Hedberg with RBC followed by Kirk Materne with Evercore.

Matthew Hedberg
Matthew Hedberg
Software Analyst at RBC Capital Markets

Thanks, guys, for the questions. Dom, you called out asset tags as part of the success you're seeing in equipment monitoring. That's great to hear. I know it's still early, but when you are seeing wins, can you talk about what it's doing to ACV at this point?

Dominic Phillips
Dominic Phillips
Chief Financial Officer at Samsara

It depends on a given deal. In some cases, can be kind of the leading product for the customer use case. In some cases, it could be an add on. In many of the, examples, you know, customers are are trying it out on kind of one subset of assets before they're rolling it out wall to wall. We we haven't really seen any kind of full full deployments across a set of assets.

Dominic Phillips
Dominic Phillips
Chief Financial Officer at Samsara

But but kind of three consistent case study, use cases that we're seeing. First, you know, lost or stolen assets. So if an item is missing, being able to find it very quickly. Second is really around worker efficiency, so, cutting down the time that it takes for a worker to go out and find an asset somewhere. And then the last one is really around utilization.

Dominic Phillips
Dominic Phillips
Chief Financial Officer at Samsara

So if these things are are moving or being used, we can we can pick that up, and then it can help inform if customers should you know, how they should manage their assets if they need to buy more of them or if they can redeploy them to to other areas. So we're excited with the progress. We've, you know, we've been selling it now for for about a year. And, yeah, and it's been it's been a good point of strength for equipment monitoring.

Matthew Hedberg
Matthew Hedberg
Software Analyst at RBC Capital Markets

That's great. And then, you know, in in you noted that net new grew 8% constant currency in 1Q, and you're talking about kind of flattish or at least flattish net new for the remainder of the year. I'm curious, post Liberation Day and some of these deals that slipped, are you applying additional conservatism now to to that guidance philosophy from an ARR perspective? Because, you know, previously, we've talked about flat net new as well. So I'm just kind of curious on, like, sort of what the assumptions were in in that net new commentary.

Dominic Phillips
Dominic Phillips
Chief Financial Officer at Samsara

Yeah. I I mean, I would say for net new, you know, where we provide some color in the modeling notes and revenue, I I you know, our guidance philosophy is similar to previous quarters. You know, we're we're trying to make sure that we're setting guidance with a lot of confidence, you know, and that that accounts for various downside scenarios. If those downside scenarios don't ultimately play out, it it has generally resulted in more outperformance, and you you saw that obviously in in q one. So I I I think that's that's kind of how we're we're thinking about things.

Dominic Phillips
Dominic Phillips
Chief Financial Officer at Samsara

We feel good about being able to hit that even with downside scenarios. And and if, if if we don't see those come to fruition, you know, we'd we'd like to be able to do better than that.

Matthew Hedberg
Matthew Hedberg
Software Analyst at RBC Capital Markets

Got a lot. Got it. Thanks, guys.

Mike Chang
Mike Chang
Vice President of Corporate Development & Investor Relations at Samsara

The next question comes from Kirk Materne with Evercore followed by Jim Fish with Piper Sandler.

Kirk Materne
Senior Managing Director - Equity Research at Evercore ISI

Hi. Yeah. Thanks very much, guys, and and congrats on a nice start to the year. Sanjit, I was just wondering, can you talk a little about whether, you know, just AI in general is coming into the conversations with your clients? I realize they're really looking to have you guys help them know, with their operations, with safety, but I'm just kinda curious about, you know, the role AI is now playing in those conversations as it's become, you know, just a bigger part of the broader zeitgeist in IT.

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

Yeah. Kirk, I I think absolutely, you know, every everyone that I've spoken with has interest in AI, and they they see it as a transformational technology. That being said, our customers are really focused on clear and fast ROI. These are industries where they have a lot of operational complexity, and they're they're looking for what can I really do with this AI? We've shown that with safety.

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

We're able to really show that now on the efficiency side where we can really help you find signals and patterns in the data by having AI crunch through it and then using our kind of vast data asset as I was talking about with the workflow side of things. So I think they're very interested in AI as a technology, but really as it applies to their operations and then what sort of savings can help drive or what kind of risk can help reduce.

Kirk Materne
Senior Managing Director - Equity Research at Evercore ISI

That's super. And then just one follow-up for Dom's or similar and some other ones. But just, you know, visibility for you heading into the rest of year, it's sound like you had a really good pipeline build quarter. Can you just talk a little bit about sort of visibility maybe, you know, today versus, you know, three months ago or just kinda how you're feeling about sort of the, you know, the overall pipeline formation for the year?

Dominic Phillips
Dominic Phillips
Chief Financial Officer at Samsara

Yeah. I mean, we're feeling good about the pipeline. Again, I I think that taking a step back, like, big market growing quickly, big opportunity for digital transformation, we add a a ton of value for customers in terms of ROI, you know, very quickly. And the I think the pipeline demonstrates the, you know, the the customer demand and and interest. I think the the visibility point is just around kind of what happens in the broader kind of, you know, macro environment and and what what impact does that have on our customers and and therefore, on their kind of, near term priorities.

Dominic Phillips
Dominic Phillips
Chief Financial Officer at Samsara

So I think near term, you know, the the macro uncertainty provides some timing risk to deals. But more medium and long term, you know, we feel really good about, the the position and the momentum.

Kirk Materne
Senior Managing Director - Equity Research at Evercore ISI

Great. Thank you.

Mike Chang
Mike Chang
Vice President of Corporate Development & Investor Relations at Samsara

The next question comes from Jim Fish with Piper Sandler followed by Dan Jester with BMO.

James Fish
James Fish
MD & Senior Research Analyst at Piper Sandler Companies

Guys. Sanjit, circling back on the OEM side, how should we think or how should we expect both the exclusivity you have with the three that you have versus what you are looking to do with other OEMs? And and could we see more partnerships? And and then, Dom, for you around this, and I know Keith and his multiple multiple questions here asked around near term gross margins, how should we think about the impact more longer term margin?

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

Sure. I'll cover the product side of things. So OEMs, more broadly speaking, are embedding this connectivity. They're doing it largely for their own, reasons. They want to basically be able to service these assets more efficiently and and get information back into the cloud.

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

So that's where the partnerships lie is directly with the OEM. It's kind of a cloud to cloud connection. The majority of these partnerships are not exclusive, and I think it is just part of this kind of connected data strategy that many of them have. That being said, our customers are looking for a single pane of glass. They wanna not just see their trucks, but their construction equipment, their refrigeration units.

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

They wanna see it all in one place, and that's really unique in terms of what we're able to offer in terms of the scale and breadth. We have a large number of these OEM partnerships, and that's gonna continue to be our strategies, get more folks onto the cloud.

Dominic Phillips
Dominic Phillips
Chief Financial Officer at Samsara

And I on the longer term, gross margin question, yeah, again, today, it's it's not a significant, you know, part of our ARR of our of our net new issue in any given period, so not a lot of impact to gross margins. Medium and longer term, it could be it could be beneficial. I would expect it to be more, you know, gross margin accretive than, you know, than than the kind of the the offering where we provide a device. But we would need to see that kind of, you know, part of the business scale And that's really driven by kind of customer interest.

James Fish
James Fish
MD & Senior Research Analyst at Piper Sandler Companies

Got it. And look, you guys called out the highest growth on transportation in four years, I believe, in the prepared remarks. But what were the drivers of that? And I guess, pun intended.

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

You know, I I would say in general, transportation is an industry where efficiency and safety are are really top priorities, so they're continuing to digitize. We've been gaining market share, among the top and, like, leading transportation companies, so I think we're becoming better known. It was, another strong quarter. I think it was our second, largest vertical. So we expect to see it continue to grow, and there's a lot of trucks out there.

Mike Chang
Mike Chang
Vice President of Corporate Development & Investor Relations at Samsara

K. The next question comes from Dan Jester with BMO, followed by Matt Bullock with BofA.

Daniel Jester
Daniel Jester
Director & Equity Research Analyst at BMO Capital Markets

Great. Thanks for taking my question. Maybe on the international side, great to hear the momentum in the business there. Maybe it's it's tough to break out, but I'd love just to hear your perspective on how much of that has just been from you building sales capacity in those regions versus some sort of discrete regulatory things that seem to be happening in Europe.

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

Yeah. I'll I'll take that one. We have been investing in the region for some time. We're we're excited to see 18% of net new ACV come from international. Europe has been a a good driver of that.

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

So we have achieved the product market fit, and that's been over a couple of years. I wouldn't say that there's any specific new regulatory tailwind other than, now we're seeing more interest in digital technologies and digital transformation than maybe we were seeing, five years ago.

Daniel Jester
Daniel Jester
Director & Equity Research Analyst at BMO Capital Markets

Okay. Great. Thank you. And then on the preventative maintenance piece, is that gonna be something that's gonna be targeted to specific types of businesses first, or do you think that that's going to be useful for the entire industry set on what you cover? Thank you.

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

Yeah. I think Dominic made the point earlier, but our customers across industries, they buy similar types of assets. If you think about, the trucks, they they show up with the same kinds of trucks in, transportation as utilities and construction. So we do see kind of broad based use of this, product feature set. And, you know, from there, we'll expand based on customer feedback, but we we believe it's gonna be quite general.

Daniel Jester
Daniel Jester
Director & Equity Research Analyst at BMO Capital Markets

Thank you.

Mike Chang
Mike Chang
Vice President of Corporate Development & Investor Relations at Samsara

The next question comes from Matt Bullock with BofA followed by Dylan Becker with William Blair.

Matt Bullock
Matt Bullock
Equity Research Associate at Bank of America Merrill Lynch

Great. Hi. Thanks for taking the question. I wanted to ask a quick one on the upgrade program you launched this quarter. Are there any incremental details you could provide on the program?

Matt Bullock
Matt Bullock
Equity Research Associate at Bank of America Merrill Lynch

Has it catalyzed conversations on potential displacements? Did it contribute to, you know, the pipeline expansion you saw in one q? And then anything on incremental discounts through the program would be helpful.

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

Sure. So, you know, what we've been doing for a couple of years is helping customers do the transition. Some of these customers have, legacy providers that they've been working with. They're they might be frustrated or looking for more functionality. And so, in in number of these arrangements, there are three to five year contracts.

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

As customers are coming towards the end of them, we've helped buy out the contracts. So, really, this program is kind of making that a little more templatized, making it a easier on ramp. So that's the context there. And in in this macroeconomic environment, I think people are looking to find ways to go drive that efficiency, find those savings, and we wanna make it easy for them to pick up Samsara and adopt it. That would be the high level.

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

I don't think it's it's fundamentally changed the discounting and deals or anything like that. It's really just kind of made it easier for customers to understand we have a an op option for them if they're currently under contract with somebody else.

Matt Bullock
Matt Bullock
Equity Research Associate at Bank of America Merrill Lynch

Got it. And then one quick follow-up if I could. Could you provide an update on, you know, how the conversations are generally trending with some of those more strategic accounts? You know, those accounts with, you know, a hundred thousand plus vehicles. Are those, you know, deals moving through the pipe, you know, as expected? What are you hearing from customers in general?

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

Sure. I'm happy to cover that one as well. So I think these customers are very interested in what we're doing. They are large, very complex operations. They often have many operating divisions.

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

And so for them to either make a change or adopt a new technology for for some of these companies, they don't have digital technologies deployed across their entirety of their fleet. It's a lot of change management. So I would say it continues to progress in terms of, how they're working in the funnel, but these are multiyear sales cycles when you talk about strategic deals of that scale.

Matt Bullock
Matt Bullock
Equity Research Associate at Bank of America Merrill Lynch

Got it. Thank you.

Mike Chang
Mike Chang
Vice President of Corporate Development & Investor Relations at Samsara

Next question comes from Dylan Becker with William Blair followed by Mark Schappel with Loop Capital.

Dylan Becker
Research Analyst at William Blair

Great. Thanks, guys. Hey, Danja, Tom, Mike, everybody. Maybe, Sanjit, for you, on the predictive or preventative piece, I wonder how you think about maybe in a in a tightening macro, kind of the growing importance with fewer excess assets out there, the kind of the strategic value of that solution as maybe customers think about optimizing kinda throughput and and runtime of existing assets and ensuring that those are fully operational, for maybe as long as possible.

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

I I think you put your finger on it. So this is exactly what we're hearing from customers is in this kind of environment where equipment's becoming either more expensive to procure or lead times might be changing, they're really trying to drive up utilization and get as much value as they can and perhaps run these assets a little bit longer by maintaining them in a smarter way. So our our technologies really help with both of those. Dominic mentioned this with asset tags, our connected equipment portfolio in general, we help you understand what assets are being used where, how often should you rebalance them. And then as we're going deeper with, our our work in AI as it relates to fault codes and kind of diagnostics, that's an area where we can help you essentially extend the lifespan or the the effective use, life of these assets.

Dylan Becker
Research Analyst at William Blair

Okay. Great. Thank you. And then may maybe, Dom, for for you too, as we think about kind of the non vehicle strength in the business as well too, can you give us a sense of maybe the directional kind of attach where we sit today and maybe how you expect that to trend as well too as more of these larger enterprise customers tend to land kinda multiproduct in nature. Thanks.

Dominic Phillips
Dominic Phillips
Chief Financial Officer at Samsara

Yeah. It's been it's been pretty consistent. It's kind of, in the mid teens in terms of, you know, overall ARR. We were continuing to to grow and scale, you know, monitoring and other and all these other kind of workflow applications. I think the usage continues to be much higher than the than the ARR mix.

Dominic Phillips
Dominic Phillips
Chief Financial Officer at Samsara

So more than 50 of our, core customers and more than two thirds of our large customers are using a non vehicle based application, and we're seeing that adoption pick up as we release more and more of these new products. And so I think that gives us a lot of excitement about the ability to kind of go more wall to wall in some of these customers with these non vehicle assets to increase that overall ARR mix over time.

Dylan Becker
Research Analyst at William Blair

The

Mike Chang
Mike Chang
Vice President of Corporate Development & Investor Relations at Samsara

next question comes from Mark Schappel with Loop Capital followed by Alexey Gogilev with JPMorgan.

Mark Schappel
Managing Director at Loop Capital Markets LLC

Question. Sanjit, I was wondering if we could just circle back on the international opportunity. It's good to see the strength in Europe this quarter. Was wondering if you could give us a better sense, though, of where Europe is with respect to The US in areas such as, like, video based safety or next gen telematics. You know, how far behind, for example, are they in your view?

Mark Schappel
Managing Director at Loop Capital Markets LLC

And and also, too, do you see a different set of competitors over there?

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

Sure. So, you know, I would say, first of all, our our presence in the European market is is a little uneven in the sense that we've been in The UK and Ireland the longest, and that's where we have the most presence there. There's, I think, good acceptance of video based safety. They're very comfortable with connected cameras. And and really what's different is perhaps, you know, how mature their driver safety coaching programs are and things like that, but they're not very far behind.

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

It's it's very similar to what we see in The US. It's a little different on the continent in terms of in France and Germany. Those are newer markets for us. We're making good headway there. And I think there, we've also seen certain, industry verticals pick up the technology a little bit sooner and faster.

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

And so I would say it it still feels relatively early for us as we're a couple years in the market. And I I think I don't know, Dominic, if you wanna add anything on Europe?

Dominic Phillips
Dominic Phillips
Chief Financial Officer at Samsara

Yeah. I just I I think, you know, it's been a number of years of of solid kind of investment focus and execution. Obviously, we we talked about launching a few new products in Europe, the the bright the bridge striking alert alerting and the electronic brake monitoring. We've also been landing more and more lighthouse customers. You've heard us talk about, you know, companies like VINCI, Fortune 500 construction company, and a and a number of others.

Dominic Phillips
Dominic Phillips
Chief Financial Officer at Samsara

And so just, a lot of kind of steady progress and investment there.

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

And I I think, the second half of your question was around competition. It is a different set of competitors there. They tend to be more regionally focused, and so we're showing up with a fairly mature technology platform that has a lot of functionality, and we're in the process of tweaking, the product to to meet the needs of each region.

Mark Schappel
Managing Director at Loop Capital Markets LLC

Thank you. Very helpful.

Mike Chang
Mike Chang
Vice President of Corporate Development & Investor Relations at Samsara

The next question comes from Alexey Gogilev with JPMorgan followed by axe Alex Sklar with Raymond James. Alexey? Okay. Let's go to Alex with Raymond James.

Alexander Sklar
Alexander Sklar
Vice President at Raymond James Financial

Great. Thanks. Dominic, on the on the dollar based net retention, another strong quarter at 115%. Is that still the

Mike Chang
Mike Chang
Vice President of Corporate Development & Investor Relations at Samsara

k. I think we lost Alex there. Let's go with, Derek Wood with TD Cowen. Derek?

Derrick Wood
Managing Director at TD Cowen

Hi, guys. Thanks. Hopefully, this hasn't been asked. But just with the extra market uncertainty out there, I'm wondering if perhaps in times like this, there could this opens up a window to gain share from legacy vendors. So I'm just I'm curious kinda what you're seeing out of the competitive landscape, and kinda do you have new strategies to look to drive up, you know, win rates or or competitive displacements?

Dominic Phillips
Dominic Phillips
Chief Financial Officer at Samsara

I I don't think it's it's terribly different than than when there's more, you know, macro stability. I I again, I think we're we're coming, as as Angel said, with a a platform with a a lot of kind of functionality. And and often cases, you know, customers have not adopted any sort of digital technology around their their operations, and and, you know, we've got a a market leading product. And so, I I don't think that's any different now versus, you know, other other periods of time. I think just more broadly, the the kind of prioritization for for customers, you with a lot of uncertainty around their near term cost structure can create timing risk on some deals.

Derrick Wood
Managing Director at TD Cowen

Sure. Dom, just a follow-up to, I know you guys have indicated that you expected to temper hiring this year. Any any change in how to think about headcount growth plans? And and has that changed since the beginning of the year?

Dominic Phillips
Dominic Phillips
Chief Financial Officer at Samsara

No changes from the beginning of the year. I I think just as a reminder, I think over the last couple of years, you know, we we really didn't make know coming out of COVID, we really were kind of behind on hiring, and we really used the last couple of years as catch up years. And so this year was much more is planned to and continues to be planned to be more of a balanced year where productivity has been solid in Q1 and gives us the confidence to continue to add sales capacity. But we're kind of on track with what we expected at the beginning of the year.

Derrick Wood
Managing Director at TD Cowen

Thank you.

Mike Chang
Mike Chang
Vice President of Corporate Development & Investor Relations at Samsara

Thanks. Let's go back to Alex. Let's try him again. See if his connection's back.

Alexander Sklar
Alexander Sklar
Vice President at Raymond James Financial

Great. Thank you. Can you all hear me?

Mike Chang
Mike Chang
Vice President of Corporate Development & Investor Relations at Samsara

Yeah.

Alexander Sklar
Alexander Sklar
Vice President at Raymond James Financial

Alright.

Alexander Sklar
Alexander Sklar
Vice President at Raymond James Financial

Sorry about that. So on the dollar based net retention, one fifteen, again, another strong quarter. Is that still the right anchor for the rest of the year? And then when you look at the drivers behind that, any change in terms of contribution from growth in vehicles or units versus solutions versus kind of pricing at renewal?

Dominic Phillips
Dominic Phillips
Chief Financial Officer at Samsara

No. Yeah. I think that's still our target for the year. We were able to achieve that in in q one, and and that's what we're we're expecting for the the rest of the year. Similar to in previous quarters and years, more of our expansion tends to come from from upsells of existing licenses.

Dominic Phillips
Dominic Phillips
Chief Financial Officer at Samsara

So customers will land with multiple products out of the gate, but they'll just do it on a subset of their their assets or their, you know, their their workers. And then over time, they'll come back, and they'll buy more licenses of their existing products across a broader set of assets, you know, whether it's geographies or or, you know, different operating companies, and that's what we saw in q one.

Alexander Sklar
Alexander Sklar
Vice President at Raymond James Financial

Okay. Great. And then maybe for you, Sanjit. You called out accelerating results from the the field services end market. You had some PR early earlier this week on that end market as well.

Alexander Sklar
Alexander Sklar
Vice President at Raymond James Financial

Can you just talk about your focus there? Any particular solutions that you're focused on that are that are more tailored to that end market versus some of your others?

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

Well, it continues to to be an area of interest. So in field services, the operations are a little different than in transportation logistics. They have more, site visits. They have more equipment. So areas like the asset tag or new products like the asset tag are helpful there in terms of filling out the portfolio.

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

They're also now starting to adopt driver safety. Historically, it had been industries like long haul transportation that had bought cameras. Most of the market, if you think about most of the commercial vehicles on the road, 90% of them don't have any kind of connected driver safety coaching program. Our field services customers, they think of their teams more as technicians or workers as opposed to drivers, and they're starting to see that they could actually reduce risk with technologies like this. So I think it's really just this is a segment of the market that's kind of activating and adopting these new technologies.

Alexander Sklar
Alexander Sklar
Vice President at Raymond James Financial

Great. Thank you both.

Mike Chang
Mike Chang
Vice President of Corporate Development & Investor Relations at Samsara

The next question comes from Jinade with Truist followed by Alexei with JPMorgan.

Junaid Siddiqui
Junaid Siddiqui
Investment Analyst at Truist Securities

Great. Thank you for taking my question. Sanjay, just wanted to ask about the adoption of, some of your products around worker experience like workflows and training and and how they're contributing to increased platform sales. Thank you.

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

Sure. So, on the workflow side, I I mentioned earlier, there are some fairly standard workflows that we see hundreds of millions flow through our system on. So good adoption of those kind of digital technologies. I think there's, increasing sort of awareness among the frontline workers in the market that digital is better. It's a better experience for them.

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

They can attach photos from their smartphone and so on. So that's been really strong. We've enhanced that with some more recent AI functionality where we can now, it's a visual intelligence, feature where we can understand what exactly is in a scene from a photograph. So that's an area where we're seeing a lot of interest. And on the training side, that's really part of this broader worker safety, push that we I was talking about earlier.

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

You can see risk reduction come from in cap coaching. You can see it come from, you know, sit down coaching as well. But then, being able to do relevant trainings, especially on a mobile device, especially in context of what's happened, that results in additional risk reduction, and we're seeing customers start to realize that, and and that's, drawing some of those sales through.

Junaid Siddiqui
Junaid Siddiqui
Investment Analyst at Truist Securities

Great. Thank you.

Mike Chang
Mike Chang
Vice President of Corporate Development & Investor Relations at Samsara

Okay. Our last question today comes from Alexei with JPMorgan.

Alexei Gogolev
Alexei Gogolev
Executive Director at JPMorgan Chase

Thank you, Mike. Sanjit, I had a question about this massive win with, one of the largest counties. You've already provided the broader public safety examples, but anything specific about that customer? What were the features that, this customer was looking for? And, was that decision perhaps related to the natural disasters in the area?

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

Sure. I I would say there's really kinda two key use cases in that specific, example. One is around, just driving higher levels of efficiency. That's a better understanding of asset utilization, reducing areas like fuel consumption. So that that would be one kind of cluster of of interest from the customer.

Sanjit Biswas
Sanjit Biswas
Co-Founder, Chief Executive Officer at Samsara

I will say, for some of these counties that are in hazardous areas where they get affected by natural disasters, being able to locate assets like generators, for example, after a storm is is very valuable. And then, we've shared a case study of the city of New Orleans, for example. They're trying to keep their citizens safe. Being able to know where all these teams are at all times is is helpful, especially in this disaster scenario. So, efficiency, but also being able to be, reactive and, responsive for their citizens.

Alexei Gogolev
Alexei Gogolev
Executive Director at JPMorgan Chase

Thank you, Sanjay.

Mike Chang
Mike Chang
Vice President of Corporate Development & Investor Relations at Samsara

Great. This concludes the question and answer portion. Thank you all for attending our q one fiscal year two thousand twenty six earnings call. Before I let you go, have a few short announcements. First, we'll be attending the BMO Virtual Software Conference on June 9, the Mizuho Tech Conference in New York City on June 10, and the FBN Virtual Software Conference on June 11.

Mike Chang
Mike Chang
Vice President of Corporate Development & Investor Relations at Samsara

We hope to see you at one of these events. Second, we are hosting our Investor Day on June 24 in San Diego, where we will provide additional insights in the same store trajectory and the overall state of physical operations. Please send an email to ir@samsara.com if you're interested in attending in person. For those who who prefer to attend virtually, our Investor Relations website will have a link to a live broadcast. That's it for today's meeting. If you have any follow-up questions, you can email us at ir@samsara.com. Bye, everyone.

Executives
    • Mike Chang
      Mike Chang
      Vice President of Corporate Development & Investor Relations
    • Sanjit Biswas
      Sanjit Biswas
      Co-Founder, Chief Executive Officer
    • Dominic Phillips
      Dominic Phillips
      Chief Financial Officer
Analysts
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