Shopify, Toast, and Samsara posted strong revenue growth in their latest quarters, driven by their focus on physical product markets. Shopify reported revenue of $3.58 billion, up 34%, with gross merchandise volume reaching $115.6 billion, up 32%. Toast's revenue rose 23% to $1.91 billion, while Samsara's revenue increased 31% to nearly $2 billion. These companies serve physical-world customers and have outperformed many public software firms impacted by AI disruptions, according to saastr.com.
Shopify's operating income grew to $488 million from $291 million a year ago, with free cash flow at $654 million, representing an 18% margin. Toast added a record 9,500 net new restaurant locations in a single quarter, with annual recurring revenue (ARR) up 25% to $2.4 billion and recurring gross profit streams growing 28%. Samsara achieved its third consecutive quarter of GAAP profitability, with net new ARR of $101 million, up 30%, and ARR from customers with $1 million+ contracts up 62%.
These results highlight the resilience of B2B companies focused on physical products, which are less affected by AI-driven disruptions impacting other software sectors. For comparison, the median public B2B company grew about 13%, while Salesforce's recent quarter grew 13%, partly due to acquisitions. The strong growth of Shopify, Toast, and Samsara underscores the market demand for software solutions tied to physical goods and connected transportation.
Shopify's stock rose nearly 20% following its earnings report, reflecting investor confidence. Toast raised its full-year recurring gross profit growth guidance to 23-25%, up from 21-23%. Samsara's accelerating ARR growth and sustained profitability mark continued momentum in the connected transportation segment, according to saastr.com.