Sumo Logic Counts On Acquisition And Product Upgrades

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According to a recent Research and Markets report, the global market for Big Data is estimated to grow at a CAGR of 19% from $70.5 billion in 2020 to reach $243.4 billion by 2027. Redwood City-based Sumo Logic (NASDAQ: SUMO) is helping organizations manage structured and unstructured data from application infrastructure and mobile sources to become among the most powerful machine data analytics services in the world.

Sumo Logic’s Financials

Recently, Sumo Logic announced its fourth quarter results. Revenues grew 22% to $54.2 million and loss was $0.07 per share.

For the fiscal year, Sumo Logic reported revenues of $202.6 million, growing 31%, and a loss per share of $0.67.

For the current quarter, Sumo Logic expects revenue between $53.2 million and $54.2 million and a loss per share of $0.12. It expects revenues of $231-$235 million with a loss per share of $0.79-$0.78 for the year. The market was looking for revenues of $53.9 million for the quarter with a loss of $0.12 per share and revenues of $233.86 million for the year with a loss of $0.48 per share.

Sumo Logic’s Offerings

Recently, Sumo Logic announced its acquisition of Italy-based DFlabs. Founded in 2004 by Dario Forte, DFLabs specializes in Security Automation and Orchestration Technology. The acquisition will help grow Sumo Logic’s cloud-native SIEM solution to assist in reducing and eliminating manual tasks that are both tedious and error-prone, while also empowering SOC teams to accelerate threat detection, analysis, incident response, and forensic investigations.

Sumo Logic plans to add DFLabs to its Continuous Intelligence Platform to provide customers of all sizes and maturities with comprehensive cloud-native security solutions that leverage modern applications, architectures, and multi-cloud infrastructures. Prior to the acquisition DElabs had raised $9 million in two rounds of funding from Evolution Equity Partners.

Earlier this year, Sumo Logic also announced that its Continuous Intelligence Platform achieved Federal Risk and Authorization Management Program Authorization at a Moderate impact level. The authorization will allow it to help public sector organizations get real-time insights into complex on-premises and cloud environments, and further strengthen their security and compliance, while optimizing performance.

Meanwhile, the company continued to announce product upgrades. Recent updates to the Sumo Logic Observability Suite including Service Maps and Service Dashboards will extend the Root Cause Explorer solution to include Kubernetes metrics and tracing, expansion of its Global Intelligence Service for Kubernetes, and also launch a new beta program for both AWS Lambda support and Browser Real User Monitoring. These additions will allow DevOps and site reliability engineers the ability to get a holistic view of all micro-services to identify and resolve issues faster.

Sumo Logic’s stock is trading at $19.45 with a market cap of $2 billion. It touched a high of $46.37 in February and a low of $16.50 in October last year. It went public in September last year when it raised $325.6 million at a valuation of $2.2 billion by selling stock at $22 apiece.

Prior to the listing, it had raised $340 million in six rounds from investors including Franklin Templeton Investments, Battery Ventures, Tiger Global Management, Stutter Hill Ventures, Accel, Sequoia Capital, DFJ Growth, IVP, Sapphire Ventures, and Greylock.

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