Samsara Inc. (IOT) Earnings Call Transcript & Summary

This is an amazing company, not just the company, but the company as well. We got to know these guys a few years back 3, 4 years back, and I thought about the idea. I said isn't this like Fleetmatics, maybe I'm an old timer. And then when we got to know the story, it turned out to be something absolutely unique, and it's been such a great experience covering the company over the past couple of years. So congratulations, you had a great quarter. But I just want to start off quick introductions. Everybody knows who these guys are, Sanjit Biswas, CEO and Founder of Samsara; Dominic Phillips, CFO, has been on Wall Street and on corporate side being a senior finance executive at another company. So a lot of experience here.

Sanjit, maybe we start with your visionary. You founded a company before, sold it to Cisco. So you have this vision for what this company ought to be. A one 1 level, it looks incredibly deceptively simple. You stick a bunch of telematics devices, collect the data and help you do the monitoring, turn by turn navigation, insurance, safety, all these sort of things. But I have a feeling that the company might look a little bit different in the next 4 to 5 years. The control C, control V formula of growing a company rarely works. How do you see the company solving problems for customers that just are not apparent today?

Yes. So I think the key word is customer, right? We have to understand what's going on in their environment. So just for a little bit of background, the customer Samsara serves are in the world of physical operations. So it's 40% of the world's GDP. We're talking construction companies, energy utilities, supply chain companies and so on. They care about a few things. They care about safety. So they're operating in these asset-heavy environments, long shifts, lots of people. So keeping the work for safe matters a lot that has direct translation to their labor force as well as their insurance costs. They care about efficiency and sustainability as well. So if you think about things like energy use, fuel consumption, for example, matters a lot, how they route, and how they serve their customers matters. So the vision for Samsara is to really serve all of this very vast market and help them digitize, right? Because the way that they run their business is very similar to the way they ran it 20, 30 years ago, a lot of pen and paper, a lot of manual process, they haven't gone through digital transformation. So we wanted to start with some very clear applications that delivered ROI because these folks are very ROI-centric. They need to see hard results. And if you prove that, then you have an opportunity to do more with that. And so we start with GPS tracking, as you mentioned. But that was kind of foot in the door. It kind of got us going and build that relationship. We very quickly found driver safety was a bigger issue for them and something that's even more front of mind, and we sell that as part of our platform. And then we found asset utilization, equipment monitoring was a big one. So that's kind of the idea is build out a multiproduct platform and be that partner for these customers and build that system of record because most of them don't have anything like Samsara in place. They're still running in the pen and paper kind of way.

It's kind of my first reaction, this is telematics? No, Dom said, "No, it's not telematics. It's something bigger. It's a platform. This is what we do." So what are the -- what is the common thread that runs through these problems that your customers face that you think that it's worthy of building a platform that is capable of doing more things in the future. So Help us think about the platform aspect of Samsara.

Yes. I think the core is the data, right? So GPS is a source of data. We have these cameras that are deployed on trucks. They run our AI models that creates data around risk. We have fuel consumption data and so on. That's the thing that really is valuable because when you have so much data consolidated, you can do more with it. You can obviously improve things like fuel utilization, you can also understand things like asset utilization am I using all the trucks? Are they -- should we sell some of them off? Should we rotate them, that kind of thing? So it creates more ROI in other words. You can then connect that data to other sources, right? You can connect it to your expense management. You can connect your payroll, you can do all these other things, so that's the interesting thing here is it's more than a single kind of point function. It's about, hey, let's have a platform where all this is well formatted. And then you can get a lot of value from it over time.

Yes. Yes. Got it. Got it. Got it. And the architecture that enables you to build this platform since you're an engineer, you've been behind a couple of other companies. I'm just curious, how future proof is this architecture that you've built this initial platform, and how can it scale to new applications that might bolt on to the platform?

Well, we built it with this vision from day 1. Many of our competitors have been around much longer than we have, but they really were just GPS track or just driver safety and so on. We built Samsara as a data platform and have been keeping track of that data in this very structured way from the beginning. And that enabled us to do things like invest in AI 4, 5 years ago when it was a more nascent technology. So I think that's kind of -- the exciting part is, we were born in the cloud. The company started in 2015, built for scale. We've done it once before. We knew what it could become. And we knew the importance of data, open platform. So we have open API with 250 integrations and growing. And then the idea that you can find more value in the data over time.

Yes. I think we touched upon this somewhat, but maybe -- what are the new value propositions that you're seeing in new use cases in your customer base that surprised you and say, you know what, this is actually cool. I think this is going to be possible.

Well, I would say almost all of our customers start with a project in mind. They want to reduce risk, which is related to maybe accident payouts or something like that. But in the process, they start to see more sources of ROI. So some of the really interesting ones that I've seen recently, we have one example customer, they're a very large airline, air carrier. They use us to track all their equipment on the airfield, and they've been able to actually make their flights run more on time. They can get flights out the door 15% faster because now they know where everything is.

Did you talk about it on the conference call, but you did?

Yes. Yes, I did mention that. Yes. And it's just such a cool story because...

Which airline...

I don't think I'm allowed to do that...

I wish I could still buy their stock.

But it's actually something that we're starting to see across a number of industries where these are folks that maybe weren't as familiar with GPS tracking because they're not trucking carriers, right? Those are the people that had adopted for 20, 30 years. These are use cases where there are all these new pieces of equipment out there that you didn't even know you could track. And now you put it on a data platform, and you can connect it to all different systems. You can provide real-time alerts, you can do analytics. And you're just unlocking a lot of really useful value there.

That's interesting. My fascination with Samsara is on the fixed asset side. I always wondered, there's another company who we should not mention by name, but very expensive solutions, very long time to deploy a questionable return on investment. It feels like there is like trillions and trillions of dollars invested in physical immovable assets, right? You guys have had the luxury of great execution, of course, but great demand on the vehicle side. So really two things to the question. How big -- your core business opportunities must be so big that you're not thinking that the fixed asset market is something you want to dig into. Then tell us why this market is as big as the number [indiscernible] I mean, 45 million vehicles or something. There was a big number in North America, Europe, why is this market going to continue to be relevant in the future?

Well, let me start, I want to share the stage a little bit. So in terms of vehicles, they are foothold for us into the world of physical operations. All the industries I mentioned earlier, construction and others. You don't think of them as truck-centric. It's just they happen to have some trucks as part of their construction business. Same thing with energy utilities and so on. So it gives us exposure to a number of these industries. And that's how new product lines like connected equipment came to be for us. Connected equipment for us is basically non-truck, non-telematics-oriented businesses. So construction equipment, trailers, generators, compressors and so on. So we're not talking about fixed equipment yet. But these are just field assets. There's almost 10x as many of those as there are trucks. The numbers you're talking about 30 million, 40 million. Those are just trucks, vehicles. There's even more other piece of equipments...

TAM A, TAM B, TAM C...

Right. And so we think of it in concentric circles. And when we quantify TAM, we start with the most kind of conservative estimates, which are around the vehicles, which is where the core of the business really began.

We now have 3 product categories that are doing more than $100 million of ARR. So video-based safety is our largest then vehicle telematics. Both of those are tied to the number of vehicles out there, but then we have this equipment monitoring business that's also doing more than $100 million of ARR. All 3 of those product categories are growing more than 30% year-over-year. And so it tends to be -- we land with these vehicle-based applications. And over time, they expand into some of these non-vehicle areas. And what's interesting is that where the vehicle is much more of a push where we're out talking to customers. When they get into the equipment monitoring some of these other use cases, they're really pulling us into use cases that we didn't originally think of.

Yes. So how do you inform yourself of new product direction when the needs -- you've discovered new things, all of a sudden, there's planes leaving and leaving on time, et cetera. How do you know what to put in the product road map?

So we're always trying to look and listen. I personally love to spend time on the road just going and seeing these physical operations because a lot of these industries aren't intuitive, like you don't get invited behind the curtain, if you will. So you see a lot of those opportunities. We also run what we call the Samsara customer feedback loop. So we do things like advisory board. So we had our customer conference before that, we took a whole day. We just spent time with a bunch of the C levels asking them what other projects around their minds, like what's kind of front of mind for them. But it's a combination of the relationships with the customers and then physically being on site with them. And that direct touch just gives you so much insight into what matters to them. And it's just different because these frontline workforces, they're actually the majority of the world's population, like 70% to 80% of the world's workers are frontline. But when you're in an office, you just don't have that same intuitive feeling for what their challenges may be.

So the construction market, I mean, there's a lot of inefficiencies in ways, could that be your fourth business or fourth vertical?

It's turning into. I think it's our #3.

I think it is, but I think the nuances we're really selling across many different end markets to make up 40% of global GDP. Construction is just one of those end markets, field services, utilities, food and beverage, local government, it's a big one. And so construction is probably more than 10% of ARR and will continue to be a big driver of growth.

And of all those diverse verticals you just pointed out to, Don, the comment thread is, again, asset utilization, what else?

Well, they're all physical operations industries. They kind of the beachhead into all of those end markets for us has been commercial vehicles and the use cases have been really tied to safety, efficiency and then increasingly, things like sustainability.

And the safety aspect is really tied to the people, right? And I think it's easy to see all of these as asset-heavy environment, which they are, but they're also labor-intensive environment. So if you can help keep those people safer and then also make those people more efficient. It's really meaningful for these companies.

Maybe that's a perfect segue into generative AI. So keeping people safe, et cetera, that whole direction. How do you inform your strategic plans relative to generative AI, and the whole thing just didn't practically exist until a couple of years back or maybe existed in a very tiny circle of people that knew what ChatGPT 1.0 was, and what 2.0 was? How are you informing you as you dug in, what are your findings as to how it can benefit Samsara?

Yes. So AI was a big enabler for us as a company. So the safety product that we mentioned earlier, which is now our #1 product, was truly brought to life by computer vision-based AI models, right? So we could detect things like distracted driving and safe following. We use that to drive workflows, which in turn reduce risk. So we've always been big believers in this area. And so we have an AI team. We've been growing that over the years. Generative, I would say, is a new kind of tool in the toolkit, right, in terms of what you can do with AI. It's enabled by high volumes of data, right? And we have structured data. Except our data isn't kind of the ChatGPT like chatbot style data. It's highly structured. It tends to be more numbers than words. We can use it to do things like enhance our models, so we can generate more drivers. We can generate more road conditions, and we can use that to train our models, and we've increased our model accuracy using techniques like that. So I think people often think of generative AI as a ChatGPT, which is the best-known application. But you can also...

Write me an essay or paint me a picture or write a song or whatever...

Yes, exactly, right. And so we don't have a lot of essays or songs. We are in operations platform, but we do have a lot of safety use cases. And so if you can generate millions of images, we can train our detectors in more accuracy.

Was it -- I listened to a chat, an interview, Frank Slootman with Jensen Huang NVIDIA, and they were talking about how you can look at structured data. And although that's not what we think of as being a generative AI use case if you could say, help me reconfigure my supply chain because I want my product be only 3 days late, who I'm talking about, right? I don't want it to be a week late. So that's a very unstructured question, but then you can work with the structured data from this query and do the [re-compete]. Is that how you would...

Yes. And I think of that as perhaps leading to a whole new type of interface. So we have obviously, a lot of reports in our system. We have custom reporting. But ultimately, the customer wants to know is product tax is going to be laid in 3 days, if you say. So we can...

Yes, yes. Is my flight going to leave on time? What should I do?

Yes, exactly. And physical operation is very complex.

You could do that, right, with your product? I could ensure that if I'm x, y, z airline, which I won't mention.

Yes. And we also do things like predictive multi-stop BTAs, and things like that. So I think there's a lot of interesting possibilities here.

Interesting. So another question we wrote down was, why do you win? It seems like it's pretty obvious why you win, but anything else we missed as to why people -- customers choose Samsara over whoever else that might be?

Well, I think there's a few reasons. One, just kind of stepping back for a second. We do partner very closely with these companies, and they're not the most technologically forward. They're very busy with their physical operations. They haven't built the biggest IT teams and so on. And so they're looking for very direct hard ROI, and they're looking for a partner that can deliver it for them. We show up with a product that's really easy to try. And then it's very easy to deploy at scale. So that's something a little subtle, but makes a big difference for our customers that, hey, it just works, right? And then once it does work, it's not just a single solution that I'm just using for telematics. They can actually use it for everything, and then they can connect all their other systems onto it. So we've seen our large customers connect us into more than 6 other third-party systems like payroll, insurance, fuel cards, OEMs, like all of these data sources can be synced. And that's also maybe not intuitive to everyone how important that is in operations because now it's like having a Salesforce or a ServiceNow or Workday kind of approach. It's very valuable for them. So in terms of why we win, I think it's unlocking the ROI and value for the customer. I suppose you also...

Yes. The data asset, we're collecting 6 trillion data points a year. And I think the breadth of that data across different geographies and end markets and different product categories and different customer sizes allows us to unlock more insights and provide more value to customers. And it just is the flywheel that continues to build on itself. The more customers we get, the more data we get and the better insights that we can provide. And the second thing I'd call it is just the ease of use. Customers are able to deploy Samsara within minutes and they get it up and running and they start collecting data and they start really changing the way they run their businesses in a way that they can pay back their same-store investment very quickly. And I think that really stands out for us.

As opposed to customers that have better asset turns, better asset utilization or more profitable et cetera, the ones that don't are not that profitable. So have you thought about looking at a list of stocks of publicly held companies that have used Samsara and seeing the return on investment manifest in better profitability. I mean, I did not plan this question, but just thinking about what you're saying in real time, it has to have a material impact on their bottom line.

And I think that's what -- we get asked questions about like why are these budgets maybe not compressing in the same way that they have in some other industries like IT-centric buyers. And I think these are buyers that have always been very, very focused on ROI and really low kind of profitability margins and operating more efficiently and safely has always been kind of a core part of their business. We do things like we provide benchmarking data for them. So we can say, if you're in this region, and you're in this industry, and you're this kind of size of a customer, here's how much money you should be spending on fuel or what your insurance premiums should be or how many accidents you should be getting into? And so customers are able to use some of this data to make some real decisions about their business.

It's the untapped opportunity, guys, right? I mean so if you can get access to the customer for instance invest in every one of those companies, if they're public, you could benefit from -- Actually, I remember, one of the companies in software, Adobe many, many years back that release list of customers and say, they're doing digital marketing, they're converting better, blah, blah. And I remember a client telling me, I bought stocks and all the it did really, really well for a period of 2 to 3 years, something to consider. I'm sorry, ETF.

ETF. It's down on our product road map.

It could be -- you guys have a product road map. So I think the next question is the market is so big, penetration, how do you look at the penetration of this market. It got to be very small, but how much of this is really addressable with their solutions. So what could be the real penetration versus the theoretical?

So if we just start with vehicles, which again is a subset of what we do, commercial vehicles, the idea of tracking them has been around for a while, right. GPS tracking is probably 20-plus year old technology. So about half of them were already tracked by some legacy solutions. Many of them don't have safety camera. That's a newer technology really enabled by AI. So that's maybe 5% penetrated. But there's just a lot of market out there. And the buyers are primed to say, "Hey, technology can help here." But then that's the foothold because then it opens up the door to things like connected equipment, where there's less understanding that I could be tracking all of these other assets that are out there. I don't know if you want to add anything?

Yes, I think that the TAM, and that's maybe one of the challenges that's just less defined. We're not taking a technology that existed on-prem and just sticking it on the dot and it's like a very defined TAM. We're helping customers that have not -- have been very underserved by technology go through the kind of early innings of digital transformation, and we're putting technology in places that didn't exist and where we're placing inefficiencies or unsafe behaviors with technology, and that's how customers are funding it.

On the non-fleet side, do you have competition that shows a very different set of competitors that see you on the asset management side?

Not so much. I would say this is an area where if you go visit the customer, you just don't see any digital technology on that asset. And so like a trailer is a great example. These are the -- they get pulled around by the trucks. Once they're disconnected, they're just kind of static and people actually don't know where they are. So that's -- and so what we're replacing is the phone call of, hey, do you know where that trailer is except I think at the scale of tens of thousands of these things.

Yes. I ran into -- I actually was in Uber car -- ride and driver turnout to be running a big vehicle that has Samsara and she said, I'm forced to take my brakes. And so the camera is monitoring. And so it's resulted in better safety. It's mandated. I need to pull up after 8 hours of driving I have to. Keep driving, yes, things like that, right?

Yes, not good for the driver or the passenger or the people on the road, right?

Exactly. Another one was the role of potential government catalysts and mandates, regulations, et cetera, in your business that could be positive drivers. If you take it on.

Well, you just mentioned driver safety and kind of fatigue. That is something that was mandated at least for certain kinds of drivers here in the U.S. a couple of years ago. It's called the ELD mandate. That was 2017, I believe. So that was the tailwind in terms of making sure people are adopting these technologies. It's possible there will be some reporting requirements from the SEC around the emission. So sustainability is something that our customers are really interested in reporting on. We provide the data for that. So that would be a potential tailwind or around safety if there's kind of more focus on fatigue and kind of safe driving on the road.

Yes. Got it. Maybe we'll give Dom some airtime and give you some oxygen breathtaking or taking some oxygen while you short oxygen supply. If you can recap for us what are the misunderstanding of the Samsara business model and what are the structural changes that are happening. I know that you have cash -- free cash flow, free cash flow...

Free cash flow positive.

Yes, free cash flow positive, which you've been razor-focused on for quite some time. But how do we think about the business model of Samsara today and how does it evolve in the long term? What are the levers and push points?

Yes. Well, I think some of the misnomers of the business have just have started to go away more over time, we've now been public for 7 quarters. And so only being tied to the transportation segment was kind of an early investor thesis, and we've talked about it pretty consistently, we talked about on the Q2 call that 84% of our net new ACV came from non-transportation-related segments. So strength in field services and construction and utilities and public sector and some of these other end markets. Some early misnomers about really just being tied to telematics. There are some other companies that GPS has been a market that's been around for decades now. But our video-based safety and driver safety and coaching product is actually our largest contributor to ARR in our fastest-growing product category. And obviously, that -- could we get to free cash flow breakeven? Could we actually be a profitable business? And we've demonstrated a tremendous amount of leverage dramatically over the last 4 quarters and then got to free cash flow positive in Q2 and have a path to sustain that going forward and doing that while being in balance with growth hitting 4 consecutive quarters of being a rule of 40 or a better company. And so a lot of the consistency and the execution over the last 7 quarters, I think, has alleviated some of those investor concerns.

Yes. And if we listen to only your call, you not know that there are macroeconomic issues, broader -- in the broader world, I mean, you guys have delivered as there's no change in the economic environment at all.

We have some unique benefits that maybe are different than some of the other technology or IT-centric enterprise software businesses. I think, one, the fact that we have a subscription business model, provides a lot of visibility into what future revenue is going to be, which allows us to set guidance and expectations with a lot more confidence than if we had kind of a consumption-based business model. We've talked a lot about our buyer. We're selling into an operations budget, which is very different than selling into a CIO. These budgets for our customers tend to be really large and they're a lot less discretionary. We did a recent survey where 2 out of 3 of the operations, buyers that we surveyed are actually increasing their technology budgets...

Why is that. I'm curious why are they doing that?

Well, I think it's because they've been very underserved by -- they haven't used a lot of technology. And so they're spending a lot of money on very capital-intensive businesses, and they've just not been very efficient or very safe in the way that they've deployed their capital. And so they're really starting to appreciate the benefits of technology and how that can help them improve their businesses and their profitability. And so they're in the kind of the earlier stages of an S curve of digital transformation. We've experienced it in our consumer lives. And obviously, we've seen it in the world of IT, but these buyers are kind of going through it and they're dedicating much more of their budget and capital to technology than they ever have.

I'm curious if these folks have labor shortage that they're suffering from.

In many of these industries, they do. And it's also because these jobs are difficult, like you think 8, 10, 12 hour shifts, working construction, you're working on these front lines. And so actually having easy-to-use technology is a positive force in terms of helping attract and retain talent. And then also when you show you're doing things to improve things like workplace safety, given a choice, you're going to want to work at the safe organization, right? So it's really important. We've seen companies like DHL, the pretty significant savings in accident-related costs like 49%, 50% reduction in cost, but then also an improvement in retention.

You got to take our simple DHL. You said it.

As part of the ETF, yes.

I don't know if they are public.

Yes. So -- but we are seeing that, which is they care a lot about their labor turnover rates because again, frontline employees do have a higher turnover rate. So their entire business efficiency improves the side effect.

Which brings us to connected worker opportunities. Can you tell us more about that? What is that all about?

Yes. So at our customer conference in June, we announced a new product that we're investing in called connected form. So it's basically this idea that these industries, they have a lot of pen and paper workflows and checklist still, right, whether it's a safety check list when you're -- before you get on a forklift or something you do when you're taking delivery, et cetera, and we basically want to digitize all of that because we think it can obviously save the paper but save a lot of time, connect these processes and then get data into the cloud. So that's something we're hearing from customers, and we're excited to be investing in that area. We have an early access of our beta product that will kind of get us even closer. And this has nothing to do with the truck. This is about the people, right, and the work they're doing.

So what could be a possible benefit if somebody deployed that connected worker. I'd say Jacobs in Houston and Mats in New York that's a fictitious use case. I don't mean to really have you growing in the conversation, but what -- help us envision what that benefit is?

Well, a simple one, I mentioned forklifts, right? So a lot of our customers that have these loading docks and warehouses, factory floors that have forklifts. And from an OSHA or occupational health perspective, there's a source of a lot of injuries, right? So maybe there's kind of been a pen and paper checklists for forklifts for a long time. But maybe Jacob knows you're in San Francisco, and you're not watching. And so you kind of skips it, right, and just sort of says, yes, on everything. Right? Not saying Jacob is at risk. But if that's a habit that's forming, at some point, you're taking on more and more risk...

He does not listen.

But that's an opportunity to actually; a, know that, that's happening; and b, coach Jacob, right, and prevent that risk from happening in the first place. So that's something that occurs when it's no longer a piece of paper, but it's in the cloud. There's a workflow that automates that. There's maybe some AI to help surface that, hey, there's some risky behavior occurring here. And then there can be a closed loop that, hey, something was done about it. that will help reduce risk fundamentally.

And although, that's one unit. That's a higher value unit that's higher risk potentially. And then by having your value proposition, you can eliminate big chunk of that risk, right? Do you price this differently when you go into the construction side and you have like a Jacob trying to...

Jacob is everywhere. He's working 2 jobs or 3, I guess. So we haven't set pricing for forms yet. We are trying to keep it simple and easy to understand and just understand the different use cases.

Sounds fascinating. Sounds really fascinating. Equipment monitoring. So you -- Dominic said $100 million plus in ARR. What are your goals for this segment?

Well, I think for all 3 of our products that are doing more than $100 million of ARR. Again, they're all growing north of 30%. And so when I look at the overall AR mix and the composition between the different products, it's been very consistent. And I think we'd like to continue to see that moving forward. There's a lot of existing customers that are just kind of scratching the surface in terms of using this product. And as you said, there's many more types of non-vehicle assets, and there are vehicles. And so going deeper within the existing customers and finding new use cases is, I think, a big opportunity for expansion in the future.

Standing room on the crowd. Anybody has any questions. Go ahead, please.

Talk a little about ROI. Obviously you are [indiscernible]. But how does your [indiscernible]. So let's just say, for example, you had an asset that was running at 85% utilization. They see a drop in sales, now it's 65%, 60%. They're still paying you guys at the same price to check that operation. Does that like do you ever have conversations with customers about that? And like how do you guys handle the conversation like that?

It's -- and you should chime in here. So it's pretty typical for a customer to like suddenly reduce the number of pieces of construction equipment or something like that. If they have that much cyclicality in their business, they tend to rent from like an example would be like United Rentals. So that's how they buffer that cyclicality. We would be on their owned assets. Many of our customers actually will realize that they are only utilizing 60% of their assets, and they should sell off those pretty expensive pieces of construction equipment or trucks or something like that. And so in that sense, we're very much tied to getting higher utilization, higher efficiency. We don't tend to see that kind of flux.

Yes. I mean we signed 3- to 5-year contracts based on the number of assets. And so this isn't -- not like consumption-based pricing. So based on the amount of utilization, the overall contract value doesn't change, which again gives us a lot of visibility into future revenue.

And that actually brings up another one, which is like the URIs of the world. Are they like potential lead-ins to getting more customers who are renting like a familiar with your platform and your product and ultimately, like a sales channel in some way? Do you rent a forklift from URI or whatever it is they say, "Oh, the Samsara data is here," like I can see all of this and then they come to you rather than like going outbound, they come in that.

Oh, I see, Yes. So there are a number of different equipment rentals companies. We've worked with many of them. Many of them are customers. So folks do get exposure there. We're also seeing a lot of people get exposure just from -- we've been in the business now for a couple of years. People switch jobs and they'll say, "Hey, my previous company used that was really successful." So I would say that latter one is bigger source of referrals, like the safety manager moves from company A to company B. And it's a big win for them at company B if they can reduce risk all of a sudden. So that tends to be the more typical way that we get pulled in.

Any other questions?

So the question was our international go-to-market strategy as we expand. So it's very similar to how we do things here in the U.S. and North America. It's a direct sales motion. The customers, the use cases are very similar. There tend to be some regional differences in terms of obviously, language because we do have apps for frontline workers. But then also the rule sets for regulatory compliance are different country by country, but the go-to-market fundamentally is the same.

I offer Jacob to ask a question. Oh, I'm sorry...

Can you talk a little bit about how you think about AI for your business?

Sure. So AI for us is something we've been investing in for quite some time. So the safety product that Dominic mentioned earlier is our #1 product is really enabled by AI, so we can surface insights around risky behaviors. Use that to drive workflows, which then change behavior. So there, that's something we kind of invested in back in the 2018 kind of time frame. And that showed us the value of all the data. So we have a lot of proprietary data flowing into our platform, 6 trillion plus data points, tens of billions of minutes of video footage a year, et cetera. And then we can use that to train AI models. So expect more models from us, more insights, and that will drive more ROI for the customer.

Just one for me. You recently hired Laura [indiscernible], can you talk about your vision. I mean you're also the billionaire, but multibillions in ARR [indiscernible].

Yes. So Laura joined us about 90 days ago. It's been great so far. She was -- she came to us via ServiceNow, where she's been there really through this kind of next phase of growth, which we're heading into going from $1 billion to several billion. And we're excited to have our leading the go-to-market efforts. For us, it's her customer-centric background is great. She's been out on the road with me in front of customers. But also hurt scaling and infrastructure experience of how do you build teams that can go do this at scale? How do you focus in on accounts and drive more success? I think it's great. So, so far, it's been really good.

I think that's queue to about wrap it up. It's great to listen to your story. Every time we come back, there's some new use cases, new TAMs and new opportunities that [indiscernible]. And then, of course, you're free cash flow positive. It's a rare combination of profitability and a great market opportunity, very unique execution. So really fantastic to work with you guys. So thank you so much. Give a round of applause for these guys.

Thanks.