Revisiting the Samsara Stock Short Report

In our recent article on BILL (BILL), which offers a cloud-based platform to automate various financial processes for small and medium-sized businesses (SMBs), we spent a bit of time unpacking a key metric of software-as-a–service companies (SaaS) – net revenue retention (NRR) rate. (Forgive the record-breaking number of acronyms in that sentence.) The ability of a SaaS firm to not only retain existing customers but squeeze more money out of them by cross-selling and upselling services and solutions is an important differentiator. We concluded that the precipitous drop in BILL’s NRR rate, while not insignificant, was less concerning given its hybrid SaaS business model, which relies more heavily on transaction fees than subscriptions.

However, we’re not willing to let so-called pure-play SaaS companies off the hook so easily. Many are downplaying or ditching the NRR metric entirely as ye olde macroeconomic headwinds continue to blow. One such company is Samsara (IOT), which harnesses Internet of Things (IoT) data to provide actionable insights for its customers through its Connected Operations Cloud. The company recently released its Q3-2025 results, and for Fiscal 2025 they expect 32% revenue growth. Since quarterly revenue growth shows variability, we focus on annual growth as seen in the below charts.