All right. Good afternoon, everyone, and welcome to Samsara's first Investor Day. My name is Mike Chang, and I'm the Vice President of Corporate Development and Investor Relations here at Samsara. It's amazing to see everyone here in person to join us today, and also for everyone that's joining us virtually, welcome, and it's great to have you as well. I know you've all seen this slide many times. Let me give you two quick pointers here. The first is we'll be making forward-looking statements during today's presentation. These statements are subject to risks and uncertainties. You can find further information in our investor relations website and SEC filings for quarters. I recognize that Samsara is very in the sense that our end markets are not very well understood. The companies that we serve are just starting their digital transformation journeys. To give you a better understanding of this, not only are you gonna hear from Sanjit and Dominic and myself, we're also bringing on Kiren, who's our Chief Product Officer, and Andy, who's our Chief Revenue Officer, and two of our customers. Through that, we hope you can learn a little bit more about our markets, our platform, and the state of physical operations. Just like we do with our customers, where we're building and investing for the long term, you know, we are really looking to build a relationship with each of you for the long term. I hope that at the end of today, you can leave with a better understanding of Samsara and the multi-decade journey we're just embarking on. With that, I'll pass it over to Sanjit. Thank you, Mike. All right. Thank you everyone who's been able to make it here in person and for those on the camera. I wanna get started by first talking about this digital transformation Mike just referred to. The world of physical operations is vast. It makes up a huge portion of the global economy, and we'll talk about that. The progress of digital transformation is just now starting. As a company, we are very much focused on our customer. We are a customer-driven company, and that's what today is really about, is if you were able to visit us, upstairs, in terms of the main keynote, it is about being customer driven, understanding the challenges that they face in the world of physical operations, and then bringing new technologies into that market, helping connect with those problems and solve them. That partnership is what drives us. Walking in the shoes of our customers, understanding truly how they operate is key for us, but it's also important that we share that with you in terms of understanding what their challenges look like, how they're dealing with challenges like the high cost of fuel, labor shortages, asset and supply chain disruptions. These are the real challenges in the world of physical operations, and there's an incredible opportunity for technology to help solve those problems. Wanna start with a customer case study. Summit Materials is a publicly traded company. I referred to them a little bit in the main keynote. They are an integrated building aggregates company. Publicly traded. They have about 400 sites and 4,000 vehicles, so large scale operations. For Summit, they operate across 12 operating companies, and they sold about 70 million tons of product. They provide the aggregates and cement mix that are shown here on the slide. As a vertically integrated company, they scrutinize their operations to find opportunities to save. They look for efficiencies in their business, and having data about their operations is fundamental to that. They're also looking for ways to improve their safety because there's heavy equipment moving around at these 400+ sites, and they wanna find ways to improve their sustainability. These were the challenges that companies like Summit come to us with, and they ask us how can we work together to implement technology to drive some transformation, to change the way they operate. For them, they wanna differentiate themselves in the market, not just as a great building materials provider, but also as a sustainable materials company. They're looking for ways to quantify those emissions, and they're able to do that with the Samsara platform. It's multifaceted in other words. It's not a single problem they're looking to solve. They're looking to digitize their operations, and this story is not unique to Summit alone. Mentioned earlier that these businesses are a huge part of the global economy. I wanna put a number on that. When we think about businesses in construction, in the supply chain, the energy utility, but also the local governments, the food and beverage providers, these folks in aggregate make up about 40% of the global GDP. It's an absolutely massive number. You can see some photographs of who these folks are on the right-hand side. These are frontline workers, the essential services, and they're critical to keeping the global economy running. This is also important to understand from an investor perspective, is that this is a new end market that hasn't historically bought a lot of technology. They're starting to realize the benefits of technology, and they're looking for ways to bring it in. This kinda change and transformation is something that we've seen now for decades across IT. We saw it, if you go back to 1970s and 1980s with that advent of the PC, the era of modern computing. That's when the first couple of million units started showing up in the market. That's when we saw some new applications on the consumer side, and we also saw the emergence of things like spreadsheets and word processors. It's a distant memory for most of us. We're all used to laptops and modern computers, but this is an interesting sort of reminder of how recent this wave of technology transformation has been. We've seen the same wave of technology sweep through the enterprise, especially as the internet became mainstream, as systems all came online, and people started building big databases, big cloud systems. That's really been the transformation that's been going on for the past 20 years as companies have moved to the cloud in their offices. Now we are at the next wave of transformation, which is what Samsara is focused on, transforming the world of physical operations, connecting all of those businesses I just talked about to the cloud so they can realize the same kind of benefits we've seen as consumers and we've seen with the enterprise. We think that this wave is just beginning. We're at the beginning of a 10- to 20-year big tidal wave, the way that we saw with consumer, the way we've seen with enterprise. When we think about cloud transformation, some of it is about sensor information, but really it's about data. It's about becoming a system of record. If you look for patterns in the market, you can see that this is exactly what happened in the enterprise. You think about businesses, like the ones on the screen here, ServiceNow, Salesforce, Adobe's Cloud and Workday. These are all major clouds that have become the system of record, the center of gravity for businesses in their respective areas. We see that same opportunity emerging now for the world of physical operations, for they've become a single source of truth for physical operations in the cloud. That is what we're building at Samsara, the Connected Operations Cloud. What's the benefit of this? What's the value in it? Why do customers want this to happen? Well, it comes down to solving problems like the ones that I mentioned. If you think about the challenges they face today, it's very straightforward. Think about big fleets of trucks operating in the world. They're trying to be as efficient as possible with their operations. They wanna understand how to take all that real-time GPS information, replan their routes, and find ways to be smarter in their operations, and do that for two reasons. One, reduce costs, spend less money on things like fuel, but two, improve the end customer experience. That's what they're doing today. You heard from one of our customers in the main keynote, Tavo from Mexlog, is using all of this data to orchestrate over 14,000 vehicle deliveries a year as part of their business. Real-time GPS data tied to the routing and mapping, and they're able to find optimal routes and deliver vehicles on time to their end customers. That was not possible before Samsara, and that's a big unlock for them. That's not it. That's not the end game, because as we speak to customers like Tavo, we hear more opportunities to take this data to the next level. Kiren referred to this a little bit in his section of the keynote. We have new sources of data like real-time weather overlays, real-time traffic overlays. We now understand the capability sets of labor out in the market. We understand the different kinds of vehicles, and we can bring all of this into our cloud and run optimization algorithms, and that's what we're calling routing and mapping 2.0. This is the future. It's not completely built yet, but we're seeing the signals of it from our customers. We're seeing the need for it, and that's also an opportunity for Samsara. There's also an opportunity to transform how employees work. Workplace safety is a huge part of physical operations because of the assets that are at play. We're talking about heavy machinery. We're talking about people working long hours, and that leads to fatigue, and that, unfortunately, leads to accidents. Now, this is also an opportunity for technology. All of this data that we're able to collect about what's going on out in the field, whether it's connected dash camera data or connected sites data, can be fed into our cloud. Because of the scale we operate at, we can also train some incredible models in the cloud that help us drive things like smart safety programs. Smart safety programs help us predict and prevent accidents before they happen, and this is an incredible step forward. The first step was simply exonerating our customers, having HD video trail or evidence of what happened when there was an accident. The next step, the step that we're on now, is training AI models to understand, well, what's causing those accidents, and how do we break those habits so we can prevent those accidents from happening in the first place? Anacostia is a great example of a company that's deployed us with our driver safety programs here. They're able to see whether drivers are attentive and alert. They're also able to see who exactly was driving or were they driving the right equipment at the right time. This is helping them reduce the number of accidents in the field 20%+. In the future, we don't think this stops. We actually think this accelerates because the camera data that we're able to get is becoming richer, the amount of data we're able to pull out of the field is greater, and we can train even larger models in the cloud. While safety is where we're starting and where we're focused, we're also able to use some of these technologies to do things like inform workflows. Could we use augmented reality technologies like some of the ones that are being developed in the market to improve the productivity in addition to the safety of field technicians? That's also something we're incredibly excited about. Next, we're thinking about how do we fundamentally reimagine some of these businesses. This morning, you heard the story of Liberty Energy. They're operating over 4,000 pieces of equipment all the way up in the northern oil sands of Canada, down through Texas. For them, they've been transforming the entire business operations using Samsara. Real-time telematics data to understand where all their vehicles are, connected equipment to understand their other assets, safety, because they're working these long two-week on, two-week off shifts, and it leads to a lot of fatigue. They're trying to prevent accidents. Then workflows, finding ways to take all this data from apps, bring it into the cloud, and be smarter about their operations. This is leading to a tremendous amount of data, and they're connecting us into all these other systems. Michael shared how they've connected us to payroll, to their ERP system, to their tax systems, and more. This is helping them find additional savings, ones beyond what the original scope of their Samsara project were. Originally, they started out wanting to understand real-time location. They wanted to improve driver safety. They wanted to reduce accident costs and insurance premiums. Now they're able to move to the next level of realization, which is they can take all this data and find new things like tax savings. Michael talked about how they identified potential project to save $10 million in taxes by better understanding when and how they're operating. That's exciting in the field. We see that expansion happening over time where this can get even more interesting. Whereas we think about the rest of physical operations, not just field operations, but all physical operations, we see opportunities in the factory, the loading dock, and the warehouse. These are all part of our customer's physical operations, where we can help change their economics by better understanding asset utilization and understanding worker productivity and understanding safety. It's not happening right now, but it's something that we're excited to help develop over the coming decade. As I mentioned, this is all part of the journey to the cloud. Cloud has so many amazing characteristics working in its favor. You see some of them on the slide here. Once you have data in the cloud, you can access it from anywhere. The data is mobile for our customers. Once that data is in the cloud, you can collaborate on it. That means that our customers can share this data with people like their suppliers. We work with some of the largest companies in physical operations in the world, and we're discovering that they have linkages to one another. One supplies the other. The largest chemicals distributor supplies the largest paint company. They're asking, "Is there a way for us to interchain or exchange that data?" We're also seeing opportunities to collaborate between providers. For example, our end customers all buy insurance, commercial insurance. They're asking, "Is there a way for us to share our safety profiles, our risk scores with our provider and get customized or more competitive premiums?" The answer is yes. We actually had an insurance partner summit yesterday, and it was incredible just to see the ideas of how they can harness this data. With all this highly sensitive data, we need to make sure it's secure. That's also an opportunity for us as a large-scale cloud provider to be a trusted partner, to employ the best-in-class security tactics, and we're making those investments. We've hired an amazing CISO who just came from Salesforce, and we're able to bring the best-in-class ideas from the modern cloud into the world of physical operations as they figure out how to make this transition and do it securely. All this is, of course, very flexible, and it's leading our customers to new insights. Because all this data in the cloud, it helps us understand what other patterns there are in the data. We can understand things like asset utilization, new opportunities to improve safety. We can also see benchmarking data, and I touched on this a little bit. We have such tremendous scale now that we can tell you how you're performing versus other folks that run a ready-mix cement mixer fleet or other people running Ford F-150s in the northeast of the U.S., where weather's a little different than it is in the southeast. Last but not least, everything we're building is an open platform. We wanna make sure that this data provides value not just within the Samsara cloud, but in connections to all of the other clouds that are out there. We wanna break down the silos with all the other software systems by doing integration efforts with them. That is also exciting because it unlocks even more value for our end customer. Okay. In terms of the market opportunity, it is massive. Mike touched on this a little bit, but the markets that we are serving operate in every physical geography in the world. There are a few different ways to size this. When I think about our connected operations TAM, I see a picture that looks something like this. Our core market, which is connected fleet technologies, that's about $33 billion. When you add in equipment and sites, it's a $55 billion TAM, and that's the number today. It's also a growing market. This market is digitizing. If you look at the Gartner reports, they'll show that it's growing to about $97 billion by 2024. The other way to think about this is bottoms up. If you were to stop 100 commercial vehicles on the road and just survey what kind of equipment, what kind of technology do they have on board, you might be surprised to learn that only about half of them have any kind of connected telematics at all. That's the GPS tracking side of things. If you were to look at their dash cameras, you'd see an even different story. These are the AI-based safety cameras, fewer than 5%. Five out of 100 have any kind of connected dash camera. That is an incredible opportunity for these folks to digitize and get data from their operations. How do we differentiate as a company? I think many of you have seen the platform up close. You've gotten a sense of what this technology does, but it really comes down to three major pillars. One is we wanna make this technology easy to use and easy to deploy. In the markets that we serve, it needs to be plug and play, and it needs to just work. And that's related to number two, which is that we're integrated. As a platform, once you deploy us, you get all the data into the cloud. You can start seeing these pre-canned reports, and that works really well for our customers. You have user interfaces that are easy. You have apps that are easy. This means that technology transformation actually happens. It doesn't require a huge team of IT programmers. It's something that any of these customers can get up and running with and see value from within a matter of days. Finally, it's innovative. We as a company love to innovate. We love to have conversations with our customers, understand what new problems, new challenges they have, what integrations they want us to make happen. We love to go solve those problems through the cycle of innovation. This has really differentiated us in the market over the last couple of years. Quick look at the Connected Operations Cloud that we're building. This is the big asset that Samsara is investing in over time. This asset is fed by all the data from our customer sites. You see the inputs to that down at the bottom of the screen. Location data from GPS tracking, safety data from the AI dash cameras, utilization data from the connected equipment devices in the field, but also workflow and compliance data from the apps. This all flows into our Connected Operations Cloud. There, we're able to aggregate the data. We can enrich it, we can enhance it. That clean data is what makes it possible to operate on it. We can build multiple apps, and that's what you see at the top of the slide. With AI and machine learning, we can do things like build video-based safety for our customers, the coaching programs that you've heard about. Same thing with the alerts and all of the data flows that we have. We can provide vehicle telematics in real time, and so on. We can do that for driver apps, we can do it for equipment monitoring, we can do it for site visibility. These are the first few applications that we've built on our Connected Operations Cloud, and you'll see over time, we plan to continue to grow this footprint as we come up with more solutions to more problems for our customers. This platform is gaining momentum. This company is only about seven years old. We've been shipping products for six years, but we've been off to a fast start. You can see on this chart here our relative rate of ARR growth. We're now over $600 million in ARR, and we've done it with multiple products. We started with the telematics application. We've expanded over time. Some of our new applications, like video-based safety, which were introduced a few years ago, have now overtaken telematics in terms of customer adoption. We're excited to see all these apps coming together and working together. We're also excited to do things like launch our app marketplace. I talked about technology and data integrations. We now have over 150 partners on our technology app marketplace, where we made those connections to data easy for our customers. We're gonna keep going here. We've launched some new applications in the last year or two. We also launched over 200 feature enhancements, which is part of our philosophy of innovating on behalf of the customer. For us, as a company, we are building for the long term. We are making sure to understand how we're performing, how we're building the business in a way that we can be sustainable for decades to come. When we benchmark ourselves, we benchmark ourselves across the iconic SaaS companies that we wanna be like. We look at companies like Salesforce, ServiceNow, and Workday, even Datadog. We also look at where were they when they were roughly our size and scale. When they were six years in, seven years into their journey, six years from founding, how large were they? We see that we've accomplished some scale. At $428 million in our sixth year, it's actually a bit larger than what some of these others were able to accomplish in the past. Then we see that there's a pathway to grow to even greater scale because of the large market opportunity that we serve. We see these companies have now achieved revenue run rates between $1 billion-$5 billion and $26 billion. We see that as a possibility for Samsara because of the sheer scale and size of the problems that we're addressing for our customers. Now I wanna go back to Summit Materials. I talked about them briefly at the beginning. With Summit, it's a great example of how our customers engage with us and how these engagements expand over time. Summit originally just wanted to get real-time visibility over all those operations, those 4,000 vehicles operating at the 400 sites. Where we started was with vehicle telematics, real-time GPS tracking. Then over time, they realized that this technology could be useful for driver safety coaching. They saw an opportunity to fundamentally improve their risk to improve their driver safety by deploying our AI dash cameras and the workflows attached to that. That was the first expansion. Once they got comfortable with that, and they saw the value of it, once their users started using the system every single day, they saw an opportunity to connect in even more of their operational footprint. They brought in all of their equipment onto the same platform and now their sites. I mentioned they have 400 different sites. There's heavy equipment at those sites. There's a lot of material. They wanna understand what's going on there as well. Now Summit has all four of these products up and running on the Samsara platform. Net result, they saved 175,000 gallons of fuel. If you think about today's gas prices, that's a significant savings, almost $1 million. They saved over 2,000 tons of CO2, which helped them achieve their sustainability objectives. You can read about Summit's deployment of Samsara in their ESG report. We're proud to support that. For us, as a company, as we build, we are driven by a few core values. I wanted to share those with you all today. We talked about the first one, which is running a customer feedback loop, focusing on customer success. I also talked about the second one, which is building for the long term. This is a decades-long journey. This is not a moment in time, but a long-term build that we're excited to be on. That is related to our third piece here, which is adopting growth mindset. We come from the world of technology and IT. We learn something new every single day from our customers, and that is about the world of physical operations, and we get new ideas about how we can grow together to grow the platform, come up with new technologies, and transform their operations. That's deeply ingrained in our DNA. We also are building an inclusive environment because we serve such a diverse group of people out in this real world. We wanna make sure that we understand and reflect their needs. Then last but not least, we love to win as a team. At Samsara, it's a team sport where our sales teams and our customer success teams get together with their engineering teams and even our finance teams to help solve problems for the customer. That's what we love to celebrate. I think this culture has come together really nicely and it's amplifying over time. You can actually see this reflected in some of the awards that we've won. The Financial Times, Forbes, IoT Breakthrough, a number of folks have recognized us for the unique culture that we're building at Samsara that is so customer-focused. Before I leave you, I wanna just remind you all of the mission that we have as a company. For us, we're a technology company, but we wanna help improve the safety, the efficiency, and the sustainability of the physical operations businesses that power our economy. All right. That's it for me. Up next, we've got Kiren, who's gonna talk to you a little bit about product, and I think we're gonna see a live demo too. Great. Thanks. Hello, everyone. For those of you who I haven't met, I'm Kiren Sekar. I lead our product organization at Samsara. I've been with the company since founding, and prior to Samsara, had the pleasure of working with Sanjit and John on the leadership team at Meraki. Today, I'd like to show you how our customers are digitally transforming their physical operations with Samsara, how we're enabling them to access data that was previously siloed, enabling them to analyze that data at scale in the cloud, find insights to improve their business, and then be able to act on those insights through our software. I find it's most helpful to understand this transformation that we're living through in physical operations by looking back at some of the industries that have already undergone their transformations. We're gonna look at a couple of case studies that we all know well, Amazon in retail and Salesforce in CRM. When we look at these industries that have gone through their transformation and others like them, we see that digitization really has three core aspects. Accessing data that was previously inaccessible, analyzing that data at scale in the cloud, finding insights that previously couldn't be discovered, and then acting on those insights through software to improve the business. With Amazon, they had access to far richer data than their brick-and-mortar competitors. They could understand what shoppers were searching for, what they were clicking on, what reviews they were reading, what they were putting in their carts. They could access this data at scale across many customers and a deep product catalog. They could analyze that data to find the insights that allowed them to improve their business. They could optimize their supply chain, they could tune pricing, they could improve the delivery experience, and they acted on these insights, and the result was that their customers had a far better experience, and they grew a tremendous business. In CRM, before Salesforce, oftentimes each sales rep would manage their own pipeline in a separate Excel spreadsheet, if you were lucky. If you weren't, they probably were on Post-it notes. With Salesforce, sales leaders could access detailed information about the sales activities and their customers in the cloud. They could understand how email campaigns were performing, how leads were converting to opportunities, converting to accounts. They could see this across their entire teams. Salesforce provided the tools for sales teams to figure out how can they optimize their sales force? How can they plan territories better? How can they forecast more accurately? Ultimately, they enable their customers to grow revenue faster. We're seeing the exact same patterns play out in the world of physical operations. With Samsara, customers are able to access data that was previously disconnected or siloed in legacy systems. We help customers analyze that data at scale in the cloud, and then act on it through our software to be safer, more efficient, and more sustainable. That's translating to real results for our customers' bottom lines. GP Transco is a customer of ours who operates in the Midwest, and like every operator right now, they care a lot about fuel costs and fuel efficiency. Samsara enabled GP to access fine-grained data about their fuel consumption. They could understand fuel usage and efficiency across their entire operations. They could understand driver behavior, the efficiency of their routes, the efficiency of the vehicles. They could figure out where they were doing well, where they could improve. They identified engine idling as a behavior that they could change to save fuel. They acted on that insight, and they're saving 205,000 gallons of diesel a year, which in today's prices are over $1 million a year in savings. Sanjit talked about how safety is a top concern for companies with physical operations, and accidents are unfortunately a weekly or daily instance, in some cases, with large operations. Samsara gives customers visibility into their safety, so they can figure out what's working, where they can do better, prevent accidents before they happen, and lower settlement costs. Heniff Transportation is a leading transporter of bulk liquids. They move a lot of hazardous materials. They're using Samsara to manage safety across 1,800 drivers out on the road, as well as 80 of their facilities. They estimate that they've cut their liability in half. In physical operations, we see a lot of paperwork, from compliance logs to inspection forms, and we work with customers to bring these paper processes into software. Our customers can benefit from real-time data that they can alert on, they can report on, they can analyze. We're able to make the experience simpler and easier for their workers out in the field. Instead of cumbersome paper processes, they can have simple digital workflows. One of our customers, UFP Industries, estimates that they're saving over $600,000 a year in operational and administrative costs by going paperless with Samsara. On top of that, their workers love the experience. Now, when we look at these business challenges, from fuel efficiency to safety to worker productivity, they all come down to the ability to access data, analyze that data at scale, and act on it. Our Connected Operations Cloud enables customers to do just that. We pioneered the Connected Operations Cloud, which gives customers visibility across their operations in a single integrated system. From the diversity of the data that we're capturing, the scale at which we're capturing that data, and the breadth of applications that we provide for customers to act on that data, we're leading the market. Let's take a closer look. We start by enabling our customers to access data from their physical operations. Take Summit Materials, who we just heard about. They can connect data from sensors in their construction equipment and generators out in the field into Samsara. For their fleet, they can have real-time location data. They can understand fuel efficiency, driver behavior. Through dash cams in their trucks, site cameras in their facilities, they can capture thousands of hours of HD video footage every day and use AI to find the moments, the insights, the detections that matter for their operations. They can move their paper processes into digital workflows, capture that data in our cloud as well. Samsara captures all of these data types and many, many more at a massive scale. Last year alone, we collected over 4.6 trillion data points in Samsara. We bring the data into our system in real time, we enrich the data, and then we analyze it. We use machine learning. We've developed engines for reporting, for alerting. We find the insights that our customers care about, and we surface them through our applications. We focus on making our applications intuitive and easy to use for frontline workers so that an operator can have the tools that all the different teams need to do their jobs better. We have built expertise across each of these areas, from embedded systems engineers, making sure we can capture clean data from sensors out in the field, distributed systems teams who manage the huge volume of data coming into our cloud, PhDs in machine learning and data science to find insights from that data, and user experience engineers and designers who make the products simple for workers out in the field. We believe that we've created a significant competitive advantage by solving all of these problems, being able to bring insights to complex operations and making them simple. We start with how we collect data from physical operations. Now, most of the physical assets used in operations are not yet connected to the cloud. We build IoT devices that customers can place on their equipment, captures data from these assets, and sends it into Samsara. We focus on making these devices very easy to install, so a customer can quickly try them out and scale them across their operation. We also focus on making these devices cost-efficient. We engineer them to use commodity components, and we use efficient outsource manufacturing. Now, many of the newer vehicles and equipment used in customers' operations can already connect to the cloud. For these assets, we actually partner with the manufacturers like Volvo, John Deere, GM, and Ford to integrate directly with our clouds, connect data from their clouds into Samsara. Now, regardless of whether data is coming into Samsara through one of our IoT devices or through an OEM integration between clouds, this is a means to an end, which is to capture clean, high-quality data in our cloud so we can analyze it. Our platform is operating at a scale and breadth of data that gives us a tremendous advantage in terms of what we can deliver for our customers. That advantage is continuing to grow as we add new customers to Samsara and customers connect more of their operations into our platform. We're collecting 4.6 trillion data points a year. We process 33 billion API calls. We analyze 85 billion minutes of video footage and made 2.4 billion AI-based detections. What does this mean for customers? Let's talk about fuel efficiency, fuel utilization. We're able to capture rich information that helps customers cut down on fuel waste. From fuel efficiency in real-time across their operations to driver behavior. Are they driving at efficient speeds? Are they moving back and forth between the gas and the brake? Are they revving the engine too high? We can look at routes, understand if they can shave off a few miles. All of these allow our customers to understand where there might be opportunities to optimize fuel consumption and save 5%, 10%, 15% or more. Take safety. We use HD dash cameras with AI to understand are drivers attentive or distracted? Are they wearing their seatbelt? We use telematics data to understand, are they following the speed limits? Are they driving smoothly or is there harsh braking, harsh acceleration? Are they maintaining appropriate following distances? We take all of these signals and more and analyze them at scale. We then summarize all of these data points in a simple safety score that our customers can use to identify their top-performing, safest drivers, hold them on a pedestal, make sure they can reward and retain them. Also find cases where drivers might need a little bit of extra coaching or personalized attention to be safe out on the road. All of this data also allows us to train powerful AI models to help bring insights to customers. We talked about safety. The volume and scale of our data makes sure that our safety detections can work well across customers with diverse operations. If you're a food and beverage distributor operating small refrigerated trucks in a dense urban environment, we can make sure that these AI models work well for you. Likewise, if you're an oilfield services company operating totally different types of vehicles in rural roads, we can make sure the algorithms are tuned for you as well. Now, as we bring more and more data into Samsara, we're able to collect more insights that can drive value for customers. As we think about a long-term roadmap, we can look at problems like route optimization and see how can we apply all of the real-time data that we've captured, traffic data, planned versus actual route performance, and turn that into routing insights. Workflow optimization, understand how customers are acting on this data and make it simpler and faster for them to take action. Now, all of these insights are the things that our customers care about in their operations, but our customers are not data scientists. They're operators, and they need simple, intuitive interfaces to act on this data, and they do that through our applications. We started with a single application, vehicle telematics, that allowed us to begin serving a wide variety of operations customers in industries like food and beverage, construction, local governments, energy. We were able to start that customer feedback loop that Sanjit talked about and get real data in our system. We quickly learned that these vehicles were often getting into accidents, and the operators didn't have any evidence to exonerate their drivers. They couldn't identify the behaviors that they could coach on to prevent accidents before they happened. We created our video-based safety product, and it's now our top-selling, fastest-growing application. We saw all the paperwork in operations and started by digitizing inspection forms, compliance logs, started adding more and more tools into our app used by drivers, then started building workflows on top of them to make it easier to onboard new workers and to retain talent, talented drivers with high-quality tools. We learned from customers about all of the equipment outside of the vehicle that's used in their operations. Our food and beverage distributor might need to make sure that their trailers are properly refrigerated. Construction companies need to make sure they have their equipment at the right site at the right time in proper working order, that containers and equipment are properly utilized. Customers need visibility into these as well, so we built our equipment monitoring and control solutions. We heard from customers how safety, efficiency, and sustainability apply not only to their fleets and field operations, but to their sites. We created our connected sites application to bring visibility into our customers' facilities. Along the way, we learned from customers that having multiple solutions in a single integrated system was far more powerful than point solutions. First, it was a lower total cost of ownership than separate siloed systems from different vendors. More importantly, their teams had all of the data they needed in a single system to make better decisions. Take, for example, a safety manager. They'll, of course, use insights from our video-based safety to understand if drivers are distracted or attentive. They'll also use telematics data to understand if drivers are operating smoothly. Where is the highest risk in terms of times of shift or area of routes? They'll start looking at data from our driver apps to look at inspection reports to make sure that vehicles are in safe working order when they're going out on the road. They'll want to coach on safety and investigate incidents not only in the field but in their sites, and they'll do that through our sites product. You know, the best way to see how customers act on data through Samsara is actually by seeing it live. We're gonna turn away from the slides for a minute. We have a few customers who have given us permission to share their live dashboard for you, which I'm excited to do today. What we're looking at right now is a live Samsara dashboard from one of our customers. This is the same interface that their team is working out of right now. We're seeing exactly what's going on in their operations in real-time. Now, through the system, they have all of their operations in a single pane of glass. They can see their equipment, their vehicles, their drivers, their sites. They have a digital copy of their physical operations. Now, here, we're looking at a customer who is a propane distribution company. Right? They supply propane across the U.S. to businesses and consumers. They care first and foremost about safety. They're transporting flammable liquids out on the highway or in residential areas, so safety is their top concern. They also care a lot about efficiency. Fuel costs are very important to them. Route efficiency, very important. If they're able to find ways to get one or two more stops per driver per day, that translates to their bottom line. Now they can see everything in real time through Samsara. Let's zoom in to what's happening down here in Southern California and look at one of their vehicles here. I click here, and we can see one of their trucks in real time. We can see that they're going 64 miles an hour. We can see a photo taken out of their dash cam. Their dispatcher can actually see what their driver is seeing right now. We see their fuel level, which driver's logged in. This is pretty incredible. Before Samsara, our customers might have been logging into two, three, four different legacy applications. They might have had some GPS breadcrumbs. More often than not, they might have had a big paper map on the wall with a bunch of Post-its and push pins. Now they have a digital reconstruction of their physical operations. We can click in here and launch helicopter view. This is showing the vehicle's location in real time, down to the second. The first time we show this to new customers, it blows their mind. They have real-time location, they have video and photo data, they have data from the sensors built into the vehicle, all in a single system. One of our customers, Uniti Fiber, they're a fiber optics infrastructure company. They use this real-time visibility to optimize how they dispatch their vehicles to job sites. They were able to improve their dispatch operation efficiency by 70% by knowing where their workers and vehicles were at a given point in time, make sure they're sending the right crew to the right site. Now, in addition to location information, we're capturing all of the sensor data from all the vehicles and equipment out in the field in real time and bringing it into the cloud. As you can see here, we can see the engine hours. We can see that this engine might have some fault codes that it's throwing off. We can see fuel level, odometer, and more. All of this data is aggregated and analyzed, and it fuels a number of different applications for customers. We can use it to determine safety information so they can coach their drivers and manage compliance. They can use this data for maintenance to be able to understand when's the right time to bring a vehicle into service? How do we minimize unplanned downtime? Can use it to optimize dispatching, routing, fuel utilization, and more. Let's take a look at fuel efficiency. Top of mind for our customers right now. We're able to aggregate fuel efficiency and consumption data across their operations, summarize it, and make it easier for them to act on. We can see, for example, the efficiency of each of the vehicles. What is the fuel cost? What are the emissions? Is there a vehicle that's really burning through more gas than it should be? We've designed the system to support large organizations with complex operations, so they can easily slice and dice by region, by unit, by division. They can look at individual drivers. Are there particular drivers that are operating efficiently who they need to make sure they call out and reward? For people whose behavior could change and save them a few% when it comes to fuel efficiency. Because we're providing the service across tens of thousands of customers, we can benchmark this data so that customers can compare their operations to other operators with similar types of assets to see where they're doing well, where they can potentially improve. Now, we can get really fine-grained and find all of the different signals that contribute to fuel efficiency, so customers can understand, for example, are drivers using the right engine torque, right? Are they idling their engines? Are they anticipating going smoothly between the gas and the brakes? These are the things that maybe you don't worry so much about at $2 a gallon. At $5+, every percent matters. With Samsara, they can eke out those few extra percent of efficiency that translates to their bottom line. This type of analysis, finding insights, applies to fuel. It also applies to safety. As I mentioned, this customer is moving hazardous materials. Safety is a top concern for them. As you can see, they are very safe fleet. They can summarize all of their safety information into a single safety score. 92. That's a fantastic score. We can see that it's actually gone down 3 points over the last month. They can understand why that is. We can look down and see what's going on across the operations when it comes to speeding. You know, are they following traffic signals or are they rolling stop signs? Are the drivers distracted? Are they having harsh braking events, harsh acceleration? Again, they can slice and dice by region. We can see that California is doing great. They rolled out a new training program here that we wanna replicate across our operations. We can look at the performance of drivers, understand who the drivers are that we need to make sure that we're retaining and rewarding, who needs a bit of extra help. For larger operations, they wanna know just, not just how efficient are their drivers, they wanna know how efficient are their coaches. Who are the safety managers? Who are doing the best job keeping their crews safe out on the road? What can we learn from them? How do we replicate that across the regions? They can do that here as well. With all this data, they can understand their safety. They can figure out where to focus. We also provide workflows that allow customers to actually coach their drivers to call out their exceptional behavior, make sure that's being reinforced, see where they might need a little bit of extra help. They can do that right in the platform using video data, so they can look at actual videos of driving, maybe defensive driving that you want to reward and recognize, or areas where maybe a driver was distracted, and talk about ways to avoid that. They can sit down with the driver and do that right through the system. Now, we've seen pretty tremendous results by customers adopting these data-driven coaching programs. One of our customers, Chalk Mountain, is an oil field services company. They deployed a safety program using AI dash cameras, and they've reduced their preventable accident costs by 86%. By rewarding positive behavior, they've actually increased driver retention by 15%, which is really important in today's labor market. Even with all of these programs, accidents still happen. Without evidence to exonerate drivers, customers often end up in costly court proceedings. Let's take a look at a near miss, something that could have resulted in an accident on the road. We'll show you how customers will use Samsara to handle these situations. You're gonna see a video of the driver out on the road. You see the car in front of them swerve out. The driver hit the brakes, avoided an accident. Had that been 1 second later, this could have easily been a crash. Now, in the system, we can see a lot of things. First, our system is understanding, using AI, is the driver attentive or distracted? Here, the system can tell that the driver was paying attention, looking down the road. We can tell that they had appropriate following distance. They were wearing their seatbelt. The driver was doing the right thing, operating safely. Had this been a crash, first thing that would have happened is our system would have detected the crash and sent the safety manager a real-time alert. They could see it in the dashboard, or they can be notified on their own on their phone and see this video evidence in real-time from their mobile app. They can check to make sure that the driver is safe, get them any assistance they need, and then they can take this video, send it out to the driver or an officer on the scene and have the incident and the driver be exonerated right then and there. This can reduce huge amounts of costs when it comes to avoiding litigation. Without video evidence, sometimes a major accident can result in over $1 million in settlement costs. The savings are significant. Now we see that safety and accidents are a concern for operations, not just for drivers out on the road. Accidents also happen in their facilities. That's why we added our connected sites product to give customers visibility across their operations from the field into their facilities. Here we're looking at a customer in the construction industry who serves the oil and gas market. They operate in remote environments. Here we can see them in West Texas, in North Dakota, and in Alaska. They need to have visibility and management across all their operations, and they need to be able to do it through the cloud. Let's zoom in to what's going on up here in Alaska. We can see their trucks, their equipment, and we can see their sites. Here we see their shop floor, where they perform welding, basically build parts that they need to go deploy at their customer's sites. Now from the dashboard, we can see the types of incidents that they might need to manage out in these facilities. Let's take a look at a typical warehouse here. We're gonna see some forklifts zipping around. Something that unfortunately happens, you know, all too often, two of the forklifts bump into each other. Ouch. Fortunately, no one was hurt. These guys did the right thing. They stopped. You see a supervisor walk right over. They document the incident and move on. But now their safety manager has this video data in Samsara. They can investigate the incident, understand what happened, and figure out how you prevent it from happening in the future. Do they need to bring in new training? Do they need to rearrange the floor to make this less likely to happen in the future? They can do that all from the same system that they use to manage safety out in the fleet. With AI, they're also able to very quickly find the data that they need to take action. For example, let's say there was an incident that took place in this facility. They can pull up historical data over the year. Let's say the incident involved a person. They were wearing an orange PPE vest and blue jeans. We can use AI to quickly find the incident that we need and be able to coach on it. Now, when we look into operations like we're doing right now, one of the things that we see a lot of is paperwork. We built our driver app to enable customers to take the paper processes and move them into software. For example, we can have proof-of-delivery forms. This used to be a stack of paper the drivers would have to bring back to the office at the end of the day. Now they can submit them through our app. The operators have visibility in real time. They can add photos. We have data about exactly when and where this was submitted, and this allows customers to make better operations decisions. They're able to serve their customers better, having this data in real time. Customers started to add more and more documents and digital processes into their operations, and they were bringing more new workers into their operations who'd had to train on their tools. Samsara, as well as all of the other apps that we're deploying, including enterprise apps, the workers likely hadn't used before. We built workflows to simplify the experience for drivers out in the field. With workflows, we can take all of the tasks that a driver needs to perform, and we can just arrange them in a simple drag-and-drop interface. Let's say here, when they arrive at a firm, we want them to create a proof of delivery form, a checklist. We wanna make sure that they inspect the trailer, and let's have them also certify their logs. Now, actually, no, I'd actually like to have them inspect that trailer first while they're still in the vehicle, so let's go ahead and move that up. Now the driver is guided through a really simple workflow through their app. It's contextual based on the work that they're doing out in the field. We got this out into our customers' hands, and drivers loved it. They found that it simplified their work. There were fewer errors on the back end. Customers were saying, this is helping them onboard new workers quickly. It's also helping retain their drivers by taking out a bunch of the tedious paperwork. We added some enhancements, which we announced several this morning, starting with the ability to link to third-party apps. Now we can open an external link in a third-party application and use workflows as a central hub for all the different apps and tools that our customers are deploying into their operations. Now, let's take a look at this from the driver's perspective. Right? We see that they have a experience that's simple, it's fast, it's easy to use, takes less time than paper, and our managers on the back end have far richer data than they did before. Now, these workflows have been really, really well-received. The adoption has been incredible. Our customers are telling us that they're still continuing to add more tools, they're building more custom software, and sometimes their drivers need help out in the field. Oftentimes that meant calling them up on the phone, trying to resolve the issue, or maybe filing a help desk ticket, waiting an hour or more for the issue to get resolved for these folks out in the field. Sometimes this would effectively halt their operations. Like, the drivers might end up out of compliance, or the operators might not have the data that they need to run their business. We created a new feature that we announced this morning called Remote Support. Now with Remote Support, the Samsara administrator can make one click from within the Samsara dashboard, launch a remote support session, and see exactly what's happening in the driver's device. They can see their settings, their apps, and as you can see here, they can take control of the device as well, and they can resolve whatever issue had that driver held up. They can help them with data entry. They can help them with passwords. They can help them with logs. Now, the issues that might have slowed down their folks out in the field for hours or longer, they can solve instantly over the air. These are just a few of the ways that customers use the data in Samsara to act on the insights from the platform and manage their operations. Hopefully, it gives you a good sense for how our customers are using the solution day to day. Now, if we can flip back to our slides, we see that Samsara effectively becomes the system of record for our customers. As they get more data in the system, they naturally wanna connect it to the other applications in their environment. We've grown to support 155 third-party integrations on our app marketplace. It's customers connecting Samsara to the other apps within their ecosystem. We see that our large customers are using an average of four integrations. In fact, we've seen our API traffic increase 4x over the last year alone as customers unlock this data and connect it through their operations. This ecosystem is broad. We talked about OEM integrations, where we can pull data from assets through cloud-to-cloud partnerships. We also integrate with IT systems. Many of our customers will use our driver app plus telematics data as a system of record for work performed, and they can actually use that as a virtual timecard and run payroll out of the data in Samsara. It's easier for the drivers, there's less paperwork, and there are fewer errors. We partner with insurance providers, so customers can connect their safety data to their insurance provider, and they can get premium reductions based on safer operations, and the insurer's process plays faster. We partner with vertical-specific software companies. Think about companies that build route planning software that's specific to K12 school buses or waste management, or systems that are specific to managing loads and long-haul transportation. Our customers can connect those systems to Samsara and manage all the data in one place. Now, this scale of data, the breadth of applications in this growing ecosystem is creating pretty tremendous momentum in the market. To tell you more about that, I'd like to introduce Andy McCall, our Chief Revenue Officer. Andy? Hey, everyone. How you doing? My name is Andy McCall. I have the great pleasure of leading our sales organization, and I thought I would spend just a couple minutes talking about one of my all-time favorite topics, our customers. At Samsara, we sell into the world of physical operations. You heard Sanjit say we believe this comprises roughly 40% of the global GDP. As you can imagine, this is an incredibly diverse set of customers. Everything from construction field services to local state government entities, manufacturing, transportation, utilities, across the board. It is a huge, huge market to go after. If you're wondering what differentiates us, the first thing is our ability to address this entire market, right? A lot of our competitors play in any one of these. Because we have a brilliant product and engineering team, we have been able to develop a horizontal platform that sells across all these verticals. If you look at these verticals, what's the common factor across all of them? It's that they rely on high-value assets and that they deploy large distributed workforces across very complex operations. Fundamentally, that is what our connected operations platform helps them to do, is get visibility into those operations. Now, as part of my role, I spend a lot of time out with customers. I spend time with our customers in North America and Canada and Mexico, over in Europe, and throughout the US. I can tell you it's very consistent what our customers care about, what operations customers care about. It's safety, it's efficiency, and it's sustainability. You've heard a lot of examples today about how our software helps address these. On the safety side, things like OSHA violations, preventing thefts, helping predictively prevent accidents and incidents, help reduce insurance premiums. It really shouldn't be lost that a lot of our customers need this technology just to remain compliant. There's regulatory compliance issues that our software helps address. On the efficiency side, our customers care about cost. Now, I've been on board with Samsara since 2017, and for better or for worse, we've seen a couple economic cycles. We've seen some really good times, and we've seen a couple of rough times, in the economy. I can tell you that this has remained very consistent across our customer base. They care about costs in good times, and they really care about costs in tough times. Fuel prices, product spoilage, things like repairs and maintenance is constantly at the top of their priority list. Again, this is what our software helps them address day in and day out. In addition to things like labor inefficiencies, figuring out where their assets are and how they can best utilize them. Then finally, one of the things that we're starting to hear more and more about is sustainability. Our customers are asking us, how can they report on things like their carbon footprint in efforts to reduce them? How can they look at electrification of their fleets? Really focused on bringing rapid ROI to our customers. How do we get them to value as soon as possible? The proof is really in the momentum that we're seeing in the market today. You can see that in just some of the logos that we've won so far in our fiscal 2022. Companies like Penske that operate massive fleets with variable use cases. Companies like Roto-Rooter that are out in the field every day. Their office is basically their car. They're out doing field services, and they need to know where those assets are. They need to keep those things in operation. To something like the City of Orlando, where we're going through every single department and entity across the city and making sure that their movable assets have Samsara on them. We also see a ton of our business now from expansions. If you look at some of the logos that we have onboarded in previous quarters, we see these continue to grow. City of Boston is a great example. This is a relationship that dates back five years ago, and every single year, we've managed to expand our business with the City of Boston, continuing as their fleets grow, but also finding new use cases across different assets in the city. Clean Harbors, another great example. Clean Harbors' massive fleet does things like hazardous material spill cleanup, that type of stuff. We've been able to grow that relationship substantially. How do we go to market? We are broken out by segment and by geo. On the segment side, we have an enterprise team that chases the largest companies in each of the segments that we play in. These enterprise deals tend to be more complex. They tend to be larger companies with more complex requirements and therefore longer sales cycles. A sales cycle in our enterprise segment might be six months to even upwards of a year. Obviously, larger account captures when they happen. We have a mid-market team, which is much more transactional in nature. We can largely get through this through an inside sales model. These are much more predictable, shorter sales cycles. These sales cycles can be anywhere from weeks to a couple months. From a geography perspective, I mentioned it before, we operate throughout North America. Today, Canada, the United States, and Mexico. We have about 10%, a little north of 10% of our revenue coming outside of the U.S., which also includes Europe, where we operate in most of Western Europe today. We obviously have an eye on expanding internationally in the quarters and years ahead. How we sell. We employ a see, try, and buy sales motion. What does that mean? It means that fundamentally, we believe we have the best technology in the market. We wanna get it into our customers' hands to experience it as early as we possibly can. We have a magnificent marketing team that works hard every day to get a piece of interest generated, either through inbound or outbound. Once we can get ahold of a customer, a prospect, we will very quickly try to identify what challenges they're having. Maybe they're upset with their current vendor. They're not happy with the level of support. They're missing some key piece of usability out of their software. We will work to identify that, and then we will get our technology into their hands. We ask them to try it out. Most times, way more often than not, when we do that, when we can get the technology into their environment, they end up moving forward and purchasing with us. That is our biggest differentiator, is just the usability and the fact that our technology works. Once we do that, of course, once we've transacted, we move into onboarding the customer. We have a fantastic customer success team. They work hard every day to onboard these customers, make sure that not only do they implement as quickly as possible and integrate across all of the back-end systems that they need, so they're extracting maximum value, but also just making sure they understand how to use our technology, so they're getting every last bit of value out of it. Of course, we maintain that relationship with quarterly check-ins. It gives us an opportunity to continue to identify other opportunities to cross-sell and upsell. It also sets that customer up very, very well for a renewal when our contract period is up. Excellent. Another big, big advantage that we have is that we are a multi-product company in a relatively short period of time, right? We've been at this for about seven years. We've managed to bring multiple products to market. How does that help us on the sales front? Because it gives us multiple entry points into an organization. We might call into the logistics department and find out that they're currently running telematics with one of our competitors. They're not up for contract renewal for a couple years. Okay, that's fine. We'll go talk to the safety department, see if they have a safety initiative. Are they looking at dash cameras? Do they have an initiative to improve their safety? Maybe that's an entry point for us. We might go talk to their quality control. Do they need temperature sensors, cargo sensors on their vehicles? Do they need assets? Do they need to be able to track their powered and unpowered assets? The point is, if we can get a foothold into this account, then when that renewal comes up for telematics in two years, we're already in there. They already love our technology. They're using it every day, and they're used to it. The fact that we have multiple entry points into an organization, so many different ways to get into the operations arm of these companies, gives us a huge, huge advantage over our competitors in the ability to expand within these accounts. The numbers show it, right? We have 70% of our core customers today utilizing more than one of our licensed products. With our large customers, which we define as $100,000 in ARR or more, we have 90% of our customers utilizing more than one of our licenses. This is a big advantage for us and also a way that we're growing the business. Let me give you two examples just to kinda drive home the point here of how we land and expand within these customers. The first is a large utility provider in the U.S., electricity and gas. Massive fleet, well over 10,000 vehicles, over 4,000 assets. You can see we first penetrated this account about four years ago. Relatively small deployment. It was just vehicle telematics. They were trying us out. They had some compliance needs that we satisfied. Over the last four years, we have been able to expand both within their fleet, but also finding other use cases, powered and unpowered assets, getting some safety onto their vehicles. We've managed to grow that into almost a $4 million ARR line of business. This account is still growing. It would not surprise me at all within a couple of years if this account is doing well more than $10 million with us in ARR. Lots of expansion once we land these accounts. Another example is the second-largest U.S. food distributor. This is an account that we acquired more recently, and you can see we've expanded a lot more quickly with them. This was an account that needed video-based safety. This was a safety initiative. They also looked at our camera technology and said, "Hey, can you do that at our sites?" We said, "Absolutely." That was where we landed with this customer. In a relatively short period of time, a couple quarters, we've been able to grow this from under $1 million in ARR to almost $2 million in ARR. Again, lots more expansion here. They've got about 200,000 customer locations, 100 distribution centers. We're just scratching the surface with this account. The only thing better than hearing about customers from me is hearing from our customers themselves. We're gonna take a quick 5-minute break to rearrange some furniture up here, and then I'm gonna be pleased to announce, two of our customers come up, join me on stage, and you can hear directly from them. Thank you. Next up, excited to introduce, two of Samsara's customers. We got Troy here from Artera Services and Tony from XPO Logistics. Get their faces up there on the screen for y'all. For those of you that aren't intimately aware, just quick background on the company. XPO is the number one among Fortune 500 transportation logistics companies, I think for the fifth year running. $12.8 billion American freight transportation company. Artera is a family-owned and operated since 1953. 11,000 employees, $2.5 billion, and they do mission-critical infrastructure for things like natural gas and electric providers. Happy to jump into it here. Maybe before I do, just do you wanna kinda introduce yourselves for the audience? I'm Troy. Nice to meet y'all. Sorry about the South Louisiana slang there. I hope you get through that. I talk kinda slow. But no, I've been in the business for over 25 years, mainly in the petrochemical power infrastructure world, in South Louisiana. Been in Georgia for a couple years now with Artera. Just a slight change, we're comprised of 10 operating companies with 10,000-11,000 employees, all started from family-owned businesses, and now we've put them together in a portfolio. If you get natural gas to your house anywhere between the Mississippi River and the East Coast, it probably was touched by one of our operating companies. All right. Thank you. Tony Graham. I'm the President for the West Division of XPO Logistics LTL Division. I've been in transportation trucking for about 35 years. I've been with XPO for 25 years. I've held leadership positions in sales, operations. Prior to this role, I led all the revenue management and pricing activities for LTL. Great. Thanks, gentlemen. Maybe to start off, why don't you just give a quick summary of sort of the relationship that your company has with Samsara. You know, maybe how long we've been doing business together, and how you've deployed the technology. Maybe, Tony, if you wanna start us off. Sure. Absolutely. I'll begin the conversation with the relationship is fairly new from my perspective. Having said that, we've only rolled out the in-cab technology over the course of the last few months. It was a very impressive rollout, though. We were able to accomplish the installation across about 9,000 rolling stock units, so 9,000 tractors in a 3-month timeframe. When you do the math on that, I don't think anyone worked on Sunday. There were a few Sundays that they worked, but a little over 100 units throughout North America, so the U.S. and Canada. It was a very impressive install. Our units operate 24 hours a day, so we saw no downtime from an operational perspective while the install was taking place. Pretty impressive installation. Yeah. Excellent. It was a quick rollout for sure. A lot of units in a short period of time. Troy, maybe We're a little bit different being an infrastructure company, but we have over 7,000 vehicles on the road ranging from pickup trucks to get the foreman around to crew trucks, 2,500 series, all the way up to Peterbilt and then everything in between. Again, over 7,000 units 18 months or so ago that we started this process. We made sure not to work people on Sundays too, but we had a third party that we worked with that between us and Samsara to get the cameras in, the dual-facing cameras on all our assets with a motor in it, and then, of course, the Asset Tag and all the other GPS monitoring that we do of all of our other equipment. It's a large fleet, and it was pretty seamless to get it installed. Yeah. Excellent. Obviously XPO, Artera, very different businesses, but very common in that you have large, complex operations. Maybe just take us through what does a day look like for your team at Artera? To get the natural gas to your house, and we do some transmission pipeline work to the bigger stuff that brings petroleum products, but that's of course, not as much today. You know, guys get up early in the morning, they go get in a pickup truck and go meet their foreman somewhere. You may or may not have taken that asset home that night. They load up, they hook a trailer to it. Perhaps it was loaded last night, but regardless, it's probably gonna have a piece of yellow iron or a small, bigger type equipment on the back of it. They pull into a subdivision like where you live. They get out, and they'll do safety checks and reviews and job planning and make sure all the lines are marked on the ground, and then they begin the hard work of digging up and finding out where other utilities are, and then put in a gas line to your house. We replace in a lot of ways the old, you know, upgraded needs for old piping. If you could imagine steel pipe that was put in 100 years ago, which really was not that long ago, 50 years ago. It's rusting, and it's leaking all across the country. We're in a significant ESG capacity with replacement work. Then also the smart work that goes to your house where a meter's replaced, and that meter has the technology to send your bill or your information instead of a meter reader coming by. Well, we gotta do all that work, too. All that goes from the house all the way to the big 4-inch or 10-inch or 20-inch line that runs across country that gets supplied to the supply chain that comes to your home. If you can imagine the 20-inch pipe all the way down to the one that comes into your side of your house, that's what we do. Wonderful. Every day, 10,000 people, so. Yeah. Pretty impressive scale. A lot of people. Tony, what does a day look like for your team at XPO? This is gonna sound a lot less technical than that, okay? Because this is trucking. Literally, it's an on-time pickup of a pallet or multiple pallets from a single shipper, consolidation of those pallets in our line haul environment, distribution throughout 290 locations in North America with a damage-free delivery and accurate invoice after the fact. All right. Excellent. I wanna next jump into some of the operational challenges. Again, you know, large operations. What are some of the challenges you face on a daily basis, and I guess, how do you prioritize, you know, those challenges? Maybe, Tony, you can start off on this one. Well, I'll start with the biggest challenge that the entire industry faces, whether it's less than truckload, which is our business, or the truckload environment, and that's a lack of drivers, so driver capacity. We try to offset that through internal driving schools. We're doubling the number of driving school graduates that we expect this year to help supplement that staff. Above and beyond that, it's trying to connect all the aspects of the business. I mentioned around 290 locations throughout North America. Keeping them connected, keeping 20,000 employees connected as well is always a challenge. Yeah, I bet. Yeah, for us, challenges is we have CDL operators that have to operate our bigger trucks, and one of the biggest challenges for us is to keep him from stealing our employ. No. It's it is challenging. You know with what we have today, he and our business is facing difficulties with people. It is tough. As it relates to Samsara, you know, the challenges that we've overcome through the technology, identification of where our equipment is. If you imagine the deployment, somebody accidentally digs something up somewhere. We're getting contacted, or we can look on a screen and know that Jim and Joe are two miles down the street. Instead of trying to deploy somebody through a list of where's his address, very quick deployment. We didn't have that before. Just complete and total asset management, not to mention, I know we will in a minute, the safety aspects of it. The challenges there that we've overcome have been tremendous. Fantastic. We hear the word digital transformation quite a bit. I'm curious, what does that mean to your companies? Troy, your company just won the digital transformation award from Samsara, so maybe we'll start with you. I'm a health and safety risk management person, so not in the, you know, actual deployment of vehicles. I guess the digital transformation for us, the in-cab video technology has just completely revolutionized our protection of our assets. You know, people, we call them sue me stickers. The sticker on the side of the door, people automatically think the company is rich, so their neck hurts twice as bad as what it really does hurt when there's a wreck. Then also the fraudulent claims that become not fraudulent whenever we have video evidence to show a state trooper. That has just transformed our protection of our assets. Forgetting all that, the true safety of our employees, I mean, number one, period, you know, we never know the wreck we prevented because you hardly hear those stories. We believe, I mean, we have a 40% reduction in 18 months of preventable motor vehicle incidents. Yeah, some of it's the Big Brother's watching, but it's allowed us, for coaching, it's allowed us to do so many things that we never had a window into doing. Somebody's throwing a baseball with their son today because they didn't get in that wreck that we prevented. We'll never know what that wreck was, but statistically. We absolutely prevented it by the transformation. Yeah. Yeah. Excellent. I think, again, trucking is really an old school business, so it's ripe with opportunity to engage in digital transformation. There's obviously Samsara is helping us with that. But there's so many other aspects of our business that we haven't engaged with yet, that we can see massive improvement in, whether it be employee productivity, customer satisfaction, employee engagement. The opportunities, as I sit here and think about them, are almost endless. Yeah. Well, when I think about digital transformation, I think about just getting more data so we can make smarter decisions faster. And again, I know that the deployment is relatively new for XPO, but have you seen some areas where, you know, that enriched data or that faster data have kind of allowed for quicker decisions? Absolutely. Well, one of the aspects of the Samsara offerings that we use are electronic vehicle inspection reports. We used to have stacks of books that physically filled out by the driver before and after their trip. Now that's all been put in a digital format. On day one, first of all, we trained 14,000 drivers in two weeks how to use this new technology. When you think about 14,000 truck drivers, the average age around 55, they don't exactly embrace new and emerging technologies. To accomplish that in two weeks, hats off to the Samsara team. On day one of implementation, we were able to scan through 35,000 inspection reports, and we didn't get the entire fleet with that 35,000. 35,000 inspection reports, able to turn that into actionable repairs or needed repairs on equipment and improve uptime of the fleet just on day one. Yeah. Fantastic. Yeah, it's amazing, just, you know, moving paper processes into a digital format can create so many efficiencies. Same thing for us. Everything he just said, I mean, we're doing that too, and it's daily learnings. It's you know, expediting equipment across the country. I was talking to yesterday about this, you know, the deployment of equipment that may have sat idle. We know it's at Minnesota Limited, one of our OPCOs in Minnesota, Northern Minnesota, and we've got pickups or whatever that sat there for 30 days. Never cranked, and we never knew it because it's an asset just sitting there. Now we can redeploy that asset. We call that OPCO, "Hey, do you have these 3, 4, 10 truck? Bring that down to Atlanta, Georgia, and utilize it." We all know all the car lots across the country, there's nothing available, so we're having to run stuff longer, and then we just can't obtain units to run our business. Like I told you in the beginning, it's deployment of people and equipment. You gotta have a truck to pull it. It's really helped us and transformed us in a way we didn't really even think about. When we started this, it was about safety, you know, protection of assets from car wrecks, and then also, you know, where's our fleet at. As we continue to explore what the offerings of Samsara, it's just exploded. Back on equipment, you know, we have assets that have hour meters, engine runtime, big bulldozers and track hoes and stuff like that. Making conscious decisions around hour schedule maintenance, identifying that through the technology you guys have, and putting that either in Power BI or whatever and fully understanding, okay, we're gonna run this thing to 900,000. Usually, we retire assets at 450,000 hours. If you can't get the assets, there's no chips, right? We're gonna run it to 900,000. Well, we're identifying at 750,000 these motors are blowing up or whatever. So at 725,000, this CAT whatever dozer, we're stopping it. We're gonna get another piece of equipment in to run our business while this thing's getting the motor sleeve done, whatever. We never missed a day of work. All our people were working. The customer's happy. We would have never had that insight without having that totality of technology, so. It's a lot, but it ties together. I think we were talking about last night also. Artera has a number of operating companies, obviously, and that ability to kinda see the assets, not only within each operating company but across all of them. You know, even benchmarking or comparing utilization rates across. Yeah. We just made a decision, Springfield, Massachusetts. Looking at that and other thing. You know, people were crisscrossing this part of Massachusetts, and it's like they had an office here and a place here and a yard here. You just looked at the map, and it put a yard right here. Make somebody happy with a rental, a property owner. All of a sudden we save 500 miles a day times however many gallons of gas. I mean, you know, the centralization of people. There's a lot of things that we've learned along the way, and it's helped us a lot. Yeah. Yeah. Fantastic. One of the things we're really proud of is again, you know, being a multi-product platform. I know, Tony, when we won the business with you guys, you had been using other vendors for a number of those. Can you tell me a little bit about sort of the consolidation of all of those products onto a single platform and, you know, where that's maybe helped you guys? Absolutely. There's a number of aspects where it's really propelled our business. When I think about integration with other systems as well, I think about Kronos timekeeping systems, M5 maintenance software, and how Samsara helps us integrate with those existing systems and even complement and improve those systems as well, give us real-time feedback. When I think about the telematics of the equipment, real-time feedback on tractor performance, employee performance, which leads to employee engagement as well. When I think about future state, again, we're in the initial innings of the relationship. When I think about integration with other systems, whether it be HR and payroll, I think the ability to expand the relationship and improve performance for our customers and for our employees. When I say I'm really talking about engagement of our employees, there's just lots of room to go over. Yeah. Fantastic. Yeah. Again, I can't say it a whole lot more. I mean, same thing. You know, I gotta say the implementation back to the start was very important. We keep talking about tech, and I know what the award is, but the personalization of Samsara, we had, you know, all these other competitors we looked at. We looked at others, and you guys clearly were the best, and that's why we went with you. It wasn't just the technology, it was also the people behind it. Bobby did a tremendous job educating us on it, and then your back office people. You know, you can go a long way with technology, but you got to have the people, you know, to really. I'm not talking about the sale of it, but truly to, hey, this is what the product does, and it's genuine. He did a great job. Y'all did a great job of that. Yeah. Yeah. Appreciate that. Yeah. I've got to touch on that as well, so I appreciate you bringing that up. This wasn't an instance of where we purchased hardware, software from an organization. It was based on multiple meetings, multiple rounds of meetings, feedback from us about what we're looking for and what we could accomplish, as well as ideas from the Samsara team on how they can improve on the ideas we're bringing to them, led to the ultimate solution. It's a very entrepreneurial relationship, and that's one of the cornerstones of our business. I see this continuing to mature and both organizations challenging each other to get better product, again, for our customers and our employees. Yeah. Fantastic. Tony, you mentioned something that, I wanted to touch on as well. You're talking about the integrations and how Samsara system is integrating with a lot of your back-end systems. I guess stepping back from Samsara, and obviously, we've been spending a lot of time, you know, trying to get our app marketplace, and you heard Kiren say we're 150-plus at this point. Even taking a step back from Samsara, can you think about integrations that would be beneficial in the future? Maybe how important are integrations to your organization? Maybe, Troy, if you wanna start that. You know, the whole driver log, all the other things that is really not necessarily in my wheelhouse with respect to the DOT side of the house. Of course, looking out here at all the technology we have at this showcase, it's endless, the things that I think that we can benefit from. On the safety side of it, and risk management side of it, you know, there's nothing but upside. We have a superior negotiating position with our insurance companies now. Well, you know, they continue. You all know this. You go get your State Farm bill or whatever, and your premium went up, right? You really don't have much defense. Well, that's the market. Well, we're insuring 7,000+ vehicles, and our insurance is going, "Wait a minute." You know, we've employed all these processes. We've gone into this agreement with Samsara, and it's a heck of a negotiating capability for us. So that may not be a technological coupling, but it couples to our health and safety program that we sell to our customers all the time because they won't let us on their projects if we're unsafe and hurting people. So it's the whole thing. We look forward to continue the, as you said, technology growth and growing together to get better because we're gonna challenge y'all while y'all challenge us. That's the way it works. That's the way, that's the way we like it. Excellent. I'd like to touch on that for that question. Yeah, please. Yeah. Because as you're having that conversation, I think about integration with HR and payroll. There's still lots of paper forms that are used in the LTL industry, particularly for our drivers that work at night. They've got tractor hours. There's only so many hours they can work over the course of a day and over the course of a week. We have to audit to that. It's a lot easier to audit if you have it in a digital environment, right? Not all those forms are in a digital environment now. I think about asset utilization and identification and inventory. We talked about the over 9,000 power units. Well, there's 30,000 other pieces of equipment that we utilize every single day in our operation that we want greater control over their utilization, their uptime, their maintenance schedules, et cetera. A lot of that is in disparate software IoT technologies, if you will. Throughout the company, as well as paper. Being able to get that onto a single platform really will pay dividends. Again, not just from an uptime perspective, but from an employee satisfaction perspective as well. Keep in mind that real estate is the office environment for most of our employees. Yeah. Fantastic. Any comments on just the future sort of digital transformation journey that your companies are on? What's sort of next on the horizon? Tony, I don't know if you want to start that? There's many different areas. When you think about your in your personal lives and some of the deliveries you get to your home, you don't have to stand there and sign a receipt of any sort. It just shows up at your doorstep. We like to mimic that in the LTL environment. We still have paper delivery receipts. The industry is used to that paper. To get the industry as well as our competitors onto a digital environment will pay huge benefits from a productivity standpoint, again, and a customer satisfaction standpoint as well. There are many other areas of the business where digitization will help improve productivity, improve satisfaction, and profits, by the way. For us, same thing. You know, we learned a lot with fuel prices in the past year and a half, and being able to really understand that, apply that to the work we're doing with our customers, and then, you know, going back to them and having data to show them, "Look, we've got to have a rate increase. You know, we could not possibly have anticipated this escalation in pricing." And it's not, you know, for bottom line improvement for us, it's to stop erosion. That's one piece of it that helps us to really put things together. The other thing, you're talking about technology too, HR and. We have driver logs. We have people. If they're in a 2500 series truck pulling a trailer, they're just like an 18-wheeler driver. They've got to have hours of service, all that stuff. We're on the pathway too with our HRIS system, our ERP systems, tying all that together. Samsara is gonna tie back to that as well 'cause you've got to have the data to for audit and, you know, paying people as well as whenever the auditors come in. Same thing. It ties. It's not there yet, but y'all are a partner in that for us. Yeah. Yeah. Wonderful. I have to ask the question. If you had a peer come and ask you about, you know, they say they're evaluating Samsara, what would you tell them? Maybe Troy. I'd go somewhere else. No, it's, I'd tell them everything that I just told y'all. I mean, you know, it's just from the heart. You know, when you see, I guess more than anything, again, the HSE side of it, when you see those. I've seen some wrecks that have happened, and I've seen some reactions that kept people from getting in wrecks. We can all resonate with it, that, you know, we have parents, we have kids, grandkids, we all wanna see them again, and we all want our employees to go home. I'd make sure to express that to that person that's looking. Then back to the piece that I talked about with Bobby and your people, you know, easiest group to work with. I felt like in some cases when we were going through that 20 months ago or whatever, analyzing who we're gonna pick, there was some salesy pieces to it that weren't real. You know? The reality of, hey, we're here for to be a partner with you in this journey, and you guys provided that. That's crucial. Yeah. Yeah. Great to hear. First and foremost, I would tell them to challenge the Samsara team. Challenge the team nonstop, because your team comes up with some really good ideas and twists on what we're originally thinking about in terms of implementation. We were thinking about installing hardware. There were a lot more things around the installation of cameras and cabs that will help drive our business forward, but it came through that collaboration, right? My first bit of advice is continue to challenge that team, 'cause it's a good management team in place. Appreciate it. Well, gentlemen, I wanna thank you for your time sharing your experiences. Yeah, certainly we've learned a ton from working with yourselves and your organization, and really appreciate the partnership and looking forward to more good years to come. Us too. Thank you very much. We do as well. Thank you. Excellent. All right. Thanks to Tony, Troy, and Andy. Nothing like hearing it directly from the customer's mouth. Dominic Phillips, CFO. I've got about 20 minutes of prepared remarks, and then we'll bring Sanjit, Kiren, Andy back up. We'll do some Q&A, and then we'll let you out of here. Theme of my section is driving durable and efficient growth. Before I get into the meat of the content, I really just wanna level set with where we are today. We had our Q1 earnings call a couple of weeks ago. We ended Q1 at $607 million of ARR, growing 59% year-over-year. Really, we've been able to achieve this scale and growth in a short period of time because we're having success across multiple fronts. We sell to many different customer segments, small, medium, large. We're selling into multiple geographies, North American countries, European countries. We're selling many products at scale on our platform, and we've got a really nice mix of net new ACV coming from new logos, as well as expansions to our existing customers. While we're excited about our performance on a standalone basis, we're even more excited about how our relative performance stacks up. $607 million of ARR growing 59% year-over-year, that combination of scale and growth puts us in the top five of enterprise software companies. What's even more impressive is that we've been able to achieve that scale in record time. Samsara was started in 2015. We didn't actually start selling to customers until the beginning of 2016, which means that we've been able to achieve this scale, $600 million of ARR, in less than seven years. I often joke we're like the size of a teenager, but we're the age of a large child. We've been able to achieve that kind of scale and growth in such a short period of time because we're succeeding across multiple fronts. All right, so that's a little bit about where we are today, but what we really wanna share with you is why we think that growth is gonna be durable for many years to come, and it's for all of these reasons listed here. The first is that we have a horizontal platform and a set of applications that's applicable to more than a dozen end markets that represents more than 40% of global GDP. The second is that our products address a very large market opportunity today that's growing really quickly, and we've got a lot of opportunities for additional TAM add-ons. The third is that while we sell to many different customer segments, we're seeing a lot of momentum within our large customer segment. Samsara is purpose-built for large customers with complex operations. The fourth is the majority of our customers are subscribing to multiple products, which opens up a lot of great cross-sell opportunities for us in the future. The last driver of durable growth is expansions into our existing customer base, which creates a nice floor for long-term durable growth. Right, let's get into each of those items. Again, this first one, a horizontal platform serving a diversified set of end markets. As you've heard today, our customers are the world of physical operations. They make up 40% of global GDP, and historically, they've been very underserved by technology, and they're in the early innings of digitally transforming their businesses. As Kiren showed you, we've seen this in our consumer lives, we've seen it in enterprise, and now the physical operations companies are in the early innings of transforming the way they get work done, and Samsara is here to partner with them for that. This pie chart shows our ARR mix by end market, and you can see 22% of our ARR comes from the transportation or trucking segment. I think many investors, maybe up until today, thought that 100% of our business came from this end market, and we were more of a vertical specific software solution. You can see that almost 80% of our ARR comes outside of transportation. Construction, manufacturing, energy, utilities, state and local government, et cetera. You can get a visual representation of our customers and some of the assets that we're collecting data from in these photos on the right. What we really want investors to appreciate is that this is a horizontal platform in applications that's applicable to many different end markets. Just like many software companies are monetizing knowledge workers or IT professionals or HR professionals, developers across many different industries, we are monetizing physical operations assets that apply across many different end markets. The second is that our products are addressing a very large market opportunity today. From a top-down perspective, it's estimated that our products address a market that's $55 billion growing to close to $100 billion over the next three years or growing at a 21% CAGR. Within our market opportunity, it's made up of three different product segments, connected fleet, connected equipment, and connected sites. The largest of which, connected fleet, is estimated to be $33 billion, growing to $64 billion over the next three years or a 25% CAGR. Not only are these really large market opportunities today, but they're also growing really fast over the next few years. The growth is really being driven by two things. The first is more connected assets. Sanjit mentioned that only 50% of vehicles, for example, have internet connectivity today. We expect that will increase in the future. The second is more dollars per asset, more opportunities to monetize these physical operations assets with more software. That was a top-down view of our market. We also looked at this from a bottoms-up perspective, and we really focused this slide on just the connected fleet opportunity. Again, it's almost 90% of our ARR, and this is really where Samsara started. We view connected fleet as the backbone into the world of physical operations. The commonality between all of these end markets and customers is that they have commercial vehicles that are driving around, they're transporting goods, they're transporting people, they're out in the field doing field services work. These vehicles are the gateway to the world of physical operations. In this table you can see on the left, there are almost 100 million vehicles in North America and in Europe, commercial vehicles. Of those approximately 100 million, we address about 70% of those in the mid-market and enterprise customer segments. We've stripped away kind of the low-end owner/operator set of commercial vehicles, which leaves roughly 70 million vehicles remaining. We have two products that we sell under connected fleet, video-based safety and vehicle telematics. We sell for about a list price of about $90 per vehicle per month. When you do that math from a bottoms-up view, the connected fleet opportunity we estimate is over $70 billion. Whether you're looking at this from a tops-down or bottoms-up view, connected fleet is a very large market opportunity that's growing really fast. I mentioned the first two reasons, more connected assets, more dollars per asset. The second reason is that there's a lot of opportunity for geographical expansion. The number of commercial vehicles in APJ and Latin America that aren't shown on here, we're not in those markets yet today, are many multiples what we see in North America and Europe. The third is that as we continue to build more concentric circles around connected fleet, that will open up more opportunities. We're already doing that in connected equipment and connected sites as well. The third driver of durable growth is our success with large customers, and we're investing heavily in this customer segment. From an R&D perspective, we did more than 200 software feature releases last year alone. As you've heard today, we have more than 150 applications or integrations in our app marketplace. The number of API calls from our large enterprise customers was 33 billion last year, up more than 4x year-over-year. We're also making a lot of go-to-market investments to address this customer segment. We're more than doubling the number of field sales reps we have. We're spending a lot more on account-based marketing. This conference, this is our first customer conference, is a huge pipeline driver for the large customer segment. All of those investments are driving a lot of success with large customers. We now have almost 900 customers paying us more than $100,000 of ARR per year. That's up 73% year-over-year and up more than 3x over the last two years. On the right, we have almost three dozen customers that are paying us more than $1 million of ARR a year. That's up 89% year-over-year and also up more than 3x year-over-year. We'll continue to focus on this customer segment. They have the ability to do larger deals, they have better unit economics, higher retention rates, and they tend to do more expansions over time, which is a more efficient sales motion. Because of those investments and success, we're seeing ARR mix shift to larger customers. On the left, you can see a comprehensive view of our customer count. We have about 30,000 customers in total, about half of which are the bottom of the pyramid in light blue that pay us less than $5,000 of ARR per year. While those customers represent half of our customer count, you can see on the right, they're only driving 6% of our ARR. The top half of the pyramid are core customers that pay more than $5,000 of ARR, drive 94% of our ARR, and that's increasing over time. Within core, again, the large customers, the top of the pyramid in dark blue, almost 900 customers, driving 45% of our ARR. We expect the dark blue ARR mix to continue to increase over time, and we expect the light blue ARR mix to continue to decrease over time. Fourth driver of durable growth is multi-product customers are driving more platform adoption. On the left, you can see our core customers. Only 29% of core customers subscribe to one product, which means the other 71% subscribe to two or more products. You can see at the top in light blue, almost one quarter of our core customers subscribe to three or more products. It's even more pronounced on the right-hand side with our $100,000+ customers. More than 90% of large customers subscribe to two or more products, and more than 50% of large customers subscribe to three or more products. This continues to trend well over time. The dark blue is getting smaller over time. The medium and the light blue continue to get larger over time as we see more multi-product adoption. We're also seeing multi-product adoption at scale. 46% of our ARR comes from video-based safety, 42% of ARR comes from telematics, and the remaining 12% comes from applications outside of the vehicle, driver apps, workflow, connected equipment, connected sites. Two things we really wanna drive home on this slide. The first is the largest product category that we have, the largest scale and growth is our video-based safety product. I think a lot of investors think that 100% of our ARR comes from telematics. That was our first product, but now video-based safety is our largest. We are more of an AI dash camera safety software company today than we are a telematics GPS company. The second point is that while 12% of our ARR is coming from applications outside of the vehicle, the customer penetration of the non-vehicle applications is far higher. Almost 50% of our core customers and almost two-thirds of our large customers are subscribing to a non-vehicle application today, which means that they're really just scratching the surface of what they can do outside of the vehicle. These are newer products, and we think there's a lot of opportunity for these customers to bring more of their non-vehicle applications online and into the Samsara cloud. The last driver of durable growth is expansions into our existing customers creates a great floor for long-term durable growth. The best metric to track expansions is dollar-based net retention rate. On the left, our Q1 net retention rate for core customers was 122%, and on the right, for large customers over $100,000 was 132%. Over the last two quarters, we've been north of 120% and 130%, and you can see that for both customer segments, it's trended up over the last five quarters, well above our internal target of 115% and 125%. We're still gonna maintain this target of 115% and 125% for now until we see more data, but we're really pleased with these trends. This is something that we'll update annually at Investor Days. Those are all of the reasons why we think the growth rate that we've demonstrated today can be durable over time. We're also very focused on growing more efficiently as we scale, and we think we can do it for these reasons. The first is that we have a subscription business model with really strong long-term unit economics. Second is that we have a 70% gross margin floor that provides a great foundation for long-term profitability. The third is that we expect to continue to get more operating margin and free cash flow margin over time as we scale to be a larger company. This first point, we have a very strong subscription business model. 98% of our revenue is subscription. Like most subscription business models, we spend money up front in the form of sales and marketing, and then over time, as customers pay us, they break even, and then they become profitable over the long run. We measure the unit economics of customers using a lifetime value to customer acquisition cost ratio, which has been more than 8x. Which means that for every dollar that we spend to land a customer, we're driving more than $8 of profitability over that customer's lifetime. This gives us a lot of confidence that we can continue to grow fast as we scale, but while driving toward longer term profitability. The second is that we've stabilized gross margins north of 70%. This is a profitability metric that we really track because it's unique to our business. We have costs like cellular data to send data from the physical assets to the cloud. We have supply chain costs. We have IoT costs. We really track this metric. Three years ago, this was in the mid-50s. You can see two years ago, it was 60%. We've done a really good job of optimizing our business and service in a way that we've been able to get over 70% for now seven quarters in a row. In the near term, we expect to be able to maintain low- 70% gross margin. Over the medium to long term, there's some opportunities for this to expand further, as we've listed here on the right side of this slide. The first three are really cost efficiencies for what we already have today. How can we get more leverage out of cellular, cloud, supply chain, and connected device costs? We think as we get larger, we'll be able to optimize those costs even more to show slight additional leverage in gross margin. The larger opportunity for medium to long-term gross margin leverage are the two items down at the bottom. It's how can we do more? How can we better monetize our business? The first is really software-only SKUs. Can we collect data directly from an OEM cloud versus having to provide an IoT device to collect the data in the cloud? Can we do more tiered pricing or bundled pricing to drive more monetization and revenue for the dollars that we're spending? We think that can drive more medium to long-term gross margin leverage. The third driver of efficiency is improved operating leverage as we scale. We think that we can get more leverage out of operating margin and free cash flow margin as we get larger. On the left, you can see we've improved operating margin by 85% over the last two years. On the right, we've improved free cash flow margin by 75% over the last two years. We're hyper-focused on continuing to give more and more leverage as we scale every year. I also wanna call out this row of numbers at the bottom of the free cash flow chart, which calculates the difference between operating margin and free cash flow margin for each of the periods listed here. Now, most software businesses get a benefit of free cash. Free cash flow tends to outpace operating margin because they're getting the benefit of deferred revenue. So collecting cash from customers upfront before they recognize the revenue. Now, Samsara has that advantage as well, but we also spend dollars upfront for things like IoT devices and inventory costs. Now, historically, the benefit of deferred revenue has effectively offset the dollars going out for IoT devices such that operating margin and free cash flow margin moved, you know, very, very closely together historically. You can see that in FY 2020 and FY 2021, the difference is very close to zero. In FY 2022, free cash flow margin started to diverge from operating margin, and the key contributor to that is the supply chain disruption. We are in a hyper-growth phase right now, and we are actively meeting all of the customer demand that's coming our way. To secure enough IoT devices and to have enough inventory on hand, we've spent more dollars because there's not enough supply to meet all of the demand in the market. You can see our free cash flow margin has started to diverge from operating margin. We expect that free cash flow margin will converge back into operating margin as the supply chain normalizes. You can get a visual representation of that dynamic in this bridge. This is our Q1, it's a bridge between operating margin and free cash flow margin. On the left, you can see operating margin was negative 18%, and then the green bar is the benefit of deferred revenue that we received. Then in red, you can see the dollars that went out the door for IoT devices to meet customer demand, as well as additional inventory, which ended with free cash flow margin of negative 36%. Again, in the supply chain normalized environment, we expect free cash flow margin will start to converge back into operating margin. Operating margin is really the leading indicator for free cash flow. You can see that in the guidance that we've provided. On the Q1 earnings call, we said that our FY 2023 operating margin is going to be -20%. In the additional modeling notes, we said that adjusted free cash flow margin would be in the mid- to high -20%. For the remaining quarters of this year and for the full year, free cash flow will be more tightly aligned to operating margin than it was in Q1. We really, again, think that operating margin is the right leading indicator for free cash flow in a supply chain normalized environment. It also provides better comparability versus other software companies that don't have a hardware component to their service. This is our Rule of 40 using operating margin. If you add our CY 2021 revenue growth and our CY 2021 operating margin, our Rule of 40 was 45% versus the median of 37% for the enterprise software universe. This is something that we're gonna continue to focus on going forward, balancing growth while getting more and more profitability in our business model. All right, last slide for me. You know, we've been public now for two quarters, about six months, and we've collected a lot of feedback from investors, a lot of questions, and we hope that we were able to address a lot of those questions in today's presentation. Here we just wanted to kind of hammer home the five key questions that we most often get. The first, again, is that we sell into a diversified set of end markets. We don't only sell into the trucking industry, we sell into 40% of GDP, and there's not one end market that makes up more than 25% of our ARR. The second is that our products today are addressing very large market opportunities, whether you're looking at that from a top-down perspective or bottoms up, these are large markets that are growing really quickly, and we have a lot of TAM add-on opportunities going forward. The third is video-based safety is our largest product, and it's our fastest-growing product. The fourth is that while non-fleet applications represents 12% of our ARR today, a much larger percentage of our customers are using non-fleet applications. Again, almost 50% of core customers and almost two-thirds of large customers are using applications outside of vehicles. The last point here again is that we think that operating margin is the right leading indicator for free cash flow, and free cash flow will start to converge back into operating margin in a supply chain normalized environment. That's it for me. We're gonna take a 2-minute break. We're gonna bring some chairs up and we'll get into Q&A. Perfect. We're turning to Q&A. If you have a question, please raise your hand and start off your question with both your name as well as what firm you're from. That's all one here. We ready to go? Alex first. Yeah. Hey, it's Michael Turrin, Wells Fargo. First, thanks, everyone, for hosting a very informative event. Since it's your first-ever investor day, I wanted to start with Sanjit. Last we looked between yourself and John as founders, you own more than 40% of the company. Can you just speak to alignment with shareholder values, your longer-term priorities, and just the importance of continued ownership as a founder? Yeah, absolutely. I talked about this in my section of the presentation. We're building for the long term. John and I are large holders of the company. We plan to continue that. Just to get a little bit specific, we have no plans to sell any stock in 2022. We will eventually start to diversify. You'll see 10b5-1 plans from us, but it's gonna be low and slow. It's a slow, gradual process. No big moves. For us, we are just starting to build. We are very excited for the long term. Voting shares. From a voting shares perspective, we do have high-vote stock as well. Okay. No likely change in control. Thank you. Hey, guys. Alex Zukin from Wolfe Research. I second the commentary about a very strong analysis. I think you guys really nailed it. Maybe just the first. I'll ask two questions. The first one is, you know, a lot of investors talk about a macroeconomic, you know, recession, and yet a lot of the commentary here, it feels like your ROI is growing as inflation pressures rise. I just wanna ask the question: How are you starting to see that in your top of funnel, your customer conversations? On the impact to numbers, right, does that give you more conviction? Does it drive, you know, a desire to invest faster? For Dom, I guess we talk about operating margin as a leading indicator, and it makes a lot of sense given the working capital characteristics. When do we start to approach? What's the longer term plan for break even and actual positive operating margins? Maybe I can take the first part. Sure. Yep. Alex, I think in terms of us being an important tool in operations, especially during these inflationary times, you're absolutely right. We hear this from customers. They're using this data to optimize fuel spend. You heard it on stage today. They're using it to optimize assets, so run their assets longer, and they're using it to improve worker retention and labor turnover. It's a vital tool. As far as whether that's accelerating for us or decelerating, it's hard for us to gauge. You've seen the very high growth rates we've had on top line. We're still seeing just strong demand. For us, I think, and Andy probably has even deeper perspective, we're hearing from customers this is an important tool, and they want this data to better understand their operations. Whether it's because of inflation or just this kind of big macro generational shift towards data, we wanna be part of it. On the investment side, I think we're investing as aggressively as we can into this opportunity. I think we reduced investments during COVID and we're playing catch up. I think a lot of you are aware that we're really trying to increase our capacity, and we've talked about our headcount growth rate will be higher this year than it was last year, and so we're really going into this opportunity. I think it was really telling what you heard from customers is that they're not seeing slowdown in their customer end markets. Really, they're being limited by what I just said, like, they can't get enough drivers or they can't get enough kind of assets to meet all of the customer demand that's out there. You know, I think that's a much better position to be in than not having enough customer demand. On the profitability point, you know, we're really focused on continuing to show more and more leverage. As we went back and looked at our guidance for the rest of the year, we were able to not only raise our revenue guidance, but to also find additional optimizations to improve operating margin and free cash flow margin for the rest of the year, and we're gonna be really focused on that going forward. I don't think we're ready to say a specific date of when we're gonna be break even, but it will be better year-over-year and, you know, we're still probably kind of, you know, a few years out. Derrick. Great. Thanks. Derrick Wood at Cowen. The $33 billion TAM today is quite large for, you know, companies that have yet to go through digital transformation. Can you speak to. I mean, there's obviously gotta be a lot of legacy technology out there. There's a lot of replacement opportunity for you guys. I know we've talked about analogies with ServiceNow and how they went through that cycle with BMC and others. Could you just talk about the competitive landscape, the replacement opportunity? I was talking to a partner earlier today, and he was talking about kind of a lot of demand around the ELD mandate 3-4 years ago, and that maybe we're gonna see kind of a renewal cycle, which would give you guys an opportunity to displace more. Could you just talk about that? Do you want Kiren and I to start off? Yeah, sure. I'll take this one. You know, when we look at the TAM in the market, we see a lot of legacy technologies, companies that you know, really built their products 20-odd years ago and didn't invest to keep them modern, right? That's a lot of what we're seeing is customers looking for a modern solution that gives them the data that they need. You know, that's on the telematics side. On the video safety side, it's worth remembering that you know, less than 5% of the commercial vehicles on the road have a connected dash camera installed inside them, and far fewer have cameras with AI that can do types of things like detect distraction and attentiveness. We see a lot of legacy technology as well as greenfield, particularly on the dash cam side. In terms of ELD, you know, I think it's an important reminder that ELD compliance for, you know, heavy trucks it applies to a fraction of our customer base, and a minority of the customer base. We see that as a feature that many of our customers need, but they're really looking for that holistic solution, and we provide that, including a great ELD for those who need it. Got it. If I could just do one follow-up. The TAM in Europe is bigger than the U.S. and so what are you guys? What's the plan over the next few years? How are you thinking about going into the European markets? Thanks. Andy, you wanna cover that one first? Yeah. Happy to. We entered Western Europe what, 10, 12 quarters ago, started in the UK. We've branched across most of Western Europe today, but we're really focused on kind of the major economies over there. We do have plans to continue to expand, but yeah, I think you said it, we see the TAM over there as equally, if not slightly larger. I think what's most important is it's very consistent. The pain that operations customers are feeling over there are very, very consistent with the pain they're feeling, you know, this side of the pond. What's nice about that is we don't have to change the product very much to go have success over there. At the same time, I'd say we're being cautious in, you know, how quickly we invest. We're making sure it works before we continue to double down. Great. Let's go with Matt. Yeah. Hey, thanks, guys. Matt Pfau, William Blair. Just kind of thinking about longer-term trends with vehicles, and we think about electrification or self-driving, how is your platform set up to handle those situations? Are they benefits? Are they headwinds? How do you think about that? Sure. Maybe I'll start, and Kiren, if you want to build on. These are two very big long-term trends in vehicles. EVs are happening already, and so we've seen EV adoption here in the U.S. lag a little bit of what we've seen across the pond in Europe, but it's a great indicator of what's to come. In general, our strategy is to integrate with EVs and show that same kind of data that you saw in Kiren's demo, but for electric vehicles in our dashboard. You can see that today, state of charge, we can actually also tell you which of your vehicles are maybe suitable for electrification first. We can do that based on data. We know how many miles you've driven, you know, if you have, basically fewer miles for certain parts of your fleet, we'll identify those as candidates for electrification first. We wanna help our customers with tools for that. I think we're gonna see that play out over this coming decade, by the way, in terms of how quickly these customers can afford to replace their assets. That's the EV side. Kiren, do you wanna cover autonomous or? Yeah. You know, we're big believers in autonomous, and it's very much a question of when, not if, it applies to our customers. We see these as really amazing data sources. If we think about the data in our platform, how we're able to find new uses for that to impact our customers' operations. All these autonomous vehicles have so many sensors, cameras, and our approach will be to integrate with them to bring that data into our cloud, the way we're doing through our OEM integrations with conventional vehicles today. You know, when we look at how our customers are using our vehicle or how customers are using their vehicles and driving them as a part of it, there's operations that happen on the front end or the back end, right? Whether that's loading a vehicle, whether that's performing, you know, construction or field services like we heard from Artera and XPO. These problems of driver productivity, of safety, efficiency, you know, they extend to the adjacent areas of operations that we're serving today. We see them as a way, as we see EVs, we see autonomous vehicles as ways to have more data to solve those problems. Let's go with Michael real quick. Hey, thanks. Michael with Wells again. You mentioned the stat on just less than 5% of vehicles with dash cams currently. Safety is still the largest portion of your ARR currently. There were some useful testimonies from customers around this, but maybe you can just expand on things you can do to remove any resistance from drivers in the case there is some there. Obviously, we've heard there's just tightness. The turnover rate among the industry is exceptionally high. Are there lessons you've learned or ways that you can remove friction to just make that adoption rate meaningfully higher? I think that's a great point to highlight, which is this is new technology that you're now inserting into the cab. There's a camera, and there's privacy concerns. I don't know if you were part of the main stage keynote today, but in our interview with Michael, who joined us from Liberty Energy, he was talking about the check the camera effect, right? The exoneration, in other words. Because more often than not, these drivers, these field techs, they're not at fault when they're out and they get in an accident. Being able to show HD video that they were not at fault, they were being professionals, they did everything they were trained to do, is what gets you the win. That's something that Andy's team, I think, has done a great job helping train customers to look for and how to do the change management. I don't know, Andy, if you wanna talk a little bit about that. Yeah. It's easy to look at it and say, "Why isn't it going faster, and what are the inhibitors?" And we are. We're out, you know, evangelizing and training every day. If you just take a step back, it's actually been a pretty massive push, and we're still only, you know, less than 5%, right? So absolutely it's getting the drivers comfortable. The other side of this is if you look inside the companies, right? What we're seeing is from the insurance industry, there is a huge push, right? Insurance companies are now going to their insureds and saying, "You need to have this technology in, and we're gonna reduce your premium. We're gonna subsidize it in some cases." But they're almost to the point of mandating it because the ROI is so strong. It lets them be more accurate in their underwriting. It's obviously a win for the customer. I think we're gonna continue to see this just huge tidal wave push, in this direction. We also talked about the. We showed the safety score and how we've been able to gamify this. The most successful customers are using that safety score, and they're taking some of the savings that they get from lower insurance premiums or lower accidents, and then they're compensating or incentivizing their drivers. They make it, you know, a proactive thing where they want to drive safer and show their safety scores as a way to get some incentives. Let's go to Bob. Hi. Thanks. This is Bob from Morgan Stanley. Just, in your go-to-market sales motion, one thing I thought you articulated very well is going from the see, try and buy setup. It seems to me that you initially moved from telematics as the landing product to video-based safety is also a landing product now. Are there any instances where the apps, the workflow, the equipment and sites are also a credible landing product at this point, or are they kind of in a perpetual expanding product side rather than the landing product side? Andy, do you wanna start with that? Yeah, I'd be happy to. It's a great question. I would say that, you know, again, from our perspective. We've only been at this for seven years, right? The products that we have had, you know, the longest time selling, right, the most mature products are the ones we land with the most. That having been said, the newer products such as sites and workflows, we're increasingly landing with more often. The one slide I showed where, you know, all these entry points, that's the way we approach it. Any insertion point into an account that we can get. The benefit of the customers we're selling to today, our technology really weaves into the fabric of their operations, right? The downside of that is if there's an incumbent in there right now, sometimes we need to wait. We need to wait for a renewal opportunity for us to get in. The nice thing about our newer technologies is they don't tend to have that same dynamic, right? We can enter with a sites product or a workflow product because they aren't currently under contract. I think the answer to the question is, we're seeing an increasing number of times that we can insert with those newer products as we go forward. Now, I would just highlight, equipment is among those newer products and more mature, and we have seen a couple of lands with equipment that have then over time turned into safety, expansions. We can kind of land in any direction, I guess, is the point. Hi, Jacob with Goldman here. Y'all mentioned pretty quickly growing TAM, and there's like additional TAM add-on opportunities, I believe. Could you all kind of provide more color on where those add-ons are coming from and how big of an opportunity they are? Yeah, I think we called out specifically like geographical expansion is a big opportunity for us in the future. I think we're very focused on North America and Europe in the near term, but again, many multiples, the number of commercial vehicles outside of North America and Europe, and then non-vehicle applications. We've really just started with equipment and sites. We take that concentric circle approach, and there's a number of additional physical operations assets beyond equipment and sites that we could ultimately pull into the Samsara cloud as well. Quick, up here. Hi, I'm Thomas from Gilder. In your TAM calculation, you broke out that you get to, like, $90 per month per vehicle, just across, like, the average contract value. When you mentioned that the majority of your customers have more than one product, it kind of led me to wonder what the actual, per vehicle, per product, like unit economics, like calculation was and maybe how you see that growing 5-10 years in the future. I was just hoping you could clarify on that. I would just like to point you to, again, the list price of those two products combined is roughly $90 per vehicle per month. Based on the size of the customer, there could be discounting tied to that, but I think that's what we would point you to. All right. Let's go with Alex. Thanks, guys. Alex Zukin, Wolfe Research. Just piggybacking on that question, you guys made a lot of product announcements today, feature functionality. Maybe for Sanjit and for you, Dom, how do you monetize all of the innovations that you're bringing out? Is it gonna be SKU level monetization, good, better, best pricing? Over what period of time do you expect this. It seems the constant topic of conversation, but over what period of time do you expect that $90 to kinda average up, and where is it in, you know, call it three to five years? Do you wanna talk about pricing? Kiren, why don't you start first. Yeah, sure. We can move. We've really been focusing on customer acquisition. We're in a very large market. We wanna make sure we're landing new customers without the economics. We have been adding a lot of functionality to the product. We do look at opportunities to optimize the pricing over time, as well as to take some of the features that we've been building and expand them into add-on products. We look at areas like good, better, best pricing with premium licenses. We look at some of the features that we're including with the product that we could expand into full-blown products with independent SKUs. These are all the kinds of things that we look at. We continue to run the customer feedback loop and make sure that we're focusing in the areas that are really bringing value to the customer's operations. For right now, we're not. These are, again, I talked about 200 software feature releases last year alone. Those go into the SKUs that we have today. That's an opportunity for us to start to monetize the R&D efforts that Kiren's team is ultimately making. Whereas today, if you're licensing telematics, you just get access to those, or if you're licensing the safety product, you just get these added, you know, benefits. I think we've been very focused on more assets on the platform, and over time, we need to also think about our monetization strategy. Let's go with Matt. Yeah, thanks. Matt, William Blair again. To follow up on that, you guys have this ecosystem with your App Store. How do you think about where you partner versus where you maybe bring that functionality in-house? Then what's the strategy with monetization, with the partnerships and the connections that you're building? Yeah, I'll take that one. I highlighted we have over 150 partnerships now in our app marketplace, and they span a very broad range. We talked about some of the OEM integrations, Kiren referred to on the vehicle side. We partner with ADP on the payroll side, with fuel card providers, WEX, FLEETCOR and others. For the most part, the partnership strategy is around adjacencies. When we hear from customers, "We're really happy with our fuel card provider, we would just love to see that information tied together with Samsara vehicle location, so we can help curb fuel theft." That's the sort of hallmark for us when we bring those partnerships together. Sometimes we hear from customers that, you know, there's a legacy provider, and we want to integrate the data, but we're not especially happy with them. You start hearing that pattern a couple of times, and then you say, "Well, is that an opportunity for Samsara?" Because the customer is frankly underserved. That's the philosophy that we take. We don't undertake new product areas lightly, but Kiren highlighted some of the workflow innovations that we brought to market. We didn't see anyone else in the market serving the customer the way that we thought we could, and that's how we philosophically approach it, is where can we differentiate ourselves? Where can we better serve the customer? You know, there are so many of these adjacencies that we can't go in all those directions, so it makes a lot of sense to partner. Today, we don't exchange revenue with them in terms of charging them any kind of fee to partner with us. We want our customers to be able to get as much value from the data and use Samsara as that system of record, that source of truth. Let's go with Derrick next. Derrick Wood at TD Cowen. Sticking on that same line of thinking, the just build versus buy thought, just would love to get your take, especially with valuations that have changed quite a bit. I mean, you got you guys have this horizontal platform, so many different industries, a lot of adjacencies you can move. You've already got five core products. How do you think about M&A at this point? Any kind of natural adjacencies that seem obvious that you'd look to get into from here? Sanjit, why don't you start with that one? Sure. We have long-term ambitions for the company. As you talked about, we're building for the long term. If you think about these physical operations, there's so much you can do there. We have a multi-year roadmap that goes out quite some ways. For us, it's first about solving customer problems. What can we bring onto the platform, whether it's workflows or integrations or new AI models, new benchmarking data that will help these customers out? For the most part, this industry has not been invested in from a tech perspective, so there just are not hundreds of startup companies to take a look at to bring onto the platform to basically do some of that kind of more granular M&A. That's why we've invested in organic. All the five products we talked about are organic. We built them internally. Now, that being said, if there is an opportunity for us to leapfrog a little bit to accelerate, we will take a look at it. We've got our eyes and ears open. Mike has a team that is also focused on that. That's, we're not opposed to it or philosophically wired one way or the other. It's been a pragmatic thing where there just aren't a ton of companies to go buy. Let's go with Alex. One question I get from investors oftentimes around how important is the hardware component to the future of the business? You're announcing a lot of partnerships with OEMs. You know, we can imagine a world where more structurally the vehicles come connected. How do you guys think about that in the model? How important, you know, in five years, are we even talking about a hardware device connected to these vehicles and that, you know, call it headwind on free cash flow? Or is there some incremental benefit that you derive from having that would be the question. Kiren, do you want to start us off on that? Sure. We see hardware as a means to an end, which is getting clean data into our cloud that we can analyze. We're agnostic whether that data comes from our IoT devices or from cloud connectivity that's built into an asset. As we talked about earlier, we are seeing some of the newer assets have cloud connectivity built in, and so we're partnering with Ford, Volvo. We launched new partnerships with GM, Stellantis today. We see that as a really exciting trend, right? It's great for the customer because it's easier for them to connect their assets into Samsara, and obviously great from an M&A governance perspective as well. A lot of the assets used in these operations, you know, do have a long life. When our customers go to deploy Samsara, they're connecting brand new equipment as well as equipment that might be five, 10 years old as well. We see the IoT devices having a role to play for the foreseeable future, but we do see that mix shifting over time, potentially to more as more and more of these devices are connected to the cloud. All right, that's the last question. Let's go. Hi. Nino from Siewert. Just quickly following up on that, like how does your economics, I guess, differ when you do, you know, the OEM-based model versus, you know, your own, IoT device? Yeah, I mean, a lot better. Our gross margins are obviously better and our free cash flow is obviously a lot better as well. It's a small percentage of our licenses today. It's, I think, more than 10,000 in total licenses, it's a small percentage. We are seeing it. Again, I think the point though is that we're agnostic to it, and we just wanna get the data into the cloud and as customers have assets that already have pre-built connectivity, and that is the best path for them to get the data in the cloud, we're happy to use that. This was an incredible conversation. You know, I hope you all leave today understanding Samsara just a little bit better. Thank you everyone again for joining us, and we'll see you again soon.