Samsara's (IOT) Q3 Earnings Beat Estimates, Revenues Up Y/Y
Samsara IOT reported non-GAAP earnings of 4 cents per share in third-quarter fiscal 2024 that comfortably beat the Zacks Consensus Estimate of 1 cent. The company reported a loss of 2 cents per share in the previous year.
Revenues came in at $237.5 million, up 40% year over year. The figure beat the Zacks Consensus Estimate by 5.4%.
Shares were up 17.65% in pre-market trading. Samsara’s shares have gained 121.6% compared with the Zacks Computer and Technology sector’s rise of 32.8% in the year-to-date period,
Top-Line Details
In the fiscal third quarter, Samsara concluded with Annual Recurring Revenues (ARR) of $1.003 billion, rallying 39% year over year.
Samsara Inc. Price, Consensus and EPS Surprise
Samsara Inc. price-consensus-eps-surprise-chart | Samsara Inc. Quote
The number of customers with an ARR surpassing $100,000 reached 1,663, a quarterly record increase of 148, increasing 49% year over year.
In the fiscal third quarter, four of the top five new ACV transactions were new logos, with three securing above $1M ARR each across key products: Video-Based Safety, Vehicle Telematics and Smart Equipment & Other.
Video-Based Safety achieved more than $400 million in ARR with a remarkable year-over-year growth of over 30%.
Vehicle Telematics recorded substantial ARR and surpassed $400 million, up more than 30% year over year.
Smart Equipment & Other generated significant ARR that exceeded $100 million, up 30% year over year.
Operating Details
In third-quarter fiscal 2024, non-GAAP gross profit rose 43% year over year to $179 million. Gross margin expanded 100 basis points to 75%.
Total operating expenses increased 24% year over year to $230.7 million, mainly due to higher research and development (up 21.7% year over year), sales and marketing (up 24.2% year over year) and general and administrative costs (rising 15.1% year over year).
Operating income was $12.7 million against an operating loss of $5.9 million reported in the year-ago quarter.
Balance Sheet & Cash Flow
As of Oct 28, 2023, cash and cash equivalents were $208 million compared with $196 million as of Jul 29, 2023.
In the fiscal third quarter, cash provided by operating activities came in at $11.9 million, up from $7.7 million reported in the prior quarter.
Free cash flow was $8.5 million compared with $4.7 million reported in the previous quarter.
Guidance
For the fourth quarter of fiscal 2024, Samsara expects revenues between $257 million and $259 million.
The non-GAAP operating margin is anticipated to be 2%.
Non-GAAP earnings for the fiscal fourth quarter are expected to be in the range of 2-3 cents per share.
For fiscal 2024, the company expects revenues in the range of $918-$920 million.
Non-GAAP earnings are expected in the range of 5-6 cents.
Zacks Rank & Key Picks
Samsara currently carries a Zacks Rank #3 (Hold).
ASANA ASAN, Science Applications International SAIC and Broadcam AVGO, are some better-ranked stocks that investors can consider in the broader sector, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ASANA shares have gained 48.9% year to date. ASAN is set to report its third-quarter fiscal 2024 results on Dec 5.
Science Applications International shares have declined 5.8% year to date. SAIC is set to report its third-quarter fiscal 2024 results on Dec 4.
Broadcam’s shares have returned 65.6% year to date. AVGO is set to report its fourth-quarter fiscal 2023 results on Dec 7.
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