Samsara posted higher-than-expected revenue and profit in its fiscal third quarter, but its shares slipped as its outlook failed to impress investors.
The stock fell 11%, to $49, in after-hours trading. Shares -- which ended the regular session down 1.3%, to $55.13 -- are up 65% since the beginning of the year.
The San Francisco-based fleet-management software provider on Thursday reported a loss of $37.8 million, or 7 cents a share, for its quarter ended Nov. 2, compared with a loss of $45.5 million, or 8 cents a share, in last year's comparable quarter.
On an adjusted basis, the company posted an adjusted profit of 7 cents, ahead of the 4 cents that analysts polled by FactSet expected.
Revenue jumped 36% to $322 million, beating the $310.6 million that analysts were looking for, according to FactSet. Annual recurring revenue came in at $1.35 billion, up 35% from a year earlier.
Chief Executive Sanjit Biswas said the company is using its collected data to bring artificial intelligence to its operations. "We believe AI will play a powerful role in transforming the safety, efficiency, and sustainability of our customers' operations," he said.
For its fiscal fourth quarter, Samsara guided for adjusted per-share earnings between 7 cents and 8 cents on revenue between $334 million and $336 million. Analysts surveyed by FactSet projected adjusted earnings of 6 cents a share on revenue of $335.8 million.
For its fiscal 2025, the company now expects revenue between $1.237 billion and $1.239 billion, up from a prior outlook of between $1.22 billion and $1.23 billion. It increased its adjusted per-share earnings outlook to between 22 cents and 23 cents from between 16 cents and 18 cents. Analysts are looking for revenue of $1.23 billion and adjusted earnings of 17 cents a share.