Prepared remarks
Good afternoon and welcome to Samsara's Second Quarter Fiscal 2025 Earnings Call. I'm Mike Chang, Samsara's Vice President of Corporate Development and Investor Relations. 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 5, 2024, 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 2025 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. Reconciliations of GAAP to non-GAAP financial measures are provided in our press release and investor presentation. We'll make opening remarks, dive into highlights for the quarter, and then open the call up for Q&A. And with that, I'll hand over the call to Sanjit.
Thank you, Mike, and thank you, everyone, for joining us today. Samsara delivered another strong quarter of durable and efficient growth at greater scale. We ended Q2 with $1.26 billion in ARR, growing 36% year-over-year. We also achieved a quarterly record for non-GAAP operating margin. We are the strategic partner to the world's leading and most complex physical operations organizations. Large customer momentum continues to fuel our growth. We added 169 customers with more than $100,000 in ARR and set a quarterly record by adding 14 customers with more than $1 million in ARR. In Q2, we had wins with the State of Maine, one of the largest supermarket chains in the US, and a major retail-owned hardware cooperative globally. As we grow our customer base, our data asset scales as well. We are proud to announce we have achieved a significant company milestone by collecting over 10 trillion data points annually on the Samsara platform.
Our unique IoT data set is broad and diverse, unlocking insights that help our customers address their toughest challenges. In June, we hosted Samsara Beyond to explore the impact of data and AI on Connected Operations, gathering nearly 2,000 attendees from the world of physical operations. At the event, we learned about our customers' challenges and their plans to tackle them with data and AI, focusing on priorities like creating a system of record, data standardization, and increased AI usage for insights. These conversations guide our R&D efforts to maximize customer impact. During Beyond, we also held our Connected Operations Award ceremony, recognizing 15 global customers with a significant impact on our platform, along with our Ecosystem Partner of the Year. Among our winners, Home Depot was our Safest Operator awardee in the Americas. They achieved an 80% reduction in auto incidents by using Samsara's video-based safety application.
Turning to Sterling Crane, our Excellence in Efficiency winner, they saved $1.2 million through improved driver productivity and compliance, and expect to save an additional $2.5 million in major maintenance costs. We proudly partner with our customers to produce meaningful impacts on their operations. To meet our customers' needs, we are accelerating our flywheel of innovation, powered by our growing dataset and AI insights. This innovation enables customers to enhance safety, efficiency, and sustainability in their operations. At Beyond, we introduced our Asset Tag, the industry's first industrial-grade Bluetooth tag for managing small high-value assets. We anticipate this will help customers save millions annually by improving asset utilization and reducing time lost to locate missing items. In Q2, our first sales quarter for Asset Tags, we reached around $1 million in net new ACV, with strong customer feedback and increasing demand across various industries.
TransCore is a prime example, purchasing numerous Asset Tags for inventory management and loss prevention. This technology is feasible due to our extensive Samsara network, which connects millions of devices worldwide and offers near real-time visibility. We also introduced Connected Workflows and Connected Training to enhance the worker experience. Connected Workflows streamlines processes by automating task assignments and approvals, while Connected Training provides remote access to training, allowing customers to build tailored learning experiences for their teams. This is exemplified by DeSilva Gates, which automated truck inspections, saving over $2 million annually. Emery Sapp & Sons also saw a 40% reduction in safety events with Connected Training. After launching new products, we continue to gather customer feedback for improvement. At Beyond, we announced new features and partnerships aimed at enhancing customer safety and sustainability, including AI detections and Charge Insights for EV management.
We also partnered with FirstNet to ensure our technologies can aid public safety customers in emergency situations. We were pleased with Beyond's success and are planning to host our next event next summer in San Diego, bringing together more stakeholders in physical operations. Digitizing these operations is a long-term process, and we are committed to nurturing our leadership and culture. We are excited to welcome Alyssa Henry to our Board of Directors, bringing over 25 years of tech leadership experience, and Meagen Eisenberg as our Chief Marketing Officer, who has a strong background in customer engagement and brand building. We are delighted to have both join our team. Samsara remains a sought-after destination for top talent, a crucial factor as we scale to meet demand. This quarter, we were recognized by Great Place to Work for our focus on development, well-being, and women. We take pride in the impact we are making for our customers, operating at scale with over 10 trillion data points, 85 billion API calls, and 70 billion miles driven across our platform each year.
Our growing data asset facilitates powerful AI-driven insights, allowing our customers to achieve quick and clear ROI. The impact we create continues to accumulate year after year, and we are enthusiastic about the future opportunities ahead. Thank you to our customers, partners, investors, and Samsarians worldwide for being part of this journey. I will now turn the call over to Dominic to cover the financial highlights for the quarter.
Thank you, Sanjit. Q2 was another quarter of sustained high growth at scale and continued operating leverage. In particular, the quarter was highlighted by maintaining the same year-over-year revenue growth rate for the third consecutive quarter at a larger scale, surpassing 2,000 large customers, including adding a quarterly record number of $1 million-plus ARR customers, adding approximately $1 million of Asset Tags net new ACV in our first quarter of selling, and achieving a quarterly record operating margin while sustaining a quarterly record gross margin. Q2 ending ARR was $1.264 billion, growing 36% year-over-year. Within this, we added $88 million of net new ARR, representing 20% year-over-year growth. Q2 revenue was $300 million, growing 37% year-over-year, which is the same year-over-year growth rate for the third consecutive quarter at a larger scale. Several factors drove our strong top line performance in Q2.
First, we continue to focus on serving large enterprise customers to drive durable and efficient growth at scale. We now have 2,133 customers with over $100,000 in ARR, representing 41% year-over-year growth, including a quarterly increase of 169, which is our second highest quarter ever. Within that, we also added a quarterly record 14 $1 million-plus ARR customers. In addition to adding more large customers, we also grew our average ARR per large customer to $318,000, up from $306,000 one year ago. The combination of more large customers added and a higher average ARR per large customer increased our ARR mix for $100,000-plus ARR customers to 54% in Q2, up from 50% one year ago and 46% two years ago. Second, our customers increasingly utilize Samsara as a system of record for physical operations by subscribing to multiple applications, all on one unified platform. 94% of our $100,000-plus ARR customers subscribed to multiple products and 59% subscribed to three or more.
We're also seeing multiproduct adoption at scale. Our two vehicle-based applications, Video-Based Safety and Vehicle Telematics, each represent more than $500 million of ARR, while Equipment Monitoring and other emerging products combined for more than $150 million of ARR. In addition to large scale, each of these three product categories continued to grow more than 30% year-over-year. We also saw a number of large multiproduct transactions in Q2. Nine of the top 10 new logos in Q2 included two or more products and six included three or more. Notably, one of our largest Q2 new logos, Cassens Transport Company, one of the largest auto haulers in the US, landed with four different products. In addition to licensing our two vehicle-based applications, Cassens also purchased Equipment Monitoring and one of our newer software-only SKUs, Connected Training, in their initial transaction. Additionally, all of our top 10 expansions included two or more products and five included three or more.
This expansion strength allowed us to achieve our target dollar-based net retention rate of 115% and 120% for core and large customers, respectively. And third, we demonstrated strong execution across several frontier markets. 16% of net new ACV came from international geographies in Q2, driven by strength in Europe, which had its fourth consecutive quarter of accelerating year-over-year ARR growth at a larger scale. Construction drove the highest net new ACV mix of all industries for the fourth consecutive quarter and field services had the second highest mix for the second consecutive quarter. In total, 87% of Q2 net new ACV came from non-transportation verticals, an increase from 83% in Q2 last year. Lastly, we also saw strength in emerging products. We achieved roughly $1 million of Asset Tags net new ACV in our first quarter of selling, including a more than $300,000 expansion with a top 100 customer in the construction industry.
We also added roughly $1 million of Connected Workflows net new ACV in Q2, including four separate $100,000-plus ARR transactions. Furthermore, we signed an approximately $250,000 Connected Training expansion in our first quarter of selling the product with a top 30 customer in the logistics industry. In addition to driving strong top line growth, we continue to deliver operating leverage across our business as we scale. Non-GAAP gross margin was 77% in Q2, which was tied for a quarterly record; non-GAAP operating margin was a quarterly record 6%, or nine percentage points higher year-over-year; and adjusted free cash flow margin was 4% in what is our seasonally weakest free cash flow quarter. Turning to guidance, we're raising our guidance across all key metrics because of our Q2 performance and outlook for the rest of FY'25. For Q3, we expect total revenue to be between $309 million and $311 million, representing year-over-year growth between 30% and 31%.
Non-GAAP operating margin is expected to be approximately 4%, and non-GAAP EPS to be between $0.03 and $0.04. For full year FY'25, we expect revenue to be between $1.224 billion and $1.228 billion, representing year-over-year adjusted revenue growth between 33% and 34%, non-GAAP operating margin is expected to be approximately 5%, and non-GAAP EPS to be between $0.16 and $0.18. Finally, please see additional modeling notes in our shareholder letter. To wrap up, we are pleased with our first half performance and our improved outlook for FY'25. In Q2, we sustained our revenue growth rate at a larger scale while also delivering more operating leverage. Looking forward, we believe we're well positioned to continue delivering durable and efficient growth because we're digitizing the world of physical operations, which is a very large and underserved market opportunity, driving strong customer demand.
Our products offer real ROI and a fast payback period to our customers and we're targeting a very different operations budget. We're proud to partner with our customers and are excited to continue helping them operate more safely, efficiently, and sustainably. I'll hand it over to Mike to moderate Q&A.
Thanks, Dominic. We will now open the line for questions. When it's your turn, please limit your questions to one main question and one follow-up question. The first question today comes from Kash Rangan with Goldman Sachs, followed by Alek Zukin with Wolfe Research.
Questions and answers
Thank you guys. What a phenomenal quarter. It looks like the tone of new business seems to have picked up, if I can tell from the net new ACV growth rate you've experienced in the quarter and also the $1 million ACV contracts you landed at the quarter. Can you talk about any potential changes to the buying environment you've noticed in the past month or so? And also Sanjit, curious to get your take on the impact of the tremendous new product innovation that you've laid forth here. How could that translate into better pricing power for the company and also better retention rates as your products like the Workflow, which we had a lot of fun talking about at our conferences? How do you envision the stickiness, renewal and pricing for the company? Thank you so much.
Sure. Kash, this is Sanjit. So first of all, I think the adoption of the platform has been really strong. This really is a continued pattern we've seen for a couple of quarters now. So I wouldn't say that this was especially different in terms of the buying environment other than customers are really seeing clear and fast ROI with the platform and they want to do more. So not just safety and telematics, but monitor equipment, track those assets like you said, connect their workflows into the system. The impact of new products, I think it strengthens our platform story for our customer. They're already in the system. They have lots of frontline and back office employees using Samsara, and ultimately that helps us deliver more value for them. In terms of pricing power, I think, really it's about delivering great value for our customers. We're seeing strong renewal rates, and that's what I focus on is making sure our customers are happy and that they're getting tons of value from the product. If we do that, they're going to keep coming back.
The next question comes from Alex Zukin with Wolfe, followed by Keith Weiss with Morgan Stanley.
Hey, guys. Can you hear me okay?
Yeah.
Perfect. Thanks for taking the question and congrats on another great quarter. I guess maybe just two for me. The first one, if you think about the Asset Tag product, the industrial Asset Tag, it's pretty remarkable to hear about a multi-hundred thousand dollar deal in basically the first weeks of availability. So just if you can give us your sense, Sanjit, like the trajectory of how to ballpark the TAM for this product relative to telematics, video-based safety and others. Where does this kind of fit in that gain and how fast relative to those other products can this ramp over the coming years? And then I've got a quick follow-up.
Sure. So, Alex, it's hard to do a compare versus safety and telematics because when we released those products, we were a much smaller company. We weren't as well known in the market. We're very pleased with how Asset Tags has kind of jumped off the line. There was a lot of excitement at the customer conference when we released it. I think it's because it got our customers thinking about all the other assets they have in their operations. They go well beyond vehicles and even trailers, like all the smaller assets, fiber splicers, tools, things that get left behind at the job sites. Overall, it feels very strong. There's a lot of strong customer pull and interest in it. But again, it's hard to kind of compare it to products that we launched many years ago as a smaller company.
Okay. Understood. And then maybe Dom might not like this question, but the Federal Motor Carrier Safety Administration seems to be planning to revisit the ELD mandate in June of '25. Is there any tailwind that you can kind of see or have visibility on? Because it seems like that would expand your telematics ARR, like if it ends up being applicable to fleets that have free 2,000 engines, how applicable would like how much more coverage do you feel like that could unlock within your existing large customers?
Yes, I think the way that we're going to continue to drive growth out of the business is really being more on offense, meaning customers are buying Samsara and really using us as a system of record across multiple products because they're getting ROI. They're finding ways to operate more safely and more efficiently and reduce their costs, improve their asset utilization and worker productivity. There may be other regulatory compliance things that ultimately kind of pop up, but we're not necessarily tracking that or relying on that to kind of drive future growth. It's really more about kind of being on offense and providing ROI for customers. And we'll take those things as they kind of come up, but none of that's kind of on our radar right now.
Perfect. Had to ask. Thanks, guys.
The next question comes from Keith Weiss with Morgan Stanley, followed by Kirk Materne with Evercore.
Hey, guys. This is Chris Quintero on for Keith. Thanks for taking the questions here. I wanted to go back to an interesting slide you had at Analyst Day where more than half of the market does not use a telematics solution and even higher percentage not use a video safety solution. So curious to hear your thoughts on why these companies are not using a provider today? And are there any potential challenges around getting these customers to adopt the solution or is it really just a timing thing and eventually everyone will?
Yes. So the dynamics are obviously different in the telematics side. Again, it's an industry, it's a product set that's been around for multiple decades. As you said, more than half or roughly 50% of commercial vehicles in North America are not using a solution today. Most of our customers are multiproduct. It’s often the case that they're subscribing to multiple products, which ultimately helps convince them to maybe adopt telematics technology when they weren't using it previously. On the other side, safety is really tied more to recent technology tailwinds. So going to 4G or HD videos has really kind of unlocked the ability to sell a solution and safety, and we're seeing that market rapidly start to adopt new technology. At the time of the IPO, only 5% of commercial vehicles had a solution, now we're up to 10%, and a lot of our safety ARR and growth is coming from new use cases for customers.
And Chris, if I can just add one more point there. If you zoom way out, historically, telematics have been viewed as something that was prevalent in the transportation industry, so kind of long-haul trucking. As we described earlier in the prepared remarks, 87% of our business came from industries outside of that; field services and construction are very strong. What we're seeing is even for applications like telematics, new industries that had not previously adopted GPS tracking are adopting it. To Dominic's point around video-based safety, that's enabled by new technologies, the connection, the quality of the cameras, and also AI being able to sift through all the safety events and deliver value for the customer.
Got it. That's super helpful. And then my second question is for both of you. Clearly, things are firing on all cylinders at Samsara and the results clearly back that up. But just at a high level, we all can always improve. So I'm curious from both your perspectives, what are some areas at Samsara that you're looking to improve on or get better at today?
There's a lot that obviously we can improve on. It's just about execution. Can we make sure that we're hiring the right people and retaining the right people and creating the right company culture and ultimately improving sales capacity and productivity? Can we make sure that we're making the right capital allocation decisions around R&D and building the right products, not only focused on kind of near-term growth but as we've demonstrated over recent product announcements, making sure that we're planting seeds for medium and longer-term growth to drive that durability? We must constantly take customer feedback and make improvements. There's just a lot of execution that's required as we continue to scale, and we're very focused on that.
Yes, I think I would echo Dominic's points around, you know there's a lot that we can do. One of our operating principles is to build for the long-term. I feel like we can always do a better job spending time with customers in the field, hearing what else they want us to build and put on the platform. If I had more hours in the day, that's what I would go do, is spend even more time with the customers.
All right. So the next question comes from Kirk Materne with Evercore, followed by Matt Hedberg with RBC.
Great. Thanks guys, and I'll echo the congrats on a great quarter. Sanjit, I was wondering, I realized Asset Tags are incredibly early on for you all. But one of the things that's kind of interesting is that these tags can be used for incredibly high-value assets as well as maybe lower-value assets. I'm just curious if customers are leaning one way or the other. I think you guys gave the example of everything from a toolbox to a train car full of potash. So I was just curious, are they going after the high asset value assets at all? And does that inform your thought process on pricing longer term? Again, I realize it's like the first quarter in, but I'm just curious what you're seeing out there.
Sure. As you said, it's very early, but it's exciting to see all the different use cases. We've mentioned earlier that we're seeing basically a new use case every week. It's hard to see a specific pattern related to asset value. A lot of what we are hearing about are assets that are left behind that were historically untracked. These often don't have power, so they're not connected to a vehicle or they don't have a fuel source or battery in them. So that's a lot of it, and that encompasses tools, but there's all kinds of accessories in the world of physical operations. If you think about an excavator, for example, the little bucket at the end can get left behind at a job site. Those can cost thousands of dollars. We've heard the same thing about crane parts and so on. I would say a lot of different kinds of assets is the pattern if there is one. But we should see a little more of kind of the high value versus low value over the next couple of quarters. Now stepping back, we have a portfolio strategy when it comes to equipment. We offer powered equipment trackers. We have unpowered, a whole family, really. We kind of view it as a portfolio, and we can mix and match within a customer's deployment to meet their needs.
Okay. That's super helpful. And then Dom, just a really quick follow-up. Obviously, great to see the leverage flowing through the cash flow numbers and the operating margins. Given the strength in demand, how are you thinking about hiring heading into calendar '25? I realize it's early, but I assume you're starting to think about that now. I was just trying to think about how that might impact sort of your thought process over the next couple of quarters.
It's still really too early to kind of get into calendar '25. I think we're just kind of kicking off our annual operating plan kind of review process. We'll have more details on that in a couple of quarters. But the hiring has continued to be robust. We obviously had an accelerated hiring year last year. We've continued to hire aggressively this year, and we're on track with our plans. We will work through our annual operating plan review and figure out what we will do for next year.
Super. Thank you all.
The next question comes from Matt Hedberg with RBC, followed by Jim Fish with Piper Sandler.
Thank you for the questions. I appreciate the asset size discussed in the first quarter. I'm curious about the customer who experienced a $300,000 uplift. Do you think this is an initial purchase? Did they view it as a way to sustain them for the next year? I'm interested in your thoughts on how significant that order is in their Asset Tag journey.
I think for that customer and for other customers that are at least in the pipeline, there's really more of a phased rollout approach of we're going to go after one use case upfront, and then we're going to find other things that we ultimately want to track and bring into the Samsara cloud. I think this kind of quarter will be indicative of future quarters where it's more of a land and expand over time.
If I can add to that a little bit. Some of our customers, once they try the Asset Tag, are discovering new use cases within their operations. One of the examples we shared in the remarks, I met the customer, and they ordered a few thousand tags. One of the departments had a project in mind, and another department swooped in and said, wow, this is super useful. We'd like half of those. They had to come back and order some more. It's exciting because that means we're providing value for these customers.
That's great. Great color. Congrats on that launch. And then maybe reflecting back on your user event, which I thought was a well-done event. There's a lot of buzz about generative AI, and I think trying to find that killer use case that your customer base is looking for. Can you give any perspective on sort of like where we're at in that journey? I mean, is that something that we're thinking about in the next year or so? Because I have to mention there's a lot of opportunities to leverage that sort of technology within your connected platform.
Yes, absolutely. Matt, if you recall in our Investor Day, we shared a demo of basically a chat environment that is powered by the unique data asset that we've been creating here at Samsara. We talked about maintenance, for example, being able, in plain English or plain Spanish, whichever you prefer, to tell you which vehicles need maintenance next, what's wrong with them, all that kind of detail. We're excited to experiment. I think this technology is absolutely transformational and can deliver a lot of value for the customers. It needs to be practical and useful in terms of how we deliver it. Over the next couple of months, we're rolling that out to customers and getting their feedback and enhancing it through our feedback loop.
The next question comes from Jim Fish with Piper Sandler, followed by Michael Turrin with Wells Fargo.
Hey, guys. Thanks for the questions here. I guess underneath, it does look like the mid-market ARR accelerated. And so Dom, how much of that was driven by sort of SMB expansion versus net new? And just generally, overall how should we think about the percentage of ACV from new versus existing this quarter?
Yes. Like in our most recent quarters, it was pretty balanced. It tilted slightly towards expansion, so it was a very strong expansion quarter. We talked about getting to our net retention rate targets, but it was also a really strong new logo quarter. It was our second highest quarter ever in terms of new core customers added. We talked about 9 of the top 10 new logos were multiproduct transactions. Similar to the kind of the most recent quarters, it continued to be very balanced.
And look, in your outlook in the back pages there, you talked about net new ARR and that you're embedding macro worsening in your ARR outlook. But are you actually seeing any impact to the business today? How are deal cycles relative to 90 days ago?
No. Customer demand continues to be robust. I think we're just making sure that we're setting up expectations in a way that we feel highly confident that we can hit. Obviously, there's talks about slowing macroeconomics, and we're in an election year. There's just more inherent uncertainty. We want to ensure we're setting expectations that we feel good about hitting. Again, we're not seeing an impact in customer demand, but it's something that we're always watching out for.
Thanks, guys.
The next question comes from Michael Turrin with Wells Fargo, followed by Dylan Becker with William Blair.
Hey, great. I appreciate you taking the question. It's something we've probably touched on before, but the diversity of logos you're landing certainly stands out. It's actually the State of Maine, US Supermarket, two Fortune 500s. So maybe you can just go back to the diversification the business holds and how Samsara's go-to-market and underlying platform are able to address all of those different types of customers as effectively as you are.
So, Michael, I think one of the interesting things we've learned over the last few years is how much commonality there is across these different industries. Whether you're in construction or field services or the State of Maine, you're always trying to be more efficient. You're trying to understand how to be safer, how well your assets are utilized. We focus on those common use cases and find that they really do apply across these different industries. We do break out our public sector team because the way the deal cycles work is a little bit different and contracting with government agencies is a bit different. We have a pretty much a generalist sales team able to sell across these industries.
Great. And Dom, in the materials, there's some commentary around the operating margin improvement flowing through to free cash flow. Maybe you can just help level set all of us as we're working through models, just in thinking through the delta between those two, how we should expect that to progress going forward.
Yes. We did talk about 200 basis points of operating leverage improvement for the year. That 200 basis points would flow through to free cash flow. There is more seasonality in free cash flow, where Q1 and Q3 tend to be a little bit higher than Q2. Q1 gets the benefit of the collections coming in from Q4, which is our seasonally strongest net new ACV quarter. Q4 tends to be our largest free cash flow quarter because it's the largest, seasonally largest net new ACV quarter, benefiting from that quarter, then all of the second and third year billings from the contracts booked in previous years. There's a little bit more lumpiness within free cash flow. But for the rest of the year, we expect another 200 basis points to flow through to both operating margin and the free cash flow margins versus what we guided to in consensus.
All right. The next question comes from Dylan Becker with William Blair, followed by Matt Bullock with BofA.
Great. Thanks, guys. Sorry about that. Maybe starting with Sanjit or Dom here, given that the ROI is so high and obviously, you're seeing healthy demand in the ecosystem. What's keeping customers from adopting even faster and realizing some of the value that you guys deliver? I know that there's phased rollouts maybe, but is there a way to think about how we should envision that evolution of cross-sell and upsell playing out within the existing base?
A lot of these physical operations customers are really in the early innings of digital transformation. Adopting technology requires change management internally, but really ensuring that they get ROI and therefore they do it more in a phased rollout way. We're fine working with customers whether they want to take all the licenses upfront or do a phased rollout. We just want to make sure that they're getting value and real ROI, which varies based on individual customers.
Okay. That makes sense. And then sticking to the highlights, on the large customer side, a step up in both new logo adds and revenue per customer. Dom, how does this help fuel confidence in the outlook given this is becoming an incrementally more strategic and larger segment that's growing faster than the aggregate mix here?
Yes, it's been incredibly consistent. Over the last several quarters, kind of one percentage point of the mix continues to move towards large customers; we're now at 54%. I said 50% a year ago and 46% two years ago. This area continues to see more investments from us. We're purpose-built for these large enterprises with complex physical operations. They can take on more products, have more impact, and drive more ROI for those customers. This will continue to be an important part of our growth strategy.
Great. Thanks, guys. The next question comes from Alexei with JPMorgan, followed by Derrick with TD Cowen.
Good evening. This is Ella Smith calling on behalf of Alexei Gogolev. Thank you for taking our questions. So first I was hoping that you could share whether there are any products to call out that customers cross-attach, either particularly fast, but then also particularly slowly.
I think there's a consistent pattern. Most of our customers are adopting multiple products. Obviously, our two largest, video-based safety and vehicle telematics, tend to be the most common, but equipment monitoring and some of the emerging products combined for more than $150 million of ARR. It depends on individual customers on what the use cases are and we see different combinations of products across all of our customers.
Very helpful. Thank you. For my second question, are you interested in investing in additional product development, or are you satisfied with your product portfolio at this juncture?
As a technology-oriented founder, we're here to build products that go solve problems for our customers. We are absolutely investing in R&D. It's an area that we get a lot of great ideas from our customers on. We're going to keep improving the products we have and investing in some new ones.
The next question comes from Derrick with TD Cowen, followed by Junaid with Truist.
Great. Thanks and congrats on another strong quarter. Sanjit, could you dive a little bit into the technology behind the new Asset Tags? I know this uses Bluetooth instead of your typical vehicle gateway systems. What are the differences between using Bluetooth versus gateways? Obviously, this helps target a lot more assets to light up and track. What capabilities do you give up that you have to rely on other networks? What are the implications for your COGS requirements?
Yes. The Asset Tags connect using industrial-grade Bluetooth, designed with security in mind. Bluetooth doesn’t connect to the cellular network; instead, these devices connect to the Samsara gateways that are installed. We have millions of gateways that achieve near real-time tracking due to the scale we've achieved as a company. This technology allows us to do real-time tracking, and Bluetooth radios do cost less than cellular modems. The battery life is greater because Bluetooth doesn't need to broadcast to a cell tower. For a small tag, we can achieve a multiyear battery life for our customers while doing real-time tracking.
Got it. That's helpful color. Dom, I know we only get total customer count once a year, but can you speak to the velocity of how total customer count is trending versus historic levels and how you're feeling about making sure you've got a funnel to keep graduating a healthy level of customers into that $100,000 number and drive good growth in that $100,000 number?
As I said in the earlier answer, it was our second highest quarter ever in terms of new core customer logos added. So really strong. It drove roughly close to 50% of the overall kind of net new ACV. It was a slightly larger expansion quarter. Similar to previous quarters, landing new logos is really important for us because that leads to future expansion opportunities. It was very consistent mix from previous quarters.
Great. Thank you.
Our last question today comes from Junaid with Truist.
Great. Thank you for taking my question. Just on that large customer count, as you continue to shift your focus on serving these larger enterprises, which has been growing pretty impressively, what are some of the additional levers that you can use apart from hiring more quota-carrying reps to further drive that large customer penetration?
I think a big part of it is capital allocation and R&D investment. The more products that we can create, and obviously, we're reaching a pretty good velocity on an annual basis, it just opens up more opportunities for us to have conversations with customers ultimately to solve more of their problems, create more ROI, and have more impact for them. If we can continue to do that, it will allow us to continue to grow the large customer cohort fast.
Great. Thank you. Okay, this concludes the question-and-answer portion. Thank you for attending our Q2 fiscal year 2025 earnings call. Before I let you go, I have a few short announcements. We'll be attending the Goldman Sachs Communacopia Conference in San Francisco on September 9th, the Wolfe Technology Conference in San Francisco on September 10th, the Piper Sandler Growth Frontiers Conference in Nashville on September 11th, and the JPMorgan Software Forum in Napa on October 8th. We hope to see you at one of these events. That's it for today's meeting. If you have any follow-up questions, you can e-mail us at ir@samsara.com. Thanks again. Bye, everyone.