Why Samsara Stock Is Skyrocketing Today

Key Points

• Internet-of-Things specialist Samsara rocketed past analysts' expectations during the second quarter.

• Not only were sales up 30%, but the company's margin profile continued to improve.

• With sales from recently released products and foreign countries rising, Samsara's growth story could just be getting started.

• 10 stocks we like better than Samsara ›

Leading Internet-of-Things (IoT) specialist Samsara (NYSE: IOT) is up 14% today as of 1 p.m. ET, according to data provided by S&P Global Market Intelligence.

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Powered by its Connected Operations Platform, Samsara soared past analysts' expectations for the second quarter, growing revenue by 30%.

The company's margins also continued to improve, with its adjusted free-cash-flow (FCF) margin registering 11% during the quarter. This improvement is a far cry from the negative 15% it saw two years ago.

Connecting the physical operations of businesses

Whereas CrowdStrike is a one-stop shop for cybersecurity-related matters, for example, Samara is the go-to provider for operational technology that can help any company working with tangible assets.

The company provides telematics, safety solutions, site visibility cameras, connected equipment tracking, and a suite of apps on a single platform for companies. Whether helping a trucking company, food distributor, heavy equipment operator, airline, or retailer, Samsara aims to bring safety, efficiency, and sustainability to any physical business.

Image source: Getty Images.

Some ways it assists customers are by:

• reducing drivers' speeding and phone usage incidents
• lowering auto liability claims
• helping identify and sell underutilized assets
• saving on fuel costs with more efficient routes
• addressing vehicle maintenance issues before they become a problem

Thanks to cost savings from items like these, market intelligence firm IDC believes Samsara generates a 700% return on investment for its customers, resulting in a mere monthslong payback period.

Samsara's platform processes over 20 trillion data points, 90 billion traveled miles, and 300 million workflows annually for its customers, solidifying its status as an IoT leader.

Generating 15% of its net new annual contract value (ACV) from non-U.S. geographies and 8% net new ACV from products released in the last year, Samsara's growth story looks robust.

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Josh Kohn-Lindquist has positions in CrowdStrike. The Motley Fool has positions in and recommends CrowdStrike. The Motley Fool recommends Samsara. The Motley Fool has a disclosure policy.