Samsara (US:IOT)2024-03-26 20:25Cash and Investments - The company had $823.8 million in cash, cash equivalents, and short-term and long-term investments as of February 3, 2024, with a hypothetical 100 basis point change in interest rates affecting the market value by $5.3 million[404] - As of January 28, 2023, the company held $803.0 million in cash, cash equivalents, and short-term and long-term investments, with a hypothetical 100 basis point change in interest rates impacting the market value by $3.4 million[405] - The company's cash equivalents and marketable debt securities are subject to market risk due to interest rate fluctuations, with no investments made for trading or speculative purposes[404] - Total cash, cash equivalents, and restricted cash as of February 3, 2024, amounted to $154.7 million, compared to $223.8 million as of January 28, 2023[493] - The company's available-for-sale marketable debt securities had an estimated fair value of $688.3 million as of February 3, 2024, with $412.1 million due within one year and $276.2 million due in one to three years[494][496] - Total cash equivalents and restricted cash as of February 3, 2024 were $95.579 million, compared to $193.157 million as of January 28, 2023, showing a significant decrease[500] - Total marketable debt securities as of February 3, 2024 were $688.292 million, up from $602.293 million as of January 28, 2023[500] Revenue and Financial Performance - The company's revenue is primarily denominated in U.S. dollars, minimizing foreign currency exchange risk, and a hypothetical 10% change in the U.S. dollar's value would not materially impact consolidated financial statements[406] - Revenue grew significantly to $937.4 million in 2024, up from $652.5 million in 2023, representing a 43.6% increase[422] - Net loss widened to $286.7 million in 2024 compared to $247.4 million in 2023, an increase of 15.9%[422] - Total revenue for the fiscal year ended February 3, 2024 was $937.385 million, up from $652.545 million for the fiscal year ended January 28, 2023[513] - Subscription revenue for the fiscal year ended February 3, 2024 was $919.362 million, compared to $639.533 million for the fiscal year ended January 28, 2023[513] - Total revenue for the fiscal year ended February 3, 2024, was $937.4 million, with $821.9 million from the United States and $115.5 million from other regions[560] Expenses and Costs - Research and development expenses increased to $258.6 million in 2024 from $187.4 million in 2023, up 38.0%[422] - Sales and marketing expenses grew to $486.6 million in 2024 from $370.1 million in 2023, a 31.5% increase[422] - Advertising and promotional costs were $59.6 million, $47.1 million, and $41.9 million for fiscal years 2024, 2023, and 2022, respectively[468] - Impairment charges for long-lived assets were $4.8 million, $1.1 million, and $1.9 million for fiscal years 2024, 2023, and 2022, respectively[470] - Cost of revenue includes amortization of IoT device costs, cellular-related costs, third-party cloud infrastructure expenses, and customer support costs, among others[458] - Research and development expenses are charged as incurred, focusing on new features and products for the Connected Operations Cloud, with internal-use software development costs capitalized when criteria are met[462] - Capitalized internal-use software development costs for the fiscal year ended February 3, 2024 were $9.715 million, compared to $6.270 million for the fiscal year ended January 28, 2023[506] Foreign Currency and Inflation - The company's operating expenses are denominated in various currencies, primarily the U.S. dollar and British pound, exposing it to foreign exchange rate fluctuations[406] - The company has not entered into any hedging arrangements for foreign currency risk but may consider doing so in the future[406] - The company does not believe inflation has had a material impact on its financial statements, but significant inflationary pressures could affect future costs and financial performance[407] Stock-Based Compensation - Stock-based compensation expense increased to $237.1 million in fiscal year 2024, up from $177.5 million in fiscal year 2023[430] - Stock-based compensation is measured based on the fair value of awards on the grant date, including stock options, RSUs, and shares under the 2021 ESPP[471] - The fair value of employee stock options and shares under the 2021 ESPP is determined using the Black-Scholes model, with compensation expense recognized over a four-year vesting period for stock options and a one-year offering period for ESPP shares[472] - The fair value of RSUs granted post-IPO is based on the closing price of Class A common stock on the grant date, with expense recognized over a four-year vesting period for RSUs granted through fiscal year 2023[473] - The contractual term of stock options and RSUs granted prior to IPO is 10 years and 7 years, respectively[474] - Total stock-based compensation expense for the fiscal year ended February 3, 2024 was $237.1 million, with RSUs accounting for $220.7 million[545] - Unrecognized stock-based compensation expense related to outstanding unvested stock options for employees was approximately $2.2 million as of February 3, 2024, expected to be recognized over 0.4 years[535] - As of February 3, 2024, unrecognized stock-based compensation expense related to outstanding unvested RSUs was approximately $447.1 million, expected to be recognized over a weighted-average period of 1.3 years[537] - The balance of RSUs as of February 3, 2024 was 35,371,274 shares with a weighted-average grant-date fair value of $15.17[537] - The Company's unrecognized stock-based compensation expense related to the 2021 ESPP as of February 3, 2024 was approximately $8.8 million, expected to be recognized over 0.8 years[541] Deferred Revenue and Performance Obligations - Deferred revenue, current, rose to $426.4 million in 2024 from $300.1 million in 2023, a 42.1% increase[421] - Deferred revenue increased by $138.9 million during fiscal year 2024, reaching $112.9 million at the end of the period[430] - Deferred revenue as of February 3, 2024 was $565.486 million, up from $426.565 million as of January 28, 2023[513] - Remaining Performance Obligations (RPO) as of February 3, 2024 were $2,001.2 million, with $948.1 million expected to be recognized over the next 12 months[514] - Deferred revenue primarily consists of prepayments for future periods and unearned portions of monthly-billed subscription fees, with the current portion expected to be recognized within one year[456] Assets and Liabilities - Total assets increased to $1,734.8 million in 2024 from $1,617.0 million in 2023, reflecting a growth of 7.3%[421] - Long-term investments surged to $276.2 million in 2024 from $113.1 million in 2023, a 144.2% rise[421] - Total stockholders' equity decreased to $915.1 million in 2024 from $938.0 million in 2023, a 2.4% decline[421] - Total stockholders' equity as of February 3, 2024 was $915.1 million, compared to $938.0 million at the beginning of the fiscal year[427] - Operating lease right-of-use (ROU) assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments, with ROU assets representing the company's right to use an underlying asset and lease liabilities representing the obligation to make lease payments[445] - Operating lease liabilities as of February 3, 2024 were $101.946 million, with future minimum lease payments totaling $118.679 million[510] - Long-lived assets, net, as of February 3, 2024, were $136.9 million, with $129.9 million in the United States and $7.0 million in other regions[561] Audits and Financial Reporting - The company's financial statements for the fiscal years ending February 3, 2024, and January 28, 2023, were audited and found to be in conformity with U.S. GAAP[411] - The company's internal control over financial reporting as of February 3, 2024, received an unqualified opinion from the auditors[412] - The company adopted ASU No. 2016-13 effective January 29, 2023, which introduced a forward-looking expected loss model for recognizing credit losses, with no material impact on financial statements[487] - The company is evaluating the impact of ASU No. 2023-07, which requires enhanced segment reporting disclosures, effective for the fiscal year ending February 1, 2025[488] Taxes and Valuation Allowances - The Company's loss before provision for income taxes for the fiscal year ended February 3, 2024 was $283.4 million, with U.S. losses at $298.2 million and foreign income at $14.8 million[546] - The Company's valuation allowance increased by $128.7 million during the fiscal year ended February 3, 2024[549] - As of February 3, 2024, the Company had U.S. federal net operating loss carryforwards of approximately $1,866.4 million, with $1,814.2 million carrying forward indefinitely[549][550] - The Company's deferred tax assets as of February 3, 2024 were $600.9 million, with a valuation allowance of $455.3 million, resulting in net deferred tax assets of $145.7 million[547] - The Company's effective income tax rate for the fiscal year ended February 3, 2024 was -1.2%, primarily due to a valuation allowance on U.S. deferred tax assets and stock-based compensation adjustments[546] - The company's U.S. federal and California research and development credit carryforwards are $26.1 million and $15.7 million, respectively, available to offset future income taxes[551] - Unrecognized tax benefits as of February 3, 2024, totaled $16.6 million, up from $9.8 million in the previous year[553] Commitments and Litigation - The company's non-cancelable purchase commitments as of February 3, 2024, total $352.2 million, with $161.97 million due in 2025, $70.48 million in 2026, $79.29 million in 2027, $37.44 million in 2028, and $2.997 million in 2029[517][518] - The company has $17.7 million in letters of credit outstanding as of February 3, 2024, primarily for office space, down from $23.1 million in the previous year[517] - The company committed to spend at least $275.0 million on cloud infrastructure services between July 2022 and June 2027, with $1.8 million in credits earned as of February 3, 2024[518] - The company settled a lease-related litigation in January 2024, resulting in a $68.7 million charge, including a $60.0 million cash payment and $8.7 million for the forgiveness of a previously drawn letter of credit[521] Shareholder Equity and Stock Issuance - As of February 3, 2024, the company had 200,989,931 shares of Class A common stock and 344,983,598 shares of Class B common stock issued and outstanding[529] - The company reserved 126,734,143 shares of common stock for future issuance as of February 3, 2024, including 68,321,018 shares available for future grants under the 2021 Equity Incentive Plan[530] - Under the 2021 ESPP, 1,837,405 shares of Class A common stock were purchased in the fiscal year ended February 3, 2024, resulting in net cash proceeds of $22.5 million[540] Credit Losses and Allowances - The company recorded an allowance for credit losses of $7.8 million as of February 3, 2024, up from $7.5 million in the previous year[442] - The company adopted ASU No. 2016-13 effective January 29, 2023, which introduced a forward-looking expected loss model for recognizing credit losses, with no material impact on financial statements[487] Depreciation and Amortization - Depreciation and amortization expenses totaled $15.5 million in fiscal year 2024, compared to $11.8 million in fiscal year 2023[430] Accounts Receivable and Inventories - Accounts receivable, net decreased by $46.4 million during fiscal year 2024[430] - Inventories increased by $18.3 million during fiscal year 2024, compared to a decrease of $7.5 million in the previous year[430] Connected Devices and Cloud Services - Total connected device costs as of February 3, 2024 were $334.8 million, up from $276.9 million as of January 28, 2023[503] - The company committed to spend at least $275.0 million on cloud infrastructure services between July 2022 and June 2027, with $1.8 million in credits earned as of February 3, 2024[518] Employee Benefits - The company provides a 401(k) plan with dollar-for-dollar matching contributions up to 4% of eligible compensation, with immediate vesting for participants[485] Fair Value Measurements - The company's fair value measurements follow a three-level hierarchy, with Level 1 being the highest priority for unadjusted quoted prices in active markets[497][498][499] Net Loss and Earnings Per Share - Net loss for the fiscal year ended February 3, 2024 was $286.7 million, compared to $247.4 million in the previous year[430] - Basic and diluted net loss per share improved to $0.54 in 2024 from $0.48 in 2023[422] - Net loss attributable to common stockholders for the fiscal year ended February 3, 2024, was $286.7 million, with a net loss per share of $0.54[556] Subscription Revenue and Contracts - Subscription revenue is recognized over the subscription period, typically 3-5 years, with contracts generally non-cancelable and non-refundable, except for public sector customers subject to annual budget cycles[451] Strategic Investments - Strategic investments in non-marketable securities are measured at cost, less impairment, with adjustments recognized in "Interest income and other income (expense), net"[448] Deferred Commissions - Deferred commissions as of February 3, 2024 were $177.6 million, compared to $140.2 million as of January 28, 2023[503] Fiscal Year Details - The company's fiscal year 2024 consisted of 53 weeks, with the fourth quarter comprising 14 weeks[434] Revenue Recognition - The company's revenue recognition involves significant judgment in determining whether connected devices and cloud-based subscriptions represent combined performance obligations, which was identified as a critical audit matter[416][417]