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Q1 Rundown: Sumo Logic (NASDAQ:SUMO) Vs Other Cloud Monitoring Stocks


Kayode Omotosho /
2022/07/11 3:45 am EDT
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The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s have a look at how the cloud monitoring stocks have fared in Q1, starting with Sumo Logic (NASDAQ:SUMO).

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 mixed Q1; on average, revenues beat analyst consensus estimates by 3.26%, while on average next quarter revenue guidance was 1.25% above consensus. Technology stocks have been hit hard on fears of higher interest rates, but cloud monitoring stocks held their ground better than others, with the share price up 9.19% since earnings, on average.

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 $67.8 million, up 25.1% year on year, beating analyst expectations by 2.67%. It was a mixed quarter for the company, with a decent beat of analyst estimates but a decline in gross margin.

“We started our fiscal year strong as we delivered 25% revenue growth in the first quarter. Escalating security threats are driving a healthy demand environment, and we remain well positioned with a unified platform that delivers both observability and security,” said Ramin Sayar, President and CEO of Sumo Logic.

Sumo Logic Total Revenue

The stock is up 7.92% since the results and currently trades at $8.31.

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

Best Q1: 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 $363 million, up 82.8% year on year, beating analyst expectations by 7.93%. It was a very strong quarter for the company, with an exceptional revenue growth and a full year guidance beating analysts' expectations.

Datadog Total Revenue

Datadog delivered the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise among its peers. The company added 240 enterprise customers paying more than $100,000 annually to a total of 2,250. The stock is down 9.22% since the results and currently trades at $108.10.

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 $252.5 million, up 28.5% year on year, beating analyst expectations by 2.44%. Despite the solid topline results, it was a weaker quarter for the company, with full-year guidance missing analysts' expectations and underwhelming guidance for the next quarter.

Dynatrace had the weakest full year guidance update in the group. The stock is up 28% since the results and currently trades at $42.01.

Read our full analysis of Dynatrace's results here.

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 $205.7 million, up 19.1% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a significant improvement in gross margin but decelerating growth in large customers.

New Relic had the weakest performance against analyst estimates and slowest revenue growth among the peers. The company added 35 enterprise customers paying more than $100,000 annually to a total of 1,099. The stock is up 17.8% since the results and currently trades at $56.33.

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

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 $85.3 million, up 34.2% year on year, beating analyst expectations by 2.95%. It was a mixed quarter for the company, with decelerating customer growth.

The company added 175 customers to a total of 15,040. The stock is up 1.28% since the results and currently trades at $27.82.

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

The author has no position in any of the stocks mentioned