According to a new SEC filing that dropped this week, Samsara expects to price its IPO between $20 and $23 per share, likely valuing the San Francisco-based company at a multiple of its final private price set in 2020.
Samsara’s tech is pretty straightforward: the company connects sensors that companies with vehicle fleets and industrial operations use to the cloud. This allows the data produced and compiled from those sensors — camera footage, motion detection, GPS location, and energy usage. For example, to be aggregated and used to improve onsite safety, slash insurance costs, and cut back on manual oversight.
Samsara plans to offer 35 million shares, priced at $20 to $23 each, as soon as Wednesday. The high end of that would more than double the company’s valuation to $11.5 billion, just as it’s shoring up its fiscal bonafide:
While Samsara is not profitable, losses fell to $102.3 million in the nine months of 2021 leading to October, compared to $174 million in losses during the same period last year. Revenue also soared 74% to $302.6 million.
The IoT market Samsara operates in was worth $761.4 billion in 2020 and is forecast to reach $1.39 trillion by 2026, according to Mordor Intelligence.
Samsara’s revenue more than doubled from $119.9 million in fiscal 2020 to $249.9 million in fiscal 2021.
The company generated the bulk of its revenue in each of the past two fiscal years — approximately 98% — from subscriptions to its Connected Operations Cloud.
However, Samsara has yet to turn a profit.
- Samsara incurred net losses of $225 million in fiscal 2020 and $210 million in fiscal 2021.
- The company expects to lose more money in the future as it spends on tech and product development. Hiring more salespeople and other employees including in its customer support team, and expanding marketing efforts.
- As of October 30, 2021, Samsara had $267.5 million in cash and cash equivalents
The company provides sensors and cameras that generate data reflecting various operational parameters of physical assets owned by businesses, such as delivery vehicles, construction truck fleets, or physical locations. Samsara ingests the data showing truck fuel use or video of speeding delivery drivers into its Connected Operations Cloud. Then provides analytics services, alerts, and reports to help customers use the information. Samsara’s products can be integrated with other hardware and software applications such as systems used by engineers or data scientists.
Restaurant supply company Sysco uses Samsara’s video-based technology to monitor for driver distraction, capture road video, label it and store it in the cloud and even score employee drivers based on safety metrics. Construction industry clients including crane and hauling company Bragg Companies use Samsara’s GPS-based vehicle telematics technology to track. When trucks show up to a construction site or monitor engine diagnostics to reduce idling time and cut down on fuel costs and emissions. The company also helps companies gauge truck temperatures to ensure food stays chilled and monitors equipment such as generators to improve operational efficiency.