Samsara Inc. saw its stock decline in after-hours trading Thursday, even as the company reported fiscal first-quarter results that topped Wall Street expectations. Shares last traded at $35.21, down $1.04, with over 11 million shares changing hands. The drop extended a 3% decline during the regular session, according to Barron's.
The San Francisco-based provider of fleet management, industrial data, and AI technology posted revenue of $478.8 million for the quarter ended May 2, a 31% increase from the same period last year. Annual recurring revenue (ARR) reached $1.991 billion, up 30% year-over-year. On an adjusted basis, earnings came in at $0.17 per share, surpassing the FactSet consensus estimate of $0.13 per share on revenue of $455.2 million.
Despite the strong headline numbers, investors focused on the company's second-quarter guidance, which was only modestly above analyst forecasts. For the current quarter, Samsara expects revenue in the range of $482 million to $484 million, with adjusted earnings per share of $0.15 to $0.16. The full-year outlook was raised to revenue of $2.005 billion to $2.013 billion and adjusted EPS of $0.70 to $0.72. The tepid outlook suggested limited upside potential, particularly after the stock had run up ahead of the report.
CEO Sanjit Biswas noted that customers experienced "unprecedented demand" but were "constrained by worker capacity," emphasizing the quarter's story around automation in physical industries rather than back-office software. The company highlighted strong spending from large customers, ending the quarter with 3,363 customers generating at least $100,000 in ARR, and 190 customers above $1 million. Emerging products contributed over 20% of net new annual contract value, which tracks new subscription business.
Chief Revenue Officer Amit Vyas said each vehicle, asset, and job site connected to the platform brings in more data for the system. Samsara booked 11 deals worth over $1 million in net new annual contract value, marking its second-best quarter on that metric. Cash flow also improved, with adjusted free cash flow of $73.2 million, representing a 15% margin. On a GAAP basis, the company reported earnings of $0.08 per share, marking its third consecutive quarter of profitability under that measure.
A notable item in the quarter was a $30.3 million gain from an arbitration award against Motive Technologies, a private fleet-management rival, related to claims of breach of contract, fraud, unfair competition, and false advertising. The company excluded this gain from its non-GAAP results. Reuters has identified Motive as a competitor in dashcams and fleet-management technology.
Market conditions were mixed, with the Dow Jones Industrial Average finishing at a record and the S&P 500 gaining, while the Nasdaq Composite declined amid pressure on chipmakers following Broadcom's results. The broader tech weakness did little to support a high-growth software stock whose near-term forecast was roughly in line with consensus. Looking ahead, Samsara faces risks including potential slowdowns in customer buying, longer sales cycles, heightened competition, and the impact of tariffs and supply-chain costs on its 23% to 24% second-quarter revenue growth target. The company flagged risks related to customer retention, demand, competition, supply-chain issues, inflation, interest rates, and trade policy.
Investors will now look to June 24, when Samsara hosts an investor day in Las Vegas alongside its customer conference. The event is expected to provide more details on AI product initiatives, large-account growth strategies, and whether the company can sustain its strong ARR growth into profitability ahead of the next earnings report.
