$49.42 +1.82 (+3.82%) (As of 09/20/2024 ET)
- 52-Week Range
- $21.48
▼
$49.56 - Price Target
- $42.07
Samsara Inc. NYSE: IOT is a leading industrial Internet of Things (IoT) provider offering hardware, software, and cloud platforms complete with data analysis tools as a one-stop shop. Samsara caters to a number of industries ranging from construction, logistics, utilities, field services, education, transportation fleet management, and government agencies. Samsara utilizes artificial intelligence (AI)-powered tools to improve product performance, automate tasks, generate insights, and boost customer satisfaction. Despite a solid fiscal Q1 2025 earnings report, shares still plummeted 12%, possibly providing an entry opportunity for interested investors.
Samsara operates in the computer and technology sector, competing with IoT providers like Impinj Inc. NASDAQ: PI, Trimble Inc. NASDAQ: TRMB, Alphabet Inc. NASDAQ: GOOGL Google Cloud IoT, and Microsoft Co. NASDAQ: MSFT Azure IoT.
What is the Internet of Things (IoT)?
The IoT is a network of connected devices that exchange real-time data with each other over the Internet without human intervention. IoT devices usually have sensors and a unique identifier (UID). The connected devices can range from industrial tools, cameras, smart appliances, vehicles, and smart beds to lights, robots, accessories, wearables, and thermostats. Massive amounts of data can be collected and analyzed to spot trends and patterns and derive valuable, actionable insights optimized with AI. Samsara provides asset tracking systems used in the transportation industry and fleet management.
IoT is Caught in a Descending Triangle Pattern
The daily candlestick chart on IOT illustrates a descending triangle pattern. The descending trendline commenced at $42.28 on May 15, 2024. IOT continued to make lower highs on bounce attempts, falling to the flat-bottom support lower trendline at $29.70 on its fiscal Q1 2025 earnings release. The daily relative strength index (RSI) has fallen below the oversold 30-band level. Pullback support levels are at $29.70, $27.65, $25.42, and $21.89.
Samsara reported fiscal Q1 2025 EPS of 3 cents, beating consensus estimates by 2 cents. Revenues surged 37.4% YoY to $280.7 million, beating $272.42 million consensus estimates as well. Annual recurring revenues (ARR) popped 37% to $1.18 billion. Customers generating over $100,000 in ARR surged 43% YoY to 1,964.
Comparing Samsara's Guidance with Consensus Estimates
Samsara provided conservative fiscal Q2 2025 EPS guidance of flat to a penny versus consensus estimates of a penny. Revenues are expected to be between $288 million and $290 million versus $287.25 million. For fiscal full year 2025, Samara expects EPS of 13 cents to 15 cents versus consensus estimates of 12 cents. Full-year 2025 revenues are expected to be between $1.205 billion and $1.213 billion versus the consensus estimates of $1.2 billion.
Samsara CEO Sanjit Biswas on Large Customer Momentum
Samsara CEO Sanjit Biswas noted that large customer momentum is fueling its growth. In the last quarter, the company closed deals with the Department of Transportation for Kansas and Iowa. Fortune 500 company VINCI is a new construction company client with over 275,000 employees.
Biswas visited many of the company's largest customers in the United States, Canada, Mexico, and Europe to gain firsthand insights into their operations. He noticed these customers were operating at a scale in asset-heavy and labor-intensive industries. These customers are using legacy point solutions that have trapped data in silos. These customers faced common challenges, including workplace accidents, maintenance, insurance, and fuel savings. Customers across the board are investing in technology to achieve safer, sustainable, and more efficient operations.
Samsara's Impact on Company-Wide Savings
Around 130 of Samsara's customers were surveyed to assess the value of their platform. The results were published in a white paper titled "The Business Value of Samsara." One of its customers was quoted saying, "Every minute of efficiency gained is significant. Samsara is our most utilized company-wide business system and is responsible for millions in savings in our bottom line."
$2 Million of Savings Per Customer and Over 8x ROI
Biswas commented, “Looking more specifically at the findings, IDC estimated that Samsara customers realized more than an 8x ROI on average, representing $2 million of savings per customer per year. Samsara customers achieved these savings by reducing vehicle-related crashes and insurance costs, spending less on fuel, lowering maintenance costs and extending vehicle life spans, minimizing lost revenue associated with vehicle availability, and increasing driver productivity.”
Samsara analyst ratings and price targets are on MarketBeat.
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