Jim Cramer - Mad MoneySamsaraIOTDON'T BUYJun 03, 2024

IOT is quite expensive at 92X earnings, and about 10X sales. It is debt free with $700M cash. It has not really enjoyed the tech party this year, the stock is flat. Still, the recent quarter was solid. Samsara topped consensus, posting 29% revenue growth in 3Q on large-customer momentum and expansion across sectors. Management raised fiscal 2026 sales-growth guidance to 28%. Total annual recurring revenue reached $1.745 billion, up 29% from a year ago, underscoring traction with larger enterprises. Customers with over $100,000 in ARR remain a key driver, up 31% year over year to 2,990. Those with $1 million-plus ARR contributed more than 20% of the total. Recent wins across energy, government, media, infrastructure, transportation and distribution highlight inroads into complex operational industries. The company delivered its first profitable GAAP quarter, with $7.8 million in net income and a 19% non-GAAP operating margin supported by operating efficiency. We think it is a solid company and will be a good long term holding. It just needs a while to grow into its (very) premium valuation. 
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They delivered a great company and is run by a fine CEO.

Software infrastructure connecting businesses to the cloud and the internet of things. Is -9% this year on worries that this economy will make enterprise customers less likely to buy their products.