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1. Company Snapshot

1.a. Company Description

Samsara Inc.provides solutions that connect physical operations data to its Connected Operations Cloud in the United States and internationally.The company's Connected Operations Cloud includes Data Platform, which ingests, aggregates, and enriches data from its IoT devices and has embedded capabilities for AI, workflows and analytics, alerts, API connections, and data security and privacy; and applications for video-based safety, vehicle telematics, apps and driver workflows, equipment monitoring, and site visibility.


It serves customers across a range of industries, including transportation and logistics, construction, field services, utilities and energy, government, healthcare and education, manufacturing, wholesale and retail trade, and food and beverage.The company was incorporated in 2015 and is based in San Francisco, California.

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1.b. Last Insights on IOT

Breaking News: Samsara Inc reported Q4 earnings and revenues that surpassed estimates. The company's adjusted earnings were 18 cents per share on $444.3 million in revenue. Earnings rose 64% and revenues increased 28%. The company also issued upbeat FY27 guidance, which lifted its outlook. Analysts revised their forecasts following the report. The company reported better-than-expected fourth-quarter financial results and issued first-quarter sales guidance above estimates. Fiscal-year 2027 guidance was also above estimates. Some analysts recommend buying the stock.

1.c. Company Highlights

2. Samsara's Strong Q4 FY '26 Earnings: A Showcase of Durable Growth

Samsara's fiscal year '26 was marked by "durable and efficient growth," with revenue reaching $1.6 billion, a 30% year-over-year increase. The company's non-GAAP gross margin was 78%, up 1 percentage point year-over-year, and non-GAAP operating margin was 17%, up 8 percentage points from the previous year. Earnings per share (EPS) came in at $0.18, beating analyst estimates of $0.13. The company's Annual Recurring Revenue (ARR) stood at $1.9 billion, a 30% year-over-year increase, driven by a 21% year-over-year increase in net new ARR to $432 million.

Publication Date: Mar -07

📋 Highlights
  • ARR Growth:: $1.9B Annual Recurring Revenue (ARR) with 30% YoY increase, driven by $432M net new ARR (21% YoY) and $1.2B ARR from $100K+ customers (37% YoY).
  • Customer Expansion:: 3,194 $100K+ ARR customers, adding 204 new in Q4, with 15% of net new ACV from non-U.S. geographies and construction as highest net new ACV mix for 10th quarter.
  • Financial Performance:: $1.6B FY26 revenue (30% YoY), 78% non-GAAP gross margin (+1pt YoY), and 17% non-GAAP operating margin (+8pts YoY), with 115% dollar-based net retention.
  • Product Innovation:: Emerging products (20% Q4 growth) drove ARR, including AI Safety Coach and Asset Tags, with 40 AI detection capabilities and 13 $1M+ ACV deals in Q4.
  • Future Guidance:: 24% Q1 and 21-22% FY27 revenue growth, 19% non-GAAP operating margin in FY27, and $100M+ public sector ARR driven by policy demand and network effects.

Growth Drivers

The company's growth was driven by its focus on three phases of digitization: connecting physical operations, analyzing data for insights, and automating workflows with AI agents. Emerging products, such as Asset Tags, drove the acceleration in net new ARR, with 23% of net new Annual Contract Value (ACV) coming from new products launched over the past two years. The construction vertical saw its 10th consecutive quarter of strength, driven in part by the AI data center build-out.

AI and Emerging Products

Samsara's AI offering, including agentic functionality, is expected to bring new value to customers, with plans to introduce it in the summer. The company's proprietary data asset accumulates value over time, providing insights into maintenance, risk, and other areas. Emerging products had strong adoption rates, especially among large customers with complex physical operations.

Valuation and Outlook

Given the company's growth prospects, its current valuation metrics appear stretched, with a P/S Ratio of 12.53 and an EV/EBITDA of -4881.98. However, the company's return on invested capital (ROIC) stands at 32.34%, indicating efficient use of capital. For FY '27, Samsara expects revenue growth of 21-22% and non-GAAP operating margin of 19%. Analysts estimate revenue growth of 22.1% for next year, suggesting that the company's guidance is in line with expectations.

Operational Efficiency

The company has seen significant growth in large deals, with a record 13 $1 million-plus net new ACV transactions in Q4. Samsara's dollar-based net retention rate for core customers was approximately 115%, indicating strong customer loyalty. The company's supply chain team is well-equipped to handle rising memory prices, and it expects to navigate through this without significant impact on its financial profile.

3. NewsRoom

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Samsara Announces New AI Coaching Features to Transform Fleet Safety at Scale

13:00

Source: businesswire.com

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These Analysts Revise Their Forecasts On Samsara Following Upbeat Q4 Earnings

Mar -07

Source: benzinga.com

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Why Samsara Stock Surged Today

Mar -07

Source: fool.com

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Samsara Stock Bucks Broad Market Selloff on Earnings Triple Play

Mar -06

Source: schaeffersresearch.com

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Samsara Surges 12% as Q4 Earnings and Revenues Surpass Estimates

Mar -06

Source: zacks.com

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Samsara: No HALO, No Problem - Shares Rise After A Strong Q4

Mar -06

Source: seekingalpha.com

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Samsara Stock Surges After Double Beat, Strong Outlook

Mar -06

Source: benzinga.com

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Stock Futures Succumb to Oil Pressure, Jobs Data

Mar -06

Source: schaeffersresearch.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (14.01%)

6. Segments

Subscription

Expected Growth: 14.07%

Samsara Inc.'s 14.07% subscription growth is driven by increasing adoption of IoT solutions in the industrial sector, rising demand for real-time data analytics, and expanding presence in the transportation and logistics industry. Additionally, the company's focus on product innovation, strategic partnerships, and effective sales and marketing strategies contribute to its rapid growth.

Other

Expected Growth: 10.83%

Samsara Inc.'s 10.83% growth in 'Other' segment is driven by increasing adoption of IoT-based solutions, expansion into new markets, and growing demand for digital transformation in industries such as logistics, construction, and manufacturing.

7. Detailed Products

Fleet Management

Samsara's Fleet Management solution provides real-time visibility into vehicle location, speed, and other key metrics, enabling fleet operators to optimize routes, reduce fuel consumption, and improve safety.

Industrial IoT Sensors

Samsara's Industrial IoT Sensors provide real-time monitoring of temperature, humidity, and other environmental factors, enabling organizations to optimize operations and reduce waste.

Video-Based Safety

Samsara's Video-Based Safety solution provides AI-powered video analysis to detect and prevent accidents, enabling organizations to improve safety and reduce liability.

Telematics

Samsara's Telematics solution provides real-time vehicle data, enabling organizations to optimize fleet operations, reduce fuel consumption, and improve safety.

Environmental Monitoring

Samsara's Environmental Monitoring solution provides real-time monitoring of air and water quality, enabling organizations to ensure compliance with environmental regulations.

8. Samsara Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Samsara Inc. is moderate, as there are some alternatives available in the market, but they are not very attractive to customers.

Bargaining Power Of Customers

The bargaining power of customers is high, as they have many options available and can easily switch to competitors if they are not satisfied with Samsara Inc.'s products or services.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low, as Samsara Inc. has multiple suppliers to choose from and can negotiate better prices and terms.

Threat Of New Entrants

The threat of new entrants is moderate, as there are some barriers to entry, but it is still possible for new companies to enter the market and compete with Samsara Inc.

Intensity Of Rivalry

The intensity of rivalry is high, as there are many competitors in the market, and Samsara Inc. needs to differentiate itself and innovate to stay ahead of the competition.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 9.81%
Debt Cost 11.83%
Equity Weight 90.19%
Equity Cost 11.83%
WACC 11.83%
Leverage 10.87%

11. Quality Control: Samsara Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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VeriSign

A-Score: 6.1/10

Value: 3.6

Growth: 5.9

Quality: 8.1

Yield: 1.0

Momentum: 9.0

Volatility: 9.0

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Box

A-Score: 5.0/10

Value: 2.6

Growth: 8.0

Quality: 7.4

Yield: 0.0

Momentum: 3.5

Volatility: 8.3

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Euronet Worldwide

A-Score: 4.8/10

Value: 6.9

Growth: 7.4

Quality: 5.4

Yield: 0.0

Momentum: 1.5

Volatility: 7.3

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Nutanix

A-Score: 4.4/10

Value: 3.3

Growth: 8.3

Quality: 6.2

Yield: 0.0

Momentum: 4.0

Volatility: 4.3

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SPS Commerce

A-Score: 3.6/10

Value: 2.0

Growth: 8.1

Quality: 7.8

Yield: 0.0

Momentum: 0.0

Volatility: 4.0

1-Year Total Return ->

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Samsara

A-Score: 3.6/10

Value: 2.0

Growth: 7.9

Quality: 5.6

Yield: 0.0

Momentum: 2.5

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

32.9$

Current Price

32.9$

Potential

-0.00%

Expected Cash-Flows