Samsara Shares Drop 13% Despite Beating Q4 Revenue Estimates

Samsara Inc. (IOT) reported a successful fourth quarter, with revenues of $346.3 million, surpassing analyst expectations and showing a 25.3% year-on-year increase. Despite this positive performance, Morgan Stanley analyst Keith Weiss maintained a Hold rating, citing concerns over market conditions, including tariffs and a slowdown in new annual recurring revenue (ARR) growth to 10% year-over-year. The company's ARR stood at $1.458 billion, reflecting a growth of 33%, but forward guidance indicates a deceleration in revenue growth to between 23-24%. Additionally, Samsara's stock has seen a recent decline due to broader market uncertainties, including mixed economic signals and investor sentiment. Despite these challenges, the company has demonstrated strong fundamentals and resilience, with a total return of 172.42% over the last three years. Analysts continue to monitor Samsara's performance closely as it navigates these market dynamics.