Data analytics company Sumo Logic today announced the pricing of its initial public offering of 14.8 million shares of its common stock at $22 per share, which is higher than the anticipated range of $17 to $21 per share. Its debut marks the first cybersecurity company IPO this year.
Sumo Logic was founded in 2010 and has since raised more than $340 million in public funding, Crunchbase reports. Its cloud-native Continuous Intelligence Platform automates the collection and analysis of application, infrastructure, and security data. Security analysts, developers, and IT teams can use it to analyze log and event data, and monitor and troubleshoot applications, systems, and services. The tool scans 873 petabytes of data daily on average, Sumo Logic says.
The company has 2,130 customers as of July 31, 2020, as indicated in its SEC filing. Among them are major companies including Alaska Airlines, JetBlue, Land O'Lakes, Major League Baseball, Netflix, Salesforce, and Twilio. It has seen substantial financial growth: In fiscal years 2018, 2019, and 2020, its revenue was $67.8 million, $103.6 million, and $155.1 million, respectively.
That said, its losses have also increased. Sumo Logic reports net losses of $32.4 million, $47.8 million, and $92.1 million for the fiscal years 2018, 2019, and 2020, respectively.
Estimates indicate gross proceeds from today's IPO are expected to be $325.6 million, before deducting underwriting discounts, commissions, and other offering expenses. The offering is expected to close on Sept. 21, 2020, and is subject to customary closing conditions.
Sumo Logic plans to use these funds to further develop and grow its platform for machine data and analytics, says co-founder and CTO Christian Beedgen. He co-founded the company coming out of ArcSight, where ..
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