What Happened:

Shares of internet of Things company Samsara (NYSE:IOT) jumped 17.2% in the morning session after the company reported a "beat and raise" quarter. Samsara beat analysts' revenue, adjusted operating income, and EPS expectations this quarter. Notably, the top line grew by 37% year on year, benefiting from expansion from existing customers and new business wins. The company's investment in new products is also paying off, with Asset Tags (like a tracking device) driving approximately $1 million in net new ACV (annual contract value) in the first quarter of sales. Moving on, it raised its full-year guidance for revenue, adjusted operating income, and EPS. Overall, this was a splendid quarter.

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What is the market telling us:

Samsara’s shares are very volatile and over the last year have had 24 moves greater than 5%. But moves this big are very rare even for Samsara and that is indicating to us that this news had a significant impact on the market’s perception of the business.

Samsara is up 38% since the beginning of the year, and at $43.31 per share, has set a new 52-week high. Investors who bought $1,000 worth of Samsara’s shares at the IPO in December 2021 would now be looking at an investment worth $1,753.

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