Samsara Inc. · NYSE:IOT
Samsara — Investor Day (June 2024)
82 slides from Samsara's investor day presentation, Jun 27, 2024
Slide 1: Investor Day, June 27, 2024, Chicago
June 27, 2024 | Chicago, IL
Slide 2: Disclaimer and Statement Regarding Use of Non-GAAP Measures
Disclaimer and Statement Regarding Use of Non-GAAP Measures This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and The trademarks included herein are the property of the owners thereof and are used for reference purposes only. Such u
Slide 3: Agenda
Agenda 2:30 – 2:35 Opening Remarks and Key Dates Mike Chang - VP, Corporate Development & Investor Relations 2:35 – 3:05 Future of Connected Operations Sanjit Biswas - Chief Executive Officer & Co-Founder 3:05 – 3:25 Flywheel of Digitization Kiren Sekar - Chief Product Officer 3:25 – 3:30 Break 3:30 – 3
Slide 4: Future of Connected Operations
Future of Connected Operations Sanjit Biswas Chief Executive Officer & Co-Founder
Slide 5: Our Mission
OUR MISSION To increase the safety, efficiency, and sustainability of the operations that power the global economy
Slide 6: Technology has transformed our lives
Technology has transformed our lives CONSUMER ENTERPRISE © Samsara Inc.
Slide 7: Physical operations is just beginning to digitize
Physical operations is just beginning to digitize © Samsara Inc.
Slide 8: Physical operations are the backbone of the world economy
Physical operations are the backbone of the world economy Waste Management Construction >40% Chemical Carriers Transportation 1 of Global GDP © Samsara Inc. 1 Groceries Wholesale & Retail Internal estimate of 2023 GDP based on analysis of multiple third-party sources.
Slide 9: The best run companies need a single system of record
Which assets need What equipment is How should we plan maintenance and repair? underutilized? our customer routes? The best run companies need a single system of record © Samsara Inc. Confidential. Who needs to be trained How do we reduce What should we transition for our upcoming job? our risk profil
Slide 10: 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 © Samsara Inc. Finance | Sales | Marketing | Legal | IT Frontline
Slide 11: The Connected Operations Cloud
The Connected Operations Cloud ECOSYSTEM OPERATIONS - DRIVERS - SAFETY - COMPLIANCE - FACILITIES - SUPPORT UNIFIED USER EXPERIENCE Safety Telematics Workforce Apps Connected Site Visibility Equipment THE SAMSARA PLATFORM Developer Workflows Privacy & Security Access & Tools AI/ML Analytics Data Enric
Slide 12: Our first decade: from telematics application to an operations platform
Our first decade: from telematics application to an operations platform Future of Connected Operations Workforce Growing Data Equipment Customer AI-Powered Safety Actions Insights Telematics © Samsara Inc.
Slide 13: Product Demo
ROI Savings Product Reduce onroad and workplace accidents Demo Lower insurance premiums Fuel savings Asset utilization Maintenance
Slide 14: Embarking on a multi-decade journey
Embarking on a multi-decade journey Phase 1: Phase 2: Phase 3: Real-time data apps Single system with multiple Smarter decisions with (telematics entry point) apps and open APIs AI and autonomy © Samsara Inc.
Slide 15: Expanding volume & breadth of Samsara's data
Asset Utilization Safety Score Speeding Summary Expanding volume & breadth of Samsara’s data 60B 9T+ 75B EV Suitability Miles Driven Data Points API Calls Processed Emissions Top Drivers Represents FY24 stats.
Slide 16: AI advancements enable new insights
AI advancements Deep Learning Object Detection enable new insights Edge AI Advancements enable new models that can Regression better understand our operations data: ● Measure risk ● Optimize labor and asset utilization Self- Supervised Activity ● Improve energy efficiency Learning Recognition ● Mainta
Slide 17: AI Tech Preview
AI Tech Preview
Slide 18: Evergreen problems in operations
Evergreen problems in operations Safety Efficiency Sustainability Identify risk, automate More effective labor with automated Identify wasted training and coaching workflows, chatbots, and copilots energy and materials
Slide 19: The System of Record for Physical Operations
The System of Record for Physical Operations
Slide 20: Flywheel of Digitization
Flywheel of Digitization Kiren Sekar Chief Product Officer
Slide 21: The future of Connected Operations: new products enabled by our flywheel
The future of Connected Operations: new products enabled by our flywheel Growing Data Customer AI-Powered Actions Insights © Samsara Inc.
Slide 22: Product expansion philosophy
Product expansion philosophy More Operations Data New AI Insights Single Pane of Glass THE SAMSARA PLATFORM AI/ML ANALYTICS DATA ENRICHMENT PRIVACY & SECURITY DEVELOPER ACCESS & TOOLS WORKFLOWS © Samsara Inc.
Slide 23: Image with operations environment
Image with operations environment w/ lots of diverse assets © Samsara Inc.
Slide 24: Power of Samsara's network
Power of Samsara’s network SAMSARA’S NETWORK DENSITY IN ONE HOUR NORTH AMERICA EUROPE
Slide 25: Asset Tag
New Product Asset Tag ● Industrial-grade bluetooth tag ● Connects to millions of devices across Samsara network ● ROI: Asset utilization, loss prevention, worker efficiency © Samsara Inc.
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Slide 27: Product Demo: Asset Tag
Product Demo Asset Tag
Slide 28: To Do
To Do ©) Site Safety Check Due Submitted @ Forklift Inspection John »bson + Jui @ Toolbox Talk Julia Julius +
Slide 29: Connected Workflows
New Product Crash detected - Truck A172 June 25 • 10:00 AM Connected Workflows ● Automate workflows across Accident report assigned safety, maintenance, routing, and workforce management ● Powered by operations data Report complete and insights in Samsara ● ROI: Workforce productivity, Root cause anal
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Slide 31: Form assigned to you
Form assigned to you Risk Assessment Due Today, 10:00 AM
Slide 32: Engine Hours
Engine Hours Asset name Engine hours 5,470
Slide 33: Broken Ladder
ISSUE ASSIGNED Broken Ladder Due Today, 10:00 AM
Slide 34: Automating operations workflows
Automating operations workflows Safety Maintenance Workforce Routing Field Services
Slide 35: Connected Training
Connected New Product Training Connected Training ● Data-driven training built Samsara Safety Score for frontline workers ● Powered by AI insights and operational context in Samsara Operations ● Seamlessly integrated into Data mobile experience ● ROI: Safety, engagement, and productivity © Samsara I
Slide 36: Safety Incident
Safety Incident © Samsara Inc.
Slide 37: Targeted Training
Targeted Training © Samsara Inc.
Slide 38: Customizable Content
Customizable Content © Samsara Inc.
Slide 39: Asset Tag
Asset Tag Here The asset is within arm’s reach Connected Workflows Find Asset Broken Ladder Due Today «10:00 AM Connected Training Defensive Driving © 5m £9 Due Julo2 Rear-End Collision Avoidance @ 10m © Due Jun 24 Electronic Distractions ‘ (J | © 5m_ 9 Due Jul to Start Course
Slide 40: The Connected Operations Cloud
The Connected Operations Cloud ECOSYSTEM OPERATIONS • DRIVERS • SAFETY • COMPLIANCE • FACILITIES • SUPPORT UNIFIED USER EXPERIENCE Safety Telematics Workforce Apps Connected Site Visibility Equipment THE SAMSARA PLATFORM Developer Workflows Privacy & Security Access & Tools AI/ML Analytics Data Enric
Slide 41: Delivering Customer Outcomes
Delivering Customer Outcomes Lara Caimi President of Worldwide Field Operations
Slide 42: Our customers are the backbone of the economy
Our customers are the backbone of the economy Construction Field Services Government, Logistics Manufacturing Transportation Utilities & Energy Wholesale & Retail Other Education, & Healthcare © Samsara Inc.
Slide 43: Go-to-market strategy
Go-to-market strategy BY COHORT BY GEOGRAPHY EUROPE CANADA ENTERPRISE ● High-Touch ● More Complex Stats ● Longer Sales Cycles MEXICO UNITED STATES MID-MARKET 82% 18% ● Medium-Touch of Q1 FY25 of Q1 FY25 © Samsara Inc. ● More Transactional ● Shorter Sales Cycles NNACV NNACV See Appendix for definition
Slide 44: Land and expand strategy
Land and expand strategy LAND RENEW & EXPAND Driven by partnership and ROI Driven by exceptional products and services Optimize lead generation Focus on business Deliver value Manage change and account-based outcomes quickly at scale marketing Offer expert guidance Identify additional Sell the platf
Slide 45: A partnership building the future of connected operations
A partnership building the future of connected operations 82%↓ reduction in mobile device usage 78%↓ reduction in distracted driving FY22 FY23 FY24 FY25 + + 8 3.4K 5K+ 10,000+ + Safety + Telematics + Equipment Monitoring + Connected Forms © Samsara Inc. EXPANSIONS + Safety + Safety VEHICLES ASSETS E
Slide 46: Rapid ROI and business impact
Rapid ROI and business impact The Business Value of Samsara 8x+ $2M Return on Investment Fleet-Related Benefits Per Organization Per Year 29%↓ 20%↓ 10%↑ Decrease in Decrease in © Samsara Inc. Increase in Accidents Idling Time Vehicle Lifespan Statistics from IDC Business Value White Paper, sponsored
Slide 47: Delivering 8x+ ROI with Samsara
Delivering 8x+ ROI with Samsara Percentage benefit per vehicle using Samsara REDUCED VEHICLE CRASH COSTS 14% REDUCED GROSS INSURANCE PREMIUMS 1 24% FUEL SAVINGS, LESS IDLING 1% FUEL SAVINGS, FEWER MILES DRIVEN 4% REDUCED MAINTENANCE COSTS 9% REDUCED VEHICLE COSTS, LONGER LIFESPAN 9% VALUE OF INCREASE
Slide 48: Digitization unlocks more ROI opportunities
Digitization unlocks more ROI opportunities + Annual revenue generation + Tax optimization from tracking vehicle through accurate detention location reporting $8M $10M UNIVERSAL ROI + Identified savings from reduced construction + Reduced downtime equipment rental due to during a natural disaster + F
Slide 49: Poised for continued success
Poised for continued success Physical operations are Our customers typically We are just beginning on in the early innings of experience a quick ROI and our journey with digital transformation save lives customers © Samsara Inc.
Slide 50: Customer Fireside Chat
DHL & NUTRIEN AG Customer Fireside Chat Lara Caimi President of Worldwide Field Operations
Slide 51: Guest Speakers
INTRODUCING OUR Guest Speakers Fred Matthews Kyle Springs Senior Project Manager - Safety Programs Senior Director, Safety and Health Retail © Samsara Inc.
Slide 52: Durable and Efficient Growth
Durable and Efficient Growth Dominic Phillips Chief Financial Officer
Slide 53: ~$1.2B ARR in 8+ years of selling
~$1.2B ARR in 8+ years of selling… ($M) 37% $1,176 $1,102 $1,003 $930 $856 $795 $724 $663 $607 $558 $493 $437 $382 $341 $293 $253 $222 © Samsara Inc. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY21 FY22 FY23 FY24 FY25 See Appendix for definition of ARR.
Slide 54: ...and improved profitability over time
…and improved profitability over time $19 $16 Adj. FCF ($M) $9 $5 ($2) ($6) ($15) ($36) ($38) ($39) ($40) ($43) ($47) ($52) ($50) ($51) ($63) Adj. FCF (124%) (91%) (59%) (47%) (46%) (46%) (38%) (40%) (36%) (25%) (9%) (3%) (1%) 2% 4% 6% 7% Margin © Samsara Inc. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 55: Samsara is operating in rarified air
~300 Samsara is operating in rarified air ~70 US-listed software companies with: 2 ➔ $1B+ ARR ➔ 30%+ revenue growth expected in CY24 ➔ LTM free cash flow positive US-listed $1B+ ARR 30%+ growth software companies & FCF positive © Samsara Inc. See Appendix for methodology.
Slide 56: Reasons for durable growth
Reasons for durable growth 1. Early innings of a large and fast-growing market opportunity 2. Horizontal platform serving a diversified set of industries 3. Large customer momentum 4. Multi-product platform 5. Significant land and expand opportunity remains © Samsara Inc.
Slide 57: Our platform addresses a large, fast-growing market opportunity
01 Our platform addresses a large, 2026 EST. MARKET SIZE fast-growing market opportunity… $200 Billion (‘23-’26 Overall CAGR: 18%) 2023 EST. MARKET SIZE Connected Operations $122 Billion Equipment Site Visibility Workforce Apps Monitoring Connected Operations Equipment Site Visibility Workforce Apps
Slide 58: ...that is underserved by technology solutions
01 …that is underserved by technology solutions 35+ ~10 Other Other Competitors Competitors North America Vehicle Telematics North America Video-Based Safety © Samsara Inc. Samsara Other competitors No solution today See Appendix for methodology.
Slide 59: Horizontal platform serving diversified industries
02 Horizontal platform serving diversified industries 5 of Top-10 6 of Top-10 Waste Management Equipment Rental ARR by Industry 3% 5 of Top-10 5 of Top-10 Chemical Carriers Transportation - LTL © Samsara Inc. See Appendix for methodology. 6 of Top-10 3 of Top-10 Represents ARR as of Q1 FY25. Food Ser
Slide 60: Large customers are our fastest growing cohort
03 Large customers are our fastest growing cohort… $100K+ ARR Customers ARR Mix Avg. ARR per $100K+ 1 ARR customer ($K) x 45% 49% $100K+ ARR 53% Number of $100K+ Customers 2 ARR customers CORE CUSTOMERS $10K–$100K $100K+ ARR Customers 42% = $420 $464 $510 $578 $621 41% 39% ARR ($M) Total Samsara ÷ $
Slide 61: ...and they continue to grow larger over time
03 …and they continue to grow larger over time ARR for largest customers ($M) 10th Largest Customer 25th Largest Customer 100th Largest Customer 3.5x 3.5x 4.6x 4-Year Growth 4-Year Growth 4-Year Growth © Samsara Inc.
Slide 62: Multi-product customer mix continues to increase
04 Multi-product customer mix continues to increase… % of customers with 2+ products % of customers with 3+ products 58% 93% 94% 91% 55% 49% 82% 83% 80% 34% 32% 29% Q1 FY23 Q1 FY24 Q1 FY25 Q1 FY23 Q1 FY24 Q1 FY25 © Samsara Inc. Core Customers ($10K+ ARR) Large Customers ($100K+ARR)
Slide 63: ...leading to multi-product adoption at scale
04 …leading to multi-product adoption at scale… % of multi-product customers using Equipment Monitoring & Other Video-Based Safety $450M+ ARR 50%+ 30%+ y/y growth of Core Customers ($10K+ ARR) Vehicle Telematics 67%+ of Large Customers $450M+ ARR ($100K+ ARR) 30%+ y/y growth © Samsara Inc. Equipment
Slide 64: ...and broad product adoption within largest customers
04 …and broad product adoption within largest customers Vehicle-Based Applications Non-Vehicle Applications 1 Top 25 Customers Industry Vehicle Telematics Video-Based Safety Equipment Monitoring Site Visibility Workforce Apps2 Customer 1 Construction ✓ ✓ ✓ Customer 2 Field Services ✓ ✓ ✓ ✓ Customer
Slide 65: Balanced land and expand contribution drives durable growth
05 Balanced land and expand contribution drives durable growth Expansions New Customers © Samsara Inc. Land Upsell Cross-Sell Represents percentage of total NNACV.
Slide 66: Significant customer acquisition opportunity remains
05 Significant customer acquisition opportunity remains… >325,000 Global Core Customer Opportunity 1,000+ Core customers added in Q1 FY25 2nd largest core customer additions quarter Samsara’s >17,500 logo penetration Core Customers ~5% See Appendix for methodology.
Slide 67: ...along with significant opportunity for customer expansion
05 …along with significant opportunity for customer expansion… + Connected Training + Connected Forms and Workflows + MEM ~1/3 Connected Vehicle + Site Visibility saturation for existing customers + Equipment Monitoring >6x + Connected Vehicle 1x © Samsara Inc. Current ARR Incremental ARR from Increme
Slide 68: ...leading to consistent customer expansion over time
05 …leading to consistent customer expansion over time Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY18 FY19 FY19 FY19 FY19 FY20 FY20 FY20 FY20 FY21 FY21 FY21 FY21 FY22 FY22 FY22 FY22 FY23 FY23 FY23 FY23 FY24 FY24 FY24 FY24 FY25 Customer #1 Customer #2 Customer #3 C
Slide 69: Reasons for efficient growth
Reasons for efficient growth 1. Subscription business model unit economics drive long-term profitability 2. Operating leverage with scale 3. Effectively managing dilution © Samsara Inc.
Slide 70: Subscription model produces strong unit economics
01 Subscription model produces strong unit economics ● 98%+ software subscription business model ● Typically 3-5 year Customer Breakeven Acquisition (CAC subscriptions payback) Lifetime Value LTV:CAC ● Priced per application >8x per month Customer Acquisition Cost (CAC) Customer Lifetime © Samsara I
Slide 71: Improving profitability with scale
02 Improving profitability with scale Near-term leverage Non-GAAP Operating Margin Adjusted Free Cash Flow Margin (% of revenue) Optimization of COGS FY22 FY23 FY24 Q1 FY24 Q1 FY25 FY22 FY23 FY24 Q1 FY24 Q1 FY25 hardware, cloud, cellular, and support costs 7% 0% 2% 3% (1%) S&M Increasing renewal (9%)
Slide 72: Effectively managing equity dilution
03 Effectively managing equity dilution COMPENSATION EQUITY DILUTION PHILOSOPHY Total Compensation 4.4% = 2.7% <2% Salary + FY23 FY24 FUTURE1 Variable Cash POTENTIAL LEVERS TO MANAGE DILUTION + + Compensation mix (cash vs. equity) + Headcount (hiring amount, location, level) Equity + Vesting duratio
Slide 73: Key investor highlights
Key investor highlights 1. Early innings of a large and fast-growing market opportunity 2. Diverse end markets 3. Large customer momentum 4. Multiple products growing fast at scale 5. Significant land and expand opportunities © Samsara Inc. 6. Increasing scale driving operating leverage
Slide 74: Samsara
samsarda
Slide 75: Appendix
Appendix
Slide 76: FCF seasonality
02 FCF seasonality Illustrative Adj. FCF Margin Q1 Q2 Q3 Q4 Operating Margin Low Low High High Collections High Lowest Low High as % of Revenue (Q4 Bookings) (Q4 Bookings) © Samsara Inc. Employee Stock Inflow Outflow Inflow Outflow Purchase Plan Internal expectations based on historical trends.
Slide 77: GAAP to Non-GAAP Reconciliations
Note: Figures (other than %’s) in $000’s GAAP to Non-GAAP Reconciliations FY22 FY23 FY24 Q1 FY24 Q1 FY25 GAAP revenue $428,345 $652,545 $937,385 $204,320 $280,726 Less: Additional week in Q4 FY24 $0 $0 $19,734 $0 $0 Adjusted revenue $428,345 $652,545 $917,651 $204,320 $280,726 Y/Y Revenue Growth 71%
Slide 78: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Note: Figures (other than %’s) in $000’s FY22 FY23 FY24 Q1 FY24 Q1 FY25 GAAP S&M expense $291,209 $370,098 $486,649 $118,955 $147,437 GAAP S&M margin (% of total revenue) 68% 57% 52% 58% 53% Less: Stock-based compensation ($62,548) ($54,072) ($75,203) ($16,320) ($20,
Slide 79: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Note: Figures (other than %’s) in $000’s FY22 FY23 FY24 Q1 FY24 Q1 FY25 GAAP operating loss ($353,848) ($259,455) ($323,347) ($75,824) ($65,997) GAAP operating margin (83%) (40%) (34%) (37%) (24%) Add: Stock-based compensation $238,238 $181,424 $251,190 $56,793 $72,1
Slide 80: Definitions / Methodology
Definitions / Methodology Annual Contract Value (ACV) Large Customer We define ACV as the annualized value of a customer's total contract value for We define a large customer as an entity that has an ARR of greater than $100,000 at Samsara products as of the measurement date. the end of a reporting per
Slide 81: Definitions / Methodology (Cont'd)
Definitions / Methodology (Cont’d) Equity Dilution “Samsara is operating in rarified air” Slide Methodology We calculate equity dilution as 1 – (prior period Fully Diluted Shares Outstanding / Analysis uses CapIQ data as of June 24, 2024 and applies a screen on US-based current period Fully Diluted Sh
Slide 82: Definitions / Methodology (Cont'd)
Definitions / Methodology (Cont’d) “…that is underserved by technology solutions” Slide Methodology “…along with significant opportunity for customer expansion…” Slide Methodology Market size and share statistics for North America Vehicle Telematics and North Calculation of ARR expansion opportunity b