Shares of Samsara, the software company specializing in fleet-management solutions, experienced a significant boost following the release of their third-quarter revenue report. The company reported a 40% increase in revenue for the quarter, surpassing analysts' expectations and prompting an upward revision of their full-year outlook.
The stock price surged almost 15% to $31.60 during premarket trading. Year-to-date, the shares have already witnessed an impressive gain of nearly 122%.
Samsara recorded quarterly revenue of $237.5 million, exceeding analysts' projections of $224.7 million. During a conference call with analysts, Chief Executive Sanjit Biswas highlighted the growing momentum with accounts from large customers as a key driver of their success.
Adjusted profit for the quarter stood at four cents per share, surpassing analysts' expectations of one cent per share. Additionally, the company raised its full-year outlook for both sales and adjusted earnings.
According to analysts at boutique investment bank William Blair, Samsara's robust results demonstrate the expansive potential of their addressable market. They also noted that the company is expanding its business into various use cases beyond fleet management.
Truist analysts pointed out that this was Samsara's first quarter with positive operating margins, indicating the company's ability to optimize operations while maintaining growth.