The market liked Samsara’s update, but not enough to fully price in how much the story has shifted. The stock closed at US$40.20, up 3.7% on the day, after coming into the print with only modest gains over the past month. What investors reacted to most was simple: Samsara pushed annual recurring revenue past US$2.1b and kept revenue growing at 30% while staying profitable on a generally accepted accounting principles basis. The key debate now is whether a richly valued stock is finally getting the earnings power that price has been asking for.

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