Samsara (IOT) provides software that helps organizations manage vehicles and equipment, using a land-and-expand model that sells its platform once, collects recurring revenue, and upsells additional modules. Revenue rose from about $250 million in 2021 to more than $1.84 billion over the past 12 months, free cash flow reached $255 million, and net income was about $91 million in the past year. About 96% of customers with more than $100,000 in annual recurring revenue (ARR) use at least two products. The P/E ratio of about 290 is very high because earnings are still modest, while the P/S ratio of 13.5 is below its lifetime average of 16.5. The article cites risks including thin margins and a short history of consistent profitability, and says the stock suits growth-oriented investors with a bullish view on AI.
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