IoT Specialist Samsara Impresses With Record Customer Growth in Q4 - USIC Secures Largest new Customer Contract in Company History!

IoT specialist Samsara (IOT) supplies hardware in the form of telematics, GPS sensors and AI dashcams to connect various physical assets and manage them with associated software in the Connected Operations Cloud. The goal is to make physical operations, which account for 40% of global GDP, more efficient. AI tools can detect whether drivers are wearing their seatbelts, using their cell phones or not keeping a safe distance. Connected Forms is now also generally available, allowing field staff to quickly submit inspections and incident reports via digital forms. CEO Sanjit Biswas speaks of only the "beginning of the digitization journey" but already emphasizes "It's hard to drive a mile on the road without seeing a Samsara customer at work."
Land-and-expand remains the key to success, as all of the 10 largest contracts were multi-product deals and 53% of the net new annual contract value added came from existing customers. Momentum is provided by the 1,848 major customers with annual recurring revenue (ARR) of over $100,000, where the highest growth rates in the company's history were recorded. USIC, the leading provider of underground positioning services for public utilities, also secured its largest new customer contract to date, enabling it to handle over 84 million projects a year more efficiently.

On March 7, the fourth quarter was convincing with a 48% increase in sales and an earnings surprise of $0.04 per share (consensus: $0.03). Cost optimizations ensure a record gross margin of 76%. Annual recurring revenues of $1.1 billion (+39%) and an adjusted free cash flow for the first time marked milestones for the 2024 financial year. Revenues are expected to increase by another 27% in the new year. An upward gap and a breakout to a new all-time high will now trigger an upward sideways movement that has been in place since December.

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