Samsara stock tumbled after the company reported third-quarter earnings and revenue that topped Wall Street targets while sales guidance came in slightly below expectations.
The San Francisco-based company released its earnings report after the market close on Thursday. For Q3, Samsara reported earnings of 8 cents per share on an adjusted basis versus a 4-cent profit a year earlier. Meanwhile, revenue rose 36% to $322 million, the company said.
Samsara Stock: Guidance Disappoints
Analysts expected Samsara to report a profit of 4 cents a share on sales of $310.6 million. Annual recurring revenue from subscriptions rose 35% to $1.35 billion, slightly above estimates of $1.34 billion.
For the current quarter ending in January, Samsara said it expects revenue of $335 million at the midpoint of its outlook, just below estimates. Samsara stock analysts had projected revenue of $335.8 million.
"The stock is trading down likely reflecting the essentially in-line Q4 revenue outlook," said RBC Capital Markets analyst Matthew Hedberg in a report.
At BMO Capital Markets, analyst Daniel Jester said in a report: "Lighter net new ARR growth and lack of 4Q revenue raise against high expectations may cause shares to fade recent strength."
TD Cowen analyst Derrick Wood said in a report: "Samsara delivered a strong Q3 with 36% revenue growth but softer net new ARR growth and an in-line Q4 guide disappointed amid heightened expectations. Underlying story remains well intact, with positive data points on up-market traction, new product adoption and international expansion."
Non-Vehicle 'Asset Tags'
Heading into the Samsara earnings report, some analysts were upbeat about new "asset tags" introduced at an investor conference in June. The non-vehicle tags track an assortment of smaller, industrial assets.
On the stock market today, Samsara stock tumbled more than 10% to 49.29 in early trading.
Heading into the Samsara earnings report, the company had a Relative Strength Rating of 93 out of a best-possible 99, according to IBD Stock Checkup. Samsara stock has risen more than 67% 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.
