Samsara Inc.

What does it take to make the world operate better? To get a gallon of milk from the dairy to your table, it takes tracking hundreds of miles at the perfect temperature. To respond quickly to power outages, it takes products built for the way you work that put it all on one screen. To improve driver safety while keeping the roads clear, it takes innovation that's easy to use with real-time insights at every turn. To save millions of gallons of fuel a year for the world, it takes making sustainability work for your bottom line. To see everything in your operations, it takes a true platform with artificial intelligence built in and an ecosystem of partners to help you see more and do more. to build a safer, more efficient, more sustainable world. It takes Samsara's Connected Operations Cloud to ride along with you every mile of the journey, save millions in operational costs, and empower everyone to stay safe. So the people at the heart of your operations have the tools to do what it takes. Let's take operations to a whole new level.

Good afternoon and welcome to Samsara's second quarter fiscal 2023 earnings call. I'm Mike Chang, Samsara's Vice President for Corporate Development and Investor Relations. Joining me today are Samsara co-founder and Chief Executive Officer Sanjit Biswas and our Chief Financial Officer Dominic Phillips. In addition to our prepared remarks on this call, additional information can be found in our shareholder letter, press release, investor presentation, and SEC filings on our Investor Relations website at investors.samsara.com. The measures we'll discuss today include forward-looking statements. Actual results may differ materially from those contained in the forward-looking statements and are subject to risks and uncertainties described more fully in our SEC filings. Any forward-looking statements that we make on this call are based on assumptions as of today, August 31st, 2022, and we undertake no obligation to update these statements as a result of new information or future events unless required by law. During today's call, some of our discussions will include our second quarter fiscal 2023 financial results. We'd like to point out that the company reports non-GAAP results in addition to and not as a substitute for or superior to financial measures calculated in accordance with GAAP. All financial figures we will discuss today are non-GAAP except for revenues and revenue growth. Reconciliations of GAAP to non-GAAP financial measures are provided with a press release and investor presentation. We'll make opening remarks, dive into highlights for Q2, and then open up the call for Q&A. With that, I'll hand over the call to Sanjit.

Thanks, Mike. And thank you, everyone, for joining us today. We delivered another strong quarter, surpassing $660 million of ARR, growing more than 50% year over year. We continued our large customer momentum and ended Q2 with nearly 990 customers with ARR over $100,000. While we saw strength in the business, we recognize that Samsara is not insulated from the current macroeconomic environment. Throughout the quarter, customer demand remained at historically consistent levels, but we saw elongated sales cycles compared to periods of stronger economic growth. Despite macroeconomic headwinds, we continue to see strong demand because of three core themes. First, our customers are the critical infrastructure that power the global economy. They span diverse industries that include some of the largest food distributors, chemical companies, energy utilities, freight carriers, and municipalities. Many of them have been around for over half a century and have survived challenging economic cycles. Second, our customers are challenged with rising inflation and interest rates, disrupted supply chains, tight labor markets, and geopolitical risk. They need solutions that provide a rapid return on investment. Samsara's Connected Operations Cloud is a deflationary lever that helps our customers control costs by running smarter, safer, and more efficient operations. And third, Samsara is becoming the system of record for physical operations. Customers are using our cloud as a command center for their day-to-day operations. At Samsara, we focus on building relationships with our customers, solving their problems, and delivering a great customer experience. At the center of this process is the Samsara customer feedback loop, where we listen and respond to their greatest needs. In Q2, we hosted our inaugural Samsara Investor Day and our first customer conference, Samsara Beyond. We brought hundreds of our customers together to discuss the future of physical operations, to learn from other customers about how they can use our connected operations cloud to unlock value for their businesses and to network. Many of them shared what a unique and beneficial learning experience it was for them to connect with other operations leaders digitizing their businesses. So we're excited to make this an annual event. During the conference, we also celebrated the Connected Operations Award winners. These awards recognize organizations that have transformed their operations and are seeing tremendous ROI. As you can see from this list, there was a lot to celebrate. Let's double click on our Digital Transformation of the Year Award winner, Arterra. For context, supply chain shortages mean that our customers have to do more with less. Trailers are hard to come by, and industrial equipment is expensive. We use data to provide visibility into existing equipment and assets so customers can control their costs and optimize usage. Many of our customers haven't had access to this kind of data before. Arterra is a leading provider of critical infrastructure services. Our connected operations cloud help them identify inefficiencies in their equipment usage, unlocking $10 million of cash flow to invest in priority areas. In addition to helping Arterra unlock efficiencies, our cloud increased the safety of their operations. Samsara helped them decrease accidents by 40% year to date. Arterra is just one of many outstanding examples of the power of digitization. Customers across industries and geographies are achieving amazing things with our connected operations cloud. Our customers know they have to continue investing in digital transformation. It is a proven way to fight inflation. Our offerings are becoming a must have for companies looking to streamline their operations, reduce their cost stacks, and gain more visibility and control into their operations. Let's look at ArcBest, who are using our cloud to streamline worker productivity. ArcBest is the 14th largest for hire fleet in the United States, with over 2,700 city vehicles and over 7,000 drivers. With Samsara, they've integrated data from multiple platforms, improved their safety program, and have next level visibility into their operations. They use our open API to create a custom integration that reduce time spent managing unassigned hours of service by 50%. Here's another example of driving operational resilience. One of the largest school districts in the state of Georgia improved their asset and fuel efficiency with Samsara. They serve over 180,000 students in 141 schools. Safely transporting students to and from school is a top priority. Using Samsara's vehicle telematics and several integrations to manage bus routes, they made their buses more punctual. They have over 2000 buses, and now they're also monitoring vehicle diagnostics like tire pressure and idling and accessing Samsara's fuel reports to save money. In these two examples, we shared how Samsara's Connected Operations Cloud improves the efficiency and sustainability of operations through better data visibility. We're also investing in digitize the worker experience by eliminating inefficient pen and paper processes, streamlining the user experience and delivering solutions for the modern workforce. For example, Superior Plus Propane is enhancing safety workflows to save lives. Superior is a leading US propane distributor serving 24 states with 2,300 trucks and more than 1,000 drivers. Within just six months of installing the AI dash cams and launching our video-based safety coaching programs, they achieved a 90% reduction in speeding. And on top of that, Superior has seen a 52% reduction in on-the-road accident costs and a 50% reduction in rollovers. Our customers are competing in a tight labor market and our platform gives them a competitive edge in attracting, onboarding, and retaining workers because we provide easy to use tools that are in line with the modern technologies they use every day. We're doubling down on transforming the worker experience with innovative new features that simplify day-to-day tasks, keep workers safe, and ultimately make their workplaces more connected. This quarter we announced a number of new product features, including customizable driver workflows in cab nudges multi stop ETA and remote support for administrators to streamline troubleshooting from anywhere. We believe we're in the early stages of a large market opportunity that has been underserved by technology. we want our connected operations cloud to be the system of record for physical operations. As we bring more data into our platform, we're able to provide an increasing number of actionable insights and fundamentally reimagine the way our customers do business. Take Liberty Energy, for example. With Samsara as their system of record and our open API, Liberty Energy created a custom integration. They've connected real-time operations data from their machines to their tax software. As a result, they can more accurately represent their operations and more accurately report to the government. Because of this one integration, Liberty Energy expects to save $10 million every year. They've unlocked a new level of operational visibility, and this single integration more than pays for their SAMSAR investments. We're delivering more value for customers by creating the largest open ecosystem for physical operations. This quarter, we announced new OEM partnerships with two of the largest US automakers, Stellantis and General Motors, as well as Thermo King, a global leader in transport temperature control systems. With our increasing data asset, we're excited to scale our product offerings and double down on product innovation. This quarter, we continue to invest in our product leadership by hiring Jeffrey Hausman as chief product officer from ServiceNow and appointing Kiran Sikar as our company's first chief strategy officer. Jeff's strong background in cloud operations, data analytics, and infrastructure technologies will help us as we scale. Kiran has led our product team since founding. In his new role as chief strategy officer, he will continue leading new product incubation and development. We're also building capacity to serve increasing customer demand. We're seeing our remote work model unlock access to the global talent pool. As a result, Q2 was also our best hiring quarter since the pandemic began. I'd like to end with a thank you to all Samsarians, as well as our customers, partners, and our investors for your continued support. We're still in the early stages of our tremendous market opportunity to digitally transform the world of physical operations. I'm looking forward to what we'll achieve next. With that, I'll now hand it over to Dominic to go over the financial highlights from the quarter.