Samsara IPO: Samsara IPO Valuation, Date, Price, Review & Details

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Samara IPO

About Samsara

  • Samsara Inc offers a cloud-based platform which allows businesses to use Internet-of-Things connected devices that can range from video cameras to data-collecting equipment to help run operations, thus increasing efficiency.
  • Samsara’s technology collects data including video footage, people and motion detection, GPS location, and energy consumption. Companies can use this information to improve safety, lower insurance costs and reduce the need for manual oversight and judgment.
  • The City of Boston uses Samasara’s technology to manage its fleet of electric vehicles and snowplows.
  • Losses narrowed to $102.3 million for the nine months ended Oct. 30 compared with $174 million in losses for the same time period in 2020. Revenue rose 74%, to $302.6 million for the same period. Slide 16_9 - 25-1.webp

Huge demand

  • Unlike retail, advertising, media, and information technology, which have already undergone digital transformation, industries with physical operations are still in the early stages of digital adoption. These industries are Samsara’s primary target areas.

  • The company estimates a total addressable market of about $54.6 billion by the end of 2021, and $96.9 billion by the end of 2024.

  • It has over 13,000 core customers, which it defines as entities with annual recurring revenues of greater than $5,000, including small businesses, state and local governments, and large, global enterprises. Slide 16_9 - 25.webp

From Samsara's management’s desk

“While connected devices are now everywhere in our personal lives, it may surprise you to learn how much pen-and-paper is still being used in the industries that keep our planet running,” said co-founder John Bicket and Sanjit Biswas, co-founder and chief executive, in a founders’ letter in the filing.

“The possibilities are practically endless: we estimate that the industries we serve account for over a third of the global economy, and it’s easy to imagine a future when every asset has a chip in it and is connected to the cloud,” they said.

Samsara Valuation

The IOT-based company is expected to command a valuation of around $11.5 billion at the higher end of the price band of $23. The company’s finances have shown an improvement in recent times. Revenue for the nine months ending October 30, 2021, was $302 million, up 73% compared to the same time period in 2020.  The company was also able to successfully reduce its net losses in the nine months ending October 2021 to $102 million, down from $210 million in 2020.

Samsara IPO would be a play on the IOT-based theme. However, good businesses are getting priced at very expensive valuations in this IPO season, and Samsara is no exception. Samsara IPO is priced at a EV/revenue ratio of nearly 30 times. Listed peer which is also growing rapidly, has an EV/revenue closer to 20. Hence, investors with a higher risk appetite who wish to take exposure to an exciting IOT play could consider investing in the issue.