Samsara’s first quarter results reflected continued demand from large enterprise customers and expanded adoption of its AI-powered safety and asset management solutions. However, the market responded negatively, with management attributing some deal delays to customer caution stemming from new tariffs on vehicles and equipment. CEO Sanjit Biswas pointed to increased focus on operational safety and preventive maintenance as key themes, while CFO Dominic Phillips noted that elongated sales cycles were widespread across industries due to macro uncertainty.
Is now the time to buy IOT? Find out in our full research report (it’s free).
Samsara (IOT) Q1 CY2025 Highlights:
- Revenue: $366.9 million vs analyst estimates of $351.5 million (30.7% year-on-year growth, 4.4% beat)
- Adjusted EPS: $0.11 vs analyst estimates of $0.06 (91.6% beat)
- Adjusted Operating Income: $51.07 million vs analyst estimates of $24.93 million (13.9% margin, significant beat)
- The company lifted its revenue guidance for the full year to $1.55 billion at the midpoint from $1.53 billion, a 1.5% increase
- Management raised its full-year Adjusted EPS guidance to $0.40 at the midpoint, a 21.2% increase
- Operating Margin: -9.1%, up from -23.5% in the same quarter last year
- Customers: 2,638 customers paying more than $100,000 annually
- Annual Recurring Revenue: $1.54 billion at quarter end, up 30.6% year on year
- Billings: $387.2 million at quarter end, up 27.7% year on year
- Market Capitalization: $22.65 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Samsara’s Q1 Earnings Call
- Aleksandr J. Zukin (Wolfe): Asked about the magnitude and quality of delayed deals due to tariffs; CFO Dominic Phillips clarified delays involved multimillion-dollar contracts but the pipeline remains strong.
- Keith Weiss (Morgan Stanley): Pressed on distinguishing macro-driven sales cycle elongation from larger, more complex deals; Phillips explained delays were widespread and mainly due to tariff uncertainty, not deal complexity.
- Michael James Turrin (Wells Fargo): Inquired about drivers of growth in emerging verticals like construction and public sector; CEO Sanjit Biswas cited efficiency gains and fuel savings as key adoption drivers.
- Matthew George Hedberg (RBC): Asked about the impact of asset tags on annual contract value; Phillips described varied use cases, including asset recovery and utilization improvements, with gradually increasing adoption.
- Mark William Schappel (Loop Capital): Sought clarity on Europe’s adoption of video-based safety and telematics; Biswas noted the region is catching up quickly, with product maturity and competition varying by country.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be monitoring (1) whether OEM integrations accelerate customer onboarding and reduce hardware reliance, (2) sustained growth in multiproduct adoption and AI-driven applications among large enterprise customers, and (3) the impact of ongoing tariff-related uncertainty on sales cycles and pipeline conversion. Progress in international expansion and new product launches will also be key signposts for future performance.
Samsara currently trades at $39.82, down from $47.35 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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