Sumo Logic Announces First Quarter Fiscal 2022 Financial Results

REDWOOD CITY, Calif., June 4, 2021 — Sumo Logic (Nasdaq: SUMO), a leader in continuous intelligence, announced financial results for the first quarter of its fiscal 2022, ended April 30, 2021.

“Our year is off to a strong start driven by demand from our global enterprise and mid market customers for Sumo Logic’s Continuous Intelligence platform,” said Ramin Sayar, president and CEO of Sumo Logic. “We continued to invest to grow our platform capabilities in security and observability this quarter. Combined with our investments to increase our routes to market, we are well positioned to capture this expansive opportunity created by digital transformation and cloud migration.”

First Quarter Fiscal 2022 Financial Highlights

• Revenue was $54.2 million, an increase of 15% year-over-year
• Revenue, excluding our largest revenue customer, was $51.0 million, an increase of 18% year-over-year
• GAAP gross margin was 72%; non-GAAP gross margin was 75%
• GAAP operating loss was $26.5 million; GAAP operating margin was (49)%
• Non-GAAP operating loss was $10.8 million; non-GAAP operating margin was (20)%
• GAAP net loss was $26.9 million or $0.26 per share
• Non-GAAP net loss was $11.2 million or $0.11 per share
• Net cash used in operating activities was $2.7 million; free cash flow was $(3.0) million
• Cash and cash equivalents and marketable securities were $408.5 million as of April 30, 2021

Recent Highlights

• Announced the availability of a new multi-cloud and hybrid threat protection offering with Amazon Web Services (AWS), named Sumo Logic Cloud SIEM Powered by AWS. The solution, developed in collaboration with AWS, is built on the Sumo Logic Continuous Intelligence Platform. It incorporates security intelligence including compliance, security analytics, and Cloud SIEM technologies with key out of the box integrations with AWS security services, Azure, Google Cloud and on-premises services.
• Closed our acquisition of DF Labs S.p.A. (DFLabs), a leader in security orchestration, automation and response (SOAR) technology. The combination of Sumo Logic’s Cloud SIEM and DFLabs’ solution will provide customers with comprehensive cloud-native security intelligence solutions built for today’s digital businesses.
• Announced the signing of a definitive agreement to acquire Sensu, Inc. (Sensu), a leader in open source monitoring. The addition of Sensu will accelerate Sumo Logic’s observability strategy by providing customers with an affordable and scalable end-to-end solution for infrastructure and application monitoring. The transaction is subject to customary closing conditions and is anticipated to close in the second quarter of fiscal 2022.
• Announced Sumo Logic will host The Modern SOC Summit from June 8-9, 2021, a free virtual education event for security and IT professionals looking to understand how to modernize their security operations and the latest in cloud-native security.
• Announced Sumo Organizations, the first DevOps and security multi-tenant solution that enables visibility into operational and security intelligence across multiple customer accounts. This new multi-account management solution provides managed service providers and large enterprises with increased visibility and control across their managed operations, departments, and teams.

Financial Outlook

For the second quarter of fiscal 2022, Sumo Logic expects:

• Total revenue between $56.1 million and $57.1 million, representing 13% to 15% growth year over year
• Revenue, excluding our largest revenue customer, between $53.3 million and $54.3 million, representing 18% to 20% growth year over year
• Non-GAAP operating loss of $15.0 million to $14.5 million; non-GAAP operating margin of (27)% to (25)%
• Non-GAAP net loss per share of $0.14 on approximately 107.4 million weighted average shares outstanding

For the full fiscal year 2022, Sumo Logic expects:

• Total revenue between $233.0 million and $236.0 million, representing 15% to 16% growth year over year
• Revenue, excluding our largest revenue customer, between $221.7 million and $224.7 million, representing 18% to 20% growth year over year
• Non-GAAP operating loss of $59.6 million to $58.1 million; non-GAAP operating margin of (26)% to (25)%
• Non-GAAP net loss per share of $0.57 to $0.55 on approximately 107.2 million weighted average shares outstanding

These statements are forward-looking and actual results may differ materially. Please refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

Guidance for non-GAAP financial measures excludes stock-based compensation expense and related employer payroll taxes, amortization of acquired intangible assets, and acquisition-related expenses. We have not provided the most directly comparable GAAP measures because certain items are out of our control or cannot be reasonably predicted. Accordingly, a reconciliation for forward-looking non-GAAP operating loss and non-GAAP net loss per share is not available without unreasonable effort. Refer to Non-GAAP Financial Measures below.

Conference Call Details

The company will host a conference call and live webcast on Thursday, June 3, 2021, at 1:30 p.m. Pacific time (4:30 p.m. Eastern time). The news release with the financial results will be accessible on Sumo Logic’s investor relations website at investor.sumologic.com prior to the conference call. To access the conference call, dial (877) 407-0784 from the United States or (201) 689-8560 internationally and reference the company name and conference title. Following the completion of the call, a replay will be available for approximately two weeks. The replay can be accessed by dialing (844) 512-2921 from the United States or (412) 317-6671 internationally and using the recording passcode 13719650. A live webcast and replay of the conference call can also be accessed from the Sumo Logic Investor Relations website at investor.sumologic.com.

Supplemental Financial and Other Information

Supplemental financial and other information can be accessed through Sumo Logic’s investor relations website at investor.sumologic.com. Sumo Logic uses the investor relations section on its website as the means of complying with its disclosure obligations under Regulation FD. Accordingly, we recommend that investors should monitor Sumo Logic’s investor relations website in addition to following Sumo Logic’s press releases, SEC filings and social media.

About Sumo Logic

Sumo Logic, Inc. (Nasdaq: SUMO), is the pioneer in continuous intelligence, a new category of software, which enables organizations of all sizes to address the data challenges and opportunities presented by digital transformation, modern applications, and cloud computing. The Sumo Logic Continuous Intelligence Platform™ automates the collection, ingestion, and analysis of application, infrastructure, security, and IoT data to derive actionable insights within seconds. More than 2,100 customers around the world rely on Sumo Logic to build, run, and secure their modern applications and cloud infrastructures. Only Sumo Logic delivers its platform as a true, multi-tenant SaaS architecture, across multiple use-cases, enabling businesses to thrive in the Intelligence Economy. For more information, visit www.sumologic.com.

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Source: Sumo Logic