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  "documentTitle": "Samsara Inc. (IOT)",
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  "presentationDate": "2023-09-21 00:00:00",
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      "text": "When we adjust Samsara's COGS to assume a three-year amortization period for device costs, we find that gross margins have been overstated by well over 600bps the past two fiscal years.",
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      "text": "After adding back stock-based compensation, the Company's adjusted EBITDA margins for fiscal 2023 were -49% rather than the -10% that were reported.",
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      "text": "When we adjust Samsara's COGS to assume a three-year amortization period for device costs, we find that gross margins have been overstated by well over 600bps the past two fiscal years.",
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      "text": "Moreover, after adjusting sales commission amortization to three years, we find that these two accounting distortions have resulted in Samsara's reported “adjusted” EBITDA margin being overstated by about 1,200-1,400bps over the past three years.",
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      "text": "Based on our analysis, this change inflated “software” revenue by about 33%.",
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      "text": "Numerous Samsara devices incorporate modules from Quectel, which exposes the Company to new risks. In early September, the FCC asked U.S. national security agencies to consider placing Chinese wireless module company Quectel on the Covered List of banned suppliers.",
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      "text": "A closer examination of Samsara's historical and prospective new market penetration yields concerns. Samsara's growth has been fueled by two narrow applications, bundled hardware pricing, and highly aggressive sales practices.",
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      "text": "gross margin: 600bps",
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      "text": "We Believe Samsara's Margins Have Been Massively Overstated",
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