삼사라(IOT) 2027 회계연도 2분기 실적 발표 콘퍼런스 콜: ARR 21억 달러 달성

핵심 요약

• 삼사라(NYSE: IOT)는 2027 회계연도 2분기에 1억 3,400만 달러의 순신규 ARR을 추가하며 연간 반복 매출(ARR) 21억 달러로 마감했으며, 이는 전년 동기 대비 30% 증가한 실적입니다.
• 매출은 전년 동기 대비 30% 증가한 5억 800만 달러를 기록했으며, 고정 환율 기준으로는 29% 증가했습니다. 비GAAP 영업이익률은 6%포인트 확대된 21%를 기록했습니다.
• 대형 고객이 주요 성장 동력으로 유지되었습니다. 연간 10만 달러 이상을 창출하는 고객의 ARR은 13억 달러에 달해 38% 증가했으며, 100만 달러 이상 고객의 ARR은 50% 이상 성장하며 5억 달러를 돌파했습니다.
• 신제품은 3개 분기 연속으로 순신규 ACV의 20% 이상을 창출했습니다. 일부 신규 AI 기능의 도입은 2개월 만에 4배 이상 증가했습니다.
• 경영진은 2027 회계연도 매출 가이던스로 26% 성장을 나타내는 20억 4,300만 달러~20억 4,700만 달러를 제시했으며, 비GAAP 영업이익률 21%와 연간 GAAP 기준 흑자를 예상했습니다.
• 수요 강세로 인해 IoT 기기 및 재고에 대한 선제적 지출이 더 많이 필요해졌습니다. 경영진은 이제 2027 회계연도 잉여현금흐름 마진이 2026 회계연도보다 약 100bp 낮아질 것으로 예상하고 있습니다.

주요 재무 데이터

최근 12개월간 순신규 ARR은 4억 8,500만 달러로, 고정 환율 기준 27% 증가했습니다. 회사는 또한 이번 분기 동안 순신규 ACV가 100만 달러를 초과하는 거래를 9건 완료했습니다.

사업 및 영업 실적

대형 기업 고객의 확장이 이번 분기 모멘텀의 대부분을 견인했습니다. 경영진은 신규 고객 추가도 견조하게 유지되었으나, 기존 고객 계정 내에서의 확장이 가장 큰 고객군 성장에 더 크게 기여했다고 밝혔습니다.

다중 제품 도입이 지속적으로 증가했습니다. ARR 10만 달러 이상 고객 중 96%가 2개 이상의 제품을 사용했으며, 72%는 3개 이상을 사용했습니다. 이번 분기 순신규 ACV 상위 10개 거래 중 9개에 2개 이상의 제품이 포함되었고, 7개에는 4개 이상의 제품이 포함되었습니다.

신제품은 3개 분기 연속 순신규 ACV의 20% 이상을 차지했습니다. 60건 이상의 거래에서 신제품 순신규 ACV가 10만 달러 이상 포함되었습니다. 경영진은 수요가 단일 제품에 집중되지 않고 포트폴리오 전반에 걸쳐 분산되었다고 밝혔습니다.

비욘드(Beyond) 고객 컨퍼런스에서 선보인 신규 제품에는 트래킹 라벨(Tracking Label), 360 카메라, 웨이스트 인텔리전스(Waste Intelligence), 그라운드 인텔리전스(Ground Intelligence), 그리고 안전·정비·배차용 에이전트가 포함되었습니다. AI 멀티캠(AI Multicam)은 교체 주기가 아닌 추가적인 확장 기회로 설명되었으며, 차량 주변의 시야를 확장하고 운영 인텔리전스 애플리케이션을 지원합니다.

삼사라의 플랫폼은 연간 30조 개 이상의 데이터 포인트를 수집했으며, 이는 40% 이상 증가한 수치입니다. 고객들은 지난 1년 동안 1,050억 마일 이상의 주행 거리를 기록했고 3억 4,000만 개의 워크플로우를 디지털화했습니다. 경영진은 이 독자적인 물리적 운영 데이터를 AI 모델을 개선하고 워크플로우를 자동화하기 위한 입력값으로 보고 있습니다.

현장 서비스(Field services)는 이번 분기 삼사라에서 순신규 ACV 기준 가장 큰 버티컬(산업군)이었습니다. 운송 분야 성장은 3개 분기 연속 전분기 대비 가속화되었으며, 공공 부문은 두 번째로 높은 순신규 ACV 비중을 기록했습니다. 공공 부문 수요에는 AI 멀티캠, 커넥티드 자산 유지보수(Connected Asset Maintenance), 그라운드 인텔리전스의 도입이 포함되었습니다.

해외 시장은 순신규 ACV의 18%를 창출하며 분기 최고 기록과 타이를 이뤘습니다. 유럽은 유럽 본토에서 삼사라의 역대 최대 규모 거래에 힘입어 4개 분기 연속 50% 이상의 순신규 ACV 성장을 기록했습니다. 멕시코의 순신규 ACV 성장률 역시 2개 분기 연속 가속화되었습니다.

경영진 가이던스

가이던스는 2026년 8월 2일 기준 환율을 바탕으로 작성되었습니다. 경영진은 이 전망에 잠재적인 하방 시나리오가 반영되어 있다고 밝혔습니다.

경영진은 2027 회계연도 잉여현금흐름 마진이 2026 회계연도보다 약 100bp 낮아질 것으로 예상하고 있습니다. 이러한 변동은 주로 더 강력한 성장을 지원하는 데 필요한 추가 IoT 기기, 공급 수급에 대비한 재고 매입, 하반기 공급망 비용 상승을 반영합니다.

리스크 및 주시 사항

• IoT 하드웨어 비용은 선불로 지급되는 반면, 관련 구독 매출은 고객 계약 기간에 걸쳐 인식됩니다. 따라서 성장이 빨라질수록 단기 잉여현금흐름에 압박을 줄 수 있습니다.
• 경영진은 부품 및 운송 비용 상승과 유동적인 공급망 환경을 언급했습니다. 과거 공급 주기를 바탕으로 이러한 압박이 일시적일 것으로 예상했으나, 정상화 일정에 대해서는 구체적으로 밝히지 않았습니다.
• 기기 비용 상승은 매출원가로 상각되면서 시간이 지남에 따라 매출총이익률에 영향을 미칠 수 있습니다. 회사는 기기당 매출 증대, 제품 구성 개선, 비용 최적화를 통해 이를 상쇄한다는 계획입니다.
• AI 에이전트 도입은 아직 초기 단계에 있습니다. 현장 근로자가 AI 시스템과 처음 상호작용함에 따라 고객에게 설정 지원 및 변화 관리가 필요할 수 있습니다.
• 경영진은 많은 고객이 추가 AI 애플리케이션을 도입하기 전에 먼저 텔레매틱스 및 카메라 하드웨어를 설치해야 하기 때문에 영업 주기는 전반적으로 일정하게 유지되고 있다고 말했습니다.

애널리스트 Q&A 주요 내용

대규모 성장이 가속화되는 원동력은 무엇인가요? 경영진은 복잡한 물리적 운영을 디지털화하는 대기업과 삼사라의 확장되는 제품 포트폴리오를 원인으로 꼽았습니다. 기존 고객들은 더 많은 자산, 근로자, 부서에 걸쳐 제품을 추가하고 도입을 확대하고 있습니다.

신제품의 비중은 얼마나 중요한가요? 신제품은 3개 분기 연속으로 순신규 ACV의 20% 이상을 기여했습니다. 제품 판매 전문 인력이 도입을 지원했으나, 경영진은 핵심 제품 역시 여전히 상당한 성장 잠재력을 지니고 있다고 강조했습니다.

AI 도입이 상업적 활동으로 어떻게 이어지고 있나요? 1,000곳 이상의 고객이 최신 AI 기능을 활용하고 있습니다. 현재 활용 사례로는 운전자 알림, 안전 브리핑, 보증 회수, 배차 워크플로우 등이 있으나, 경영진은 실제 운영 환경에서의 도입은 아직 초기 단계라고 설명했습니다.

공공 부문 수요가 강화되는 이유는 무엇인가요? 경영진은 이 실적이 헌신적인 시장 개척(GTM) 투자와 그라운드 인텔리전스, AI 멀티캠, 커넥티드 자산 유지보수 등의 제품 덕분이라고 분석했습니다. 대부분의 공공 부문 고객이 주 및 지방 정부 기관이어서 미국 연방 정부의 회계연도 말 주기에 대한 노출이 제한적입니다.

삼사라 네트워크 밀도가 높아지면 추가적인 활용 사례가 창출되나요? 경영진은 네트워크 밀도가 높아지면 자산 가시성이 향상되고 일회성 단방향 배송용으로 설계된 일회용 블루투스 라벨인 트래킹 라벨과 같은 제품을 지원할 수 있다고 말했습니다.

하위 시장 수요가 약화되고 있나요? 경영진은 ARR 10만 달러 미만 고객도 계속해서 빠르게 성장하고 있으나, 10만 달러 이상 고객군이 더 빠르게 성장하며 전체 ARR에서 차지하는 비중이 63%로 확대되었다고 밝혔습니다.

실적 발표 컨퍼런스 콜 전문

전체 실적 발표 컨퍼런스 콜 녹취록

경영진 발표

Unknown Executive

[Presentation]

Good afternoon. Welcome to Samsara's Second Quarter Fiscal 2027 Earnings Call. I'm Marty Winick, Director of Finance and Strategy at Samsara. Joining me today are Samsara's Chief Executive Officer and Co-Founder, Sanjit Biswas; and our Chief Financial Officer, Dominic Phillips. In addition to our prepared remarks on this call, additional information can be found in our shareholder letter, press release, investor presentation and SEC filings on our Investor Relations website at investors.samsara.com.

The matters we'll discuss today include forward-looking statements. Actual results may differ materially from those contained in the forward-looking statements and are subject to risks and uncertainties described more fully in our SEC filings. Any forward-looking statements that we make on this call are based on assumptions as of today, September 3, 2026, and we undertake no obligation to update these statements as a result of new information or future events unless required by law.

During today's call, we will discuss our second quarter fiscal 2027 financial results. We'd like to point out that the company reports non-GAAP results in addition to and not as a substitute for or superior to financial measures calculated in accordance with GAAP. We also report both actual and constant currency growth rates for certain metrics. On the call, we will only provide constant currency commentary when there is a difference. Reconciliations of GAAP to non-GAAP financial measures and additional information on constant currency are provided in our press release and investor presentation. We'll make opening remarks, dive into highlights for the quarter and then open up the call for Q&A.

With that, I'll hand it over to Sanjit.

Sanjit Biswas

Thanks, Marty, and thank you, everyone, for joining us today. Samsara delivered another quarter of durable and efficient growth. In Q2, we crossed $2.1 billion in ARR, growing 30% year-over-year, which is driven by $134 million net new ARR. Our largest customers continue to drive our growth. Our $100,000-plus customers now represent $1.3 billion in ARR, growing 38% year-over-year. In Q2, we added 242 customers with $100,000 or more in ARR and 20 customers with $1 million or more in ARR. Both are quarterly records. Large customer wins in the quarter include APi Group, a global provider of safety, security and specialty services. Sonepar, the world's largest B2B distributor of electrical products and one of the world's largest e-commerce companies.

As our customer base grows, our data asset scales with it. This quarter, we surpassed 30 trillion data points collected annually on the Samsara platform, up more than 40% year-over-year. This data spans vehicles, powered non-powered equipment, job sites and frontline workers. It covers a wide range of industries, geographies and customer sizes. Behind that number is the scale of our customers. More than 105 billion miles driven and 340 million workflows digitized over the last year. This is proprietary time series data captured by sensors operating in the physical world. It can't be replicated or found on the Internet. Each year of operating history compounds its value, improving our AI models and widening our moat.

In June, we hosted Beyond our annual customer conference. It was our biggest Beyond yet, with over 4,000 attendees from across physical operations. Over 3 days, leaders shared the challenges they're facing. They also shared how they plan to solve them with more visibility across our operations and AI to automate work. Their top priorities include safety, operational ROI, real-time visibility and AI and agentic automation. Our platform built on one of the world's largest operational data assets is what helps us address our customers' hardest challenges. At Beyond, we launched our newest wave of products including the Tracking Label, which is the single-use Bluetooth smart label powered by the Samsara network. It gives near real-time visibility into any shipment across any carrier; 360 Camera, the first camera system built for operated equipment, giving operators complete view around the vehicle; Waste Intelligence, an AI-powered solution that verifies service events and detects overfilled bins; Ground Intelligence, which continuously maps road defects across our data set; and our agents for safety, maintenance and dispatch that automate multistep task work like warranty recovery, coaching workflows and back-office dispatch.

We're seeing good momentum from Beyond, which is showing up in usage. Customer adoption of some of our latest AI features is up more than 4x in the last 2 months. Samsara has built to run the world's largest and most complex physical operations. As these organizations digitize, we become their platform of choice. Our largest customers are driving our growth. ARR from our $100,000-plus customer cohort accelerated for the fourth straight quarter. Customers choose Samsara because our platform can digitize their vehicles, equipment, sites and workers at the scale and reliability their operations demand. What often starts is a solution to one operational problem becomes a platform they standardize on. Each new product can deepen their ROI and widen the path to their next expansion.

Our device footprint accelerates that expansion. With multiple products attached to a single hardware device, new products deploy faster with no downtime for asset replacement. Customers get quicker time to value and less installation friction. For example, a Vehicle Gateway powers routing and connected asset maintenance. Our AI Dash Cam and AI Multicam power our new operational AI applications, including Ground Intelligence and Waste Intelligence.

I'd like to share 2 expansions from the quarter that show how large customers deepen their partnership with Samsara over time. In Q2, we expanded our partnership with one of the largest cities in the U.S. They landed with us in Q3 last year, starting with vehicle gateways and AI Dash Cams, their fleet management division. This quarter, that expanded into a multi-department rollout, connecting assets across the city. They're extending vehicle gateways and AI Dash Cams to every department, including police, fire, parks, public works and transit. They cover a range of vehicles from police cars and fire trucks to construction equipment and snow plows. For their fire and sanitation fleets, they added AI Multicam to reduce backside and sideswipe accidents in dense urban traffic. Connected asset maintenance replaces their existing system and consolidates maintenance management onto 1 platform.

With ground intelligence, they now have coverage across 7,600 lane miles for pothole detection, pavement preservation through mobilization and 311 calls and claims. We are proud to partner with the city to make even more of an impact together. We also expanded our partnership with a leading heavy civil and general contracting company that's been in business for over 75 years. They are benefiting from many physical AI tailwinds, including data center, site prep, power and energy systems expansion and public infrastructure buildout. They have a complex operation and run $1 billion of equipment, including thousands of excavators, skid steers, cranes and loaders. They were using vehicle gateways and came to us to evaluate AI Dash Cams for their fleet. The pilot delivered strong results with an 83% reduction in safety events.

As we dug deeper into their operations, Connected Asset Maintenance became the biggest ROI driver in the deal. The company spends $80 million to $100 million per year on maintenance, but the data is fragmented across their ERP, OEM portals, spreadsheets and employees, maximizing maintenance ROI required bringing all their data onto 1 platform. To solve this, they expanded with AI Dash Cams. They also licensed powered asset gateways for the large machinery and asset tags for the smaller assets like fueling tanks, containers and excavator buckets. They added AI Multicams for their vehicles and connected forms to digitize their paper workflows. Together, these give them 1 view of every asset they own, so they can improve utilization and maintenance. As we build for the long term, we're investing in continuous innovation to meet our customers' changing needs, strengthen our platform and extend our AI leadership.

In addition to the new products at Beyond, we unveiled AI-powered features that make our customers' operations smarter and safer. This includes voice agents through the AI dashcam which closes the gap between a manager or agent detecting a risk and the driver hearing about it. Agents can proactively alert drivers to geofence-based risks, like speed limit changes and towing zones, and managers can reach drivers instantly when conditions change. New AI Multicam detections, including rear collision warning and vehicle and blind spot detection. These detections process camera feeds on the edge to alert workers to hazards in the moment before an incident happens. Shipment center and AI-powered command center for shipments. Customers can ask questions in plain language, like which deliveries are at risk from a storm and get instant answers with recommended actions across their entire shipment network. And Bird's Eye View, a configurable top-down 360-degree view of vehicle and its surroundings.

This gives drivers full situational awareness during high-risk maneuvers like reversing and tight turns in crowded yards and job sites. Each of these features addresses a priority customers have been raising. We're excited to see the impact they will have with their customers as they start to adopt these in their operations. At Beyond, we also launched the Samsara community, a global online hub that connects operators across the world of physical operations. More than 5,000 members have already joined. The Samsara community gives our tens of thousands of customers in North America and Europe direct access to each other's expertise. This deepens engagement with our platform as customers become advocates who tell their peers about what's working. It also speeds up time to value.

Customers pass along deployment and change management best practices to help others ramp faster and see ROI sooner. The community compounds our product feedback loop, giving us an always on channel of customer input at scale. We're excited about the impact we're making for our customers as we cross $2 billion in ARR. We are now operating at a massive scale, with more than 30 trillion data points, 340 million workloads digitized, and 105 billion miles driven over the last year. Our growing data asset is what powers our AI insights and drives the customer actions that deliver more ROI from our platform. I want to thank all the Samsarians, customers, partners and investors for joining us on this journey.

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

Dominic Phillips

Thank you, Sanjit. Q2 was highlighted by accelerating growth and improved operating leverage demonstrated by strong performance across several key metrics, including 28% year-over-year net new ARR growth in constant currency representing accelerated growth both sequentially and compared to Q2 last year as well as our second highest growth rate over the past 10 quarters, 30% total ARR growth, which was the same growth rate as the last 2 quarters at a larger scale. 242 $100,000-plus ARR customers added a quarterly record, resulting in 38% year-over-year ARR growth, the fourth consecutive quarter of sequential acceleration at a larger scale. 20 $1 million-plus ARR customers added, also a quarterly record, resulting in 50% plus year-over-year ARR growth for the third consecutive quarter. More than 20% of net new ACV coming from emerging products for the third consecutive quarter and achieving our fourth consecutive quarter of GAAP profitability.

More broadly, our performance reflects the large still nascent opportunity for digital transformation across physical operations. Looking ahead, we're well positioned to deliver long-term shareholder value for several key reasons. First, we have a unique defensible data advantage. By instrumenting physical assets with IoT hardware, we've created a large growing proprietary data asset that's hard to replicate. Second, we leverage this data using AI and agents to surface operational insights and automate workflows across our platform. Third, we benefit from secular growth in physical AI end markets such as construction, field services, energy and utilities are not only busy building out global infrastructure, they're increasingly using AI to manage greater scale and complexity.

Fourth, we have a differentiated value prop and mission-critical workflows. Our products deliver fast tangible ROI with quick payback periods. And lastly, we target the large less discretionary operations budget. Our largest customers invest approximately 80% of their revenue on their operations, and we help them optimize this significant cost base, creating a large opportunity to drive customer impact and sustain long-term growth.

Now turning to our results. Q2 net new ARR was $134 million, an increase of 28% year-over-year, accelerating both sequentially and compared to Q2 last year. This also represented our second highest constant currency growth rate over the past 10 quarters. More broadly, net new ARR over the last 12 months was $485 million, growing 27% year-over-year in constant currency accelerating from 14% in Q2 last year. Q2 ending ARR was $2.1 billion, an increase of 30% year-over-year, representing the same growth rate as the last 2 quarters at a larger scale. And Q2 revenue was $508 million, an increase of 30% year-over-year or 29% in constant currency, the same growth rate as last quarter at a larger scale.

Several factors drove our strong top line performance in Q2. First, large customer momentum is driving higher growth at scale. In terms of large deals, we signed 9 $1 million-plus net new ACV transactions in Q2, our third highest quarter ever. This reflects the success of our R&D and go-to-market investments to support these larger customer opportunities. In terms of large customers, we ended Q2 with 3,605 $100,000-plus ARR customers, including a quarterly record increase of 242. ARR from $100,000 plus customers was $1.3 billion, increasing 38% year-over-year, resulting in the fourth consecutive quarter of sequential acceleration. $100,000 plus customers represent 63% of total ARR, up from 59% 1 year ago. Additionally, we ended Q2 with 210 $1 million plus ARR customers, a quarterly record increase of 20. ARR from $1 million-plus customers surpassed $500 million increasing more than 50% year-over-year for the third consecutive quarter.

Second, our customers are increasingly using Samsara as a single unified operations platform across multiple applications. 96% of $100,000-plus ARR customers subscribed to 2 or more products, up from 95% in Q2 last year and 72% subscribed to 3 or more products, up from 68% last year. In Q2, 9 of the top 10 net new ACV deals included 2 or more products, 8 included 3 or more and 7 included 4 or more products. And this strong multiproduct adoption helped us achieve our target dollar-based net retention rate of approximately 115% for core customers.

And third, we demonstrated strong execution across several frontiers. For the third consecutive quarter, more than 20% of net new ACV came from emerging products. 8 of the top 10 net new ACV transactions included an emerging product and more than 60 Q2 transactions included more than $100,000 and emerging product net new ACV. In terms of end markets, field services was our largest vertical in Q2, contributing its highest net new ACV mix in over 2 years. Transportation contributed the second highest net new ACV mix in the quarter and year-over-year growth accelerated sequentially for the third consecutive quarter. And public sector contributed its second highest-ever net new ACV mix with year-over-year growth accelerating sequentially for the second consecutive quarter driven by deals with a top 5 U.S. city, which included more than $2 million from emerging products such as AI Multicam, Connected Asset Maintenance and Ground Intelligence.

MBTA, New England's largest transit provider and the state of Louisiana, all of which included 4 or more products. And in terms of international, 18% of net new ACV came from non-U.S. geographies, tied for a quarterly record. Europe contributed its second highest-ever net new ACV mix and had its fourth consecutive quarter of 50% plus net new ACV growth, driven by our largest ever Mainland Europe deal with one of the world's largest e-commerce companies. And Mexico, year-over-year net new ACV growth accelerated for the second consecutive quarter, resulting in its highest net new ACV mix in the last 5 quarters.

In addition to driving strong top line growth, we continue to deliver operating leverage across our business as we scale. Non-GAAP operating margin was 21% in Q2, up 6 percentage points year-over-year. Free cash flow margin was 13%, up 1 percentage point year-over-year, including the 16th consecutive quarter surpassing Rule of 40, and GAAP EPS was a positive $0.03, representing our fourth consecutive quarter of GAAP profitability.

Now turning to Q3 and FY '27 guidance based on FX rates as of August 2. Our guidance philosophy remains the same and is derisked for potential downside scenarios. For Q3, we expect revenue to be between $514 million and $516 million, representing 24% year-over-year growth or 23% to 24% growth in constant currency, non-GAAP operating margin to be 21%, non-GAAP EPS to be between $0.18 and $0.19 and we expect to be GAAP profitable for Q3. For full year FY '27, we expect revenue to be between $2.043 billion and $2.047 billion, representing 26% year-over-year growth, non-GAAP operating margin to be 21%, non-GAAP EPS to be between $0.76 and $0.78 and we also expect to be GAAP profitable for full year FY '27.

And please see the modeling notes in our shareholder letter, including 1 additional note on free cash flow. We now expect free cash flow margin to be approximately 100 basis points lower than FY '26, primarily due to more IoT devices required to support our stronger growth outlook, proactively purchasing more inventory to create a buffer given the strong customer demand we're seeing and elevated supply chain cost in the second half of the year. We believe operating margin is the best indicator of improved profitability and is the best forward indicator of where free cash flow margin will be in a more normal supply chain environment as we've seen in the past.

So to wrap up, in Q2, we delivered accelerating growth at scale while expanding operating leverage. Looking ahead, we believe we're well positioned to sustain durable and efficient growth because we're instrumenting physical assets with IoT hardware to generate a unique defensible data asset. We then apply AI and agents to that data to surface operational insights and automate workflows driving more customer value. We're at the center of the AI transition from the digital to the physical world and tied to end markets benefiting from major infrastructure initiatives and we deliver fast tangible customer ROI with quick payback periods. We look forward to building on this momentum as we help our customers operate more safely, efficiently and sustainably at a greater scale.

And with that, I'll hand it over to Marty to moderate Q&A.

Unknown Executive

[Operator Instructions] The first question today comes from Dylan Becker at William Blair, followed by Michael Turrin with Wells Fargo.

질의응답

Dylan Becker

Maybe one for Sanjit and one for Dom. Sanjit, starting with you, it's incredibly impressive how you guys have been able to maintain the level of success. And obviously, the pace of innovation is abundantly clear. Beyond earlier in the year. But if you were to kind of distill it down as to what's enabling you to sustain and not only sustain, really accelerate the momentum from a revenue, net new ARR perspective across the portfolio at an increasingly greater scale, what would maybe kind of be some of those 4 pillars in your mind?

Sanjit Biswas

Well, Dylan, thanks for noticing. We're really proud of the innovation and what we launched at Beyond. If I step back and think about why we're seeing this acceleration and growth, I would really point to our customers in the market. We're seeing, especially these large enterprises who have very vast, large complex physical operations look to digitally transform. They want information about all their assets. They want to make their teams safer and more efficient and they want to do it at scale. And they do have a lot of complexity in our platform is designed for that. So I think it's really strong product market fit. As we continue to innovate, bring new technologies to market, new ideas like connected asset maintenance and AI agents and 360 cameras and so on. It all fits within that broader digital transformation story. We're seeing with these large enterprises.

Dylan Becker

That's great. And maybe kind of as a parallel to that, Dom. I appreciate the color, on the near-term kind of free cash flow implications and some of the supply chain dynamics there, too. But if we kind of think about it as the accelerating momentum requiring maybe a little bit more installation and data capture from some of your components as well, too. How do you guys think about those near-term free cash flow implications attributable to the accelerating growth that you're seeing as well?

Dominic Phillips

Yes, sure. So I think the dynamics around free cash are really driven by 3 factors. First is, we're just growing faster than we expected. Growth is accelerating, and that requires more of these IoT devices to support that growth. And because -- and we pay for these devices upfront, but the revenue that we get from them lags, it gets recognized ratably over the customer contract. The second is that we're planning to prebuy more inventory when possible because we're seeing such strong customer demand. We also view that as a competitive advantage. And then lastly, supply chain costs obviously continue to increase. I think if we take a step back, we feel really comfortable with all of this because we're really well capitalized. The long-term unit economics of these investments are still really good even at temporarily elevated prices.

As Sanjit mentioned in the prepared remarks, increasingly, we're able to monetize the data collected from these devices many times over. So a vehicle gateway cannot be monetized with telematics, with connected asset maintenance, with routing. These AI Dash Cameras cannot only be monetized with the video-based safety SKU, but now with these operational intelligence SKUs as well. And then obviously, we expect this to be temporary. We saw a similar supply chain dynamic. Post-COVID, where free cash flow started to lag behind operating margins for a period of time before ultimately reconverging and we expect that, that's going to happen again here.

Unknown Executive

The next question comes from Michael Turrin at Wells Fargo, followed by Alex Zukin with Wolfe Research.

Michael Turrin

Really impressive job with the Q2 results. So I guess I just want to start with, we were out at Beyond. Feedback was strong, but just if you could kind of help us parse where the product interest, if there were certain verticals or announcements that you'd highlight that were more top of mind. And just how much, if any, of that played into just the strength you saw in terms of net new ARR in the quarter.

Sanjit Biswas

So Michael, I would say the new products are performing really well. In aggregate, they were north of 20% of the new bookings in the quarter. And so we are seeing these customers adopt for more products in many cases. So that's been great. In terms of the product mix itself and which ones are standing out, no single one of those new products contributed more than 50% of those bookings. So it's pretty spread evenly across. Different industries have different areas of interest. In my prepared remarks, I talked about how waste management vehicles, fire trucks and other large vehicles benefit tremendously from the AI Multicam, we have other customers that are much more focused on tracking their shipments. So the Tracking Label is a good fit for them. So it really starts to vary industry by industry and even customer by customer. But in aggregate, it really was kind of strong showing across these new products.

Michael Turrin

And then just as a small follow-up, if I may, Dom. Does any of what you saw in Q2 impact, how you're thinking about seasonality or what we'd expect relative to prior seasonal trends for the rest of the year?

Dominic Phillips

No. Yes, nothing stood out seasonality wise in Q2. I would say that Q2 revenue outperformance was driven by really strong bookings and slightly better linearity than what we've seen in previous quarters as I think about the guidance that we provided for the rest of the year. We're expecting more kind of normalized bookings linearity in those quarters in the way that, that results in revenue.

Unknown Executive

The next question comes from Alex Zukin at Wolfe followed by Matt Hedberg at RBC.

Aleksandr Zukin

I guess maybe just a little bit of color on the AI Multicam product, Sanjit. It sounds like based on our conversations, both at your conference and in the channel that the product is kind of flying off the shelves right now. So is that -- are you kind of starting to see almost like a refresh cycle take place that creates another upsell opportunity? Does that also lead into the kind of cash flow implications of buying a more -- buying more supply than you previously needed. Anything to kind of read out from there?

Sanjit Biswas

Yes. I think if -- first of all, AI Multicam is doing very well. I think this is really the first time that customers at scale can get that kind of 360-degree view around their vehicles and understand risk like behind them and on the sides. We're also using it to create some of this new functionality like our road intelligence SKU where we can see road conditions and so on. So I don't think of it so much as a refresh cycle. It's really additive where people are saying, "Hey, there's even more we can do that goes beyond just the cab and the driver." There's a ton of operational intelligence that we can gather using these cameras as sensors. And so that's a new opportunity we're seeing, but it's additive. It doesn't seem to replace or kind of refresh any of the older products.

Aleksandr Zukin

Excellent. And then, Dom, for you, from the free cash flow impact perspective, again, marginally, is it much more about the demand upswing that you're seeing or the supply chain dynamics? And specifically also, if you can talk about any emerging gross margin implications, maybe not necessarily this quarter, but down the line that you can see developing.

Dominic Phillips

Yes. I mean, I think it's like definitely impacted by the fact that we're just growing faster than we expected, accelerating growth. And so as you book those deals, you need more inventory, more hardware and devices to support those deals. And because we're seeing such strong customer demand and because the supply chain environment is very dynamic, we're going to try to pre-buy inventory and just build up a buffer to make sure that we can meet all of the customer demand. And then in addition to all of that, the supply chain is more dynamic and there are underlying components that go into these devices where the cost and the shipping costs associated with that are all increasing.

So all of that is kind of weighing again. I think on the gross margin side, fortunately, the gross margin impact will happen over time because that cost gets amortized into COGS. So you don't see it upfront in the same way that you do with free cash flow, which ultimately gives us some time to try to find offsets. So can we drive higher revenue per device as we talked about a few times on this call monetizing data collected off of one device several times with multiple SKUs. Can we move more of the mix shift to the higher-margin products? Can we continue to find cost optimizations to offset this in terms of like cloud and sell, and so I'd say we have a lot of levers that we can ultimately pull over time with gross margins, and we feel good about being able to manage that over time.

Unknown Executive

The next question comes from Matt Hedberg at RBC followed by Lucas at Morgan Stanley.

Matthew Hedberg

Great. I'll offer my congrats as well. Yes, the new product innovation has certainly been standing out to us coming out of Beyond. And something I think you said on the call was interesting. I think you said you've seen a 4x growth in AI feature adoption in just 2 months. And that's a pretty amazing statistic. I guess can you give us a sense for maybe which features are driving that? And I know it's still early, but how should we think about that translating that usage into incremental ACV?

Sanjit Biswas

Sure. So it's been really fun to spend time with our customers and understand how are they putting AI to work in terms of task automation in their operations. A couple of the interesting use cases for AI agents are related to things like safety. We can make voice calls now to drivers at scale if there's certain weather conditions emerging or maybe they're drowsy on the road, things that our customers couldn't do, maybe they didn't have headcount or time or availability. Similarly, these agents can help with things like warranty claims. There's a lot of maintenance dollars that are sort of left untouched because no one had time to get to some of the paperwork.

So we're seeing a variety of use cases. It's still early, but already over 1,000 customers have really engaged on this. And what's fun is to be able to build together with them. So I think we've put the building blocks in place, the kind of platform features. And now we're going to really co-innovate with them to find more use cases for them to automate some of this task work.

Matthew Hedberg

That's great. And then, Dom, public sector really it seemed like it was a balance quarter, but it seems like pubic sector was particularly strong. I think it was maybe your second highest net new ACV mix maybe ever. I guess -- I mean we can all probably see what's driving that just as the U.S. government and broader public sectors tries to become more digitally native. But how are you kind of thinking about that deal cycle progressing as we get into Q3? Obviously, it's the federal year-end. Any sort of thought on how you kind of think about that dynamic for 3Q?

Dominic Phillips

Yes. We don't have the same dynamic that other software companies have with the federal government having a 3Q year-end. Most of our public sector or state and local municipalities. And so it's a little bit more consistent throughout the year. But obviously, we've been making a number of investments. We think this is a really -- public sector is a big opportunity for us, and it's been driving a lot of our growth. We've made a number of go-to-market investments with a vertical-specific team there. And then a lot on the R&D side as well. So things like ground intelligence, the operational AI SKU that comes off of the cameras, the large top 5 U.S. city that we called out in the quarter, and the first quarter selling it landed with that as part of their deal. So the R&D investments are also helping us drive a lot of success there.

Unknown Executive

Next question comes from Lucas at Morgan Stanley followed by Matt Martino at Goldman Sachs.

Unknown Analyst

This is Lucas [indiscernible] for Adam Wood. Congrats on a great quarter. You guys have seen a lot of strength internationally. Could you just double click on what's driving that recent strength? And then as you build share in what's a pretty fragmented market, is there a point where you expect growth to continue and flect higher as the brand and installed base reach greater scale?

Sanjit Biswas

Yes, I'm happy to take that one. We have been really proud of the performance of our international teams. I think in Europe, we're seeing really strong product market fit. They have some different sort of compliance requirements around Tachographs. So we've done a good job kind of building for that. They often have like low bridge strikes to be practical issues. So I think that is an example of how continued investment has resulted in a pretty high net new ACV mix coming from those regions.

Same thing down in Mexico. We've invested heavily in security. That's a very key use case for them, panic buttons, immobilizers and so on. So I think a lot of this does come down to having really strong product market fit. And then increasing brand awareness with some large reference customers. So in Europe, we work with Petit Forestier, Fraikin, these are some of the largest fleets in Europe. In Mexico, we work with Grupo Trayecto. They're one of the largest transportation companies, so I do think that our brand reputation is spreading as we become a partner to these large complex operations.

Unknown Analyst

Really helpful. And then one more, if I may. Could you just touch on how the volatility in energy prices are changing discussions you're having with larger customers? And is that an uncertainty driving more attach with the new offerings? Or is it mainly within the core?

Sanjit Biswas

I think volatility in fuel prices this year, fuel prices were up almost 40% year-over-year in certain months. And I think has increased awareness of the value of data. So now we're seeing customers not just track their vehicles, but really understand fuel spend, match up fuel card transactions, which we're able to do on our platform, understand if there are any kind of security issues related with that. So they're able to really go deep with this fuel data and find savings. Many of our customers, they spend hundreds of millions of dollars on fuel. So even a few percent here and there with things like idling reduction or feeling up at preferred partners being done in a data-driven way is a big ROI unlock.

Unknown Executive

Next question comes from Matt Martino at Goldman Sachs, followed by Kirk Materne at Evercore.

Matthew Martino

Sanjit, maybe for you, just waste Intelligence and ground intelligence, they stand out to me because they monetize data generated by infrastructure that's already deployed. You've touched on that a few times. I guess, what have you learned from the initial 7-figure opportunities? And how reusable is that product model across other industries?

Sanjit Biswas

We've been learning a lot and the reception has been strong. So Dominic mentioned, we landed a large city deal that is benefiting from the ground intelligence. We've seen similar traction with waste intelligence. First of all, there's repeatability in those industry verticals. So every city is able to benefit from better visibility of these pot holes. They often send road crews out to go and spec manually and only get to a fraction and have to spend a lot of time doing manual work. That's just kind of same pattern with waste intelligence, where it would be things like service verification or maybe even missed revenue where you're not getting paid for picking up overfill dumpsters, things like that.

As we go deeper with our customers across industries, we're starting to see more of these patterns. I think these 2 stood out as initial applications, but I don't have new product announcements for you here, but we are seeing kind of similar groupings in other industries, but we need to spend more time in the field, figuring out, well, how can we take all this visual intelligence data, take all the sensor data and match it together in useful ways for our customers.

Matthew Martino

Okay. That's great. And then, Dom, for you, just emerging product transaction volume, you had 60 in the quarter or the $100,000 of new ACV. That's up from 42 last quarter. How much of that step-up reflects the product specialist motion? And where are you seeing the biggest impact across conversion, sales cycles, deal sizes?

Dominic Phillips

Yes. That has definitely helped. We started with the product sales specialist at the beginning of the year. And if you look at kind of our growth over the last several quarters, which has been quite strong, a lot of that is being driven by the emerging product mix, 3 consecutive quarters now at 20% plus. And it's -- I think what we're excited about is that it's really widespread. As Sanjit mentioned earlier, we're not seeing one of those products contribute more than 50% in any given quarter. We're seeing strength across different industries with different use cases. And we've really increased our innovation, I would say, over the last 2 to 3 years, and we plan to continue to do more and continue to add more products into that emerging product bucket.

Unknown Executive

Next question comes from Kirk Materne at Evercore, followed by Matt Bullock at Bank of America.

S. Kirk Materne

I'll echo Mike, congrats on a nice quarter. Sanjit, just following up on the last question, just around the idea of the data that's being already captured by existing hardware that's out in the field. When it comes to products like waste intelligence, ground and some of your new ones, ground intelligence, does this help speed up the sales cycle, meaning you've talked before about your clients are going to have to walk before they run around AI. But these are very pragmatic solutions, they are obviously leveraging AI, but they're not as daunting as say, building an AI solution from scratch or something like that.

So I was just kind of curious the ability to have the sales cycle and the discussion from concept to delivery, would seem to be pretty straightforward. And I was just kind of curious how you compare that maybe to where you were with other products like invert facing cameras and things like that a few years ago, there would be a little bit of a flywheel effect there.

Sanjit Biswas

Yes. So Kirk, I think overall, sales cycles feel about the same as they have in the past. And when I think about why that is, a lot of these companies are really digitally transforming for the first time. So they still need to install telematics. They need to put those dash cameras in. The majority of vehicles on the road still don't have a dash cam, for example. So while they may be excited to do more, they're often having to start with that kind of Phase 1, like let's get the initial hardware in. But the attach of these additional products, which may be products 3 or 4 in a lot of deals, we're seeing these multiproduct deals happen, that helps increase the amount of ROI and decrease the time to value they see after the deployment.

So I would say the sales cycles are about the same, but the amount of value that customers are getting as they license more products is going up. And then it's also exciting products like connected asset maintenance. We talked a lot about the visual intelligence projects -- products earlier. We are starting to see great value come from that as well. But you're going to want the telematics in your trucks and your other assets as well, just to get really good clean data in.

S. Kirk Materne

And Dom, you mentioned just on the pricing side around the devices themselves. You mentioned you view it as temporary. Is there any sort of reason you have visibility into why you think it's temporary? Or is that just sort of the way it's always trended historically is think it will trend kind of back to where you were?

Dominic Phillips

Yes. I mean, like these supply chain disruptions and changes are very dynamic, but there's several examples of them in history. Actually, we went through this coming out of COVID as well, where supply couldn't catch up with the demand coming out of COVID, and we saw prices temporarily elevated and ultimately kind of get normalized as more supply came online. And similar to many of these previous cycles, we expect that, that pattern happens again.

Unknown Executive

Next question comes from Matt Bullock at Bank of America followed by Nick Altmann at BTIG.

Matthew Bullock

Maybe a quick one for Dom here. Obviously, a really strong quarter of $100,000-plus and $1 million-plus net additions. I was hoping you could just unpack maybe the underlying drivers there? Are you landing much larger? Are you seeing customers graduate into those cohorts as they expand faster? Anything would be helpful.

Dominic Phillips

I think that it's been more -- maybe a little bit more on the expansion side. And so we're still landing customers at kind of similar sizes. It was actually our second highest number of new core customers that we've ever added. So we're adding a lot of new logos, but a lot of strength being driven out of expansions with our current customers. And I would say, one, big reason is the emerging products. So customers coming back and maybe Sanjit mentioned, the top 5 cities started in just 1 department with just the video-based safety and the telematics products but came back and went across multiple departments and then also added a bunch of new products like AI Multicam, Connected Asset Maintenance and the Ground Intelligence. So the emerging products are definitely allowing us to expand bigger with our customers.

Matthew Bullock

That's great. And maybe a quick one for Sanjit as well. So you've passed the $2 billion ARR mark, you've got net new ACV contribution of 20% plus for 3 quarters in a row from emerging products. Maybe could you just help us think about the path to $4 billion through the lens of expected product contribution, core vehicle, some of the emerging products and then some of the products on the road map, how should we think about contribution there?

Sanjit Biswas

Sure. So Matt, I still think there's a tremendous amount of market opportunity even with these core products. I mentioned this a little bit earlier during the Q&A, but if you go and just look on the road at these commercial vehicles, the vast majority of them don't have a dash camera in their windshield. And so that just tells you a lot about the kind of state of affairs in terms of getting these devices out in the field.

And then to the point around new product attach, we think that this is an end. As these customers digitize the taking a look at how they maintain all their assets and their vehicles and equipment. They're taking a look at how they do training, how they manage qualifications of the frontline employees. So that's the opportunity is while we come in with this kind of core feature set that we're pretty well known for. Many customers say, well, we're doing this big project, let's digitally transform and take our operations kind of into this new era. And that's exciting for us because it means that we have room to run here, both in terms of the core TAM, but also our ability to stack on top.

Unknown Executive

Next question comes from Nick Altmann at BTIG, followed by Derrick Wood with TD Cowen.

Nicholas Altmann

I wanted to follow up on Matt's question regarding the public sector strengths. Dom, I think you alluded to some of the designated go-to-market efforts there helping influence some of the strength. But you also launched a public sector AI suite back in May, and some of these deals you're highlighting include ground intelligence and AI Multicam. So my question is just how much of the public sector strength is kind of being unlocked by some of the new innovation that you've done over there in the last several months here?

Dominic Phillips

I think I would just like dovetail into the response that Sanjit just gave more broadly, I think, also applies to public sector. I think a lot of those deals started out, at least with interest in kind of the core products. But over the last couple of years, we've added more of these emerging products into the portfolio. It allows us to go into these accounts even for the first time with having a much more strategic lens on how they could digitally transform their city state departments. And I think that product innovation in conjunction with the focus that we have on the go-to-market side has really allowed this to be a strong driver of our growth.

Nicholas Altmann

Great. And then as a follow-up, field services, largest vertical in the quarter, you mentioned it was the highest mix in net new ACV. And I think over 2 years, which is really interesting. How much of the strength there is driven by net new logos versus some of your existing field service accounts adding products like connected asset maintenance or even some of the dispatching features within the agent Studio?

Dominic Phillips

Yes. Similar to my previous answer, I think across the company throughout the quarter, but specifically even within Field Services, we did see great strength in new logos just in terms of the number of logos that we added, but in terms of the overall contribution to net new ARR, net new ACV within that given vertical, it was driven by a little bit more by the expansions to the existing customers.

Unknown Executive

Next question comes from Derrick Wood at TD Cowen followed by Mark Schappel at Loop.

Unknown Analyst

This is Jared on for Derrick. Understanding that upmarket has been the focus for some time with this quarter being notably strong. I was hoping to get some color on what you've been seeing down market? Just maybe comment on what you've been seeing around churn, pricing, new logo activity or anything you think is relevant to address?

Dominic Phillips

Yes. I mean maybe I'll give a quantitative answer. So we've talked about the -- if you look at the ARR mix from $100,000-plus customers going up to 63%. It's gone up, I think, I said like 4 percentage points over the last year, which means that, that segment that cohort is growing a little bit faster than the sub $100,000. But the sub $100,000 is also growing very quickly and it's still contributing greatly to the overall ARR mix.

Sanjit Biswas

Yes. And just from meeting with customers, I think these large customers, they have the largest, most complex physical operations, so they tend to have thousands and thousands of assets, often tens of thousands of frontline workers. So that's where we have more opportunity to expand with these new products. The smaller customers are still very healthy. And like Dominic said, we're continuing to grow with them. Their operations just tend to be a bit smaller.

Unknown Analyst

I appreciate all that color. Last one for me. Could you just give an update on what you've been seeing from your data center exposed customer base? Any directional call outs this quarter versus the last?

Sanjit Biswas

Sure. I would say our data center customers, the folks helping with the build-out, they're busier than ever. They continue to be working on projects. And for them, safety and efficiency are very front of mind as they continue to scale their ops.

Unknown Executive

Our next question comes from Mark Schappel Loop Capital followed by Jason Celino at KeyBanc Mark on.

Mark Schappel

Dominic, could you just talk about whether you're seeing customers shift more of their spend to their primary CSP through marketplace programs and if so, how is that affecting your deal structure pricing or your go-to-market approach?

Dominic Phillips

No. It's still -- it's standard. They're buying mostly direct through us. We haven't seen any real changes on that side in our sales cycles.

Mark Schappel

Okay. Great. And then just one other question. Beyond, it was highlighted that the Samsara network was an important opportunity. As your network gets denser, are you seeing any evidence of like a network effect and certain customer behavior. So for example, like higher attach rates, use case -- new use cases or maybe even like greater asset tag win rates as a result of a denser network?

Sanjit Biswas

Yes, I'll take that one. The network is continuing to get denser. We're also adding the ability to route the data through mobile devices and so on, which gives us visibility in yards and in warehouses and manufacturing facilities. I do think that's unlocking even more use cases for the asset tag. We talked about it on stage, but these asset tags have been attached to all kinds of really interesting assets, that were well outside the realm of the truck and telematics. So we're excited about that. And again, as the network gets denser, we're able to kind of get more visibility.

And then it's also enabling new use cases like the Tracking Label, which we also announced at Beyond. That's -- it's basically like a really miniaturized asset tag that only lasts about 45 days, but you can now stick it on one-way shipments, so you need a significant amount of network density for that to work. Otherwise, you can't pick up parcels and other building materials, things like that as they're cruising down the highway at 60 miles an hour. So I do think these are all kind of byproducts of the density we've achieved.

Unknown Executive

The next question comes from Jason Celino at KeyBanc, followed by Alexei Gogolev at JPMorgan.

Jason Celino

Really phenomenal quarter. The net new ACV from Emerging Products, third quarter in a row of 20% plus. With some of your newer products at Beyond and with that cross-sell go-to-market team, you set up at the beginning of the year for the emerging products, has this been upticking on a percentage basis over the last quarter? Like would there be anything mathematically that would prevent us from seeing like a 3 handle on this metric?

Dominic Phillips

It's been pretty consistent, above 20% for the last 3 quarters. I think that it's definitely growing very quickly that bucket of products. But I think it's also dependent on just how we're doing with our overall core products, which have also been very strong, as Sanjit mentioned, there's still so much opportunity in front of us just 50% of commercial vehicles in North America are still not connected and 85% of commercial vehicles don't have an AI dash camera. So that is still a really large portion of our ARR and growth. And that also has an impact on the overall mix. So we feel like we're going to need a lot of strength out of both core and emerging products to continue to sustain our high growth.

Jason Celino

Okay. I see. And then when we think about the emerging product gross margin implications, as this becomes a bigger part of your business, I realize it's a lot of different products, but anything to help on like how that might skew the unit economics on your overall business?

Dominic Phillips

Yes. I think it definitely can. There's a wide variety of kind of products from like AI Multicam, all the way to like software-only SKUs. So the gross margin dynamics within the emerging products is very different. I think the way that we think about it is that most of these deals that we're talking about are multiproduct, they're bundled. So it really makes more sense to look at it kind of that way versus stand-alone. So what we're looking at is like can we increase the revenue per device. Can we increase the revenue per asset, whether that's a vehicle or field asset. Can we increase the overall ARR per large customer, all of those things continue to happen? And can we do so while maintaining our target net retention rate of 115%. All of those things are working for us.

Unknown Executive

Our last question today comes from Alexei Gogolev JPMorgan.

Isabella Camaj

This is Isabella Camaj on for Alexei. And thanks for the examples on agents within safety and warranty workflows, a lot of excitement there. Where would you say agents are moving into production fastest today, maybe comparing safety versus maintenance versus dispatch? And within your customer conversations today, what are really the largest priorities customers have as they consider scaling beyond pilots?

Sanjit Biswas

Well, I would say on the asset -- sorry, on the agent side, the few that you just mentioned are some of the most common use cases and they're not exclusive. A lot of these companies are saying, hey, if we're going to put voice agent to work, let's have them notify the driver as they're pulling up to a gate and give them some directions. And then they're familiar with it, so they can do a safety briefing in the morning. So these tend to actually be multiple sort of agents adopted in the same organization. I do have to say it's early though. For our customers, this is, in many cases, the first time they're deploying AI agents into production. So we're working with them to help them understand how to think about it, how to configure how did change management for drivers who may be interacting with AIs for the first time. But overall, the feedback has been positive. We're excited about these early signs.

Unknown Executive

This concludes the question-and-answer portion. Thank you all for attending our Q2 fiscal year 2027 earnings call. Before I let you go, I have a few short announcements. We will be attending the Goldman Sachs Communacopia Conference in San Francisco on September 8, the Wolfe Technology Conference in San Francisco on September 10, the Piper Standard Growth Frontiers Conference in Nashville on September 15, The NYSE Investor Access Technology Day on September 23, the Morgan Stanley Silicon Valley Bus Tour also on September 23, and the William Blair Tech Innovators Conference on October 9. We hope to see you at one of these events. That's it for today's meetings. If you have any follow-up questions, you can just e-mail us at ir@samsara.com. Bye everyone.