Company: IOT
Filing Date: 2025-06-10
Form Type: 10-Q
Source: 0001642896-25-000058
Chunk: 72

Company: Samsara Inc.
Filing Date: 2025-06-10
Form: 10-Q
Item: Part I, Item 8
Chunk 72
---
 subscription offerings, including subscriptions to additional Applications, by existing customers.

Cost of Revenue, Gross Profit, and Gross Margin

Our cost of revenue, gross profit, and gross margin are summarized as follows (in thousands, except percentages):

Three Months EndedChangeMay 3,2025May 4,2024Amount%Cost of revenue$83,169$68,625$14,544 21 %Gross profit$283,715$212,101Gross margin77 %76 %

Cost of revenue increased by $14.5 million, or 21%, for the three months ended May 3, 2025 compared to the three months ended May 4, 2024, primarily due to $7.9 million of increased infrastructure costs associated with our product offerings, $4.8 million of increased amortization of IoT device costs, $1.4 million of increased employee-related costs, which included a $1.1 million increase in salaries and benefits and related employer taxes and a $0.3 million increase in stock-based compensation expense, $1.1 million of increased amortization of internally-developed software, and $0.9 million of increased warehouse fees and credit card processing fees, partially offset by $1.6 million of decreased excess and obsolete inventory charges. The increases in amortization of infrastructure costs and IoT device costs were primarily due to increased sales volume year-over-year.

Our gross margin increased to 77% for the three months ended May 3, 2025 compared to 76% for the three months ended May 4, 2024, mainly due to operational efficiencies in IoT device costs and direct labor costs.

Research and Development

Research and development expense is summarized as follows (in thousands, except percentages):

Three Months EndedChangeMay 3,2025May 4,2024Amount%Research and development$83,242$72,973$10,269 14 %Percentage of revenue23 %26 %

Research and development expense increased by $10.3 million, or 14%, for the three months ended May 3, 2025 compared to the three months ended May 4, 2024, primarily due to a $7.7 million increase in employee-related costs, which included a $4.1 million increase in salaries and benefits and related employer taxes and a $3.6 million increase in stock-based compensation expense, primarily due to increased headcount to support our research and development organization. The increase in research and