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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.
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 (AZPN - Free Report) 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%.