Cloud Stocks: Sumo Logic’s IPO Going Strong

According to an Allied Market Research report, the global big data and business analytics market size is estimated to grow at 11% CAGR to $420.98 billion by 2027. Conducting analytics on structured data is relatively simpler when compared with conducting analytics on unstructured data. Redwood City-based Sumo Logic (Nasdaq: SUMO) was set up in 2010 to provide organizations with the ability to harvest structured and unstructured data from application infrastructure and mobile sources to become one of the most powerful machine data analytics services in the world. The company went public late last year, and despite the market turmoil, appears to be doing well.

Sumo Logic’s Financials

Recently, Sumo Logic announced its third-quarter results. The first announcement since it listed. Revenues for the quarter grew 28% to $51.9 million and it ended the quarter with a loss of $0.06 per share.

For the current quarter, Sumo Logic expects revenue of $51.8-$52.3 million and a loss per share of $0.13-$0.12. It expects revenues between $200.3-$200.8 million with a loss per share between $0.79-$0.78 for the year. The market was looking for revenues of $52.14 million for the quarter with a loss of $0.12 per share and revenues of $199.78 million for the year with a loss of $0.79 per share.

Sumo Logic’s Offerings

I had met with Sumo Logic’s former CEO Vance Loiselle a few years ago. He had talked in detail about the founding principles of the organization. Sumo Logic uses data from multiple devices to offer a purpose-built, cloud-native service that analyzes over 200 petabytes of data and 20 million searches and delivers tens of millions of insights. During the quarter, it continued to add several new services to expand its prowess in the market.

Sumo Logic has built strong ties with AWS. During the quarter, it announced the general availability of both AWS Observability Solution and the Sumo Logic Software Development Optimization solution (SDO). AWS Observability Solution gathers, consolidates, and analyzes telemetry data from popular AWS services, while SDO integrates and analyzes data from multiple DevOps tools, providing developers present-time insights into software development pipelines. It also announced its new integration with AWS Network Firewall, a managed service that simplifies the act of deploying essential network protections for all Amazon VPCs on AWS.

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Disclosure: All investors should make their own assessments based on their own research, informed interpretations and risk appetite. This article expresses my own opinions based on my own ...

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