Sumo Logic (SUMO) Reports Q3: Everything You Need To Know Ahead Of Earnings

Radek Strnad /
2022/12/05 4:17 am EST

Cloud infrastructure analytics maker Sumo Logic (SUMO) will be announcing earnings results today afternoon. Here's what to expect.

Last quarter Sumo Logic reported revenues of $74.1 million, up 25.9% year on year, beating analyst revenue expectations by 3.57%. It was a strong quarter for the company, with a decent beat of topline estimates and guidance for the next quarter above analysts' expectations.

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 19.6% year on year to $74.1 million, in line with the 19.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.15 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 3.28%.

Looking at Sumo Logic's peers in the cloud monitoring segment, some of them have already reported Q3 earnings results, giving us a hint what we can expect. Dynatrace delivered top-line growth of 23.4% year on year, beating analyst estimates by 2.22% and Datadog reported revenues up 61.3% year on year, exceeding estimates by 5.37%. Dynatrace traded up 1.93% on the results, Datadog was up 4.87%. Read our full analysis of Dynatrace's results here and Datadog's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 14.1% over the last month. Sumo Logic is up 16.6% during the same time, and is heading into the earnings with analyst price target of $11.10, compared to share price of $7.86.

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.