©Reuters. Samsara Inc (IOT) increases profits and sales exceeds
samsara Inc (NYSE:) ended its fiscal year on a strong note, beating Wall Street expectations for the fourth quarter. The company reported adjusted EPS of $0.04, slightly beating the consensus estimate of $0.03. Earnings for the quarter also exceeded expectations, bringing in $276.3 million compared to expectations of $258.29 million.
This performance represents a significant year-over-year revenue increase of 48% or 37% on an adjusted basis. The company's annual recurring revenue (ARR) reached $1.102 billion, an increase of 39% year over year. Additionally, Samsara has seen a 49% year-over-year increase in the number of customers with ARR over $100,000, now totaling 1,848.
Looking ahead, the company's Q1 2025 guidance calls for EPS in the range of $0.00 to $0.01, comfortably above the analyst consensus of -$0.01. Revenue estimates were set at $271 million to $273 million, also above the consensus of $266.8 million. For full-year 2025, Samsara expects adjusted EPS of $0.11 to $0.13, compared to consensus of $0.08, and revenue estimates of $1.186 billion to $1.196 billion, slightly above consensus of $1.18 billion. I'm predicting it.
The stock reacted positively to the news, rising 14.96% as investors reacted to the earnings and sales growth. CEO and co-founder Sanjit Biswas highlighted the company's commitment to efficient operations, pointing to positive adjusted free cash flow in the first year. Mr. Biswas remained optimistic about the future, saying, “We continue to see great opportunities for our customers and are excited to fulfill our mission to make the businesses that power the global economy safer, more efficient, and more sustainable.” “
Samsara's financial performance and forward-looking guidance reflect the company's ability to maintain strong growth while operating efficiently, a balance often difficult to achieve in the technology industry. This announcement highlights the company's momentum and potential for continued expansion in the coming year.
Following this report, TD Cowen raised its price target on IOT to $45 per share from $36 and maintained an Outperform rating on the stock. The company said “Beat and Raise Machine is progressing well” and called the fourth quarter a “best result.”
“IOT achieved a strong fourth quarter with sales growth of 48% in the fourth quarter, well above expectations of 39%, and FY25 sales guidance comfortably exceeded Street,” the company wrote. ing.
Elsewhere, Goldman Sachs reiterated its Buy rating and raised IOT's price target to $44 per share from $39. Analysts said the company's strong performance, highlighted by continued strong growth and a record increase of more than $100,000, meant “there may be upside to initial F25 guidance.” said to mean.
