2. Samsara Inc. (NYSE:IOT)
Short % of float: 7.81%
Number of Hedge Fund Holders: 26
Samsara Inc. (NYSE:IOT) offers a cloud software platform focused on commercial vehicle telematics, video-based driver safety, driver workflow automation, and industrial equipment monitoring. Its products include real-time GPS, AI-powered dash cams, routing, and driver apps. In Q2 of fiscal year 2025, the company added 169 customers with over $100,000 in annual recurring revenue (ARR), along with a record 14 customers surpassing $1 million in ARR.
Goldman Sachs raised its price target for Samsara Inc. (NYSE:IOT) to $45 from $44 while maintaining a Buy rating following Samsara’s earnings report, which exceeded expectations. The company saw a 1% increase in ARR, a 4% revenue growth, an 800 basis point improvement in operating margins, and a 400 basis point boost in free cash flow margins. Additionally, Samsara’s guidance for Q3 and the full fiscal year 2025 surpassed forecasts for both revenue and operating margins.
Samsara Inc. (NYSE:IOT) recently introduced Asset Tag, an industrial-grade Bluetooth tag designed to track small assets, helping customers save money by improving asset utilization, preventing loss, and boosting worker efficiency. In Q2, Asset Tag contributed $1 million in new annual contract value for the company.
As of Q2 2024, 26 hedge funds held positions in Samsara Inc. (NYSE:IOT), with Atreides Management being the largest shareholder, holding a stake valued at $47.66 million.
Baron Opportunity Fund stated the following regarding Samsara Inc. (NYSE:IOT) in its Q2 2024 investor letter:
“We initiated a position in Samsara Inc. (NYSE:IOT) during the quarter. Samsara provides a cloud software platform for commercial vehicle telematics, video-based driver safety, driver workflow automation, and industrial equipment monitoring. Its software collects and analyzes data from sensors and cameras installed in its customers’ commercial trucks, construction equipment, warehouses, and other assets, helping companies visualize and improve the state of their operations. More than 17,500 customers in the transportation, field services, construction, utilities, and other industries have adopted Samsara, and last year the company became one of the fastest software companies ever to reach $1 billion in annual recurring revenue (ARR). Samsara has been winning share from competitors in the $51 billion connected fleet software market due to its superior cloud native architecture, ability to address multiple use cases in a single platform, and its rapid product release cycle. As Samsara continues to expand its connected asset base, it is building an unmatched data asset that it is using to drive better outcomes for its customers. Capturing more than 9 trillion data points from over 44 billion hours of camera footage across millions of miles driven, Samsara uses AI to help companies optimize their vehicle routes, prevent accidents, improve asset utilization, reduce fuel expenses, and lower insurance premiums. In 2023, across its customer base, the company prevented 200,000 accidents and reduced carbon emissions by 2.3 billion pounds. We see a long runway for growth as Samsara expands in existing accounts and wins new logos. Samsara is less than 50% penetrated in its existing customers’ vehicle fleets and has a significant opportunity to cross-sell newer non-vehicle products (which already account for $125 million of ARR) into its base. The company has also increased its customer count by more than 20% year-over-year every quarter and identified hundreds of thousands of potential new accounts to win. As it has scaled, Samsara has delivered healthy operating leverage, and we think free cash flow margins can ultimately expand beyond 20% longer term.”
