And finally, please see the additional modeling notes in our Shareholder Letter. So, to wrap-up, we are pleased with our Q4 and full year FY ’24 performance. This was a year of accelerating growth at a larger scale, while continuing to drive more operating leverage. We are digitizing the world of physical operations and helping our customers become safer, more efficient and more sustainable. With our large markets, products and customer focus, 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 will 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 Keith Weiss with Morgan Stanley. Followed by Matt Hedberg with RBC.
Keith Weiss: Excellent. Thank you guys for taking the questions, and congratulations on a really outstanding quarter. And I guess that’s the question. Accelerating net new ACV growth growing only almost 40% in the net new component. And frankly, I mean, I’ve spent the week at our Morgan Stanley TMT Conference, and the spending environment sounds a little bit better, but not that much better, right, at all. The macroenvironment doesn’t seem that much better. So, can you help us explain what was the unlock within Samsara over the last couple of quarters that has enabled you guys to accelerate and get to these levels of growth, which we’re frankly just not seeing anywhere else in the software landscape right now.
Dominic Phillips: Yeah. So, maybe I’ll take the first part of that. But again I think it comes down to the fact that we’re selling into a slightly different budget than a lot of the other software companies. We’re selling into the operations budget, which tends to be more resilient. And also, our solutions are used to drive real hard ROI. So, customers are deploying our software and they’re using it to find cost savings and to drive more safety within their organizations. And then, the other thing I would point out even internally as we’ve discussed now for several quarters, we have made a concerted effort to add more sales capacity into the business, and that sales capacity clearly came online and continued to ramp and drove more overall productivity. And so, we’re pleased with both of those results.
Keith Weiss: Got it. And then maybe as a follow-up. On the back of that, how should we think about the expansion of sales capacity into the forward fiscal year?
Dominic Phillips: So, I’d say we — our ending headcount, we grew at just under 30% in FY ’24. I would say that our headcount in FY ’25 will grow at least at a similar rate. Again, we’ve got big market opportunity. And so, we’re still aggressively hiring into FY ’25, similar to previous years about half — maybe just under half of our overall net headcount additions will go into sales and marketing, and a portion of that is quota capacity that will lead to investments for future growth.
Keith Weiss: Outstanding. Congratulations guys.
Mike Chang: Our next question comes from Matt Hedberg with RBC, followed by Alex Zukin with Wolfe.
Matt Hedberg: Great. Thanks for taking my questions guys. I offer my congrats as well, really strong year here. The other thing that stood out to me was growth in large customers. And I guess, can you put a finer point on what’s driving? Like, what are the most important factors driving the strength and how durable do you think that success is with these large customers?
Sanjit Biswas: Hey, Matt, this is Sanjit. I would say, if you think back to my prepared remarks, we focus on large complex physical operations companies. They have a lot of real world operational challenges and problems. Those relate to safety, so operational safety out on the frontlines, they’re trying to reduce risk in other words. They are finding ways to be more efficient in terms of how they operate their business, how they drive their routes, how they operate their assets, and they’re trying to figure out to be more sustainable. These are evergreen problems, and this is a very, very large market opportunity. We’re talking about a $60 billion TAM; it’s growing 20% year-over-year. And I would say these customers, largely speaking, they’re sophisticated, but they’re in these early innings of digitization. So, we think that this can go on for some time.
