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IOT's Q2 Earnings Beat Estimates: Will Higher '25 View Lift Shares?
Samsara Samsara (US:IOT) ZACKSยท2024-09-06 16:46

Core Insights - Samsara reported non-GAAP earnings of 5 cents per share for Q2 fiscal 2025, exceeding the Zacks Consensus Estimate of 4 cents, and up from 1 cent per share in the same quarter last year [1] - Revenues reached $300 million, reflecting a 37% year-over-year increase, and surpassed the Zacks Consensus Estimate by 3.75% [1] - The company's shares have increased by 16.1% year-to-date, outperforming the Zacks Computer and Technology sector's growth of 15.5% [1] Financial Performance - Annual Recurring Revenues (ARR) stood at $1.26 billion, a 36% increase year-over-year, with 169 new customers contributing over $100,000 in ARR and a record 14 customers exceeding $1 million in ARR [3] - The number of customers with ARR over $100,000 reached 2,133, marking a 41% year-over-year growth, with the average ARR per customer increasing from $306,000 to $318,000 [4] - Non-GAAP gross profit rose 41% year-over-year to $230.8 million, with gross margin expanding by 220 basis points to 77% [7] - Operating income was reported at $17.6 million, a significant improvement from an operating loss of $5.9 million in the previous year [8] Product and Market Expansion - Key products such as Video-Based Safety and Vehicle Telematics each generated over $500 million in ARR, while Equipment Monitoring and other emerging products accounted for over $150 million in ARR, all growing more than 30% year-over-year [5] - International market expansion contributed to 16% of new Annual Contract Value (ACV), particularly strong in Europe [6] Guidance and Future Outlook - For Q3 fiscal 2025, Samsara anticipates revenues between $309 million and $311 million, indicating a year-over-year growth of 30-31% [11] - The company expects non-GAAP earnings for Q3 to be between 3 and 4 cents per share, and for fiscal 2025, revenues are projected between $1.224 billion and $1.228 billion, representing 33-34% year-over-year growth [11][12]