Samsara stock surges as first public earnings, outlook exceed Wall Street expectations

Samsara Inc. shares rallied in the extended session Wednesday after the cloud-based operations platform reported a better-than-expected outlook and results in its first earnings as a public company.

Samsara IOT, +1.57% shares rallied 12% after hours, following a 5.2% drop in the regular session to close at $16.56, or 28% below its IPO price of $23 apiece in December. Since then, the Renaissance IPO ETF IPO, -6.12% has fallen 19%.

The company reported a fourth-quarter loss of $252.9 million, or 68 cents a share, compared with $36.2 million, or 15 cents a share, in the year-ago period. The adjusted net loss, which excludes stock-based compensation expenses and other items, was 5 cents a share, compared with a loss of 13 cents a share in the year-ago period. The number of Samsara’s outstanding shares rose to 371.8 million from 242.7 million in the year-ago period.

Revenue rose to $125.8 million from $75.9 million in the year-ago quarter. Annual recurring revenue, or ARR, rose 64% to $558.1 million from a year ago. ARR is a software-as-a-service metric that shows how much revenue the company can expect based on subscriptions.

Analysts surveyed by FactSet had forecast a loss of 7 cents a share on revenue of $116.4 million and ARR of $506.7 million.

Samsara forecast a loss of 8 cents to 7 cents a share on revenue of $130 million to $132 million for the first quarter, and a loss of 27 cents to 25 cents a share on revenue of $568 million to $578 million for the year.

Analysts had estimated a loss of 8 cents a share on revenue of $124.5 million for the first quarter, and a loss of 31 cents a share on revenue of $550.3 million for the year.