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Samsara (IOT) Benefits From Expanding Clientele, Partner Base

Samsara IOT is benefiting from an expanding clientele and strong partner base. The company’s shares have returned 178.3% compared with the Zacks Computer & Technology sector’s return of 45.5%.

Samsara’s momentum in customer acquisition during the fiscal third quarter is evident as it added 148 customers with more than $100,000 in Annual Recurring Revenues (ARR), reflecting sustained growth. The expansion also included an impressive record of nine customers with more than $1 million in ARR, demonstrating the company's ability to attract and serve large-scale enterprises.

In the fiscal third quarter, Samsara also achieved a milestone by surpassing $1 billion in ARR, up 39% year over year.

Samsara's robust expansion into international markets, notably achieving 17% of net new annual contract value (ACV) originating from regions such as Mexico and Europe. This underscored the company's success in reaching diverse geographies and played a pivotal role in driving the top line.

Samsara Inc. Price and Consensus


Samsara Inc. Price and Consensus
Samsara Inc. Price and Consensus

Samsara Inc. price-consensus-chart | Samsara Inc. Quote

IOT Benefits From a Strong Portfolio

Samsara is benefiting from the digitization wave, working closely with industries like construction, food and beverage, transportation, warehousing, and agriculture. It is also actively contributing to the public sector through its recent partnerships.

Samsara is expanding its footprint in the public sector through its recent partnership with the city of New Orleans to redefine the operations of its 41 departments.

Samsara aims to enhance safety, efficiency, and sustainability across crucial sectors, including Police, Fire, Public Works, Code Enforcement, Parks and Parkways and Sanitation. With a substantial $75-million investment in its fleet, the city seeks to lead municipal fleets in the United States.

Samsara's technology will act as a catalyst, providing real-time insights to reduce costs, optimize taxpayer dollars and heighten service transparency for the city's nearly 400,000 constituents and millions of annual visitors.

This commitment to innovation is highlighted by Samsara’s recent launch of a suite of theft prevention and efficiency solutions specifically for the Mexican transportation and logistics sector, addressing challenges such as rising costs, driver shortages and security concerns in the rapidly growing industry.

Further enhancing its capabilities, Samsara's recent integration with Limble empowers customers across industries with streamlined predictive maintenance by automating tasks through real-time sensor data, ensuring a closed-loop system for efficient workflow management and connected dashboards to minimize errors and inconsistencies.

Beyond current offerings, Samsara aims to convert its leading operations dataset into AI-powered insights that amplify customer impact. By investing in its platform and increasing its operational dataset, Samsara expects to deliver more valuable insights and solutions for customers.

Samsara expects net sales to be $257-$259 million for the fourth quarter of fiscal 2024. Non-GAAP earnings are anticipated to be 2-3 cents per share.

The Zacks Consensus Estimate for fiscal fourth-quarter earnings is pegged at 2 cents, unchanged in the past 30 days.

Zacks Rank & Stocks to Consider

Currently, IOT carries a Zacks Rank #3 (Hold).

Pinterest PINS, NetEase NTES and Intel INTC are a few better-ranked stocks that investors can consider from the broader sector, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

PINS, NTES and INTC shares have returned 43.3%, 50.6% and 65.5%, respectively, on a year-to-date basis.

Long-term earnings growth rates for Pinterest, NetEase and Intel are pegged at 35.87%,15.98% and 14.18%, respectively.

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