In addition to increasing our topline guidance, we are also improving our FY2024 non-GAAP operating margin guidance to approximately negative 1% or an implied operating income improvement of $18 million at the midpoint of guidance, and we are raising our FY2024 non-GAAP EPS guidance to between $0.05 and $0.06. And finally, we included a few additional modeling notes in our shareholder letter. So to wrap up, we are pleased with our performance in Q3 and our outlook for the remainder of the year. We are digitizing the world of physical operations and helping our customers become safer, more efficient, and more sustainable. With our markets, products and customer focus, we believe we are well positioned to continue delivering durable and efficient growth.
And with that, I’ll hand it over to Mike to moderate Q&A.
A – Mike Chang: 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 Michael Turrin at Wells Fargo followed by Matt Hedberg at RBC.
Michael Turrin: Hey. Great. Appreciate you taking the question and again, just congrats on the clean results. In terms of the international opportunity, I want to spend a minute there, there was a commentary on the net new ACV there coming in stronger than historical. Where are you? Can you just help level set where you are in terms of scaling some of those efforts? How we should think about the investments required to enter into new territories and how you think about the potential mix there overseas over time?
Dominic Phillips: Yes. So look, we’re very focused in North America, U.S., Canada, Mexico, and then in some core markets within Western Europe. We view this as a really important frontier for future growth, and so we’re investing accordingly. These are really large markets and there are a lot of similar dynamics as what we see in the U.S. in terms of physical operations customers with not a lot of visibility into their operations. And so again, we’re very focused on these markets over the long run and we’re going to continue to invest and monitor results and productivity and efficiency and that will really gauge how we invest going forward.
Michael Turrin: Okay. And just on the quarterly record in terms of large customer activity. Is there any commonality or anything you can point to in terms of product? There’s some good commentary on the diversification towards non-vehicle and smart equipment over a 100 million, but just wondering if there’s anything you’d call out in terms of the large deal momentum? Thanks.
Dominic Phillips: Yes. It’s Dominic again. Look, I just think it’s really just consistent execution. We’ve really been investing in the Enterprise segment for many years now, and we’re just – we’re seeing really good consistent execution. I call out and I mentioned in the prepared remarks that about 60% of those 100k plus additions were expansions to existing customers. So within the large enterprises we’re seeing more expansion net new ACV, but also when I look at the large deals in the quarter, there were a lot of new logos landing over a $1 million as well. So really just good balanced new customer and expansion mix.
Mike Chang: All right. Our next question comes from Matt Hedberg at RBC, followed by Keith Weiss at Morgan Stanley.
Matthew Hedberg: Hey guys. Can you hear me?
Dominic Phillips: Yes. We got you.
Matthew Hedberg: Great. Congrats from me as well. The $1 billion threshold and the profitability are super exciting milestones. I guess following up on the large deal success, it’s great to hear the equipment monitoring is also over $100 million [now too] and growing rapidly. I’m curious, on some of the [New Orleans], are you seeing high – fairly high attach for monitoring on sort of net new, I imagine as part of a lot of upsells. But are you starting to see even more sort of new customers come in and add equipment monitoring right out of the gate?
Dominic Phillips: Maybe I’ll start and then Sanjit, if you have some color. So there were several large deals in the quarter. We called out specifically, there were three new logos over $1 million each. All three of those included equipment monitoring. So I mean, that’s great to see. Historically, it really did come into play more as an expansion, but in some of these larger customer transactions where they’re really looking to Samsara as a system of record across their operations, they’re really examples of taking a lot of the platform upfront.
Sanjit Biswas: Yes. Matt, if I could just add one or two things. We mentioned some airline customers. For them it’s primarily an equipment monitoring use case where they have specialized pieces of equipment out on the airfield under the wing, and they’re trying to improve utilization and understand where that equipment is. So that’s a great example of what an equipment monitoring – can look like. And we do see that quite often.
Matthew Hedberg: That’s fantastic. Thank you for that. And then Dom, one for you. Obviously a good quarter, you raised guidance for the year. You didn’t comment on fiscal 2025. And I’m curious as we sort of start to think about sharpening our pencils for next year on modeling assumptions. Are there any details that you can share on, maybe just guideposts or how we should think about fiscal 2025 initially?
