Asset-tracking systems provider Samsara Inc. delivered strong fiscal fourth-quarter earnings results today and offered impressive guidance for the current quarter, sending its stock much higher in late trading.

The company reported earnings before certain costs such as stock compensation of four cents per share, above its own forecast of two to three cents and ahead of the Street’s guidance of three cents. Revenue for the period came to $276.3 million, up by an impressive 48% and well ahead of its own guidance range of $257 million to $259 million. It also smashed the Street’s forecast of $258.3 million.

The revenue growth was so impressive that investors were more than willing to forgive the company for going backward in terms of profitability. All told, Samsara posted a net loss of $113.3 million, up from a loss of $53.6 million one year earlier.

Samsara’s stock, which was more than 3% ahead in regular trading prior to today’s report, gained 16% more in extended trading.

The company reported annual recurring revenue of $1.1 billion, up 39%, while its adjusted gross margin rose to 76% from 74% one year ago. For the full fiscal year 2024, Samsara delivered total sales of $937.4 million, up 44%, with earnings coming to seven cents per share.

Samsara, founded in 2015 before going public in 2021, sells cloud-based software and sensors for companies that need to keep track of things like vehicle fleets, agricultural and construction equipment. That’s why the company’s Wall Street ticker symbol is IOT, a reference to the internet of things industry it operates in.

Samsara co-founder and Chief Executive Sanjit Biswas (pictured) hailed the company’s “durable and efficient growth” over the last year and also its steadfast commitment to operating efficiently, which enabled it to record its first year of positive adjusted free cash flow. “We continue to see a vast opportunity for our customers and are excited to deliver on our mission to increase the safety, efficiency, and sustainability of the operations that power the global economy,” he added.

In an interview with Barron’s, Biswas elaborated on the company’s strong performance, saying it saw increased demand across several verticals, including construction, transportation and local government customers. The company also did well to attract larger enterprises, growing its revenue from customers who generate at least $100,000 per year in sales by 49%, he said.

During the quarter, Samsara announced a big partnership with the computerized maintenance management system startup Limble Solutions LLC, in an effort to address the challenge of predictive maintenance for companies operating a vehicle fleet. That should make its software even more useful to customers.

Samsara is forecasting more of the same in the next quarter and full year. For the first quarter of fiscal 2025, it’s eyeing revenue of between $271 million and $273 million, with earnings of between break-even and a penny per share. The Street’s consensus estimate calls for sales of $267.1 million and a loss of a penny per share.

For the full year, Samsara predicts sales of between $1.186 billion and $1.196 billion, which would amount to growth of 27% to 28%, with earnings of 11 to 13 cents per share. Wall Street is looking for total sales of $1.17 billion and earnings of nine cents per share.

Photo: Samsara/YouTube