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  "documentTitle": "Samsara Inc. (IOT)",
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  "presentationDate": "2023-09-21 00:00:00",
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  "notes": "The slide uses FOIA requests to expose that hardware is a significant cost component, contradicting a pure SaaS valuation narrative.",
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      "text": "In addition, the cost of cellular connectivity required to operate the Samsara hardware represents yet another solution cost item that most other SaaS companies would not have that leads to structurally lower gross margins.",
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      "text": "Why is this important? The market has historically valued software companies with a material hardware business at lower multiples because their revenue ramp is overstated and their gross margin profile is structurally inferior.",
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      "text": "We obtained 19 Samsara quotes and/or contracts through FOIA requests and municipal websites. Using either stated or estimated pricing for the hardware provided, we estimate that hardware accounts for about 25% of initial total contract values.",
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      "text": "Source: Spruce Point Research",
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