Samsara Surpasses Q3 Expectations but Slowing Revenue Growth Weighs on Shares

Samsara (NYSE:IOT) delivered third-quarter results that exceeded Wall Street's expectations and raised its full-year guidance, yet its shares fell over 5% intra-day today as investors reacted to signs of slowing revenue growth.

For the quarter, Samsara reported adjusted earnings per share of $0.07, outperforming analyst estimates of $0.04. Revenue rose 36% year-over-year to $322 million, beating the consensus projection of $310.57 million. The company highlighted its strong performance as evidence of efficient growth at an expanded scale.

However, the revenue growth of 36% reflected a slowdown compared to the 43% growth reported in the previous quarter. Annual recurring revenue climbed 35% year-over-year to $1.35 billion, signaling continued demand for its Internet of Things solutions despite the deceleration.

For fiscal 2025, Samsara raised its adjusted EPS outlook to a range of $0.22 to $0.23, surpassing its prior guidance of $0.17 to $0.19 and exceeding analyst expectations of $0.17. The company also revised its full-year revenue forecast upward to between $1.237 billion and $1.239 billion, slightly above the Street consensus estimate of $1.23 billion.

While the company showcased resilience and upward financial adjustments, the slowdown in growth appeared to temper investor enthusiasm.