Samsara stock soared after the company reported second-quarter earnings and revenue that topped Wall Street targets and raised full-year revenue guidance.
The San Francisco-based company released its earnings report after the market close on Thursday. On the stock market today, Samsara stock rose jumped 13.7% to near 44 in morning trading.
"Management's raised outlook now calls for 33% normalized revenue growth in fiscal 2025, placing the business in rarified air as a software company sustaining 30%-plus growth at well north of $1 billion in revenue scale," said William Blair analyst Dylan Becker in a report.
For the quarter ended Aug. 3, Samsara reported earnings of 5 cents per share on an adjusted basis versus a 1-cent profit a year earlier. Meanwhile, revenue rose 37% to $300 million, the company said.
Samsara Stock: Guidance In-Line
Analysts expected Samsara to record 1 cent profit on sales of $289.5 million.
Further, annual recurring revenue from subscriptions rose 36% to $1.26 billion, topping estimates of $1.25 billion.
For the current quarter ending in October, Samsara said it expects revenue of $310 million at the midpoint of its outlook. Samsara stock analysts had projected revenue of $309 million.
Morgan Stanley analyst Keith Weiss in a report said new products are spurring revenue growth.
New Products: Asset Tags Take Off
"Q2 is another proof point of Samsara's ability to sustain durable growth as the core business remains robust and enhanced by incremental growth drivers from quickly ramping new products and international markets," Weiss said.
"After only having a few weeks of selling post the products' launch at the Beyond conference in June, Asset Tags and Connected Workflows each achieved $1 million in net new ACV (annual contract value) after only a few weeks of selling."
Heading into the Samsara earnings report, the company had a Relative Strength Rating of 82 out of a best-possible 99, according to IBD Stock Checkup. Samsara stock has risen more than 16% so far this year.
Founded in 2015, Samsara provides sensors and cloud-based software to manage vehicle fleets and industrial operations. Further, its Internet of Things platform provides GPS tracking for trucks, and monitors routes and vehicle performance.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
