Samsara Inc (NYSE:IOT) concluded its fiscal year with robust results, surpassing Wall Street expectations for the fourth quarter. The company reported an adjusted EPS of $0.04, edging out the consensus estimate of $0.03. Revenue for the quarter was also higher than anticipated, coming in at $276.3 million against the forecasted $258.29 million.
This performance represents a significant 48% YoY revenue growth or 37% on an adjusted basis. The company's Annual Recurring Revenue (ARR) reached $1.102 billion, marking a 39% YoY increase. Additionally, Samsara saw a 49% YoY growth in customers with ARR over $100,000, now totaling 1,848.
Looking ahead, the company's guidance for the first quarter of 2025 projects an EPS range of $0.00-$0.01, comfortably above the analyst consensus of -$0.01. Revenue expectations are set at $271-273 million, also higher than the consensus of $266.8 million. For the full fiscal year 2025, Samsara anticipates an adjusted EPS between $0.11-$0.13, compared to the consensus of $0.08, and revenue projections of $1.186-1.196 billion, slightly above the consensus of $1.18 billion.
The stock responded positively to the news, jumping 14.96% as investors reacted to the earnings and revenue beat. CEO and co-founder Sanjit Biswas highlighted the company's commitment to efficient operations, noting their first year of positive adjusted free cash flow. Biswas remains optimistic about the future, stating, "We continue to see a vast opportunity for our customers and are excited to deliver on our mission to increase the safety, efficiency, and sustainability of the operations that power the global economy."
Samsara's financial performance and forward-looking guidance reflect the company's ability to maintain high growth while operating efficiently, a balance that is often challenging to achieve in the tech industry. This announcement underscores the company's momentum and potential for continued expansion in the upcoming fiscal year.
Following the report, TD Cowen raised its price target for IOT to $45 from $36 per share, maintaining an Outperform rating on the stock. The firm said, "The beat and raise machine marches on," with the fourth quarter "the cherry on top."
"IOT delivered a strong 4Q with 48% rev growth well above our 39% est & FY25 rev guide was comfortably above Street," wrote the firm.
Elsewhere, Goldman Sachs reiterated its Buy rating and raised its price target for IOT to $44 from $39 per share. Analysts stated that the company's solid print underscored via continued elevated growth and record $100K+ additions, means "initial F25 guidance could possess upside."