Samsara Exceeds Q4 Expectations, Showcases AI-Driven Growth in IoT Solutions

Samsara Tops Expectations in Fiscal Q4 | The Motley Fool

The Internet of Things specialist exceeded analysts' estimates and management's guidance. Samsara (IOT -3.92%), a leader in Internet of Things (IoT) solutions, released its fiscal fourth-quarter 2025 results on March 6. Its non-GAAP EPS of $0.11 outperformed analysts' estimates of $0.07 and management's guidance range of $0.07 to $0.08. Revenue was strong at $346.3 million, exceeding Wall Street's expectations of $335 million, which were in line with guidance. Source: Analysts' estimates provided by FactSet. Samsara specializes in IoT solutions, providing a platform for businesses to harness data from physical operations. Its Connected Operations Cloud processes massive data sets, offering actionable insights to enhance efficiency, safety, and sustainability. The company is focused on expanding its customer base and increasing its annual recurring revenue by onboarding larger clients. Key factors driving its success include its continuous product innovation and extensive ecosystem integration with over 270 third-party systems. Recently, Samsara has concentrated on leveraging its data platform to offer AI-driven solutions, further reinforcing its value proposition. By focusing on enhancing customer engagement through additional applications and simplifying the integration process with third-party systems, Samsara is sustaining its competitive edge. During its fiscal Q4, which ended Feb. 1, Samsara reported notable improvements in its financial metrics. Non-GAAP EPS was $0.11 compared to $0.04 in the prior-year period. Revenue rose 25.3% to $346.3 million, and the non-GAAP operating margin significantly improved to 16% from just 5% a year earlier. From a product perspective, Samsara continued advancing its Connected Operations Cloud, which processes more than 10 trillion data points annually. These advancements enable businesses to leverage real-time data for operational insights, increasing their productivity and sustainability. The number of Samsara customers generating over $100,000 in annual recurring revenue for the company grew by 36% year over year to 2,506. Management pointed out that its integrated ecosystem, while comprehensive, requires meticulous management due to the complexities it introduces. Still, product innovations and AI capabilities are key differentiators that enhance customer outcomes significantly. For its current quarter, Samsara projects revenue between $350 million and $352 million, a non-GAAP operating margin of 7%, and EPS of $0.05 to $0.06. For fiscal 2026, it expects revenue growth of 22% to 23%, a slower pace than its 33% growth rate from fiscal 2025.

Samsara shares dip despite topping fourth quarter earnings and revenue estimates - SiliconANGLE

Samsara shares dip despite topping fourth quarter earnings and revenue estimates Shares in Samsara Inc. were down in late trading today despite the Internet of Things cloud platform provider reporting earnings and revenue beats in its fiscal 2025 fourth quarter. For the quarter that ended on Feb. 1, Samsara reported adjusted earnings per share of 11 cents, up from four cents per share in the same quarter of the previous fiscal year, on revenue of $346.3 million, up 36% year-over-year. Both figures were ahead of the seven cents per share and revenue of $335.35 million expected by analysts. For its full fiscal year, Samsara reported adjusted earnings per share of 26 cents, up from seven cents per share the year prior, on revenue of $1.46 billion, up 32% year-over-year. Samsara ended its fiscal quarter and year with $1.45 billion in annual recurring revenue, up 32% year-over-year, 2,506 customers with over $100,000 in annual recurring revenue, up 36% year-over-year and the company had $11 million adjusted free cash flow through the year, up 9%. Business highlights in the quarter included the October launch of Asset Tags, a feature that expanded Samsara's tracking capabilities to cover non-powered and smaller assets. The offering extends visibility beyond vehicles, helping industrial customers monitor a wider range of critical equipment. In November, Samsara introduced several new safety and efficiency features at its Go Beyond '24 conference. Key announcements included Connected Training for ongoing driver education, Low Bridge Strike Alerting to prevent collisions and Electronic Brake Performance Monitoring to ensure braking systems remain within safe operating standards. The company also rolled out Privacy Mode as part of its Video-Based Safety solution, allowing fleets to disable video recording while still enabling real-time AI safety alerts. In December, Samsara launched Samsara Intelligence, an expanded artificial intelligence suite designed to help customers discover insights, automate tasks and make smarter decisions. The offering includes tools such as Samsara Assistant for instant answers to operational questions and Intelligent Experiences that deliver proactive recommendations across the platform. "We're operating at a rare combination of growth, scale and profitability, and we see a large market opportunity ahead of us," said Sanjit Biswas, chief executive officer and co-founder of Samsara, in the company's earnings release. "We're partnering with some of the world's largest and most complex operations organizations to transform how the world operates." For its fiscal 2026 first quarter, Samsara expects adjusted earnings per share of five cents to six cents on revenue of $350 million to $352 million. The figures were roughly in line with analysts who were expecting five cents and $351.3 million. For its full fiscal year, the company expects adjusted earnings per share of 32 cents to 34 cents on revenue of $1.523 billion to $1.533 billion. Analysts had expected 28 cents and $1.528 billion.

Samsara sees shares dip despite topping earnings and revenue estimates - SiliconANGLE

Samsara sees shares dip despite topping earnings and revenue estimates Shares in Samsara Inc. were down in late trading today despite the Internet of Things cloud platform provider reporting earnings and revenue beats in its fiscal 2025 fourth quarter. For the quarter that ended on Feb. 1, Samsara reported adjusted earnings per share of 11 cents, up from four cents per share in the same quarter of the previous fiscal year, on revenue of $346.3 million, up 36% year-over-year. Both figures were ahead of the seven cents per share and revenue of $335.35 million expected by analysts. For its full fiscal year, Samsara reported adjusted earnings per share of 26 cents, up from seven cents per share the year prior, on revenue of $1.46 billion, up 32% year-over-year. Samsara ended its fiscal quarter and year with $1.45 billion in annual recurring revenue, up 32% year-over-year, 2,506 customers with over $100,000 in annual recurring revenue, up 36% year-over-year and the company had $11 million adjusted free cash flow through the year, up 9%. Business highlights in the quarter included the October launch of Asset Tags, a feature that expanded Samsara's tracking capabilities to cover non-powered and smaller assets. The offering extends visibility beyond vehicles, helping industrial customers monitor a wider range of critical equipment. In November, Samsara introduced several new safety and efficiency features at its Go Beyond '24 conference. Key announcements included Connected Training for ongoing driver education, Low Bridge Strike Alerting to prevent collisions and Electronic Brake Performance Monitoring to ensure braking systems remain within safe operating standards. The company also rolled out Privacy Mode as part of its Video-Based Safety solution, allowing fleets to disable video recording while still enabling real-time AI safety alerts. In December, Samsara launched Samsara Intelligence, an expanded artificial intelligence suite designed to help customers discover insights, automate tasks and make smarter decisions. The offering includes tools such as Samsara Assistant for instant answers to operational questions and Intelligent Experiences that deliver proactive recommendations across the platform. "We're operating at a rare combination of growth, scale and profitability, and we see a large market opportunity ahead of us," said Sanjit Biswas, chief executive officer and co-founder of Samsara, in the company's earnings release. "We're partnering with some of the world's largest and most complex operations organizations to transform how the world operates." For its fiscal 2026 first quarter, Samsara expects adjusted earnings per share of five cents to six cents on revenue of $350 million to $352 million. The figures were roughly in line with analysts who were expecting five cents and $351.3 million. For its full fiscal year, the company expects adjusted earnings per share of 32 cents to 34 cents on revenue of $1.523 billion to $1.533 billion. Analysts had expected 28 cents and $1.528 billion.

Samsara Full Year 2025 earnings indicate a combination of 'growth, scale and profitability' as enterprise deals soar

Connected Operations platform provider Samsara this week reported its fiscal year 2025 earnings and it appears its strategy of using sensors, data and AI to improve the efficiency and safety of the 'physical world' appears to be resonating with buyers. It ended the year with $1.46 billion in annual recurring revenue (ARR), representing 32% year-over-year growth, and the company added 203 customers with more than $100,000 in ARR in Q4, up 36% on this time last year - a key metric for sustainable growth. Speaking on the earnings call, CEO Sanjit Biswas spoke about the company's market position: We are operating at a combination of growth, scale, and profitability. Our momentum reflects the strength of our platform and the large market opportunity ahead of us. The earnings released this week highlight Samsara's continued drive towards stronger enterprise account acquisition, with the company increasing its $1 million plus ARR customer count by 14 in Q4, tying its previous quarterly record. Biswas noted the potential impact on revenues of these over time: We're now landing large enterprise customers that could become $10 million plus ARR customers over time at a faster rate. These larger customers typically have more complex sales cycles that often span several years and are less predictable. We're proud to partner with our customers to transform how the world runs. We're just getting started and are excited for what we can accomplish together in the decades to come. The quarter saw Samsara acquire several enterprise customers, including one of the top three telecommunication companies globally, one of the top three LTL carriers in the US, Bimbo Bakeries (the largest commercial baking company in the US), and Swissport, a global aviation services provider. Biswas said: We're landing these customers with initial footholds that can lead to years of future expansions that drive durable growth. Biswas highlighted the volume of operational data processed on its platform as a key factor in the company's potential for future growth. During FY25, the company processed over 14 trillion data points annually, reflecting more than 50% year-over-year growth. The platform also handled more than 120 billion API calls last year, growing 50% year-over-year. This volume of data processing is likely only going to increase in the coming years, following the introduction of Samsara's new Asset Tag product, which is aimed at organizations that may want to track and manage smaller, but high value assets. The device, which is approximately the size of half a small chocolate bar, has a battery life of four years and uses 'supercharged Bluetooth' capabilities, which connect to the Samsara Network (an industrial network that is enabled by Samsara's existing connected devices on the ground - the Asset Tags essentially pick up signal from other Samsara gateway devices nearby). Samsara says that the devices offer increased visibility into the location of equipment and tools, allowing organizations to minimize downtime spent searching for lost or stolen items, reduce associate costs, and simplify inventory management. Industries such as transportation, oil and gas, and construction rely on expensive tools and assets that often end up lost or stolen due to manual processes, which Samsara says can cost millions of dollars a year. This data accumulation positions Samsara to develop new AI applications. Biswas hinted: We are entering a new age of intelligence. In just the last two years, AI has become 100 times less expensive. It's more widely available than ever before, and will become significantly more abundant. This means that over time, we'll be able to apply it everywhere. The company reports that customers are utilizing AI on the platform for maintenance, training, and detecting behaviors like drowsiness. Building on the Samsara Intelligence announcement from Q3, which included the Samsara Assistant and Intelligent Experiences, the company anticipates further AI integration into customer operations - particularly to help customers take on market challenges: By automating these tasks, AI will help fill labor shortages and skills gaps in operations. According to Samsara, the platform helped prevent 250,000 accidents, digitized 300 million workflows, and contributed to saving more than 3 billion pounds of CO2. One customer example highlighted by Biswas was a North American do-it-yourself moving and storage operator with nearly 200,000 trucks, 140,000 trailers, and 250,000 portable storage boxes. After implementation, Samsara reports that the company recorded an estimated $1 million in savings across safety, idling, and maintenance costs. The customer saw a 61% reduction in safety events, an 82% reduction in distracted driving events, and a 47% reduction in harsh driving events. Biswas identified a number of factors that he believes will influence Samsara's future growth potential. Firstly, market digitization remains in early stages, according to the CEO, with Biswas stating that less than half of North American commercial vehicles currently use telematics, and only approximately 10% use safety products. Second, as already noted, the company is increasing its focus on enterprise customers through targeted go-to-market strategies and expansion of enterprise sales capacity. Third, Samsara reports that 62% of its large customers use three or more products, up from 58% one year ago and 54% two years ago, creating additional expansion opportunities. Biswas concluded: It's been an exciting quarter and year to deliver on our mission to increase the safety, efficiency and sustainability of the operations that power the global economy. We're grateful to partner with our customers as they modernize our operations. Samsara continues to demonstrate market traction with its IoT and connected operations platform, which diginomica has highlighted as an area where many technology vendors have struggled to scale. The operational data that Samsara has accumulated could provide a foundation for a wide variety of AI applications in physical operations. Samsara has slowly, and cogently, been building the different pieces that are required and has been proving value to buyers so that it can continue to expand on its opportunity. As industries address labor shortages and operational efficiency requirements, Samsara's ability to improve safety and efficiency metrics will likely continue to be appealing. The upcoming product announcements at the company's Beyond conference - which diginomica will be attending - will hopefully showcase a forward thinking strategy to how the scale of the data on its platform could be utilized.