Samsara (IOT) Delivers Its First Quarter of Profitability

"Samsara delivered a milestone quarter after the close on Dec. 4, reporting its first period of GAAP profitability alongside strong revenue and earnings beats. The company posted $416.0 million in revenue versus $402.5 million expected, while non-GAAP EPS of $0.16 crushed the $0.12 consensus by 33%. Revenue climbed 29% year over year, driven by enterprise customer growth and deeper penetration into large-scale operations. I thought the GAAP profitability achievement was the real story here."

"Samsara added 219 customers with annual recurring revenue over $100,000 during the quarter, a company record. That's the kind of customer growth that matters. Larger accounts drive higher retention, better unit economics, and more predictable cash flow. ARR reached $1.745 billion, up 29% year over year, showing the company is winning with complex physical operations organizations. CEO Sanjit Biswas said momentum came from "partnership with some of the world's largest and most complex physical operations organizations," and the numbers back that up."

"Q4 guidance came in at $421 million to $423 million in revenue, roughly in line with where the Street expected the company to land. Non-GAAP EPS guidance of $0.12 to $0.13 suggests management is staying disciplined on spending even as growth accelerates. The only thing I'd keep an eye on is foreign currency fluctuations. Management flagged FX as a potential headwind, though it hasn't materially impacted results yet."

Samsara reported its first GAAP profitable quarter with $416.0 million in revenue, beating expectations and delivering non-GAAP EPS of $0.16 versus $0.12 consensus. Revenue rose 29% year over year and ARR reached $1.745 billion, driven by a record 219 customers with ARR over $100,000. Gross profit was $319 million with a 76.7% margin, maintaining margins above 76% for four straight quarters. AI integration is beginning to enhance customer workflows and stickiness. Management issued Q4 revenue guidance of $421–423 million and non-GAAP EPS guidance of $0.12–0.13 while flagging foreign-currency fluctuations as a potential headwind.

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