Why Sumo Logic Shares Are Soaring Higher Today

Sumo Logic Inc SUMO shares are trading higher by 15.53% to $8.33 Tuesday morning after the company reported better-than-expected third-quarter results and issued strong guidance.

What Happened?

Sumo Logic reported quarterly losses of 4 cents per share which beat the analyst consensus estimate of a loss of 15 cents. The company also reported quarterly sales of $79.00 million which beat the analyst consensus estimate of $74.14 million by 7%. This is a 27% increase over sales of $62.02 million in the same period last year.

Sumo Logic sees Q4 adj. EPS between $(0.09)-$(0.08), versus the analyst consensus estimate of $(0.17). Sumo Logic also sees sales in the range of $77M-$78M, versus the analyst consensus estimate of $75.39M.

The company sees FY23 Adj. EPS between $(0.36)-$(0.35), versus the analyst consensus estimate of $(0.55), sales of $298M-$299M versus the $291.24M estimate.

"We delivered revenue growth of 27% year-over-year in the third quarter while also driving better operating efficiencies, and will continue to emphasize efficient growth as we drive towards future cash flow break even and profitability," said Ramin Sayar, President and CEO of Sumo Logic.

"Our unified cloud-native platform for reliability and security continues to resonate with our customers and industry analysts as more customers are seeking to provide best in class digital experiences to their end users."

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Sumo Logic Inc develops software, which enables organizations of all sizes to address the challenges and opportunities presented by digital transformation, modern applications, and cloud computing.

According to data from Benzinga Pro, SUMO has a 52-week high of $16.44 and a 52-week low of $6.42.