Internet of Things cloud platform provider Samsara Inc. reported higher-than-expect revenue in its second quarter due to increasing demand for its services.

For the quarter that ended July 30, Samsara reported a non-generally accepted accounting principles net loss of $20.2 million or four cents per share compared to a loss of $29.9 million or 12 cents per share in the second quarter of fiscal 2022. Revenue came in at $662.8 million, up 52% year-over-year.

Analysts had expected a non-GAAP loss of six cents per share on revenue of $143 million.

Annual recurring revenue was 52% year-over-year to $662.8 million, while GAAP gross profit was $109.3 million, up from $72.7 million in Q2 fiscal 2022. Net cash used in operating activities was negative $37.8 million and adjusted free cash flow negative $38.4 million.

Samsara continued to see strong demand from a diverse customer base, including critical infrastructure providers, food distribution, chemical companies, energy utilities, freight carriers and municipalities.

The company says that its Connected Operations Cloud is a deflationary lever that helps customers control costs by running more efficient operations. The ability to cut costs is more important than ever as customers face rising inflation and interest rates, disrupted supply chains, tight labor markets and geopolitical risk.

“This is why many of our existing customers are doubling down on their Samsara investment and new customers are choosing Samsara to provide a rapid return on investment,” Sanjit Biswas, co-founder and chief executive officer of Samsara, said in a statement. “Samsara’s Connected Operations Cloud helps our customers control costs by running smarter, safer and more efficient operations.”

Samsara also noted that it is becoming the system of record for physical operations. The Samsara cloud offers a command center that controls the day-to-day operations for many of the companies that power the global economy.

For its fiscal third quarter of 2023, Samsara predicts a non-GAAP loss per share of six cents to seven cents on revenue of $154 million to $156 million. Analysts had expected seven cents and $150.99 million.

For the full fiscal year 2023, loss per share is expected to be 21 to 23 cents on revenue of $610 million to $614 million. Analysts had expected 27 cents and $593.4 million.

Image: Samsara

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