Shares in Samsara surged Friday on second-quarter results that topped Wall Street targets, while the company's revenue outlook for IOT stock came in slightly above views.
The company reported earnings after the market close on Thursday. On the stock market today, IOT stock jumped 13.1% to close at 30.93.
For the quarter ended July 29, San Francisco-based Samsara reported a profit of 1 cent per share on an adjusted basis vs. a loss of 4 cents a year earlier. Meanwhile, revenue rose 43% to $219.3 million, the company said.
Analysts expected Samsara to record a 2-cent loss on sales of $207.5 million. Annual recurring revenue from subscriptions rose 40% to $930 million, topping estimates of $910.3 million.
Also, Samsara notched its first positive quarter in adjusted free cash flow.
IOT Stock: Big Spenders Help
At TD Cowen, IOT stock analyst Derrick Wood said high-spending customers drove growth during the quarter.
"Strength in the quarter was driven primarily by continued momentum in the $100,000-plus (spending) cohort, including 140 net new $100,000-plus customers, the best on record and up 52% year-over-year," Wood said in a note to clients.
For the current quarter, Samsara said it expects revenue of $224 million at the midpoint of its outlook. Samsara stock analysts had projected revenue of $220.4 million.
Heading into the Samsara earnings report, the company owned a Relative Strength Rating of 98 out of a best-possible 99, according to IBD Stock Checkup. In addition, IOT stock had forged a double-bottom base.
Founded in 2015, Samsara provides sensors and cloud-based software to manage vehicle fleets and industrial operations. Further, its Internet of Things platform provides global positioning tracking for trucks, and monitors routes and vehicle performance.
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