Samsara Inc. · NYSE:IOT
Samsara — Investor Day (June 2023)
71 slides from Samsara's investor day presentation, Jun 22, 2023
Slide 1: The Connected Operations Cloud
The Connected Operations Cloud June 22, 2023 | Austin, TX
Slide 2: Disclaimer Regarding Forward-Looking Statements and Non-GAAP Measures
2 © Samsara Inc. Disclaimer Regarding Forward-Looking Statements and Non-GAAP Measures This presentation contains forward-looking statements. These statements may relate to, but are not limited to, The trademarks included herein are the property of the owners thereof and are used for reference purpo
Slide 3: Agenda
3 Agenda © Samsara Inc. THURSDAY, JUNE 22 | 2:30pm – 5:00pm CST 2:30 – 2:35 Opening Remarks and Key Dates Mike Chang - VP, Corporate Development & Investor Relations 2:35 – 2:55 Samsara Vision Sanjit Biswas - Chief Executive Officer & Co-Founder 2:55 – 3:00 Leading the Next Phase of Growth Lara Caimi
Slide 4: Samsara Vision
Samsara Vision Sanjit Biswas CEO & Co-Founder © Samsara Inc. Confidential Material
Slide 5: Technology has transformed physical operations
5 © Samsara Inc. Technology has transformed physical operations
Slide 6: Agriculture over the years
EFFICIENCY Agriculture over the years 3 weeks of work 25%+ improvement in efficiency per decade 2 hours of work (100x faster)
Slide 7: Coal mining in the 20th century
SAFETY Coal mining in the 20th century 25%+ improvement in safety per decade 10x fewer workplace accidents
Slide 8: Emissions vs. population growth
SUSTAINABILITY Emissions vs. population growth UK: 9.78 tons of CO2 per capita (2001) Emissions improvements of 20-25% per decade UK: 5.15 tons of CO2 per capita (2021)
Slide 9: Digitization unlocks the next evolution
9 Digitization unlocks the © Samsara Inc. next evolution ent ovem mpr %+I 25 t men p rove %I m ~25 Physical Operations nt p roveme 5% I m ~2 2000 2010 2020 2030
Slide 10: The power of digitization
The power of digitization DECADE OF IMPROVING EMPLOYEE EFFICIENCY1 55% 43% 54% 46% 39% 37% 1 Employee efficiency measured by Revenue per FTE in 2022 vs 2012
Slide 11: Existing systems of records
Existing systems of records IT HCM CRM CREATIVE INFORMATION TECHNOLOGY Finance | Sales | Marketing | Legal | IT
Slide 12: Building the system of record for operations
Building the system of record for operations IT HCM CRM CREATIVE CONNECTED OPERATIONS CLOUD INFORMATION TECHNOLOGY OPERATIONAL TECHNOLOGY Finance | Sales | Marketing | Legal | IT Frontline
Slide 13: Connected Operations Cloud
@samsara Connected Operations Cloud <——_—————————_ wmirteo user experience ————————_» Safety ‘Telematics Apps Developer Access & Tools Privacy & Security (wim) (amncrries ) Conta ennicnonent >) DATA FROM SAMSARA + OEM DEVICES PARTNER ECOSYSTEM | 240 INTEGRATIONS + Enterprise Ay + HR& Payroll * Data’
Slide 14: Expanding into applications across operations
14 Expanding into applications across operations © Samsara Inc. BUILDING THE CONNECTED OPERATIONS CLOUD Vehicles Equipment Sites Workforce
Slide 15: Transforming the Worker Experience
Transforming the Worker Experience MOBILE EXPERIENCE CONNECTED FORMS MANAGEMENT (MEM) Phone 3
Slide 16: Delta Constructors
16 Delta Constructors © Samsara Inc. A partnership in mission-critical digital transformation COMPLETE SOLUTION Smart Equipment Vehicle Telematics FIRST EXPANSION Video-Based Safety + Site Visibility INITIAL LAND + Workforce Apps Smart Equipment + Smart Equipment Vehicle Telematics + Vehicle Telemat
Slide 17: Empowering the people who power our economy
Empowering the people who power our economy ➔ Over 40% of the world’s GDP ➔ Hundreds of millions of frontline workers ➔ More than half of all carbon emissions
Slide 18: Leading the Next Phase of Growth
Leading the Next Phase of Growth Lara Caimi President, Worldwide Field Operations © Samsara Inc. Confidential Material
Slide 19: My background
My background GROWTH 2017 – 2023 Chief Customer & Partner Officer Chief Strategy Officer CUSTOMER 2000 – 2017 Partner 2020 – PRESENT STRATEGY Board Director
Slide 20: Why I joined Samsara?
Why I joined Samsara? Market Market Multi-product Opportunity Leadership Platform Customer Customer-Centric Powerful Impact Culture Purpose
Slide 21: Building the System of Record for Operations
Building the System of Record for Operations Kiren Sekar Jeff Hausman Chief Strategy Officer Chief Product Officer © Samsara Inc. Confidential Material
Slide 22: Physical operations: the infrastructure that keeps our planet running
Physical operations: the infrastructure that keeps our planet running >40% of Global GDP1 1 Internal estimate of 2022 GDP based on analysis of multiple third-party sources.
Slide 23: Building the System of Record for physical operations
Building the System of Record for physical operations Energy Efficiency Safety Utilization Location Workflow Compliance Maintenance
Slide 24: Impact of digitally transforming with Samsara
Impact of digitally transforming with Samsara SAFETY EFFICIENCY SUSTAINABILITY 1 120K crashes prevented 1 110M Workflows digitized ~2.3B pounds of CO2 reduced2 1 Estimated stats for FY23. 2 Estimate based on year-over-year reduction in idling rates per monthly available hours for cohort of 2,500+ Sam
Slide 25: Track-record of AI innovation
Track-record of AI innovation FY20 FY21 FY22 SAFETY SAFETY SAFETY Computer vision to interpret road scenes Computer vision enhancements - tailgating, Annotation of 3rd party data, hand-activity classifier, (vehicle detection) and driver behavior in cab distracted driving camera obstruction detection
Slide 26: Why we are positioned to win in AI
26 © Samsara Inc. Why we are positioned to win in AI 1 Volume and breadth of Samsara data to train AI models 2 Infrastructure designed to scale and rapidly deliver new AI features 3 Customer feedback loop to accelerate our AI innovation
Slide 27: Volume and breadth of unique data to train models
1 Volume and breadth of unique data to train models ~6T 1.9B+ 99% 23M+ 55B+ data points trips taken of major U.S. digitized API calls processed roads covered* documents Assets Data Type Construction | Wholesale & Retail Trade | Transportation | Food & Beverages | Telecommunications Industries Field
Slide 28: Infrastructure to build and scale new AI capabilities
2 Infrastructure to build and scale new AI capabilities OPERATIONS - DRIVERS - SAFETY - COMPLIANCE - FACILITIES - SUPPORT SINGLE PANE OF GLASS Our platform is purpose built to: Safety Telematics Smart Equipment Site Visibility Workforce Apps ➔ Capture and curate structured and unstructured data ➔ Ad
Slide 29: Customer feedback loop to accelerate AI velocity
29 3 Customer feedback loop to accelerate AI velocity © Samsara Inc. Discover problems to solve Enable our Capture customers to win ground-truth data Deliver solutions through our platform
Slide 30: Leading propane distributor in North America
Leading propane distributor In North America SAFETY ➔ Building a safety culture across 4,500+ employees ➔ Goal: Zero fatalities & minimize accidents EFFICIENCY ➔ Serve 936,000 customers ➔ Deliver 4.1B liters of propane annually through network of 200 strategic locations SUSTAINABILITY ➔ Reduce fuel
Slide 31: Product Demo
Product Demo
Slide 32: Reshaping the Worker Experience
Reshaping the Worker Experience Jeff Hausman, Chief Product Officer © Samsara Inc. Confidential Material
Slide 33: Customer insights fuel innovation
33 © Samsara Inc. Customer insights fuel innovation
Slide 34: Reshape the Worker Experience
PEOPLE TRANSFORM Reshape the Worker Experience PERSONALIZED CONNECTED INTEGRATED
Slide 35: Personalized experiences
© Samsara Inc. Confidential. 35 experiences Personalized
Slide 36: Mobile Experience Management (MEM)
NEW LAUNCH Mobile Experience Management (MEM) Simplify mobile management for safer, more efficient operations Available in Early Access In US, CA
Slide 37: Reshape the Worker Experience
PEOPLE TRANSFORM Reshape the Worker Experience PERSONALIZED CONNECTED INTEGRATED
Slide 38: Connected experiences
38 © Samsara Inc. Connected experiences
Slide 39: Connected Forms
EARLY LOOK Connected Forms Go paperless with streamlined mobile workflows Available Later this Year
Slide 40: Reshape the Worker Experience
PEOPLE TRANSFORM Reshape the Worker Experience PERSONALIZED CONNECTED INTEGRATED
Slide 41: Operating vast and complex ecosystem
INTEGRATED EXPERIENCES Operating vast and OEMs IT DATA complex ecosystem 240 integrations 6 Integrations INSURANCE VERTICAL SPECIFIC APPS Used by largest customers1 on average 55B+ API calls ~1.5x increase y/y 1 Defined as a customer with $500K+ in ACV Stats as of FY23
Slide 42: Building the System of Record for physical operations
Building the System of Record for physical operations SAFETY EFFICIENCY SUSTAINABILITY
Slide 43: Maxim Crane & Univar Solutions
CUSTOMER FIRESIDE CHAT Maxim Crane & Univar Solutions Jeff Hausman Chief Product Officer © Samsara Inc. Confidential Material
Slide 44: Guest Speakers
44 INTRODUCING OUR © Samsara Inc. Guest Speakers Jonathan Vinson Travis Vedral Vice President of Transformation Senior Director of Systems and Strategies Maxim Crane Works Univar Solutions
Slide 45: Driving Durable and Efficient Growth
Driving Durable and Efficient Growth Dominic Phillips Chief Financial Officer © Samsara Inc. Confidential Material
Slide 46: $850M+ ARR in 7+ years of selling
$850M+ ARR 41% in 7+ years of selling $795 $856 $M $724 $663 $607 $558 $493 $437 $382 $341 $293 $253 $222 $194 $153 $122 $92 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY20 FY21 FY22 FY23 FY24 See Appendix for definition of ARR.
Slide 47: Samsara is operating in rarified air
~200 Samsara is operating in rarified air 58 6 US-listed software companies with CY23 consensus estimates of: ➔ $1B+ ARR ➔ 30%+ growth US-listed $1B+ ARR 30%+ growth ➔ Free cash flow positive (Q4 CY23) software companies & FCF positive Source: CapIQ and FactSet data as of June 16 2023 based on CY23 co
Slide 48: Key advantages leading to strong and consistent execution
48 © Samsara Inc. Key advantages leading to strong and consistent execution in the face of economic volatility 1 Highly predictable subscription business model 2 Selling into a generally large, less-discretionary Operations budget 3 Opportunities for hard ROI savings and quick time to payback for cu
Slide 49: Highly predictable revenue
49 Samsara 1 Highly predictable © Samsara Inc. Confidential. revenue PRICING Price per asset Price per headcount BUSINESS Perpetual Subscription Consumption License 98%+ Subscription Business Model MODEL Typically 3 – 5 year subscriptions INDUSTRY Software Video-Based Vehicle Smart Safety Telematics
Slide 50: Selling into a large, more resilient, less competitive Operations budget
2 Selling into a large, more resilient, less competitive Operations budget ~35% ~10% of 2023 IT budgets of 2023 Operations expected to decrease1 Technology budgets expected to decrease2 IT BUDGET OPERATIONS BUDGET 1 AlphaWise CIO Survey, Morgan Stanley Research. n=100 (US and EU data) 2 Samsara’s Th
Slide 51: Hard + Quick ROI
3 Hard + Quick ROI UNIVERSAL ROI + Fuel savings (routing & idling) + Lower insurance premiums + Reduce onroad and workplace accidents + Lower maintenance costs + Improve asset utilization + Improved worker hiring and retention Quick payback period, typically in months
Slide 52: Digitization unlocks more ROI opportunities
Digitization unlocks more ROI opportunities + Annual revenue generation + Tax optimization from tracking vehicle through accurate detention location reporting UNIVERSAL ROI $8M $10M + Fuel savings (routing & idling) + Identified savings by + Identified savings from using alternative energy + Lower ins
Slide 53: Reasons for durable growth
53 © Samsara Inc. Reasons for durable growth 1 Horizontal platform serving a diversified set of industries 2 Massive TAM, growing quickly, with many expansion opportunities 3 Strong momentum with large customers 4 Multi-product adoption driving opportunities for platform expansion 5 Expansions create
Slide 54: Horizontal platform serving diversified industries
54 1 Horizontal platform © Samsara Inc. serving diversified industries 5 of Top-10 6 of Top-10 Waste Management Construction ARR by Industry1 5 of Top-10 5 of Top-10 Chemical Carriers Transportation - LTL Figures as of Q1 FY24. Percentages may not add up to 100% due to rounding. 1 See Appendix for me
Slide 55: Our products address a large, fast-growing market opportunity
55 2025 EST. MARKET SIZE Our products address a large, 2 © Samsara Inc. fast-growing market opportunity $117 Billion (‘22-’25 Overall CAGR: 22%) 2022 EST. MARKET SIZE Connected Operations $60 Billion Smart Equipment Site Visibility Workforce Apps Connected Operations Smart Equipment Site Visibility
Slide 56: Large customers are fastest growing cohort
56 3 Large customers are fastest growing cohort © Samsara Inc. $100K+ ARR $1M+ ARR ARR Mix Customers Customers 53% 62% 1,375 55 40% 45% $100K+ ARR 49% Customers CORE 897 CUSTOMERS 34 $5K–$100K 52% ARR Customers 49% 47% <$5K ARR Customers 8% 6% 4% Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 Q1 FY22 Q1 FY23 Q1 FY
Slide 57: Multi-product customers are expanding platform breadth
57 4 Multi-product customers are expanding © Samsara Inc. platform breadth % of Customers with 2+ products % of Customers with 3+ products 55% 91% 93% 89% 49% 42% 72% 74% 68% 25% 23% 18% Q1 FY22 Q1 FY23 Q1 FY24 Q1 FY22 Q1 FY23 Q1 FY24 Fiscal year ends on the Saturday closest to February 1 Core Custo
Slide 58: Top customer multi-product adoption
58 4 Top 20 customer multi-product adoption © Samsara Inc. Top 20 Industry Vehicle Telematics Video-based Safety Smart Equipment Site Visibility Customers1 Customer 1 Field Services Customer 2 Wholesale & Retail Trade Customer 3 Logistics Customer 4 Utilities & Energy Customer 5 Transportation Custo
Slide 59: Multi-product adoption at scale
4 Multi-product adoption at scale Multi-product customers using Smart Equipment & Other VIDEO-BASED SAFETY $350M+ ARR ~1/2 30%+ y/y growth of Core Customers ($5K+ ARR) VEHICLE TELEMATICS ~2/3 of Large Customers $350M+ ARR ($100K+ ARR) 30%+ y/y growth SMART EQUIPMENT & OTHER $100M+ ARR Figures as of
Slide 60: Expansions provide strong floor for durable growth
60 5 Expansions provide strong floor for durable growth © Samsara Inc. NN ACV - NEW LOGOS VS EXPANSION CASE STUDY: LAND AND EXPAND Leading Utilities & Energy Customer 33% $900K 49% 50% Added 60% $1.4M +Sites Expanded Land with Expanded +Telematics Telematics $1.6M +Safety +Telematics $6.7M & Safety v
Slide 61: Reasons for efficient growth
61 © Samsara Inc. Reasons for efficient growth 1 Subscription business model unit economics drive long-term profitability 2 Continued operating leverage and working capital improvements with scale 3 Effectively managing dilution
Slide 62: Strong subscription unit economics
1 Strong subscription unit economics Breakeven (CAC payback) Lifetime Customer Value Acquisition Point LTV:CAC >8x Customer Acquisition Cost CUSTOMER LIFETIME See Appendix for full definition and methodology.
Slide 63: Improving operating leverage with scale
63 2 Improving operating leverage with scale © Samsara Inc. Non-GAAP Operating Income¹ Adjusted Free Cash Flow¹ FY21 FY22 FY23 Q1 FY23 Q1 FY24 FY21 FY22 FY23 Q1 FY23 Q1 FY24 (12%) ($19) ($2) ($25) (17%) (1%) (9%) ($51) (27%) (18%) (42%) ($77) (36%) 9 p.p margin improvement 35 p.p margin ($110) (71%)
Slide 64: Effectively managing equity dilution
64 3 Effectively managing equity dilution © Samsara Inc. SAMSARA EQUITY DILUTION SAMSARA COMPENSATION PHILOSOPHY 3-5% 4.4% Total Compensation <3% 3-4% = <2% Salary FY241 LONG-TERM1 + FY23 Variable Cash = Previous Guidance2 + POTENTIAL LEVERS TO MANAGE DILUTION + Compensation mix (cash vs. equity) +
Slide 65: Key investor highlights
65 © Samsara Inc. Key investor highlights 1 Large and diverse end markets, underserved by technology 2 Operations budget is generally large, less-discretionary, and less competitive 3 Hard and fast ROI is a highly sought after customer conversation 4 Multiple products (vehicle and non-vehicle) growi
Slide 66: Samsara
samsarda
Slide 67: Appendix
Appendix © Samsara Inc. Confidential Material
Slide 68: GAAP to Non-GAAP Reconciliations
68 Note: Figures (other than %’s) in $000’s GAAP to Non-GAAP Reconciliations © Samsara Inc. FY21 FY22 FY23 1Q23 1Q24 GAAP S&M expense $202,262 $291,209 $370,098 $87,449 $118,955 Less: Stock-based compensation ($6,947) ($62,548) ($54,072) ($14,359) ($16,320) expense-related charges Non-GAAP S&M expen
Slide 69: GAAP to Non-GAAP Reconciliations
69 Note: Figures (other than %’s) in $000’s GAAP to Non-GAAP Reconciliations © Samsara Inc. FY21 FY22 FY23 1Q23 1Q24 GAAP G&A expense $75,223 $159,843 $170,785 $43,742 $43,266 Less: Stock-based compensation ($4,821) ($66,497) ($53,702) ($14,028) ($15,505) expense-related charges Non-GAAP G&A expense
Slide 70: GAAP to Non-GAAP Reconciliations
70 Note: Figures (other than %’s) in $000’s GAAP to Non-GAAP Reconciliations © Samsara Inc. FY21 FY22 FY23 1Q23 1Q24 GAAP operating loss ($209,479) ($353,848) ($259,455) ($70,205) ($75,824) GAAP operating margin (84%) (83%) (40%) (49%) (37%) Add: Stock-based compensation $25,564 $238,238 $181,424 $4
Slide 71: Definitions / Methodology
71 Definitions / Methodology © Samsara Inc. Annual Contract Value (ACV) Customer Payback Period We define ACV as the annualized value of a customer's total contract value for Samsara products as of We calculate a customer's payback period based on estimated annual dollar savings the measurement date.