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HomeMarketSamsara Stock Is Having Its Best Day on Record. Here's Why.

Samsara Stock Is Having Its Best Day on Record. Here’s Why.

Samsara fiscal 2023 revenue to be between $636 million to $638 million.

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Courtesy Samsara

Samsara
stock was surging Friday after the physical-asset-tracking company raised its full-year financial outlook, “displaying the durability” of its model, according to an analyst at RBC.

Samsara
(ticker: IOT) posted an adjusted fiscal third-quarter loss of 2 cents a share on revenue of $169.8 million, compared with a year-earlier loss of 12 cents a share on revenue of $113.8 million. Analysts surveyed by FactSet were expecting an adjusted loss of 6 cents a share on revenue of $155.5 million.

Annual recurring revenue in the quarter was $723.7 million, a jump from the $492.8 million last year.

The company also raised its financial expectations for the full year. It now expects revenue for fiscal 2023 of between $636 million to $638 million, up from prior expectations of $610 million to $614 million. Samsara also now expects its net loss for the fiscal year to be between 16 cents and 17 cents a share, narrower than previous guidance for a loss of 21 cents to 23 cents a share.

“We’re really pleased with the Q3 results. When we look at our customer demand, the overall pipeline, the conversion rates, the win rates, all of those remain strong,” Dominic Phillips, chief financial officer, said on the company’s earnings call.

Shares of Samsara soared 23.4% Friday to $12.22, which was the largest percent increase for the stock on record, according to Dow Jones Market Data. The stock has fallen about 57% this year.

RBC Capital Markets Analyst Matthew Hedberg raised his 12-month price target on Samsara to $15 from $14 and maintained his Outperform rating on the stock. He wrote in a research note that “against negative investor sentiment, Samsara reported a beat-and-raise quarter displaying the durability of its end-markets and model.”

William Blair analyst Matthew Pfau said in a note that “although the company is seeing some macro impact, Samsara’s business seems to be holding up better than some other enterprise SaaS [software as a service] companies. We attribute this to the strong return on investment and short payback period of the company’s products.” Pfau maintained his Outperform rating on the stock.

Write to Angela Palumbo at angela.palumbo@dowjones.com

Credit: marketwatch.com

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