Why Software Company Samsara's Shares Are Surging Today
Portfolio Pulse from Lekha Gupta
Samsara Inc (NYSE:IOT) shares surged approximately 14% after reporting Q3 FY24 results with significant year-over-year growth. Revenue increased by 40% to $237.5 million, surpassing the consensus estimate of $224.7 million. The company's Annual Recurring Revenue (ARR) grew by 39% to $1.003 billion, and the number of customers with ARR over $100,000 increased by 49%. Non-GAAP gross margin improved to 75%, and operating margin turned positive to 5% compared to a loss a year ago. Non-GAAP EPS was $0.04, beating the $0.01 consensus. Adjusted free cash flow was reported at $8.5 million, with cash and cash equivalents at $208.1 million. Samsara raised its FY24 revenue outlook to $918 million – $920 million and non-GAAP EPS to $0.05 – $0.06, both above consensus estimates. IOT shares traded higher at $31.30 in premarket.
December 01, 2023 | 1:13 pm
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POSITIVE IMPACT
Samsara Inc's stock surged after reporting strong Q3 FY24 results, with revenue and EPS exceeding expectations. The company also raised its FY24 revenue and EPS outlook, indicating confidence in continued growth.
The positive earnings report and raised guidance are strong indicators of the company's performance and future prospects, which typically result in a positive short-term impact on the stock price. The significant beat on both revenue and EPS, along with improved margins and positive free cash flow, are likely to increase investor confidence and demand for the stock.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100