Sumo Logic Q2 Results Exceed Street Expectations

Sumo Logic Inc SUMO reported a second-quarter FY23 revenue increase of 26% year-over-year to $74.1 million, beating the consensus of $71.54 million.
Annual Recurring Revenue ("ARR") increased by 25% Y/Y to $286.2 million.
Adjusted EPS was $(0.10), beating the consensus of $(0.11).
The gross margin contracted to 65% from 66% in 2Q21. Adjusted gross margin was 70%, down by 200 bps.
Adjusted operating loss for the quarter was $12.69 million, compared to $12.42 million a year ago.
Net cash used in operating activities for the six months ended July 31, 2022, totaled $13.44 million, compared to $7.26 million a year ago. Free cash outflow was $14.43 million.
The company held cash and cash equivalents and marketable securities of $350.6 million as of July 31, 2022
3Q23 Outlook: Sumo Logic expects Total revenue of $73.5 million - $74.5 million, vs. a consensus of $73 million.
It expects a Non-GAAP operating margin of (24)% to (23)% and a Non-GAAP net loss per share of $0.15.
FY23 Outlook: The company expects Total revenue of $289.0 million - $293.0 million, vs. a consensus of $290.4 million.
It sees a Non-GAAP operating margin of (23)% to (22)% and Non-GAAP net loss per share of $0.56 to $0.54.
Price Action: SUMO shares are trading lower by 0.81% at $8.51 during the post-market session on Thursday.