Shares in Samsara jumped on Friday after the company reported a narrower-than-expected loss for the first quarter while revenue topped Wall Street targets. Also, the company's revenue outlook came in above expectations, sending IOT stock up.
Samsara earnings were released after the market close on Thursday. IOT stock vaulted 27.9% higher to close at 24.31 on the stock market today.
"We think IOT is benefiting from selling into operations budgets, which are large and less competitive than (information technology) budgets, with pricing based on assets (not headcount), all leading to more growth durability," TD Cowen analyst Derrick Wood said in a note to clients. He noted that Samsara hosts an investor day on June 22.
For the quarter ended April 29, San Francisco-based Samsara reported a loss of 2 cents per share on an adjusted basis vs. a 5-cent loss a year earlier. Meanwhile, revenue rose 43% to $204.3 million, the company said.
Analysts expected Samsara to record a 5-cent loss on sales of $192 million. Annual recurring revenue from subscriptions rose 41% to $856.2 million, topping estimates of $838.7 milllion.
IOT Stock: Revenue Outlook Beats Views
For the current quarter, Samsara said it expects revenue of $207 million at the midpoint of its outlook. IOT stock analysts had projected revenue of $201 million.
Heading into the Samsara earnings report, the company owned a Relative Strength Rating of 97 out of a best-possible 99, according to IBD Stock Checkup.
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.
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