Samsara (IOT -16.24%) stock is plunging in Friday's trading following the company's earnings report. The Internet of Things (IoT) company's share price was down 17.3% as of 12:30 p.m. ET.Samsara published its Q4 results yesterday and actually delivered sales and earnings that beat Wall Street's targets. But the company's forward guidance came in a bit below the market's expectations, and investors are concerned about slowing growth and softening margins.Samsara stock falls despite Q4 beatsSamsara posted non ...

Group 1 - Samsara (NYSE: IOT) has delivered its fiscal 2026 guidance, indicating that it operates as a premium business with a premium valuation [1] - Despite a bullish outlook on Samsara, it is emphasized that the business is not cheap, highlighting the importance of understanding its valuation [1] - The Marketplace showcases a portfolio of undervalued investment opportunities, focusing on stocks with rapid growth potential driven by high-quality management [1] Group 2 - The investment strategy involves selecting the most attractive stocks, with a focus on delivering strong gains for investors [2] - The Marketplace, named Deep Value Returns, is experiencing rapid growth and is recognized for providing high-quality, actionable stock picks [3] - Member reviews indicate satisfaction with the insights and stock selections provided, reinforcing the value proposition of the Marketplace [3]

Samsara (IOT) Q4 2025 Earnings Call March 07, 2025 12:53 AM ET Company Participants Mike Chang - Vice President of Corporate Development & Investor RelationsSanjit Biswas - Co-Founder and Chief Executive OfficerDominic Phillips - Chief Financial OfficerMatthew Hedberg - Managing Director, Software ResearchArsenije Matovic - Senior Equity Research AssociateMatt Bullock - Equity Research AssociateDavid Unger - Equity ResearchMark Schappel - Managing DirectorCole Erskine - Vice President - Equity Research Conf ...

Samsara Inc. (NYSE:IOT) Q4 2025 Earnings Conference Call March 6, 2025 5:00 PM ET Company Participants Mike Chang - VP of Corporate Development and IR Sanjit Biswas - CEO and Co-Founder Dominic Phillips - CFO Conference Call Participants Matt Hedberg - RBC Jim Fish - Piper Sandler Dylan Becker - William Blair Pete Burkly - Evercore Chris Quintero - Morgan Stanley Matt Bullock - BofA Andrew DeGasperi - BNP Dan Jester - BMO Mark Schappel - Loop Capital Ella Smith - JPMorgan Operator Good afternoon and welcome ...

Core Insights - Samsara Inc. reported quarterly earnings of $0.11 per share, exceeding the Zacks Consensus Estimate of $0.07 per share, and showing an increase from $0.04 per share a year ago, representing an earnings surprise of 57.14% [1] - The company achieved revenues of $346.29 million for the quarter ended January 2025, surpassing the Zacks Consensus Estimate by 3.25% and increasing from $276.27 million year-over-year [2] - Samsara Inc. has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The future performance of Samsara Inc. shares will largely depend on management's commentary during the earnings call and the sustainability of the stock's price movement based on recent earnings and future expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.05 on revenues of $352.17 million, while for the current fiscal year, the estimate is $0.28 on revenues of $1.53 billion [7] Industry Context - The Internet - Software industry, to which Samsara Inc. belongs, is currently ranked in the bottom 46% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests that trends in earnings estimate revisions are strongly correlated with near-term stock movements, which could impact Samsara's stock performance [5][6]

Q4 FY25 Investor Presentation March 6, 2025 Disclaimer and Statement Regarding Use of Non-GAAP Measures This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements may relate to, but are not limited to, expectations of future operating results or financial performance, market size and growth, industry developments and trends, the calculation of certain of our financial and opera ...

Core Insights - Samsara exceeded analysts' estimates and management's guidance in its fiscal fourth-quarter 2025 results, reporting a non-GAAP EPS of $0.11 and revenue of $346.3 million [1][5] Financial Performance - Non-GAAP EPS increased by 175% from $0.04 in the prior year to $0.11 in fiscal Q4 2025 [2][5] - Revenue rose by 25.3% year-over-year, from $276.3 million in fiscal Q4 2024 to $346.3 million in fiscal Q4 2025 [2][5] - Annual recurring revenue reached $1.458 billion, a 32.3% increase from $1.102 billion in the previous year [2][5] - Non-GAAP operating margin improved significantly to 16%, up from 5% a year earlier [2][5] Business Model and Strategy - Samsara specializes in IoT solutions, providing a platform for businesses to utilize data from physical operations through its Connected Operations Cloud [3] - The company focuses on expanding its customer base and increasing annual recurring revenue by onboarding larger clients [3] - Recent efforts include leveraging its data platform for AI-driven solutions and enhancing customer engagement through additional applications [4] Product Development - The Connected Operations Cloud processes over 10 trillion data points annually, enabling businesses to gain real-time operational insights [6] - The number of customers generating over $100,000 in annual recurring revenue grew by 36% year-over-year to 2,506 [6] Future Outlook - For the current quarter, Samsara projects revenue between $350 million and $352 million, with a non-GAAP operating margin of 7% and EPS of $0.05 to $0.06 [8] - For fiscal 2026, the company expects revenue growth of 22% to 23%, a slowdown compared to the 33% growth rate in fiscal 2025 [8]

Financial Performance - Fiscal Year 2025 ended with an Annual Recurring Revenue (ARR) of $1.458 billion, representing a 32% year-over-year growth[3] - Total revenue for Q4 FY2025 was $346.3 million, reflecting a 25% year-over-year growth and a 36% year-over-year adjusted growth[4] - Non-GAAP operating income for FY2025 was $113.6 million, compared to $1.3 million in FY2024, marking a significant improvement[5] - The company reported a GAAP operating loss of $18.4 million in Q4 FY2025, a substantial reduction from a loss of $123.0 million in Q4 FY2024[3] - The number of customers with ARR over $100,000 reached 2,506, indicating a 36% year-over-year growth[4] - For Q1 FY2026, the company expects total revenue between $350 million and $352 million, representing a year-over-year growth of 25%[8] - The FY2026 revenue outlook is projected to be between $1.523 billion and $1.533 billion, with a year-over-year growth of 22% to 23%[8] - Non-GAAP net income per share for FY2026 is expected to be between $0.32 and $0.34[8] Cash Flow and Liquidity - Adjusted free cash flow for FY2025 was $111.5 million, compared to $27.1 million in FY2024, reflecting a strong increase[5] - Free cash flow margin is a critical metric for evaluating liquidity, and the company aims to maintain a positive free cash flow margin despite fluctuations in cash flow[26] - Cash, cash equivalents, and restricted cash at the end of the period totaled $245.79 million, up from $154.74 million at the end of the previous year[38] - Total cash provided by operating activities for the three months ended February 1, 2025, was $53.86 million, a turnaround from cash used in operating activities of $41.88 million in the previous year[38] - For the three months ended February 1, 2025, the company reported free cash flow of $48,512, compared to a negative free cash flow of $(43,973) for the same period last year, indicating a significant improvement[45] - The company’s net cash provided by operating activities for the three months ended February 1, 2025, was $53,859, a substantial increase from $(41,878) in the same quarter last year[45] Profitability Metrics - The company achieved a GAAP gross margin of 76% for FY2025, up from 74% in FY2024[5] - Non-GAAP gross profit for the three months ended February 1, 2025, was $265,986, compared to $207,250 for the same period last year, reflecting a growth of about 28.3%[33] - The company reported a net loss of $11,202 for the three months ended February 1, 2025, significantly improved from a net loss of $113,371 in the same quarter last year[33] - The net loss for the three months ended February 1, 2025, was $11.20 million, a significant improvement from a net loss of $113.37 million in the prior year[38] - Non-GAAP net income for the three months ended February 1, 2025, was $63.14 million, compared to $23.13 million for the same period last year[38] - Non-GAAP operating margin improved to 16% for the three months ended February 1, 2025, compared to 5% in the prior year[38] Expenses and Investments - Research and development expenses for the fiscal year ended February 1, 2025, were $299,716, compared to $258,581 in the previous year, reflecting an increase of approximately 15.9%[33] - Sales and marketing expenses increased to $90,471 for the fiscal year ended February 1, 2025, up from $75,203, representing a 20.3% rise as the company expands its market presence[45] - The total stock-based compensation expense-related charges for the fiscal year ended February 1, 2025, were $298,647, compared to $251,190 in the previous year, showing a 18.8% increase[45] - The company incurred stock-based compensation expense of $69.02 million for the three months ended February 1, 2025, compared to $64.69 million in the same period last year[38] - Research and development expenses for the fiscal year ended February 1, 2025, totaled $107,250, compared to $95,220 in the previous year, indicating a 12.5% increase in investment in innovation[45] Balance Sheet Highlights - Total current assets increased to $1,145,154 as of February 1, 2025, up from $886,958 as of February 3, 2024, marking a growth of approximately 29.2%[30] - Total liabilities rose to $955,106 as of February 1, 2025, compared to $819,698 as of February 3, 2024, indicating an increase of about 16.5%[30] Legal and One-Time Charges - The company recognized a one-time operating expense charge of $0.9 million for litigation in the fiscal year ended February 1, 2025, compared to a $68.7 million charge in the previous year, indicating a significant reduction in legal costs[47] Strategic Focus - The company plans to continue focusing on strategic initiatives to enhance future operating needs and market expansion, although specific new products or technologies were not detailed in the call[28]

Core Insights - Samsara has been recognized with the 2024 North American Company of the Year Award by Frost & Sullivan for its innovative solutions in the commercial vehicle telematics industry [1][3] - The company offers a comprehensive platform that leverages IoT data to enhance safety, efficiency, and sustainability in operations, addressing key industry challenges such as rising fuel costs and driver shortages [1][8] Financial Performance - Samsara's annual recurring revenue (ARR) from its video-based safety and vehicle telematics segments exceeds $500 million each, with an additional $150 million from equipment monitoring, all growing at an impressive 30% year-over-year [2] - The company's installed base has grown approximately 37%, significantly outpacing competitors [2] Market Expansion - 17% of Samsara's net new annual contract value in Q3 FY 2025 originated from international markets, particularly Mexico and Europe, indicating strong international growth [2] - The company opened a new office in Mexico City in 2024 to support its expanding customer base [2] Product Offerings - Samsara's Connected Operations® Cloud includes video-based safety solutions, telematics solutions, asset tracking and monitoring devices, workforce apps, and a cloud-based data-driven platform [4][8] - The platform is noted for its user-friendly interface, allowing customers to easily access real-time data and generate reports [1][2] Brand Recognition - Samsara's brand value has increased due to a multi-faceted marketing approach, including customer events and contributions to industry publications, solidifying its position in fleet and asset management [2] - The company has received recognition from organizations like Great Place To Work® for its commitment to excellence across various regions [2]

Group 1 - Samsara Inc. closed at $54.02, with a slight increase of +0.04%, underperforming the S&P 500's gain of 0.36% on the same day [1] - Over the past month, Samsara Inc. shares have increased by 22.23%, significantly outperforming the Computer and Technology sector's 0% and the S&P 500's 2.11% [1] Group 2 - The upcoming earnings report for Samsara Inc. is scheduled for March 6, 2025, with analysts expecting earnings of $0.07 per share, representing a year-over-year growth of 75% [2] - The Zacks Consensus Estimate for revenue is projected at $335.53 million, indicating a 21.45% increase from the previous year [2] Group 3 - Recent shifts in analyst projections for Samsara Inc. are important for investors, as positive revisions often reflect favorable business trends and profitability outlooks [3] - The Zacks Rank system, which assesses estimate changes, currently ranks Samsara Inc. at 3 (Hold), with the consensus EPS estimate remaining unchanged over the past month [5] Group 4 - Samsara Inc. has a Forward P/E ratio of 194.01, which is significantly higher than the industry average of 31.23, suggesting that the company is trading at a premium [6] - The Internet - Software industry, to which Samsara Inc. belongs, has a Zacks Industry Rank of 73, placing it in the top 30% of over 250 industries [6]