Articles Archive
Samsara Surpasses Q3 Expectations but Slowing Revenue Growth Weighs on Shares

Samsara Surpasses Q3 Expectations but Slowing Revenue Growth Weighs on Shares Dec. 6, 2024, 11:24 a.m., readers: 16

Samsara (NYSE:IOT) delivered third-quarter results that exceeded Wall Street's expectations and raised its full-year guidance, yet its shares fell over 5% intra-day today as investors reacted to signs of slowing revenue growth. For the quarter, Samsara reported adjusted earnings per share of $0.07, outperforming analyst estimates of $0.04. Revenue rose 36% year-over-year to $322 million, beating the consensus projection of $310.57 million. The company highlighted its strong performance as evidence of efficient growth at an expanded scale. However, the revenue growth of 36% reflected a slowdown compared to the 43% growth reported in the previous quarter. Annual recurring revenue climbed 35% year-over-year to $1.35 billion, signaling continued demand for its Internet of Things solutions despite the deceleration. For fiscal 2025, Samsara raised its adjusted EPS outlook to a range of $0.22 to $0.23, surpassing its prior guidance of $0.17 to $0.19 and exceeding analyst expectations of $0.17. The company also revised its full-year revenue forecast upward to between $1.237 billion and $1.239 billion, slightly above the Street consensus estimate of $1.23 billion. While the company showcased resilience and upward financial adjustments, the slowdown in growth appeared to temper investor enthusiasm.

About NYSE: IOT

S amsara Inc. provides solutions that connect physical operations data to its Connected Operations Cloud in the United States and internationally. The company's Connected Operations Cloud includes Data Platform, which ingests, aggregates, and enriches data from its IoT devices and has embedded capabilities for AI, workflows and analytics, alerts, API connections, and data security and privacy; and applications for video-based safety, vehicle telematics, apps and driver workflows, equipment monitoring, and site visibility.

Price: 44.32
Market cap: 24.9 billion USD
Eps: -0.47
P/e ratio: -94.30
Focus Analysis On: IOT