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Investing.com -- Samsara Inc (NYSE:IOT) delivered upbeat fiscal first-quarter results, surpassing Wall Street estimates on both the top and bottom line, but shares sank in premarket U.S. trading on Friday as investors reacted to a tempered growth outlook.
Adjusted earnings per share came in at $0.11, well above the consensus forecast of $0.05, while revenue rose 31% year-over-year to $366.9 million, exceeding the $351.56 million estimate.
Samsara’s improved cash performance was also highlighted in the report, with adjusted free cash flow jumping to $45.7 million and operating cash flow margin expanding six percentage points to 14%. Adjusted net income for the quarter marked a significant improvement from a year earlier, driven by efficiency gains across the organization.
Key customer metrics also showed continued progress, with annual recurring revenue (ARR) climbing 31% to $1.54 billion and large customer accounts, those generating over $100,000 in ARR, increasing 35% year-over-year to 2,638. However, these growth rates mark a return to more normalized post-pandemic expansion following years of rapid scaling.
Analysts at BMO Capital Markets flagged in a note to clients that "[f]iscal first-quarter annual recurring revenue growth was at the low-end of the range we suggested in our preview, predominately reflecting deal delays as customers with physical operations navigated uncertainty in April".
Meanwhile, although Samsara showed gains in profitability -- adjusted operating income reached $51.1 million, up from $6.2 million a year ago -- the market remained focused on declining momentum. The firm’s guidance for second-quarter revenue of $371 million to $373 million indicated 24% year-over-year growth, a drop from the 31% delivered in the first quarter.
San Francisco-based Samsara also predicted that full-year revenue would be between $1.55 billion and $1.56 billion, only modestly above consensus estimates of $1.53 billion.
(Luke Juricic contributed reporting.)