Q4 2025 Samsara Inc Earnings Call

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[music] and our customers demand data in real time, the vision is simply mix shipping frictionless, the Samsung platform and the openness of the stack I've really been critical for our vision.

As just as the largest private freight carrier in North America, serving nationwide footprint.

We started realizing the benefits really day one.

Our customers demand data in real time, the vision is simply make shipping frictionless, the Samsung platform and the openness of the stack of really being critical for our vision. We automated a lot using same source functionality will use a lot of the work flows looked a lot of custom integrations.

Yeah.

That's just as the largest private freight carrier in North America, serving nationwide footprint.

We increased our automatic departure and arrival by over 40%.

We started realizing the benefits really day one.

That really leads to less manual entry of data and more time driving.

Our.

Customers demand data in real time, the vision is simply make shipping frictionless, the Samsung platform and the openness of the stack of really being critical for our vision.

Happy employees own point that will produce for you and make the customer happy and that's what we're all about when we made the decision to implement it.

We automated a lot using same source functionality, we used a lot of the work flows looked a lot of custom integrations.

He was our drivers in our fleet personnel that made the decision the drivers who tested it.

We increased our automatic departure and arrival by over 40%.

Sam: Put Sam Sir up top.

That really leads to less manual entry of data and more time driving.

Sam: Go live was 10000 vehicle gateways.

Sure.

Sam: 6500 cameras that needed to be installed anytime you are talking about numbers of that size, it's enterprise effort.

Uh huh.

Happy employees or employee that will produce for you and make the customer happy and that's what we're all about when we made the decision to implement since our it was our drivers in our fleet personnel that made this decision the drivers who tested it.

Sam: I think the partnership between <unk> and <unk> during that timeframe was really instrumental if I had a question day or night somebody was there to answered.

Put same sir up top.

Sam: <unk> plays an important role really is that source of truth from a data perspective.

Go live was 10000 vehicle gateways, and 6500 cameras that needed to be installed anytime youre talking about numbers of that size. It's an enterprise effort I think the partnership between <unk> and <unk> during that timeframe was really instrumental if I had it.

Speaker Change: We really see Sam Sarah as a partner it feels like we're really aligning our roadmaps to really make sure. We are going in the same direction with the same vision.

Question day or night somebody was there to answered.

Speaker Change: Good afternoon, and welcome to <unk> fourth quarter fiscal 2025 earnings call.

Since our plays an important role really is that source of truth from a data perspective.

I'm, Mike Chang <unk>, Vice President of corporate development and Investor Relations joining.

We really see <unk> as a partner it feels like we're really aligning our roadmaps to really make sure. We are going in the same direction with the same vision.

Sam Sarah: Joining me today are Sam sorry, Chief Executive Officer, and co founder Sanjay <unk>.

Speaker Change: <unk>, our Chief Financial Officer, Dominic Phillips.

Speaker Change: In addition to our prepared remarks on this call additional information can be found in our shareholder letter.

Good afternoon, and welcome to <unk> fourth quarter fiscal 2025 earnings call.

Speaker Change: Press release, Investor presentation, and SEC filings on our Investor Relations website at investors not same sorry about com.

Mike Chang: I'm, Mike Chang same store as vice President of corporate development and Investor Relations.

Speaker Change: The matters, we'll discuss today include forward looking statements.

Speaker Change: Joining me today are Sam sorry, Chief Executive Officer, and co founder Sanjay <unk> <unk>.

Speaker Change: Actual results may differ materially from those contained in the forward looking statements and are subject to risks and uncertainties described more fully in our SEC filings.

Dominic Phillips: Our Chief Financial Officer, Dominic Phillips.

Dominic Phillips: In addition to our prepared remarks on this call additional information can be found in our shareholder letter.

Speaker Change: Any forward looking statements that we make on this call are based on assumptions as of today March six 2025, and we undertake no obligation to update these statements as a result of new information or future events unless required by law.

Dominic Phillips: Press release, Investor presentation, and SEC filings on our Investor Relations website at investors not same sorry about com.

Dominic Phillips: The matters, we'll discuss today include forward looking statements.

Speaker Change: During today's call, we will discuss our fourth quarter fiscal 2025 financial results wed.

Dominic Phillips: Actual results may differ materially from those contained in the forward looking statements and are subject to risks and uncertainties described more fully in our SEC filings.

Speaker Change: We'd like to point out that the company reports non-GAAP results. In addition to and not as a substitute for or superior to financial measures calculated. According to GAAP reconciliations of GAAP to non-GAAP financial measures are provide a press release and investor presentation.

Dominic Phillips: Any forward looking statements that we make on this call are based on assumptions as of today March six 2025, and we undertake no obligation to update these statements as a result of new information or future events unless required by law.

Speaker Change: We will make opening remarks diamond highlights for the quarter and then open the call up for Q&A.

Dominic Phillips: During today's call, we will discuss our fourth quarter fiscal 2025 financial results wed.

Sanjay: I'll hand over the call to Sanjay.

Sanjay: Thanks, Mike and thank you everyone for joining us today.

We'd like to point out that the company reports non-GAAP results. In addition to and not as a substitute for or superior to financial measures calculated. According to GAAP reconciliations of GAAP to non-GAAP financial measures are provide a press release and investor presentation.

Speaker Change: <unk> 25 was another year of durable and efficient growth for Samsung We ended FY 'twenty, five with $146 billion narrower achieving 32% year over year growth or 33% year over year adjusted growth.

Dominic Phillips: We will make opening remarks, Devin to highlights for the quarter and then open the call up for Q&A.

Speaker Change: Our growth is driven by our partnership with some of the world's largest and most complex operations organizations during.

Sanjay: I'll hand over the call to Sanjay.

Speaker Change: During the year, we grew our customers with more than $100000 in <unk> to 2506, an increase of 36% year over year.

Sanjay: Thanks, Mike and thank you everyone for joining us today.

Sanjay: <unk> 25 was another year of durable and efficient growth for Samsung We ended FY 'twenty, five with $146 billion narrower achieving 32% year over year growth or 33% year over year adjusted growth.

Speaker Change: We are operating at a rare combination of growth scale and profitability.

Speaker Change: Our momentum reflects the strength of our platform and the large market opportunity ahead of us.

Sanjay: Our growth is driven by our partnership with some of the world's largest and most complex operations organizations during.

Speaker Change: We finished the year with the milestone Q4 for large customers, we increased our $100000 plus <unk> customer count by 203, a quarterly record.

Sanjay: During the year, we grew our customers with more than $100000 in the IRR to 2506, an increase of 36% year over year.

Speaker Change: We also increased our $1 million plus <unk> customer count by 14, which is tied for a quarterly record.

Sanjay: We are operating at a rare combination of growth scale and profitability.

Speaker Change: We're now landing large enterprise customers that could become $10 million plus <unk> customers over time at a faster rate.

Sanjay: Our momentum reflects the strength of our platform and the large market opportunity ahead of us.

Speaker Change: These customers are global leaders in each of their industries.

Sanjay: We finished the year with the milestone in Q4 for large customers, we increased our $100000 plus <unk> customer count by 203, a quarterly record.

Speaker Change: In Q4, we won one of the top three telecommunication companies in the world.

Speaker Change: One of the top III <unk> carriers in the U S and bimbo bakeries, the largest commercial banking company in the U S.

Sanjay: We also increased our $1 million plus <unk> customer count by 14, which is tied for a quarterly record.

Speaker Change: We're landing these customers with initial footholds that can lead to years of future expansions that drive durable growth.

We're now landing large enterprise customers that could become $10 million plus <unk> customers over time at a faster rate.

Speaker Change: These larger customers typically have more complex sales cycles that often spanned several years and are less predictable.

Sanjay: These customers are global leaders in each of their industries.

Speaker Change: We're proud to partner with our customers to transform how the world runs. We're just getting started and are excited for what we can accomplish together in the decades to come.

Sanjay: In Q4, we won one of the top three telecommunication companies in the world.

Sanjay: One of the top III <unk> carriers in the U S and bimbo bakeries, the largest commercial banking company in the U S.

Speaker Change: Our customers choose us because we help them operate smarter with our connected operations platform.

Sanjay: We're landing these customers with initial footholds that can lead to years of future expansions that drive durable growth.

Speaker Change: This includes smarter safety with AI camera alerts fuel savings with routing asset utilization with location tracking and alerts maintenance vehicle diagnostics and workflows for frontline workers.

Sanjay: These larger customers typically have more complex sales cycles that often spanned several years and are less predictable.

Sanjay: We're proud to partner with our customers to transform how the world runs. We're just getting started and are excited for what we can accomplish together in the decades to come.

Speaker Change: Our growing data asset helps our customers work smarter with actionable insights this improves the safety efficiency and sustainability of their operations.

Sanjay: Our customers choose us because we help them operate smarter with our connected operations platform.

Speaker Change: I'd like to share. An example of a customer who is using data to operate smarter in Q4, we expanded our partnership with one of North America's largest do it yourself moving and storage operators.

Sanjay: This includes smarter safety with AI camera alerts fuel savings with routing asset utilization with location tracking and alerts maintenance vehicle diagnostics and workflows for frontline workers.

Speaker Change: They operate nearly 200000 trucks, nearly 140000 trailers and 250000 portable storage boxes. They also have over 23000 rental locations.

Sanjay: Our growing data asset helps our customers work smarter with actionable insights this improves the safety efficiency and sustainability of their operations.

Speaker Change: During the quarter they added more than 10000 asset tags to track their new portable storage boxes to improve their end customer experience. They previously tried many other solutions, including RFID and QR codes.

Sanjay: I'd like to share an example of a customer who is using data to operate smarter.

Sanjay: In Q4, we expanded our partnership with one of North America's largest do it yourself moving and storage operators.

Speaker Change: They chose our asset tag because of its reliability and ease of use.

Sanjay: They operate nearly 200000 trucks, nearly 140000 trailers and 250000 portable storage boxes. They also have over 23000 rental locations.

Speaker Change: They also expanded and towards safety and telematics products in the quarter in a pilot with us they estimate that they saved $1 million across safety idling and maintenance costs. They saw a 61% reduction in safety events and 82% reduction in distracted driving events and a 47% reduction in harsh driving events.

Sanjay: During the quarter they added more than 10000 asset tags to track their new portable storage boxes to improve their end customer experience. They previously tried many other solutions, including RFID and QR codes.

Speaker Change: We're proud to partner with our customers to achieve this incredible outcomes with better insights there operating smarter with data.

They chose our asset tag because of its reliability and ease of use.

Sanjay: They also expanded and towards safety and telematics products in the quarter in a pilot with us they estimate that they saved $1 million across safety idling and maintenance costs. They saw a 61% reduction in safety events and 82% reduction in distracted driving events and a 47% reduction in harsh driving events.

Speaker Change: And our first decade as a company we've been helping our customers digitally transform they typically spend the vast majority of their revenue on their operations, which are asset heavy and labor intensive.

Speaker Change: We began by digitizing their vehicles with safety and Telematics then we expanded to include heavy machinery buildings frontline workers and smaller high value assets.

Sanjay: We're proud to partner with our customers to achieve this incredible outcomes with better insights there operating smarter with data.

Speaker Change: We've now built one of the world's largest operational data assets, we process over 14 trillion data points annually, reflecting over 50% year over year growth.

Sanjay: And our first decade as a company we've been helping our customers digitally transform they typically spend the vast majority of their revenue on their operations, which are asset heavy and labor intensive.

Speaker Change: We also saw more than 120 billion API calls in the last year also a 50% year over year growth.

Sanjay: We began by digitizing their vehicles with safety and Telematics then we expanded to include heavy machinery buildings frontline workers and smaller high value assets.

Speaker Change: This is having an incredible impact in FY 'twenty five with their customers. We help prevent 250000 accidents digitized $300 million workflows and saved more than 3 billion pounds of Cotwo.

Sanjay: We've now built one of the world's largest operational data assets, we processed over 14 trillion data points annually, reflecting over 50% year over year growth.

Speaker Change: We are in a strategic position to combine AI with our large and unique data asset to make an even greater impact for our customers.

Sanjay: We also saw more than 120 billion API calls in last year also a 50% year over year growth.

Speaker Change: We are entering a new age of intelligence in just the last two years AI has become 100 times less expensive.

Sanjay: This is having an incredible impact in FY 'twenty five with their customers. We help prevent 250000 accidents digitized $300 million workflows and saved more than 3 billion pounds of Cotwo.

Speaker Change: It's more widely available than ever before and will become significantly more abundance. This means that over time, we will be able to apply it everywhere.

Sanjay: We are in a strategic position to combine AI with our large and unique data asset to make an even greater impact for our customers.

Speaker Change: Our customers are already using AI on our platform for proactive maintenance training detecting risky behaviors like drowsiness and more.

Speaker Change: We believe AI will completely transform our customers' operations.

Sanjay: We are entering a new age of intelligence and just the last two years AI has become 100 times less expensive.

Speaker Change: In the future our customers will use AI to dynamically monitor operations to enhance safety and efficiency adjust delivery routes based on weather and traffic and anticipate customer requests by.

Sanjay: It's more widely available than ever before and we will become significantly more abundant. This means that over time, we will be able to apply it everywhere.

Speaker Change: By automating these tasks AI will help fill labor shortages and skills gaps and operations.

Speaker Change: Our customers are already using AI on our platform for proactive maintenance training detecting risky behaviors like drowsiness and more.

Speaker Change: We're excited about how this will make our customers' operations safer more efficient and sustainable we're looking forward to partnering with our customers to build this future.

Sanjay: We believe AI will completely transform our customers' operations.

Sanjay: In the future our customers will use AI to dynamically monitor operations to enhance safety and efficiency adjust delivery routes based on weather and traffic and anticipate customer requests by.

Speaker Change: We believe we are uniquely positioned to amplify our customer impact and achieve durable growth in the next decade.

Speaker Change: This is a result of several key factors.

Sanjay: By automating these tasks AI will help fill labor shortages and skills gaps and operations.

Speaker Change: First we are in the early stages of digitizing a massive market, we're generating over $1 billion in IRR from our core vehicle applications alone.

Sanjay: We're excited about how this will make our customers' operations safer more efficient and sustainable we're looking forward to partnering with our customers to build this future.

Speaker Change: Less than half of North American commercial vehicles use telematics and only about 10% you safety products.

Sanjay: We believe we are uniquely positioned to amplify our customer impact and achieved durable growth in the next decade.

Speaker Change: As our customers prioritize vehicle Digitization first we see a clear path to expanding our core applications into a multibillion dollar business.

Sanjay: This is a result of several key factors.

Sanjay: First we are in the early stages of digitizing a massive market, we're generating over $1 billion in IRR from our core vehicle applications alone.

Speaker Change: More broadly the market opportunity beyond vehicles is even earlier in Digitization, we see an enormous opportunity for sustained growth.

Speaker Change: Second we are achieving strong momentum with our large enterprise customers.

Sanjay: Less than half of North American commercial vehicles used telematics and only about 10% you safety products.

Speaker Change: This is driven by a few factors.

Sanjay: As our customers prioritize vehicle Digitization first we see a clear path to expanding our core applications into a multibillion dollar business.

Speaker Change: We're focused on innovation for the enterprise and we're building products to solve challenges for their complex operations.

Speaker Change: We're also continuing to invest in the enterprise focus go to market motion and we're adding more enterprise sales capacity to target this opportunity.

Sanjay: More broadly the market opportunity beyond vehicles is even earlier in Digitization, we see an enormous opportunity for sustained growth.

Speaker Change: As I shared at the top of this call we.

Speaker Change: We had a record number of new large enterprise customers for the year, they provide significant benefits, including valuable feedback to fuel our innovation higher retention rates and greater expansion opportunities.

Sanjay: Second we are achieving strong momentum with our large enterprise customers.

Sanjay: This is driven by a few factors.

Sanjay: We're focused on innovation for the enterprise and we're building products to solve challenges for their complex operations.

Speaker Change: Third we're continuously innovating and expanding our multi product platform solve our customers' toughest challenges.

Sanjay: We're also continuing to invest in the enterprise focus go to market motion and we're adding more enterprise sales capacity to target this opportunity.

Speaker Change: Since founding we have successfully built and scaled more than eight products, we're seeing our customers use us as a single system of record and increase the use of our products across their operations.

Sanjay: As I shared at the top of this call we.

Sanjay: We had a record number of new large enterprise customers for the year, they provide significant benefits, including valuable feedback to fuel our innovation higher retention rates and greater expansion opportunities.

Speaker Change: Currently 62% of our large customers used three or more products up from 58% one year ago, and 54% two years ago.

Sanjay: Third we're continuously innovating and expanding our multi product platform solve our customers' toughest challenges.

Speaker Change: As we expand our platform to serve our customers better we create future expansion opportunities to drive growth.

Sanjay: Since founding we have successfully built and scaled more than eight products, we're seeing our customers use us as a single system of record and increase the use of our products across their operations.

Speaker Change: And lastly, we are heavily investing in our team and company culture to serve our growing customer base better.

Speaker Change: We're proud of the recent awards that we've won that recognize this including Frost <unk> Sullivan's 2020 for company of the year Award built ins to 2025 Best U S. Large company to work for and our inclusion in Fortune's 2020 for change the World list.

Sanjay: Currently 62% of our large customers used three or more products up from 58% one year ago, and 54% two years ago.

Sanjay: As we expand our platform to serve our customers better we create future expansion opportunities to drive growth.

Speaker Change: We're operating at a rare combination of scale growth and profitability.

And lastly, we're heavily investing in our team and company culture to serve our growing customer base better.

Speaker Change: Approaching $1 5 billion.

Speaker Change: With 33% year over year, adjusted growth and 9% adjusted free cash flow margins.

Sanjay: We're proud of the recent awards that we won that recognize this including Frost <unk> Sullivan's 2020 for company of the year Award built ins 2025, Best U S large company to work for and our inclusion in Fortune's 2020 for change the World list.

Speaker Change: It's been an exciting quarter and year to deliver on our mission to increase the safety efficiency and sustainability of the operations the power of the global economy.

Speaker Change: We're grateful to partner with our customers as they modernize their operations, we'd like to thank all of our customers partners investors and <unk> for joining us on this journey.

Sanjay: We're operating at a rare combination of scale growth and profitability.

Sanjay: Approaching $1 5 billion and IRR with 33% year over year adjusted growth and 9% adjusted free cash flow margins.

Speaker Change: We also wanted to share that our president of worldwide field operations, Laura <unk> will be leaving <unk> following a personal leave of absence.

Sanjay: It's been an exciting quarter and year to deliver on our mission to increase the safety efficiency and sustainability of the operations the power of the global economy.

Speaker Change: However, she will serve as an advisor over the next few months to ensure a smooth transition.

Speaker Change: Our chief revenue Officer, and Etfs, and our Chief operating officer for go to market, Robert <unk> will take over her responsibilities.

Sanjay: We're grateful to partner with our customers as they modernize their operations wed like to thank all of our customers partners investors and <unk> for joining us on this journey.

Speaker Change: Both to meet and Robert have extensive experience leadership experience at FEMSA, each with a strong track record over six years and we're confident in their ability to lead.

Sanjay: We also wanted to share that our president of worldwide field operations, Laura <unk> will be leaving <unk> following a personal leave of absence.

Speaker Change: As always I will continue to be heavily involved in the go to market function. We win as a team and are grateful for Laura his time with us over the past couple of years.

Sanjay: However, she will serve as an advisor over the next few months to ensure a smooth transition.

Speaker Change: Our Chief revenue Officer, Amit, we us and our Chief operating officer for go to market, Robert <unk> will take over her responsibilities.

Speaker Change: Lastly, we're excited to see many of you at beyond our annual customer conference. We will be taking place. This June in San Diego, where we will also be hosting an investor day.

Speaker Change: Both the meat and Robert have extensive experience leadership experience at FEMSA, each with a strong track record over six years and we're confident in their ability to lead.

Beyond we will be bringing together leaders across industries to discuss the state of physical operations, the challenges, they're facing and new ways to deliver value through digitization.

Speaker Change: As always I will continue to be heavily involved in the go to market function. We win as a team and are grateful for Laura his time with us over the past couple of years.

Speaker Change: We will also be announcing new products to further drive transformation for our customers. We hope you will join us.

Speaker Change: Lastly, we're excited to see many of you at beyond our annual customer conference. We will be taking place. This June in San Diego, where we will also be hosting an investor day.

Speaker Change: I'll now hand, it over to Dominic to go over the financial highlights for the quarter.

Dominic Phillips: Thank you Sanjay Q4 was another quarter of durable and efficient growth.

Dominic Phillips: Quarter was highlighted by achieving several new records across important operating metrics, including surpassing $100 million in quarterly net new adds.

Speaker Change: Beyond we'll be bringing together leaders across industries to discuss the state of physical operations, the challenges, they're facing and new ways to deliver value through digitization.

Dominic Phillips: Adding 203, 100, K plus <unk> customers in 2014, 1 million plus customers and achieving quarterly records for gross margin operating margin and free cash flow margin.

Speaker Change: We will also be announcing new products to further drive transformation for our customers. We hope you will join us.

Speaker Change: I'll now hand, it over to Dominic to go over the financial highlights for the quarter.

Speaker Change: Thank you Sanjay Q4 was another quarter of durable and efficient growth.

Dominic Phillips: Q4 revenue was $346 million, an increase of 25% year over year or 36% adjusted growth, which is the same growth rate as last quarter, but at a larger scale.

Speaker Change: Quarter was highlighted by achieving several new records across important operating metrics, including surpassing $100 million in quarterly net new <unk>, adding 203, 100, K plus <unk> customers and 14 1 million plus customers and achieving quarterly records for gross margin operating margin and free cash flow margin.

Dominic Phillips: Why 25 revenue was $1 two 5 billion, an increase of 33% year over year or 37% adjusted growth.

Dominic Phillips: Adjusted revenue growth enables comparability across periods and contains two items.

Speaker Change: Q4 revenue was $346 million, an increase of 25% year over year or 36% adjusted growth, which is the same growth rate as last quarter, but at a larger scale.

Dominic Phillips: First Q4 of last year was a 14 week quarter instead of a typical 13 week quarter, removing the extra week from the prior period results and an additional 10 percentage points of Q4, FY 'twenty five revenue growth and an additional three percentage points of full year FY 'twenty five revenue growth.

Speaker Change: FY 'twenty five revenue was $1, two 5 billion, an increase of 33% year over year or 37% adjusted growth.

Dominic Phillips: Second constant currency removes the impact of foreign currency exchange rate fluctuations period over period and results in an additional one percentage point of Q4, FY 'twenty five revenue growth and an additional one percentage point of full year FY 'twenty five revenue growth.

Speaker Change: Adjusted revenue growth enables comparability across periods and contains two items.

Speaker Change: First Q4 of last year was a 14 week quarter instead of a typical 13 week quarter, removing the extra week from the prior period results and an additional 10 percentage points of Q4, FY 'twenty five revenue growth and an additional three percentage points of full year FY 'twenty five revenue growth.

Dominic Phillips: Q4, net new <unk> was $109 million, an increase of 10% year over year or 12% adjusted only for constant currency FY.

Speaker Change: Second constant currency removes the impact of foreign currency exchange rate fluctuations period over period and result in an additional one percentage point of Q4, FY 'twenty five revenue growth and an additional one percentage point of full year FY 'twenty five revenue growth.

Dominic Phillips: FY 'twenty five net new <unk> was $356 million, an increase of 16% year over year or 17% adjusted for constant currency.

Dominic Phillips: And ending <unk> was $1 46 billion, an increase of 32% year over year or 33% adjusted for constant currency.

Speaker Change: Q4, net new <unk> was $109 million, an increase of 10% year over year or 12% adjusted only for constant currency.

Dominic Phillips: Several factors drove our strong topline performance in Q4 first we focus on serving large enterprise customers to drive durable and efficient growth at scale in FY 'twenty five we further prioritize landing the very largest and most strategic enterprise customers and learned the following one.

Speaker Change: 2025, net new <unk> was $356 million, an increase of 16% year over year or 17% adjusted for constant currency.

Speaker Change: And ending <unk> was $1 46 billion, an increase of 32% year over year or 33% adjusted for constant currency.

Dominic Phillips: One we successfully proven we have an enterprise grade platform differentiated product portfolio and operational support required to win the largest enterprise accounts at a high rate two large strategic enterprise sales cycles can span multiple years and are often much more longer and more variable than sales cycles and smaller customer segments.

Speaker Change: Several factors drove our strong topline performance in Q4 first we focus on serving large enterprise customers to drive durable and efficient growth at scale in FY 'twenty five we further prioritize landing the very largest and most strategic enterprise customers and learned the following one.

Dominic Phillips: And lastly, many of our largest enterprise customers and prospects have clear path to becoming $10 million plus our customers and we expect these customers to mostly expand over time versus purchasing wall-to-wall upfront.

Speaker Change: One we successfully proven we have an enterprise grade platform differentiated product portfolio and operational support required to win the largest enterprise accounts at a high rate two large strategic enterprise sales cycles can span multiple years and are often much more longer and more variable than sales cycles and smaller customer segments.

Dominic Phillips: We ended Q4 with 2506, 100, K, plus our customers' growing 36% year over year, including a accordingly record increase of 203. We also ended the quarter with 118 $1 million plus AOR customers growing 44% year over year, including a quarterly increase of 14, which.

Speaker Change: And lastly, many of our largest enterprise customers and prospects have clear path to becoming $10 million plus <unk> customers and we expect these customers to mostly expand over time versus purchasing wall-to-wall upfront.

Dominic Phillips: Tied for a quarterly record.

Dominic Phillips: In addition to adding more large customers. We also grew our average IRR per 100, K plus customer to 323000 up from 313001 year ago.

Speaker Change: We ended Q4 with 2000, and 506 100, K plus our customers' growing 36% year over year, including a quarterly record increase of 203. We also ended the quarter with 118 $1 million plus our customers' growing 44% year over year, including a quarterly increase of 14, which.

Dominic Phillips: And the combination of adding more large customers and a higher average IRR resulted in increased <unk> mix for 100, K plus customers to 55% in Q4 up from 52% one year ago, and 48% two years ago.

Speaker Change: As tied for a quarterly record in.

Speaker Change: In addition to adding more large customers. We also grew our average <unk> per 100, K plus customer to 323000 up from 313001 year ago.

Dominic Phillips: Second this quarter included a balanced mix of landing new customers and expanding existing customer relationships for new logos. We added over 1000 core customers for the sixth consecutive quarter. Additionally, our quarterly record 90 of the 203 100, K plus <unk> customers added were new logos.

Speaker Change: And the combination of adding more large customers and a higher average IRR resulted in increased <unk> mix for 100, K plus customers to 55% in Q4 up from 52% one year ago, and 48% two years ago.

Dominic Phillips: Also nine of the top 10, new customers signed with multiple products one of our largest new customers in Q4, as a leading provider for the safety and maintenance of gas and water distribution systems with more than 1000 field technicians 2000 field assets and 700 vehicles there.

Speaker Change: Second this quarter included a balanced mix of landing new customers and expanding existing customer relationships for new logos. We added over 1000 core customers for the sixth consecutive quarter. Additionally, our quarterly record 90 of the 203 100, K plus <unk> customers added were new logos.

Dominic Phillips: Their initial purchase included five products across our platform telematics video based safety equipment monitoring connected workflows and connected training.

Speaker Change: Also nine of the top 10, new customers signed with multiple products one of our largest new customers in Q4, as a leading provider for the safety and maintenance of gas and water distribution systems with more than 1000 field technicians 2000 field assets and 700 vehicles there.

Dominic Phillips: With connected training they achieved a 98% on time completion rate and created more than 20 custom courses using our new AI course builder.

Dominic Phillips: They also achieved immediate results by deploying asset tags, and reducing the 500 K. They lost annually for Mr placed assets overall, they expect an ROI of more than seven X.

Speaker Change: Their initial purchase included five products across our platform telematics video based safety equipment monitoring connected workflows and connected training.

Dominic Phillips: For expansions 14 of our top 20 customers expanded in Q4 and seven of the top 10-Q4 expansions included multiple products are.

Speaker Change: With connected training they achieved a 98% on time completion rate and created more than 20 custom courses using our new AI course builder.

Dominic Phillips: Our strengthened expansions also allowed us to achieve our target dollar based net retention rate of approximately 115, and 120% for core and large customers respectively.

Speaker Change: They also achieved immediate results by deploying asset tags, and reducing the 500 K. They lost annually for Mr placed assets overall, they expect an ROI of more than seven X.

Dominic Phillips: And third we demonstrated strong execution across several frontier markets, 17% of net new <unk> came from international geographies in Q4 tied for the second highest quarterly contribution ever the.

Speaker Change: For expansions 14 of our top 20 customers expanded in Q4 and seven of the top 10-Q4 expansions included multiple products are.

Speaker Change: Our strength in expansions also allowed us to achieve our target dollar based net retention rate of approximately 115, and 120% for core and large customers respectively.

Dominic Phillips: The international strength was driven by Mexico, and the U K, both of which accelerated net new ACB growth sequentially.

Dominic Phillips: The UK also contributed its highest quarterly net new ACB mix and Mexico contributed its second highest net new ACB mix.

Speaker Change: And third we demonstrated strong execution across several frontier markets, 17% of net new HCV came from international geographies in Q4 tied for the second highest quarterly contribution ever the.

Dominic Phillips: We also saw momentum across construction food and beverage and public sector end markets construction drove the highest net new ACD and mix of all industries for the sixth consecutive quarter.

Speaker Change: The international strength was driven by Mexico, and the U K, both of which accelerated net new ACB growth sequentially.

Dominic Phillips: Food and beverage contributed its highest net new ECB mixed in over three years led by our largest expansion in Q4 with bimbo bakeries, the largest commercial baking company in the U S with more than 20000 workers 5500 vehicles 2500 trailers 350 tractors and 11000 distribution routes.

Speaker Change: The UK also contributed its highest quarterly net new ACB mix and Mexico contributed its second highest net new ACB mix.

We also saw momentum across construction food and beverage and public sector end markets construction.

Speaker Change: Construction drove the highest net new ACD and mix of all industries for the sixth consecutive quarter.

Dominic Phillips: With Sam Sarah they saw a 70% reduction in collision risk a 64% reduction in harsh events and a 49% reduction in policy violations.

Speaker Change: Food and beverage contributed its highest net new ACB mixed in over three years led by our largest expansion in Q4 with bimbo bakeries, the largest commercial banking company in the U S with more than 20000 workers 5500 vehicles 2500 trailers 350 tractors and 11000 distribution routes.

Dominic Phillips: Public sector had its highest year over year growth rate of the year in Q4 led by Miami Dade The seventh largest county in the country Miami Dade signed a more than $1 million transaction for the department of transportation and public works.

Dominic Phillips: And the department of solid waste management.

Speaker Change: With Sam Sarah they saw a 70% reduction in collision risk a 64% reduction in harsh events and a 49% reduction in policy violations.

Dominic Phillips: And we also saw strength in emerging products in Q4, 15% of net new <unk> came from non vehicle products the highest mix in the last 10 quarters.

Speaker Change: Public sector had its highest year over year growth rate of the year in Q4 led by Miami Dade The seventh largest county in the country Miami Dade signed a more than $1 million transaction for the department of transportation and public works.

Dominic Phillips: Four of the top 10, new customers included a non vehicle product and equipment monitoring accelerated year over year net new ACB growth for the third consecutive quarter driven by strength in asset tax.

Speaker Change: And the department of solid waste management.

Dominic Phillips: In addition to driving strong top line growth, we continued to deliver operating leverage across our business as we scale, we delivered quarterly records across all key non-GAAP profitability metrics, including a 78% gross margin of 16% operating margin and a 14% free cash flow margin.

Speaker Change: And we also saw strength in emerging products in Q4, 15% of net new <unk> came from non vehicle products the highest mix in the last 10 quarters.

Speaker Change: Four of the top 10, new customers included a non vehicle product and equipment monitoring accelerated year over year net new ACB growth for the third consecutive quarter driven by strength in asset tax.

Dominic Phillips: Okay now turning to guidance, assuming FX rates as of February one.

Dominic Phillips: For Q1, we expect revenue to be between $350 and $352 million, representing 25% year over year growth or between 26, and 27% constant currency growth, including a $5 million impact to Q1 revenue <unk>.

Speaker Change: In addition to driving strong top line growth, we continued to deliver operating leverage across our business as we scale, we delivered quarterly records across all key non-GAAP profitability metrics, including a 78% gross margin of 16% operating margin and a 14% free cash flow margin.

Dominic Phillips: non-GAAP operating margin to be 7% and non-GAAP EPS to be between five and six.

Speaker Change: Okay now turning to guidance, assuming FX rates as of February 1st for.

Dominic Phillips: For full year FY 'twenty six we expect revenue to be between one five to three and 153 3 billion representing year over year growth between 22, and 23% or between 23 and 24% adjusted for constant currency, including an $11 million impact to FY 'twenty six revenue non-GAAP operating margin to be.

Speaker Change: For Q1, we expect revenue to be between $350 and $352 million, representing 25% year over year growth or between 26% and 27% constant currency growth, including a $5 million impact Q1 revenue.

Speaker Change: non-GAAP operating margin to be 7% and non-GAAP EPS to be between five and six.

Approximately 11% and non-GAAP EPS to be between 32% and 34.

Speaker Change: For full year FY 'twenty six we expect revenue to be between $1 five three and 1.533 billion representing year over year growth between 22% and 23% or between 23 and 24% adjusted for constant currency, including an $11 million impact to FY 'twenty six revenue non-GAAP operating.

Dominic Phillips: And finally, please see the additional modeling notes in our shareholder letter.

Dominic Phillips: To close Q4, punctuated a year in which we saw continued momentum in the very large very early market opportunity. The world. The physical operations is in the early innings of digital transformation and companies willingness to adopt new technologies to improve their safety efficiency and sustainability is rapidly increasing as the.

Speaker Change: Margin to be approximately 11% and non-GAAP EPS to be between 32% and 34.

Speaker Change: And finally, please see the additional modeling notes in our shareholder letter.

Dominic Phillips: ROI benefits become even more evident.

Dominic Phillips: <unk> physical operations businesses have large operating budgets, consisting of physical assets and frontline workers, which consume most of their revenue even slight operational improvements can result in millions of dollars of savings for our customers significantly impacting their bottom line and Samsung continues to be best positioned to benefit from these long.

Speaker Change: To close Q4, punctuated a year in which we saw continued momentum in the very large very early market opportunity. The world. The physical operations is in the early innings of digital transformation and companies willingness to adopt new technologies to improve their safety efficiency and sustainability is rapidly increasing as the ROI.

Dominic Phillips: Term market dynamics, and with that I'll hand, it over to Mike to moderate Q&A.

Speaker Change: Benefits become even more evident.

Speaker Change: Most physical operations businesses have large operating budgets, consisting of physical assets and frontline workers, which consume most of their revenue even slight operational improvements can result in millions of dollars of savings for our customers significantly impacting their bottom line and Samsung continues to be best positioned to benefit from these long.

Mike: Thank you Dominic we will now open the lineup for questions. When it's your turn please limit your questions to one main question and one follow up question.

Speaker Change: The first question today comes from Matt Hedberg with RBC, followed by James Fish with Piper Sandler.

Speaker Change: Great. Thanks for taking my questions guys, great another great year.

Mike Chang: Term market dynamics, and with that I'll hand, it over to Mike to moderate Q&A.

Speaker Change: Maybe I'll start.

Dominic one for you. Thank you for quantifying the extra week impact on revenue Super helpful. I noticed you didn't talk about it from an IRR perspective.

Mike Chang: Thank you Dominic we will now open the lineup for questions. When it's your turn please limit your questions to one main question and one follow up question.

Speaker Change: The first question today comes from Matt Hedberg with RBC, followed by James Fish with Piper Sandler.

Speaker Change: You clarified for constant currency, but wondering if you could provide any sort of color on how we should think about.

Speaker Change: Perhaps adjusted for the week.

Speaker Change: Great. Thanks for taking my questions guys, great another great year.

Yeah, Yeah, absolutely, Matt So as we've said before it's really difficult to quantify the impact to <unk> of having the extra week in Q4, it's very easy for revenue because of ratable revenue recognition, but to determine the impact on bookings is much more challenging which is why we didn't adjust it out of Q4 last year or in the Q4 results that we just gave.

Speaker Change: Maybe I'll start.

Speaker Change: Dominic one for you. Thank you for quantifying the extra week impact on revenue Super helpful. I noticed you didn't talk about it from an IRR perspective.

Speaker Change: You clarified for constant currency, but wondering if you could provide any sort of color on how we should think about.

Speaker Change: Today, if you did use the same framework that we use for revenue if you remove 114th.

Speaker Change: Perhaps adjusted for the week.

Speaker Change: Yeah, Yeah, absolutely, Matt So as we've said before it's really difficult to quantify the impact of having the extra week in Q4, it's very easy for revenue because of ratable revenue recognition, but to determine the impact on bookings is much more challenging which is why we didn't adjust it out of Q4 last year or in the Q4 results that we just gave.

Speaker Change: Of the $99 million from net new <unk> from Q4 of last year that extra selling week would imply roughly $7 million of added net new <unk> in Q4, but again really difficult to hone in and really quantify that.

Speaker Change: And just even broader than that with regards to the to the year over year growth I think it's also just worth reminding investors that Q.

Speaker Change: Today, if you did use the same framework that we use for revenue if you remove 114th.

Speaker Change: Q4 last year was definitely a tough comp even beyond that extra week. It was a quarter in which we landed our largest net new ECB Delever, we had a record number of million dollar plus net new ACB deals in the quarter.

Speaker Change: Of the $99 million from net new <unk> from Q4 of last year that extra selling week would imply roughly $7 million of added net new <unk> in Q4, but again really difficult to hone in and really quantify that.

Speaker Change: And so when you consider all of that and we're happy with the net new <unk> growth this quarter.

Speaker Change: And just even broader than that with regards to the to the year over year growth I think it's also just worth reminding investors that.

Speaker Change: Got it that's super helpful. Maybe about kind of relative to maybe a point headwind. That's helpful. And then tangent for you.

Speaker Change: Q4 last year was definitely a tough comp even beyond that extra week. It was a quarter in which we landed our largest net new ACB Delever, we had a record number of million plus net new ACB deals in the quarter.

Speaker Change: Obviously, I think a lot of us coming out of your user of it last year, we're just enamored with the opportunity for asset tags and it shows up in the number of checks that we do sort of an.

Speaker Change: Areas that our customers that you wouldn't necessarily think would be some <unk> customers. I guess can you provide some perspective on how you might think asset tags could could impact.

Speaker Change: And so when you consider all of that and we're a we're happy with the net new <unk> growth this quarter.

Speaker Change: Got it that's super helpful. Maybe about kind of relative to maybe a point headwind. That's helpful. And then Sanjay for you, obviously I think a lot of us coming out of your user of it last year, we're just enamored with the opportunity for asset tags and it shows up in a number of checks that we do sort of an.

Speaker Change: Fiscal 'twenty six era.

Speaker Change: Yeah.

Speaker Change: First of all the reception around asset tax has been great. I think people are finding lots of use cases, where they have <unk>.

Speaker Change: All high value assets that they want to understand the location of there's really kind of three use cases that we've seen emerge and this is across industries. The first is around locating stoner last assets. The second is actually around locating those assets. So a lot of time is spent finding these assets at a like a large construction job site and then also around.

Speaker Change: Areas that our customers that you wouldn't necessarily think would be samsara customers. I guess can you provide some perspective on how you might think asset tags could could impact it.

Speaker Change: Fiscal 'twenty six era.

Speaker Change: Yeah.

Speaker Change: First of all the reception around asset taxes, it's been great. I think people are finding lots of use cases, where they have these.

Speaker Change: <unk> asset utilization.

Speaker Change: So again these are benefits that apply across multiple industry verticals in terms of impact on FY 'twenty, it's really too early to say we are seeing good attach but we're also seeing customers experiment. So I think it takes some time to figure out well. This is net new functionality, how do I use it how do I get value from it and then how do we practically roll it out across thousands or tens of thousands of ASUR.

Mall high value assets that they want to understand the location of there's really kind of three use cases that we've seen emerge and this is across industries. The first is around locating stolen or lost assets.

Speaker Change: The second is actually around locating those assets. So a lot of time is spent finding these assets at a like a large construction job site and then also around understanding asset utilization.

Speaker Change: As I described earlier in the prepared remarks.

Speaker Change: Alright, thanks, guys.

Speaker Change: So again these are benefits that apply across multiple industry verticals in terms of impact on FY 'twenty, it's really too early to say we are seeing good attach but we're also seeing customers experiment. So I think it takes some time to figure out well. This is net new functionality, how do I use it how do I get value from it and then how do we practically roll it out across thousands or tens of thousands of ASUR.

Speaker Change: Our next question comes from Jim Fish with Piper Sandler followed by Dylan Becker with William Blair.

Jim Fish: Hey, guys. Thanks for the questions here.

Speaker Change: Maybe just at a high level funded given way.

Speaker Change: This macro uncertainty and turbulence, we're all seeing especially in the U S. Now given you guys are exposed to physical operations and that being a 40% or more GDP. Some concerns around GDP is slowing and potentially declining do you guys expect to see any sort of pressure to unfold this year around that.

Speaker Change: So as I described earlier in the prepared remarks.

Speaker Change: Got it thanks guys.

Speaker Change: Our next question comes from Jim Fish with Piper Sandler followed by Dylan Becker with William Blair.

Jim Fish: Hey, guys. Thanks for the questions here.

Speaker Change: Or does the ROI.

Speaker Change: I think just at a high level funded given.

Speaker Change: <unk> provides able to kind of get through.

Speaker Change: Latest macro uncertainty and turbulence, we're all seeing especially in the U S. Now given you guys are exposed to this cooperation.

Speaker Change: Potential macro headwinds.

Speaker Change: Okay, well I'll start and Dominic do you want to add.

Speaker Change: 40% or more GDP some concerns around GDP is slowing and potentially declining you guys expect to see any sort of pressure to unfold. This year around that or is the ROI.

Dominic Phillips: I think at a high level. It is important to remember that our customers are very <unk>.

Dominic Phillips: A large scale in terms of their operations. So we're talking about.

Dominic Phillips: Asset heavy labor intensive businesses and so they're always trying to find ways to be more efficient to put that in perspective for every dollar of revenue. They earn somewhere between 60 and 80 is spent on those operations and we help optimize those operations. So I think in times like this where our customers are trying to figure out how to drive efficiencies. The data is incredibly valuable we're really helping them.

Speaker Change: That sounds fine.

Speaker Change: <unk> able to kind of get through.

Potential macro headwinds.

Speaker Change: Okay, I'll start and Dominic do you want to add.

Speaker Change: So I think at a high level. It is important to remember that our customers are very.

Got leverage and Theyre seeing that ROI.

Speaker Change: Large scale in terms of their operations. So we're talking about.

Dominic Phillips: It's too early it's too hard to say, what these macro impacts will be but for them. There's a lot of optimization opportunities below the line I don't know if you want to add.

Speaker Change: Asset heavy labor intensive businesses and so they're always trying to find ways to be more efficient to put that in perspective for every dollar of revenue. They earn somewhere between 60 and 80 is spent on those operations and we help optimize those operations. So I think in times like this where our customers are trying to figure out how to drive efficiencies. The data is incredibly valuable we're really helping them.

Dominic Phillips: Similar lines. These are customers that are operating many of them for over 100 years, they've operated through many different kind of economic cycles and I think just the early innings of this digital transformation and that kind of the power of the data their ability to drive more efficiencies in their business is they're.

Speaker Change: Got leverage and Theyre seeing that ROI.

Speaker Change: It's too early it's too hard to say, what these macro impacts will be but for them. There's a lot of optimization opportunities below the line I don't know if you want to add a similar line. These are customers that are operating many of them for over 100 years, they've operated through many different kind of economic cycles and I think just the early innings of this digital transformation and that kind of the power of the <unk>.

They're looking through that and ultimately adopting this technology at faster rates.

Speaker Change: Multiple and Don for you I guess, what's giving the confidence in a stable to potentially even up.

Dominic Phillips: For our core customers.

Dominic Phillips: And can we get the percentage of new ACB from new customers versus existing euro.

Speaker Change: Data their ability there to drive more efficiencies in their business is.

Dominic Phillips: Sorry, I missed the first part, but the the the mix is pretty balanced this year it was.

Speaker Change: They're looking through that and ultimately adopting this technology at faster rates.

Dominic Phillips: It was basically 50 50, new logos expansions.

Speaker Change: Multiple down for you I guess, what's giving the confidence in a stable to potentially even up in <unk> from our core customers.

Dominic Phillips: In terms of net new ACD mix for the quarter.

Dominic Phillips: But the first part was just the core IRR potentially being stable to two.

Speaker Change: And can we get the percentage of new ACB from new customers versus existing here at year end.

Dominic Phillips: 115, plus or minus two I guess, what's giving the confidence behind that.

Dominic Phillips: Because it just to the consistency and the expansions that we're seeing in the business. We've we were at kind of approximately $1 15 for for FY 'twenty five and that's what we're targeting for FY 'twenty six as well.

Sorry, I missed the first part, but the the mix is pretty balanced this year it was.

Speaker Change: Just yeah. It was all is basically 50 50, new logos expansions.

Speaker Change: And that new ACD mix for the quarter.

Dominic Phillips: A big chunk of our business comes from expansions and then if you think about all of the new products that we're rolling out customers landing in specific use cases, and then expanding and adding us to more frontline workers and more physical assets. We expect expansion is to continue to be an important growth driver in FY 'twenty six.

Speaker Change: But the first part was just the core IRR potentially being stable to up you cited 115, plus or minus two I guess, what's giving the confidence behind that.

Speaker Change: Because it just to the consistency and the expansions that we're seeing in the business. We've we were at kind of approximately $1 15 for for FY 'twenty five and that's what we're targeting for FY 'twenty six as well.

Speaker Change: The next question comes from Dylan Becker with William Blair, followed by Kirk maturing with Evercore.

Speaker Change: A big chunk of our business comes from expansions and then if you think about all of the new products that we're rolling out customers landing in specific use cases, and then expanding and adding us to more frontline workers and more physical assets. We expect expansion is to continue to be an important growth driver in FY 'twenty six.

Dylan Becker: Perfect. Thanks, guys.

Speaker Change: Starting with you it's really impressive the data scale that you guys have and maybe even more so than a 50% growth kind of annually on top of that giving you a lot of network density obviously.

Speaker Change: At the same time, I mean, there's plenty of white space here. So wondering how youre thinking about kind of the network density benefit and your opportunity to go and capture kind of more assets from the net new user side, which feels pretty balanced but also the ability to kind of go deeper with the existing customers and kind of more in grain yourself and understand the entirety of <unk>.

Speaker Change: The next question comes from Dylan Becker with William Blair, followed by Kirk maturing with Evercore.

Dylan Becker: Perfect. Thanks, guys.

Dylan Becker: Essentially starting with you it's really impressive the data scale. If you guys have and maybe even more so of the 50% growth kind of annually on top of that giving you a lot of network density obviously.

Speaker Change: Their physical operations workflows.

Speaker Change: Yeah. So doing we are very much doing both.

Speaker Change: At the same time, I mean, there's plenty of white space here. So I'm wondering how youre thinking about going to the network density benefit and your opportunity to go and capture more assets from the net new user side, which feels pretty balanced but also the ability to kind of go deeper.

Speaker Change: First of all I think in terms of network density that helps us with coverage.

Speaker Change: For new products like the asset tag, which I talked about earlier. It also gives us much more visibility over operational behaviors. So what's driving risk out there down to fuel consumption trends by making model a vehicle or piece of equipment. So there's a lot of benefits to having this data at scale. We are still only kind of low double digit percent penetrated there is a lot.

Speaker Change: With the existing customers and kind of more in Grand yourself and understand the entirety of kind of their physical operations workflows.

Speaker Change: So doing we are very much doing both.

Speaker Change: First of all I think in terms of network density that helps us with coverage.

Speaker Change: Opportunity to see more assets see more miles on the road see more frontline workers, who use the product. So I think youll see us continue investing going broader as we go deeper it helps enable some of these newer AI driven products for example around maintenance. So the more fault code data, we see we see over 1 billion fault codes a year, we can really understand what's going on in.

Speaker Change: For new products like the asset tag, which I talked about earlier. It also gives us much more visibility over operational behaviors. So what's driving risk out there down to fuel consumption trends by making model a vehicle or piece of equipment. So there's a lot of benefits to having this data at scale. We are still only kind of low double digit percent penetrated there is a lot.

Speaker Change: These assets, what leads to failures, which ones need maintenance that sort of thing so.

Speaker Change: Opportunity to see more assets see more miles on the road see more frontline workers, who use the product. So I think you'll see us continue investing going broader as we go deeper it helps enable some of these newer AI driven products for example around maintenance. So the more fault code data, we see we see over 1 billion fault codes a year, we can really understand what's going on in.

Speaker Change: So I think the depths will also benefit us, but this is really a decades long journey.

Speaker Change: Compound on this data asset.

Speaker Change: Perfect. That's helpful and maybe a good segue to sticking with you here on kind of the AI use cases that you're seeing there is obviously.

Speaker Change: Significant kind of tangible.

Speaker Change: Tangible external value here and maybe monetization still on the come as we think about that but how are you guys thinking about leveraging and internally right. There's a lot of room for internal op.

Speaker Change: These assets, what leads to failures, which ones need maintenance that sort of thing. So I think the depths will also benefit us but this is.

Speaker Change: Decades long journeys, we really compound on this data asset.

Efficiency in your core operations I would think it can help accelerate product development, that's very clear kind of with your innovation engine, but maybe to kind of the internal leveraging of AI as well if you don't mind.

Speaker Change: Perfect. That's helpful and maybe a good segue to sticking with you here on kind of the AI use cases that you're seeing there is obviously.

Speaker Change: Yeah, there is a lot of potential both external and internal like you said, we're very much invested in this and the product and then the way we build our products. So we use modern.

Speaker Change: Significant kind of tangible.

Speaker Change: Tangible external value here and maybe monetization still on the come as we think about that but how are you guys thinking about leveraging and internally right. There's a lot of room for internal op.

Speaker Change: AI coding tools, we're using it on the sales side to help us better understand customer accounts do research answer question. So our sales and go to market teams have kind of all the information at their fingertips that they can be helpful. With and then on functions like support we're able to do a lot, especially in the way and the speed at which.

Efficiency in your core operations I would think it can help accelerate product development, that's very clear kind of with your innovation engine, but maybe to kind of the internal leveraging of AI as well if you don't mind.

Speaker Change: Yes.

Speaker Change: A lot of potential both external and internal like you said, we're very much invested in this and the product and then the way we build our products. So we use modern AI coating tools, we are using it on the sales side to help us better understand customer accounts do research answer questions. So our sales and go to market teams have kind of all the information.

Speaker Change: We can respond to any support questions. So.

Speaker Change: Much every team every department at same Sarah is using AI in an interesting way and we're excited because the potential for the technology just seems to be expanding its kind of exceeded our expectations.

Speaker Change: <unk> at their fingertips that they can be helpful. With and then on functions like support we're able to do a lot, especially in the way and the speed at which we can respond to any sport question. So.

Speaker Change: Great. Thank you.

Speaker Change: The next question comes from Kirk <unk> with Evercore, followed by Chris can tear with Morgan Stanley.

Speaker Change: Yeah, Hi, guys. Thanks, it'd be broke ground for a current return and appreciate you taking the question.

Speaker Change: Pretty much every team every department at FEMSA is using AI in an interesting way and we're excited because the potential for the technology just seems to be expanding its kind of exceeded our expectations.

Speaker Change: So you know really strong large customer momentum to get a quarterly record for $100000 customer ads construction.

Speaker Change: Vertical continues to be really really strong it sounds like food and Bev did quite well this quarter as well I'm curious as you keep landing. These larger customers are there any verticals in particular that are structurally structurally.

Speaker Change: Great. Thank you.

Speaker Change: The next question comes from Kirk <unk> with Evercore, followed by Chris can tear with Morgan Stanley.

Yeah, Hi, guys. Thanks, it'd be Berkeley on for Kirk return I. Appreciate you taking the question.

Speaker Change: More in line with Ah.

Speaker Change: So you know really strong large customer momentum to get a quarterly record for $100000 customer adds.

Speaker Change: There is just an opportunity to be bigger within those customer verticals.

Speaker Change: And then maybe just as a quick follow on to that is there any thought as you do continue to grow in these verticals and I'll.

Speaker Change: Construction vertical continues to be really really strong it sounds like food and Bev did quite well this quarter as well I'm curious as you keep landing. These larger customers are there any verticals in particular that are structurally structurally.

Speaker Change: Started verticalizing the go to market efforts at all or is the horizontal.

Speaker Change: Horizontal nature of your solutions is continuing to resonate to where that's not necessary at this point.

Dominic Phillips: Yeah I'll take the first part of that question and then Dominic can cover the second so in terms of industry verticals. We are seeing strong traction across a number of different industries.

Speaker Change: You know more in line with Ah.

Speaker Change: There's just an opportunity to be bigger within those customer verticals.

Speaker Change: And then maybe just as a quick follow on to that is there any thought as you do continue to grow in these verticals.

Dominic Phillips: They are the same ones that we talked about at Investor day, and a lot of this is related to our penetration rate. So like I said earlier, it's still early innings, there's a lot of room for Digitization. So when we think about industries like construction. They historically didn't buy a lot of telematics products or video based safety, they're seeing tangible ROI benefits they are seeing decreased.

Speaker Change: Verticalizing the go to market efforts at all or is the.

Speaker Change: Horizontal nature of your solutions is continuing to resonate through where that's not necessary at this point.

Speaker Change: Yeah.

Speaker Change: I'll take the first part of that question and then Dominic can cover the second so in terms of industry verticals. We are seeing strong traction across a number of different industries.

Dominic Phillips: Risk related costs are seeing better fuel consumption. So I do think industries like that that historically haven't bought a lot of this technology is really starting to digitize, but we see opportunity across the board because.

Speaker Change: They are the same ones that we talked about at Investor day, and a lot of this is related to our penetration rates are like I said earlier still early innings, there's a lot of room for digitization. So when we think about industries like construction. They historically didn't buy a lot of telematics products or video based safety, they're seeing tangible ROI benefits they are seeing decreased.

Dominic Phillips: We talked about this briefly but over half the vehicles on the road still don't have telematics only about 10% have vin.

Dominic Phillips: Video based safety, so theres opportunity again in really every major industry vertical and physical operations, yeah and on the vertical is a sales strategy that is not something that we're planning on doing formally and in FY 'twenty six.

Speaker Change: Risk related costs are seeing better fuel consumption. So I do think industries like that that historically hadn't bought a lot of this technology is really starting to digitize, but we see opportunity across the board because.

Dominic Phillips: There's still enough commonality and the use cases across these industries that we don't need industry.

Speaker Change: We talked about this briefly but over half the vehicles on the road still don't have telematics only about 10% have video based safety. So theres opportunity again in really every major industry vertical and physical operations, yeah and on the vertical is sales strategy, that's not something that we're planning on doing formally and in FY 'twenty six.

Dominic Phillips: Experts selling into them I think that that's something that we could consider more gradually as we kind of think about how we map accounts to the individual reps and try to.

Dominic Phillips: Group them together tied to tied to industries, and maybe longer term and where it.

Dominic Phillips: At a larger scale, it's a strategy that they could make sense. The only area that we do it today is within the public sector, where the selling motion is a little bit different but other than that.

Speaker Change: There is still enough commonality and the use cases across these industries that we don't need industry.

Speaker Change: Experts selling into them I think that that's something that we could consider more gradually as we kind of think about how we map accounts to the individual reps and try to group them together tied to tied to industries and maybe longer term and we're at a larger scale. It's it's a strategy that they could make sense. The only area that we do it today is with them.

Dominic Phillips: Reps are tied to <unk>.

Speaker Change: As geographies to sell into many different industries.

Dominic Phillips: Very helpful. Thanks, guys.

Speaker Change: The next question comes from Chris <unk> with Morgan Stanley followed by RCA with Wolfe.

Speaker Change: Hey, Sanjay It Hey, Dominic Thanks for taking my questions on for Keith here.

Speaker Change: Public sector, where the selling motion is a little bit different.

Speaker Change: Wanted to hit on international really great to see that new ACD growth in both Mexico, and the U K accelerate.

Speaker Change: But other than that.

Speaker Change: Sales reps are tied to patches geographies to sell into many different industries.

Speaker Change: What's working well there and how does that inform your plans for 2026 international expansion.

Speaker Change: Very helpful. Thanks, guys.

Speaker Change: The next question comes from Chris <unk> with Morgan Stanley followed by RCA with Wolfe.

Speaker Change: Yeah, I think it's just a it's a it's an.

Speaker Change: These are areas, where we've made a lot of investments kind of over the years and we're seeing some really good momentum and so.

Hi, it's Andrew It Hey, Dominic Thanks for taking my questions on for Keith here.

Speaker Change: Wanted to hit on international really great to see that new ACB growth in both Mexico, and the U K accelerated.

Speaker Change: On the last call, we announced a few product specific features for those markets, where we've obviously been investing in beyond R&D and to become the go to market winning some of these larger customers and then having reference ability.

What's working well there and how does that inform your plan for 2026 international expansion.

Speaker Change: Has definitely helped and then I think just the that the broader fact that there are more physical operations assets and frontline workers in these international markets. Even then than in the U S and so very similar use cases and in areas, where we expect to continue to invest.

Speaker Change: Yeah, I think it's just a it's a.

Speaker Change: These are areas, where we've made a lot of investments kind of over over the years and we're seeing some really good momentum and so.

Speaker Change: On the last call, we announced a few product specific features for those markets, where we've obviously been investing in beyond R&D and that if we go to market winning some of these larger customers and then having reference ability.

Speaker Change: Got it that's it.

Dominic Phillips: Helpful. Dominic and then.

Speaker Change: She wanted to ask on hiring you guys keep winning a lot of these best company to work for and so I'm just curious how that's helped enable.

Speaker Change: Has definitely helped and then I think just that.

Speaker Change: The broader fact that there are more physical operations assets and frontline workers in these international markets. Even then than in the U S and so very similar use cases and in areas, where we expect to continue to invest.

Speaker Change: And new talent into the organization, what kind of talent are you getting and how is that helping as you continue to scale through the current revenue base.

Well I think for us it sounds important across the board.

Dominic Phillips: Got it that's super helpful. Dominic and then.

Speaker Change: From a sales perspective, it gives us the capacity to work with more customers.

Speaker Change: She wanted to ask on hiring you guys keep winning a lot of these best company to work for and so I'm just curious how that's helped enable bringing in new talent into the organization what kind of talent are you getting and how is that helping as you continue to scale through our current revenue base.

Speaker Change: We're investing in our long term customer relationships as well so our go to market side the investments very clear on the engineering side, we have a lot of different products that we're developing on the platform and so scaling up those teams I'm all that being said, we want to keep a very close eye on culture and make sure. We are scaling that up along with the head count. So we take a balanced approach to it.

Speaker Change: Well I think for us and towns are important across the board.

Speaker Change: From a sales perspective, it gives us capacity to work with more customers.

Speaker Change: Make sure we stay very involved in the operations.

Speaker Change: Excellent. Thank you.

Speaker Change: We're investing in our long term customer relationships as well so the go to market side the investments very clear on the engineering side, we have a lot of different products that we're developing on the platform and so scaling up those teams and all that being said, we want to keep a very close eye on culture and make sure. We are scaling that up along with the head count.

Speaker Change: The next question comes from <unk>, <unk> with Wolf followed by Matt.

Matt Hedberg: Matt with Bofa.

Alex given: Hi, This is <unk> on for Alex given.

Speaker Change: Given the uncertainty on potential macro impacts from some of the geopolitical tensions is there any increased conservatism in the guide and given the continued traction internationally how have conversations with those large customers internationally changed or remain the same given some of the geopolitical tension fears.

Speaker Change: So we take a balanced approach to it and make sure we stay very involved in the operations.

Speaker Change: Excellent. Thank you.

Speaker Change: The next question comes from <unk> with Wolf, followed by Matt Oh.

Speaker Change: I would just say high level guidance for FY 'twenty six the the philosophy hasn't changed it's not it's not more or less conservative than the initial guidance in FY 'twenty five I think we're.

Speaker Change: I met with Bofa.

Speaker Change: Hi, This is <unk> on for Alex given.

Speaker Change: Given the uncertainty on potential macro impacts from some of the geopolitical tensions is there any increased conservatism in the guide and given the continued traction internationally how have conversations with those large customers internationally changed or remain the same given some of the geopolitical tension fears.

Speaker Change: Always wanting to make sure that we're providing guidance with a lot of confidence in especially to start the year, we feel good about being able to hit the numbers that we put out and we obviously factor in all of the broader macro implications and potential outcomes into into the guidance.

Speaker Change: I would just say high level guidance for FY 'twenty six the philosophy hasn't changed it's not it's not more or less conservative than the initial guidance in FY 'twenty five I think we're.

Speaker Change: And not only on.

Speaker Change: On the customer side.

Speaker Change: Most of these companies are providing services like construction and field services are in food and beverage. So they're very much focused on their kind of critical infrastructure jobs within their countries.

Speaker Change: I'm always wanting to make sure that we're providing guidance with a lot of confidence in especially to start the year, we feel good about being able to hit the numbers that we put out and we obviously factor in all of the broader macro implications and potential outcomes into into the guidance.

Speaker Change: Got it that's really helpful and you're continuing to see strong new large logo ads I guess, how much of those large new logo adds or from competitors versus completely new adopters and with like new large logos strength, particularly in the back half of fiscal 'twenty five how should we think about this for fiscal 'twenty six.

Speaker Change: And not only on the customer side.

Speaker Change: Most of these companies are providing services like construction and field services are in food and beverage. So they're very much focused on their kind of critical infrastructure jobs within their countries.

Speaker Change: Yeah, It really depends on the specific situation there there's a number of kind of products that we have they tend to be more greenfield opportunity. So I mean for example video based safety, 90% of commercial vehicles, even in the U S aren't using technology and so those.

Speaker Change: Got it that's really helpful and you're continuing to see strong new large logo ads I guess, how much of those large new logo adds or from competitors versus completely new adopters and with like new large logos strength, particularly in the back half of fiscal 'twenty five how should we think about this for fiscal 'twenty six.

Speaker Change: Those can be more greenfield opportunities.

Speaker Change: Telematics is product that's been around for GPS has been around for decades.

Speaker Change: Yeah, It really depends on the specific situation. There there is a number of kind of products that we have that tend to be more greenfield opportunity. So I mean for example video based safety, 90% of commercial vehicles, even in the U S aren't using technology and so.

Speaker Change: Still less than 50% have a telematics, but much more so than on the video based safety side and so those can be.

Speaker Change: You know, we tend to see more and more competitors in those spaces. So it really kind of depends on the use case some of the newer products that we're rolling out again, we're replacing manual.

Speaker Change: Those can be more greenfield opportunities versus kind of telematics is product that's been around for GPS has been around for decades.

Speaker Change: Emmanuel work in cell.

Speaker Change: In those cases, not competing against other technology vendors. So it really kind of depends on the use case.

Speaker Change: Still less than 50% have a telematics, but much more so than on the video based safety side and so those can be you know we tend to see more and more competitors in those spaces. So it really kind of depends on the use case some of the newer products that we're rolling out again, we're replacing manual.

Speaker Change: Very helpful. Thank you.

Speaker Change: The next question comes from Matt with Bofa, followed by David with Wells Fargo.

Speaker Change: Great. Thanks for taking the questions maybe just a couple for Dominic wanted to double tap on hiring intentions for fiscal year 'twenty six and I know you can tell me in terms of <unk>.

Speaker Change: Manual work and sell.

Speaker Change: In those cases, not competing against other technology vendors. So it really kind of depends on the use case.

Speaker Change: Percentage of growth you intend to grow that work for us any additional color on sales and marketing versus the other areas or areas of the business or geography would be helpful.

Speaker Change: Helpful. Thank you.

The next question comes from Matt with Bofa, followed by David with Wells Fargo.

Speaker Change: Yeah, I mean, we're definitely adding more head count into FY 'twenty, six I think and like previous years. The majority of it will go into our go to market.

Speaker Change: Great. Thanks for taking the questions maybe just a couple for Dominic wanted to double tap on hiring intentions for fiscal year 'twenty six and anything you can tell me in terms of <unk>.

Speaker Change: We're always obviously trying to add more capacity to keep pace with the scale and the growth of the business I think we're also really focused.

Speaker Change: Percentage of growth do you intend to grow that work for us any additional color on sales and marketing versus the other areas or areas of the business or geography would be helpful.

Speaker Change: On finding ways to improve our productivity that's the other kind of input into into growth and to drive more efficiency. There's obviously a lot of new opportunities with some of the recent technology advancements and sell productivity improvements and enhancing that is also a big focus for us.

Speaker Change: Yeah, I mean, we're definitely adding more head count into FY 'twenty, six I think and like previous years. The majority of it will go into our go to market.

Speaker Change: Understood. Thanks, and then just one quick follow up on operating margin, obviously, a great quarter, I think 700 basis points above the guide can you just help us understand the drivers of that outside of just revenue outperformance anything in the quarter that stood out in terms of productivity or efficiency.

We're always obviously trying to add more capacity to keep pace with the scale and the growth of the business I think we're also really focused.

Speaker Change: On finding ways to improve our productivity that's the other kind of input into into growth and to drive more efficiency. There's obviously a lot of new opportunities with some of the recent technology advancements and so productivity improvements and enhancing that is also a big focus for us.

Yeah. Most of it came from from the revenue outperformance, there's kind of puts and takes the two expenses most of our margin leverage tends to come in the back half of the year, we front load a lot of our Opex and so Q4 tends to be one of our largest operating margin quarters and most of that came from the revenue outperformance.

Speaker Change: Understood. Thanks, and then just one quick follow up on operating margin, obviously, a great quarter, I think 700 basis points above the guide can you just help us understand the drivers of that outside of just revenue outperformance anything in the quarter that stood out in terms of productivity or efficiency.

Speaker Change: Got it thank you.

Speaker Change: The next question comes from David with Wells Fargo, followed by Andrew with BNP.

Speaker Change: Yeah. Most of it came from from the revenue outperformance, there's kind of puts and takes the two expenses most of our margin leverage tends to come in the back half of the year, we front load a lot of our Opex and so Q4 tends to be one of our largest operating margin quarters and most of that came from the revenue outperformance.

David: Hey, Thank you for taking our questions Tonight I appreciate it so obviously really like all the charge throughout your docs you guys do a great job question on the massive market Pie charts can you just talk through maybe at a high level. The newer products added since FY 'twenty, one such assignments ability kind of forms such as et cetera, and how we should think about the competitive dynamics youre seeing in there.

Speaker Change: Got it thank you.

Speaker Change: The next question comes from David with Wells Fargo, followed by Andrew with BNP.

David: These products today versus the competitive dynamics you saw in telematics and safety. When you first disrupt this space back in FY 2018.

David: Hey, Thank you for taking our questions Tonight I appreciate it so obviously really like all the charts throughout your docs you guys do a great job question on the massive market Pie charts can you just talk through maybe at a high level and newer products added since FY 'twenty, one such assignments ability connected forms such as et cetera, and how we should think about the competitive dynamics youre seeing.

Dominic Phillips: Yeah, Let me take a first pass of that and Dominic do you want to add anything. So some of these newer products forms is a great example, after taxes. Another one there really net new these are not products that were widely available in the industry a lot of our customers who are coming off manual workflow of kind of paper process and so it's a different competitive dynamic compared to say.

David: Those products today versus the competitive dynamics you saw in telematics and safety when you first disrupt the space back in FY 2018. Thanks.

Dominic Phillips: Telematics, where as Dominic mentioned earlier on the call people have had GPS tracking for decades in some cases. So there are there was more kind of incumbency and it sort of existing form factors that we're replacing here I think we're seeing more net new.

Speaker Change: Yeah, Let me take a kind of first half of that and Dominic do you want to add anything. So some of these newer products forms is a great example, after taxes and other one theyre really not new these are not products that were widely available in the industry a lot of our customers were coming off manual workflow kind of paper process and so it's a different competitive dynamic compared to say.

Dominic Phillips: That being said there's competitors for each of these products, but we're really unique in terms of how we structured the whole system is a single platform.

David: <unk>, where it is.

Dominic Phillips: The workflows are intuitive for the frontline workers, they use us for compliance and for safety some of them.

David: As Dominic mentioned earlier on the call people without GPS tracking for decades in some cases. So there are there was more kind of incumbency and it sort of existing form factors that we are replacing here I think we're seeing more net new.

Dominic Phillips: Clock in and clock out on the same sort of system, we're integrated with over 300 different technology partners and that's what makes us different and that's also what makes it easier to adopt these products and add on.

That being said there's competitors for each of these products, but we're really unique in terms of how we structured the whole system is a single platform.

Dominic Phillips: So the majority now of our large customers are using three or more products that continues to accelerate.

Dominic Phillips: So all of this is to say that while these are newer products, we're able to attach them.

David: The workflows are intuitive for the frontline workers, they use us for compliance and for safety some of them.

Dominic Phillips: Quite easily in some of these accounts once we get to know the nature of their business.

David: Hock in and clock out on the same sort of system, we're integrated with over 300 different technology partners and that's what makes us different and that's also what makes it easier to adopt these products and add on so the majority now of our large customers are using three or more products that continues to accelerate.

Speaker Change: Thank you I appreciate that and just one follow up would you mind just talking through the opportunity set in front of you as it relates to the public sector as we think through their focus on efficiency and optimization.

Dominic Phillips: Yeah.

Dominic Phillips: Yeah, I mean, it's an area that we've been focused on for several years as I said earlier, it's that it's a one industry, where we have a vertical specific sales organization.

David: So all of this is to say that while these are newer products, we're able to attach them.

David: Quite easily in some of these accounts once we get to know the nature of their business.

Speaker Change: Thank you I appreciate that and just one follow up would you mind just talking through the opportunity set in front of you as it relates to the public sector as we think through their focus on efficiency and optimization. Thank you.

Dominic Phillips: And you know.

Dominic Phillips: Unlike some other software businesses, where there's a large federal presence for our industry's most of these physical operations assets and frontline workers are housed within the state and local level and so that's really where we've been focused and we saw again the strongest.

David: Yeah.

David: Yeah, I mean, it's an area that we've been focused on for several years as I said earlier, it's that it's a one industry, where we have a vertical specific sales organization.

The strongest growth for public sector took place in Q4 and was led by our by Miami Dade again, the seventh largest county in the country. So I think that's indicative of.

David: And unlike some other software businesses, where there's a large federal presence for our industry's most of these physical operations assets and frontline workers are housed within the state and local level and so that's really where we've been focused and we saw again the strongest.

A million dollar plus opportunity to do a large county, obviously, we've got a number of large state wins as well and so that's an area of continued investment and focus for us going into FY 'twenty six.

Dominic Phillips: Thank you very much.

Speaker Change: The next question comes from Andrew with BNP, followed by Dan with BMO.

David: The strongest growth for public sector took place in Q4 and was led by our by Miami Dade again, the seventh largest county in the country and so I think that's indicative of.

Speaker Change: Thanks, maybe to start I know.

Speaker Change: Oh are you addressed the geopolitical issues just out of curiosity, just educate us because I don't think we've been through this since you've been public but.

David: $1 million plus opportunity to a large county, obviously, we've got a number of large state wins as well and so that's an area of continued investment and focus for us going into FY 'twenty six.

Speaker Change: How much of your exposure is to cross border traffic I know youre not transportation, specifically, but you do have exposure to food and beverage energy and construction. So I'm. Just wondering do you have any data that would indicate that look you're not as exposed to any tariff blow box or things of that nature and I have a follow up.

David: Thank you very much.

Speaker Change: The next question comes from Andrew with BNP, followed by Dan with BMO.

Speaker Change: Thanks, maybe to start I know.

Speaker Change: You addressed the geopolitical issues just out of curiosity, just educate us because I don't think we've been through this since you've been public but.

Speaker Change: I don't have any data at my fingertips in terms of the cross border, but the majority of our customers operate within their countries or in the domestic operations like if you think about food and beverage distribution, they're delivering to restaurants retail stores that sort of thing same thing with construction or Dominic just talks about public sector. So while we.

Speaker Change: How much of your exposure is to cross border traffic I know youre not transportation, specifically, but you do have exposure to food and beverage energy and construction. So I'm. Just wondering do you have any data that would indicate that look you're not as exposed to any tariff blow box or things of that nature and I have a follow up.

Speaker Change: Some customers across the border.

Speaker Change: Or across various borders most of their work tends to be in their countries.

Speaker Change: I don't have any data at my fingertips in terms of the cross border, but the majority of our customers operate within their countries there.

Speaker Change: Great and then for my follow up just in terms of your comments on the a or the extra week and FX I'm. Just wondering is the 10 percentage point.

Speaker Change: Mastec operations like if you think about food and beverage distribution, they're delivering to restaurants retail stores that sort of thing same thing with construction or Dominic just talks about public sector. So while we have some customers across the border.

Speaker Change: Swing or 11.

Should we apply that to billings as well just for apples to apples comparison or is it above or below that.

Speaker Change: Yes, I mean, I would really just focus it on on revenue and then obviously for net new <unk>, there's the currency impact and as we said just the impact of the additional week.

Speaker Change: Or across various borders most of their work tends to be in their countries.

Speaker Change: Great and then for my follow up just in terms of your comments on the a or the extra week and FX I'm. Just wondering is the 10 percentage.

Speaker Change: A lot less clear so I think those are the two metrics that I would but I'd focus you on.

Speaker Change: Swing or 11.

Speaker Change: Great. Thank you.

Speaker Change: Should we apply that to billings as well just for apples to apples comparison, there was a.

Speaker Change: The next question comes from Dan with BMO, followed by Mark with loop capital.

Speaker Change: Above or below that.

Speaker Change: Yes, I mean, I would really just focus it on on revenue and then obviously for net new <unk>, there's the currency impact.

Dan: Hi, Thanks for taking my question, maybe two for Dominic.

Speaker Change: And as we said just the impact of the additional week or a lot less clear. So I think those are the two metrics that I would but I'd focus you on.

Dan: One with regard to tariffs and your own supply chain things like gateways and cameras and asset tag the factoring any impact on that or maybe help us think about how that could potentially impact your business. The share and then secondly on the comments about free cash flow margin being.

Speaker Change: Great. Thank you.

Speaker Change: The next question comes from Dan with BMO, followed by Mark with loop capital.

Dan: Hi, Thanks for taking my question, maybe two for Dominic.

Dan: Roughly similar in fiscal 'twenty six versus 25.

Dan: One with regard to tariff and your own supply chain things like gateways and cameras and asset tag the factoring any impact on that or maybe help us think about how that could potentially impact your business. The share and then secondly on the comments about free cash flow margin being.

Speaker Change: Can you help us understand sort of the.

Speaker Change: Why that is relative to the EBIT margin expansion and if there's anything you'd call out specific cash flow 2000, that'd be helpful. Thank you.

Speaker Change: Sure Yeah. So I mean from a cash expense standpoint, we don't have any concentrated exposure to any one country with regards to importing devices. We obviously are planning for a bunch of different scenarios. We've got a number of different strategies in place to kind of best mitigate any any potential impact and obviously all of that then is factored in.

Dan: Roughly similar in fiscal 'twenty six versus 25.

Dan: Can you help us understand sort of the.

Dan: <unk>.

Dan: Why that is relative to the EBIT margin expansion and if there's anything you'd call out specific to cash flow 2000, that'd be helpful. Thank you.

Speaker Change: To the to the to the guidance for both operating margin and free cash flow Martin the free cash margin was was in the modeling notes and so not really a formal guidance, but I think that at a minimum we feel like we can drive the same amount of free cash margin that we did in FY 'twenty five and obviously as we get through the year.

Dan: Sure Yeah. So I mean from a cash expense standpoint, we don't have any concentrated exposure to any one country with regards to importing devices. We obviously are planning for a bunch of different scenarios. We've got a number of different strategies in place to kind of best mitigate any any potential impact and obviously all of that then is fact.

Speaker Change: As we've done in previous years ideally, we can we can move that up based on based on what we're seeing but.

Speaker Change: We feel like that's a good place just to start.

Dan: Third into the to the to the guidance for both operating margin and free cash flow Martin the free cash flow margin was in the modeling notes and so not really formal guidance, but I think that at a minimum we feel like we can drive the same amount of free cash margin that we did in FY 'twenty five and obviously as we get through the year.

Speaker Change: Okay. Thank you.

Speaker Change: The next question comes from Mark with Loop capital, followed by Alexi with J P. Morgan.

Mark: Alright, Thank you for taking my question.

Speaker Change: Just building on an earlier question around your public sector business.

Dan: As we've done in previous years ideally, we can we can move that up based on based on what we're seeing but we feel like that's a good place just to start.

Speaker Change: Public sector, those as kind of a kind of a hot topic of late I realize most of your business. There is state and local it's not federal but there is some momentum building around our state level those type of initiatives and I'd just be curious to get your take on how you think that may or may not affect your business down the road.

Dan: Okay. Thank you.

Speaker Change: The next question comes from Mark with Loop capital, followed by Lexi with JP Morgan.

Lexi: Alright. Thank you for taking my question Sanjay just building on an earlier question around your public sector business.

Speaker Change: Sure. So as you just highlighted most of our businesses in state and local and.

Mark: In public sector, those has kind of become a hot topic of late I realize most of your business. There is state and local it's not federal but there is some momentum building around state level dose type initiatives I'd just be curious to get your take on how you think that may or may not affect your business down the road.

Speaker Change: In General if you think about what our platform does it really helps enable.

Speaker Change: Focus on efficiency you can understand assay utilization you can be more efficient about how you're using those assets. How people are performing work. So that ultimately will help those public department save money.

Speaker Change: And that's why I think we're already seeing momentum in the product absent of a formal effort.

Lexi: Sure so.

Lexi: As you just highlighted most of our businesses in state and local.

Speaker Change: Great. Thank you that's all for me.

Lexi: In General if you think about what our platform does it really helps enable.

Speaker Change: The next question comes from Alexia <unk> with J P. Morgan followed by <unk> with Truest Hi.

Focus on efficiency you can understand assay utilization you can be more efficient about how you're using those assets. How people are performing work. So that ultimately will help those public department save money.

Speaker Change: Hi, This is Alex Smith on for Alexia. Thank you so much for taking our question. So first of all I did want to ask about the penetration of telematics in North America were surprised as to where it is and we're curious in your conversation with customers, what's holding back customers from maybe a dumping them faster.

Lexi: And that's why I think we're already seeing momentum in the product absent of a formal effort.

Speaker Change: Great. Thank you that's all for me.

Speaker Change: It's hard to say it is an interesting statistic in terms of <unk>.

Speaker Change: The next question comes from Alexia <unk> with J P. Morgan followed by <unk> with Trust.

Speaker Change: Fraction of adoption of telematics and then even the safety cameras.

Speaker Change: Hi, This is Alex Smith on for Alexia. Thank you so much for taking our question. So first of all you did want to ask about the penetration of telematics in North America were surprised as to where it is and we're curious in your conversation with customers, what's holding back customers from maybe adopting them faster.

Speaker Change: Some cases, the payback periods are measured in months or in most cases for our customers. So.

Speaker Change: It really is something that it seems like it makes a lot of sense for basically every company in many cases I would say there's opt.

Speaker Change: Operational inertia, there's change management, you need to deploy this across thousands or tens of thousands of assets retrain frontline workers and so that's something we also help us we build great technology, but we also help these companies digitally transform which means figuring out how do you deploy technology out to the frontline.

Speaker Change: It's hard to say it is an interesting statistic in terms of fracture.

Speaker Change: Fraction of adoption of telematics, and then even though safety cameras.

Speaker Change: In some cases, the payback periods are measured in months or in most cases for our customers. So.

Speaker Change: It really is something that it seems like it makes a lot of sense for basically every company in many cases I would say there's.

Speaker Change: And that's how they really get the value from technologies like telematics and safety.

Speaker Change: That makes a lot of sense and for a quick follow up how we spoke a lot. This evening about the strength in the construction business and it's very clear to us that part of the reason part of your value proposition is driving ROI for your customers, but it is a surprising statistic given the crusher in the nonresidential construction market. So is there any other color or context as to.

Speaker Change: <unk> inertia Theres change management, you need to deploy this across thousands or tens of thousands of assets retrained frontline workers and so that's something we also help with we build great technology, but we also help these companies digitally transform which means figuring out how do you deploy technology out to the frontline.

Speaker Change: That's how they really get the value from technologies like telematics and safety.

Speaker Change: Why construction companies are choosing samsara now given the pressure in their underlying market.

Speaker Change: That makes a lot of sense and for a quick follow up are we spoke a lot. This evening about the strength in the construction business and it's very clear to us that part of the reason part of your value proposition is driving ROI for your customers, but it is a surprising statistic given the pressure in the nonresidential construction market. So is there any other color or context.

Speaker Change: Well I think I would direct you back to the <unk>.

Speaker Change: Gains we can drive for efficiency.

Speaker Change: About a business like construction its labor intensive it's asset heavy and so even simple things like understanding which of your assets should be owned by the company versus what should be rented on an as needed basis can have millions of dollars of impact for some of these larger construction companies.

Speaker Change: Why construction companies are choosing samsara now given the pressure in their underlying market.

Speaker Change: And then.

Speaker Change: Well I think I would direct you back to the <unk>.

Again. These are historically industries that had not adopted a lot of the products like telematics for safety. So when it comes to safety a lot of the risks and constructions when they're driving to and from these job sites.

Speaker Change: The gains we can drive for efficiency.

Speaker Change: Think about a business like construction its labor intensive it's asset heavy and so even simple things like understanding which of your assets should be owned by the company versus what should be rented on an as needed basis can have millions of dollars of impact for some of these larger construction companies.

Speaker Change: They're at risk over the road and so understanding distracted driving following distance all those kind of risky behaviors makes.

Speaker Change: Makes a huge bottom line impact for them. So it's hard for me to speak about their top line business in terms of what's driving the revenue, but theres a lot of opportunity for savings and efficiency in terms of how they operate.

Speaker Change: And then again these are historically industries that had not adopted a lot of the products like telematics for safety. So when it comes to safety a lot of the risk and constructions when they're driving to and from these job sites. They are at risk over the road and so understanding distracted driving following distance all those kind of risky behaviors makes.

Speaker Change: It makes a lot of sense. Thanks, so much our last question today comes from Paul with TD Cowen.

Paul: Great. Thanks, Josh This is Paul on for Derek.

Speaker Change: Could you just dive in on.

Speaker Change: Monetization levers for since our intelligence and one way to maybe see that start to show up in the model.

Speaker Change: It makes a huge bottom line impact for them. So it's hard for me to speak about their top line business in terms of what's driving the revenue, but theres a lot of opportunity for savings and efficiency in terms of how they operate.

Speaker Change: Yeah, we're still in beta with those products I think are an important part of the process for us is going through this customer feedback loop understanding the use cases, how they're how they're applying it I mentioned the new logo that's using that.

Speaker Change: It makes a lot of sense. Thanks, so much.

Speaker Change: The next question comes from John aid with tourists followed by coal with TD Cowen.

Speaker Change: AI course builder to build that.

Speaker Change: Connected training and so that's a that's a really interesting use case I think as we get more of those data points will have a better sense of.

Speaker Change: Today.

Speaker Change: How we're going to price it and package it and how it will ultimately impact the model.

Speaker Change: Okay.

Speaker Change: Our last question today comes from Paul with TD Cowen.

Speaker Change: Thanks, guys.

Speaker Change: Great. Thanks, guys. This is Paul on for Derek.

Speaker Change: This concludes the question and answer portion. Thank you all for 10 year Q4 fiscal year 2025 earnings call.

Speaker Change: Could you just dive in on.

Speaker Change: Monetization levers for since our intelligence and one way you could maybe see that start to show up in the model.

Speaker Change: I, let you go out a few short announcements we will be attending the loop capital markets Conference on March 11, and the Wells Fargo Symposium on April 9th we.

Speaker Change: Yeah, we're still in beta with those products I think an important part of the process for us is going through this customer feedback loop understanding the use cases, how they're how they're applying it I mentioned the new logo that's using that.

Speaker Change: We will also be hosting the Namur bus tour on March 13th and the Morgan Stanley Bus tour on April 14th and San Francisco.

Speaker Change: We hope to see you at one of these events.

Speaker Change: AI course builder to build that.

Speaker Change: Finally, we are hosting our Investor day. This June in San Diego, Please send an email to IR at <unk> Dot com, if you're interested in attending in person for those who prefer to attend virtually our IR website will have a web link to the live broadcast.

Speaker Change: Through connected training so that that's a really interesting use case I think as we get more of those data points will have a better sense of.

Speaker Change: How we're going to price it and package it and how it will ultimately impact the model.

Speaker Change: Thanks, guys.

Speaker Change: So for today's meeting if you have any follow up questions you can email us at IR <unk> com. Thanks, everyone.

Speaker Change: Let's call. This concludes the question and answer portion. Thank you all for 10 year Q4 fiscal year 2025 earnings call.

Speaker Change: Before I, let you go out a few short announcements we will be attending the loop capital markets Conference on March 11, and the Wells Fargo Symposium on April 9th well.

Speaker Change: We will also be hosting the Nomura bus tour on March 13th and the Morgan Stanley Bus tour on April 14th in San Francisco.

Speaker Change: We hope to see you at one of these events.

Speaker Change: Finally, we are hosting our Investor day. This June in San Diego, Please send an email to IR at <unk> Dot com, if you're interested in attending in person for those who prefer to attend virtually our IR website will have a web link to the live broadcast.

Speaker Change: That's it for today's meeting if you have any follow up questions you can email us at IR <unk> com.

Everyone Bye.