Samsara's Q3 2025 Results: Strong Growth in IoT and AI-Powered Solutions for Connected Operations

IoT cloud platform provider Samsara sees revenue growth, shares slide on fourth quarter guidance - SiliconANGLE

IoT cloud platform provider Samsara sees revenue growth, shares slide on fourth quarter guidance Shares in Samsara Inc. were down nearly 10% in late trading today after the Internet of Things cloud platform provider reported fiscal 2025 third-quarter earnings and revenue beats but fell short of expectations on its revenue outlook for the fourth quarter. For the quarter that ended on Nov. 2, Samsara reported adjusted earnings per share of seven cents, up from four cents per share in the same quarter of the previous year, on revenue of $322 million, up 36% year-over-year. Both figures were ahead of the four cents per share and revenue of $310.57 million expected by analysts. Samsara's strong figures were driven by customer growth. The company added over 1,000 core customers in the quarter and also saw its number of customers with annual recurring revenue of $100,000 or more grow to 2,303 as of the end of the quarter, up from 1,663 as of the same time last year. Samsara ended the quarter with $1.349 billion in annual recurring revenue, up 35% year-over-year. Business highlights in the quarter included Samsara launching artificial intelligence-powered Drowsiness Detection in October. The feature users advanced AI models, trained on over 38 billion minutes of video footage, to monitor indicators such as head nodding, prolonged eye closure, yawning and face-rubbing. Upon detecting signs of drowsiness, the service issues real-time in-cab audio alerts to drivers and notifies fleet managers via text or email, enabling immediate intervention to enhance road safety. In September, Samsara announced an integration with Esri's ArcGIS Velocity, a software-as-a-service IoT application for processing and analyzing real-time data. The collaboration allows public sector fleets to overlay Samsara's telematics data - including vehicle location, utilization and maintenance - onto Esri's mapping platform to provide real-time visibility and improve decision-making processes for government agencies. Additionally, Samsara expanded its asset management solutions with the introduction of Asset Tag, a compact, ruggedized device that is designed to track non-powered assets such as toolboxes, containers and equipment. Asset Tag uses Bluetooth to provide near real-time location data through the Samsara network to help businesses prevent loss, recover stolen assets and streamline inventory management. "We achieved another strong quarter of durable and efficient growth at a greater scale," Sanjit Biswas, chief executive officer and co-founder of Samsara, said in the company's earnings release. "We ended Q3 at $1.35 billion in ARR, growing 35% year-over-year, and achieved a quarterly record of 10% adjusted free cash flow margin." For its fiscal fourth quarter, Samara expects adjusted earnings per share of seven cents to eight cents on revenue of $334 million to $336 million. At the midpoint, the revenue outlook was short of the $335.8 million expected by analysts. While the miss wasn't huge, the weak guidance was enough to spook investors. For the full fiscal year, the company expects adjusted earnings per share of 22 cents to 23 cents on revenue of $1.237 billion to $1.239 billion.

Samsara raises full-year guidance as large customers continue to buy into connected operations

Connected Operations vendor Samsara has delivered another strong set of quarterly earnings, beating analyst expectations and raising its full-year guidance. For its Q3 2025 results, Samsara also saw its customers paying more than $100,000 in ARR jump by 38% year-over-year - a strong indicator of sustained enterprise growth. Commenting on the numbers, CEO Sanjit Biswas said: In Q3, we added 170 customers with more than $100,000 in ARR, our second highest quarterly additions ever. This includes major customer wins with large organizations like Papa Johns, the world's third largest pizza delivery company, a Fortune 500 confectionery, food and beverage company and a Fortune 1000 network of full-service medical equipment companies. As we continue to grow, we are excited about the innovation that we're unlocking with more scale. This includes better AI models and benchmarking, stronger customer feedback loops to better understand our customers' challenges, and more R&D dollars to invest in technology. Our customers provide the mission-critical infrastructure that keeps the world running. They have asset-heavy and labor-intensive operations. We are partnering with them to digitally transform their organizations. Our growing data asset feeds our AI-powered platform, which delivers insights to our customer so they can improve their operations. This translates to clear and fast ROI with payback periods often measured in months. Samsara's Connected Operations Cloud uses sensor and camera technology, combined with data analytics, AI and workflows, to help organizations with large physical assets and operations optimize how they run their business, as well as improve safety and sustainability. At the company's user event in Chicago in June, Samsara announced the introduction of its new Asset Tag product, which is aimed at organizations that may want to track and manage smaller, but high value assets. The new 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. The key numbers for Q3 2025 include: Biswas said during the earnings call that a recent IDC survey estimated that Samsara customers realize $2 million of savings on average per year, which equates to more than 8x ROI. The CEO took the opportunity to highlight some customer examples during the call, first of which was from Fortune 1000 company Comfort Systems. Comfort Systems provides heating, ventilation, air conditioning and electrical contracting services, with its operations spanning over 170 locations with over 40 operating units and over 18,000 employees. Biswas said: Comfort Systems prioritizes safety as a core value and is committed to a zero-harm work environment. With Samsara, they achieved an 85% reduction in vehicle safety events and a 72% reduction in speeding in just six months. They are now a top 25 customer and have had nine expansions since becoming a customer in 2022. In Q3, they added Asset Tags and expanded with more of Samsara's video-based safety, telematics and equipment monitoring. They're using Asset Tags to track high-value, smaller equipment on job sites like scissor lifts, welders and pipe machines. They're also using Asset Tags to improve their asset utilization. He also highlighted an unnamed Fortune 500 global company that provides water, hygiene and infection prevention solutions and services. Biswas said that the company has 48,000 employees and 11,000 light-duty vehicles that support nearly three million customer locations worldwide: They became a customer in 2021 and have had 11 expansions with us. They're using our video-based safety and telematics applications across two of their divisions. We've also identified additional expansion opportunities in five more divisions. They have decreased harsh driving events by 37% using Samsara's video-based safety application. In a pilot this year, they also reduced severe speeding by 48% and decreased Forward Collision Warning events by 50% with in-cab alerts. diginomica has previously highlighted that Samsara is one of the few vendors in the market to successfully implement IoT-based solutions, via its sensor and AI technologies. The company processes more than 10 trillion data points annually. Given the hype in the market surrounding AI adoption, it's worth noting that Samsara has had enterprise customers using its AI models for some time. Speaking to the AI opportunity, Biswas highlighted the company's recent Samsara Intelligence announcement: To bring more AI to our customers, we announced Samsara Intelligence earlier this week. It is an expanded suite of AI offerings that helps teams make smarter decisions and run safer, more efficient operations. Samsara Intelligence is trained on our expansive data set, which has great scale and breadth. Our customers face tough challenges, and our AI models use this data to help them solve real-world use cases. Samsara Intelligence includes Samsara Assistant and Intelligent Experiences. Samsara Assistant is an interactive generative AI tool that provides instant answers to their operational questions. It improves the safety, maintenance and compliance of our customers' operations. Some examples include identifying vehicles with severe fault codes and receiving step-by-step instructions to resolve them. Spotting time-sensitive disruptions in daily operations like unexpected stops, which might signal a driver is at risk or in need of assistance. Determining the safest drivers and recognizing them for their performance and understanding hours of service regulatory requirements for a new geography or customer type. Intelligent Experiences embeds AI recommendations and actions throughout the Samsara platform. It makes AI accessible to the frontline by providing visual, training and coaching intelligence. For example, frontline workers can identify safety hazards from a photo on a job site. They can also provide proof of delivery records from a photo of a bill of lading. Operators can also improve their safety and compliance while reducing administrative time by creating a custom worker training module just by uploading a policy document. Both Samsara Assistant and Intelligent Experiences are now available in beta to customers in North America. Biswas said that the products will be generally available after running customer feedback. Another very solid quarter for Samsara - a company that has real-world examples of AI in practice. And given the scale of the data points the vendor is processing, it's still early days in terms of what is possible for the company and its customers. If it can continue to execute, I believe there is still plenty of opportunity ahead.