The asset-tracking systems provider Samsara posted better-than-expected results Thursday, along with impressive guidance.
In late trading, Samsara shares were 16% higher at $39.85.
CEO Sanjit Biswas said in an interview with Barron’s that Samsara had a particularly strong quarter with larger customers: Revenue from customers generating over $100,000 a year in revenue grew 49% from a year earlier, he said.
Samsara provides software for things like keeping track of vehicles and construction equipment. Not for nothing is the company’s ticker symbol IOT, a reference to the “internet of things.”
Biswas says the company saw strong demand across vertical markets, including from construction companies, local governments, and transportation firms.
For the fiscal fourth quarter ended Feb. 3, Samsara reported revenue of $276.3 million, up 48%, and well ahead of the company’s guidance range of $257 million to $259 million. The company noted the latest quarter was 14 weeks, compared with the usual 13 weeks. Adjusted for that factor, revenue would have been $256.5 million, but the company was careful to say its original guidance had already anticipated the longer quarter.
Wall Street consensus as tracked by FactSet had called for revenue of $258.3 million.
Adjusted earnings were four cents a share, above Samsara’s forecast of two to three cents a share. The consensus estimate was for adjusted earnings of three cents a share. Under generally accepted accounting principles, Samsara lost 21 cents a share.
Annual recurring revenue was $1.1 billion, up 39%. Adjusted gross margin improved to 76%, from 74% in the year-earlier quarter.
For the full fiscal year, Samsara posted revenue of $937.4 million, up 44%, with adjusted earnings of seven cents a share.
For the April quarter, Samsara sees revenue between $271 million and $273 million, with adjusted earnings between break-even and a penny a share. Wall Street consensus had called for $267.1 million in revenue and a loss of a penny a share on an adjusted basis.
For fiscal 2025, the company sees revenue between $1.186 billion and $1.196 billion, an increase of 27% to 28%, with adjusted earnings of 11 to 13 cents a share. The Street consensus had called for $1.17 billion in revenue and adjusted earnings of nine cents a share.
