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Cloud Monitoring Stocks Q3 Highlights: Sumo Logic (NASDAQ:SUMO)


Kayode Omotosho /
2022/01/13 6:51 am EST
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As we reflect back on the just completed Q3 cloud monitoring sector earnings season, we dig into the relative performance of Sumo Logic (NASDAQ:SUMO) and its peerds.

Software is eating the world, increasing organizations’ reliance on digital-only solutions. As more workloads and applications move to the cloud, the reliability of the underlying cloud infrastructure becomes ever more critical, and ever more complex. To solve the challenge, companies and their engineering teams have turned to a range of cloud monitoring tools that provide them with visibility to troubleshoot the issues in real time.

The 5 cloud monitoring stocks we track reported a strong Q3; on average, revenues beat analyst consensus estimates by 4.66%, while on average next quarter revenue guidance was 4.68% above consensus. The whole tech sector has been facing a sell-off since late last year, but cloud monitoring stocks held their ground better than others, with share price down 8.68% since earnings, on average.

Slowest Q3: Sumo Logic (NASDAQ:SUMO)

Founded in 2010 by Christian Beegden who went from driving a cab in Germany to landing an internship at Amazon, Sumo Logic (NASDAQ:SUMO) is software as a service data analytics platform that helps companies get insight into what is happening in their servers and applications.

Sumo Logic reported revenues of $62 million, up 19.5% year on year, beating analyst expectations by 1.9%. It was a decent quarter for the company, with a narrow beat of analyst estimates.

“Sumo Logic delivered another strong quarter of revenue growth for the fiscal third quarter. Results were again driven by continued adoption of our leading Continuous Intelligence platform, which helps our customers ensure application reliability, manage and optimize multi-cloud infrastructure, as well as secure and protect against modern security threats,” said Ramin Sayar, President and CEO of Sumo Logic.

Sumo Logic Total Revenue

Sumo Logic delivered the weakest performance against analyst estimates of the whole group. The stock is down 13.5% since the results and currently trades at $11.78.

Is now the time to buy Sumo Logic? Access our full analysis of the earnings results here, it's free.

Best Q3: Datadog (NASDAQ:DDOG)

Named after a database the founders had to painstakingly look after at their previous company, Datadog (NASDAQ:DDOG) is a software as a service platform that makes it easier to monitor cloud infrastructure and applications.

Datadog reported revenues of $270.4 million, up 74.8% year on year, beating analyst expectations by 9.14%. It was an impressive quarter for the company, with a very optimistic guidance for the next quarter and an exceptional revenue growth.

Datadog Total Revenue

Datadog achieved the strongest analyst estimates beat and fastest revenue growth among its peers. The company added 190 enterprise customers paying more than $100,000 annually to a total of 1,800. The stock is down 10.5% since the results and currently trades at $149.30.

Is now the time to buy Datadog? Access our full analysis of the earnings results here, it's free.

Dynatrace (NYSE:DT)

Founded in Austria in 2005, Dynatrace (NYSE:DT) provides companies with software that allows them to monitor the performance of their full technology stack, from software applications to the infrastructure they run on.

Dynatrace reported revenues of $226.3 million, up 34.2% year on year, beating analyst expectations by 2.58%. It was a decent quarter for the company, with a strong top line growth.

Dynatrace had the weakest full year guidance update in the group. The stock is down 29.7% since the results and currently trades at $54.62.

Read our full analysis of Dynatrace's results here.

PagerDuty (NYSE:PD)

Started by three former Amazon engineers, PagerDuty (NYSE:PD) is a software as a service platform that helps companies respond to IT incidents fast and make sure that any downtime is minimized.

PagerDuty reported revenues of $71.7 million, up 33.4% year on year, beating analyst expectations by 2.29%. It was a very strong quarter for the company, with accelerating customer growth.

The company added 386 customers to a total of 14,486. The stock is down 3.87% since the results and currently trades at $32.25.

Read our full, actionable report on PagerDuty here, it's free.

New Relic (NYSE:NEWR)

With the name being an anagram of its founder, Lew Cirne, New Relic (NYSE:NEWR) makes a monitoring software that collects, scores, and analyses performance data about a client's IT stack.

New Relic reported revenues of $195.6 million, up 17.8% year on year, beating analyst expectations by 7.4%. It was a strong quarter for the company, with accelerating growth in enterprise customers.

New Relic scored the highest full year guidance raise but had the slowest revenue growth among the peers. The company added 47 enterprise customers paying more than $100,000 annually to a total of 1,011. The stock is up 14.3% since the results and currently trades at $104.

Read our full, actionable report on New Relic here, it's free.

The author has no position in any of the stocks mentioned