Samsara Inc. Q3 FY2026 earnings call

• Samsara delivered strong growth with $1.75 billion in ARR, 29% year-over-year growth. - Achieved the first quarter of GAAP profitability. - Added 219 customers with $100,000+ ARR and 17 customers with $1 million+ ARR, both quarterly records. - Highlighted new customers like First Student and a large mechanical contractor, showcasing the impact of Samsara's products. - Launched new AI-powered coaching features including Automated Coaching, Group Coaching, and Workflow Automations. - Emphasized international growth opportunities with large markets, less penetration, and partnerships such as with Allianz and Element Fleet Management. - Demonstrated strong performance across frontier markets with 20% of net new ACV from emerging products, including Asset Tags growing over 400% year-over-year.

Samsara ended Q3 with $1.75 billion in ARR, growing 29% year-over-year. They added 219 customers with $100,000 plus in ARR, a quarterly record, and these customers now contribute more than $1 billion of ARR, growing 36% year-over-year. Additionally, 17 $1 million-plus ARR customers were added, tying a quarterly record, and they contributed more than 20% of total ARR. Revenue for Q3 was $416 million, growing 29% year-over-year. Over 95% of $100,000-plus ARR customers subscribe to 2 or more products, and the company achieved a dollar-based net retention rate of approximately 115%.

• For Q4, revenue is expected to be between $421 million and $423 million, representing 22% year-over-year growth (21% in constant currency); non-GAAP operating margin is expected to be 16%; non-GAAP EPS is expected to be between $0.12 and $0.13. - For full year FY '26, revenue is expected to be between $1.595 billion and $1.597 billion, growing 28% year-over-year; non-GAAP operating margin is expected to be 16%; non-GAAP EPS is expected to be between $0.50 and $0.51.

• Larger deals have longer and less predictable sales cycles, which could introduce variability in quarterly ARR results. - International market expansion involves challenges due to being earlier in the digitization journey compared to the U.S.

Q: Sanjit, the large customer momentum, really standing out the past couple of quarters here. Can you just speak to what's enabling that from a product perspective and how significant a competitive advantage that is becoming for Samsara here?

A: Sure. So we've been investing in the sort of scale and security and infrastructure needed to serve large customers for a number of years, both on the R&D and the go-to-market side. I would say on the product side, it's our ability to just manage these massive amounts of data, also customize the product to the needs of these large complex organizations and their org structures. And then on the go-to-market side, we really operate as a true partner to these companies, understanding their business, figuring out how to unlock the most value for them, and then we tailor the use of the product to meet those needs. I think the combination of those 2 has been the big unlock, and we're seeing it come through in the numbers now.

Q: Aleksandr Zukin: Sanjit, maybe for you. The contribution from new products, that jumped to 20% of net new ACV from 8% last quarter. Maybe just dig a little bit deeper of kind of what went better or what's outperforming your expectations to drive that kind of inflection.

A: Sure. So we launched a number of new products at the customer conference earlier this year, and I think it took a few months for customers to trial them out, see how they worked. And it's been great to see the contribution early on from these new products. So that 20% up from 8%, I think, reflects growth across a number of different products. So it was no single product but really kind of balanced across a number of different products.

Q: Keith Weiss: Congratulations on a really solid quarter. I wanted to dig in on sort of the 20% from emerging products. It seems like with the broader product portfolio that you guys have put out there, now you're seeing traction across multiple products. You're seeing those multiproduct deals really hit. Any sense you could give us on kind of the latent opportunity, if you will, within the customer base? Like how expansive could these products be within existing customers? How much further can you go in terms of growing existing customers with the expanded product portfolio?

A: Yes. I mean most of our net new ACV or slightly more of it generally comes from expansions to existing customers, even within our core products, and so that's definitely also the case in these emerging products. We're really just scratching the surface. Again, these are products in totality that have been rolled out going back to the beginning of last year, but they're really allowing us to land larger in some of these customers. We called out that 9 of the top 10 net new ACV deals included 3 or more products. So that includes things outside of our core products. And that just wasn't the case before the beginning of last year, and so we're really seeing good momentum from the emerging products. And Sanjit said, it's not any one given product. We're really seeing good uptake across the board.

Q: James Wood: Congrats on my end. Sanjit, the -- I just wanted to ask about the new tariffs that went into effect in November on foreign trucks and truck parts. Just are you seeing this shape customer demand one way or the other? Like does this drive more companies to turn to Samsara to extend lifespan of assets owned?

A: Yes. So Derrick, I was out on the road a lot last quarter, and I asked many of our customers what they thought about the tariffs, how it impact their operations. And really, they didn't think it was going to have much of a change in how they were behaving. You mentioned extending asset life spans. That is something we've seen interest in really for the last several years, which is these trucks have been getting more and more expensive over time. But they're also possible to run for a few more years if you maintain them well. So we launched Connected Maintenance, for example. We have a lot of fault code insights and other AI that we're applying to helping extend asset lifespan. So that is, I think, more of an evergreen thing that we're seeing in the customer base, where they're always trying to figure out can we run these assets a little bit longer by maintaining them in a smarter way but not linked to the recent tariff needs at all.

Q: Mark Schappel: Sanjit, could you share more detail on what you're currently seeing in the telematics market, including any evidence of an accelerating replacement cycle? And then also, too, along those lines, is it fair to assume that you're still seeing high win rates versus some of the legacy providers there?

A: Yes, absolutely. So I would say telematics, it's part of the market that's been around for some time, really since probably the late '90s, early 2000s. So we are seeing sort of aging incumbents that haven't been able to keep up. Customers are kind of looking for other solutions, and we're very well positioned for that. So that's really this kind of modernization going on. And then more broadly, safety is driving a lot of these new expansions and then new wins. So that's an area where we've seen a lot of strength. And the legacy telematics vendors that have been truly point solutions, they've either partnered for that or have implemented kind of basic safety products. So what we're seeing in the market is people are looking for a broader platform, something that's modern, something where they can really put multiple applications up and get a system of record going. That's different than the kind of telematics point solutions that were common about 20 years ago.