We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Samsara (IOT - Free Report) reported non-GAAP earnings of 5 cents per share in second-quarter fiscal 2025, beating the Zacks Consensus Estimate of 4 cents. The company registered earnings of 1 cents per share in the year-ago quarter.
Revenues came in at $300 million, up 37% year over year. The figure beat the Zacks Consensus Estimate by 3.75%.
IOT’s shares have gained 16.1% compared with the Zacks Computer and Technology sector’s rise of 15.5% in the year-to-date period.
Considering impressive fiscal second-quarter performance, Samsara initiated a strong fiscal 2025 guidance for revenues and earnings. This is expected to boost share price momentum.
IOT concluded fiscal second quarter with Annual Recurring Revenues (ARR) of $1.26 billion, up 36% year over year. It added 169 customers with more than $100,000 in ARR and a record 14 customers with more than $1 million in ARR, underscoring the increasing adoption of its platform by large enterprises.
The number of customers with ARR surpassing $100,000 reached 2,133 and increased 41% year over year. The average ARR per $100,000-plus customer also increased from $306,000 to $318,000, which is notable.
Samsara’s customer base is increasingly subscribing to multiple applications. In second-quarter fiscal 2025, 94% of its $100,000+ ARR customers subscribed to multiple products, while 59% subscribed to three or more, demonstrating increasing product adoption and customer loyalty.
IoT’s key products, which include Video-Based Safety, Vehicle Telematics and Smart Equipment & Other, showed strong growth in the fiscal second quarter.
Both Video-Based Safety and Vehicle Telematics, Samsara’s vehicle-based applications, each represent over $500 million in ARR. In comparison, the Equipment Monitoring and other emerging products account for over $150 million in ARR. Each of these categories continued to grow more than 30% year-over-year.
The expansion of IoT into international markets has been a key catalyst. This led to a quarterly record, with 16% of new Annual Contract Value (ACV) generated from international regions, particularly due to strong performance in Europe.
IOT’s Operating Details
In the reported quarter, non-GAAP gross profit rose 41% year over year to $230.8 million. The gross margin expanded 220 basis points to 77%.
Total operating expenses increased 25.7% year over year to $213.22 million, mainly due to higher research and development (up 23.4% year over year), sales and marketing (up 29.9% year over year) and general and administrative costs (rising 15.3% year over year).
Operating income was $17.6 million against an operating loss of $5.9 million reported in the year-ago quarter.
IOT’s Balance Sheet & Cash Flow Details
As of Aug. 3, 2024, cash and cash equivalents were $160 million compared with $163 million as of May 4, 2024.
In the fiscal second quarter, cash provided by operating activities was $18.1 million compared with the prior quarter's cash usage of $7.7 million.
Adjusted free cash flow was $13.1 million compared with $4.7 million reported in the previous quarter. Adjusted free cash flow margin for the fiscal second quarter was 4%.
IOT Raises Fiscal 2025 Guidance
For the third quarter of fiscal 2025, Samsara expects revenues between $309 million and $311 million, representing 30-31% year-over-year growth.
The non-GAAP operating margin is anticipated to be 4%.
Non-GAAP earnings for the fiscal third quarter are expected to be between 3 and 4 cents per share.
For fiscal 2025, Samsara expects revenues between $1.224 billion and $1.228 billion, representing 33-34% year-over-year growth.
The non-GAAP operating margin is anticipated to be 5%.
Non-GAAP earnings for the fiscal 2025 are expected to be between 16 and 18 cents per share.
Zacks Rank & Stocks to Consider
Currently, Samsara has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are AudioEye (AEYE - Free Report) , Aspen Technology and Badger Meter (BMI - Free Report) . AudioEye and Aspen Technology currently sports Zacks Rank #1 (Strong Buy) at present whereas Badger Meter carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Audioeye shares have gained 285.2% in the year-to-date period. The long-term earnings growth rate for AEYE is pegged at 25%.
Aspen Technology shares have gained 3.8% in the year-to-date period. The long-term earnings growth rate for AZPN is currently projected at 13.12%.
Badger Meter shares have gained 24.6% in the year-to-date period. The long-term earnings growth rate for BMI is currently projected at 17.91%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
IOT's Q2 Earnings Beat Estimates: Will Higher '25 View Lift Shares?
Samsara (IOT - Free Report) reported non-GAAP earnings of 5 cents per share in second-quarter fiscal 2025, beating the Zacks Consensus Estimate of 4 cents. The company registered earnings of 1 cents per share in the year-ago quarter.
Revenues came in at $300 million, up 37% year over year. The figure beat the Zacks Consensus Estimate by 3.75%.
IOT’s shares have gained 16.1% compared with the Zacks Computer and Technology sector’s rise of 15.5% in the year-to-date period.
Considering impressive fiscal second-quarter performance, Samsara initiated a strong fiscal 2025 guidance for revenues and earnings. This is expected to boost share price momentum.
Samsara Inc. Price, Consensus and EPS Surprise
Samsara Inc. price-consensus-eps-surprise-chart | Samsara Inc. Quote
IOT’s Q2 Top-Line Details
IOT concluded fiscal second quarter with Annual Recurring Revenues (ARR) of $1.26 billion, up 36% year over year. It added 169 customers with more than $100,000 in ARR and a record 14 customers with more than $1 million in ARR, underscoring the increasing adoption of its platform by large enterprises.
The number of customers with ARR surpassing $100,000 reached 2,133 and increased 41% year over year. The average ARR per $100,000-plus customer also increased from $306,000 to $318,000, which is notable.
Samsara’s customer base is increasingly subscribing to multiple applications. In second-quarter fiscal 2025, 94% of its $100,000+ ARR customers subscribed to multiple products, while 59% subscribed to three or more, demonstrating increasing product adoption and customer loyalty.
IoT’s key products, which include Video-Based Safety, Vehicle Telematics and Smart Equipment & Other, showed strong growth in the fiscal second quarter.
Both Video-Based Safety and Vehicle Telematics, Samsara’s vehicle-based applications, each represent over $500 million in ARR. In comparison, the Equipment Monitoring and other emerging products account for over $150 million in ARR. Each of these categories continued to grow more than 30% year-over-year.
The expansion of IoT into international markets has been a key catalyst. This led to a quarterly record, with 16% of new Annual Contract Value (ACV) generated from international regions, particularly due to strong performance in Europe.
IOT’s Operating Details
In the reported quarter, non-GAAP gross profit rose 41% year over year to $230.8 million. The gross margin expanded 220 basis points to 77%.
Total operating expenses increased 25.7% year over year to $213.22 million, mainly due to higher research and development (up 23.4% year over year), sales and marketing (up 29.9% year over year) and general and administrative costs (rising 15.3% year over year).
Operating income was $17.6 million against an operating loss of $5.9 million reported in the year-ago quarter.
IOT’s Balance Sheet & Cash Flow Details
As of Aug. 3, 2024, cash and cash equivalents were $160 million compared with $163 million as of May 4, 2024.
In the fiscal second quarter, cash provided by operating activities was $18.1 million compared with the prior quarter's cash usage of $7.7 million.
Adjusted free cash flow was $13.1 million compared with $4.7 million reported in the previous quarter. Adjusted free cash flow margin for the fiscal second quarter was 4%.
IOT Raises Fiscal 2025 Guidance
For the third quarter of fiscal 2025, Samsara expects revenues between $309 million and $311 million, representing 30-31% year-over-year growth.
The non-GAAP operating margin is anticipated to be 4%.
Non-GAAP earnings for the fiscal third quarter are expected to be between 3 and 4 cents per share.
For fiscal 2025, Samsara expects revenues between $1.224 billion and $1.228 billion, representing 33-34% year-over-year growth.
The non-GAAP operating margin is anticipated to be 5%.
Non-GAAP earnings for the fiscal 2025 are expected to be between 16 and 18 cents per share.
Zacks Rank & Stocks to Consider
Currently, Samsara has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are AudioEye (AEYE - Free Report) , Aspen Technology and Badger Meter (BMI - Free Report) . AudioEye and Aspen Technology currently sports Zacks Rank #1 (Strong Buy) at present whereas Badger Meter carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Audioeye shares have gained 285.2% in the year-to-date period. The long-term earnings growth rate for AEYE is pegged at 25%.
Aspen Technology shares have gained 3.8% in the year-to-date period. The long-term earnings growth rate for AZPN is currently projected at 13.12%.
Badger Meter shares have gained 24.6% in the year-to-date period. The long-term earnings growth rate for BMI is currently projected at 17.91%.