General
November 19, 2021
5 minutes read

Markets: IoT Startup Samsara Files For IPO

The latest tech startup to board the IPO train is Samsara, a VC-backed startup that makes internet-of-things (IoT)-based fleet monitoring…

The latest tech startup to board the IPO train is Samsara, a VC-backed startup that makes internet-of-things (IoT)-based fleet monitoring hardware and software for logistical operators. It has unveiled an S-1 filing with the US SEC, showing its intention to list on the New York Stock Exchange (NYSE).

Samsara has raised nearly $1bn from VCs including Andreessen Horowitz, Tiger Global, and General Catalyst, with a valuation of $5.4bn from its last funding round. The company’s co-founders sold a previous startup named Meraki to Cisco for $1.2bn.

As expected, Samsara’s S-1 filing gives a deep glimpse into the company’s business with information not publicly disclosed before. The company has been rather secretive over the years, making this long-awaited information. We’ve extracted some important information so you don’t have to, mostly the financial stuff.

Samsara brought in $303mn in revenue in the nine months ended October 2021, compared to $174mn in the same period a year before. As its revenue leaped up, net losses lessened over the same period from $174mn last year to $102mn this year. Clearly, it’s a good year for Samsara.

In its most recent fiscal year ended January 2021, Samsara brought in $250mn in revenue, doubling from $120mn in the preceding year. The net loss of the recent fiscal year was $210mn, slightly down from $225mn the year before.

Dwindling losses and rising revenues are signs of a strong business. The pandemic of 2020 kickstarted a boom for the logistics industry, and Samsara is a major beneficiary serving the industry with hardware and software for critical fleet monitoring.

Samsara reports having 25,000+ customers, 13,000 of which pay $5,000+ annually and about 700 paying $100,000+. That’s a lucrative recurring revenue spring, the type investors usually favor. The company’s business model is also well-positioned for further growth.

Samsara has filed to list on the New York Stock Exchange with the trading symbol “IOT”. The final terms of its IPO, including how much it wants to raise and at what valuation, hasn’t yet been determined.