Samsara Inc. · NYSE:IOT
Samsara — Investor Day (June 2022)
72 slides from Samsara's investor day presentation, Jun 15, 2022
Slide 1: The Connected Operations Cloud Investor Day
The Connected Operations Cloud Investor Day June 15, 2022 1
Slide 2: Disclaimer and Statement Regarding use of NON-GAAP Measures
2 © Samsara Inc. Disclaimer and Statement Regarding use of 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 purposes only.
Slide 3: Agenda
3 © Samsara Inc. Agenda WEDNESDAY, JUNE 15 | 1:30pm – 4:00pm PST 1:30 – 1:35 Opening Remarks and Key Dates Mike Chang - VP, Corporate Development & IR 1:35 – 1:55 Leading the Digital Transformation of Physical Operations Sanjit Biswas - Co-Founder & CEO 1:55 – 2:35 The Heart of Digital Transformatio
Slide 4: Leading the Digital Transformation of Physical Operations
Leading the Digital Transformation of Physical Operations Sanjit Biswas Co-Founder & CEO © Samsara Inc. Confidential Material
Slide 5: Walking in the shoes of our customers
5 © Samsara Inc. Walking in the shoes of our customers
Slide 6: Customer mission and operations (construction materials)
6 Mission © Samsara Inc. Provide the foundation to connect our communities today and build a better tomorrow. ➔ 400 Sites Vision Be the most socially responsible integrated construction ➔ 4,000 Vehicles materials solution provider on the market. ➔ 12 Operating Companies Differentiator Leading the ma
Slide 7: Physical operations are the infrastructure that keeps our planet running
Physical operations are the infrastructure that keeps our planet running >40% of Global GDP1 1 Internal estimate based on 2021 analysis of multiple third-party sources.
Slide 8: Existing building blocks accelerate the transformation of physical operations
Existing building blocks accelerate the transformation of physical operations Consumer Digital Transformation (40 years) Enterprise Digital Transformation (20 years) Physical Operations Digital Transformation (10-20 years) 1960 1970 1990 2005 Today Future Mainframe PCs Internet Mobile Cloud AI
Slide 9: Building the system of record for physical operations
Building the system of record for physical operations IT CRM CREATIVE HR CONNECTED OPERATIONS CLOUD
Slide 10: Evolving operations to be smarter and more efficient
10 © Samsara Inc. Evolving operations to be smarter and more efficient TODAY FUTURE Routing and Mapping Routing and Mapping 2.0 Discovering optimal routes to Field service routes optimized for maximize fuel efficiency employee skill sets, fuel efficiency, weather, and on-time arrival
Slide 11: Transforming how employees work
11 © Samsara Inc. Transforming how employees work TODAY FUTURE Smart Safety Programs Augmented Reality Workflows Preventative strategies and AI to Customized workflows for technicians reduce occupational safety injuries to repair physical assets and deaths
Slide 12: Reimagining business
12 © Samsara Inc. Reimagining business TODAY FUTURE Beyond Physical Operations Smart Factories Connecting real-time operations data Increasing asset utilization and reducing with financial systems employee costs
Slide 13: Journey to the cloud
Journey to the cloud OPEN PLATFORM Integrate with 3rd party systems MOBILITY COLLABORATION SECURITY FLEXIBILITY INSIGHTS Data accessibility from Streaming collaboration Highly secured Scalable infrastructure Breaking down data back office to the front silos and delivering line insights
Slide 14: Samsara is in the early innings of a long-term opportunity
14 Samsara is in the early 2024 EST. MARKET SIZE © Samsara Inc. innings of a long-term opportunity $97 Billion1 2 3 (‘21-’24 Overall CAGR: 21%) 2021 EST. MARKET SIZE Connected Fleet + Connected Equipment + $55 Billion1 2 3 Connected Sites Connected Fleet + Connected Equipment + Connected Sites $64 B
Slide 15: Samsara's Unique Differentiation
15 © Samsara Inc. INTUITIVE Samsara’s Unique INTEGRATED Differentiation INNOVATIVE
Slide 16: Connected Operations Cloud
@samsara Connected Operations Cloud SAMSARA APPLICATIONS Video-Based 2a Vehicle Driver Apps Equipment Monitoring © Site Safety Telematics ~ & Workflows and Control Visibility SAMSARA DATA PLATFORM Al & Machine Workflows Developer Privacy Learning Oe & Analytics 03 Alerts APIs wd & Security Data Inge
Slide 17: Multi-product platform momentum
Multi-product platform momentum $700 FY 2022 Released 200+ Features $600 FY 2021 $500 Launched Site Visibility Application ARR1 ($M) $400 FY 2018 Launched Video-Based Safety Application FY 2020 $300 Launched Driver Workflow and Compliance Application Launched App Marketplace Launched Equipment Monito
Slide 18: Building for the long-term
18 Building for the long-term © Samsara Inc. YEAR FOUNDED REVENUE REVENUE 6 Years from Founding Today 1999 $310M 17 Years $26B 2004 $43M 12 Years $6B 2005 $134M 11 Years $5B 2010 $100M1 6 Years $1B $428M 2015 Multi-decade 5 products 1 Based on earliest available data (2017A revenue)
Slide 19: Summit Materials
19 © Samsara Inc. Summit Materials A partnership in mission-critical digital transformation COMPLETE SOLUTION FIRST EXPANSION Vehicle Telematics INITIAL INTEREST Video-Based Safety Vehicle Telematics + Equipment Monitoring + Vehicle Telematics + Video-Based Safety + Site Visibility Telematics Telema
Slide 20: Our Samsara Values drive our success
20 © Samsara Inc. Our Samsara Values drive our success 01– Focus on customer success 02– Build for the long term 03– Adopt a growth mindset 04– Be inclusive 05– Win as a team Financial Times Forbes Cloud 100 Fast Company IOT Breakthrough Business Intelligence Group Recent America’s Fastest Top 20, 2
Slide 21: Our Mission
OUR MISSION To increase the safety, efficiency, and sustainability of the operations that power the global economy
Slide 22: The Heart of Digital Transformation - Access, Analyze, Act
The Heart of Digital Transformation - Access, Analyze, Act Kiren Sekar Chief Product Officer © Samsara Inc. Confidential Material
Slide 23: Digitization has transformed our lives
23 © Samsara Inc. Digitization has transformed our lives ACCESS ACCESS ACCESS Digitizing customer purchase data Digitizing enterprise CRM data ANALYZE ANALYZE Top performing SKUs, product rates Pipeline and forecast management, opportunity and lead management ACT ANALYZE ACT Recommending products AC
Slide 24: How customers digitally transform with Samsara
24 How customers digitally transform with Samsara © Samsara Inc. Improving Fuel Efficiency Reducing Insurance Claims Streamlining Worker Productivity GP Transco used Samsara to reduce idling Heniff estimates a 50% reduction in UFP Industries estimates they saved by 35%, saving an estimated 205,000 gal
Slide 25: Pioneering the connected operations cloud
Pioneering the connected operations cloud Energy Efficiency Safety Samsara Connected Operations Cloud Utilization Location Workflow Compliance Maintenance
Slide 26: Samsara transforms operations data into actionable insights
26 © Samsara Inc. Samsara transforms operations data into actionable insights Access Analyze Act Multiple Data Integration Platform Products Single Pane Across Data Sources Platform Services of Glass Teams Analytics Video-Based Safety Sensor Data Operations AI-Based Machine Learning Vehicle Telemati
Slide 27: IoT devices accelerate digital transformation
27 © Samsara Inc. IoT devices accelerate digital transformation Newer assets send data to Samsara through software APIs. Our devices connect the rest. Cost-efficient design accelerates adoption ➔ Provided with subscription ➔ Efficient design commodity components, outsourced manufacturing Plug-and-play d
Slide 28: Leading IoT data advantage
Leading IoT data advantage 4.6 Trillion+ 33 Billion+ 85 Billion+ 2.4 Billion+ DATA POINTS API CALLS MINUTES OF VIDEO FOOTAGE AI-BASED DETECTIONS Video-Based Safety Vehicle Telematics Apps & Driver Workflows Equipment Monitoring Site Visibility ➔ Real-time HD In-Cab ➔ GPS ➔ Electronic Documents ➔ Vibr
Slide 29: Differentiated multi-product suite
29 © Samsara Inc. Differentiated multi-product suite Multiple applications in an integrated, easy-to-use solution: Video-Based Safety Vehicle Telematics Apps & Driver Equipment Monitoring Site Visibility Workflows & Control
Slide 30: Product Demo
30 © Samsara Inc. Product Demo
Slide 31: Connected operations data ecosystem
31 © Samsara Inc. Connected API Calls operations data ecosystem 4x 33B 155+ Integrations 7B 4+ Average integrations used by large customer FY2021 FY2022
Slide 32: Powering an ecosystem of applications
32 © Samsara Inc. Powering an ecosystem of applications OEMs IT Data Insurance Vertical-Specific Apps (cloud-to-cloud data) IT Data ➔ ➔ International ➔ ADP ➔ Nationwide ➔ Edulog FEATURED PARTNERS ➔ Ford ➔ Kronos ➔ Progressive ➔ EVgo ➔ John Deere ➔ Slack ➔ Canal ➔ Mcleod Software ➔ Mack ➔ Paycom ➔ Tri
Slide 33: Customer Momentum
Customer Momentum Andy McCall Chief Revenue Officer © Samsara Inc. Confidential Material
Slide 34: Who we sell to
Who we sell to Connected Operations Across Industries Government, Construction Field Services Logistics Manufacturing Transportation Utilities & Energy Wholesale & Retail Other Education, & Healthcare
Slide 35: Key areas operators care most about
35 © Samsara Inc. Key areas operators care most about SAFETY EFFICIENCY SUSTAINABILITY ➔ Safety ➔ Operational waste ➔ Emissions litigation, OSHA violations, fuel, products, food, reducing carbon, thefts, incidents produce, repairs electrifications, pollutants ➔ Insurance ➔ Labor inefficiency premiums c
Slide 36: FY22 select customer wins
FY22 select customer wins New Logos + Expansions
Slide 37: How we go to market
SEGMENT How we go to market Enterprise Mid Market United States GEOGRAPHY Mexico Enterprise Mid Market Canada More complex deal structures. More transactional. Longer sales cycles. Shorter sales cycles. Europe
Slide 38: How we sell
38 © Samsara Inc. How we sell SEE TRY BUY Generate Identify Trial Adoption / Expansion / Interest Challenges Process Onboarding Up-sell
Slide 39: Every department is an entry point
Every department is an entry point Maintenance & Procurement IT & Technology Logistics Department Customer Service Safety Department Quality Control
Slide 40: Multi-product platform approach
40 © Samsara Inc. Multi-product platform approach [pic] MULTI-PRODUCT ADOPTION1 70%+ 90%+ core customers2 $100K+ customers Safety Telematics Monitoring Site Visibility Driver Apps Figures as of Q1 FY23 1 Defined as two or more product subscriptions 2 See Appendix for definition
Slide 41: 2nd Largest US Food Distributor
41 Leading North America 2nd Largest US Food © Samsara Inc. Electricity and Gas Provider Distributor 10,000+ Vehicles | 4,000+ Assets 200,000+ Customer Locations | 100+ Distribution Centers ARR Evolution ARR Evolution $3.8M $2.5M $3.5M $1.8M $2.2M $1.5M $1.2M $845K $19.2K FY18 FY22 Q2 FY22 Q4 FY22 F
Slide 42: Break
© Samsara Inc. 42 Break
Slide 43: Customer Fireside Chat: Artera + XPO
Customer Fireside Chat: Artera + XPO Andy McCall Chief Revenue Officer © Samsara Inc. Confidential Material
Slide 44: Guest Speakers
44 INTRODUCING OUR © Samsara Inc. Guest Speakers Tony Graham Troy Allen President, West Division VP of Health, Safety & Environment XPO Logistics Artera
Slide 45: Driving Durable and Efficient Growth
Driving Durable and Efficient Growth Dominic Phillips Chief Financial Officer © Samsara Inc. Confidential Material
Slide 46: Rapid growth at scale
Rapid growth at scale ARR1 ($M) 59% FY20 FY21 FY22 FY23 Fiscal year ends on the Saturday closest to February 1 1 See Appendix for definition
Slide 47: Top combination of growth and scale
Top 5 combination of growth and scale 80%+ ARR: $607M ARR Growth: 59% ARR GROWTH 60% 40% 20% 0% $250 $500 $750 $1,000 $10,000+ ARR ($M) Source: Meritech Capital. Data set based on organic growth and scale of public SaaS / cloud IPOs since 2004. Source: Meritech Capital
Slide 48: $600M of run-rate revenue in 7 years
48 © Samsara Inc. $600M of run-rate revenue in 7 years 15 14 14 11 11 10 10 10 10 8 8 8 8 7 ke ke n ta w ay om o k th a ify g ia ac ili up No o Ok tri fla Pa kd ss op ad Tw Zo Sl Co dS ice or ow Ui la t Sh Da W ow At rv Sn Se Cr Labels represent number of years to reach $600 million of run-rate reven
Slide 49: Why we expect growth will be durable
49 © Samsara Inc. Why we expect growth will be durable 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 Expansi
Slide 50: A horizontal platform serving diversified industries
50 1 A horizontal platform © Samsara Inc. serving diversified industries ARR By Industry1 Figures as of Q1 FY23. Percentages may not add up to 100% due to rounding. 1 See Appendix for methodology
Slide 51: Our products address a large, fast-growing market opportunity
51 2 Our products address a large, 2024 EST. MARKET SIZE © Samsara Inc. fast-growing market opportunity $97 Billion1 2 3 (‘21-’24 Overall CAGR: 21%) 2021 EST. MARKET SIZE Connected Fleet + Connected Equipment + $55 Billion1 2 3 Connected Sites Connected Fleet + Connected Equipment + Connected Sites
Slide 52: Bottoms-up analysis implies a $70B+ fleet opportunity today
52 2 Bottoms-up analysis implies a $70B+ fleet opportunity today © Samsara Inc. CONNECTED FLEET Total North America Europe # of Commercial 97 million 32 million 65 million Vehicles1 % of Enterprise + ~70% ~70% ~70% Mid Market Vehicles2 $73 Billion Connected Fleet # of Enterprise + 68 million 23 milli
Slide 53: Large customer momentum
53 3 Large customer momentum © Samsara Inc. $100K+ ARR Customers $1M+ ARR Customers 73% 89% >3x >3x Fiscal year ends on the Saturday closest to February 1
Slide 54: ARR mix shifting to large customers
54 3 ARR mix shifting to large customers © Samsara Inc. 15K+ Core Customers ARR Mix Shifting to $100K+ Customers Customer Mix % of ARR by Customers $100K+ ARR Customers 897 CORE $5K – $100K ARR 94% of ARR Customers ~15,000 from core customers <$5K ARR Customers ~14,000 Figures as of Q1 FY23
Slide 55: Multi-product customers are expanding platform breadth
55 4 Multi-product customers are expanding platform breadth © Samsara Inc. % of Core Customers1 % of $100K+ ARR Customers 71% with 2+ products 91% with 2+ products Fiscal year ends on the Saturday closest to February 1 1 Product 2 Products 3+ Products 1 See Appendix for definition
Slide 56: Multi-product adoption at scale
56 4 Multi-product adoption at scale © Samsara Inc. Multiple products Multi-product customers at scale using non-fleet 46% Vehicle Telematics core customers 42% of ARR 64% $100K+ ARR customers Video-based Safety 46% of ARR Apps & Driver Workflows, Equipment, Sites Figures as of Q1 FY23 12% of ARR
Slide 57: Expansions create foundation for durable growth
57 5 Expansions create foundation for durable growth © Samsara Inc. Core Customers1 $100K+ ARR Customers Dollar-based Net Retention Rate Dollar-based Net Retention Rate 125% 115% Fiscal year ends on the Saturday closest to February 1 Target 1 See Appendix for definition
Slide 58: Why we expect growth will be efficient
58 © Samsara Inc. Why we expect growth will be efficient 1 Subscription business model unit economics drive long-term ROI 2 70%+ gross margin provides foundation for profitability 3 Continued operating leverage and working capital improvements with scale
Slide 59: Strong subscription unit economics
59 1 Strong subscription unit economics © Samsara Inc. Customer Breakeven Acquisition (CAC payback) Lifetime Point Value LTV:CAC >8x Customer Acquisition Cost Customer Lifetime See Appendix for full definition and methodology.
Slide 60: Stabilizing 70%+ gross margin
60 2 Stabilizing 70%+ gross margin © Samsara Inc. Non-GAAP¹ Gross Margins Potential Drivers of Expansion Cost Efficiencies: ➔ Cellular and cloud hosting economies of scale ➔ Supply chain normalization ➔ Connected device optimization Improved Monetization: ➔ Opportunities for software-only SKUs (new pr
Slide 61: Improving operating leverage with scale
61 3 Improving operating leverage with scale © Samsara Inc. Non-GAAP operating margin¹ Adjusted free cash flow margin¹ FY20 FY21 FY22 Q1 FY22 Q1 FY23 FY20 FY21 FY22 Q1 FY22 Q1 FY23 +3% (5%) (15%) (4%) (18%) Difference between adjusted FCF and non-GAAP operating margin expected to shrink as supply cha
Slide 62: Supply chain disruption causing additional working capital investments
62 Supply chain disruption causing additional working capital investments © Samsara Inc. % of Revenue Q1 FY23 Non-GAAP Operating Margin to Adjusted Free Cash Flow Margin Bridge (18%) 11% (21%) (36%) (6%) (1%) (1%) Non-GAAP Change in Connected Inventory Net PP&E 4 Other Adjustments Adjusted FCF 1 5 O
Slide 63: Balancing growth and operating leverage
63 Balancing growth and operating leverage © Samsara Inc. CY2021 Revenue Growth + Non-GAAP Operating Margin¹ 45% Median: 37% Source: CapIQ. Data set based on organic growth and scale of SaaS / cloud IPOs since 2004. Samsara data for FY22. 1 See Appendix for reconciliation to GAAP financial measures
Slide 64: Key investor questions addressed
64 © Samsara Inc. Key investor questions addressed 1 Diversified end markets (no vertical >25% of ARR) 2 TAM is large with many opportunities to expand further 3 Video-based safety is our largest and fastest growing product 4 Non-fleet penetration rate is high across core and large customer segments N
Slide 65: Q&A
© Samsara Inc. 65 Q&A
Slide 66: Thank You
Thank You © Samsara Inc. Confidential Material
Slide 67: samsarda
samsarda
Slide 68: Appendix
Appendix © Samsara Inc. Confidential Material
Slide 69: Target model
69 © Samsara Inc. Target model FY21 FY22 Q1 FY23 Long-Term Targets Commentary ➔ Opportunities for software-only SKUs Gross Margin % 70% 72% 73% 74% - 76% ➔ Optimized cloud and cellular usage Sales & Marketing ➔ More efficient GTM. i.e. lower 78% 53% 51% 29% - 33% % of total revenue commission rate thr
Slide 70: GAAP to Non-GAAP Reconciliations
70 GAAP to Non-GAAP Reconciliations © Samsara Inc. Figures (other than %’s) in $000’s FY20 FY21 FY22 1Q22 1Q23 GAAP S&M expense $181,556 $202,262 $291,209 $52,286 $87,449 Less: Stock-based compensation expense-related charges ($1,064) ($6,947) ($62,548) ($188) ($14,359) Less: Compensation expense in
Slide 71: GAAP to Non-GAAP Reconciliations
71 GAAP to Non-GAAP Reconciliations © Samsara Inc. Figures (other than %’s) in $000’s FY20 FY21 FY22 1Q22 1Q23 GAAP gross profit $71,543 $174,512 $303,861 $62,102 $103,027 Add: Stock-based compensation expense-related charges $6 $13 $6,344 $1 $1,760 Non-GAAP gross profit $71,549 $174,525 $310,205 $62,
Slide 72: Definitions / Methodology
72 © Samsara Inc. Definitions / Methodology Annual Recurring Revenue Net Retention Rate We define ARR as the annualized value of subscription contracts We calculate our dollar-based net retention rate as of a period end by starting with the ARR that have commenced revenue recognition as of the measure