Shares in Samsara Inc. fell nearly 10% in late trading today after the internet of things cloud platform provider reported fiscal 2025 third-quarter earnings and revenue beats but fell short of expectations on its revenue outlook for the fourth quarter.

For the quarter that ended on Nov. 2, Samsara reported adjusted earnings per share of seven cents, up from four cents per share in the same quarter of the previous year, on revenue of $322 million, up 36% year-over-year. Both figures were ahead of the four cents per share and revenue of $310.57 million expected by analysts.

Samsara’s strong figures were driven by customer growth. The company added over 1,000 core customers in the quarter and also saw its number of customers with annual recurring revenue of $100,000 or more grow to 2,303 as of the end of the quarter, up from 1,663 as of the same time last year. Samsara ended the quarter with $1.349 billion in annual recurring revenue, up 35% year-over-year.

Business highlights in the quarter included Samsara launching artificial intelligence-powered Drowsiness Detection in October. The feature users advanced AI models, trained on more than 38 billion minutes of video footage, to monitor indicators such as head nodding, prolonged eye closure, yawning and face-rubbing. Upon detecting signs of drowsiness, the service issues real-time in-cab audio alerts to drivers and notifies fleet managers via text or email, enabling immediate intervention to enhance road safety.

In September, Samsara announced an integration with Esri’s ArcGIS Velocity, a software-as-a-service IoT application for processing and analyzing real-time data. The collaboration allows public sector fleets to overlay Samsara’s telematics data — including vehicle location, utilization and maintenance — onto Esri’s mapping platform to provide real-time visibility and improve decision-making processes for government agencies.

Additionally, Samsara expanded its asset management solutions with the introduction of Asset Tag, a compact, ruggedized device that is designed to track nonpowered assets such as toolboxes, containers and equipment. Asset Tag uses Bluetooth to provide near real-time location data through the Samsara network to help businesses prevent loss, recover stolen assets and streamline inventory management.

“We achieved another strong quarter of durable and efficient growth at a greater scale,” co-founder and Chief Executive Sanjit Biswas said in the company’s earnings release. “We ended Q3 at $1.35 billion in ARR, growing 35% year-over-year, and achieved a quarterly record of 10% adjusted free cash flow margin.”

For its fiscal fourth quarter, Samara expects adjusted earnings per share of seven to eight cents on revenue of $334 million to $336 million. At the midpoint, the revenue outlook was short of the $335.8 million expected by analysts. While the miss wasn’t huge, the weak guidance was enough to spook investors.

For the full fiscal year, the company expects adjusted earnings per share of 22 to 23 cents on revenue of $1.237 billion to $1.239 billion.

Image: Samsara