Samsara posted fiscal second-quarter 2027 revenue of $508.4 million, a 30% increase from the prior-year period, driven by broader adoption among enterprise clients and faster expansion in the transportation sector and Mexico. Samsara, headquartered in San Francisco, reported on Thursday that annualised recurring revenue totalled $2.125 billion for the quarter closing 1 August, reflecting a 30% rise compared with the prior-year period. Annual recurring revenue from new sources reached $134.1 million, reflecting a 28% increase. Speaking on an earnings call with analysts following the close of trading, Samsara co-founder and CEO Sanjit Biswas described the company's latest quarterly performance as reflecting sustained and efficient expansion, with annual recurring revenue reaching $2.1 billion and year-over-year growth holding at 30% for the third straight quarter. According to Biswas, enterprise-level clients remain a key growth driver for the company, with uptake of Samsara's newest AI-powered tools having quadrupled over the preceding two months. The Connected Operations platform from Samsara integrates telematics, video safety tools, equipment tracking, maintenance capabilities, and related applications tailored to trucking, logistics, construction, field services, and other sectors with large-scale physical workflows. The firm's transport division recorded steady growth over the period. The transportation sector ranked as Samsara's second-largest contributor to net new annual contract value, trailing only field services, with its year-over-year expansion rate posting sequential gains for a third straight quarter. The government sector also gained momentum, recording its second-strongest net new ACV proportion in the company's history. The freight sector continues to present a considerable growth opportunity, according to company leadership. On an earnings call, Samsara leadership put the proportion of unconnected commercial vehicles across North America at roughly half, with around 85% lacking an AI-equipped dash camera. Growth in Mexico was also gathering pace. Mexico posted its largest portion of net new annual contract value in five quarters, with the firm reporting that year-on-year growth in that metric accelerated for the second quarter running. Fleet operators in Mexico appear to be adopting Samsara's technology partly in response to safety and security concerns. Among the safety measures highlighted by Biswas were emergency alert buttons and systems capable of disabling vehicles remotely. Biswas pointed to Grupo Trayecto, a large Samsara transportation client operating in Mexico, as evidence that the company's profile is growing through its engagement with substantial, operationally complex businesses. Headquartered in Monterrey, Mexico, Trayecto operates as the nation's leading freight carrier, running a fleet of over 4,000 trucks and 10,000 trailers supported by approximately 4,000 drivers. A notable portion of Samsara's revenue expansion stems from established enterprise clients broadening their adoption of the platform. By the close of the quarter, Samsara had grown its base of accounts with annual recurring revenue above $100,000 to 3,605, following a record-breaking net addition of 242 such clients in that period. Those clients generated $1.3 billion in annual recurring revenue, a 38% increase from the prior year, and their share of total company ARR grew to 63% from 59% twelve months earlier. At the close of the quarter, 210 clients were generating over $1 million in annual recurring revenue, with 20 new accounts at that threshold joining during the period — the highest such intake on record. Annual recurring revenue from that customer segment topped $500 million, posting year-over-year expansion of over 50% for the third straight quarter. The company reported that its client base is increasingly deploying a broader range of its products at the same time. Among Samsara's top-tier clients — those with annual recurring revenue above $100,000 — nearly all, at 96%, draw on a minimum of two products, with nearly three-quarters relying on three or more. For the third quarter running, newly acquired contract value drew more than one-fifth of its total from recently introduced product lines. Among the firm's ten highest-value net new ACV deals, eight featured a newly launched product. The company posted GAAP operating income of $4.9 million, a turnaround from the $26.6 million operating loss recorded in the prior-year period. The GAAP operating margin rose to 1%, up from a negative 7% previously. The company's non-GAAP operating income climbed to $106 million from $59.7 million, with the corresponding non-GAAP operating margin gaining six percentage points to reach 21%. Free cash flow totalled $64.7 million for the period, up from $44.2 million in the prior year, while GAAP earnings per share stood at three cents. This outcome represented the company's fourth straight quarter of achieving GAAP profitability for Samsara. Samsara has revised its fiscal 2027 free cash flow margin outlook downward by roughly 100 basis points relative to fiscal 2026, citing the need for additional IoT hardware to meet demand, a planned expansion of inventory reserves, and higher supply chain costs anticipated through the latter half of the year. Samsara projected third-quarter revenue in the range of $514 million to $516 million, pointing to approximately 24% growth compared with the same period a year earlier. For the full fiscal year 2027, the company has projected total revenue of between $2.043 billion and $2.047 billion, reflecting roughly 26% growth, alongside a 21% non-GAAP operating margin and diluted non-GAAP earnings per share in the range of 76 to 78 cents. The company anticipates maintaining GAAP profitability through the third quarter and across the full fiscal year.
