News & Analysis

Samsara IPO: what you need to know

07 Sep 2021 | by: Kirsteen Mackay

Samsara IPO: what you need to know

Cloud-managed networking leader Samsara is planning an initial public offering (IPO). Last week, the company submitted a brief press release notifying the public of its confidential IPO filing with the SEC.

When will Samsara go public?

Samsara’s press release announcement stated the company submitted a confidential draft registration statement on Form S-1 proposing an IPO of its common stock.

As this is a confidential IPO, Samsara does not have to disclose any sensitive information to the public affording it flexibility in its process. Therefore, the number of shares to be offered and the price range have not yet been decided or declared. There is also no indication of when the IPO will occur as the SEC is still undertaking its review process.

The Samsara IPO is backed by AllianceBernstein and venture capital firm Andreessen Horowitz. It is reportedly looking at a $5.4bn valuation. Additional investors include General Catalyst, Tiger Global, and Dragoneer.

Per an internal memo to employees, Samsara has raised $400m. However, it is also facing redundancies.

Company CEO Sanjit Biswas held a company town hall addressing the fundraising along with 300 job cuts. The redundancies represent 18% of the workforce, particularly affecting employees outside the US in recruiting and event roles.

How Samsara makes money

Samsara focuses on internet-of-things technology (IoT), providing sensors and other IoT solutions to manage vehicle fleets and industrial operations.

The company effectively bridges the gap between the physical and digital worlds bringing global supply chains into the modern age. It powers over 2 million networks worldwide while modernizing and digitizing physical operations using the cloud.

Samsara IoT
Photographer: Joshua Sortino | Source: Unsplash

The company helps 20,000 customers in areas such as transportation and logistics, food production, energy, construction, and local and state governments.

In 2019, Samsara’s revenue reached $243m with 15k customers. In January 2021, it announced it had surpassed $300m in run-rate subscription revenue over five years while also enjoying over 80% annual growth in Q4 ending Jan 30.

Samsara’s client list includes Sherwin-Williams, PODS, City of Sacramento, City of Boston, Goodfellow Bros., MacAllister Machinery, Kelly Group, Clean Harbors, and Liberty Oilfield Services.

When was Samsara founded?

Founded in 2015, Samsara is led by the co-founders of Meraki, an IT company acquired by Cisco Systems (NASDAQ: CSCO). The company is headquartered in San Francisco with offices in San Jose, Atlanta, and London.

Samsara manufactures hardware, software, and cloud systems to ensure a wide array of businesses operating in the global supply chain run safely, efficiently, and sustainably.

Physical operations support and drive the entire global economy. Bringing it into the 21st century with a streamlined data-driven approach is vital to business security and sustainability.

Earlier this year, Sanjit Biswas, Samsara co-founder, and CEO said:

“Our customers are on the front lines of keeping the world’s economy and infrastructure running. Over the past year, we have seen customers accelerate their adoption of technologies that provide real-time visibility, remote coaching and workflows and technology integrations that are more critical than ever in the current environment.

AI site powered visibility

Preventing theft with site visibility, Samsara’s plug-and-play solutions include remotely operating security cameras at work sites. The company also provides safety detection sensors with remote operating capability. For instance, notifications can alert office staff elsewhere if forklifts, machinery, or people access an out-of-bounds area or trigger an accident. It can also ensure management can detect if site staff are not wearing their correct PPE.

Samsara’s innovations ensure enhanced visibility over sites via its cloud-connected video solution. This greatly improves safety standards and streamlines operations. Products also include video-based safety for drivers, vehicle telematics, and equipment monitoring.

Featured on The Forbes Cloud 100 list

Samsara recently earned the 19th spot on The Forbes Cloud 100 list. This is the third year running Samsara has featured on the list, and management deems it a great honor to be recognized by Forbes.

This is an interesting company operating in a crucial sector pivoting to the modern age., Digitonic Ltd (and our owners, directors, officers, managers, employees, affiliates, agents and assigns) are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above.

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

  • Kirsteen Mackay does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above article.
  • Kirsteen Mackay has not been paid to produce this piece by the company or companies mentioned above.

More News & Analysis

OYO IPO: what you need to know

Indian tech unicorn start-up OYO intends to issue new shares in animminent $1bn IPO. Is the Airbnb competitor a good investment opportunity?

Toast IPO: what you need to know

With a $30bn valuation, Toast made its co-founders instant billionairres at IPO. Is this a restaurant tech stock a good long-term growth investment?

Is Microsoft a good investment?

When it comes to tech stocks, few could ever hope to reach the level of Microsoft, but is it a good investment?