Samsara Earnings Top Estimates On Big Spending Customers

Samsara's Q2 earnings and revenue surpassed Wall Street expectations, with its revenue outlook also slightly exceeding predictions.

Samsara (IOT) shares soared on Friday following second-quarter results that exceeded Wall Street's expectations, and the company's revenue forecast for IOT stock was slightly higher than anticipated.

The company announced its earnings after the market closed on Thursday. On the stock market today, IOT stock leaped 13.1% to close at 30.93.

For the quarter ending July 29, Samsara, based in San Francisco, reported a profit of 1 cent per share on an adjusted basis, compared to a loss of 4 cents a year earlier. Revenue, on the other hand, increased by 43% to $219.3 million, according to the company.

Samsara was predicted by analysts to report a 2-cent loss on sales of $207.5 million. Annual recurring revenue from subscriptions increased by 40% to $930 million, surpassing estimates of $910.3 million.

Samsara also marked its first positive quarter in adjusted free cash flow.

Derrick Wood, an IOT stock analyst at TD Cowen, stated that high-spending customers fueled growth during the quarter.

"Quarterly strength was primarily driven by continued momentum in the $100,000-plus (spending) cohort, including 140 net new $100,000-plus customers, the best on record and up 52% year-over-year," Wood noted in a client memo.

Samsara anticipates revenue of $224 million at the midpoint of its outlook for the current quarter. Samsara stock analysts had predicted revenue of $220.4 million.

Prior to the Samsara earnings report, the company had a Relative Strength Rating of 98 out of a possible 99, according to IBD Stock Checkup. Additionally, IOT stock had established a double-bottom base.

Samsara, founded in 2015, offers sensors and cloud-based software for managing vehicle fleets and industrial operations. Its Internet of Things platform also provides global positioning tracking for trucks and monitors routes and vehicle performance.

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