Samsara Reports Third Quarter Fiscal Year 2025 Financial Results

Samsara Reports Third Quarter Fiscal Year 2025 Financial Results

Q3 revenue of $322.0 million, representing 36% year-over-year growth
Ending ARR of $1.349 billion, representing 35% year-over-year growth
2,303 customers with ARR over $100,000, up 38% year-over-year

SAN FRANCISCO–(BUSINESS WIRE)–
Samsara Inc. (NYSE: IOT), the pioneer of the Connected Operations^® Cloud, reported financial results for the third quarter ended November 2, 2024, and released a shareholder letter accessible from the Samsara investor relations website at investors.samsara.com.

“We achieved another strong quarter of durable and efficient growth at a greater scale,” said Sanjit Biswas, CEO and co-founder of Samsara. “We ended Q3 at $1.35 billion in ARR, growing 35% year-over-year, and achieved a quarterly record of 10% adjusted free cash flow margin. As we continue to grow, we are excited about the innovation we are unlocking with more scale. We now collect over 10 trillion data points annually in the Samsara platform and use this data asset to bring AI to physical operations. We believe AI will play a powerful role in transforming the safety, efficiency, and sustainability of our customers’ operations.”

Third Quarter Fiscal Year 2025 Financial Highlights

(In millions, except percentage, percentage points, and per share data)

	Q3 FY2025			Q3 FY2024			Y/Y Change
Annual Recurring Revenue (ARR)	$	1,348.9		$	1,002.7			35	%
Total revenue	$	322.0		$	237.5			36	%
GAAP gross profit	$	246.0		$	175.9		$	70.0
GAAP gross margin		76	%		74	%	2 pts
Non-GAAP gross profit	$	249.8		$	179.0		$	70.8
Non-GAAP gross margin		78	%		75	%	2 pts
GAAP operating loss	$	(47.4	)	$	(54.8	)	$	7.4
GAAP operating margin		(15	%)		(23	%)	8 pts
Non-GAAP operating income	$	33.9		$	12.7		$	21.2
Non-GAAP operating margin		11	%		5	%	5 pts
GAAP net loss per share, basic and diluted	$	(0.07	)	$	(0.08	)	$	0.01
Non-GAAP net income per share, basic	$	0.08		$	0.04		$	0.04
Non-GAAP net income per share, diluted	$	0.07		$	0.04		$	0.03
Net cash provided by operating activities	$	36.0		$	11.9		$	24.1
Net cash provided by operating activities margin		11	%		5	%	6 pts
Adjusted free cash flow	$	31.2		$	8.5		$	22.7
Adjusted free cash flow margin		10	%		4	%	6 pts

__________

Note: Numbers are rounded for presentation purposes.

We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with generally accepted accounting principles (“GAAP”). See the section titled “Use of Non-GAAP Financial Measures” for an explanation of non-GAAP financial measures and the tables in the section titled “Reconciliation Between GAAP and Non-GAAP Financial Measures” for a reconciliation of GAAP to non-GAAP financial measures.

Financial Outlook

Our guidance includes GAAP and non-GAAP financial measures. For the fourth quarter and fiscal year 2025, Samsara expects the following:

	Q4 FY2025 Outlook	FY 2025 Outlook
Total revenue	$334 million – $336 million	$1.237 billion – $1.239 billion
Year/Year revenue growth	21% – 22%	32%
Year/Year adjusted revenue growth ⁽¹⁾	30% – 31%	35%
Non-GAAP operating margin	9%	7%
Non-GAAP net income per share, diluted	$0.07 – $0.08	$0.22 – $0.23

__________
⁽¹⁾		Q4 FY24 was a 14-week fiscal quarter instead of a typical 13-week fiscal quarter. To enable comparability across periods, adjusted revenue and adjusted revenue growth rate are calculated by multiplying Q4 FY24 revenue by 13/14 to remove the impact of an additional week of revenue recognition in Q4 FY24.

A reconciliation of non-GAAP guidance financial measures to corresponding GAAP guidance financial measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty and potential variability of expenses, such as stock-based compensation expense-related charges, that may be incurred in the future and cannot be reasonably determined or predicted at this time. It is important to note that these factors could be material to our results of operations computed in accordance with GAAP.

About Samsara

Samsara is the pioneer of the Connected Operations^® Cloud, which is a system of record that enables businesses that depend on physical operations to harness Internet of Things (IoT) data to develop actionable insights and improve their operations. With tens of thousands of customers across North America and Europe, Samsara is a proud technology partner to the people who keep our global economy running, including the world’s leading organizations across industries in transportation, construction, wholesale and retail trade, field services, logistics, utilities and energy, government, healthcare and education, manufacturing, food and beverage, and others. The company’s mission is to increase the safety, efficiency, and sustainability of the operations that power the global economy.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements may relate to, but are not limited to, expectations of future operating results or financial performance, the calculation of certain of our key financial and operating metrics, our market opportunity, industry developments and trends, customer demand for our solution, macroeconomic conditions and any expected benefits of our products, including cost savings and return on investment, our technological capability, including AI, and our competitive position, as well as assumptions relating to the foregoing.

Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified and could cause actual results and events to differ. In some cases, you can identify forward-looking statements by terminology such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “goal,” “guidance,” “intend,” “may,” “objective,” “ongoing,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” or the negative of these terms or other comparable expressions that concern our expectations, strategies, plans, or intentions. You should not put undue reliance on any forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. Forward-looking statements are based on information available at the time those statements are made, including information furnished to us by third parties that we have not independently verified, and/or management’s good faith beliefs and assumptions as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this press release may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements.

These risks and uncertainties include our ability to retain customers and expand the Applications used by our customers, our ability to attract new customers, our future financial performance, including trends in revenue and annual recurring revenue, net retention rate, costs of revenue, gross profit or gross margin, operating expenses, customer counts, non-GAAP financial measures (such as adjusted revenue, adjusted revenue growth rate, non-GAAP gross margin, non-GAAP operating margin, free cash flow margin, and adjusted free cash flow margin), our ability to achieve or maintain profitability, the demand for our products or for solutions for connected operations in general, the impact of the Russia-Ukraine conflict, geopolitical tensions involving China, the conflict in the Middle East, the emergence of public health crises, the results of the recent presidential and congressional elections in the United States, and macroeconomic conditions globally on our and our customers’, partners’ and suppliers’ operations and future financial performance, possible harm caused by silicon component shortages and other supply chain constraints, the length of our sales cycles, possible harm caused by a security breach or other incident affecting our or our customers’ assets or data, our ability to compete successfully in competitive markets, our ability to respond to rapid technological changes, and our ability to continue to innovate and develop new Applications. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in our filings and reports that we may file from time to time with the Securities and Exchange Commission, including our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.

Except as required by law, we do not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise.

Use of Non-GAAP Financial Measures

This document includes certain non-GAAP financial measures. Reconciliations of non-GAAP financial measures to our financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data.

Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as substitutes for financial information presented under GAAP. There are a number of limitations related to the use of non-GAAP financial measures versus comparable financial measures determined under GAAP. For example, other companies in our industry may calculate these non-GAAP financial measures differently or may use other measures to evaluate their performance. In addition, free cash flow and adjusted free cash flow do not reflect our future contractual commitments or the total increase or decrease of our cash balance for a given period. These and other limitations could reduce the usefulness of these non-GAAP financial measures as analytical tools. Investors are encouraged to review the related GAAP financial measures and the reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures and to not rely on any single financial measure to evaluate our business.

We present these non-GAAP financial measures to assist investors in seeing Samsara’s operating results through the eyes of management and because we believe that these measures provide an additional tool for investors to evaluate our business.

Expenses Excluded from Non-GAAP Performance Financial Measures—Stock-based compensation expense-related charges include the amortization of deferred stock-based compensation expense for capitalized software and employer taxes on employee equity transactions. Stock-based compensation expense-related charges are excluded because they are primarily a non-cash expense that management believes is not reflective of our ongoing operational performance. Employer taxes on employee equity transactions, which are a cash expense, are excluded because such taxes are directly tied to the timing and size of employee equity transactions and the future fair market value of our common stock, which may vary from period to period independent of the operating performance of our business.

Lease modification, impairment, and related charges, and legal settlements are excluded because management believes that such charges are not reflective of our ongoing operational performance.

Operating Metrics and Non-GAAP Financial Measures

Annual Recurring Revenue—We define ARR as the annualized value of subscription contracts that have commenced revenue recognition as of the measurement date.

Adjusted Revenue and Adjusted Revenue Growth Rate—Q4 FY24 was a 14-week fiscal quarter instead of a typical 13-week fiscal quarter. To enable comparability across periods, adjusted revenue and adjusted revenue growth rate are calculated by multiplying Q4 FY24 revenue by 13/14 to remove the impact of an additional week of revenue recognition in Q4 FY24.

Non-GAAP Gross Profit and Non-GAAP Gross Margin—We define non-GAAP gross profit as gross profit excluding the effect of stock-based compensation expense-related charges included in cost of revenue. Non-GAAP gross margin is defined as non-GAAP gross profit as a percentage of total revenue. We use non-GAAP gross profit and non-GAAP gross margin in conjunction with traditional GAAP measures to evaluate our financial performance. We believe that non-GAAP gross profit and non-GAAP gross margin provide our management and investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of operations.

Non-GAAP Income (Loss) from Operations and Non-GAAP Operating Margin—We define non-GAAP income (loss) from operations, or non-GAAP operating income (loss), as income (loss) from operations excluding the effect of stock-based compensation expense-related charges, lease modification, impairment, and related charges, and legal settlements. Non-GAAP operating margin is defined as non-GAAP operating income (loss) as a percentage of total revenue. We use non-GAAP income (loss) from operations and non-GAAP operating margin in conjunction with traditional GAAP measures to evaluate our financial performance. We believe that non-GAAP income (loss) from operations and non-GAAP operating margin provide our management and investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of operations.

Non-GAAP Net Income (Loss) and Non-GAAP Net Income (Loss) per Share—We define non-GAAP net income (loss) as net income (loss) excluding the effect of stock-based compensation expense-related charges, lease modification, impairment, and related charges, and legal settlements. Our non-GAAP net income (loss) per share–basic is calculated by dividing non-GAAP net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Our non-GAAP net income per share–diluted is calculated by giving effect to all potentially dilutive common stock equivalents (stock options, restricted stock units, and shares issued under our 2021 Employee Stock Purchase Plan) to the extent they are dilutive. Non-GAAP net loss per share–diluted is the same as non-GAAP net loss per share–basic as the inclusion of all potential dilutive common stock equivalents would be antidilutive. We use non-GAAP net income (loss) and non-GAAP net income (loss) per share in conjunction with traditional GAAP measures to evaluate our financial performance. We believe that non-GAAP net income (loss) and non-GAAP net income (loss) per share provide our management and investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of operations.

Free Cash Flow and Free Cash Flow Margin—We define free cash flow as net cash provided by (used in) operating activities reduced by cash used for purchases of property and equipment. Free cash flow margin is calculated as free cash flow as a percentage of total revenue. We believe that free cash flow and free cash flow margin, even if negative, are useful in evaluating liquidity and provide information to management and investors about our ability to fund future operating needs and strategic initiatives.

Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin—We define adjusted free cash flow as free cash flow excluding the cash impact of non-recurring capital expenditures associated with the build-out of our corporate office facilities in San Francisco, California, net of tenant allowances, and legal settlements. Adjusted free cash flow margin is calculated as adjusted free cash flow as a percentage of total revenue. We believe that adjusted free cash flow and adjusted free cash flow margin, even if negative, are useful in evaluating liquidity and provide information to management and investors about our ability to fund future operating needs and strategic initiatives by excluding the impact of non-recurring events.

Webcast Information and Shareholder Letter

An investor presentation and accompanying shareholder letter is accessible from the Samsara investor relations website at https://investors.samsara.com/. Samsara will host a live webcast to discuss the results at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) today. The live webcast may be accessed at https://investors.samsara.com/. Following the webcast, a replay will be accessible from the same website.

SAMSARA INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited)

	As of
	November 2, 2024			February 3, 2024
Assets
Current assets:
Cash and cash equivalents	$	160,348		$	135,536
Short-term investments		511,564			412,126
Accounts receivable, net		178,723			161,829
Inventories		39,366			22,238
Connected device costs, current		115,093			104,008
Prepaid expenses and other current assets		34,321			51,221
Total current assets		1,039,415			886,958
Restricted cash		20,241			19,202
Long-term investments		241,131			276,166
Property and equipment, net		56,418			54,969
Operating lease right-of-use assets		69,215			81,974
Connected device costs, non-current		234,825			230,782
Deferred commissions		196,013			177,562
Other assets, non-current		6,610			7,232
Total assets	$	1,863,868		$	1,734,845
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	31,522		$	46,281
Accrued expenses and other current liabilities		63,028			61,437
Accrued compensation and benefits		36,013			37,068
Deferred revenue, current		505,557			426,369
Operating lease liabilities, current		18,000			20,661
Total current liabilities		654,120			591,816
Deferred revenue, non-current		134,165			139,117
Operating lease liabilities, non-current		67,954			78,830
Other liabilities, non-current		8,494			9,935
Total liabilities		864,733			819,698
Stockholders’ equity:
Preferred stock		—			—
Class A common stock		11			9
Class B common stock		23			23
Class C common stock		—			—
Additional paid-in capital		2,597,904			2,368,597
Accumulated other comprehensive income		—			1,616
Accumulated deficit		(1,598,803	)		(1,455,098	)
Total stockholders’ equity		999,135			915,147
Total liabilities and stockholders’ equity	$	1,863,868		$	1,734,845

SAMSARA INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (In thousands, except share and per share data) (Unaudited)

	Three Months Ended						Nine Months Ended
	November 2, 2024			October 28, 2023			November 2, 2024			October 28, 2023
Revenue	$	321,981		$	237,534		$	902,909		$	661,111
Cost of revenue		76,027			61,585			218,017			178,008
Gross profit		245,954			175,949			684,892			483,103
Operating expenses:
Research and development		76,990			60,820			226,439			185,155
Sales and marketing		150,065			116,780			448,995			353,643
General and administrative		62,660			48,354			177,410			139,888
Lease modification, impairment, and related charges		3,609			4,762			3,609			4,762
Total operating expenses		293,324			230,716			856,453			683,448
Loss from operations		(47,370	)		(54,767	)		(171,561	)		(200,345	)
Interest income and other income, net		10,057			9,378			29,767			28,493
Loss before provision for income taxes		(37,313	)		(45,389	)		(141,794	)		(171,852	)
Provision for income taxes		493			142			1,911			1,503
Net loss	$	(37,806	)	$	(45,531	)	$	(143,705	)	$	(173,355	)
Other comprehensive loss:
Foreign currency translation adjustments, net of tax		(361	)		(820	)		(1,771	)		276
Unrealized gains (losses) on investments, net of tax		(1,244	)		382			155			(1,063	)
Other comprehensive loss		(1,605	)		(438	)		(1,616	)		(787	)
Comprehensive loss	$	(39,411	)	$	(45,969	)	$	(145,321	)	$	(174,142	)
Basic and diluted net loss per share:
Net loss per share attributable to common stockholders, basic and diluted	$	(0.07	)	$	(0.08	)	$	(0.26	)	$	(0.33	)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted		559,006,539			537,464,892			553,858,923			531,873,324

SAMSARA INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)

	Three Months Ended						Nine Months Ended
	November 2, 2024			October 28, 2023			November 2, 2024			October 28, 2023
Operating activities
Net loss	$	(37,806	)	$	(45,531	)	$	(143,705	)	$	(173,355	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		6,757			3,646			15,845			10,839
Stock-based compensation expense		72,592			59,791			208,852			172,395
Net accretion of discounts on investments		(3,884	)		(4,104	)		(12,173	)		(12,727	)
Lease modification, impairment, and related charges		3,609			4,762			3,609			4,762
Other non-cash adjustments		2,280			1,937			3,992			2,046
Changes in operating assets and liabilities:
Accounts receivable, net		(3,032	)		(2,943	)		(23,192	)		3,824
Inventories		(1,775	)		(5,336	)		(20,181	)		13,467
Prepaid expenses and other current assets		3,942			(17,691	)		16,899			(17,448	)
Connected device costs		(4,240	)		(9,333	)		(15,127	)		(36,997	)
Deferred commissions		(7,569	)		(8,219	)		(18,451	)		(21,297	)
Other assets, non-current		(112	)		(104	)		822			267
Accounts payable and other liabilities		(11,814	)		5,043			(13,791	)		(206	)
Deferred revenue		17,000			26,684			74,236			77,155
Operating lease right-of-use assets and liabilities, net		65			3,287			165			7,338
Net cash provided by operating activities		36,013			11,889			77,800			30,063
Investing activities
Purchases of property and equipment		(4,776	)		(3,355	)		(14,830	)		(8,858	)
Purchases of investments		(196,029	)		(167,012	)		(526,086	)		(541,401	)
Proceeds from sales of investments		—			1,700			1,247			6,174
Proceeds from maturities and redemptions of investments		167,040			167,215			472,766			508,093
Other investing activities		(100	)		—			(200	)		(50	)
Net cash used in investing activities		(33,865	)		(1,452	)		(67,103	)		(36,042	)
Financing activities
Payment of taxes related to net share settlement of equity awards		(7	)		—			(7	)		—
Proceeds from issuance of common stock in connection with equity compensation plans		36			265			16,959			13,435
Payment of principal on finance leases		(396	)		(501	)		(1,340	)		(1,416	)
Net cash provided by (used in) financing activities		(367	)		(236	)		15,612			12,019
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash		105			(542	)		(458	)		(24	)
Net increase in cash, cash equivalents, and restricted cash		1,886			9,659			25,851			6,016
Cash, cash equivalents, and restricted cash, beginning of period		178,703			220,123			154,738			223,766
Cash, cash equivalents, and restricted cash, end of period	$	180,589		$	229,782		$	180,589		$	229,782

SAMSARA INC. RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL MEASURES (In thousands, except percentages and per share data) (Unaudited)

	Three Months Ended						Nine Months Ended
	November 2, 2024			October 28, 2023			November 2, 2024			October 28, 2023
Gross profit and gross margin reconciliation
GAAP gross profit	$	245,954		$	175,949		$	684,892		$	483,103
Add:
Stock-based compensation expense-related charges ⁽¹⁾		3,879			3,100			11,584			9,307
Non-GAAP gross profit	$	249,833		$	179,049		$	696,476		$	492,410
GAAP gross margin		76	%		74	%		76	%		73	%
Non-GAAP gross margin		78	%		75	%		77	%		74	%

Operating income (loss) and operating margin reconciliation
GAAP loss from operations	$	(47,370	)	$	(54,767	)	$	(171,561	)	$	(200,345	)
Add:
Stock-based compensation expense-related charges ⁽¹⁾		77,677			62,712			225,579			183,355
Lease modification, impairment, and related charges		3,609			4,762			3,609			4,762
Non-GAAP income (loss) from operations	$	33,916		$	12,707		$	57,627		$	(12,228	)
GAAP operating margin		(15	%)		(23	%)		(19	%)		(30	%)
Non-GAAP operating margin		11	%		5	%		6	%		(2	%)

	Three Months Ended						Nine Months Ended
	November 2, 2024			October 28, 2023			November 2, 2024			October 28, 2023
Net income (loss) reconciliation
GAAP net loss	$	(37,806	)	$	(45,531	)	$	(143,705	)	$	(173,355	)
Add:
Stock-based compensation expense-related charges		77,677			62,712			225,579			183,355
Lease modification, impairment, and related charges		3,609			4,762			3,609			4,762
Non-GAAP net income ⁽³⁾	$	43,480		$	21,943		$	85,483		$	14,762

SAMSARA INC. RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL MEASURES (In thousands, except percentages and per share data) (Unaudited)

	Three Months Ended						Nine Months Ended
	November 2, 2024			October 28, 2023			November 2, 2024			October 28, 2023
Net income (loss) per share, basic and diluted, reconciliation
GAAP net loss per share attributable to common stockholders, basic	$	(0.07	)	$	(0.08	)	$	(0.26	)	$	(0.33	)
Total impact on net loss per share, basic, from non-GAAP adjustments		0.15			0.12			0.41			0.36
Non-GAAP net income per share attributable to common stockholders, basic	$	0.08		$	0.04		$	0.15		$	0.03

GAAP net loss per share attributable to common stockholders, diluted	$	(0.07	)	$	(0.08	)	$	(0.26	)	$	(0.33	)
Total impact on net loss per share, diluted, from non-GAAP adjustments		0.14			0.12			0.41			0.36
Non-GAAP net income per share attributable to common stockholders, diluted ⁽⁴⁾	$	0.07		$	0.04		$	0.15		$	0.03

Weighted-average shares used in computing GAAP net loss per share attributable to common stockholders, basic and diluted		559,006,539			537,464,892			553,858,923			531,873,324
Weighted-average shares used in computing non-GAAP net income per share attributable to common stockholders, basic		559,006,539			537,464,892			553,858,923			531,873,324
Weighted-average shares used in computing non-GAAP net income per share attributable to common stockholders, diluted ⁽⁴⁾		580,923,231			566,082,414			576,681,883			559,620,309

SAMSARA INC. RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL MEASURES (In thousands, except percentages and per share data) (Unaudited)

	Three Months Ended						Nine Months Ended
	November 2, 2024			October 28, 2023			November 2, 2024			October 28, 2023
Free cash flow, adjusted free cash flow, free cash flow margin, and adjusted free cash flow margin reconciliation
Net cash provided by operating activities	$	36,013		$	11,889		$	77,800		$	30,063
Purchases of property and equipment		(4,776	)		(3,355	)		(14,830	)		(8,858	)
Free cash flow		31,237			8,534			62,970			21,205
Purchases of property and equipment for build-out of corporate office facilities, net of tenant allowances ⁽⁵⁾		—			—			—			(10,179	)
Adjusted free cash flow	$	31,237		$	8,534		$	62,970		$	11,026
Net cash provided by operating activities margin		11	%		5	%		9	%		5	%
Free cash flow margin		10	%		4	%		7	%		3	%
Adjusted free cash flow margin		10	%		4	%		7	%		2	%

__________
⁽¹⁾		Stock-based compensation expense-related charges were included in the following line items of our condensed consolidated statements of operations and comprehensive loss as follows:

	Three Months Ended				Nine Months Ended
	November 2, 2024		October 28, 2023		November 2, 2024		October 28, 2023
Cost of revenue	$	3,879	$	3,100	$	11,584	$	9,307
Research and development		28,574		22,594		82,076		68,716
Sales and marketing		23,441		20,219		66,843		55,310
General and administrative		21,783		16,799		65,076		50,022
Total stock-based compensation expense-related charges ⁽²⁾	$	77,677	$	62,712	$	225,579	$	183,355

⁽²⁾		Stock-based compensation expense-related charges included approximately $4.5 million and $15.2 million of employer taxes on employee equity transactions for the three and nine months ended November 2, 2024, respectively, and approximately $2.9 million and $11.0 million of employer taxes on employee equity transactions for the three and nine months ended October 28, 2023, respectively.
⁽³⁾		There were no material income tax effects on our non-GAAP adjustments for all periods presented.
⁽⁴⁾		For each period in which we had non-GAAP net income, diluted non-GAAP net income per share is calculated using weighted-average number of shares of common stock outstanding during the period, adjusted for dilutive potential shares that were assumed outstanding during the period.
⁽⁵⁾		In April 2023, we settled a lease dispute which was primarily related to lease incentives associated with leasehold improvements in the form of a tenant allowance and received $11.3 million.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241205052629/en/

Investor Contact:

Mike Chang

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Media Contact:

Adam Simons

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KEYWORDS: United States North America Canada California

INDUSTRY KEYWORDS: Networks Internet IOT (Internet of Things) Data Management Technology

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