Samsara Inc. (NYSE:IOT) stock fell in premarket trading Friday despite the company reporting first-quarter results that topped Wall Street estimates and raising its full-year outlook.

Strong Quarter Driven by Revenue Growth

The connected operations platform company reported adjusted earnings of 17 cents per share, beating analyst estimates of 13 cents. Revenue climbed 31% year over year to $478.8 million, exceeding the consensus estimate of $455.2 million. On a constant-currency basis, revenue increased 29%.

Adjusted operating margin expanded to 19% from 14% a year earlier, driven by improved efficiency across sales and marketing, research and development, and general and administrative expenses.

CEO and Co-founder Sanjit Biswas said Samsara delivered a strong first quarter, with annual recurring revenue nearing $2 billion and the company remaining profitable on a GAAP earnings-per-share basis for a third straight quarter.

He added that growing labor constraints across customers’ operations are creating demand for the company’s AI-powered tools, which ...