Samsara Inc. (NYSE:IOT) Q3 2023 Earnings Call Transcript

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Matt Swanson: Yes, thanks guys. This is obviously Matt Swanson on for Matt Hedberg. I was just wondering if you could kind of net, net the macro impact for us? We’ve talked a lot about ROI in the prepared remarks. Obviously, the results were showing a lot of durability, but I mean, would you describe parts of this macro as tailwind, I guess? And then how are you thinking about the macro in that Q4 guidance, but also in that early color for 2024?

Dominic Phillips: I would just say, again, we’re really pleased with the results for Q3 and the momentum in the business right now that customer demand has remained strong. Again, our pipeline, our conversion and win rates have been really strong. And so, we’re very pleased with the results and obviously we reflected that in Q4 as we raised our guidance for that quarter and for full-year. We do recognize that there’s a lot of macro uncertainty, and so we want to make sure that we are given a little bit of color into next year, based on how we’re thinking about things, as well as going through some different scenario analysis and we feel good with where the, kind of consensus FY 2024 revenue growth rates are right now in the high 20s percent that, you know, we forget about that, you know, based on what we’re seeing right now.

Sanjit Biswas: And if I can just add one or two things. While we are seeing customers very much focused on cost reductions and efficiency, in the world of operations, these are evergreen problems. They’re always trying to find ways to be safer, reduce their costs of insurance. They’re trying to find ways to be more efficient, whether that’s in terms of how they serve their customers or how much they spend on fuel, and then same thing around sustainability. So, while there is a lot that’s front of mind because of the current macro with our customers, I’ve just been spending a lot of time out in the field spend time with these customers. They’re saying these are fundamental challenges in operations, and that’s why they’re digitizing. They’re trying to move from pen and paper to a more modern platform to get better visibility into these kinds of problems.

Matt Swanson: That’s super helpful. And then it was great to see the success that you had upmarket for both the 100,000 customers, as well as the growing percentage of ARR. Is there any difference, I guess on kind of the other side of the market in terms of macro impact or anything else for the smaller deal sizes you ?

Dominic Phillips: No. I think, again, the same problems that the large customers are grappling with, same with kind of our mid-market customers as well. They’re looking for ways to reduce cost, lower fuel costs or insurance premiums or, you know, reduce accidents, increasingly meet their sustainability goals. You know, I’d point you to just the overall ARR mix coming from 100,000 plus customers continues to move up, but it’s moving up, kind of like a percentage point every quarter, which means that the customers being below a 100,000 are also growing really, really quickly and driving a lot of our overall growth. We’re just seeing a little bit more growth from the large customer segment.

Matt Swanson: I appreciate the color. Congrats on the quarter.

Dominic Phillips: Thank you.

Mike Chang: This concludes the question-and-answer portion. Thank you all for attending our Q3 fiscal year 2023 earnings call. If you have any follow-up questions, you can email us at ir@Samsara.com. Thanks again. Bye, everyone.

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