Sumo Logic Earnings: What To Look For From SUMO

Radek Strnad /
2022/05/25 7:40 am EDT
Add to Watchlist

Cloud infrastructure analytics maker Sumo Logic (SUMO) will be announcing earnings results tomorrow afternoon. Here's what you need to know.

Last quarter Sumo Logic reported revenues of $67 million, up 23.8% year on year, beating analyst revenue expectations by 4.23%. It was a mixed quarter for the company, with a very strong guidance for the next year but an underwhelming revenue guidance for the next quarter.

Is Sumo Logic buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Sumo Logic's revenue to grow 21.8% year on year to $66.1 million, improving on the 14.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.17 per share.

Sumo Logic Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 3.34%.

Looking at Sumo Logic's peers in the cloud monitoring segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Dynatrace delivered top-line growth of 28.5% year on year, beating analyst estimates by 2.44% and Datadog reported revenues up 82.8% year on year, exceeding estimates by 7.46%. Dynatrace traded up 6.29% on the results, and Datadog was down 11.4%. Read our full analysis of Dynatrace's results here and Datadog's results here.

The whole tech sector has been facing a sell-off since late last year and software stocks have not been spared, with share price down on average 20.2% over the last month. Sumo Logic is down 24.6% during the same time, and is heading into the earnings with analyst price target of $14.2, compared to share price of $7.26.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.